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NINETY-SIXTH DAY

MORNING SESSION

House Chamber, Olympia, Friday, April 18, 1997

             The House was called to order at 9:00 a.m. by the Speaker (Representative Pennington presiding). The Clerk called the roll and a quorum was present.

             The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Micah McCabe and Georgia Kavanaugh. Prayer was offered by Reverend Reggie Buddle, Western Reform Seminary, Tacoma.

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

MESSAGES FROM THE SENATE

April 17, 1997

Mr. Speaker:

             The Senate has passed:

HOUSE BILL NO. 1102,

HOUSE BILL NO. 1202,

HOUSE BILL NO. 1349,

HOUSE BILL NO. 1588,

ENGROSSED HOUSE BILL NO. 1832,

SUBSTITUTE HOUSE BILL NO. 2149,

HOUSE JOINT MEMORIAL NO. 4005,

HOUSE JOINT RESOLUTION NO. 4209,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

April 17, 1997

Mr. Speaker:

             The President has signed:

SENATE BILL NO. 5353,

SENATE BILL NO. 5688,

SUBSTITUTE SENATE BILL NO. 5721,

SUBSTITUTE SENATE BILL NO. 5868,

and the same are herewith transmitted.

Mike O'Connell, Secretary

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

THIRD READING

             SUBSTITUTE SENATE BILL NO. 5526, by Senate Committee on Agriculture & Environment (originally sponsored by Senators McDonald, Sellar and Anderson)

Allowing for the diversion of certain river or stream waters without a permit.

             Representative Chandler moved that the rules be suspended, and that Substitute Senate Bill No. 5526 be returned to second reading for the purpose of an amendment. (For previous action, see Journal, 92nd Day, April 14, 1997.)

             Representative Linville spoke against the adoption of the motion.

             Representative Chandler spoke in favor of the adoption of the motion.

             Division was demanded. The Speaker (Representative Pennington presiding) divided the House. The results of the division was 50-YEAS; 42-NAYS. The motion needed two thirds vote and the motion was not adopted.

             Representatives Chandler, Zellinsky, Mastin, Carrell and Sump spoke in favor of passage of the bill.

             Representatives Dunshee, Anderson, Cooper, Doumit and Costa spoke against passage of the bill.

MOTION

             On motion by Representative Cairnes, Representatives DeBolt and Van Luven were excused.

             The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 5526 as amended by the House.

ROLL CALL

             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5526, as amended by the House and the bill failed to passed the House by the following vote: Yeas - 48, Nays - 49, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Carlson, Carrell, Chandler, Clements, Crouse, Delvin, Dunn, Dyer, Hankins, Honeyford, Huff, Johnson, Lambert, Lisk, Mastin, McDonald, McMorris, Mielke, Mulliken, Parlette, Pennington, Reams, Robertson, Schmidt, D., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 48.

             Voting nay: Representatives Anderson, Appelwick, Blalock, Butler, Cairnes, Chopp, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Grant, Hatfield, Hickel, Kastama, Keiser, Kenney, Kessler, Koster, Lantz, Linville, Mason, Mitchell, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Radcliff, Regala, Romero, Schmidt, K., Scott, Sheldon, Sommers, H., Sullivan, Tokuda, Veloria, Wolfe and Wood - 49.

             Excused: Representative DeBolt - 1.

             Substitute Senate Bill No. 5526, as amended by the House, having failed to received the constitutional majority, was declared failed.

             There being no objection, the House reverted to the sixth order of business.

SECOND READING

             ENGROSSED SUBSTITUTE SENATE BILL NO. 5574, by Senate Committee on Government Operations (originally sponsored by Senator Horn)

Instituting property tax reform.

             The bill was read the second time.

             Representative Schoesler moved the adoption of the following amendment by Representative Schoesler: (626)

             Beginning on page 3, line 9, strike everything through "parcels." on page 4, line 5, and insert:

             "(2) The treasurer shall notify each taxpayer in the county, at the expense of the county, of the amount of the real and personal property, and the current and delinquent amount of tax due on the same; and the treasurer shall have printed on the notice the name of each tax and the levy made on the same.

             (3) As soon as practical, but not later than the first tax year after a major change in data systems or software used by the treasurer, the notice shall at a minimum contain the following information and this information must be separately stated on the notice:

             (a) The name and address of the taxpayer;

             (b) The name, address, and telephone number of the county issuing the notice;

             (c) The parcel number as noted in the county records;

             (d) The property address if one exists, or the abbreviated legal description;

             (e) The year for which the taxes are due;

             (f) The assessed valuation of the parcel's land value and improvement value, and the assessment year, determined by the county assessor's office;

             (g) Current billing information containing each type of taxing jurisdiction levying a tax on the identified parcel, and the total amount due for each type of taxing jurisdiction:

             (i) As a result of regular property taxes, expressed as a dollar amount; and

             (ii) As a result of the aggregate of all voter-approved levies, including special levies and assessments, expressed as a dollar amount;

             (h) The total taxes due and payable from the taxpayer, including any delinquent taxes when included and any interest or penalties due as of a specific future date. The treasurer shall include a phone number for current interest and penalty calculations; and

             (i) A notice of the payment due dates and possible delinquency penalties and interest.

             (4) In any county where the county treasurer includes multiple parcels of land on a combined tax statement to a single owner, the county treasurer is not required to comply with subsection (3)(d) and (g) of this section. A taxpayer may request a separate tax statement on any or all parcels.

             (5)"

             Renumber subsections consecutively and correct any internal references accordingly.

             Representatives Schoesler, Dunshee and B. Thomas spoke in favor of the adoption of the amendment. The amendment was adopted.

             With the consent of the House, amendment number 574 to Engrossed Substitute Senate Bill No. 5574 was withdrawn.

             Representative H. Sommers moved the adoption of the following amendment by Representative H. Sommers: (566)

             On page 8, after line 2, insert the following:

             "NEW SECTION. Sec. 1. If specific funding for purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1997, in the omnibus appropriations act, this act is null and void."

             Representatives H. Sommers spoke in favor of the adoption of the amendment.

             Representative B. Thomas spoke against the adoption of the amendment.

             Division was demanded. The Speaker (Representative Pennington presiding) divided the House. The results of the division was 46-YEAS; 51-NAYS. The amendment was not adopted.

             Representative Dunshee moved the adoption of the following amendment by Representative Dunshee: (542)

             On page 6, after line 2, insert the following:

"PART II

PROPERTY TAX CREDIT

             NEW SECTION. Sec. 201. A new section is added to chapter 84.52 RCW to read as follows:

             (1) There is allowed a credit against the state regular real property tax equal to the tax imposed by the state on twenty percent of the state-wide average assessed value of owner-occupied single-family residential property, multiplied by the combined indicated ratio fixed by the state department of revenue for each county. The amount of the credit shall increase annually at a rate not to exceed the average rate of growth over the immediately preceding five years of owner-occupied single-family residential property. The average rate of growth shall be determined by the department. The credit in any tax year shall not exceed the amount of state property tax imposed on the property and no credit may result in increased property taxes on other taxpayers.

             (2) The credit in this section is in addition to any other property tax relief that may be provided by law.

             (3) The following conditions apply to the credit under this section:

             (a) The residence must be occupied by the person claiming the credit as a principal place of residence as of January 1st of the year in which taxes are due and the residence may not be primarily used for commercial purposes. A person who sells, transfers, or is displaced from the person's residence may transfer the person's credit status to a replacement residence, but a claimant may not receive a credit on more than one residence in any year. Confinement of the person to a hospital or nursing home does not disqualify the claim of credit if:

             (i) The residence is temporarily unoccupied;

             (ii) The residence is occupied by either or both a spouse or a person financially dependent on the claimant for support; or

             (iii) The residence is rented for the purpose of paying nursing home or hospital costs.

             (b) The person claiming the credit must have owned, at the time of filing, in fee, as a life estate, or by contract purchase, the residence on which the property taxes have been imposed or if the person claiming the credit lives in a cooperative housing association, corporation, or partnership, the person must own a share therein representing the unit or portion of the structure in which the person resides. For purposes of this subsection, a residence owned by a marital community or owned by cotenants is deemed to be owned by each spouse or cotenant, and any lease for life is deemed a life estate.

             (4) RCW 84.36.383, 84.36.385, 84.36.387, and 84.36.389 apply to this section.

             Sec. 202. RCW 84.52.080 and 1989 c 378 s 16 are each amended to read as follows:

             (1) The county assessor shall extend the taxes upon the tax rolls in the form herein prescribed. The rate percent necessary to raise the amounts of taxes levied for state and county purposes, and for purposes of taxing districts coextensive with the county, shall be computed upon the assessed value of the property of the county; the rate percent necessary to raise the amount of taxes levied for any taxing district within the county shall be computed upon the assessed value of the property of the district; all taxes assessed against any property shall be added together and extended on the rolls in a column headed consolidated or total tax. In extending any tax, whenever it amounts to a fractional part of a cent greater than five mills it shall be made one cent, and whenever it amounts to five mills or less than five mills it shall be dropped. The amount of all taxes shall be entered in the proper columns, as shown by entering the rate percent necessary to raise the consolidated or total tax and the total tax assessed against the property.

             (2) After entering the amounts under subsection (1) of this section, the county assessor shall compute the amount of credit authorized under section 201 of this act for each parcel of property. The credit allowed for any property shall be extended on the rolls in a column headed tax credit. The county treasurer shall subtract the amount of the credit from the total tax and enter this amount in a column headed tax payable.

             (3) For the purpose of computing the rate necessary to raise the amount of any excess levy in a taxing district which has classified or designated forest land under chapter 84.33 RCW, other than the state, the county assessor shall add the district's timber assessed value, as defined in RCW 84.33.035, to the assessed value of the property: PROVIDED, That for school districts maintenance and operations levies only one-half of the district's timber assessed value or eighty percent of the timber roll of such district in calendar year 1983 as determined under chapter 84.33 RCW, whichever is greater, shall be added.

             (((3))) (4) Upon the completion of such tax extension, it shall be the duty of the county assessor to make in each assessment book, tax roll or list a certificate in the following form:

             I, . . . . . ., assessor of . . . . . . county, state of Washington, do hereby certify that the foregoing is a correct list of taxes levied on the real and personal property in the county of . . . . . . for the year ((one thousand nine hundred and)) . . . . . .

             Witness my hand this . . . . day of . . . . . ., ((19)). . . .

                                                                              . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ., County Assessor

             (((4))) (5) The county assessor shall deliver said tax rolls to the county treasurer, on or before the fifteenth day of January, taking receipt therefor, and at the same time the county assessor shall provide the county auditor with an abstract of the tax rolls showing the total amount of taxes collectible in each of the taxing districts.

             Sec. 203. RCW 84.56.050 and 1991 c 245 s 17 are each amended to read as follows:

             (1) On receiving the tax rolls the treasurer shall post all real and personal property taxes from the rolls to the treasurer's tax roll, and shall carry forward to the current tax rolls a memorandum of all delinquent taxes on each and every description of property, and enter the same on the property upon which the taxes are delinquent showing the amounts for each year. The treasurer shall notify each taxpayer in the county, at the expense of the county, of the amount of the real and personal property((,)) and the current and delinquent amount of tax due on the same((; and)). The treasurer shall have printed on the notice the name of each tax ((and)), the levy made on the same, the amount of any credit under section 201 of this act, and the tax payable. The state tax credit authorized in section 201 of this act shall be credited against any state tax payable on the property. The county treasurer shall be the sole collector of all delinquent taxes and all other taxes due and collectible on the tax rolls of the county((: PROVIDED, That)).

             (2) The term "taxpayer" as used in this section shall mean any person charged, or whose property is charged, with property tax; and the person to be notified is that person whose name appears on the tax roll herein mentioned((: PROVIDED, FURTHER, That)). If no name so appears the person to be notified is that person shown by the treasurer's tax rolls or duplicate tax receipts of any preceding year as the payer of the tax last paid on the property in question.

             Sec. 204. RCW 84.36.383 and 1995 1st sp.s. c 8 s 2 are each amended to read as follows:

             As used in RCW 84.36.381 through 84.36.389 and section 201 of this act, except where the context clearly indicates a different meaning:

             (1) The term "residence" shall mean a single family dwelling unit whether such unit be separate or part of a multiunit dwelling, including the land on which such dwelling stands not to exceed one acre. The term shall also include a share ownership in a cooperative housing association, corporation, or partnership if the person claiming exemption can establish that his or her share represents the specific unit or portion of such structure in which he or she resides. The term shall also include a single family dwelling situated upon lands the fee of which is vested in the United States or any instrumentality thereof including an Indian tribe or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence shall be deemed real property.

             (2) The term "real property" shall also include a mobile home which has substantially lost its identity as a mobile unit by virtue of its being fixed in location upon land owned or leased by the owner of the mobile home and placed on a foundation (posts or blocks) with fixed pipe, connections with sewer, water, or other utilities: PROVIDED, That a mobile home located on land leased by the owner of the mobile home shall be subject, for tax billing, payment, and collection purposes, only to the personal property provisions of chapter 84.56 RCW and RCW 84.60.040.

             (3) "Department" shall mean the state department of revenue.

             (4) "Combined disposable income" means the disposable income of the person claiming the exemption, plus the disposable income of his or her spouse, and the disposable income of each cotenant occupying the residence for the assessment year, less amounts paid by the person claiming the exemption or his or her spouse during the assessment year for:

             (a) Drugs supplied by prescription of a medical practitioner authorized by the laws of this state or another jurisdiction to issue prescriptions; and

             (b) The treatment or care of either person received in the home or in a nursing home.

             (5) "Disposable income" means adjusted gross income as defined in the federal internal revenue code, as amended prior to January 1, 1989, or such subsequent date as the director may provide by rule consistent with the purpose of this section, plus all of the following items to the extent they are not included in or have been deducted from adjusted gross income:

             (a) Capital gains, other than nonrecognized gain on the sale of a principal residence under section 1034 of the federal internal revenue code, or gain excluded from income under section 121 of the federal internal revenue code to the extent it is reinvested in a new principal residence;

             (b) Amounts deducted for loss;

             (c) Amounts deducted for depreciation;

             (d) Pension and annuity receipts;

             (e) Military pay and benefits other than attendant-care and medical-aid payments;

             (f) Veterans benefits other than attendant-care and medical-aid payments;

             (g) Federal social security act and railroad retirement benefits;

             (h) Dividend receipts; and

             (i) Interest received on state and municipal bonds.

             (6) "Cotenant" means a person who resides with the person claiming the exemption and who has an ownership interest in the residence.

             Sec. 205. RCW 84.36.385 and 1992 c 206 s 13 are each amended to read as follows:

             (1) A claim for exemption under RCW 84.36.381 ((as now or hereafter amended)) or a credit under section 201 of this act, shall be made and filed at any time during the year for exemption or credit from taxes payable the following year and thereafter and solely upon forms as prescribed ((and furnished)) by the department of revenue. However, an exemption from tax under RCW 84.36.381 shall continue for no more than four years unless a renewal application is filed as provided in subsection (3) of this section. The county assessor may also require, by written notice, a renewal application following an amendment of the income requirements set forth in RCW 84.36.381. Renewal applications shall be on forms prescribed and furnished by the department of revenue. A credit under section 201 of this act shall continue each year as long as the residence is eligible for credit.

             (2) A person granted an exemption under RCW 84.36.381 or a credit under section 201 of this act shall inform the county assessor of any change in status affecting ((the person's)) entitlement to the exemption or credit on forms prescribed and furnished by the department of revenue.

             (3) Each person exempt from taxes under RCW 84.36.381 in 1993 and thereafter, shall file with the county assessor a renewal application not later than December 31 of the year the assessor notifies such person of the requirement to file the renewal application.

             (4) Beginning in 1992 and in each of the three succeeding years, the county assessor shall notify approximately one-fourth of those persons exempt from taxes under RCW 84.36.381 in the current year who have not filed a renewal application within the previous four years, of the requirement to file a renewal application.

             (5) If the assessor finds that the applicant does not meet the qualifications as set forth in RCW 84.36.381((, as now or hereafter amended)) or section 201 of this act, the claim or exemption shall be denied but such denial shall be subject to appeal under the provisions of RCW 84.48.010(5). If the applicant had received exemption or credit in prior years based on erroneous information, the taxes shall be collected subject to penalties as provided in RCW 84.40.130 for a period of not to exceed three years.

             (6) The department and each local assessor is hereby directed to publicize the qualifications and manner of making claims under RCW 84.36.381 through 84.36.389 and section 201 of this act, through communications media, including such paid advertisements or notices as it deems appropriate. Notice of the qualifications, method of making applications, the penalties for not reporting a change in status, and availability of further information shall be included on or with property tax statements and revaluation notices for all residential property including mobile homes, except rental properties.

             Sec. 206. RCW 84.36.387 and 1992 c 206 s 14 are each amended to read as follows:

             (1) All claims for exemption under RCW 84.36.381 or a credit under section 201 of this act shall be made and signed by the person entitled to the exemption or credit, by his or her attorney in fact or in the event the residence of such person is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, by such holder or by the owner, either before two witnesses or the county assessor or his or her deputy in the county where the real property is located: PROVIDED, That if a claim for exemption or credit is made by a person living in a cooperative housing association, corporation, or partnership, such claim shall be made and signed by the person entitled to the exemption or credit and by the authorized agent of such cooperative.

             (2) If the taxpayer is unable to submit his or her own claim, the claim shall be submitted by a duly authorized agent or by a guardian or other person charged with the care of the person or property of such taxpayer.

             (3) All claims for exemption and renewal applications under RCW 84.36.381 shall be accompanied by such documented verification of income as shall be prescribed by rule adopted by the department of revenue.

             (4) Any person signing a false claim with the intent to defraud or evade the payment of any tax shall be guilty of the offense of perjury.

             (5) The tax liability of a cooperative housing association, corporation, or partnership shall be reduced by the amount of tax exemption or credit to which a claimant residing therein is entitled and such cooperative shall reduce any amount owed by the claimant to the cooperative by such exact amount of tax exemption or credit or, if no amount be owed, the cooperative shall make payment to the claimant of such exact amount of exemption or credit.

             (6) A remainderman or other person who would have otherwise paid the tax on real property that is the subject of an exemption granted under RCW 84.36.381 or a credit granted under section 201 of this act for an estate for life shall reduce the amount which would have been payable by the life tenant to the remainderman or other person to the extent of the exemption or credit. If no amount is owed or separately stated as an obligation between these persons, the remainderman or other person shall make payment to the life tenant in the exact amount of the exemption or credit.

             Sec. 207. RCW 84.36.389 and 1979 ex.s. c 214 s 4 are each amended to read as follows:

             (1) The director of the department of revenue shall adopt such rules ((and regulations)) and prescribe such forms as may be necessary and appropriate for implementation and administration of this chapter subject to chapter 34.05 RCW, the administrative procedure act.

             (2) The department may conduct such audits of the administration of RCW 84.36.381 through 84.36.389 and section 201 of this act and the claims for exemption or credit filed thereunder as it considers necessary. The powers of the department under chapter 84.08 RCW apply to these audits.

             (3) Any information or facts concerning confidential income data obtained by the assessor or the department, or their agents or employees, under subsection (2) of this section shall be used only to administer RCW 84.36.381 through 84.36.389. Notwithstanding any provision of law to the contrary, absent written consent by the person about whom the information or facts have been obtained, the confidential income data shall not be disclosed by the assessor or the assessor's agents or employees to anyone other than the department or the department's agents or employees nor by the department or the department's agents or employees to anyone other than the assessor or the assessor's agents or employees except in a judicial proceeding pertaining to the taxpayer's entitlement to the tax exemption under RCW 84.36.381 through 84.36.389 or credit under section 201 of this act. Any violation of this subsection is a misdemeanor."

             Renumber the remaining parts and sections consecutively and correct any internal references and the title accordingly.

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

             "NEW SECTION. Sec. 401. Sections 201 through 207 of this act take effect for taxes payable in 1998 if the proposed amendment to Article VII of the state Constitution providing for large increases in the assessed value of real property to be phased in over a period of four years and providing tax credits for owner-occupied single-family residential housing (HJR 4212) is validly submitted to and is approved and ratified by the voters at a general election held in November 1997. If the proposed amendment is not approved and ratified, sections 201 through 207 of this act are null and void in their entirety."

             Renumber the remaining section consecutively and correct the title.

POINT OF ORDER

             Representative B. Thomas: Mr. Speaker, I request a ruling on Scope and Object ruling on amendment 542.

SPEAKER'S RULING

             The Speaker (Representative Pennington presiding): Representative Thomas, the Speaker is ready to rule on your request for Scope and Object on amendment 542.

             The subject portion of the title of Engrossed Substitute Senate Bill No. 5574 is: "AN ACTING Relating to property tax reform."

             The Scope of the bill, as measured by the title of the act, is very broad, any amendment dealing with any type of property tax reform will fall within the scope of this title.

             Amendment 542 by Representative Dunshee would propose to reform the property tax system by granting an owner occupied property tax credit.

             Amendment 542 is clearly within the Scope of the title of Engrossed Substitute Senate Bill No. 5574.

             The Object of Engrossed Substitute Senate Bill No. 5574 is to provide tax payers with more information about property taxes. Engrossed Substitute Senate Bill No. 5574 does not alter taxes or extend credits for taxes paid, it simply provides information.

             The Object of amendment 542 as noted above is to grant credits for property taxes paid by home owners.

             The Speaker finds that amendment 542 is beyond the Object of Engrossed Substitute Senate Bill No. 5574.

             Representative B. Thomas, your Point of Order is well taken.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representatives B. Thomas, Dunshee and Carrell spoke in favor of passage of the bill.

             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5574.

ROLL CALL

             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5574 and the bill passed the House by the following vote: Yeas - 90, Nays - 7, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Doumit, Dunn, Dunshee, Dyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 90.

             Voting nay: Representatives Butler, Cody, Dickerson, Fisher, Kessler, Sommers, H. and Veloria - 7.

             Excused: Representative DeBolt - 1.

             Engrossed Substitute Senate Bill No. 5574, having received the constitutional majority, was declared passed.

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

RESOLUTION

             HOUSE RESOLUTION NO. 97-4629, by Representatives Carlson, Mason, Radcliff, Kenney, O'Brien, Butler, Dunn, Sheahan, Hatfield, Robertson, Mitchell, Cooper, Delvin, Dyer, Lisk, Benson, D. Schmidt, L. Thomas, Buck, Alexander, Parlette, Johnson, Ballasiotes, Wensman, Skinner, Cooke, Mastin, Crouse, McMorris, Chandler, DeBolt, Sump, Boldt, Hankins, Schoesler, Van Luven, Zellinsky, Mielke, Smith, Lambert, Pennington, Honeyford, Huff, D. Sommers, B. Thomas, Koster, Hickel, Sterk, Clements, Lantz, Sullivan, Anderson, Quall, Doumit, Tokuda, Ogden, Kessler, Keiser, Cody, Veloria, Sheldon, Regala, Wood, Gardner, Blalock, Fisher, Cole, Conway, Linville, Wolfe, Murray, Constantine, Costa, Dickerson, Chopp, Appelwick, Grant, Scott, Gombosky, Morris, Dunshee, H. Sommers, Kastama, Romero, Backlund, Mulliken, McDonald, Bush, Sherstad, K. Schmidt, Poulsen, Cairnes, Carrell, Talcott, Reams and Thompson

             WHEREAS, The students selected for special recognition as Washington Scholars in 1997 have distinguished themselves as exceptional students, student leaders, and as talented and enthusiastic participants in many diverse activities including art, debate, drama, honor societies, interscholastic sports, Junior Achievement, knowledge competitions, music, and student government; and

             WHEREAS, These exemplary students have also contributed to the welfare of those less fortunate in their neighborhoods through volunteer efforts with community service organizations such as the United Way, Special Olympics, March of Dimes, Big Brothers, Big Sisters, community food drives, senior centers, scouting, and church groups; and

             WHEREAS, The State of Washington benefits greatly from the accomplishments of these caring and gifted individuals, not only in their roles as students, but also as citizens, role models for other young people, and future leaders of our communities and our state; and

             WHEREAS, Through the Washington Scholars Program, the Governor, the legislature, and the state's citizens have an opportunity to recognize and honor three outstanding seniors from each of the state's forty-nine legislative districts for the students' exceptional academic achievements, leadership abilities, and contributions to their communities;

             NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives honor and congratulate the Washington Scholars for their hard work, dedication, contributions, and maturity in achieving this significant accomplishment; and

             BE IT FURTHER RESOLVED, That the families of these students be commended for the encouragement and support they have provided to the scholars; and

             BE IT FURTHER RESOLVED, That the principals, teachers, and classmates of these highly esteemed students be recognized for the important part they played in helping the scholars to learn, contribute, lead, and excel; and

             BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to each of the Washington Scholars selected in 1997.

             Representative Carlson moved adoption of the resolution.

             Representatives Carlson, O'Brien, Mason, Honeyford, Cole, Kenney, Clements and Carlson spoke in favor of the resolution.

             House Resolution No. 4629 was adopted.

             There being no objection, the House reverted to the sixth order of business.

SECOND READING

             SENATE BILL NO. 5559, by Senators Hale, West, Loveland and Anderson

Exempting coin-operated services of car washes from sales and use tax.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representatives Hankins, Delvin, Schoesler, Clements and Hankins spoke in favor of passage of the bill.

             Representatives Dunshee, Dickerson, Anderson, Keiser, Gardner and Cooper spoke against passage of the bill.

             The Speaker stated the question before the House to be final passage of Senate Bill No. 5559.

ROLL CALL

             The Clerk called the roll on the final passage of Senate Bill No. 5559 and the bill passed the House by the following vote: Yeas - 54, Nays - 42, Absent - 1, Excused - 1.

             Voting yea: Representatives Alexander, Backlund, Ballasiotes, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, Delvin, Dunn, Dyer, Grant, Hankins, Hickel, Honeyford, Huff, Johnson, Koster, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Mulliken, Parlette, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sump, Talcott, Thomas, L., Thompson, Van Luven, Wensman and Mr. Speaker - 54.

             Voting nay: Representatives Anderson, Appelwick, Benson, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Hatfield, Kastama, Keiser, Kenney, Kessler, Lambert, Lantz, Linville, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Romero, Sommers, H., Sullivan, Thomas, B., Tokuda, Veloria, Wolfe, Wood and Zellinsky - 42.

             Absent: Representative Blalock - 1.

             Excused: Representative DeBolt - 1.

             Senate Bill No. 5559, having received the constitutional majority, was declared passed.

             SENATE BILL NO. 5811, by Senators Roach, Schow and Fairley; by request of Department of Labor & Industries

             Including terrorism committed outside of the United States in the definition of criminal act for the purposes of crime victim compensation and assistance.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representatives Ballasiotes and Costa spoke in favor of passage of the bill.

             The Speaker stated the question before the House to be final passage of Senate Bill No. 5811.

ROLL CALL

             The Clerk called the roll on the final passage of Senate Bill No. 5811 and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.

             Excused: Representative DeBolt - 1.

             Senate Bill No. 5811, having received the constitutional majority, was declared passed.

             There being no objection, the House deferred consideration of Engrossed Senate Bill No. 5915 and the bill held it's place on the second reading calendar.

             SUBSTITUTE SENATE BILL NO. 6045, by Senate Committee on Ways & Means (originally sponsored by Senators West, Spanel, Strannigan and Oke; by request of Governor Locke)

Creating the savings incentive account.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representatives Huff, Romero, Linville and Dyer spoke in favor of passage of the bill.

             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 6045.

ROLL CALL

             The Clerk called the roll on the final passage of Substitute Senate Bill No. 6045 and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.

             Excused: Representative DeBolt - 1.

             Substitute Senate Bill No. 6045, having received the constitutional majority, was declared passed.

             ENGROSSED SUBSTITUTE SENATE BILL NO. 6068, by Senate Committee on Ways & Means (originally sponsored by Senators West, Spanel and Oke; by request of Secretary of State)

Enhancing legal advertising of state measures.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representative Huff spoke in favor of passage of the bill.

             The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6068.

ROLL CALL

             The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6068 and the bill passed the House by the following vote: Yeas - 93, Nays - 4, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 93.

             Voting nay: Representatives Butler, Fisher, Mastin and Veloria - 4.

             Excused: Representative DeBolt - 1.

             Engrossed Substitute Senate Bill No. 6068, having received the constitutional majority, was declared passed.

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

MOTION FOR RECONSIDERATION

             Representative Parlette, having voted on the prevailing side, moved that rules be suspended, and that the House immediately reconsider the vote on Engrossed Substitute Senate Bill No. 6068. Representative Parlette withdrew the motion.

             There being no objection, the House reverted to the sixth order of business.

SECOND READING

             SENATE BILL NO. 5938, by Senators Roach, Long, Zarelli, Haugen, Benton, Finkbeiner, Oke, Swecker, Anderson, Stevens, Winsley, Strannigan and Schow

Revising sentencing provisions.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representatives Ballasiotes, Costa and Benson spoke in favor of passage of the bill.

             The Speaker stated the question before the House to be final passage of Senate Bill No. 5938.

ROLL CALL

             The Clerk called the roll on the final passage of Senate Bill No. 5938 and the bill passed the House by the following vote: Yeas - 96, Nays - 1, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 96.

             Voting nay: Representative Appelwick - 1.

             Excused: Representative DeBolt - 1.

             Senate Bill No. 5938, having received the constitutional majority, was declared passed.

             SUBSTITUTE SENATE BILL NO. 5845, by Senate Committee on Ways & Means (originally sponsored by Senators Swecker, Prentice, Sellar, Hargrove, Benton, Schow, Heavey, Wood, Bauer, Winsley, Wojahn, Haugen, Rasmussen, Jacobsen, McCaslin, Anderson, Newhouse, Johnson, Horn, West, Morton, Hochstatter, Sheldon, Goings, Finkbeiner, Rossi, Hale, Roach and Oke)

Offsetting an increase in beer tax for health services account with corresponding decrease.

             The bill was read the second time.

             There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

             Representative B. Thomas spoke in favor of passage of the bill.

             Representatives Dunshee and Kessler spoke against passage of the bill.

             The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5845.

ROLL CALL

             The Clerk called the roll on the final passage of Substitute Senate Bill No. 5845 and the bill passed the House by the following vote: Yeas - 82, Nays - 15, Absent - 0, Excused - 1.

             Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Doumit, Dunn, Dyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 82.

             Voting nay: Representatives Appelwick, Butler, Chopp, Cody, Cole, Dickerson, Dunshee, Fisher, Kenney, Mason, Murray, Regala, Sommers, H., Tokuda and Veloria - 15.

             Excused: Representative DeBolt - 1.

             Substitute Senate Bill No. 5845, having received the constitutional majority, was declared passed.

             The Speaker assumed the chair.

             ENGROSSED SUBSTITUTE SENATE BILL NO. 6061, by Senate Committee on Transportation (originally sponsored by Senators Prince, Haugen and Wood; by request of Governor Locke)

             Transportation funding and appropriations.

             The bill was read the second time.

             Representative K. Schmidt moved the adoption of the following amendment by Representative K. Schmidt: (649)

             Strike everything after the enacting clause and insert the following:

"TRANSPORTATION APPROPRIATIONS

             NEW SECTION. Sec. 1. To ensure accountability for the expenditure of transportation revenue by agencies responsible for delivering transportation services and programs to the traveling and taxpaying public, an objective and systematic assessment of the services and programs administered by the departments of transportation and licensing and the Washington state patrol is essential. An audit of the agencies' performance and an examination of the efficiency and effectiveness of service and program delivery by the agencies, shall take place prior to the appropriation for full funding of certain programs, projects, and services in the 1997-99 biennium.

             NEW SECTION. Sec. 2. (1) The transportation budget of the state is hereby adopted and, subject to the provisions hereinafter set forth, the several amounts hereinafter specified, or as much thereof as may be necessary to accomplish the purposes designated, are hereby appropriated from the several accounts and funds hereinafter named to the designated state agencies and offices for salaries, wages, and other expenses, for capital projects, and for other specified purposes, including the payment of any final judgments arising out of such activities, for the period ending June 30, 1999.

             (2) Legislation with fiscal impacts enacted in the 1997 legislative session not assumed in this act are not funded in the 1997-99 transportation budget.

             (3) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this act.

             (a) "Fiscal year 1998" or "FY 1998" means the fiscal year ending June 30, 1998.

             (b) "Fiscal year 1999" or "FY 1999" means the fiscal year ending June 30, 1999.

             (c) "FTE" means full-time equivalent.

             (d) "Lapse" or "revert" means the amount shall return to an unappropriated status.

             (e) "Provided solely" means the specified amount may be spent only for the specified purpose.

             (f) "Performance-based budgeting" means a budget that bases resource needs on quantified outcomes/results expected from use of the total appropriation. "Performance-based budgeting" does not mean incremental budgeting that focuses on justifying changes from the historic budget or to line-item input-driven budgets.

             (g) "Mission" means a statement of an organization's purpose that is concise, understandable, and consistent with the agency's statutory mandate.

             (h) "Vision" means a statement of the organization's preferred future that is idealistic, motivating, directive, and logically connected to the mission.

             (i) "Major strategies" means the broad themes for how an agency plans to accomplish its mission.

             (j) "Goals" means the statements of purpose that identify a desired result or outcome. The statements shall be realistic, achievable, directive, assignable, evaluative, and logically linked to the agency's mission and statutory mandate.

             (k) "Objectives" means the steps taken to reach a goal that are specific and measurable within a specified time period. Objectives shall be assignable, prioritized, time-phased, and have resource estimates.

             (l) "Strategic plan" means the strategies agencies create for investment choices in the future. All agency strategic plans shall present alternative investment strategies for providing services.

PART I

GENERAL GOVERNMENT AGENCIES--OPERATING

          NEW SECTION. Sec. 101. FOR THE DEPARTMENT OF AGRICULTURE

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     304,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The department of agriculture shall report to the legislative transportation committee by January 15, 1998, and January 15, 1999, on the number of fuel samples tested and the findings of the tests for the motor fuel quality program.

          NEW SECTION. Sec. 102. FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     111,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The joint legislative systems committee shall enter into a service level agreement with the legislative transportation committee by June 30, 1997.

          NEW SECTION. Sec. 103. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     420,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The legislative evaluation and accountability program committee shall enter into a service level agreement with the legislative transportation committee by June 30, 1997.

          NEW SECTION. Sec. 104. FOR THE GOVERNOR--FOR TRANSFER TO THE TORT CLAIMS REVOLVING FUND

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,000,000

          Marine Operating Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .     $                  1,000,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  2,000,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The amount of the transfers from the motor vehicle fund and the marine operating fund are to be transferred into the tort claims revolving fund only as claims have been settled or adjudicated to final conclusion and are ready for payout. The appropriation contained in this section is to retire tort obligations that occurred before July 1, 1990.

          NEW SECTION. Sec. 105. FOR THE UTILITIES AND TRANSPORTATION COMMISSION

          Grade Crossing Protective Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .    $                     222,000

PART II

TRANSPORTATION AGENCIES

          NEW SECTION. Sec. 201. FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION

          Highway Safety Fund--State Appropriation.. . . . . . .                                                $                         436,000

          Highway Safety Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                  5,216,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     950,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  6,602,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The transportation fund--state appropriation includes $900,000 to fund community DUI task forces. Funding from the transportation fund for any community DUI task force may not exceed twenty-five percent of total expenditures in support of that task force.

          (2) $50,000 of the transportation fund--state appropriation is provided to support local law enforcement implementing the drug recognition expert (DRE) and drugged driving programs. Any funds not required for the DRE program may be used for programs related to heavy trucks that improve safety and enforcement of Washington state laws.

          NEW SECTION. Sec. 202. FOR THE BOARD OF PILOTAGE COMMISSIONERS

          Pilotage Account--State Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     275,000

          NEW SECTION. Sec. 203. FOR THE COUNTY ROAD ADMINISTRATION BOARD

          Motor Vehicle Fund--Rural Arterial Trust Account--State Appropriation. . . . . . . .    $                57,397,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,548,000

          Motor Vehicle Fund--Private/Local Appropriation. .                                                $                         383,000

          Motor Vehicle Fund--County Arterial Preservation Account--State Appropriation. . .$                27,940,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                87,268,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $124,000 of the county arterial preservation account--state appropriation is provided for a computer programmer to rewrite and expand the county road information system for compatibility with Windows computer software. It is the intent of the legislature that this position be a project position and is funded for the 1997-99 biennium only.

          NEW SECTION. Sec. 204. FOR THE TRANSPORTATION IMPROVEMENT BOARD

          Motor Vehicle Fund--Urban Arterial Trust Account--State Appropriation. . . . . . .     $                57,159,000

          Motor Vehicle Fund--Transportation Improvement Account--State Appropriation.$                  122,014,000

          Motor Vehicle Fund--City Hardship Assistance Account--State Appropriation. . .     $                  2,649,000

          Motor Vehicle Fund--Small City Account--State Appropriation. . . . . . . . . . . . . . .     $                  7,921,000

          Central Puget Sound Public Transportation Account--State Appropriation. . . . . . .    $                26,910,000

          Public Transportation Systems Account--State Appropriation. . . . . . . . . . . . . . . . .    $                  2,928,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              219,581,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The transportation improvement account--state appropriation includes $40,000,000 in proceeds from the sale of bonds authorized in RCW 47.26.500. However, the transportation improvement board may authorize the use of current revenues available in lieu of bond proceeds.

          NEW SECTION. Sec. 205. FOR THE LEGISLATIVE TRANSPORTATION COMMITTEE

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  2,822,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     500,000

          Central Puget Sound Public Transportation Account--State Appropriation. . . . . . .    $                     200,000

          High Capacity Transportation Account--State Appropriation. . . . . . . . . . . . . . . . .     $                     500,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  4,022,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) In order to meet the growing demand for services the legislative transportation committee shall seek accountability and efficiencies within transportation agency programs through in-depth program evaluations. These program evaluations shall consider:

          (a) Whether or not strategic planning and performance-based budgeting is a preferable planning and budgeting tool to the current incremental budgeting process for agency administrative programs and capital program budgeting;

          (b) How the programs are performing currently and how service would be affected at different funding levels using performance measures; and

          (c) What decision-making tools aid with the budgeting and oversight of these programs, such as tools developed during the maintenance accountability program (MAP) conducted by the legislative transportation committee during the 1995-97 biennium.

          (2) In consultation with other legislative committees, the legislative transportation committee shall study ways to enhance budget development tools and presentation documents that will better illustrate agencies' full appropriation authority and the intended outcomes of the appropriation.

          (3) The legislative transportation committee shall conduct an evaluation of services provided by the county road administration board, the transportation improvement board and the TransAid division within the department of transportation. The evaluation shall assess whether consolidation of any of these activities will result in efficiencies and improved service delivery. The evaluation shall also assess the funding structure of these organizations to determine whether there are any benefits gained from a more simplified structure. The evaluation shall also assess other funding authorities to see if there is potential for further expansion of these revenues. The committee shall report its findings and recommendations to the 1998 legislature and, if needed, prepare legislation to implement those recommendations. $150,000 of the motor vehicle fund--state appropriation is provided for this evaluation.

          (4) $250,000 of the transportation fund--state appropriation is provided solely for an assessment of the licensing application migration project (LAMP). The assessment shall include but not be limited to the following: (a) Validity of the project based on circumstances when the project was created versus those that exist at the time of the assessment; (b) whether or not the project is achieving the results for which it was established; (c) alternatives for delivering the project; (d) identification of the costs or implications of not completing the project; and (e) recommendations for decreasing the amount of operating LAMP. A consultant may be hired to assist in the assessment.

          (5) The legislative transportation committee, in cooperation with the house appropriations committee, the senate ways and means committee, and the office of financial management, shall study and report to the legislature its findings regarding the process and procedures for calculation, determination, and collection of the amounts of motor vehicle excise tax (MVET) collected on the sale or lease of motor vehicles in this state. The report shall include findings as to the base amount for calculation of MVET, the amortization schedule for calculation of MVET, and adequacy and efficiency of current systems to provide accurate and timely information to those responsible for determining and collecting the MVET due, including recommendations for determining the MVET due for current and future multiple MVET tax structures. The report must also include a status report as to the progress and feasibility of using third party information providers or using private vendors to collect the MVET. $200,000 of the transportation fund--state appropriation is provided for this evaluation including the use of a consultant.

          (6) Up to $200,000 of the central Puget Sound public transportation account--state appropriation and up to $50,000 of the transportation fund--state appropriation may be used by the legislative transportation committee to contract for a performance audit of selected public transportation systems to ascertain the relative effectiveness and efficiency of those systems, including their per vehicle hour cost structure. The committee may also utilize these funds to conduct an evaluation to address the future financial viability of municipal transit agencies which do not currently receive state support for transit from the motor vehicle excise tax.

          (7) The legislative transportation committee shall review and analyze freight mobility issues affecting eastern and southeastern Washington as recommended by the freight mobility advisory committee and report back to the legislature by November 1, 1997. $500,000 of the high capacity transportation account--state appropriation is provided for this review and analysis.

          (8) The legislative transportation committee shall, in accordance with government accounting standards prescribed by the comptroller general of the United States, conduct performance audits of the department of transportation, focusing on its responsibilities for the highway and ferry systems; the department of licensing, focusing on the processes for motor vehicle and driver licensing functions; and the Washington state patrol, concentrating on law enforcement operations, communications systems, and technology requirements. The performance audits shall be an objective and systematic assessment of the programs administered by the department, including each program's effectiveness, efficiency, and accountability. Under the provisions of chapter 39.29 RCW, the legislative transportation committee shall use a firm or firms to conduct the audits.

          (9) The committee shall consult frontline employees, program managers, customers of the programs and agency services, taxpayers, legislators, legislative staff, the joint legislative audit and review committee, state auditor, office of financial management staff, and other external public and private sector experts in conducting the performance audit. On behalf of the committee, the independent evaluator shall be provided direct and unrestricted access to information held by the agencies, which shall submit all data and other information requested by the committee.

          (10) The performance audit shall identify those activities and programs that should be strengthened, those that should be abandoned, and those that need to be redirected or other alternatives explored. In conducting the audit, the following objectives shall be addressed as appropriate:

          (a) Identify each of the discrete functions or activities, along with associated costs and full-time equivalent staff;

          (b) Determine the extent to which the particular activity or function is specifically authorized in statute or is consistent with statutory direction and intent;

          (c) Establish the relative priority of the program among the agency's functions;

          (d) Consider whether or not the purpose for which the program was created is still valid based on the circumstances under which the program was created versus those that exist at the time of the audit;

          (e) Recommend organizations or programs in the public or private sector to be used as benchmarks against which to measure the performance of the program or function;

          (f) Determine whether or not the program or function is achieving the results for which it was established;

          (g) Identify alternatives for delivering the program or service, either in the public or private sector;

          (h) Identify any duplication of services with other government programs or private enterprises or gaps in services;

          (i) Identify the costs or implications of not performing the function;

          (j) Determine the frequency with which other states perform similar functions, as well as their relative funding levels and performance;

          (k) In the event of inadequate performance by the program, identify the potential for a workable, affordable plan to improve performance;

          (l) Identify, to the extent possible, the causes of any program's failure to achieve the desired results and identify alternatives for reducing costs or improving service delivery, including transferring functions to other public or private sector organizations; and

          (m) Develop recommendations relating to statutes that inhibit or do not contribute to the agency's ability to perform its functions effectively and efficiently and whether specific statutes, activities, or programs should be continued, abandoned, or restructured.

          (11) In conducting the performance audit of the Washington state ferries' capital program, the committee shall evaluate and make recommendations on the following elements:

          (a) Washington state ferries' compliance with the recommendations of the 1991 Booz. Allen and Hamilton vessel construction and refurbishment study;

          (b) Vessel procurement procedures that maximize cost effective preservation, maintenance, and new construction of Washington state ferries;

          (c) The appropriate level of Washington state ferries' in-house design and construction, design or construction functions that could be performed by private engineering firms and shipyards, and procedures to appropriately share the risk of project performance between the state and private shipyards in the implementation of contractual work;

          (d) Washington state ferries' long-range plan recommendations for terminal and vessel investments, with particular focus on the appropriate investments to meet forecasted vehicle and passenger travel demands, emergent vessel capacity and existing fleet preservation needs, needed route structures, and related terminal capacity; and

          (e) Other elements or issues as directed by the advisory committee.

          (12) In conducting the performance audit of the Washington state ferries' operating program, the committee shall evaluate and make recommendations on the following elements:

          (a) The administration and organizational structure of the Washington state ferries, with specific focus on the appropriate level of management staffing, and clerical and support functions necessary for terminal and vessel activities;

          (b) The efficiency of current staging, loading, and traffic management procedures;

          (c) The appropriate service level and related vessel deployment for existing and planned routes;

          (d) Appropriate procedures for vessel operational support; including, but not limited to, fueling, water, sewage, and hazardous materials management procedures;

          (e) Internal controls of revenue collections and inventory;

          (f) Review of emergency management procedures;

          (g) The feasibility of converting international route service to local government and/or private sector operation;

          (h) Radio and electronic vessel communications and electronic tracking systems;

          (i) Contractual agreements for agent services;

          (j) Terminal utility cost increases;

          (k) Internal control procedures to ensure the accuracy of payroll;

          (l) Strategies for maintenance support of vessels and terminals, including an assessment of Eagle Harbor operations;

          (m) Fleet and terminal equipment processes to enhance operational support and cost effective purchases;

          (n) Essential training and human resources requirements, including training needed to comply with regulatory agency mandates;

          (o) Appropriate levels of support necessary for the consistent operation of supporting data processing systems;

          (p) System-wide charges for software licensing and policy for purchasing, or upgrading computer workstations; and

          (q) Other elements or issues as directed by the committee.

          (13) Unless the committee determines otherwise, the preliminary and final audit reports for the Washington state ferries shall be completed by October 1, 1997, and January 1, 1998, respectively. Unless the committee determines otherwise, the preliminary and final audit reports for other programs administered by the department of transportation, the department of licensing and the Washington state patrol shall be completed by August 1, 1998, and November 1, 1998, respectively.

          (14)(a) The legislative transportation committee shall create a temporary advisory committee to assist the committee in conducting this performance audit. The advisory committee shall assist the committee in the following matters:

          (i) Identifying stakeholders;

          (ii) Developing the audit scope and objectives;

          (iii) Reviewing progress reports provided by the legislative transportation committee;

          (iv) Reviewing preliminary and final audit reports;

          (v) Facilitating communication of audit findings to other members of the legislature.

          (b) The advisory committee shall be comprised of representatives of the joint legislative audit and review committee, the legislative transportation committee, and other stakeholders as determined by the legislative transportation committee.

          (c) The advisory committee shall be chaired by the chair of the legislative transportation committee or his or her designee.

          NEW SECTION. Sec. 206. FOR THE MARINE EMPLOYEES COMMISSION

          Motor Vehicle Fund--Puget Sound Ferry Operations Account--State Appropriation $                         354,000

          NEW SECTION. Sec. 207. FOR THE TRANSPORTATION COMMISSION

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     804,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity: The transportation commission shall report to the legislative transportation committee following adoption of the highway, rail, capital facilities, and ferry capital construction programs, and provide status reports to the committee throughout the biennium.

          NEW SECTION. Sec. 208. FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

          Motor Vehicle Fund--State Patrol Highway Account--State Appropriation. . . . . . .    $              159,006,000

          Motor Vehicle Fund--State Patrol Highway Account--Federal Appropriation. . . . .    $                  4,374,000

          Motor Vehicle Fund--State Patrol Highway Account--Local Appropriation. . . . . .     $                     170,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              163,550,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The Washington state patrol is authorized to use the federal community oriented policing program (COPS) for 54 troopers with 18 COPS troopers to begin in July 1998 and 36 COPS troopers to begin in January 1999.

          (2) The Washington state patrol is authorized an additional 18 COPS troopers, for attrition purposes, in the 1997-99 biennium if approved for federal matching funds.

          (3) The Washington state patrol is authorized 8 additional investigator positions to begin in July 1997.

          (4) The Washington state patrol will develop a vehicle replacement plan for the next six years. The plan will include an analysis of the current 100,000 miles replacement policy and agency assignment policy. Projected future budget requirements will include forecasts of vehicle replacement costs, vehicle equipment costs, and estimated surplus vehicle values when sold at auction.

          (5) The Washington state patrol vessel and terminal security (VATS) program will be funded by the state patrol highway fund beginning July 1, 1997, and into future biennia.

          (6) A personnel data base will be maintained of the 789 commissioned traffic law enforcement officers, with a reconciliation at all times to the patrol allocation model and a vehicle assignment and replacement plan.

          (7) $150,000 of the state patrol highway account appropriation is to fund the Washington state patrol's portion of the drug recognition expert training program formally funded by the traffic safety commission.

          (8)(a) The Washington state patrol, in consultation with the Washington traffic safety commission, shall conduct an analysis of the most effective safety devices for preventing accidents while delivery trucks are operating in reverse gear. The analysis shall focus on trucks equipped with cube-style, walk-in cargo boxes, up to eighteen feet long, that are most commonly used in the commercial delivery of goods and services.

          (b) The state patrol shall incorporate research and analysis currently being conducted by the national highway traffic safety administration.

          (c) Upon completion of the analysis, the state patrol shall forward its recommendations to the legislative transportation committee.

          NEW SECTION. Sec. 209. FOR THE WASHINGTON STATE PATROL--SUPPORT SERVICES BUREAU

          Motor Vehicle Fund--State Patrol Highway Account--State Appropriation. . . . . . .    $                54,961,000

Motor Vehicle Fund--State Patrol Highway Account--Federal Appropriation. . . . . . . . . .    $                     104,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                55,065,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) $1,017,000 for the state patrol highway account--state appropriation is provided solely for year 2000 conversions of transportation automated systems. For purposes of this subsection, transportation automated systems does not include WASIS and WACIS.

          (2) These appropriations maintain current level funding for the Washington state patrol service center and have no budget savings included for a consolidation of service centers based on the study conducted by the technology management group. During the 1997 interim, the costs for current level will be reviewed by the office of financial management and department of information services with a formal data center recommendation, that has been approved by the information services board, to the legislature in January 1998. Current level funding will be split between fiscal year 1998 and fiscal year 1999 with consideration of funding adjustments based on the review and the formal policy and budget recommendations.

          NEW SECTION. Sec. 210. FOR THE DEPARTMENT OF LICENSING--MANAGEMENT AND SUPPORT SERVICES

          Highway Safety Fund--Motorcycle Safety Education Account--State Appropriation $                          77,000

          State Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                       57,000

          Highway Safety Fund--State Appropriation.. . . . . . .                                                $                      5,538,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  4,501,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     900,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                11,073,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The agency is directed to develop a proposal for implementing alternative approaches to delivering agency services to the public. The alternative approaches may include the use of credit card payment for telephone or use of the internet for renewals of vehicle registrations. The proposal shall also include collocated services for greater convenience to the public. The agency shall submit a copy of the proposal to the legislative transportation committee and to the office of financial management no later than December 1, 1997.

          NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF LICENSING--INFORMATION SYSTEMS

          Highway Safety Fund--Motorcycle Safety Education Account--State Appropriation $                            2,000

          General Fund--Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .     $                     123,000

          Highway Safety Fund--State Appropriation.. . . . . . .                                                $                    10,082,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  8,053,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,190,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                19,450,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) $11,172,000, of which $2,988,000 is from the motor vehicle fund--state appropriation and $8,184,000 is from the highway safety fund--state appropriation, is provided for the licensing application migration project (LAMP) system for fiscal year 1998 only.

          (2) The licensing application migration project (LAMP) quality assurance consultant shall provide the LAMP steering committee with bimonthly reports on the status of the LAMP project. The bimonthly reports must be on alternate months from the bimonthly reports provided by the department of information services. The reports required in this subsection shall be delivered to the senate and house of representatives transportation committee chairs.

          Moneys are not provided in this act for the inclusion of general fund activities in the LAMP project.

          NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

          General Fund--Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . .     $                       26,000

          General Fund--Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .     $                     549,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                50,003,000

          Department of Licensing Services Account--State Appropriation. . . . . . . . . . . . . .     $                  2,944,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                53,522,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: $600,000 of the licensing service account--state appropriation is provided for replacement of printers for county auditors and subagents.

          NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

          Highway Safety Fund--Motorcycle Safety Education Account--State Appropriation $                     1,160,000

          Highway Safety Fund--State Appropriation.. . . . . . .                                                $                    61,087,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  4,985,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                67,232,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) If Substitute House Bill No. 1501 is not enacted by June 30, 1997, $2,503,000 of the highway safety fund--state appropriation shall lapse.

          (2) The department of licensing, in cooperation with the fuel tax advisory committee, shall prepare and submit a report to the legislative transportation committee containing recommendations for special fuel and motor vehicle fuel recordkeeping and reporting requirements, including but not limited to recommendations regarding the form and manner in which records and tax reports must be maintained and made available to the department; which persons engaged in the business of selling, purchasing, distributing, storing, transporting, or delivering fuel should be required to submit periodic reports regarding the disposition of such fuel; and the feasibility of implementing an automated fuel tracking system. The report is due no later than October 31, 1997.

          NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MANAGEMENT AND FACILITIES--PROGRAM D--OPERATING

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                24,703,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                     400,000

          Motor Vehicle Fund--Transportation Capital Facilities Account--State Appropriatio $                  22,544,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                47,647,000

          NEW SECTION. Sec. 215. FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

          Transportation Fund--Aeronautics Account--State Appropriation. . . . . . . . . . . . . .    $                  3,551,000

          Transportation Fund--Aeronautics Account--Federal Appropriation. . . . . . . . . . . .    $                         1,000

          Aircraft Search and Rescue, Safety, and Education Account--State Appropriation  $                         216,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  3,768,000

          NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF TRANSPORTATION--IMPROVEMENTS--PROGRAM I

          Motor Vehicle Fund--Economic Development Account--State Appropriation. . . .     $                  2,434,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                88,015,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $              130,485,000

          Motor Vehicle Fund--Private/Local Appropriation. .                                                $                    40,000,000

          Special Category C Account--State Appropriation. .. . . . . . . . . . . . . . . . . . . . . . . .     $                78,600,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              203,546,000

          Puyallup Tribal Settlement Account--State Appropriation. . . . . . . . . . . . . . . . . . . .    $                  5,000,000

          Puyallup Tribal Settlement Account--Private/Local Appropriation. . . . . . . . . . . . .    $                     200,000

          High Capacity Transportation Account--State Appropriation. . . . . . . . . . . . . . . . .     $                  1,288,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              549,568,000

          The appropriations in this section are provided for the location, design, right of way acquisition, and construction of state highway projects designated as improvements under RCW 47.05.030. The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The special category C account--state appropriation of $78,600,000 includes $26,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812 through 47.10.817 and includes $19,000,000 in proceeds from the sale of bonds authorized by House Bill No. 1012. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. If House Bill No. 1012 is not enacted by June 30, 1997, $19,000,000 of the special category C account--state appropriation shall lapse.

          (2) The motor vehicle fund--state appropriation includes $2,685,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1) for match on federal demonstration projects. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

          (3) The department shall report annually to the legislative transportation committee on the status of the projects funded by the special category C appropriations contained in this section. The report shall be submitted by January 1 of each year.

          (4) The motor vehicle fund--state appropriation in this section includes $600,000 solely for a rest area and information facility in the Nisqually gateway area to Mt. Rainier, provided that at least forty percent of the total project costs are provided from federal, local, or private sources. The contributions from the nonstate sources may be in the form of in-kind contributions including, but not limited to, donations of property and services.

          (5) The appropriations in this section contain $118,247,000 reappropriation from the 1995-97 biennium.

          (6) No moneys are provided for the Washington coastal corridor study.

          (7)(a) The project called "SR 520 Corridor Alternative Analysis" in Program I shall be hereafter called the "Trans-Lake Washington Study."

          (b) The department of transportation shall conduct a comprehensive study examining alternative transportation options for east-west traffic in King county addressing mobility, mitigation, preservation, and access. Such study shall include but not be limited to: Transportation flows east and west across Lake Washington on SR 520 and I-90, as well as north around Lake Washington; alternatives for enhancing traffic flow for those currently using SR 520 from the eastern side of Lake Washington through to the terminus of SR 520 in Redmond; integration of such alternatives with I-5 and I-405; long-term maintenance and safety needs for the Evergreen Point Floating Bridge; and consideration of all modes of transportation, including transit and transportation demand management. Comprehensive mitigation of existing and future impacts shall be an integral and inseparable part of any alternatives studied. The study shall be conducted with extensive citizen, local jurisdiction, community, and user stakeholder involvement in both scoping and in development of alternatives. The goal of the study shall be to develop a set of reasonable and feasible solutions.

          (c) By November 1997, the department shall submit a study schedule to the legislative transportation committee setting forth major milestones, and the process developed for scoping and conducting the study, which process shall be developed with the affected stakeholders. The study shall be completed by December 1998.

          (d) The motor vehicle fund appropriation includes $1,250,000 to carry out the provisions of this subsection. It is the intent of the legislature that funding for the Trans-Lake Washington study be redirected from other SR 520 projects.

          (8) $150,000 of the motor vehicle fund--state appropriation is provided for the state share of conducting a six point access corridor analysis required by the federal highway administration before improvements to the NE 44th Street interchange on SR 405 can be implemented.

          NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION ECONOMIC PARTNERSHIPS--PROGRAM K

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,280,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                16,235,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                17,515,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The motor vehicle fund--state appropriation includes $16,235,000 in proceeds from the sale of bonds authorized in RCW 47.10.834 for all forms of cash contributions, or the payment of other costs incident to the location, development, design, right of way, and construction of only the SR 16 corridor improvements and park and ride projects selected under the public-private transportation initiative program authorized under chapter 47.46 RCW; and support costs of the public-private transportation initiatives program.

          (2) The appropriations in this section contain $16,235,000 reappropriated from the 1995-97 biennium.

          NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              225,274,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                     461,000

          Motor Vehicle Fund--Private/Local Appropriation. .                                                $                      3,305,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              229,040,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) If portions of the appropriations in this section are required to fund maintenance work resulting from major disasters not covered by federal emergency funds such as fire, flooding, and major slides, supplemental appropriations will be requested to restore state funding for ongoing maintenance activities.

          (2) The department shall deliver the highway maintenance program according to the plans for each major maintenance group to the extent practical. However, snow and ice expenditures are highly variable depending on actual weather conditions encountered. If extraordinary winter needs result in increased winter maintenance expenditures, the department shall, after prior consultation with the transportation commission, the office of financial management, and the legislative transportation committee adopt one or both of the following courses of action: (a) Reduce planned maintenance activities in other groups to offset the necessary increases for snow and ice control; or (b) continue delivery as planned within other major maintenance groups and request a supplemental appropriation in the following legislative session to fund the additional snow and ice control expenditures.

          (3) The department shall request an unanticipated receipt for any federal moneys received for emergency snow and ice removal and shall place an equal amount of the motor vehicle fund--state into unallotted status. This exchange shall not affect the amount of funding available for snow and ice removal.

          NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF TRANSPORTATION--PRESERVATION--PROGRAM P

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              271,777,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $              274,259,000

          Motor Vehicle Fund--Private/Local Appropriation. .                                                $                      2,400,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              548,436,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The motor vehicle fund--state appropriation includes $6,800,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes. However, the transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

          (2) The appropriations in this section contain $27,552,000 reappropriated from the 1995-97 biennium.

          NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                22,388,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity: The department, in cooperation with the Washington state patrol and the tow truck industry, shall develop and submit to the legislative transportation committee by October 31, 1997, a recommendation for implementing new tow truck services during peak hours on the Puget Sound freeway system.

          NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF TRANSPORTATION--SALES AND SERVICES TO OTHERS--PROGRAM R

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     299,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                     400,000

          Motor Vehicle Fund--Private/Local Appropriation                                                   $                    12,433,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                13,132,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) It is the intent of the legislature to continue the state's partnership with the federal government, local government, and the private sector in transportation construction and operations in the most cost-effective manner.

          (2) If Substitute House Bill No. 1010 is enacted by June 30, 1997, all of the appropriations in this section shall lapse.

          NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

          Motor Vehicle Fund--Puget Sound Capital Construction Acct--State Appropriation $                         777,000

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                57,046,000

          Motor Vehicle Fund--Puget Sound Ferry Operations Acct--State Appropriation      $                      1,093,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,158,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                60,074,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The motor vehicle fund--state appropriation includes $2,650,000 solely for programming activities to bring the department's information systems into compliance with the year 2000 requirements of the department of information services. The department is directed to expend the moneys internally reallocated for this purpose before spending from this appropriation. The department is directed to provide quarterly reports on this effort to the legislative transportation committee and the office of financial management beginning October 1, 1997.

          (2) It is the intent of the legislature that the department of transportation may implement a voluntary retirement incentive program that is cost neutral provided that such program is approved by the director of financial management.

          NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                15,316,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                15,966,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  1,384,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                32,666,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) Up to $2,400,000 of the motor vehicle fund--state appropriation is provided for regional transportation planning organizations, with allocations for participating counties maintained at the 1995-1997 biennium levels for those counties not having metropolitan planning organizations within their boundaries.

          (2) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $5,500,000 of the motor vehicle fund--federal appropriation shall lapse.

          NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

          (1) FOR PAYMENT OF COSTS OF ATTORNEY GENERAL TORT CLAIMS SUPPORT

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                  2,515,000

          (2) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITOR

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                     840,000

          (3) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                  3,391,000

          (4) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                  2,240,000

          (5) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                12,120,000

          (6) FOR PAYMENT OF SELF-INSURANCE LIABILITY PREMIUMS AND ADMINISTRATION

                            Motor Vehicle Fund--Puget Sound Ferry Operations Account—

                                         State Appropriation. . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  2,928,000

          (7) FOR PAYMENT OF COSTS OF THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                     536,000

          (8) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF GENERAL ADMINISTRATION STATE PARKING SERVICES

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                       90,000

          (9) FOR PAYMENT OF THE DEPARTMENT OF GENERAL ADMINISTRATION CAPITAL PROJECTS SURCHARGE

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                     735,000

          (10) FOR ARCHIVES AND RECORDS MANAGEMENT

                            Motor Vehicle Fund--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .     $                     295,000

          NEW SECTION. Sec. 225. FOR THE DEPARTMENT OF TRANSPORTATION--WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

          Motor Vehicle Fund--Puget Sound Capital Construction Acct--State Approp. . . . .    $              243,229,000

          Motor Vehicle Fund--Puget Sound Capital Construction Acct--Federal Approp. . .    $                30,165,000

          Motor Vehicle Fund--Puget Sound Capital Const Acct--Private/Local Approp. . . .    $                     765,000

          Transportation Fund--Passenger Ferry Account--State Appropriation. . . . . . . . . . .    $                     579,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $              274,738,000

          The appropriations in this section are provided for improving the Washington state ferry system, including, but not limited to, vessel acquisition, vessel construction, major and minor vessel improvements, and terminal construction and improvements. The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The appropriations in this section are provided to carry out only the projects (version 3) adjusted by the legislature for the 1997-99 budget. The department shall reconcile the 1995-97 capital expenditures within ninety days of the end of the biennium and submit a final report to the legislative transportation committee and office of financial management.

          (2) The Puget Sound capital construction account--state appropriation includes $100,000,000 in proceeds from the sale of bonds authorized by RCW 47.60.800 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries, including construction of new jumbo ferry vessels in accordance with the requirements of RCW 47.60.770 through 47.60.778. However, the department of transportation may use current revenues available to the Puget Sound capital construction account in lieu of bond proceeds for any part of the state appropriation.

          (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the capital program authorized in this section.

          (4) Washington state ferries is authorized to reimburse up to $3,000,000 from the Puget Sound capital construction account--state appropriation to the city of Bremerton and the port of Bremerton for Washington state ferries' financial participation in the development of a Bremerton multimodal transportation terminal, port of Bremerton passenger-only terminal expansion, and ferry vehicular connections to downtown traffic circulation improvements. The reimbursement shall specifically support the construction of the following components: Appropriate passenger- only ferry terminal linkages to accommodate bow-loading catamaran type vessels and the needed transit connections; and the Washington state ferries' component of the Bremerton multimodal transportation terminal as part of the downtown Bremerton redevelopment project, including appropriate access to the new downtown traffic circulation road network.

          (5) The Puget Sound capital construction account--state appropriation includes funding for capital improvements for only one vessel to meet United States Coast Guard Subchapter W regulation revisions impacting SOLAS (safety of life at sea) requirements for ferry operations on the Anacortes to Sidney, B.C. ferry route.

          (6) The Puget Sound capital construction account--state appropriation and the passenger ferry account--state appropriation include funding for the construction of one new passenger-only vessel and the department's exercise of the option to build a second passenger-only vessel.

          (7) The Puget Sound capital construction account--state appropriation includes funding for the exploration and acquisition of a design for constructing a millennium class ferry vessel.

          (8) The Puget Sound capital construction account--state appropriation includes $90,000 for the purchase of defibrillators. At least one defibrillator shall be placed on each vessel in the ferry fleet.

          (9) The appropriations in this section contain $46,962,000 reappropriated from the 1995-97 biennium.

          (10) The Puget Sound capital construction account--state appropriation includes $57,461,000 for the 1997-99 biennium portion of the design and construction of a fourth Jumbo Mark II ferry and for payments related to the lease-purchase of the vessel's engines and propulsion system. This appropriation is subject to the following conditions and limitations. If House Bill No. 2108 authorizing the department to procure the vessel utilizing existing construction and equipment acquisition contracts is not enacted during the 1997 legislative session, this provision is null and void. $50,000,000 of the motor vehicle fund--Puget Sound capital construction account--state appropriation shall not be allotted. $7,461,000 may be allotted for preservation or renovation of Super class ferries.

          NEW SECTION. Sec. 226. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

          Marine Operating Fund--State Appropriation. . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              256,785,000

          The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The appropriation is based on the budgeted expenditure of $27,368,000 for vessel operating fuel in the 1997-99 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

          (2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 1997-99 biennium may not exceed $171,590,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $313.95 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 1997-99 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

          The prescribed salary and insurance benefit increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 1997, and thereafter, as established in the 1997-99 general fund operating budget.

          (3) The department of transportation shall provide to the legislative transportation committee and office of financial management a quarterly financial report concerning the status of the operating program authorized in this section.

          (4) The appropriation in this section includes up to $1,566,000 for additional operating expenses required to comply with United States Coast Guard Subchapter W regulation revisions for one vessel operating on the Anacortes to Sidney, B.C. ferry route. The department shall explore methods to minimize the cost of meeting United States Coast Guard requirements and shall report the results to the legislative transportation committee by September 1, 1997.

          (5) No funds are provided for Washington state ferries' lease of the Anacortes ferry terminal. The department shall request a waiver of the cost associated with the use of the terminal leased from the Port of Anacortes and costs associated with use of the Sidney, British Columbia terminal.

          (6) Agreements between Washington state ferries and concessionaires for automatic teller machines on ferry terminals or vessels shall provide for and include banks and credit unions that exclusively serve the west side of Puget Sound.

          (7) In the event federal funding is provided for one or more passenger-only ferry vessels for the purpose of transporting United States naval personnel, the department of transportation is authorized to acquire and construct such vessels in accordance with the authority provided in RCW 47.56.030, and the department shall establish a temporary advisory committee comprised of representatives of the Washington state ferries, transportation commission, legislative transportation committee, office of financial management, and the United States Navy to analyze and make recommendations on, at a minimum, vessel performance criteria, docking, vessel deployment, and operating issues.

          (8) Upon completion of the construction of the three Mark II Jumbo Class ferry vessels, two vessels shall be deployed for service on the Seattle-Bainbridge ferry route and one shall be deployed for service on the Edmonds-Kingston ferry route. Of the existing Jumbo Class ferry vessels, one shall be deployed for use on the Edmonds-Kingston route and the remaining vessel shall be used as a back-up boat for both the Seattle-Bainbridge and Edmonds-Kingston routes.

          NEW SECTION. Sec. 227. FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION AND RAIL--PROGRAM Y

          Essential Rail Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . .     $                     256,000

          High Capacity Transportation Account--State Appropriation. . . . . . . . . . . . . . . . .     $                  7,530,000

          Air Pollution Control Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . .     $                  6,290,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                46,895,000

          Transportation Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                12,399,000

          Transportation Fund--Private/Local Appropriation.                                                 $                         105,000

          Central Puget Sound Public Transportation Account--State Appropriation. . . . . . .    $                     500,000

          Public Transportation Systems Account--State Appropriation. . . . . . . . . . . . . . . . .    $                  1,000,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                74,975,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) Up to $42,680,000 of the transportation fund--state appropriation is provided for intercity rail passenger service including up to $8,000,000 for lease purchase of two advanced technology train sets with total purchase costs not to exceed $20,000,000; up to $1,000,000 for one spare advanced technology train power-car and other spare parts, subsidies for operating costs not to exceed $12,000,000, to maintain service of two state contracted round trips between Seattle and Portland and one state contracted round trip between Seattle and Vancouver, British Columbia, and capital projects necessary to provide Seattle-Vancouver, British Columbia, train operating times of under 4 hours.

          (2) Up to $500,000 of the transportation fund--state appropriation and up to $1,000,000 of the public transportation systems account--state appropriation is provided for the rural mobility program administered by the department of transportation. Priority for grants provided from this account shall be given to projects and programs that can be accomplished in the 1997-99 biennium.

          (3) Up to $600,000 of the high capacity transportation account--state appropriation is provided for rail freight coordination, technical assistance, and planning.

          (4) The department shall provide biannual reports to the legislative transportation committee regarding the department's rail freight program. The department shall also notify the committee for project expenditures from all fund sources. The department shall examine the ownership of grain cars and the potential for divestiture of those cars and other similar assets and report those findings to the committee prior to the 1998 legislative session.

          (5) $500,000 of the transportation fund--state appropriation and the entire central Puget Sound public transportation account--state appropriation are for the agency council on coordinated transportation established in chapter . . . (House Bill No. 2166 or similar legislation), Laws of 1997 and are in addition to any appropriation for the council contained in the omnibus operating budget for the 1997-99 biennium.

          (6) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $8,452,000 of the transportation fund--federal appropriation shall lapse.

          (7) The appropriations in this section contain $4,599,000 reappropriated from the 1995-97 biennium.

          (8) The high capacity transportation account--state appropriation includes $75,000 for the department to develop a strategy and to identify how the agency would expend additional moneys to enhance the commute trip reduction program. The report would include recommendations for grant programs for employers and jurisdictions to reduce SOV usage and to provide transit incentives to meet future commute trip reduction requirements. The report is due to the legislative transportation committee by January 1, 1998.

          (9) In addition to the appropriations contained in this section, the office of financial management shall release the $2,000,000 transportation fund--state funds appropriated for the intercity rail passenger program in the 1995-97 biennium but held in reserve pursuant to section 502, chapter 165, Laws of 1996.

          NEW SECTION. Sec. 228. FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  8,053,000

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $              273,726,000

          Motor Vehicle Fund--Private/Local Appropriation. .                                                $                      5,000,000

          High Capacity Transportation Account--State Appropriation. . . . . . . . . . . . . . . . .     $                     500,000

                            TOTAL APPROPRIATION. . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $              287,279,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) The motor vehicle fund--state appropriation includes $1,785,000 in proceeds from the sale of bonds authorized by RCW 47.10.819(1). The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

          (2) As a condition of receiving the full state subsidy in support of the Puget Island ferry, Wahkiakum county must, by December 31, 1997, increase ferry fares for passengers and vehicles by at least ten percent. If the fares are not increased to meet this requirement, the department, in determining the state subsidy after December 31, 1997, shall reduce the operating deficit by the amount that would have been generated if the ten percent fare increase had been implemented.

          (3) If Substitute House Bill No. 1010 is enacted by June 30, 1997, $240,000,000 of the motor vehicle fund--federal appropriation and $5,000,000 of the motor vehicle fund--private/local appropriation shall lapse and $399,000 is appropriated from the motor vehicle fund--state appropriation to pay for operating and maintenance costs for the Wahkiakum county ferry.

          (4) The appropriations in this section contain $1,750,000 reappropriated from the 1995-97 biennium.

          (5) Up to $500,000 of the high capacity transportation account--state appropriation is provided for implementation of the recommendations of the freight mobility advisory committee, and any legislation enacted resulting from those recommendations.

PART III

TRANSPORTATION AGENCIES CAPITAL FACILITIES

          NEW SECTION. Sec. 301. (1) The state patrol, the department of licensing, and the department of transportation shall coordinate their activities when siting facilities. This coordination shall result in the collocation of driver and vehicle licensing, vehicle inspection service facilities, and other transportation services whenever possible.

          The department of licensing, the department of transportation, and the state patrol shall explore alternative state services, such as vehicle emission testing, that would be feasible to collocate in these joint facilities. All services provided at these transportation service facilities shall be provided at cost to the participating agencies.

          (2) The department of licensing may lease develop with option to purchase or lease purchase new customer service centers to be paid for from operating revenues. The Washington state patrol shall provide project management for the department of licensing. Alternatively, a financing contract may be entered into on behalf of the department of licensing in the amounts indicated plus financing expenses and reserves pursuant to chapter 39.94 RCW. The locations and amounts for projects covered under this section are as follows:

          (a) A new customer service center in Vancouver for $3,709,900;

          (b) A new customer service center in Thurston county for $4,641,200; and

          (c) A new customer service center in Union Gap for $3,642,000.

          (3) The Washington state patrol, department of licensing, and department of transportation shall provide monthly progress reports with the transportation executive information system on the capital facilities receiving an appropriation in this act.

          NEW SECTION. Sec. 302. FOR THE WASHINGTON STATE PATROL--CAPITAL PROJECTS

          Motor Vehicle Fund--State Patrol Highway Account--State Appropriation. . . . . . .    $                  5,375,000

                            The appropriation in this section is subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1) This appropriation is provided for the microwave migration, weigh station facilities identified in the budget notes, training academy HVAC system, and regular facilities maintenance.

          (2) The Washington state patrol, based on an independent real estate appraisal, is authorized to purchase the Port Angeles detachment office for a maximum of $600,000 provided the appraisal is $600,000 or above in value. If the appraisal is less than $600,000, the Washington state patrol is authorized to purchase the building for the appraised value. Certificates of participation will be used for financing the cost of the building and related financing fees.

          NEW SECTION. Sec. 303. FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

          Motor Vehicle Fund--Transportation Capital Facilities Account--State Approp. . .    $                  7,998,000

          (1) The department of transportation shall provide to the legislative transportation committee prior notice and the latest project information at least two weeks in advance of the bid process for transportation capital facilities projects going to bid in the 1997-99 biennium.

          (2) Construction of the Mount Rainier storage facility shall not commence until the department has secured an operational lease that would allow the placement of the facility on United States forest service lands near the entrance to the Mather memorial parkway.

          (3) The appropriations in this section contain $7,719,000 reappropriated from the 1995-97 biennium.

PART IV

TRANSFERS AND DISTRIBUTIONS

          NEW SECTION. Sec. 401. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE FUND AND TRANSPORTATION FUND REVENUE

          Highway Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .     $              195,062,000

          Ferry Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                49,606,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $              244,668,000

          NEW SECTION. Sec. 402. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

          Motor Vehicle Fund--Puget Sound Capital Construction Acct Appropriation. . . . .    $                     500,000

          Motor Vehicle Fund Appropriation. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     130,000

          Transportation Improvement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . .    $                     200,000

          Special Category C Account Appropriation.. . . . . . .                                                $                         350,000

          Transportation Capital Facilities Account Appropriation. . . . . . . . . . . . . . . . . . . . .    $                         1,000

          Urban Arterial Account Appropriation. . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                         5,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $                  1,186,000

          NEW SECTION. Sec. 403. FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

          City Hardship Account Appropriation. . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                     200,000

          Motor Vehicle Fund Appropriation for motor vehicle fuel tax

                            & overload penalties distribution             . . . . . . . . . . . . . . . . . . . . . . . .     $              475,267,000

          Transportation Fund Appropriation. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  3,119,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $              478,586,000

          NEW SECTION. Sec. 404. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--TRANSFERS

          Motor Vehicle Fund--State Patrol Highway Account:

                            For transfer to the department of retirement systems expense fund. . . .    $                     117,000

          NEW SECTION. Sec. 405. STATUTORY APPROPRIATIONS. In addition to the amounts appropriated in this act for revenue for distribution, state contributions to the law enforcement officers' and fire fighters' retirement system, and bond retirement and interest including ongoing bond registration and transfer charges, transfers, interest on registered warrants, and certificates of indebtedness, there is also appropriated such further amounts as may be required or available for these purposes under any statutory formula or under any proper bond covenant made under law.

          NEW SECTION. Sec. 406. The department of transportation is authorized to undertake federal advance construction projects under the provisions of 23 U.S.C. Sec. 115 in order to maintain progress in meeting approved highway construction and preservation objectives. The legislature recognizes that the use of state funds may be required to temporarily fund expenditures of the federal appropriations for the highway construction and preservation programs for federal advance construction projects prior to conversion to federal funding.

          NEW SECTION. Sec. 407. FOR THE STATE TREASURER--TRANSFERS

(1) R V Account--State Appropriation:

                            For transfer to the Motor Vehicle Fund--State. . . . . . . . . . . . . . . . . . . .     $                  1,173,000

(2) Motor Vehicle Fund--State Appropriation:

                            For transfer to the Transportation Capital Facilities Account--State. . .     $                47,569,000

(3) Small City Account--State Appropriation:

                            For transfer to the Urban Arterial Trust Account--State. . . . . . . . . . . . .    $                  3,359,000

(4) Small City Account--State Appropriation:

                            For transfer to the Transportation Improvement Account--State. . . . . .     $                  7,500,000

          NEW SECTION. Sec. 408. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFER

          Motor Vehicle Fund--State Appropriation

                            For transfer to the Transportation Equipment Fund--State Appropriation $                       500,000

          The appropriation transfer in this section is provided for the purchase of equipment for the highway maintenance program from the transportation equipment fund - operations.

          NEW SECTION. Sec. 409. The motor vehicle account revenues are received at a relatively even flow throughout the year. Expenditures may exceed the revenue during the accelerated summer and fall highway construction season, creating a negative cash balance during the heavy construction season. Negative cash balances also may result from the use of state funds to finance federal advance construction projects prior to conversion to federal funding. The governor and the legislature recognize that the department of transportation may require interfund loans or other short-term financing to meet temporary seasonal cash requirements and additional cash requirements to fund federal advance construction projects.

          NEW SECTION. Sec. 410. In addition to such other appropriations as are made by this act, there is appropriated to the department of transportation from legally available bond proceeds in the respective transportation funds and accounts such amounts as are necessary to pay the expenses incurred by the state finance committee in the issuance and sale of the subject bonds.

          NEW SECTION. Sec. 411. EXPENDITURE AUTHORIZATIONS. The appropriations contained in this act are maximum expenditure authorizations. Pursuant to RCW 43.88.037, moneys disbursed from the treasury on the basis of a formal loan agreement shall be recorded as loans receivable and not as expenditures for accounting purposes. To the extent that moneys are disbursed on a loan basis, the corresponding appropriation shall be reduced by the amount of loan moneys disbursed from the treasury during the 1997-99 biennium.

          NEW SECTION. Sec. 412. FOR THE GOVERNOR--COMPENSATION--SALARY AND INSURANCE INCREASE REVOLVING ACCOUNT

          Motor Vehicle Fund--State Patrol Highway Account Appropriation. . . . . . . . . . . .    $                  4,829,000

          Motor Vehicle Fund Appropriation. . . . . . .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  7,274,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $                12,103,000

          The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for that activity:

          (1)(a) Commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol shall receive a six percent salary increase on July 1, 1997.

          (b) Commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol shall receive an additional six percent salary increase on July 1, 1998.

          (2) The salary increases provided for in subsection (1) of this section supersede any salary increases provided for in the omnibus operating budget, for commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol. The appropriation in this section is not in addition to the salary increases provided for in the omnibus operating budget; therefore, the appropriations for the state patrol highway account in this section shall be reduced by any amount provided for commissioned officers, commercial vehicle enforcement officers, and communication officers of the state patrol in the omnibus operating budget.

          (3) The salary increases in subsection (1) of this section do not apply to the commissioned positions of chief, assistant chief, or commanders. The salaries for these positions are set by the personnel board or chief of the Washington state patrol.

          (4) The additional pay increase, above the increase provided for in the omnibus operating budget, is contingent upon funding by the general fund for general fund activities paid for by transportation funds in the 1993-95 and 1995-97 biennia.

          NEW SECTION. Sec. 413. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSFERS

Motor Vehicle Fund--Puget Sound Ferry Operations Account--State Appropriation:

           For transfer to the Motor Vehicle Fund--Puget Sound Capital Const Acct . . . . . .     $                50,000,000

          This transfer is intended to be an interfund loan between the two accounts with the obligation of repayment in future biennia. This appropriation is subject to the following conditions and limitations: If funds are not appropriated for a fourth Jumbo Mark II ferry or House Bill No. 2108, authorizing the department to procure the vessel utilizing existing construction and equipment acquisition contracts, is not enacted during the 1997 legislative session, this section is null and void.

PART V

MISCELLANEOUS

A. INFORMATION TECHNOLOGY

          NEW SECTION. Sec. 501. To maximize the use of transportation revenues, it is the intent of the legislature to encourage sharing of technology, information, and systems where appropriate between transportation agencies.

          To facilitate this exchange, the Washington state department of transportation assistant secretary for finance and budget management; Washington state department of transportation chief for management information systems; the Washington state patrol deputy chief, inter-governmental services bureau; Washington state patrol manager of the computer services division; the department of licensing deputy director and department of licensing assistant director for information systems will meet quarterly to share plans, discuss progress of key projects, and to coordinate activities for the common good. Minutes of these meetings will be distributed to the respective agency heads, the office of financial management and the legislative transportation committee. Washington state department of transportation will provide staff support and meeting coordination.

          NEW SECTION. Sec. 502. Agencies shall comply with the following requirements regarding information systems projects when specifically directed to do so by this act.

          (1) The agency shall produce a feasibility study for each information systems project in accordance with published department of information services instructions. In addition to department of information services requirements, the study shall examine and evaluate the costs and benefits of maintaining the status quo and the costs and benefits of the proposed project. The study shall identify when and in what amount any fiscal savings will accrue, and what programs or fund sources will be affected.

          (2) The agency shall produce a project management plan for each project. The plan or plans shall address all factors critical to successful completion of each project. The plan shall include, but is not limited to, the following elements: A description of the business problem or opportunity that the information systems project is intended to address; a statement of project objectives and assumptions; definition of phases, tasks, and activities to be accomplished and the estimated cost of each phase; a description of how the agency will facilitate responsibilities of oversight agencies; a description of key decision points in the project life cycle; a description of variance control measures; a definitive schedule that shows the elapsed time estimated to complete the project and when each task is to be started and completed; and a description of resource requirements to accomplish the activities within specified time, cost, and functionality constraints.

          (3) A copy of each feasibility study and project management plan shall be provided to the department of information services, the office of financial management, and legislative transportation committee. Authority to expend any funds for individual information systems projects is conditioned on approval of the relevant feasibility study and project management plan by the department of information services and the office of financial management.

          (4) A bimonthly project status report shall be submitted to the department of information services, the office of financial management, and legislative transportation committee for each project prior to reaching key decision points identified in the project management plan. Project status reports include: Project name, agency undertaking the project, a description of the project, key project activities or accomplishments during the next sixty to ninety days, baseline cost data, costs to date, baseline schedule, schedule to date, risk assessments, risk management, any deviations from the project feasibility study, and recommendations.

          Work shall not commence on any task in a subsequent phase of a project until the status report for the preceding key decision point has been approved by the department of information services and the office of financial management.

          (5) If a project review is requested in accordance with department of information services policies, the reviews shall examine and evaluate: System requirements specifications; scope; system architecture; change controls; documentation; user involvement; training; availability and capability of resources; programming languages and techniques; system inputs and outputs; plans for testing, conversion, implementation, and post-implementation; and other aspects critical to successful construction, integration, and implementation of automated systems. Copies of project review written reports shall be forwarded to the office of financial management and appropriate legislative committees by the agency.

          (6) A written post-implementation review report shall be prepared by the agency for each information systems project in accordance with published department of information services instructions. In addition to the information requested pursuant to the department of information services instructions, the post-implementation report shall evaluate the degree to which a project accomplished its major objectives including, but not limited to, a comparison of original cost and benefit estimates to actual costs and benefits achieved. Copies of the post-implementation review report shall be provided to the department of information services, the office of financial management, and legislative transportation committee.

          NEW SECTION. Sec. 503. Any new automation projects must be reviewed and approved by the department of information services and then by the office of financial management prior to transportation funding being approved. If changes in an automation project are made or recommended by the office of financial management, including appropriation amounts, then the department of information services must review and approve the changes prior to transportation funding being approved.

          NEW SECTION. Sec. 504. Appropriations for the year 2000 conversions for transportation agencies will be used solely for modifications of information systems that have been approved and recommended by the department of information services. A progress report will be presented to the legislature by the department of information services in January 1998, with completion of the year 2000 conversion by January 31, 1999. Any savings realized from the conversion process will revert on June 30, 1999, back to the respective funds from which funding was appropriated.

B. EMERGENCY RELIEF

          NEW SECTION. Sec. 505. FOR THE DEPARTMENT OF TRANSPORTATION--EMERGENCY RELIEF

          Motor Vehicle Fund--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     $                  3,000,000

          The appropriation in this section is subject to the following conditions and limitations: This appropriation is to be placed in reserve status for emergency relief in the event of a disaster where federal emergency relief funds have become available. The transportation commission in consultation with the legislative transportation committee may request the office of financial management to transfer the appropriation authority from reserve to active status.

          NEW SECTION. Sec. 506. The appropriations contained in sections 203 and 204 of this act include funding to assist cities and counties in providing match for federal emergency funding for winter storm and flood damage as determined by the county road administration board and the transportation improvement board. The county road administration board and the transportation improvement board will report to the legislative transportation committee and the office of financial management by September 30 of each year on the projects selected to receive match funding.

C. BUDGET SUBMITTAL AND OVERSIGHT PROVISIONS

          NEW SECTION. Sec. 507. Any agency requesting transportation funding must submit to the legislative transportation committees the same request and supporting documents presented to the office of financial management at agency budget submittal time.

          NEW SECTION. Sec. 508. In addition to information required under section 607 of this act, agencies shall include their strategic plans and an explanation of how the budget submittals and the investment choices and recommended associated service levels are linked to the strategic plan.

          NEW SECTION. Sec. 509. Transportation agencies are required to provide fund balances and financial, workload, and performance measurement data in the transportation executive information system on a schedule agreed to by the legislative transportation committee.

          NEW SECTION. Sec. 510. The appropriations of moneys and the designation of funds and accounts by this and other acts of the 1997 legislature shall be construed in a manner consistent with legislation enacted by the 1985, 1987, 1989, 1991, 1993, and 1995 legislatures to conform state funds and accounts with generally accepted accounting principles.

D. BILLS NECESSARY TO IMPLEMENT THIS ACT

          NEW SECTION. Sec. 511. The following bills are necessary to implement portions of this act: Engrossed Substitute House Bill No. 1101, Substitute House Bill No. 1427, House Bill No. 1487, House Bill No. 1786, House Bill No. 2166, House Bill No. 2180, House Bill No. 2237, House Bill No. 2108 or Senate Bill No. 5955, House Bill No. 1501, and House Bill No. 1513.

E. MISCELLANEOUS

          NEW SECTION. Sec. 512. If Substitute House Bill No. 2237 is not enacted, or is enacted without a provision allowing the department to obtain fair and reasonable compensation, by June 30, 1997, the appropriations to the department of transportation in this act may only be used by the department to grant rights of occupancy to a telecommunications carrier only to the extent authorized by existing law, including but not limited to chapters 47.12, 47.44, and 47.52 RCW. However, the authority of the department to install telecommunications facilities solely for public transportation purposes is not limited.

          Sec. 513. RCW 47.78.010 and 1991 sp.s. c 13 ss 66, 121 are each amended to read as follows:

          There is hereby established in the state treasury the high capacity transportation account. Money in the account shall be used, after appropriation, for local high capacity transportation purposes including rail freight, activities associated with freight mobility, and commute trip reduction activities.

          NEW SECTION. Sec. 514. Section 513 of this act expires June 30, 1999.

          NEW SECTION. Sec. 515. FOR THE DEPARTMENT OF TRANSPORTATION--RESERVE STATUS

          Motor Vehicle Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                71,000,000

          Transportation Fund--State Appropriation. .. . . . . . .. . . . . . . . . . . . . . . . . . . . . . . .     $                  4,000,000

                                         TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . .     $                75,000,000

          The appropriations in this section are subject to the following conditions and limitations and the entire amount is provided solely for placement in reserve status: The entire amount is to be placed in reserve status for potential funding of transportation program services following the performance audits to be performed on the department of transportation, department of licensing, and the Washington state patrol. In addition, any transfers from the general fund to any transportation account shall also be placed in reserve status.

PART VI

LEGISLATIVE DECLARATIONS

          NEW SECTION. Sec. 601. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

          NEW SECTION. Sec. 602. 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.

          Representative K. Schmidt moved the adoption of the following amendment (645) to the striking amendment (649):

          On page 13, line 1 of the amendment, after "activity:" insert "(1)"

          On page 13, after line 4 of the amendment, insert the following:

          "(2) The commission is directed to continue efforts to identify cost savings and efficiencies for the department of transportation. These efficiencies may include contracting out or privatizing of appropriate services."

          Representatives K. Schmidt, Fisher and Robertson spoke in favor of the adoption of the amendment.

          Representative Conway spoke against the adoption of the amendment.

          The amendment was adopted.

          Representative K. Schmidt moved the adoption of the following amendment (645) to the striking amendment (649):

          On page 20, after line 11 of the amendment, insert the following:

          "(9) The motor vehicle fund--state appropriation in this section includes $150,000 to establish a wetland mitigation pilot project. This appropriation may only be expended if the department of transportation establishes a technical committee to better implement the department's strategic plan. The technical committee shall include, but is not limited to, cities, counties, environmental groups, business groups, tribes, the Puget Sound action team, and the state departments of ecology, fish and wildlife, and community, trade, and economic development, and appropriate federal agencies. The committee shall assist the department in implementing its wetland strategic plan, including working to eliminate barriers to improved wetland and watershed management. To this end, the technical committee shall: (a) Work to facilitate sharing of agency environmental data, including evaluation of off-site and out-of-kind mitigation options; (b) develop agreed-upon guidance that will enable the preservation of wetlands that are under imminent threat from development for use as an acceptable mitigation option; (c) develop strategies that will facilitate the implementation of mitigation banking, including developing mechanisms for valuing and transferring credits; (d) provide input in the development of wetland functions assessment protocols related to transportation projects; (e) develop incentives for interagency participation in joint mitigation projects within watersheds; and (f) explore options for funding environmental mitigation strategies. The department shall prepare an annual report to the legislative transportation committee and legislative natural resources committees on recommendations developed by the technical committee."

          Representative K. Schmidt spoke in favor of the adoption of the amendment. The amendment was adopted.

          Representative Bush moved the adoption of the following amendment (630) to the amendment (649) by Representative K. Schmidt:

          On page 30, after line 32 of the amendment, insert the following:

          "(10) Up to $50,000 from the high capacity transportation account--state appropriation is provided for reestablishing the southern service area boundary of the central Puget Sound regional transit authority in Pierce county by September 1, 1997, as stated below:

          (a) In the area west of Interstate 5, east of Puget Sound and south of the city of Steilacoom, all federal land and the city of Dupont shall be removed from the central Puget Sound regional transit authority area boundary.

          (b) In the area east of Interstate 5 and south of 112th Street East, all area currently within the central Puget Sound regional transit authority shall be removed from the authority area boundary.

All persons residing within the service area removed from the boundaries of the regional transit authority who have paid the motor vehicle excise tax levied by the regional transit authority as authorized by RCW 81.104.160 shall be issued a refund."

          On page 44, after line 11 of the amendment, insert the following:

          "Sec. 516. RCW 81.112.050 and 1992 c 101 s 5 are each amended to read as follows:

          (1) At the time of formation, the area to be included within the boundary of the authority shall be that area set forth in the system plan adopted by the joint regional policy committee. Prior to submitting the system and financing plan to the voters, the authority may make adjustments to the boundaries as deemed appropriate but must assure that, to the extent possible, the boundaries: (a) Include the largest-population urban growth area designated by each county under chapter 36.70A RCW; and (b) follow election precinct boundaries. If a portion of any city is determined to be within the service area, the entire city must be included within the boundaries of the authority.

          (2) After voters within the authority boundaries have approved the system and financing plan, elections to add areas contiguous to the authority boundaries may be called by resolution of the regional transit authority, after consultation with affected transit agencies and with the concurrence of the legislative authority of the city or town if the area is incorporated, or with the concurrence of the county legislative authority if the area is unincorporated. Only those areas that would benefit from the services provided by the authority may be included and services or projects proposed for the area must be consistent with the regional transportation plan. The election may include a single ballot proposition providing for annexation to the authority boundaries and imposition of the taxes at rates already imposed within the authority boundaries.

          (3) The southern area boundary of the central Puget Sound regional transit authority shall be adjusted as provided for in section 227, chapter . . . (H-3272/97), Laws of 1997."

          Representatives Bush and Smith spoke in favor of the adoption of the amendment.

          Representatives Kastama, Fisher and Conway spoke against the adoption of the amendment. The amendment was not adopted.

          Representative Romero moved the adoption of the following amendment (646) to the striking amendment (649):

          On page 20, line 32 of the amendment, strike "225,274,000" and insert "228,474,000"

          On page 20, line 35 of the amendment, strike "229,040,000" and insert "232,240,000"

          On page 21, after line 26 of the amendment, insert the following:

          "(4) The motor vehicle fund--state appropriation includes $7,300,000 provided solely for litter pickup on state highways."

          Representative Romero spoke in favor of the adoption of the amendment.

          Representative Chandler spoke against the adoption of the amendment. The amendment was not adopted.

          The question before the House was the adoption of striking amendment 649 as amended. The amendment was adopted.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives K. Schmidt, Zellinsky, Mitchell and Backlund spoke in favor of passage of the bill.

          Representatives Fisher, O'Brien and Hatfield spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 6061 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 6061 as amended by the House, and the bill passed the House by the following vote: Yeas - 65, Nays - 32, Absent - 0, Excused - 1.

          Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Cooper, Costa, Crouse, Delvin, Doumit, Dunn, Dyer, Gombosky, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Keiser, Koster, Lambert, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Mulliken, Parlette, Pennington, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Wood, Zellinsky and Mr. Speaker - 65.

          Voting nay: Representatives Anderson, Appelwick, Butler, Chopp, Cody, Cole, Constantine, Conway, Dickerson, Dunshee, Fisher, Gardner, Grant, Kastama, Kenney, Kessler, Lantz, Linville, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Quall, Regala, Romero, Sommers, H., Sullivan, Tokuda, Veloria and Wolfe - 32.

          Excused: Representative DeBolt - 1.

          Engrossed Substitute Senate Bill No. 6061, as amended by the House, having received the constitutional majority, was declared passed.

          HOUSE BILL NO. 2069, by Representatives Wensman, Cole, Bush, H. Sommers, Benson, D. Schmidt, L. Thomas, Dyer, B. Thomas, Reams, Doumit, Ballasiotes, Alexander, Hatfield, Lantz, Sullivan, Thompson, Kessler and Butler

Changing school levy provisions.

          The bill was read the second time. There being no objection, the Substitute House Bill No. 2069 was substituted for House Bill No. 2069, the substitute bill was placed on the second reading calendar.

          Substitute House Bill No. 2069 was read the second time.

          There being no objection, the House deferred consideration of Substitute House Bill No. 2069 and the bill held it's place on the second reading calendar.

          SENATE BILL NO. 5402, by Senators Roach, Johnson, Sheldon, Bauer, Patterson and Haugen

Providing tax exemptions for nonprofit camps and conferences.

          The bill was read the second time.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives B. Thomas and Dunshee spoke in favor of passage of the bill.

          The Speaker stated the question before the House to be final passage of Senate Bill No. 5402.

ROLL CALL

          The Clerk called the roll on the final passage of Senate Bill No. 5402 and the bill passed the House by the following vote: Yeas - 95, Nays - 2, Absent - 0, Excused - 1.

          Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 95.

          Voting nay: Representatives Dickerson and Mason - 2.

          Excused: Representative DeBolt - 1.

          Senate Bill No. 5402, having received the constitutional majority, was declared passed.

          ENGROSSED SENATE BILL NO. 5850, by Senators Anderson, Newhouse, Haugen and Horn

Changing provisions related to employment in the construction industry.

          The bill was read the second time.

          There being no objection, the committee amendment by the Committee on Commerce and Labor was before the House for purposes of amendments. (For committee amendments, see Journal, 82^nd Day, April 4, 1997.)

          The Speaker called upon Representative Pennington to preside.

          Representative Romero moved the adoption of the following amendment (648) to the committee amendment.

          On page 2, after line 35 of the amendment, insert the following:

          "NEW SECTION. Sec. 3. A new section is added to chapter 51.16 RCW to read as follows:

          A group retrospective rating plan agreement between the department and a retrospective rating plan group covering employers in the construction industry must include in the agreement:

          (1) The method by which funds received by the sponsoring organization or association as group retrospective premium adjustments will be distributed to employer members; and

          (2) A requirement for a financial statement of the retrospective rating plan group to be distributed annually to each employer member of the group. At a minimum, the financial statement must include a report on the amount and distribution of group retrospective premium adjustment funds, including the amounts distributed to employer members, the amount retained by the sponsoring organization or association for administration of the group retrospective rating program, and the purposes for which any remaining amounts were spent."

          Renumber the sections consecutively and correct internal references accordingly.

          Representatives Romero, Conway and Dunshee spoke in favor of the adoption of the amendment.

          Representative McMorris spoke against the adoption of the amendment.

          Division was demanded. The Speaker divided the House. The results of the division was 41-YEAS; 61-NAYS. The amendment was not adopted.

          The Speaker assumed the chair.

          The question before the House was the adoption of the committee amendment. The committee amendment was adopted.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives Lisk, McMorris, Clements, Dyer and Dyer spoke in favor of passage of the bill.

          Representatives Wood, Keiser, Conway, Appelwick, Keiser, Costa, Cooper, Constantine, Mason, Conway and Kenney spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Engrossed Senate Bill No. 5850 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5850 as amended by the House, and the bill passed the House by the following vote: Yeas - 50, Nays - 47, Absent - 0, Excused - 1.

          Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Cooke, Crouse, Delvin, Dunn, Dyer, Hankins, Honeyford, Huff, Johnson, Koster, Lambert, Lisk, McDonald, McMorris, Mielke, Mitchell, Mulliken, Pennington, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Sommers, D., Sterk, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 50.

          Voting nay: Representatives Anderson, Appelwick, Blalock, Butler, Carlson, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Grant, Hatfield, Hickel, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Mastin, Morris, Murray, O'Brien, Ogden, Parlette, Poulsen, Quall, Radcliff, Regala, Romero, Scott, Smith, Sommers, H., Sullivan, Tokuda, Veloria, Wolfe and Wood - 47.

          Excused: Representative DeBolt - 1.

          Engrossed Senate Bill No. 5850, as amended by the House, having received the constitutional majority, was declared passed.

          SUBSTITUTE SENATE BILL NO. 5749, by Senate Committee on Commerce & Labor (originally sponsored by Senators Heavey, McCaslin, Winsley, Haugen and Deccio)

Providing for a certificate of competency as a medical gas piping installer.

          The bill was read the second time.

          There being no objection, the committee amendment by the Committee on Commerce & Labor was adopted. (For committee amendments, see Journal, 82^nd Day, April 4, 1997.)

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives McMorris and Cody spoke in favor of passage of the bill.

          The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5749 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Substitute Senate Bill No. 5749 as amended by the House, and the bill passed the House by the following vote: Yeas - 88, Nays - 9, Absent - 0, Excused - 1.

          Voting yea: Representatives Alexander, Anderson, Appelwick, Ballasiotes, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Delvin, Dickerson, Doumit, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Skinner, Smith, Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 88.

          Voting nay: Representatives Backlund, Benson, Crouse, Dunn, Honeyford, Koster, Mielke, Sherstad and Sommers, D. - 9.

          Excused: Representative DeBolt - 1.

          Substitute Senate Bill No. 5749, as amended by the House, having received the constitutional majority, was declared passed.

STATEMENT FOR THE JOURNAL

          I intended to vote NAY on Engrossed Senate Bill No. 5749.

BOB SUMP, 7^th District

          ENGROSSED SENATE BILL NO. 5915, by Senators Anderson, Hale, Bauer and Stevens

Allowing counties planning under the growth management act to establish industrial land banks as permissable urban growth outside of an urban growth area.

          The bill was read the second time.

          Representative Cairnes moved the adoption of the following amendment by Representative Cairnes: (644)

          Strike everything after the enacting clause and insert the following:

          "Sec. 1. RCW 36.70A.367 and 1996 c 167 s 2 are each amended to read as follows:

          (1) In addition to the major industrial development allowed under RCW 36.70A.365, a county required or choosing to plan under RCW 36.70A.040 that has a population greater than two hundred fifty thousand and that is part of a metropolitan area that includes a city in another state with a population greater than two hundred fifty thousand or a county that has a population greater than one hundred forty thousand and is adjacent to another country may establish, in consultation with cities consistent with provisions of RCW 36.70A.210, a process for designating a bank of no more than two master planned locations for major industrial activity outside urban growth areas.

          (2) A master planned location for major industrial developments outside an urban growth area may be included in the urban industrial land bank for the county if criteria including, but not limited to, the following are met:

          (a) New infrastructure is provided for and/or applicable impact fees are paid;

          (b) Transit-oriented site planning and traffic demand management programs are implemented;

          (c) Buffers are provided between the major industrial development and adjacent nonurban areas;

          (d) Environmental protection including air and water quality has been addressed and provided for;

          (e) Development regulations are established to ensure that urban growth will not occur in adjacent nonurban areas;

          (f) Provision is made to mitigate adverse impacts on designated agricultural lands, forest lands, and mineral resource lands;

          (g) The plan for the major industrial development is consistent with the county's development regulations established for protection of critical areas; and

          (h) An inventory of developable land has been conducted as provided in RCW 36.70A.365.

          (3) In selecting master planned locations for inclusion in the urban industrial land bank, priority shall be given to locations that are adjacent to, or in close proximity to, an urban growth area.

          (4) Final approval of inclusion of a master planned location in the urban industrial land bank shall be considered an adopted amendment to the comprehensive plan adopted pursuant to RCW 36.70A.070, except that RCW 36.70A.130(2) does not apply so that inclusion or exclusion of master planned locations may be considered at any time.

          (5) Once a master planned location has been included in the urban industrial land bank, manufacturing and industrial businesses that qualify as major industrial development under RCW 36.70A.365 may be located there.

          (6) Nothing in this section may be construed to alter the requirements for a county to comply with chapter 43.21C RCW.

          (7) The authority of a county to engage in the process of including or excluding master planned locations from the urban industrial land bank shall terminate on December 31, 1998. However, any location included in the urban industrial land bank on December 31, 1998, shall remain available for major industrial development as long as the criteria of subsection (2) of this section continue to be met.

          (8) For the purposes of this section, "major industrial development" means a master planned location suitable for manufacturing or industrial businesses that: (a) Requires a parcel of land so large that no suitable parcels are available within an urban growth area; or (b) is a natural resource-based industry requiring a location near agricultural land, forest land, or mineral resource land upon which it is dependent((.)) ; or (c) requires a location with characteristics such as proximity to transportation facilities or related industries such that there is no suitable location in a urban growth area. The major industrial development may not be for the purpose of retail commercial development or multitenant office parks."

          Representatives Cairnes and Gardner spoke in favor of the adoption of the amendment. The amendment was adopted.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representative Reams spoke in favor of passage of the bill.

          The Speaker stated the question before the House to be final passage of Engrossed Senate Bill No. 5915 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5915 as amended by the House, and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

          Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Crouse, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 96.

          Excused: Representatives DeBolt and Schmidt, K. - 2.

          Engrossed Senate Bill No. 5915, as amended by the House, having received the constitutional majority, was declared passed.

          SENATE BILL NO. 5651, by Senators Anderson, Newhouse, Schow, Horn and Oke

Restricting actions against employers under industrial insurance.

          The bill was read the second time.

          There being no objection, the committee amendment by the Committee on Commerce & Labor was adopted. (For committee amendments, see Journal, 82^nd Day, April 4, 1997.)

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives McMorris, Clements, Dyer, Clements and Lisk spoke in favor of passage of the bill.

          Representatives Wood, Cole, Conway, Cooper, Constantine, Appelwick, Keiser, Constantine, Mastin and Conway spoke against passage of the bill.

          Representatives Constantine and Conway again spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Senate Bill No. 5651 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Senate Bill No. 5651 as amended by the House, and the bill failed to passed the House by the following vote: Yeas - 47, Nays - 49, Absent - 0, Excused - 2.

          Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, Delvin, Dunn, Dyer, Hankins, Honeyford, Huff, Johnson, Koster, Lambert, Lisk, McMorris, Mielke, Mulliken, Parlette, Radcliff, Reams, Robertson, Schmidt, D., Schoesler, Sehlin, Sheahan, Sherstad, Skinner, Smith, Sommers, D., Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 47.

          Voting nay: Representatives Anderson, Appelwick, Blalock, Butler, Cairnes, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Grant, Hatfield, Hickel, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Mason, Mastin, McDonald, Mitchell, Morris, Murray, O'Brien, Ogden, Pennington, Poulsen, Quall, Regala, Romero, Scott, Sheldon, Sommers, H., Sterk, Sullivan, Tokuda, Veloria, Wolfe and Wood - 49.

          Excused: Representatives DeBolt and Schmidt, K. - 2.

          Senate Bill No. 5651, as amended by the House, having not received the constitutional majority, was declared failed.

          SUBSTITUTE SENATE BILL NO. 5104, by Senate Committee on Ways & Means (originally sponsored by Senators Oke, Loveland, Hale, Morton, Swecker, Rossi, Snyder, West, Bauer, Haugen and Rasmussen)

Creating the Washington pheasant enhancement program.

          The bill was read the second time.

          Representative Schoesler moved the adoption of the following amendment by Representative Schoesler: (624)

          Strike everything after the enacting clause and insert the following:

          "NEW SECTION. Sec. 1. The legislature finds that pheasant populations in eastern Washington have greatly decreased from their historic high levels and that pheasant hunting success rates have plummeted. The number of pheasant hunters has decreased due to reduced hunting success. There is an opportunity to enhance the pheasant population by release of pen-reared pheasants and habitat enhancements to create increased hunting opportunities on publicly owned and managed lands.

          NEW SECTION. Sec. 2. There is created within the department the eastern Washington pheasant enhancement program. The purpose of the program is to improve the harvest of pheasants by releasing pen-reared rooster pheasants on sites accessible for public hunting and by providing grants for habitat enhancement on public or private lands under agreement with the department. The department may either purchase rooster pheasants from private contractors, or produce rooster pheasants from department-sanctioned cooperative projects, whichever is less expensive, provided that the pheasants released meet minimum department standards for health and maturity. Any surplus hen pheasants from pheasant farms or projects operated by the department or the department of corrections for this enhancement program shall be made available to landowners who voluntarily open their lands to public pheasant hunting. Pheasants produced for the eastern Washington pheasant enhancement program must not detrimentally affect the production or operation of the department's western Washington pheasant release program. The release of pheasants for hunting purposes must not conflict with or supplant other department efforts to improve upland bird habitat or naturally produced upland birds.

          NEW SECTION. Sec. 3. The commission must establish special pheasant hunting opportunities for juvenile hunters in eastern Washington for the 1998 season and future seasons.

          NEW SECTION. Sec. 4. Beginning September 1, 1997, a person who hunts for pheasant in eastern Washington must pay an annual surcharge of ten dollars, in addition to other licensing requirements. Funds from the surcharge must be deposited in the eastern Washington pheasant enhancement account created in section 5 of this act.

          NEW SECTION. Sec. 5. The eastern Washington pheasant enhancement account is created in the custody of the state treasurer. All receipts under section 4 of this act must be deposited in the account. Moneys in the account are subject to legislative appropriation and shall be used for the purpose of funding the eastern Washington pheasant enhancement program. The department may use moneys from the account to improve pheasant habitat or to purchase or produce pheasants. Not less than eighty percent of expenditures from the account must be used to purchase or produce pheasants. The eastern Washington pheasant enhancement account funds must not be used for the purchase of land. The account may be used to offer grants to improve pheasant habitat on public or private lands that are open to public hunting. The department may enter partnerships with private landowners, nonprofit corporations, cooperative groups, and federal or state agencies for the purposes of pheasant habitat enhancement in areas that will be available for public hunting.

          NEW SECTION. Sec. 6. The department of fish and wildlife must jointly investigate with the department of corrections the feasibility of producing pheasants for the eastern Washington pheasant enhancement program utilizing inmate labor and facilities at the Walla Walla state penitentiary or other eastern Washington state correctional facilities. The investigation must include a comparison of the costs of producing pheasants at a correctional facility versus the costs of purchasing pheasants for this enhancement program. The two departments must report their findings to the senate and house of representatives natural resources committees on or before January 1, 1998.

          NEW SECTION. Sec. 7. Sections 2 through 5 of this act are each added to chapter 77.12 RCW."

          Representative Schoesler spoke in favor of the adoption of the amendment. The amendment was adopted.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives Buck and Butler spoke in favor of passage of the bill.

MOTION

          On motion by Representative Talcott, Representative Chandler was excused.

          The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5104 as amended by the House.

ROLL CALL

          The Clerk called the roll on the final passage of Substitute Senate Bill No. 5104 as amended by the House, and the bill passed the House by the following vote: Yeas - 61, Nays - 34, Absent - 0, Excused - 3.

          Voting yea: Representatives Alexander, Anderson, Ballasiotes, Blalock, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Clements, Cody, Cole, Conway, Cooke, Cooper, Costa, Doumit, Dunshee, Dyer, Gardner, Gombosky, Grant, Hankins, Hatfield, Huff, Johnson, Kastama, Keiser, Kenney, Lantz, Linville, Mastin, McDonald, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Radcliff, Reams, Regala, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Talcott, Thomas, B., Thompson, Veloria, Wood and Zellinsky - 61.

          Voting nay: Representatives Appelwick, Backlund, Benson, Boldt, Chopp, Constantine, Crouse, Delvin, Dickerson, Dunn, Fisher, Hickel, Honeyford, Kessler, Koster, Lambert, Lisk, Mason, McMorris, Mielke, Mitchell, Pennington, Poulsen, Quall, Robertson, Romero, Sherstad, Sump, Thomas, L., Tokuda, Van Luven, Wensman, Wolfe and Mr. Speaker - 34.

          Excused: Representatives Chandler, DeBolt and Schmidt, K. - 3.

          Substitute Senate Bill No. 5104, as amended by the House, having received the constitutional majority, was declared passed.

          There being no objection, the House reverted to the third order of business.

MESSAGES FROM THE SENATE

April 18, 1997

Mr. Speaker:

          The Senate has passed:

ENGROSSED SENATE BILL NO. 6072,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

April 18, 1997

Mr. Speaker:

          The President has signed:

SUBSTITUTE HOUSE BILL NO. 1047,

ENGROSSED HOUSE BILL NO. 1411,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1576,

HOUSE BILL NO. 1802,

HOUSE BILL NO. 1828,

HOUSE BILL NO. 1908,

SUBSTITUTE HOUSE BILL NO. 1955,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1969,

SUBSTITUTE HOUSE BILL NO. 2044,

and the same are herewith transmitted.

Mike O’Connell, Secretary

April 17, 1997

Mr. Speaker:

          The Senate has passed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5074,

SUBSTITUTE SENATE BILL NO. 5196,

SUBSTITUTE SENATE BILL NO. 5355,

SENATE BILL NO. 5622,

SUBSTITUTE SENATE BILL NO. 6050,

ENGROSSED SENATE BILL NO. 6094,

SENATE CONCURRENT RESOLUTION NO. 8415,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

April 16, 1997

Mr. Speaker:

          The President has appointed the following members as Conferees to SUBSTITUTE SENATE BILL NO. 6063:

          Senators Strannigan, Fraser and Rossi

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

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

SECOND READING

          SUBSTITUTE HOUSE BILL NO. 2069, by Representatives Wensman, Cole, Bush, H. Sommers, Benson, D. Schmidt, L. Thomas, Dyer, B. Thomas, Reams, Doumit, Ballasiotes, Alexander, Hatfield, Lantz, Sullivan, Thompson, Kessler and Butler

Changing school levy provisions.

          With the consent of the House, amendment numbers 594, 607 and 614 to Substitute House Bill No. 2069 were withdrawn.

          Representative Wensman moved the adoption of the following amendment by Representative Wensman: (625)

          Strike everything after the enacting clause and insert the following:

          "NEW SECTION. Sec. 1. Funding resulting from this act is for school district activities which supplement or are not related to the state's basic program of education obligation as set forth under Article IX of the state Constitution.

          Sec. 2. RCW 84.52.0531 and 1995 1st sp.s. c 11 s 1 are each amended to read as follows:

          The maximum dollar amount which may be levied by or for any school district for maintenance and operation support under the provisions of RCW 84.52.053 shall be determined as follows:

          (1) For excess levies for collection in calendar year ((1992)) 1997, the maximum dollar amount shall be calculated pursuant to the laws and rules in effect in November ((1991)) 1996.

          (2) ((For the purpose of this section, the basic education allocation shall be determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350: PROVIDED, That when determining the basic education allocation under subsection (4) of this section, nonresident full time equivalent pupils who are participating in a program provided for in chapter 28A.545 RCW or in any other program pursuant to an interdistrict agreement shall be included in the enrollment of the resident district and excluded from the enrollment of the serving district.

          (3))) For excess levies for collection in calendar year ((1993)) 1998 and thereafter, the maximum dollar amount shall be the sum of (a) ((and)) plus or minus (b) and (c) of this subsection minus (((c))) (d) of this subsection:

          (a) The district's levy base as defined in subsection (((4))) (3) of this section multiplied by the district's maximum levy percentage as defined in subsection (((5))) (4) of this section;

          (b) ((In the case of nonhigh school districts only, an amount equal to the total estimated amount due by the nonhigh school district to high school districts pursuant to chapter 28A.545 RCW for the school year during which collection of the levy is to commence, less the increase in the nonhigh school district's basic education allocation as computed pursuant to subsection (1) of this section due to the inclusion of pupils participating in a program provided for in chapter 28A.545 RCW in such computation)) For districts in a high/nonhigh relationship, the high school district's maximum levy amount shall be reduced and the nonhigh school district's maximum levy amount shall be increased by an amount equal to the estimated amount of the nonhigh payment due to the high school district under RCW 28A.545.030(3) and 28A.545.050 for the school year commencing the year of the levy;

          (c) For districts in an interdistrict cooperative agreement, the nonresident school district's maximum levy amount shall be reduced and the resident school district's maximum levy amount shall be increased by an amount equal to the per pupil basic education allocation included in the nonresident district's levy base under subsection (3) of this section multiplied by:

          (i) The number of full-time equivalent students served from the resident district in the prior school year; multiplied by:

          (ii) The serving district's maximum levy percentage determined under subsection (4) of this section; increased by:

          (iii) The percent increase per full-time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year divided by fifty-five percent;

          (d) The district's maximum levy amount shall be reduced by the maximum amount of state matching funds for which the district is eligible under RCW 28A.500.010 ((for which the district is eligible in that tax collection year)).

          (((4))) (3) For excess levies for collection in calendar year ((1993)) 1998 and thereafter, a district's levy base shall be the sum of allocations in (a) through (c) of this subsection received by the district for the prior school year, including allocations for compensation increases, plus the sum of such allocations multiplied by the percent increase per full time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year and divided by fifty-five percent. A district's levy base shall not include local school district property tax levies or other local revenues, or state and federal allocations not identified in (a) through (c) of this subsection.

          (a) The district's basic education allocation as determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350;

          (b) State and federal categorical allocations for the following programs:

          (i) Pupil transportation;

          (ii) ((Handicapped)) Special education;

          (iii) Education of highly capable students;

          (iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

          (v) Food services; and

          (vi) State-wide block grant programs; and

          (c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

          (((5) For excess levies for collection in calendar year 1993 and thereafter, a district's maximum levy percentage shall be determined as follows:

          (a) Multiply the district's maximum levy percentage for the prior year by the district's levy base as determined in subsection (4) of this section;

          (b) Reduce the amount in (a) of this subsection by the total estimated amount of any levy reduction funds as defined in subsection (6) of this section which are to be allocated to the district for the current school year;

          (c) Divide the amount in (b) of this subsection by the district's levy base to compute a new percentage;

          (d) The percentage in (c) of this subsection or twenty percent, whichever is greater, shall be the district's maximum levy percentage for levies collected in that calendar year; and

          (e) For levies to be collected in calendar years 1994 through 1997, the maximum levy rate shall be the district's maximum levy percentage for 1993 plus four percent reduced by any levy reduction funds.

          For levies collected in 1998, the prior year shall mean 1993.

          (6))) (4) A district's maximum levy percentage shall be twenty-two percent in 1998 and twenty-four percent in 1999 and every year thereafter; plus, for qualifying districts, the grandfathered percentage determined as follows:

          (a) For 1997, the difference between the district's 1993 maximum levy percentage and twenty percent; and

          (b) For 1998 and thereafter, the percentage calculated as follows:

          (i) Multiply the grandfathered percentage for the prior year times the district's levy base determined under subsection (3) of this section;

          (ii) Reduce the result of (b)(i) of this subsection by any levy reduction funds as defined in subsection (5) of this section that are to be allocated to the district for the current school year;

          (iii) Divide the result of (b)(ii) of this subsection by the district's levy base; and

          (iv) Take the greater of zero or the percentage calculated in (b)(iii) of this subsection.

          (5) "Levy reduction funds" shall mean increases in state funds from the prior school year for programs included under subsection (((4))) (3) of this section: (a) That are not attributable to enrollment changes, compensation increases, or inflationary adjustments; and (b) that are or were specifically identified as levy reduction funds in the appropriations act. If levy reduction funds are dependent on formula factors which would not be finalized until after the start of the current school year, the superintendent of public instruction shall estimate the total amount of levy reduction funds by using prior school year data in place of current school year data. Levy reduction funds shall not include moneys received by school districts from cities or counties.

          (((7))) (6) For the purposes of this section, "prior school year" ((shall)) means the most recent school year completed prior to the year in which the levies are to be collected.

          (((8))) (7) For the purposes of this section, "current school year" ((shall)) means the year immediately following the prior school year.

          (((9))) (8) Funds collected from transportation vehicle fund tax levies shall not be subject to the levy limitations in this section.

          (((10))) (9) The superintendent of public instruction shall develop rules and regulations and inform school districts of the pertinent data necessary to carry out the provisions of this section.

          NEW SECTION. Sec. 3. The house of representatives and senate fiscal committees shall study data and issues relevant to the state funded local effort assistance program known as "levy equalization" and prepare a report of findings and recommendations to the legislature by December 1, 1997.

          Sec. 4. RCW 28A.500.010 and 1993 c 410 s 1 are each amended to read as follows:

          (1) Commencing with taxes assessed in 1988 to be collected in calendar year 1989 and thereafter, in addition to a school district's other general fund allocations, each eligible district shall be provided local effort assistance funds as provided in this section. Such funds are not part of the district's basic education allocation. ((For the first distribution of local effort assistance funds provided under this section in calendar year 1989, state funds may be prorated according to the formula in this section.))

          (2)(a) "Prior tax collection year" ((shall)) means the year immediately preceding the year in which the local effort assistance shall be allocated.

          (b) The "state-wide average ten percent levy rate" ((shall)) means ten percent of the total levy bases as defined in RCW 84.52.0531(((4))) (3) summed for all school districts, and divided by the total assessed valuation for excess levy purposes in the prior tax collection year for all districts as adjusted to one hundred percent by the county indicated ratio established in RCW 84.48.075.

          (c) The "district's ten percent levy rate" ((of a district shall)) means((:

          (i) Ten percent of the district's levy base as defined in RCW 84.52.0531(4), plus one-half of any amount computed under RCW 84.52.0531(3)(b) in the case of nonhigh school districts; divided by

          (ii))) the district's ten percent levy amount divided by the district's assessed valuation for excess levy purposes for the prior tax collection year as adjusted to one hundred percent by the county indicated ratio.

          (d) The "district's ten percent levy amount" means the school district's maximum levy authority after transfers determined under RCW 84.52.0531(2)(a) through (c) divided by the district's maximum levy percentage determined under RCW 84.52.0531(4) multiplied by ten percent.

          (e) The "district's twelve percent levy amount" means the school district's maximum levy authority after transfers determined under RCW 84.52.0531(1)(a) through (c) divided by the district's maximum levy percentage determined under RCW 84.52.0531(4) multiplied by twelve percent.

          (f) "Districts eligible ((districts" shall)) for ten percent equalization" means:

          (i) Before the 1999 calendar year, those districts with a ten percent levy rate which exceeds the state-wide average ten percent levy rate; and

          (ii) In the 1999 calendar year and thereafter, those districts with a ten percent levy rate that exceeds the state-wide average ten percent levy rate but that is not in the top quartile of all district rates ranked from highest to lowest.

          (g) "Districts eligible for twelve percent equalization" means in the 1999 calendar year and thereafter, those districts with a ten percent levy rate in the top quartile of all district rates ranked from highest to lowest.

          (h) Unless otherwise stated all rates, percents, and amounts are for the calendar year for which local effort assistance is being calculated under this section.

          (3) Allocation of state matching funds to eligible districts for local effort assistance shall be determined as follows:

          (a) Funds raised by the district through maintenance and operation levies ((during that tax collection year)) shall be matched with state funds using the following ratio of state funds to levy funds: (i) The difference between the district's ten percent levy rate and the state-wide average ten percent levy rate; to (ii) the state-wide average ten percent levy rate.

          (b) The maximum amount of state matching funds for ((which a district may be eligible in any tax collection year shall be ten percent of the district's levy base as defined in RCW 84.52.0531(4))) districts eligible for ten percent equalization shall be the district's ten percent levy amount, multiplied by the following percentage: (i) The difference between the district's ten percent levy rate and the state-wide average ten percent levy rate; divided by (ii) the district's ten percent levy rate.

          (c) In the 1999 calendar year and thereafter, the maximum amount of state matching funds for districts eligible for twelve percent equalization shall be the district's twelve percent levy amount multiplied by the following percentage: (i) The difference between the district's ten percent levy rate and the state-wide average ten percent levy rate; divided by (ii) the district's ten percent levy rate.

          (4)(((a) Through tax collection year 1992, fifty-five percent of local effort assistance funds shall be distributed to qualifying districts during the applicable tax collection year on or before June 30 and forty-five percent shall be distributed on or before December 31 of any year.

          (b) In tax collection year 1993 and thereafter,)) Local effort assistance funds shall be distributed to qualifying districts as follows:

          (((i))) (a) Thirty percent in April;

          (((ii))) (b) Twenty-three percent in May;

          (((iii))) (c) Two percent in June;

          (((iv))) (d) Seventeen percent in August;

          (((v))) (e) Nine percent in October;

          (((vi))) (f) Seventeen percent in November; and

          (((vii))) (g) Two percent in December.

          NEW SECTION. Sec. 5. RCW 28A.320.150 and 1995 1st sp.s. c 11 s 2 are each repealed."

          Representatives Wensman and Cole spoke in favor of the adoption of the amendment. The amendment was adopted.

          The bill was ordered engrossed.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives Wensman, Cole, Smith, Blalock, Carlson and Cooke spoke in favor of passage of the bill.

          Representative Hickel spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2069.

ROLL CALL

          The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2069 and the bill passed the House by the following vote: Yeas - 86, Nays - 9, Absent - 0, Excused - 3.

          Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Lambert, Lantz, Linville, Mason, Mastin, McDonald, McMorris, Mielke, Morris, Mulliken, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Romero, Schmidt, D., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Skinner, Smith, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood and Zellinsky - 86.

          Voting nay: Representatives Crouse, Hickel, Honeyford, Koster, Lisk, Mitchell, Robertson, Sherstad and Mr. Speaker - 9.

          Excused: Representatives Chandler, DeBolt and Schmidt, K. - 3.

          Engrossed Substitute House Bill No. 2069, having received the constitutional majority, was declared passed.

          SUBSTITUTE SENATE BILL NO. 5146, by Senate Committee on Government Operations (originally sponsored by Senators Winsley, Fraser, Roach, Anderson and Patterson)

Requiring that the position as the retired member of the state investment board rotate among retired representatives of the public employees' retirement system, the law enforcement officers' and fire fighters' retirement system, and the teachers' retirement system.

          The bill was read the second time.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representative Carlson spoke in favor of passage of the bill.

          Representatives H. Sommers, Ogden and Lambert spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5146.

ROLL CALL

          The Clerk called the roll on the final passage of Substitute Senate Bill No. 5146 and the bill failed to passed the House by the following vote: Yeas - 37, Nays - 57, Absent - 1, Excused - 3.

          Voting yea: Representatives Anderson, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Carlson, Carrell, Clements, Crouse, Delvin, Dickerson, Gardner, Grant, Honeyford, Huff, Kastama, Kessler, Koster, Linville, Mastin, Mielke, Mulliken, O'Brien, Parlette, Pennington, Regala, Schoesler, Sehlin, Sheahan, Sheldon, Skinner, Smith, Talcott and Thomas, L. - 37.

          Voting nay: Representatives Alexander, Appelwick, Butler, Cairnes, Chopp, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, Doumit, Dunn, Dunshee, Dyer, Fisher, Gombosky, Hankins, Hatfield, Hickel, Johnson, Keiser, Kenney, Lambert, Lantz, Lisk, Mason, McDonald, McMorris, Mitchell, Morris, Murray, Ogden, Poulsen, Quall, Radcliff, Reams, Robertson, Romero, Schmidt, D., Scott, Sherstad, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Thomas, B., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood and Mr. Speaker - 57.

          Absent: Representative Zellinsky - 1.

          Excused: Representatives Chandler, DeBolt and Schmidt, K. - 3.

          Substitute Senate Bill No. 5146, having not received the constitutional majority, was declared failed.

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

FIRST READING OF BILLS

          ENGROSSED SENATE BILL NO. 6072, by Senators West and Spanel; by request of Office of Financial Management

          Modifying the timelines for development and implementation of the student assessment system.

          There being no objection, the rules were suspended, and the bill was read the first time.

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

SECOND READING

          There being no objection, the rules were suspended, and Engrossed Senate Bill No. 6072 was advanced to second reading and read the second time in full.

          Representative Linville moved the adoption of the following amendment by Representative Linville. (661)

          On page 4, line 10, after "school year." insert "The history, civics, geography, arts, and health and fitness assessments shall be available for use by school districts at the elementary school level no later than the 2004-05 school year."

          Representatives Linville and Cole spoke in favor of the adoption of the amendment.

          Representatives Talcott and Hickel spoke against the adoption of the amendment.

          Division was demanded. The Speaker divided the House. The results of the division was 45-YEAS; 50-NAYS. The amendment was not adopted.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives Talcott and Quall spoke in favor of passage of the bill.

          Representatives Linville, Keiser and Cole spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Engrossed Senate Bill No. 6072.

ROLL CALL

          The Clerk called the roll on the final passage of Engrossed Senate Bill No. 6072 and the bill passed the House by the following vote: Yeas - 54, Nays - 41, Absent - 0, Excused - 3.

          Voting yea: Representatives Alexander, Anderson, Backlund, Ballasiotes, Benson, Buck, Bush, Cairnes, Carlson, Carrell, Clements, Cooke, Crouse, Delvin, Doumit, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Lambert, Lisk, Mastin, McDonald, Mielke, Mitchell, Morris, O'Brien, Parlette, Pennington, Quall, Radcliff, Reams, Regala, Robertson, Schmidt, D., Schoesler, Sehlin, Sheahan, Sheldon, Skinner, Smith, Sommers, D., Sterk, Sullivan, Talcott, Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 54.

          Voting nay: Representatives Appelwick, Blalock, Boldt, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Dunn, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Keiser, Kenney, Kessler, Koster, Lantz, Linville, Mason, McMorris, Mulliken, Murray, Ogden, Poulsen, Romero, Scott, Sherstad, Sommers, H., Sump, Thomas, B., Tokuda, Veloria, Wolfe and Wood - 41.

          Excused: Representatives Chandler, DeBolt and Schmidt, K. - 3.

           Engrossed Senate Bill No. 6072, having received the constitutional majority, was declared passed.

          SUBSTITUTE SENATE BILL NO. 5737, by Senate Committee on Ways & Means (originally sponsored by Senators Anderson, Loveland, Schow, Sheldon, Strannigan, Rossi, Deccio, Goings, Horn, Swecker, Rasmussen, Bauer, Hale, Roach, Johnson, Benton, West and Oke)

Reducing the carbonated beverage tax.

          The bill was read the second time.

          Representative Dickerson moved the adoption of the following amendment by Representative Dickerson: (628)

          Beginning on page 1, after line 4, strike all of sections 1 and 2 and insert the following:

          "NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:

          In computing the tax imposed under this chapter, a credit is allowed for one-half of the taxes paid under RCW 82.64.020. The credit allowed under this section shall be limited to the amount of tax imposed under this chapter. Any unused excess credit in a reporting period may be carried forward to future reporting periods for a maximum of one year."

          Renumber the following sections consecutively and correct the title.

          Representative Dickerson spoke in favor of the adoption of the amendment.

          Representatives B. Thomas, Benson and Huff spoke against the adoption of the amendment. The amendment was not adopted.

          With the consent of the House, amendment number 651 to Substitute Senate Bill No. 5737 was withdrawn.

          There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

          Representatives B. Thomas, Huff, Schoesler, Zellinsky and Lisk spoke in favor of passage of the bill.

          Representatives Dunshee, Dickerson, Lantz, Cole, Cooper and Costa spoke against passage of the bill.

          The Speaker stated the question before the House to be final passage of Substitute Senate Bill No. 5737.

ROLL CALL

          The Clerk called the roll on the final passage of Substitute Senate Bill No. 5737 and the bill passed the House by the following vote: Yeas - 61, Nays - 34, Absent - 0, Excused - 3.

          Voting yea: Representatives Alexander, Appelwick, Backlund, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Clements, Cooke, Crouse, Delvin, Dunn, Dyer, Gardner, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kessler, Koster, Lambert, Linville, Lisk, Mastin, McDonald, McMorris, Mielke, Morris, Mulliken, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schoesler, Sheahan, Sheldon, Sherstad, Skinner, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Wensman, Zellinsky and Mr. Speaker - 61.

          Voting nay: Representatives Anderson, Ballasiotes, Blalock, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gombosky, Kastama, Keiser, Kenney, Lantz, Mason, Mitchell, Murray, O'Brien, Ogden, Regala, Romero, Scott, Sehlin, Sommers, H., Tokuda, Veloria, Wolfe and Wood - 34.

          Excused: Representatives Chandler, DeBolt and Schmidt, K. - 3.

          Substitute Senate Bill No. 5737, having received the constitutional majority, was declared passed.

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

INTRODUCTIONS AND FIRST READING

HJR 4213            by Representative Sheldon

Amending the state Constitution to exempt laws authorizing establishment of stadium and exhibition centers by public stadium authorities from certain limitations.

E2SSB 5074        by Senate Committee on Ways & Means (originally sponsored by Senators Sellar and Snyder)

Increasing interstate trade through tax incentives for warehouse and grain operations.

SSB 5196            by Senate Committee on Ways & Means (originally sponsored by Senators Strannigan, West, Bauer, Heavey, Prentice and Wood)

Allowing a business and occupation tax deduction for certain amusement devices.

SSB 5355            by Senate Committee on Ways & Means (originally sponsored by Senators Benton, Brown, Swecker, Finkbeiner, Patterson, Rossi and Winsley)

Exempting certain property donated to charitable organizations.

SB 5622               by Senators Long, Strannigan and Winsley

Removing the expiration of tax exemptions for new construction of alternative housing for youth in crisis.

SSB 6050            by Senate Committee on Ways & Means (originally sponsored by Senator Oke)

Providing tax exemptions for state route number 16 corridor improvements constructed under chapter 47.46 RCW.

ESB 6094            by Senators McCaslin and Haugen; by request of Governor Locke

Changing growth management provisions.

SCR 8415            by Senators West and Roach

Examining motor vehicle excise tax distribution.

          There being no objection, the bills and resolution listed on the day’s introduction sheet under the fourth order of business were referred to the Rules Committee.

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

          There being no objection, the rules were suspended, and Senate Concurrent Resolution No. 8415 was advanced to second reading.

          There being no objection, the House reverted to the sixth order of business

SECOND READING

          SENATE CONCURRENT RESOLUTION NO. 8415, by Senators West and Roach

          Examining motor vehicle excise tax distribution.

          The resolution was read the second time.

          There being no objection, the rules were suspended, the second reading considered the third and the resolution was advanced to final passage.

          Representative Huff spoke in favor of the adoption of the resolution.

          The Speaker stated the question before the House to be final adoption of Senate Concurrent Resolution No. 8415.

          Senate Concurrent Resolution No. 8415 was adopted.

          There being no objection, bills listed on the second reading calendar were returned to the Rules Committee.

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

MOTION

          On motion by Representative Lisk, the House adjourned until 10:00 a.m., Saturday, April 19, 1997.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk

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Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

1828

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

1832

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

1908

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

1955 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

1969 (2nd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

2044 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

2069

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

2069 (Sub)

Second Reading Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40, 49

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .40

2149 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

4005

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

4209

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

4213

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

4629 Honoring Washington State Scholars

Introduced. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Adopted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

5074 (2nd Sub)

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .56

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

5104 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

5146 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

5196 (Sub)

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

5353

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

5355 (Sub)

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

5402

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

5526 (Sub)

Third Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

5559

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

5574 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

5622

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

5651

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

5688

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

5721 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

5737 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56

5749 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

5811

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

5845 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

5850

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

5868 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1

5915

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

5938

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

6045 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

6050 (Sub)

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

6061 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

6063 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .49

6068 (Sub)

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13

6072

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

Second Reading Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .54

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

6094

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

8415

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

Adopted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .57

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

HOUSE OF REPRESENTATIVES

Motion for Reconsideration, Representative Parlette, ESSB 6068. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Statement for the Journal; Representative Sump. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

HOUSE OF REPRESENTATIVES (REPRESENTATIVE PENNINGTON PRESIDING)

Point of Order, Representative B. Thomas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8

SPEAKER OF THE HOUSE (REPRESENTATIVE PENNINGTON PRESIDING)

Speaker's Ruling: Scope & Object: 5574-S.E #542; Point well taken. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8