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ONE HUNDRED-THIRD DAY

MORNING SESSION

House Chamber, Olympia, Friday, April 25, 1997

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

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Victor Langford and Georg Wiese. Prayer was offered by Colonel Victor Langford, State Chaplain, Washington Army National Guard and pastor of St. Mark's Church.

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

SPEAKER’S PRIVILEGE

The Speaker: Colonel Langford has been nominated for promotion to the rank of Brigadier General. He is the only nominee for this promotion which culminates by the approval of Congress. Upon confirmation he will be the highest ranking National Guard Chaplain in the United States.

MESSAGES FROM THE SENATE

April 24, 1997

Mr. Speaker:

The President of the Senate has appointed Senator Patterson to replace Senator Haugen as conferee on SENATE BILL NO. 5650,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

April 24, 1997

Mr. Speaker:

The President has signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2050,

and the same is herewith transmitted.

Mike O'Connell, Secretary

April 24, 1997

Mr. Speaker:

The Senate grants the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 1565. The President has appointed the following members as Conferees:

Senators Benton, Jacobsen and Rossi

and the same is herewith transmitted.

Mike O'Connell, Secretary

April 24, 1997

Mr. Speaker:

The Senate grants the request of the House for a conference on SECOND SUBSTITUTE SENATE BILL NO. 5127. The President has appointed the following members as Conferees:

Senators Deccio, Wojahn and Winsley

and the same is herewith transmitted.

Mike O'Connell, Secretary

April 24, 1997

Mr. Speaker:

The Senate receded from its amendment(s) to SUBSTITUTE HOUSE BILL NO. 1729 and passed the bill without the Senate amendment(s),

and the same is herewith transmitted.

Mike O'Connell, Secretary

April 24, 1997

Mr. Speaker:

The Senate has adopted:

SENATE CONCURRENT RESOLUTION NO. 8416,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

April 25, 1997

Mr. Speaker:

The Senate rejected the report of the Conference Committee on ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1850, refused to adopt said report, and returned the bill to the Conference Committee,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

April 23, 1997

Mr. Speaker:

The President of the Senate ruled the House amendment(s) to ENGROSSED SENATE BILL NO. 5354 beyond the scope and object of the bill. The Senate refuses to concur in said amendment(s) and asks the House to recede therefrom,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House receded from its positions, and advanced Engrossed Senate Bill No. 5354 to final passage.

The Speaker (Representative Pennington stated the question before the House to be final passage of Engrossed Senate Bill No. 5354 without the House amendments.

Representatives D. Schmidt and Scott spoke in favor of the passage of the bill.

MOTIONS

On motion by Representative Kessler, Representatives Gardner, Mason, Costa, Murray, Quall, Cole and Poulsen were excused. On motion by Representatives Cairnes, Representatives Reams, Carroll, Dyer, L. Thomas, McMorris, Thompson and Skinner were excused.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5354 without the House amendments, and the bill passed the House by the following vote: Yeas - 87, Nays - 0, Absent - 0, Excused - 11.

Voting yea: Representatives Alexander, Anderson, Appelwick, Backlund, Ballasiotes, Benson, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Crouse, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Fisher, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Koster, Lambert, Lantz, Linville, Lisk, Mastin, McDonald, Mielke, Mitchell, Morris, Mulliken, O'Brien, Ogden, Parlette, Pennington, Radcliff, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, 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 - 87.

Excused: Representatives Carrell, Costa, Dyer, Gardner, Mason, McMorris, Murray, Poulsen, Quall, Reams and Skinner - 11.

Engrossed Senate Bill No. 5354, having received the constitutional majority, was declared passed.

The Speaker assumed the chair.

MESSAGE FROM THE SENATE

April 24, 1997

Mr. Speaker:

The Senate has passed:

SUBSTITUTE HOUSE BILL NO. 1478,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1057,

SUBSTITUTE HOUSE BILL NO. 1433,

SUBSTITUTE HOUSE BILL NO. 1935,

SUBSTITUTE SENATE BILL NO. 5149,

SENATE BILL NO. 5229,

SUBSTITUTE SENATE BILL NO. 5462,

SUBSTITUTE SENATE BILL NO. 5511,

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

INTRODUCTION AND FIRST READING

HB 2288 by Representatives Dyer, Zellinsky, Radcliff, Backlund, Crouse, Cooke, Cairnes, Sehlin, B. Thomas, Sherstad, Robertson, Hickel, Pennington, Carlson, Ballasiotes, Carrell, Cody, Fisher, Dickerson, O’Brien and H. Sommers

Providing equity in business and occupation taxation of hospitals.

HB 2289 by Representative Dyer

Removing the prohibition of engaging in the practice of chiropractic and spinal manipulation by licensed physical therapists.

HCR 4413 by Representative Robertson

Exempting the cutoff date requirements for House Bill No. 2192.

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.

MOTION

There being no objection, the rules were suspended, and House Concurrent Resolution No. 4413 was advanced to second reading, and read the second time in full.

SECOND READING

HOUSE CONCURRENT RESOLUTION NO. 4413, by Representative Robertson

Exempting the cutoff date requirements for House Bill No. 2192.

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

Representatives Robertson and B. Thomas spoke in favor of adoption.

Division was demanded. The Speaker divided the House. The results of the division was 64-YEAS; 29-NAYS.

House Concurrent Resolution No. 4413 was adopted.

There being no objection, House Concurrent Resolution No. 4413 was immediately transmitted to the Senate.

There being no objection, the Committee on Capital Budget was relieved of further consideration of House Bill No. 2192, and the bill was placed on second reading.

HOUSE BILL NO. 2192, by Representatives Van Luven and Wolfe (originally requested by Governor Locke)

Financing a stadium and exhibition center and technology grants.

The bill was read the second time. There being no objection, Substitute House Bill No. 2192 was substituted for House Bill No. 2192 and the substitute bill was placed on the second reading calendar.

Substitute House Bill No. 2192 was read the second time.

MOTION

Representative Sheldon moved that Substitute House Bill No. 2192 be laid on the table. The motion was not adopted.

There being no objection, the House deferred consideration of Substitute House Bill No. 2192 and the bill held it's place on the second reading calendar.

CONFERENCE COMMITTEE REPORT

SB 5034 Date: April 22, 1997

Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SENATE BILL NO. 5034, changing the definition of "bona fide charitable or nonprofit organization" for gambling statutes, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached S-3286.1/97) be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 9.46.0209 and 1987 c 4 s 4 are each amended to read as follows:

"Bona fide charitable or nonprofit organization," as used in this chapter, means: (1) Any organization duly existing under the provisions of chapters 24.12, 24.20, or 24.28 RCW, any agricultural fair authorized under the provisions of chapters 15.76 or 36.37 RCW, or any nonprofit corporation duly existing under the provisions of chapter 24.03 RCW for charitable, benevolent, eleemosynary, educational, civic, patriotic, political, social, fraternal, athletic or agricultural purposes only, or any nonprofit organization, whether incorporated or otherwise, when found by the commission to be organized and operating for one or more of the aforesaid purposes only, all of which in the opinion of the commission have been organized and are operated primarily for purposes other than the operation of gambling activities authorized under this chapter; or (2) any corporation which has been incorporated under Title 36 U.S.C. and whose principal purposes are to furnish volunteer aid to members of the armed forces of the United States and also to carry on a system of national and international relief and to apply the same in mitigating the sufferings caused by pestilence, famine, fire, floods, and other national calamities and to devise and carry on measures for preventing the same. Such an organization must have been organized and continuously operating for at least twelve calendar months immediately preceding making application for any license to operate a gambling activity, or the operation of any gambling activity authorized by this chapter for which no license is required. It must have not less than ((fifteen)) seven bona fide active members each with the right to an equal vote in the election of the officers, or board members, if any, who determine the policies of the organization in order to receive a gambling license. An organization must demonstrate to the commission that it has made significant progress toward the accomplishment of the purposes of the organization during the twelve consecutive month period preceding the date of application for a license or license renewal. The fact that contributions to an organization do not qualify for charitable contribution deduction purposes or that the organization is not otherwise exempt from payment of federal income taxes pursuant to the internal revenue code of 1954, as amended, shall constitute prima facie evidence that the organization is not a bona fide charitable or nonprofit organization for the purposes of this section.

Any person, association or organization which pays its employees, including members, compensation other than is reasonable therefor under the local prevailing wage scale shall be deemed paying compensation based in part or whole upon receipts relating to gambling activities authorized under this chapter and shall not be a bona fide charitable or nonprofit organization for the purposes of this chapter.

Sec. 2. RCW 9.46.0205 and 1987 c 4 s 3 are each amended to read as follows:

(1) "Bingo," as used in this chapter, means a game ((conducted only in the county within which the organization is principally located)) in which prizes are awarded on the basis of designated numbers or symbols on a card conforming to numbers or symbols selected at random and in which no cards are sold except at the time and place of ((said)) the game, ((when said)) except as authorized by the commission for joint bingo games.

(2) The game ((is)) shall be conducted only by:

(a) A bona fide charitable or nonprofit organization which does not conduct or allow its premises to be used for conducting bingo on more than three occasions per week and which does not conduct bingo in any location which is used for conducting bingo on more than three occasions per week((,)); or ((if))

(b) An agricultural fair authorized under chapters 15.76 and 36.37 RCW, which does not conduct bingo on more than twelve consecutive days in any calendar year((, and)).

(3) Except in the case of any agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a bona fide member or an employee of ((said)) the organization ((takes)) may take any part in the management or operation of ((said)) the game unless approved by the commission, and no person who takes any part in the management or operation of ((said)) the game ((takes)) may take any part in the management or operation of any game conducted by any other organization or any other branch of the same organization((,)) unless approved by the commission((, and)).

(4) No part of the proceeds ((thereof)) from a bingo game may inure to the benefit of any person other than the organization conducting ((said)) the game.

(5) A bingo game must be conducted only in the county where the sponsoring organization is principally located, except as authorized by the commission for joint bingo games. For the purposes of this section, the organization shall be deemed to be principally located in the county within which it has its primary business office. If the organization has no business office, the organization shall be deemed to be located in the county of principal residence of its chief executive officer((: PROVIDED, That)). Any organization which is conducting any licensed and established bingo game in any locale as of January 1, 1981, shall be exempt from the requirement that such game be conducted in the county in which the organization is principally located.

(6) The commission may authorize joint bingo games conducted by two or more bona fide charitable or nonprofit organizations if the prizes are pooled and the games are conducted during each organization's normal period of operation. The commission may adopt rules for the operation, management, and location of the games.

Sec. 3. RCW 9.46.120 and 1987 c 4 s 40 are each amended to read as follows:

(1) Except in the case of an agricultural fair as authorized under chapters 15.76 and 36.37 RCW, no person other than a member of a bona fide charitable or nonprofit organization (and their employees) or any other person, association or organization (and their employees) approved by the commission, shall take any part in the management or operation of any gambling activity authorized under this chapter((, and)) unless approved by the commission. No person who takes any part in the management or operation of any such gambling activity shall take any part in the management or operation of any gambling activity conducted by any other organization or any other branch of the same organization((,)) unless approved by the commission((, and)). No part of the proceeds ((thereof)) of the activity shall inure to the benefit of any person other than the organization conducting such gambling activities or if such gambling activities be for the charitable benefit of any specific persons designated in the application for a license, then only for such specific persons as so designated.

(2) No bona fide charitable or nonprofit organization or any other person, association or organization shall conduct any gambling activity authorized under this chapter in any leased premises if rental for such premises is unreasonable or to be paid, wholly or partly, on the basis of a percentage of the receipts or profits derived from such gambling activity.

Sec. 4. RCW 9.46.110 and 1994 c 301 s 2 are each amended to read as follows:

(1) The legislative authority of any county, city-county, city, or town, by local law and ordinance, and in accordance with the provisions of this chapter and rules ((and regulations promulgated hereunder)) adopted under this chapter, may provide for the taxing of any gambling activity authorized by this chapter within its jurisdiction, the tax receipts to go to the county, city-county, city, or town so taxing the ((same: PROVIDED, That)) activity. Any such tax imposed by a county alone shall not apply to any gambling activity within a city or town located ((therein)) in the county but the tax rate established by a county, if any, shall constitute the tax rate throughout the unincorporated areas of such county((: PROVIDED FURTHER, That (1) punch boards and pull-tabs, chances on which shall)).

(2) The operation of punch boards and pull-tabs are subject to the following conditions:

(a) Chances may only be sold to adults((, which shall have a fifty cent limit on a single chance thereon, shall be taxed on a basis which shall reflect only the gross receipts from such punch boards and pull-tabs; and (2)));

(b) The price of a single chance may not exceed one dollar;

(c) No punch board or pull-tab license may award as a prize upon a winning number or symbol being drawn the opportunity of taking a chance upon any other punch board or pull-tab; ((and (3)))

(d) All prizes ((for punch boards and pull-tabs)) available to be won must be described on an information flare. All merchandise prizes must be on display within the immediate area of the premises ((wherein)) in which any such punch board or pull-tab is located ((and)). Upon a winning number or symbol being drawn, ((such)) a merchandise prize must be immediately removed ((therefrom)) from the display and awarded to the winner. All references to cash or merchandise prizes, with a value over twenty dollars, must be removed immediately from the information flare when won, or such omission shall be deemed a fraud for the purposes of this chapter; and (((4)))

(e) When any person ((shall win over twenty dollars in)) wins money or merchandise from any punch board or pull-tab over an amount determined by the commission, every licensee ((hereunder)) shall keep a public record ((thereof)) of the award for at least ninety days ((thereafter)) containing such information as the commission shall deem necessary((: AND PROVIDED FURTHER, That)).

(3)(a) Taxation of bingo and raffles shall never be in an amount greater than ten percent of the gross ((revenue received therefrom)) receipts from a bingo game or raffle less the amount ((paid for or)) awarded as cash or merchandise prizes.

(b) Taxation of amusement games shall only be in an amount sufficient to pay the actual costs of enforcement of the provisions of this chapter by the county, city or town law enforcement agency and in no event shall such taxation exceed two percent of the gross ((revenue therefrom)) receipts from the amusement game less the amount ((paid for)) awarded as prizes((: PROVIDED FURTHER, That)).

(c) No tax shall be imposed under the authority of this chapter on bingo or amusement games when such activities or any combination thereof are conducted by any bona fide charitable or nonprofit organization as defined in this chapter, which organization has no paid operating or management personnel and has gross ((income)) receipts from bingo or amusement games, or a combination thereof, not exceeding five thousand dollars per year, less the amount ((paid for)) awarded as cash or merchandise prizes.

(d) No tax shall be imposed on the first ten thousand dollars of ((net proceeds)) gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide charitable or nonprofit organization as defined in this chapter.

(e) Taxation of punch boards and pull-tabs for bona fide charitable or nonprofit organizations is based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and shall not exceed ((five)) a rate of ten percent ((of gross receipts, nor shall)). At the option of the county, city-county, city, or town, the taxation of punch boards and pull-tabs for commercial stimulant operators may be based on gross receipts from the operation of the games, and may not exceed a rate of five percent, or may be based on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes, and may not exceed a rate of ten percent.

(f) Taxation of social card games may not exceed twenty percent of the gross revenue from such games.

(4) Taxes imposed under this chapter become a lien upon personal and real property used in the gambling activity in the same manner as provided for under RCW 84.60.010. The lien shall attach on the date the tax becomes due and shall relate Backlund and have priority against real and personal property to the same extent as ad valorem taxes.

Sec. 5. RCW 9.46.0233 and 1987 c 4 s 24 are each amended to read as follows:

(1) "Fund raising event," as used in this chapter, means a fund raising event conducted during any seventy-two consecutive hours ((but exceeding twenty-four consecutive hours and)) not more than ((once)) twice in any calendar year when no gambling activities are conducted between the hours of 2:00 a.m. and 6:00 a.m.; or a fund raising event conducted not more than ((twice)) four times each calendar year for not more than ((twenty-four)) twenty consecutive hours ((each time)) when no gambling activities are conducted between the hours of 2:00 a.m. and 6:00 a.m.; or a combination of one seventy-two consecutive hour event and not more than two twenty consecutive hour events by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209 other than any agricultural fair referred to thereunder, upon authorization therefor by the commission, which the legislature hereby authorizes to issue a license therefor, with or without fee, permitting the following activities, or any of them, during such event: Bingo, amusement games, contests of chance, lotteries and raffles: PROVIDED, That (a) gross wagers and bets received by the organization less the amount of money paid by the organization as winnings and for the purchase cost of prizes given as winnings do not exceed ((ten)) fifteen thousand dollars during a single event or thirty thousand dollars during the total calendar days of such fund raising event in the calendar year; (b) such activities shall not include any mechanical gambling or lottery device activated by the insertion of a coin or by the insertion of any object purchased by any person taking a chance by gambling in respect to the device; (c) only bona fide members of the organization or their spouses who are not paid for such service shall participate in the management or operation of the activities((, and)). However, an organization may use up to five individuals who are not members or spouses of members to operate gambling activities when the individuals are approved by the commission. The individuals may be paid an amount determined by the commission but shall not be involved in the management of the event, perform duties of a cashier, banker, or otherwise have access to or share in the net proceeds of the event, or perform any of the accounting functions or otherwise have access to the accounting records. Further, anyone licensed by the commission to rent equipment to conduct the activities may be paid an amount determined by the commission to provide training and advisory services in conjunction with the events; (d) all income therefrom, after deducting the cost of prizes and other expenses, shall be devoted solely to the lawful purposes of the organization; and (((d))) (e) such organization shall notify the appropriate local law enforcement agency of the time and place where such activities shall be conducted. The commission shall require an annual information report setting forth in detail the expenses incurred and the revenue received relative to the activities permitted.

(2) Bona fide charitable or nonprofit organizations holding a license to conduct a fund raising event may join together to jointly conduct a fund raising event if:

(a) Approval to do so is received from the commission; ((and))

(b) The method of dividing the income and expenditures and the method of recording and handling of funds are disclosed to the commission in the application for approval of the joint fund raising event and are approved by the commission((.));

(c) The gross wagers and bets received by the organizations less the amount of money paid by the organizations as winnings and for the purchase costs of prizes given as winnings ((may)) does not exceed ((ten)) fifteen thousand dollars during the total calendar days of such event. The net receipts each organization receives shall count against the organization's annual limit stated in this subsection((.));

(d) A joint fund raising event shall count against only the lead organization or organizations receiving fifty percent or more of the net receipts for the purposes of the number of such events an organization may conduct each year((.)); and

(e) The commission may issue a joint license for a joint fund raising event and charge a license fee for such license according to a schedule of fees adopted by the commission which reflects the added cost to the commission of licensing more than one licensee for the event."

On page 1, line 1 of the title, after "gambling;" strike the remainder of the title and insert "and amending RCW 9.46.0209, 9.46.0205, 9.46.120, 9.46.110, and 9.46.0233."

There being no objection, the Conference Committee recommendation on Senate Bill No. 5034 was adopted.

FINAL PASSAGE OF SENATE BILL WITHOUT HOUSE AMENDMENTS

The Speaker stated the question before the House to be final passage of Senate Bill No. 5034 as recommended by the Conference Committee.

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

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5034, as recommended by the Conference Committee and the bill passed the House by the following vote: Yeas - 90, Nays - 7, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Anderson, Appelwick, Ballasiotes, Benson, Blalock, Boldt, Buck, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Constantine, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, 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, Mitchell, Morris, Mulliken, Murray, O'Brien, Ogden, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sherstad, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood and Zellinsky - 90.

Voting nay: Representatives Backlund, Bush, Cole, Mielke, Parlette, Smith and Mr. Speaker - 7.

Excused: Representative Skinner - 1.

Senate Bill No. 5034, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

ESSB 5082 Date: April 23, 1997

Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 5082, relating to mental health and chemical dependency treatment for minors, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached H3324.1) be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds it is often necessary for parents to obtain mental health or chemical dependency treatment for their minor children prior to the time the child's condition presents a likelihood of serious harm or the child becomes gravely disabled. The legislature finds that treatment of such conditions is not the equivalent of incarceration or detention, but is a legitimate act of parental discretion, when supported by decisions of credentialed professionals. The legislature finds that, consistent with Barham v. J.R., 442 U.S. 584 (1979), state action is not involved in the determination of a parent and professional person to admit a minor child to treatment and finds this act provides sufficient independent review by the department of social and health services, as a neutral fact-finder, to protect the interests of all parties. The legislature finds it is necessary to provide parents a statutory process, other than the petition process provided in chapters 70.96A and 71.34 RCW, to obtain treatment for their minor children without the consent of the children.

The legislature finds that differing standards of admission and review in parent-initiated mental health and chemical dependency treatment for their minor children are necessary and the admission standards and procedures under state involuntary treatment procedures are not adequate to provide safeguards for the safety and well-being of all children. The legislature finds the timeline for admission and reviews under existing law do not provide sufficient opportunities for assessment of the mental health and chemically dependent status of every minor child and that additional time and different standards will facilitate the likelihood of successful treatment of children who are in need of assistance but unwilling to obtain it voluntarily. The legislature finds there are children whose behavior presents a clear need of medical treatment but is not so extreme as to require immediate state intervention under the state involuntary treatment procedures.

MENTAL HEALTH

Sec. 2. RCW 71.34.010 and 1992 c 205 s 302 are each amended to read as follows:

It is the purpose of this chapter to ((ensure)) assure that minors in need of mental health care and treatment receive an appropriate continuum of culturally relevant care and treatment, ((from)) including prevention and early intervention ((to)), self-directed care, parent-directed care, and involuntary treatment. To facilitate the continuum of care and treatment to minors in out-of-home placements, all divisions of the department that provide mental health services to minors shall jointly plan and deliver those services.

It is also the purpose of this chapter to protect the rights of minors against needless hospitalization and deprivations of liberty and to enable treatment decisions to be made in response to clinical needs in accordance with sound professional judgment. The mental health care and treatment providers shall encourage the use of voluntary services and, whenever clinically appropriate, the providers shall offer less restrictive alternatives to inpatient treatment. Additionally, all mental health care and treatment providers shall ((ensure)) assure that minors' parents are given an opportunity to participate in the treatment decisions for their minor children. The mental health care and treatment providers shall, to the extent possible, offer services that involve minors' parents or family.

It is also the purpose of this chapter to assure the ability of parents to exercise reasonable, compassionate care and control of their minor children when there is a medical necessity for treatment and without the requirement of filing a petition under this chapter.

Sec. 3. RCW 71.34.020 and 1985 c 354 s 2 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Child psychiatrist" means a person having a license as a physician and surgeon in this state, who has had graduate training in child psychiatry in a program approved by the American Medical Association or the American Osteopathic Association, and who is board eligible or board certified in child psychiatry.

(2) "Children's mental health specialist" means:

(a) A mental health professional who has completed a minimum of one hundred actual hours, not quarter or semester hours, of specialized training devoted to the study of child development and the treatment of children; and

(b) A mental health professional who has the equivalent of one year of full-time experience in the treatment of children under the supervision of a children's mental health specialist.

(3) "Commitment" means a determination by a judge or court commissioner, made after a commitment hearing, that the minor is in need of inpatient diagnosis, evaluation, or treatment or that the minor is in need of less restrictive alternative treatment.

(4) "County-designated mental health professional" means a mental health professional designated by one or more counties to perform the functions of a county-designated mental health professional described in this chapter.

(5) "Department" means the department of social and health services.

(6) "Evaluation and treatment facility" means a public or private facility or unit that is certified by the department to provide emergency, inpatient, residential, or outpatient mental health evaluation and treatment services for minors. A physically separate and separately-operated portion of a state hospital may be designated as an evaluation and treatment facility for minors. A facility which is part of or operated by the department or federal agency does not require certification. No correctional institution or facility, juvenile court detention facility, or jail may be an evaluation and treatment facility within the meaning of this chapter.

(7) "Evaluation and treatment program" means the total system of services and facilities coordinated and approved by a county or combination of counties for the evaluation and treatment of minors under this chapter.

(8) "Gravely disabled minor" means a minor who, as a result of a mental disorder, is in danger of serious physical harm resulting from a failure to provide for his or her essential human needs of health or safety, or manifests severe deterioration in routine functioning evidenced by repeated and escalating loss of cognitive or volitional control over his or her actions and is not receiving such care as is essential for his or her health or safety.

(9) "Inpatient treatment" means twenty-four-hour-per-day mental health care provided within a general hospital, psychiatric hospital, or residential treatment facility certified by the department as an evaluation and treatment facility for minors.

(10) "Less restrictive alternative" or "less restrictive setting" means outpatient treatment provided to a minor who is not residing in a facility providing inpatient treatment as defined in this chapter.

(11) "Likelihood of serious harm" means either: (a) A substantial risk that physical harm will be inflicted by an individual upon his or her own person, as evidenced by threats or attempts to commit suicide or inflict physical harm on oneself; (b) a substantial risk that physical harm will be inflicted by an individual upon another, as evidenced by behavior which has caused such harm or which places another person or persons in reasonable fear of sustaining such harm; or (c) a substantial risk that physical harm will be inflicted by an individual upon the property of others, as evidenced by behavior which has caused substantial loss or damage to the property of others.

(12) "Medical necessity" for inpatient care means a requested service which is reasonably calculated to: (a) Diagnose, correct, cure, or alleviate a mental disorder; or (b) prevent the worsening of mental conditions that endanger life or cause suffering and pain, or result in illness or infirmity or threaten to cause or aggravate a handicap, or cause physical deformity or malfunction, and there is no adequate less restrictive alternative available.

(13) "Medically appropriate" means that a minor admitted to inpatient treatment, under section 13 of this act, has not sufficiently improved his or her condition to be released to a less restrictive setting.

(14) "Mental disorder" means any organic, mental, or emotional impairment that has substantial adverse effects on an individual's cognitive or volitional functions. The presence of alcohol abuse, drug abuse, juvenile criminal history, antisocial behavior, or mental retardation alone is insufficient to justify a finding of "mental disorder" within the meaning of this section.

(((13))) (15) "Mental health professional" means a psychiatrist, psychologist, psychiatric nurse, or social worker, and such other mental health professionals as may be defined by rules adopted by the secretary under this chapter.

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

(((15))) (17) "Outpatient treatment" means any of the nonresidential services mandated under chapter 71.24 RCW and provided by licensed services providers as identified by RCW 71.24.025(3).

(((16))) (18) "Parent" means:

(a) A biological or adoptive parent who has legal custody of the child, including either parent if custody is shared under a joint custody agreement; or

(b) A person or agency judicially appointed as legal guardian or custodian of the child.

(((17))) (19) "Professional person in charge" or "professional person" means a physician or other mental health professional empowered by an evaluation and treatment facility with authority to make admission and discharge decisions on behalf of that facility.

(((18))) (20) "Psychiatric nurse" means a registered nurse who has a bachelor's degree from an accredited college or university, and who has had, in addition, at least two years' experience in the direct treatment of mentally ill or emotionally disturbed persons, such experience gained under the supervision of a mental health professional. "Psychiatric nurse" shall also mean any other registered nurse who has three years of such experience.

(((19))) (21) "Psychiatrist" means a person having a license as a physician in this state who has completed residency training in psychiatry in a program approved by the American Medical Association or the American Osteopathic Association, and is board eligible or board certified in psychiatry.

(((20))) (22) "Psychologist" means a person licensed as a psychologist under chapter 18.83 RCW.

(((21))) (23) "Responsible other" means the minor, the minor's parent or estate, or any other person legally responsible for support of the minor.

(((22))) (24) "Secretary" means the secretary of the department or secretary's designee.

(((23))) (25) "Start of initial detention" means the time of arrival of the minor at the first evaluation and treatment facility offering inpatient treatment if the minor is being involuntarily detained at the time. With regard to voluntary patients, "start of initial detention" means the time at which the minor gives notice of intent to leave under the provisions of this chapter.

Sec. 4. RCW 71.34.025 and 1995 c 312 s 56 are each amended to read as follows:

(1) ((The admission of any child under RCW 71.34.030 may be reviewed by the county-designated mental health professional between fifteen and thirty days following admission. The county-designated mental health professional may undertake the review on his or her own initiative and may seek reimbursement from the parents, their insurance, or medicaid for the expense of the review.

(2))) The department shall ((ensure)) assure that, for any minor admitted to inpatient treatment under section 13 of this act, a review is conducted by a physician or other mental health professional who is employed by the department, or an agency under contract with the department, and who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the facility providing the treatment. The physician or other mental health professional shall conduct the review no sooner than five days and no later than ((sixty)) ten days, excluding Saturdays, Sundays, and holidays, following admission to determine whether it is medically appropriate to continue the ((child's)) minor's treatment on an inpatient basis. ((The department may, subject to available funds, contract with a county for the conduct of the review conducted under this subsection and may seek reimbursement from the parents, their insurance, or medicaid for the expense of any review conducted by an agency under contract.

If the county-designated mental health professional determines that continued inpatient treatment of the child is no longer medically appropriate, the professional shall notify the facility, the child, the child's parents, and the department of the finding within twenty-four hours of the determination.

(3) For purposes of eligibility for medical assistance under chapter 74.09 RCW, children in inpatient mental health or chemical dependency treatment shall be considered to be part of their parent's or legal guardian's household, unless the child has been assessed by the department of social and health services or its designee as likely to require such treatment for at least ninety consecutive days, or is in out-of-home care in accordance with chapter 13.34 RCW, or the child's parents are found to not be exercising responsibility for care and control of the child. Payment for such care by the department of social and health services shall be made only in accordance with rules, guidelines, and clinical criteria applicable to inpatient treatment of minors established by the department.))

(2) The department shall, at thirty-day intervals following the review conducted under subsection (1) of this section, conduct three reviews of the treatment status of each minor admitted to inpatient treatment, under section 13 of this act, to determine whether it is medically appropriate to continue the minor's treatment under inpatient status. The reviews shall be conducted by a physician or other mental health professional who is employed by the department, or an agency under contract with the department, and who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the facility providing the treatment.

(3) In making a determination under subsection (1) or (2) of this section, the department shall consider the opinion of the treatment provider, the safety of the minor, and the likelihood the minor's mental health will deteriorate if released from inpatient treatment. The department shall consult with the parent in advance of making its determination.

(4) If the department determines it is no longer medically appropriate for a minor to receive inpatient treatment, the department shall immediately notify the parents and the facility. The facility shall release the minor to the parents within twenty-four hours of receiving notice. If the professional person in charge and the parent believe that it is medically appropriate for the minor to remain in inpatient treatment, the minor shall be released to the parent on the second judicial day following the department's determination in order to allow the parent time to file an at-risk youth petition under chapter 13.32A RCW. If the department determines it is medically appropriate for the minor to receive outpatient treatment and the minor declines to obtain such treatment, such refusal shall be grounds for the parent to file an at-risk youth petition.

(5) If after the third department review under subsection (2) of this section, the department determines that it is medically appropriate to continue the minor's inpatient treatment, the department, or the department's designee, shall file a petition under RCW 71.34.070 within seven days of the department's determination. For the purposes of this section, it is not necessary to file a petition for initial detention.

(6) If the evaluation conducted under section 13 of this act is done by the department, the reviews required by subsections (1) and (2) of this section shall be done by contract with an independent agency.

(7) The department may, subject to available funds, contract with other governmental agencies to conduct the reviews under this section. The department may seek reimbursement from the parents, their insurance, or medicaid for the expense of any review conducted by an agency under contract.

NEW SECTION. Sec. 5. A new section is added to chapter 71.34 RCW to read as follows:

For purposes of eligibility for medical assistance under chapter 74.09 RCW, minors in inpatient mental health treatment shall be considered to be part of their parent's or legal guardian's household, unless the minor has been assessed by the department or its designee as likely to require such treatment for at least ninety consecutive days, or is in out-of-home care in accordance with chapter 13.34 RCW, or the parents are found to not be exercising responsibility for care and control of the minor. Payment for such care by the department shall be made only in accordance with rules, guidelines, and clinical criteria applicable to inpatient treatment of minors established by the department.

VOLUNTARY MENTAL HEALTH OUTPATIENT TREATMENT

Sec. 6. RCW 71.34.030 and 1995 c 312 s 52 are each amended to read as follows:

(((1))) Any minor thirteen years or older may request and receive outpatient treatment without the consent of the minor's parent. Parental authorization is required for outpatient treatment of a minor under the age of thirteen.

(((2) When in the judgment of the professional person in charge of an evaluation and treatment facility there is reason to believe that a minor is in need of inpatient treatment because of a mental disorder, and the facility provides the type of evaluation and treatment needed by the minor, and it is not feasible to treat the minor in any less restrictive setting or the minor's home, the minor may be admitted to an evaluation and treatment facility in accordance with the following requirements:

(a) A minor may be voluntarily admitted by application of the parent. The consent of the minor is not required for the minor to be evaluated and admitted as appropriate.

(b) A minor thirteen years or older may, with the concurrence of the professional person in charge of an evaluation and treatment facility, admit himself or herself without parental consent to the evaluation and treatment facility, provided that notice is given by the facility to the minor's parent in accordance with the following requirements:

(i) Notice of the minor's admission shall be in the form most likely to reach the parent within twenty-four hours of the minor's voluntary admission and shall advise the parent that the minor has been admitted to inpatient treatment; the location and telephone number of the facility providing such treatment; and the name of a professional person on the staff of the facility providing treatment who is designated to discuss the minor's need for inpatient treatment with the parent.

(ii) The minor shall be released to the parent at the parent's request for release unless the facility files a petition with the superior court of the county in which treatment is being provided setting forth the basis for the facility's belief that the minor is in need of inpatient treatment and that release would constitute a threat to the minor's health or safety.

(iii) The petition shall be signed by the professional person in charge of the facility or that person's designee.

(iv) The parent may apply to the court for separate counsel to represent the parent if the parent cannot afford counsel.

(v) There shall be a hearing on the petition, which shall be held within three judicial days from the filing of the petition.

(vi) The hearing shall be conducted by a judge, court commissioner, or licensed attorney designated by the superior court as a hearing officer for such hearing. The hearing may be held at the treatment facility.

(vii) At such hearing, the facility must demonstrate by a preponderance of the evidence presented at the hearing that the minor is in need of inpatient treatment and that release would constitute a threat to the minor's health or safety. The hearing shall not be conducted using the rules of evidence, and the admission or exclusion of evidence sought to be presented shall be within the exercise of sound discretion by the judicial officer conducting the hearing.

(d) The minor's need for continued inpatient treatments shall be reviewed and documented no less than every one hundred eighty days.

(3) A notice of intent to leave shall result in the following:

(a) Any minor under the age of thirteen must be discharged immediately upon written request of the parent.

(b) Any minor thirteen years or older voluntarily admitted may give notice of intent to leave at any time. The notice need not follow any specific form so long as it is written and the intent of the minor can be discerned.

(c) The staff member receiving the notice shall date it immediately, record its existence in the minor's clinical record, and send copies of it to the minor's attorney, if any, the county-designated mental health professional, and the parent.

(d) The professional person in charge of the evaluation and treatment facility shall discharge the minor, thirteen years or older, from the facility within twenty-four hours after receipt of the minor's notice of intent to leave, unless the county-designated mental health professional or a parent or legal guardian files a petition or an application for initial detention within the time prescribed by this chapter.

(4) The ability of a parent to apply to a certified evaluation and treatment program for the involuntary admission of his or her minor child does not create a right to obtain or benefit from any funds or resources of the state. However, the state may provide services for indigent minors to the extent that funds are available therefor.))

NEW SECTION. Sec. 7. For the purpose of gathering information related to parental notification of outpatient mental health treatment of minors, the department of health shall conduct a survey of providers of outpatient treatment, as defined in chapter 71.34 RCW. The survey shall gather information from a statistically valid sample of providers. In accordance with confidentiality statutes and the physician-patient privilege, the survey shall secure information from the providers related to:

(1) The number of minors receiving outpatient treatment;

(2) The number of parents of minors in treatment notified of the minor's treatment;

(3) The average number of outpatient visits prior to parental notification;

(4) The average number of treatments with parental notification;

(5) The average number of treatments without parental notification;

(6) The percentage of minors in treatment who are prescribed medication;

(7) The medication prescribed;

(8) The number of patients terminating treatment due to parental notification; and

(9) Any other pertinent information.

The department shall submit the survey results to the governor and the appropriate committees of the legislature by December 1, 1997.

This section expires June 1, 1998.

VOLUNTARY MENTAL HEALTH INPATIENT TREATMENT

NEW SECTION. Sec. 8. A new section is added to chapter 71.34 RCW to read as follows:

(1) A minor thirteen years or older may admit himself or herself to an evaluation and treatment facility for inpatient mental treatment, without parental consent. The admission shall occur only if the professional person in charge of the facility concurs with the need for inpatient treatment.

(2) When, in the judgment of the professional person in charge of an evaluation and treatment facility, there is reason to believe that a minor is in need of inpatient treatment because of a mental disorder, and the facility provides the type of evaluation and treatment needed by the minor, and it is not feasible to treat the minor in any less restrictive setting or the minor's home, the minor may be admitted to an evaluation and treatment facility.

(3) Written renewal of voluntary consent must be obtained from the applicant no less than once every twelve months. The minor's need for continued inpatient treatments shall be reviewed and documented no less than every one hundred eighty days.

NEW SECTION. Sec. 9. A new section is added to chapter 71.34 RCW to read as follows:

The administrator of the treatment facility shall provide notice to the parents of a minor when the minor is voluntarily admitted to inpatient treatment under section 8 of this act. The notice shall be in the form most likely to reach the parent within twenty-four hours of the minor's voluntary admission and shall advise the parent: (1) That the minor has been admitted to inpatient treatment; (2) of the location and telephone number of the facility providing such treatment; (3) of the name of a professional person on the staff of the facility providing treatment who is designated to discuss the minor's need for inpatient treatment with the parent; and (4) of the medical necessity for admission.

NEW SECTION. Sec. 10. A new section is added to chapter 71.34 RCW to read as follows:

(1) Any minor thirteen years or older who has voluntarily admitted himself or herself to inpatient treatment shall be released to the parent upon the parent's written request for release unless the professional person in charge of the facility exercises his or her option to file a petition for commitment of a minor.

(2)(a) The petition shall be filed with the superior court of the county in which treatment is being provided setting forth the basis for the facility's belief that the minor is in need of inpatient treatment and that release would constitute a threat to the minor's health or safety.

(b) The petition shall be signed by the minor and the professional person in charge of the facility or that person's designee.

(d) There shall be a hearing on the petition, which shall be held within seventy-two hours from the filing of the petition.

(3) The commitment hearing shall be conducted at the superior court or an appropriate place at the treatment facility.

(4) The professional person must demonstrate, by a preponderance of the evidence, that the minor is in need of inpatient treatment and that the release would constitute a threat to the minor's health or safety. The rules of evidence shall not apply at the hearing.

NEW SECTION. Sec. 11. A new section is added to chapter 71.34 RCW to read as follows:

(1) Any minor thirteen years or older voluntarily admitted to an evaluation and treatment facility under section 8 of this act may give notice of intent to leave at any time. The notice need not follow any specific form so long as it is written and the intent of the minor can be discerned.

(2) The staff member receiving the notice shall date it immediately, record its existence in the minor's clinical record, and send copies of it to the minor's attorney, if any, the county-designated mental health professional, and the parent.

(3) The professional person shall discharge the minor, thirteen years or older, from the facility within twenty-four hours after receipt of the minor's notice of intent to leave, unless the county-designated mental health professional commences an initial detention proceeding under the provisions of this chapter.

NEW SECTION. Sec. 12. A new section is added to chapter 71.34 RCW to read as follows:

Any minor admitted to inpatient treatment under section 8 or 13 of this act shall be discharged immediately from inpatient treatment upon written request of the parent.

PARENT-INITIATED MENTAL HEALTH TREATMENT

NEW SECTION. Sec. 13. A new section is added to chapter 71.34 RCW to read as follows:

(1) A parent may bring, or authorize the bringing of, his or her minor child to an evaluation and treatment facility and request that the professional person examine the minor to determine whether the minor has a mental disorder and is in need of inpatient treatment.

(2) The consent of the minor is not required for admission, evaluation, and treatment if the parent brings the minor to the facility.

(3) An appropriately trained professional person may evaluate whether the minor has a mental disorder. The evaluation shall be completed within twenty-four hours of the time the minor was brought to the facility, unless the professional person determines that the condition of the minor necessitates additional time for evaluation. In no event shall a minor be held longer than seventy-two hours for evaluation without being admitted or released. If, in the judgment of the professional person, it is determined it is a medical necessity for the minor to receive inpatient treatment, the minor may be admitted. Prior to admission, the facility shall limit treatment to that which the professional person determines is medically necessary to stabilize the minor's condition. Within twenty-four hours of the admission, the professional person shall notify the department of the admission.

(4) No provider is obligated to provide treatment to a minor under the provisions of this section. No provider may admit a minor to treatment under this section unless it is medically necessary.

(5) No minor receiving inpatient treatment under this section may be discharged from the facility based solely on his or her request.

(6) For the purposes of this section "professional person" does not include a social worker, unless the social worker is certified under RCW 18.19.110 and appropriately trained and qualified by education and experience, as defined by the department, in psychiatric social work.

NEW SECTION. Sec. 14. A new section is added to chapter 71.34 RCW to read as follows:

(1) A parent may bring, or authorize the bringing of, his or her minor child to a provider of outpatient mental health treatment and request that an appropriately trained professional person examine the minor to determine whether the minor has a mental disorder and is in need of outpatient treatment.

(2) The consent of the minor is not required for evaluation if the parent brings the minor to the provider.

(3) The professional person may evaluate whether the minor has a mental disorder and is in need of outpatient treatment.

NEW SECTION. Sec. 15. A new section is added to chapter 71.34 RCW to read as follows:

The ability of a parent to apply to a certified evaluation and treatment program for the admission of his or her minor does not create a right to obtain or benefit from any funds or resources of the state. The state may provide services for indigent minors to the extent that funds are available.

CHEMICAL DEPENDENCY

Sec. 16. RCW 70.96A.020 and 1996 c 178 s 23 and 1996 c 133 s 33 are each reenacted and amended to read as follows:

For the purposes of this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise:

(1) "Alcoholic" means a person who suffers from the disease of alcoholism.

(2) "Alcoholism" means a disease, characterized by a dependency on alcoholic beverages, loss of control over the amount and circumstances of use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued, and impairment of health or disruption of social or economic functioning.

(3) "Approved treatment program" means a discrete program of chemical dependency treatment provided by a treatment program certified by the department of social and health services as meeting standards adopted under this chapter.

(4) "Chemical dependency" means alcoholism or drug addiction, or dependence on alcohol and one or more other psychoactive chemicals, as the context requires.

(5) "Chemical dependency program" means expenditures and activities of the department designed and conducted to prevent or treat alcoholism and other drug addiction, including reasonable administration and overhead.

(6) "Department" means the department of social and health services.

(7) "Designated chemical dependency specialist" means a person designated by the county alcoholism and other drug addiction program coordinator designated under RCW 70.96A.310 to perform the commitment duties described in RCW 70.96A.140 and qualified to do so by meeting standards adopted by the department.

(8) "Director" means the person administering the chemical dependency program within the department.

(9) "Drug addict" means a person who suffers from the disease of drug addiction.

(10) "Drug addiction" means a disease characterized by a dependency on psychoactive chemicals, loss of control over the amount and circumstances of use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued, and impairment of health or disruption of social or economic functioning.

(11) "Emergency service patrol" means a patrol established under RCW 70.96A.170.

(12) "Gravely disabled by alcohol or other drugs" means that a person, as a result of the use of alcohol or other drugs: (a) Is in danger of serious physical harm resulting from a failure to provide for his or her essential human needs of health or safety; or (b) manifests severe deterioration in routine functioning evidenced by a repeated and escalating loss of cognition or volitional control over his or her actions and is not receiving care as essential for his or her health or safety.

(13) "Incapacitated by alcohol or other psychoactive chemicals" means that a person, as a result of the use of alcohol or other psychoactive chemicals, has his or her judgment so impaired that he or she is incapable of realizing and making a rational decision with respect to his or her need for treatment and presents a likelihood of serious harm to himself or herself, to any other person, or to property.

(14) "Incompetent person" means a person who has been adjudged incompetent by the superior court.

(15) "Intoxicated person" means a person whose mental or physical functioning is substantially impaired as a result of the use of alcohol or other psychoactive chemicals.

(16) "Licensed physician" means a person licensed to practice medicine or osteopathic medicine and surgery in the state of Washington.

(17) "Likelihood of serious harm" means either: (a) A substantial risk that physical harm will be inflicted by an individual upon his or her own person, as evidenced by threats or attempts to commit suicide or inflict physical harm on one's self; (b) a substantial risk that physical harm will be inflicted by an individual upon another, as evidenced by behavior that has caused the harm or that places another person or persons in reasonable fear of sustaining the harm; or (c) a substantial risk that physical harm will be inflicted by an individual upon the property of others, as evidenced by behavior that has caused substantial loss or damage to the property of others.

(18) "Medical necessity" for inpatient care of a minor means a requested certified inpatient service that is reasonably calculated to: (a) Diagnose, arrest, or alleviate a chemical dependency; or (b) prevent the worsening of chemical dependency conditions that endanger life or cause suffering and pain, or result in illness or infirmity or threaten to cause or aggravate a handicap, or cause physical deformity or malfunction, and there is no adequate less restrictive alternative available.

(19) "Medically appropriate" means a minor admitted by his or her parents to inpatient treatment under section 21 of this act has not sufficiently improved his or her condition to be released to a less restrictive setting.

(20) "Minor" means a person less than eighteen years of age.

(((19))) (21) "Parent" means the parent or parents who have the legal right to custody of the child. Parent includes custodian or guardian.

(((20))) (22) "Peace officer" means a law enforcement official of a public agency or governmental unit, and includes persons specifically given peace officer powers by any state law, local ordinance, or judicial order of appointment.

(((21))) (23) "Person" means an individual, including a minor.

(((22))) (24) "Professional person in charge" or "professional person" means a physician or chemical dependency counselor as defined in rule by the department, who is empowered by a certified treatment program with authority to make assessment, admission, continuing care, and discharge decisions on behalf of the certified program.

(25) "Secretary" means the secretary of the department of social and health services.

(((23))) (26) "Treatment" means the broad range of emergency, detoxification, residential, and outpatient services and care, including diagnostic evaluation, chemical dependency education and counseling, medical, psychiatric, psychological, and social service care, vocational rehabilitation and career counseling, which may be extended to alcoholics and other drug addicts and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons.

(((24))) (27) "Treatment program" means an organization, institution, or corporation, public or private, engaged in the care, treatment, or rehabilitation of alcoholics or other drug addicts.

VOLUNTARY CHEMICAL DEPENDENCY OUTPATIENT TREATMENT

Sec. 17. RCW 70.96A.095 and 1996 c 133 s 34 are each amended to read as follows:

(((1))) Any person thirteen years of age or older may give consent for himself or herself to the furnishing of outpatient treatment by a chemical dependency treatment program certified by the department. ((Consent of the parent of a person less than eighteen years of age for inpatient treatment is necessary to authorize the care unless the child meets the definition of a child in need of services in RCW 13.32A.030(4)(c), as determined by the department.)) Parental authorization is required for any treatment of a minor under the age of thirteen. ((The parent of a minor is not liable for payment of care for such persons pursuant to this chapter, unless they have joined in the consent to the treatment.

(2) The parent of any minor child may apply to a certified treatment program for the admission of his or her minor child for purposes authorized in this chapter. The consent of the minor child shall not be required for the application or admission. The certified treatment program shall accept the application and evaluate the child for admission. The ability of a parent to apply to a certified treatment program for the admission of his or her minor child does not create a right to obtain or benefit from any funds or resources of the state. However, the state may provide services for indigent minors to the extent that funds are available therefor.

(3) Any provider of outpatient treatment who provides outpatient treatment to a minor thirteen years of age or older shall provide notice of the minor's request for treatment to the minor's parents if: (a) The minor signs a written consent authorizing the disclosure; or (b) the treatment program director determines that the minor lacks capacity to make a rational choice regarding consenting to disclosure. The notice shall be made within seven days of the request for treatment, excluding Saturdays, Sundays, and holidays, and shall contain the name, location, and telephone number of the facility providing treatment, and the name of a professional person on the staff of the facility providing treatment who is designated to discuss the minor's need for treatment with the parent.))

NEW SECTION. Sec. 18. A new section is added to chapter 70.96A RCW to read as follows:

Any provider of outpatient treatment who provides outpatient treatment to a minor thirteen years of age or older shall provide notice of the minor's request for treatment to the minor's parents if: (1) The minor signs a written consent authorizing the disclosure; or (2) the treatment program director determines that the minor lacks capacity to make a rational choice regarding consenting to disclosure. The notice shall be made within seven days of the request for treatment, excluding Saturdays, Sundays, and holidays, and shall contain the name, location, and telephone number of the facility providing treatment, and the name of a professional person on the staff of the facility providing treatment who is designated to discuss the minor's need for treatment with the parent.

VOLUNTARY CHEMICAL DEPENDENCY INPATIENT TREATMENT

NEW SECTION. Sec. 19. A new section is added to chapter 70.96A RCW to read as follows:

Parental consent is required for inpatient chemical dependency treatment of a minor, unless the child meets the definition of a child in need of services in RCW 13.32A.030(4)(c) as determined by the department: PROVIDED, That parental consent is required for any treatment of a minor under the age of thirteen.

This section does not apply to petitions filed under this chapter.

NEW SECTION. Sec. 20. A new section is added to chapter 70.96A RCW to read as follows:

(1) The parent of a minor is not liable for payment of inpatient or outpatient chemical dependency treatment unless the parent has joined in the consent to the treatment.

(2) The ability of a parent to apply to a certified treatment program for the admission of his or her minor child does not create a right to obtain or benefit from any funds or resources of the state. However, the state may provide services for indigent minors to the extent that funds are available therefor.

PARENT-INITIATED CHEMICAL DEPENDENCY TREATMENT

NEW SECTION. Sec. 21. A new section is added to chapter 70.96A RCW to read as follows:

(1) A parent may bring, or authorize the bringing of, his or her minor child to a certified treatment program and request that a chemical dependency assessment be conducted by a professional person to determine whether the minor is chemically dependent and in need of inpatient treatment.

(2) The consent of the minor is not required for admission, evaluation, and treatment if the parent brings the minor to the program.

(3) An appropriately trained professional person may evaluate whether the minor is chemically dependent. The evaluation shall be completed within twenty-four hours of the time the minor was brought to the program, unless the professional person determines that the condition of the minor necessitates additional time for evaluation. In no event shall a minor be held longer than seventy-two hours for evaluation without being admitted or released. If, in the judgment of the professional person, it is determined it is a medical necessity for the minor to receive inpatient treatment, the minor may be admitted. Prior to admission, the facility shall limit treatment to that which the professional person determines is medically necessary to stabilize the minor's condition. Within twenty-four hours of the admission the professional person shall notify the department of the admission.

(4) No provider is obligated to provide treatment to a minor under the provisions of this section. No provider may admit a minor to treatment under this section unless it is medically necessary.

(5) No minor receiving inpatient treatment under this section may be discharged from the program based solely on his or her request.

(6) Any minor admitted to inpatient treatment under this section shall be discharged immediately from inpatient treatment upon written request of the parent.

Sec. 22. RCW 70.96A.097 and 1995 c 312 s 48 are each amended to read as follows:

(1) ((The admission of any child under RCW 70.96A.095 may be reviewed by the county-designated chemical dependency specialist between fifteen and thirty days following admission. The county-designated chemical dependency specialist may undertake the review on his or her own initiative and may seek reimbursement from the parents, their insurance, or medicaid for the expense of the review.

(2))) The department shall ensure that, for any minor admitted to inpatient treatment under section 21 of this act, a review is conducted by a physician or chemical dependency counselor, as defined in rule by the department, who is employed by the department or an agency under contract with the department and who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the program providing the treatment. The physician or chemical dependency counselor shall conduct the review no sooner than five days and no later than ((sixty)) ten days, excluding Saturdays, Sundays, and holidays, following admission to determine whether it is medically appropriate to continue the ((child's)) minor's treatment on an inpatient basis. ((The department may, subject to available funds, contract with a county for the conduct of the review conducted under this subsection and may seek reimbursement from the parents, their insurance, or medicaid for the expense of any review conducted by an agency under contract.

If the county-designated chemical dependency specialist determines that continued inpatient treatment of the child is no longer medically appropriate, the specialist shall notify the facility, the child, the child's parents, and the department of the finding within twenty-four hours of the determination.

(2) The department shall, at thirty-day intervals following the review conducted under subsection (1) of this section, conduct reviews of the treatment status of each minor admitted to inpatient treatment, under section 21 of this act, to determine whether it is medically appropriate to continue the minor's treatment under inpatient status. The reviews shall be conducted by a physician or chemical dependency counselor, as defined in rule by the department, who is employed by the department, or an agency under contract with the department, and who neither has a financial interest in continued inpatient treatment of the minor nor is affiliated with the program providing the treatment.

(3) In making a determination under subsection (1) or (2) of this section whether it is medically appropriate to release the minor from inpatient treatment, the department shall consider the opinion of the treatment provider, the safety of the minor, the likelihood the minor's chemical dependency recovery will deteriorate if released from inpatient treatment, and the wishes of the parent.

(4) If the department determines it is no longer medically appropriate for a minor to receive inpatient treatment, the department shall immediately notify the parents and the professional person in charge. The professional person in charge shall release the minor to the parents within twenty-four hours of receiving notice. If the professional person in charge and the parent believe that it is medically appropriate for the minor to remain in inpatient treatment, the minor shall be released to the parent on the second judicial day following the department's determination in order to allow the parent time to file an at-risk youth petition under chapter 13.32A RCW. If the department determines it is medically appropriate for the minor to receive outpatient treatment and the minor declines to obtain such treatment, such refusal shall be grounds for the parent to file an at-risk youth petition.

(5) The department may, subject to available funds, contract with other governmental agencies for the conduct of the reviews conducted under this section and may seek reimbursement from the parents, their insurance, or medicaid for the expense of any review conducted by an agency under contract.

NEW SECTION. Sec. 23. A new section is added to chapter 70.96A RCW to read as follows:

(1) A parent may bring, or authorize the bringing of, his or her minor child to a provider of outpatient chemical dependency treatment and request that an appropriately trained professional person examine the minor to determine whether the minor has a chemical dependency and is in need of outpatient treatment.

(2) The consent of the minor is not required for evaluation if the parent brings the minor to the provider.

(3) The professional person in charge of the program may evaluate whether the minor has a chemical dependency and is in need of outpatient treatment.

NEW SECTION. Sec. 24. A new section is added to chapter 70.96A RCW to read as follows:

For purposes of eligibility for medical assistance under chapter 74.09 RCW, minors in inpatient chemical dependency treatment shall be considered to be part of their parent's or legal guardian's household, unless the minor has been assessed by the department or its designee as likely to require such treatment for at least ninety consecutive days, or is in out-of-home care in accordance with chapter 13.34 RCW, or the parents are found to not be exercising responsibility for care and control of the minor. Payment for such care by the department shall be made only in accordance with rules, guidelines, and clinical criteria applicable to inpatient treatment of minors established by the department.

NEW SECTION. Sec. 25. It is the purpose of sections 21 and 23 of this act to assure the ability of parents to exercise reasonable, compassionate care and control of their minor children when there is a medical necessity for treatment and without the requirement of filing a petition under chapter 70.96A RCW.

NEW SECTION. Sec. 26. Part headings used in this act do not constitute any part of the law.

NEW SECTION. Sec. 27. The department of social and health services shall adopt rules defining "appropriately trained professional person" for the purposes of conducting mental health and chemical dependency evaluations under sections 13(3), 14(1), 21(3), and 23(1) of this act."

On page 1, line 2 of the title, after "minors;" strike the remainder of the title and insert "amending RCW 71.34.010, 71.34.020, 71.34.025, 71.34.030, 70.96A.095, and 70.96A.097; reenacting and amending RCW 70.96A.020; adding new sections to chapter 71.34 RCW; adding new sections to chapter 70.96A RCW; creating new sections; and providing an expiration date."

There being no objection, the Conference Committee recommendation on Engrossed Substitute Senate Bill No. 5082 was adopted.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5082 as recommended by the Conference Committee.

Representatives Cooke and Wolfe spoke in favor of the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5082, as recommended by the Conference Committee and the bill passed the House by the following vote: Yeas - 82, Nays - 15, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Anderson, Appelwick, Ballasiotes, Blalock, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, DeBolt, Delvin, Dickerson, Doumit, Dunshee, Dyer, Fisher, Gardner, Gombosky, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kastama, Keiser, Kenney, Kessler, Lantz, Linville, Lisk, Mason, Mastin, McDonald, Mielke, Mitchell, Morris, Murray, O'Brien, Ogden, Parlette, Pennington, Poulsen, Quall, Radcliff, Reams, Regala, Robertson, Romero, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sommers, H., Sullivan, Talcott, Thomas, B., Thomas, L., Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 82.

Voting nay: Representatives Backlund, Benson, Boldt, Crouse, Dunn, Koster, Lambert, McMorris, Mulliken, Sherstad, Smith, Sommers, D., Sterk, Sump and Thompson - 15.

Excused: Representative Skinner - 1.

Engrossed Substitute Senate Bill No. 5082, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

SSB 5270 Date: April 24, 1997

Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE SENATE BILL NO. 5270, relating to the State Investment Board, have had the same under consideration and we recommend that:

All previous amendments not be adopted, the striking amendment by the Conference Committee (see attached 5270-S AMC CONF S3316.1) be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 43.33A RCW to read as follows:

(1) The board is authorized to create corporations under Title 23B RCW, limited liability companies under chapter 25.15 RCW, and limited partnerships under chapter 25.10 RCW, of which it may or may not be the general partner, for the purposes of transferring, acquiring, holding, overseeing, operating, or disposing of real estate or other investment assets that are not publicly traded on a daily basis or on an organized exchange. The liability of each entity created by the board is limited to the assets or properties of that entity. No creditor or other person has any right of action against the board, its members or employees, or the state of Washington on account of any debts, obligations, or liabilities of the entity. Entities created under this section may be authorized by the board to make any investment that the board may make, including but not limited to the acquisition of: Equity interests in operating companies, the indebtedness of operating companies, and real estate.

(2) Directors, officers, and other principals of entities created under this section must be board members, board staff, or principals or employees of an advisor or manager engaged by contract by the board or the entity to manage real estate or other investment assets of the entity. Directors of entities created under this section must be appointed by the board. Officers and other principals of entities created under this section are appointed by the directors.

(3) A public corporation, limited liability company, or limited partnership created under this section has the same immunity or exemption from taxation as that of the state. The entity shall pay an amount equal to the amounts that would be paid for taxes otherwise levied upon real property and personal property to the public official charged with the collection of such real property and personal property taxes as if the property were in private ownership. The proceeds of such payments must be allocated as though the property were in private ownership.

NEW SECTION. Sec. 2. A new section is added to chapter 43.33A RCW to read as follows:

Rent and other income from real estate or other investment assets that are not publicly traded on a daily basis or on an organized exchange that are acquired and being held for investment by the board or by an entity created under section 1 of this act by the board, and being managed by an external advisor or other property manager under contract, shall not be deemed income or state funds for the purposes of chapter 39.58 RCW and this title, until distributions are made to the board of such income from the advisor or manager. Bank and other accounts established by the advisor or property manager for the purpose of the management of such investment assets shall not be deemed accounts established by the state for the purpose of chapter 39.58 RCW and this title."

On page 1, line 1 of the title, after "board;" strike the remainder of the title and insert "and adding new sections to chapter 43.33A RCW."

There being no objection, the Conference Committee recommendation on Substitute Senate Bill No. 5270 was adopted.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Substitute Senate Bill No. 5270 as recommended by the Conference Committee.

Representatives L. Thomas and Wolfe spoke in favor of the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5270, as recommended by the Conference Committee 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, DeBolt, 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, 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 Skinner - 1.

Substitute Senate Bill No. 5270, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

SB 5484 Date: April 24, 1997

Includes "new item": NO

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SENATE BILL NO. 5484, revising regulation of swimming pools, have had the same under consideration and we recommend that the House Health Care Committee amendment be adopted and the bill do pass as recommended by the Conference Committee.

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

"Sec. 2. RCW 70.90.250 and 1987 c 222 s 3 are each amended to read as follows:

This chapter applies to all water recreation facilities regardless of whether ownership is public or private and regardless of whether the intended use is commercial or private, except that this chapter shall not apply to:

(1) Any water recreation facility for the sole use of residents and invited guests at a single family dwelling;

(2) Therapeutic water facilities operated exclusively for physical therapy; ((and))

(3) Steam baths and saunas; and

(4) Metropolitan park districts authorized under chapter 35.61 RCW."

Correct the title.

MOTION

On motion by Representative Dyer, the Conference Committee was dissolved, the House receded from its amendments and Senate Bill No. 5484 was advanced to final passage.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Senate Bill No. 5484.

Representative Dyer spoke in favor of the passage of the bill.

Representative Wood spoke against the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5484 without the House amendments, and the bill passed the House by the following vote: Yeas - 61, Nays - 36, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Backlund, Ballasiotes, Benson, Boldt, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cooke, Crouse, DeBolt, Delvin, Dunn, Dyer, Grant, Hankins, Hickel, Honeyford, Huff, Johnson, Koster, Lambert, Linville, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Mulliken, Parlette, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Sehlin, Sheahan, Sheldon, Sherstad, Smith, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Veloria, Wensman, Zellinsky and Mr. Speaker - 61.

Voting nay: Representatives Anderson, Appelwick, Blalock, Butler, Chopp, Cody, Cole, Constantine, Conway, Cooper, Costa, Dickerson, Doumit, Dunshee, Fisher, Gardner, Gombosky, Hatfield, Kastama, Keiser, Kenney, Kessler, Lantz, Mason, Morris, Murray, O'Brien, Ogden, Poulsen, Regala, Romero, Scott, Sommers, H., Tokuda, Wolfe and Wood - 36.

Excused: Representative Skinner - 1.

Senate Bill No. 5484, without the House amendments, having received the constitutional majority, was declared passed.

STATEMENT FOR THE JOURNAL

I intended to vote NAY on Senate Bill No. 5484.

VELMA VELORIA, 11^th District

CONFERENCE COMMITTEE REPORT

ESSB 5491 Date: April 24, 1997

Includes "new item": NO

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred ENGROSSED SUBSTITUTE SENATE BILL NO. 5491, Revising provisions for termination of parent and child relationship, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached H-3312.2/97) be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 13.34.130 and 1995 c 313 s 2, 1995 c 311 s 19, and 1995 c 53 s 1 are each reenacted and amended to read as follows:

If, after a fact-finding hearing pursuant to RCW 13.34.110, it has been proven by a preponderance of the evidence that the child is dependent within the meaning of RCW 13.34.030; after consideration of the predisposition report prepared pursuant to RCW 13.34.110 and after a disposition hearing has been held pursuant to RCW 13.34.110, the court shall enter an order of disposition pursuant to this section.

(1) The court shall order one of the following dispositions of the case:

(a) Order a disposition other than removal of the child from his or her home, which shall provide a program designed to alleviate the immediate danger to the child, to mitigate or cure any damage the child has already suffered, and to aid the parents so that the child will not be endangered in the future. In selecting a program, the court should choose those services that least interfere with family autonomy, provided that the services are adequate to protect the child.

(b) Order that the child be removed from his or her home and ordered into the custody, control, and care of a relative or the department of social and health services or a licensed child placing agency for placement in a foster family home or group care facility licensed pursuant to chapter 74.15 RCW or in a home not required to be licensed pursuant to chapter 74.15 RCW. Unless there is reasonable cause to believe that the safety or welfare of the child would be jeopardized or that efforts to reunite the parent and child will be hindered, such child shall be placed with a person who is related to the child as defined in RCW 74.15.020(4)(a) and with whom the child has a relationship and is comfortable, and who is willing and available to care for the child. Placement of the child with a relative under this subsection shall be given preference by the court. An order for out-of-home placement may be made only if the court finds that reasonable efforts have been made to prevent or eliminate the need for removal of the child from the child's home and to make it possible for the child to return home, specifying the services that have been provided to the child and the child's parent, guardian, or legal custodian, and that preventive services have been offered or provided and have failed to prevent the need for out-of-home placement, unless the health, safety, and welfare of the child cannot be protected adequately in the home, and that:

(i) There is no parent or guardian available to care for such child;

(ii) The parent, guardian, or legal custodian is not willing to take custody of the child;

(iii) The court finds, by clear, cogent, and convincing evidence, a manifest danger exists that the child will suffer serious abuse or neglect if the child is not removed from the home and an order under RCW 26.44.063 would not protect the child from danger; or

(iv) The extent of the child's disability is such that the parent, guardian, or legal custodian is unable to provide the necessary care for the child and the parent, guardian, or legal custodian has determined that the child would benefit from placement outside of the home.

(2) If the court has ordered a child removed from his or her home pursuant to subsection (1)(b) of this section, the court may order that a petition seeking termination of the parent and child relationship be filed if the court finds it is recommended by the supervising agency, that it is in the best interests of the child and that it is not reasonable to provide further services to reunify the family because the existence of aggravated circumstances make it unlikely that services will effectuate the return of the child to the child's parents in the near future. In determining whether aggravated circumstances exist, the court shall consider one or more of the following:

(a) Conviction of the parent of rape of the child in the first, second, or third degree as defined in RCW 9A.44.073, 9A.44.076, and 9A.44.079;

(b) Conviction of the parent of criminal mistreatment of the child in the first or second degree as defined in RCW 9A.42.020 and 9A.42.030;

(c) Conviction of the parent of one of the following assault crimes, when the child is the victim: Assault in the first or second degree as defined in RCW 9A.36.011 and 9A.36.021 or assault of a child in the first or second degree as defined in RCW 9A.36.120 or 9A.36.130;

(d) Conviction of the parent of murder, manslaughter, or homicide by abuse of the child's other parent, sibling, or another child;

(e) A finding by a court that a parent is a sexually violent predator as defined in RCW 71.09.020;

(f) Failure of the parent to complete available treatment ordered under this chapter or the equivalent laws of another state, where such failure has resulted in a prior termination of parental rights to another child and the parent has failed to effect significant change in the interim.

(3) Whenever a child is ordered removed from the child's home, the agency charged with his or her care shall provide the court with:

(a) A permanency plan of care that shall identify one of the following outcomes as a primary goal and may identify additional outcomes as alternative goals: Return of the child to the home of the child's parent, guardian, or legal custodian; adoption; guardianship; or long-term relative or foster care, until the child is age eighteen, with a written agreement between the parties and the care provider; and independent living, if appropriate and if the child is age sixteen or older. Whenever a permanency plan identifies independent living as a goal, the plan shall also specifically identify the services that will be provided to assist the child to make a successful transition from foster care to independent living. Before the court approves independent living as a permanency plan of care, the court shall make a finding that the provision of services to assist the child in making a transition from foster care to independent living will allow the child to manage his or her financial affairs and to manage his or her personal, social, educational, and nonfinancial affairs. The department shall not discharge a child to an independent living situation before the child is eighteen years of age unless the child becomes emancipated pursuant to chapter 13.64 RCW.

(b) Unless the court has ordered, pursuant to subsection (2) of this section, that a termination petition be filed, a specific plan as to where the child will be placed, what steps will be taken to return the child home, and what actions the agency will take to maintain parent-child ties. All aspects of the plan shall include the goal of achieving permanence for the child.

(i) The agency plan shall specify what services the parents will be offered in order to enable them to resume custody, what requirements the parents must meet in order to resume custody, and a time limit for each service plan and parental requirement.

(ii) The agency shall be required to encourage the maximum parent-child contact possible, including regular visitation and participation by the parents in the care of the child while the child is in placement. Visitation may be limited or denied only if the court determines that such limitation or denial is necessary to protect the child's health, safety, or welfare.

(iii) A child shall be placed as close to the child's home as possible, preferably in the child's own neighborhood, unless the court finds that placement at a greater distance is necessary to promote the child's or parents' well-being.

(iv) The agency charged with supervising a child in placement shall provide all reasonable services that are available within the agency, or within the community, or those services which the department of social and health services has existing contracts to purchase. It shall report to the court if it is unable to provide such services.

(c) If the court has ordered, pursuant to subsection (2) of this section, that a termination petition be filed, a specific plan as to where the child will be placed, what steps will be taken to achieve permanency for the child, services to be offered or provided to the child, and, if visitation would be in the best interests of the child, a recommendation to the court regarding visitation between parent and child pending a fact-finding hearing on the termination petition. The agency shall not be required to develop a plan of services for the parents or provide services to the parents.

(4) If there is insufficient information at the time of the disposition hearing upon which to base a determination regarding the suitability of a proposed placement with a relative, the child shall remain in foster care and the court shall direct the supervising agency to conduct necessary background investigations as provided in chapter 74.15 RCW and report the results of such investigation to the court within thirty days. However, if such relative appears otherwise suitable and competent to provide care and treatment, the criminal history background check need not be completed before placement, but as soon as possible after placement. Any placements with relatives, pursuant to this section, shall be contingent upon cooperation by the relative with the agency case plan and compliance with court orders related to the care and supervision of the child including, but not limited to, court orders regarding parent-child contacts and any other conditions imposed by the court. Noncompliance with the case plan or court order shall be grounds for removal of the child from the relative's home, subject to review by the court.

(5) Except for children whose cases are reviewed by a citizen review board under chapter 13.70 RCW, the status of all children found to be dependent shall be reviewed by the court at least every six months from the beginning date of the placement episode or the date dependency is established, whichever is first, at a hearing in which it shall be determined whether court supervision should continue. The review shall include findings regarding the agency and parental completion of disposition plan requirements, and if necessary, revised permanency time limits.

(a) A child shall not be returned home at the review hearing unless the court finds that a reason for removal as set forth in this section no longer exists. The parents, guardian, or legal custodian shall report to the court the efforts they have made to correct the conditions which led to removal. If a child is returned, casework supervision shall continue for a period of six months, at which time there shall be a hearing on the need for continued intervention.

(b) If the child is not returned home, the court shall establish in writing:

(i) Whether reasonable services have been provided to or offered to the parties to facilitate reunion, specifying the services provided or offered;

(ii) Whether the child has been placed in the least-restrictive setting appropriate to the child's needs, including whether consideration and preference has been given to placement with the child's relatives;

(iii) Whether there is a continuing need for placement and whether the placement is appropriate;

(iv) Whether there has been compliance with the case plan by the child, the child's parents, and the agency supervising the placement;

(v) Whether progress has been made toward correcting the problems that necessitated the child's placement in out-of-home care;

(vi) Whether the parents have visited the child and any reasons why visitation has not occurred or has been infrequent;

(vii) Whether additional services are needed to facilitate the return of the child to the child's parents; if so, the court shall order that reasonable services be offered specifying such services; and

(viii) The projected date by which the child will be returned home or other permanent plan of care will be implemented.

(c) The court at the review hearing may order that a petition seeking termination of the parent and child relationship be filed.

Sec. 2. RCW 13.34.180 and 1993 c 412 s 2 and 1993 c 358 s 3 are each reenacted and amended to read as follows:

A petition seeking termination of a parent and child relationship may be filed in juvenile court by any party to the dependency proceedings concerning that child. Such petition shall conform to the requirements of RCW 13.34.040, shall be served upon the parties as provided in RCW 13.34.070(8), and shall allege:

(1) That the child has been found to be a dependent child under RCW 13.34.030(((2))) (4); and

(2) That the court has entered a dispositional order pursuant to RCW 13.34.130; and

(3) That the child has been removed or will, at the time of the hearing, have been removed from the custody of the parent for a period of at least six months pursuant to a finding of dependency under RCW 13.34.030(((2))) (4); and

(4) That the services ordered under RCW 13.34.130 have been offered or provided and all necessary services, reasonably available, capable of correcting the parental deficiencies within the foreseeable future have been offered or provided; and

(5) That there is little likelihood that conditions will be remedied so that the child can be returned to the parent in the near future. In determining whether the conditions will be remedied the court may consider, but is not limited to, the following factors:

(a) Use of intoxicating or controlled substances so as to render the parent incapable of providing proper care for the child for extended periods of time and documented unwillingness of the parent to receive and complete treatment or documented multiple failed treatment attempts; or

(b) Psychological incapacity or mental deficiency of the parent that is so severe and chronic as to render the parent incapable of providing proper care for the child for extended periods of time, and documented unwillingness of the parent to receive and complete treatment or documentation that there is no treatment that can render the parent capable of providing proper care for the child in the near future; and

(6) That continuation of the parent and child relationship clearly diminishes the child's prospects for early integration into a stable and permanent home; or

(7) In lieu of the allegations in subsections (1) through (6) of this section, the petition may allege that the child was found under such circumstances that the whereabouts of the child's parent are unknown and no person has acknowledged paternity or maternity and requested custody of the child within two months after the child was found.

A parent's failure to substantially improve parental deficiencies within twelve months following entry of the dispositional order shall give rise to a rebuttable presumption that there is little likelihood that conditions will be remedied so that the child can be returned to the parent in the near future. The presumption shall not arise unless the petitioner makes a showing that all necessary services reasonably capable of correcting the parental deficiencies within the foreseeable future have been offered or provided.

Notice of rights shall be served upon the parent, guardian, or legal custodian with the petition and shall be in substantially the following form:

"NOTICE

A petition for termination of parental rights has been filed against you. You have important legal rights and you must take steps to protect your interests. This petition could result in permanent loss of your parental rights.

1. You have the right to a fact-finding hearing before a judge.

2. You have the right to have a lawyer represent you at the hearing. A lawyer can look at the files in your case, talk to the department of social and health services and other agencies, tell you about the law, help you understand your rights, and help you at hearings. If you cannot afford a lawyer, the court will appoint one to represent you. To get a court-appointed lawyer you must contact: (explain local procedure) .

3. At the hearing, you have the right to speak on your own behalf, to introduce evidence, to examine witnesses, and to receive a decision based solely on the evidence presented to the judge.

You should be present at this hearing.

You may call (insert agency) for more information about your child. The agency's name and telephone number are (insert name and telephone number) .""

On page 1, line 2 of the title, after "relationship;" strike the remainder of the title and insert "and reenacting and amending RCW 13.34.130 and 13.34.180."

There being no objection, the Conference Committee recommendation on Engrossed Substitute Senate Bill No. 5491 was adopted.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5491 as recommended by the Conference Committee.

Representatives Boldt and Tokuda spoke in favor of the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5491, as recommended by the Conference Committee and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

Engrossed Substitute Senate Bill No. 5491, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

SSB 5867 Date: April 24, 1997

Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE SENATE BILL NO. 5867, allowing special excise taxes in certain cities and towns for tourism promotion, have had the same under consideration and we recommend that:

The House Committee on Trade and Economic Development amendment (H2970.2) be adopted with the attached amendments (5867-S AMH CONF LONG 5); and

that the bill do pass as amended by the Conference Committee.

On page 2 of the amendment, after line 9, strike all of subsection (7) and insert:

"(7) "Tourism-related facility" means real or tangible personal property with a usable life of three or more years, or constructed with volunteer labor, and used to support tourism, performing arts, or to accommodate tourist activities."

On page 2 of the amendment, after line 16, strike all of section 3 and insert the following:

"NEW SECTION. Sec. 3. A new section is added to chapter 67.28 RCW to read as follows:

(1) The legislative body of any municipality may impose an excise tax on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW. The rate of tax shall not exceed the lesser of four percent or a rate that, when combined with all other taxes imposed upon sales of lodging within the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals twelve percent. A tax under this chapter shall not be imposed in increments smaller than tenths of a percent.

(2) Notwithstanding subsection (1) of this section:

(a) If a municipality imposed taxes under this chapter and RCW 67.40.100 with a total rate exceeding four percent on January 1, 1998, the rate of tax imposed under this chapter by the municipality shall not exceed the total rate imposed by the municipality under this chapter and RCW 67.40.100 on January 1, 1998.

(b) If a city or town, other than a municipality described in (a) of this subsection, is located in a county that imposed taxes under this chapter with a total rate of four percent or more on January 1, 1997, the rate of tax imposed under this chapter by the city or town shall not exceed two percent.

(c) If a city has a population of four hundred thousand or more and is located in a county with a population of one million or more, the rate of tax imposed under this chapter by the city shall not exceed the lesser of four percent or a rate that, when combined with all other taxes imposed upon sales of lodging in the municipality under this chapter and chapters 36.100, 67.40, 82.08, and 82.14 RCW, equals fifteen and two-tenths percent.

(3) Except as provided in RCW 67.28.180, any county ordinance or resolution adopted under this section shall contain a provision allowing a credit against the county tax for the full amount of any city or town tax imposed under this section upon the same taxable event.

(4) Tax imposed under this section on a sale of lodging shall be credited against the amount of sales tax due to the state under chapter 82.08 RCW on the same sale of lodging, but the total credit for taxes imposed by all municipalities on a sale of lodging shall not exceed the amount that would be imposed under a two percent tax under this section. This subsection does not apply to taxes which are credited against the state sales tax under RCW 67.28.180.

On page 3 of the amendment, line 35, after "municipality" insert "with a population of five thousand or more"

On page 4 of the amendment, beginning on line 2, after "authority." strike everything through "chapter." on line 6 and insert "The committee membership shall include: (a) At least two members who are representatives of businesses required to collect tax under this chapter; and (b) at least two members who are persons involved in activities authorized to be funded by revenue received under this chapter. Persons who are eligible for appointment under (a) of this subsection are not eligible for appointment under (b) of this subsection. Persons who are eligible for appointment under (b) of this subsection are not eligible for appointment under (a) of this subsection."

On page 23 of the amendment, line 22, strike "January" and insert "April"

There being no objection, the Conference Committee recommendation on Substitute Senate Bill No. 5867 was adopted.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Substitute Senate Bill No. 5867 as recommended by the Conference Committee.

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

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5867, as recommended by the Conference Committee 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, Blalock, Boldt, Buck, Bush, Butler, Cairnes, Carlson, Carrell, Chandler, Chopp, Clements, Cody, Cole, Constantine, Conway, Cooke, Cooper, Costa, DeBolt, Delvin, Dickerson, Doumit, Dunn, Dunshee, Dyer, Fisher, 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, Smith, Sommers, D., Sommers, H., Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Wood, Zellinsky and Mr. Speaker - 93.

Voting nay: Representatives Benson, Crouse, Kessler and Sterk - 4.

Excused: Representative Skinner - 1.

Substitute Senate Bill No. 5867, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

2SSB 5886 Date: April 24, 1997

Includes "new item": YES

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SECOND SUBSTITUTE SENATE BILL NO. 5886, proving a stable funding source for fisheries enhancement and habitat restoration, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached H3335.2) be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

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

(a) Currently, many of the salmon stocks on the Washington coast and in Puget Sound are severely depressed and may soon be listed under the federal endangered species act.

(b) Immediate action is needed to reverse the severe decline of this resource and ensure its very survival.

(c) The cooperation and participation of private landowners is crucial in efforts to restore and enhance salmon populations.

(d) Regional fisheries enhancement groups have been exceptionally successful in their efforts to work with private landowners to restore and enhance salmon habitat on private lands.

(e) State funding for regional fisheries enhancement groups has been declining and is a significant limitation to current fisheries enhancement and habitat restoration efforts.

(f) Therefore, a stable funding source is essential to the success of the regional enhancement groups and their efforts to work cooperatively with private landowners to restore salmon resources.

(2) The legislature further finds that:

(a) The increasing population and continued development throughout the state, and the transportation system needed to serve this growth, have exacerbated problems associated with culverts, creating barriers to fish passage.

(b) These barriers obstruct habitat and have resulted in reduced production and survival of anadromous and resident fish at a time when salmonid stocks continue to decline.

(c) Current state laws do not appropriately direct resources for the correction of fish passage obstructions related to transportation facilities.

(d) Current fish passage management efforts related to transportation projects lack necessary coordination on a watershed, regional, and state-wide basis, have inadequate funding, and fail to maximize use of available resources.

(e) Therefore, the legislature finds that the department of transportation and the department of fish and wildlife should work with state, tribal, local government, and volunteer entities to develop a coordinated, watershed-based fish passage barrier removal program.

NEW SECTION. Sec. 2. A new section is added to chapter 75.50 RCW to read as follows:

The department may provide start-up funds to regional fisheries enhancement groups for costs associated with any enhancement project. The regional fisheries enhancement group advisory board and the department shall develop guidelines for providing funds to the regional fisheries enhancement groups.

NEW SECTION. Sec. 3. A new section is added to chapter 75.50 RCW to read as follows:

The regional fisheries enhancement salmonid recovery account is created in the state treasury. All receipts from federal sources and moneys from state sources specified by law must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for the sole purpose of fisheries enhancement and habitat restoration by regional fisheries enhancement groups.

NEW SECTION. Sec. 4. The regional fisheries enhancement group advisory board shall conduct a study of federal, state, and local permitting requirements for fisheries enhancement and habitat restoration projects. The study shall identify redundant, conflicting, or duplicative permitting requirements and rules, and shall make recommendations for streamlining and improving the permitting process. The results of the study shall be reported to the senate natural resources and parks committee and the house of representatives natural resources committee by November 1, 1997.

Sec. 5. RCW 75.50.080 and 1993 sp.s. c 2 s 47 are each amended to read as follows:

Regional fisheries enhancement groups, consistent with the long-term regional policy statements developed under RCW 75.50.020, shall seek to:

(1) Enhance the salmon and steelhead resources of the state;

(2) Maximize volunteer efforts and private donations to improve the salmon and steelhead resources for all citizens;

(3) Assist the department in achieving the goal to double the state-wide salmon and steelhead catch by the year 2000 ((under chapter 214, Laws of 1988)); and

(4) Develop projects designed to supplement the fishery enhancement capability of the department.

Sec. 6. RCW 75.50.160 and 1995 c 367 s 2 are each amended to read as follows:

The ((department's habitat division shall work with)) department and the department of transportation shall convene a fish passage barrier removal task force. The task force shall consist of one representative each from the department, the department of transportation, the department of ecology, tribes, cities, counties, ((and)) a business organization, an environmental organization, regional fisheries enhancement groups, and other interested entities as deemed appropriate by the cochairs. The persons representing the department and the department of transportation shall serve as cochairs of the task force and shall appoint members to the task force. The task force shall make recommendations to ((develop a)) expand the program in RCW 75.50.170 to identify and expedite the removal of human-made or caused impediments to anadromous fish passage in the most efficient manner practical. Program recommendations shall include a funding mechanism and other necessary mechanisms to coordinate and prioritize state, tribal, local, and volunteer efforts within each water resource inventory area. A priority shall be given to projects that immediately increase access to available and improved spawning and rearing habitat for depressed, threatened, and endangered stocks. The department or the department of transportation may contract with cities and counties to assist in the identification and removal of impediments to anadromous fish passage.

A report on the ((progress of impediment identification and removal and the need for)) recommendations to develop a program to identify and remove fish passage barriers and any additional legislative action needed to implement the program shall be submitted to the ((senate and the house of representatives natural resources)) appropriate standing committees of the legislature no later than ((January 1, 1996)) December 1, 1997."

On page 1, line 1 of the title, after "program;" strike the remainder of the title and insert "amending RCW 75.50.080 and 75.50.160; adding new sections to chapter 75.50 RCW; and creating new sections."

There being no objection, the Conference Committee recommendation on Second Substitute Senate Bill No. 5886 was adopted.

FINAL PASSAGE OF SENATE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of Second Substitute Senate Bill No. 5886 as recommended by the Conference Committee.

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

ROLL CALL

The Clerk called the roll on the final passage of Second Substitute Senate Bill No. 5886, as recommended by the Conference Committee and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

Second Substitute Senate Bill No. 5886, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

April 25, 1997

Mr. Speaker:

The Senate has adopted the report of the conference committee on HOUSE BILL NO. 1054, and passed the bill as recommended by the Conference Committee,

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 28B.10.821 and 1996 c 107 s 1 are each amended to read as follows:

The state educational trust fund is hereby established in the state treasury. The primary purpose of the trust is to pledge state-wide available college student assistance to needy or disadvantaged students, especially middle and high school youth, considered at-risk of dropping out of secondary education who participate in board-approved early awareness and outreach programs and who enter any accredited Washington institution of postsecondary education within two years of high school graduation.

The board shall deposit refunds and recoveries of student financial aid funds expended in prior ((biennia)) fiscal periods in such account. The board may also deposit moneys that have been contributed from other state, federal, or private sources.

Expenditures from the fund shall be for financial aid to needy or disadvantaged students. The board may annually expend such sums from the fund as may be necessary to fulfill the purposes of this section, including not more than three percent for the costs to administer aid programs supported by the fund. All earnings of investments of balances in the state educational trust fund shall be credited to the trust fund. Expenditures from the fund shall not be subject to appropriation but are subject to allotment procedures under chapter 43.88 RCW."

On page 1, line 1 of the title, after "fund;" strike the remainder of the title and insert "and amending RCW 28B.10.821."

and the same is herewith transmitted.

Mike O’Connell, Secretary

There being no objection, the Conference Committee recommendation on House Bill No. 1054 was adopted.

FINAL PASSAGE OF HOUSE BILL

AS RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington stated the question before the House to be final passage of House Bill No. 1054 as recommended by the Conference Committee.

Representatives Carlson and Mason spoke in favor of the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 1054, as recommended by the Conference Committee and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

House Bill No. 1054, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

April 25, 1997

Mr. Speaker:

The Senate has adopted the report of the Conference Committee on ENGROSSED HOUSE BILL NO. 1581, and passed the bill as recommended by the Conference Committee,

and the same is herewith transmitted.

Mike O’Connell, Secretary

CONFERENCE COMMITTEE REPORT

EHB 1581 April 24, 1997

Includes "NEW ITEM": YES

Mr. President:

Mr. Speaker:

We of your CONFERENCE COMMITTEE, to whom was referred ENGROSSED HOUSE BILL NO. 1581, disruptive students/offenders, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached 1581.E AMC CONF H3317.1) be adopted, and

and that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 13.40.160 and 1995 c 395 s 7 are each amended to read as follows:

(1) When the respondent is found to be a serious offender, the court shall commit the offender to the department for the standard range of disposition for the offense, as indicated in option A of schedule D-3, RCW 13.40.0357 except as provided in subsections (5) and (6) of this section.

If the court concludes, and enters reasons for its conclusion, that disposition within the standard range would effectuate a manifest injustice the court shall impose a disposition outside the standard range, as indicated in option B of schedule D-3, RCW 13.40.0357. The court's finding of manifest injustice shall be supported by clear and convincing evidence.

A disposition outside the standard range shall be determinate and shall be comprised of confinement or community supervision, or a combination thereof. When a judge finds a manifest injustice and imposes a sentence of confinement exceeding thirty days, the court shall sentence the juvenile to a maximum term, and the provisions of RCW 13.40.030(2) shall be used to determine the range. A disposition outside the standard range is appealable under RCW 13.40.230 by the state or the respondent. A disposition within the standard range is not appealable under RCW 13.40.230.

(2) Where the respondent is found to be a minor or first offender, the court shall order that the respondent serve a term of community supervision as indicated in option A or option B of schedule D-1, RCW 13.40.0357 except as provided in subsections (5) and (6) of this section. If the court determines that a disposition of community supervision would effectuate a manifest injustice the court may impose another disposition under option C of schedule D-1, RCW 13.40.0357. Except as provided in subsection (5) of this section, a disposition other than a community supervision may be imposed only after the court enters reasons upon which it bases its conclusions that imposition of community supervision would effectuate a manifest injustice. When a judge finds a manifest injustice and imposes a sentence of confinement exceeding thirty days, the court shall sentence the juvenile to a maximum term, and the provisions of RCW 13.40.030(2) shall be used to determine the range. The court's finding of manifest injustice shall be supported by clear and convincing evidence.

Except for disposition of community supervision or a disposition imposed pursuant to subsection (5) of this section, a disposition may be appealed as provided in RCW 13.40.230 by the state or the respondent. A disposition of community supervision or a disposition imposed pursuant to subsection (5) of this section may not be appealed under RCW 13.40.230.

(3) Where a respondent is found to have committed an offense for which the respondent declined to enter into a diversion agreement, the court shall impose a term of community supervision limited to the conditions allowed in a diversion agreement as provided in RCW 13.40.080(2).

(4) If a respondent is found to be a middle offender:

(a) The court shall impose a determinate disposition within the standard range(s) for such offense, as indicated in option A of schedule D-2, RCW 13.40.0357 except as provided in subsections (5) and (6) of this section. If the standard range includes a term of confinement exceeding thirty days, commitment shall be to the department for the standard range of confinement; or

(b) If the middle offender has less than 110 points, the court shall impose a determinate disposition of community supervision and/or up to thirty days confinement, as indicated in option B of schedule D-2, RCW 13.40.0357 in which case, if confinement has been imposed, the court shall state either aggravating or mitigating factors as set forth in RCW 13.40.150. If the middle offender has 110 points or more, the court may impose a disposition under option A and may suspend the disposition on the condition that the offender serve up to thirty days of confinement and follow all conditions of community supervision. If the offender violates any condition of the disposition including conditions of a probation bond, the court may impose sanctions pursuant to RCW 13.40.200 or may revoke the suspension and order execution of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

(c) Only if the court concludes, and enters reasons for its conclusions, that disposition as provided in subsection (4)(a) or (b) of this section would effectuate a manifest injustice, the court shall sentence the juvenile to a maximum term, and the provisions of RCW 13.40.030(2) shall be used to determine the range. The court's finding of manifest injustice shall be supported by clear and convincing evidence.

(d) A disposition pursuant to subsection (4)(c) of this section is appealable under RCW 13.40.230 by the state or the respondent. A disposition pursuant to subsection (4)(a) or (b) of this section is not appealable under RCW 13.40.230.

(5) When a serious, middle, or minor first offender is found to have committed a sex offense, other than a sex offense that is also a serious violent offense as defined by RCW 9.94A.030, and has no history of a prior sex offense, the court, on its own motion or the motion of the state or the respondent, may order an examination to determine whether the respondent is amenable to treatment.

The report of the examination shall include at a minimum the following: The respondent's version of the facts and the official version of the facts, the respondent's offense history, an assessment of problems in addition to alleged deviant behaviors, the respondent's social, educational, and employment situation, and other evaluation measures used. The report shall set forth the sources of the evaluator's information.

The examiner shall assess and report regarding the respondent's amenability to treatment and relative risk to the community. A proposed treatment plan shall be provided and shall include, at a minimum:

(a)(i) Frequency and type of contact between the offender and therapist;

(ii) Specific issues to be addressed in the treatment and description of planned treatment modalities;

(iii) Monitoring plans, including any requirements regarding living conditions, lifestyle requirements, and monitoring by family members, legal guardians, or others;

(iv) Anticipated length of treatment; and

(v) Recommended crime-related prohibitions.

The court on its own motion may order, or on a motion by the state shall order, a second examination regarding the offender's amenability to treatment. The evaluator shall be selected by the party making the motion. The defendant shall pay the cost of any second examination ordered unless the court finds the defendant to be indigent in which case the state shall pay the cost.

After receipt of reports of the examination, the court shall then consider whether the offender and the community will benefit from use of this special sex offender disposition alternative and consider the victim's opinion whether the offender should receive a treatment disposition under this section. If the court determines that this special sex offender disposition alternative is appropriate, then the court shall impose a determinate disposition within the standard range for the offense, and the court may suspend the execution of the disposition and place the offender on community supervision for up to two years. As a condition of the suspended disposition, the court may impose the conditions of community supervision and other conditions, including up to thirty days of confinement and requirements that the offender do any one or more of the following:

(b)(i) Devote time to a specific education, employment, or occupation;

(ii) Undergo available outpatient sex offender treatment for up to two years, or inpatient sex offender treatment not to exceed the standard range of confinement for that offense. A community mental health center may not be used for such treatment unless it has an appropriate program designed for sex offender treatment. The respondent shall not change sex offender treatment providers or treatment conditions without first notifying the prosecutor, the probation counselor, and the court, and shall not change providers without court approval after a hearing if the prosecutor or probation counselor object to the change;

(iii) Remain within prescribed geographical boundaries and notify the court or the probation counselor prior to any change in the offender's address, educational program, or employment;

(iv) Report to the prosecutor and the probation counselor prior to any change in a sex offender treatment provider. This change shall have prior approval by the court;

(v) Report as directed to the court and a probation counselor;

(vi) Pay all court-ordered legal financial obligations, perform community service, or any combination thereof;

(vii) Make restitution to the victim for the cost of any counseling reasonably related to the offense; ((or))

(viii) Comply with the conditions of any court-ordered probation bond; or

(ix) The court shall order that the offender may not attend the public or approved private elementary, middle, or high school attended by the victim or the victim's siblings. The parents or legal guardians of the offender are responsible for transportation or other costs associated with the offender's change of school that would otherwise be paid by the school district. The court shall send notice of the disposition and restriction on attending the same school as the victim or victim's siblings to the public or approved private school the juvenile will attend, if known, or if unknown, to the approved private schools and the public school district board of directors of the district in which the juvenile resides or intends to reside. This notice must be sent at the earliest possible date but not later than ten calendar days after entry of the disposition.

The sex offender treatment provider shall submit quarterly reports on the respondent's progress in treatment to the court and the parties. The reports shall reference the treatment plan and include at a minimum the following: Dates of attendance, respondent's compliance with requirements, treatment activities, the respondent's relative progress in treatment, and any other material specified by the court at the time of the disposition.

At the time of the disposition, the court may set treatment review hearings as the court considers appropriate.

Except as provided in this subsection (5), after July 1, 1991, examinations and treatment ordered pursuant to this subsection shall only be conducted by sex offender treatment providers certified by the department of health pursuant to chapter 18.155 RCW. A sex offender therapist who examines or treats a juvenile sex offender pursuant to this subsection does not have to be certified by the department of health pursuant to chapter 18.155 RCW if the court finds that: (A) The offender has already moved to another state or plans to move to another state for reasons other than circumventing the certification requirements; (B) no certified providers are available for treatment within a reasonable geographical distance of the offender's home; and (C) the evaluation and treatment plan comply with this subsection (5) and the rules adopted by the department of health.

If the offender violates any condition of the disposition or the court finds that the respondent is failing to make satisfactory progress in treatment, the court may revoke the suspension and order execution of the disposition or the court may impose a penalty of up to thirty days' confinement for violating conditions of the disposition. The court may order both execution of the disposition and up to thirty days' confinement for the violation of the conditions of the disposition. The court shall give credit for any confinement time previously served if that confinement was for the offense for which the suspension is being revoked.

For purposes of this section, "victim" means any person who has sustained emotional, psychological, physical, or financial injury to person or property as a direct result of the crime charged. "Victim" may also include a known parent or guardian of a victim who is a minor child unless the parent or guardian is the perpetrator of the offense.

(6) RCW 13.40.193 shall govern the disposition of any juvenile adjudicated of possessing a firearm in violation of RCW 9.41.040(1)(((e))) (b)(iii) or any crime in which a special finding is entered that the juvenile was armed with a firearm.

(7) Whenever a juvenile offender is entitled to credit for time spent in detention prior to a dispositional order, the dispositional order shall specifically state the number of days of credit for time served.

(8) Except as provided for in subsection (4)(b) or (5) of this section or RCW 13.40.125, the court shall not suspend or defer the imposition or the execution of the disposition.

(9) In no case shall the term of confinement imposed by the court at disposition exceed that to which an adult could be subjected for the same offense.

Sec. 2. RCW 13.40.215 and 1995 c 324 s 1 are each amended to read as follows:

(1)(a) Except as provided in subsection (2) of this section, at the earliest possible date, and in no event later than thirty days before discharge, parole, or any other authorized leave or release, or before transfer to a community residential facility, the secretary shall send written notice of the discharge, parole, authorized leave or release, or transfer of a juvenile found to have committed a violent offense, a sex offense, or stalking, to the following:

(i) The chief of police of the city, if any, in which the juvenile will reside;

(ii) The sheriff of the county in which the juvenile will reside; and

(iii) The approved private schools and the common school district board of directors of the district in which the juvenile intends to reside or the approved private school or public school district in which the juvenile last attended school, whichever is appropriate, except when it has been determined by the department that the juvenile is twenty-one years old; is not required to return to school under chapter 28A.225 RCW; or will be in the community for less than seven consecutive days on approved leave and will not be attending school during that time.

(b) After the effective date of this act, the department shall send a written notice to approved private and public schools under the same conditions identified in subsection (1)(a)(iii) of this section when a juvenile adjudicated of any offense is transferred to a community residential facility.

(c) The same notice as required by (a) of this subsection shall be sent to the following, if such notice has been requested in writing about a specific juvenile:

(i) The victim of the offense for which the juvenile was found to have committed or the victim's next of kin if the crime was a homicide;

(ii) Any witnesses who testified against the juvenile in any court proceedings involving the offense; and

(iii) Any person specified in writing by the prosecuting attorney.

Information regarding victims, next of kin, or witnesses requesting the notice, information regarding any other person specified in writing by the prosecuting attorney to receive the notice, and the notice are confidential and shall not be available to the juvenile. The notice to the chief of police or the sheriff shall include the identity of the juvenile, the residence where the juvenile will reside, the identity of the person, if any, responsible for supervising the juvenile, and the time period of any authorized leave.

(((c))) (d) The thirty-day notice requirements contained in this subsection shall not apply to emergency medical furloughs.

(((d))) (e) The existence of the notice requirements in this subsection will not require any extension of the release date in the event the release plan changes after notification.

(2)(a) If a juvenile found to have committed a violent offense, a sex offense, or stalking escapes from a facility of the department, the secretary shall immediately notify, by the most reasonable and expedient means available, the chief of police of the city and the sheriff of the county in which the juvenile resided immediately before the juvenile's arrest. If previously requested, the secretary shall also notify the witnesses and the victim of the offense which the juvenile was found to have committed or the victim's next of kin if the crime was a homicide. If the juvenile is recaptured, the secretary shall send notice to the persons designated in this subsection as soon as possible but in no event later than two working days after the department learns of such recapture.

(b) The secretary may authorize a leave, for a juvenile found to have committed a violent offense, a sex offense, or stalking, which shall not exceed forty-eight hours plus travel time, to meet an emergency situation such as a death or critical illness of a member of the juvenile's family. The secretary may authorize a leave, which shall not exceed the time medically necessary, to obtain medical care not available in a juvenile facility maintained by the department. Prior to the commencement of an emergency or medical leave, the secretary shall give notice of the leave to the appropriate law enforcement agency in the jurisdiction in which the juvenile will be during the leave period. The notice shall include the identity of the juvenile, the time period of the leave, the residence of the juvenile during the leave, and the identity of the person responsible for supervising the juvenile during the leave. If previously requested, the department shall also notify the witnesses and victim of the offense which the juvenile was found to have committed or the victim's next of kin if the offense was a homicide.

In case of an emergency or medical leave the secretary may waive all or any portion of the requirements for leaves pursuant to RCW 13.40.205 (2)(a), (3), (4), and (5).

(3) If the victim, the victim's next of kin, or any witness is under the age of sixteen, the notice required by this section shall be sent to the parents or legal guardian of the child.

(4) The secretary shall send the notices required by this chapter to the last address provided to the department by the requesting party. The requesting party shall furnish the department with a current address.

(5) Upon discharge, parole, or other authorized leave or release, a convicted juvenile sex offender shall not attend a public or approved private elementary, middle, or high school that is attended by a victim or a sibling of a victim of the sex offender. The parents or legal guardians of the convicted juvenile sex offender shall be responsible for transportation or other costs associated with or required by the sex offender's change in school that otherwise would be paid by a school district. Upon discharge, parole, or other authorized leave or release of a convicted juvenile sex offender, the secretary shall send written notice of the discharge, parole, or other authorized leave or release and the requirements of this subsection to the common school district board of directors of the district in which the sex offender intends to reside or the district in which the sex offender last attended school, whichever is appropriate. The secretary shall send a similar notice to any approved private school the juvenile will attend, if known, or if unknown, to the approved private schools within the district the juvenile resides or intends to reside.

(6) For purposes of this section the following terms have the following meanings:

(a) "Violent offense" means a violent offense under RCW 9.94A.030;

(b) "Sex offense" means a sex offense under RCW 9.94A.030;

(d) "Next of kin" means a person's spouse, parents, siblings, and children.

Sec. 3. RCW 28A.225.225 and 1995 c 52 s 3 are each amended to read as follows:

(1) All districts accepting applications from nonresident students or from students receiving home-based instruction for admission to the district's schools shall consider equally all applications received. Each school district shall adopt a policy establishing rational, fair, and equitable standards for acceptance and rejection of applications by June 30, 1990. The policy may include rejection of a nonresident student((s)) if:

(a) Acceptance of ((these)) a nonresident student((s)) would result in the district experiencing a financial hardship;

(b) The student's disciplinary records indicate a history of violent or disruptive behavior or gang membership; or

(c) The student has been expelled or suspended from a public school for more than ten consecutive days. Any policy allowing for readmission of expelled or suspended students under this subsection (1)(c) must apply uniformly to both resident and nonresident applicants.

For purposes of subsection (1)(b) of this section, "gang" means a group which: (i) Consists of three or more persons; (ii) has identifiable leadership; and (iii) on an ongoing basis, regularly conspires and acts in concert mainly for criminal purposes.

(2) The district shall provide to applicants written notification of the approval or denial of the application in a timely manner. If the application is rejected, the notification shall include the reason or reasons for denial and the right to appeal under RCW 28A.225.230(3).

Sec. 4. RCW 28A.600.010 and 1990 c 33 s 496 are each amended to read as follows:

Every board of directors, unless otherwise specifically provided by law, shall:

(1) Enforce the rules ((and regulations)) prescribed by the superintendent of public instruction and the state board of education for the government of schools, pupils, and certificated employees.

(2) Adopt and make available to each pupil, teacher and parent in the district reasonable written rules ((and regulations)) regarding pupil conduct, discipline, and rights, including but not limited to short-term suspensions as referred to in RCW 28A.305.160 and ((long-term)) suspensions in excess of ten consecutive days. Such rules ((and regulations)) shall not be inconsistent with any of the following: Federal statutes and regulations, state statutes, common law ((or)), the rules ((and regulations)) of the superintendent of public instruction ((or)), and the state board of education ((and)). The board's rules shall include such substantive and procedural due process guarantees as prescribed by the state board of education under RCW 28A.305.160. Commencing with the 1976-77 school year, when such rules ((and regulations)) are made available to each pupil, teacher, and parent, they shall be accompanied by a detailed description of rights, responsibilities, and authority of teachers and principals with respect to the discipline of pupils as prescribed by state statutory law, superintendent of public instruction, and state board of education rules ((and regulations)) and rules and regulations of the school district.

For the purposes of this subsection, computation of days included in "short-term" and "long-term" suspensions shall be determined on the basis of consecutive school days.

(3) Suspend, expel, or discipline pupils in accordance with RCW 28A.305.160.

Sec. 5. RCW 28A.600.420 and 1995 c 335 s 304 are each amended to read as follows:

(1) Any elementary or secondary school student who is determined to have carried a firearm onto, or to have possessed a firearm on, public elementary or secondary school premises, public school-provided transportation, or areas of facilities while being used exclusively by public schools, shall be expelled from school for not less than one year under RCW 28A.600.010. The superintendent of the school district, educational service district, state school for the deaf, or state school for the blind may modify the expulsion of a student on a case-by-case basis.

(2) For purposes of this section, "firearm" means a firearm as defined in 18 U.S.C. Sec. 921, and a "firearm" as defined in RCW 9.41.010.

(3) This section shall be construed in a manner consistent with the individuals with disabilities education act, 20 U.S.C. Sec. 1401 et seq.

(4) Nothing in this section prevents a public school district, educational service district, the state school for the deaf, or the state school for the blind if it has expelled a student from such student's regular school setting from providing educational services to the student in an alternative setting.

(5) This section does not apply to:

(a) Any student while engaged in military education authorized by school authorities in which rifles are used but not other firearms; or

(b) Any student while involved in a convention, showing, demonstration, lecture, or firearms safety course authorized by school authorities in which the rifles of collectors or instructors are handled or displayed but not other firearms; or

(6) A school district may suspend or expel a student for up to one year subject to subsections (1), (3), (4), and (5) of this section, if the student acts with malice as defined under RCW 9A.04.110 and displays an instrument that appeared to be a firearm, on public elementary or secondary school premises, public school-provided transportation, or areas of facilities while being used exclusively by public schools.

NEW SECTION. Sec. 6. A new section is added to chapter 28A.150 RCW to read as follows:

(1) The board of directors of school districts may contract with alternative educational service providers for eligible students. Alternative educational service providers that the school district may contract with include, but are not limited to:

(a) Other schools;

(b) Alternative education programs not operated by the school district;

(d) Skills centers;

(e) Dropout prevention programs; or

(f) Other public or private organizations, excluding sectarian or religious organizations.

(2) Eligible students include students who are likely to be expelled or who are enrolled in the school district but have been suspended, are academically at risk, or who have been subject to repeated disciplinary actions due to behavioral problems.

(3) If a school district board of directors chooses to initiate specialized programs for students at risk of expulsion or who are failing academically by contracting out with alternative educational service providers identified in subsection (1) of this section, the school district board of directors and the organization must specify the specific learning standards that students are expected to achieve. Placement of the student shall be jointly determined by the school district, the student's parent or legal guardian, and the alternative educational service provider.

(4) For the purpose of this section, the superintendent of public instruction shall adopt rules for reporting and documenting enrollment. Students may reenter at the grade level appropriate to the student's ability. Students who are sixteen years of age or older may take the GED test.

(5) The board of directors of school districts may require that students who would otherwise be suspended or expelled attend schools or programs listed in subsection (1) of this section as a condition of continued enrollment in the school district.

Sec. 7. RCW 28A.205.020 and 1993 c 211 s 2 are each amended to read as follows:

Only eligible common school dropouts shall be enrolled in a certified education center for reimbursement by the superintendent of public instruction as provided in RCW 28A.205.040. ((No)) A person ((shall be considered)) is not an eligible common school dropout ((who)) if: (1) The person has completed high school, (2) ((who)) the person has not reached his or her ((thirteenth)) twelfth birthday or has passed his or her twentieth birthday, ((or)) (3) the person shows proficiency beyond the high school level in a test approved by the superintendent of public instruction to be given as part of the initial diagnostic procedure, or (4) ((until)) less than one month has passed after ((he or she)) the person has dropped out of any common school and the education center has not received written verification from a school official of the common school last attended in this state that ((such)) the person is no longer in attendance at ((such)) the school((, unless such center has been requested to admit such person by written communication of)). A person is an eligible common school dropout even if one month has not passed since the person dropped out if the board of directors or its designee, of that common school, ((or unless such)) requests the center to admit the person because the person has dropped out or because the person is unable to attend a particular common school because of disciplinary reasons, including suspension and/or expulsion ((therefrom)). The fact that any person may be subject to RCW 28A.225.010 through 28A.225.150, 28A.200.010, and 28A.200.020 shall not affect his or her qualifications as an eligible common school dropout under this chapter.

Sec. 8. RCW 28A.205.080 and 1993 c 211 s 7 are each amended to read as follows:

The legislature recognizes that education centers provide a necessary and effective service for students who have dropped out of common school programs. Education centers have demonstrated success in preparing such youth for productive roles in society and are an integral part of the state's program to address the needs of students who have dropped out of school. The superintendent of public instruction shall distribute funds, consistent with legislative appropriations, allocated specifically for education centers in accord with chapter 28A.205 RCW. The legislature encourages school districts to explore cooperation with education centers pursuant to section 6 of this act.

NEW SECTION. Sec. 9. 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."

On page 1, line 1 of the title, after "schools;" strike the remainder of the title and insert "amending RCW 13.40.160, 13.40.215, 28A.225.225, 28A.600.010, 28A.600.420, 28A.205.020, and 28A.205.080; adding a new section to chapter 28A.150 RCW; and prescribing penalties."

There being no objection, the House adopted the Report of the Conference Committee on Engrossed House Bill No. 1581, and advanced the bill to final passage.

FINAL PASSAGE OF HOUSE BILL AS

RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Engrossed House Bill No. 1581 as recommended by the Conference Committee.

Representatives Sterk and Quall spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 1581 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

Engrossed House Bill No. 1581, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

MESSAGES FROM THE SENATE

April 25, 1997

Mr. Speaker:

The President has signed:

SUBSTITUTE HOUSE BILL NO. 1277,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1423,

SUBSTITUTE HOUSE BILL NO. 1592,

SUBSTITUTE HOUSE BILL NO. 1657,

SUBSTITUTE HOUSE BILL NO. 2089,

and the same are herewith transmitted.

Mike O’Connell, Secretary

April 25, 1997

Mr. Speaker:

The President has signed:

SUBSTITUTE SENATE BILL NO. 5149,

SUBSTITUTE SENATE BILL NO. 5511,

and the same are herewith transmitted.

Mike O’Connell, Secretary

April 25, 1997

Mr. Speaker:

The Senate grants the request of the House for a conference on ENGROSSED THIRD SUBSTITUTE HOUSE BILL NO. 3900. The President has appointed the following members as Conferees:

Senators Roach, Hargrove and Johnson

and the same is herewith transmitted.

Mike O’Connell, Secretary

April 25, 1997

Mr. Speaker:

The Senate has receded from its amendments to HOUSE BILL NO. 1708, and passed the bill without said amendment(s),

and the same is herewith transmitted.

Mike O’Connell, Secretary

April 25, 1997

Mr. Speaker:

The Senate grants the request of the House for a conference on SECOND SUBSTITUTE HOUSE BILL NO. 1201. The President has appointed the following members as Conferees:

Senators Horn, Heavey and Schow

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

CONFERENCE COMMITTEE REPORT

SB 5650 Date: April 24, 1997

Includes "new item": NO

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SENATE BILL NO. 5650, allowing cities to assume jurisdiction over water or sewer districts, have had the same under consideration and we recommend that:

All previous amendments not be adopted, and the striking amendment by the Conference Committee (see attached H-3337.1/97)be adopted, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 35.13A RCW to read as follows:

The board of commissioners of a water-sewer district, with fewer than one hundred twenty customers on the effective date of this act, may by resolution declare that it is in the best interests of the district for a city, with a population greater than one hundred thousand on the effective date of this act, to assume jurisdiction of the district. None of the territory or assessed valuation of the district need be included within the corporate boundaries of the city. If the city legislative body agrees to assume jurisdiction of the district, the district and the city shall enter into a contract under RCW 35.13A.070, acceptable to both the district and the city, to carry out the assumption. The contract must provide for the transfer to the city of all real and personal property, franchises, rights, assets, taxes levied but not collected for the district for other than indebtedness, water and sewer lines, and all other facilities and equipment of the district. The transfers are subject to all financial, statutory, or contractual obligations of the district for the security or performance of which the property may have been pledged. The city may manage, control, maintain, and operate the property, facilities, and equipment and fix and collect service and other charges from owners and occupants of properties so served by the city. However, the actions of the city are subject to any outstanding indebtedness, bonded or otherwise, of the district payable from taxes, assessments, or revenues of any kind or nature and to any other contractual obligations of the district, including but not limited to the contract entered into by the city and the district under RCW 35.13A.070.

Under the contract, the city may assume the obligation of paying the district indebtedness and of levying and collecting or causing to be collected the district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of the indebtedness, according to all terms, conditions, and covenants incident to the indebtedness. The city shall assume and perform all other outstanding contractual obligations of the district in accordance with all of their terms, conditions, and covenants. The assumption does not impair the obligation of any indebtedness or other contractual obligation entered into after the effective date of this act. Until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property in it, continue to be liable for its and their proportionate share of the indebtedness, including outstanding assessments levied by a local improvement district or utility local improvement district within the water-sewer district. The city shall assume the obligation of paying the indebtedness, collecting the assessments and charges, and observing and performing the other district contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied and collected in the district, and causing service and other charges and assessments to be collected from the property or owners or occupants of it, enforcing the collection, and performing all other acts necessary to insure performance of the district's contractual obligations.

When the city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service or other charges have accrued for that purpose but have not been collected by the district before the assumption, the taxes, assessments, and charges collected belong and must be paid to the city and used by the city so far as necessary for payment of indebtedness of the district that existed and was unpaid on the date the city elected to assume the indebtedness. Funds received by the city that have been collected for the purpose of paying bonded or other indebtedness of the district must be used for the purpose for which they were collected and for no other purpose. Outstanding indebtedness must be paid as provided in the bond covenants. The city shall use funds of the district on deposit with the county treasurer at the time of title transfer solely for the benefit of the utility, and shall not transfer them to or use them for the benefit of the city's general fund.

This section expires December 31, 1998.

Sec. 2. RCW 35.13A.070 and 1971 ex.s. c 95 s 7 are each amended to read as follows:

Notwithstanding any provision of this chapter to the contrary, one or more cities and one or more ((water districts or sewer)) districts may, through their legislative authorities, authorize a contract with respect to the rights, powers, duties, and obligation of such cities, or districts with regard to the use and ownership of property, the providing of services, the maintenance and operation of facilities, allocation of cost, financing and construction of new facilities, application and use of assets, disposition of liabilities and debts, the performance of contractual obligations, and any other matters arising out of the inclusion, in whole or in part, of the district or districts within any city or cities, or the assumption by the city of jurisdiction of a district under section 1 of this act. The contract may provide for the furnishing of services by any party thereto and the use of city or district facilities or real estate for such purpose, and may also provide for the time during which such district or districts may continue to exercise any rights, privileges, powers, and functions provided by law for such district or districts as if the district or districts or portions thereof were not included within a city or were not subject to an assumption of jurisdiction under section 1 of this act, including but not by way of limitation, the right to promulgate rules and regulations, to levy and collect special assessments, rates, charges, service charges, and connection fees, ((and)) to adopt and carry out the provisions of a comprehensive plan, and amendments thereto, for a system of improvements, and to issue general obligation bonds or revenue bonds in the manner provided by law. The contract may provide for the transfer to a city of district facilities, property, rights, and powers as provided in RCW 35.13A.030 ((and)), 35.13A.050, and section 1 of this act, whether or not sixty percent or any of the area or assessed valuation of real estate lying within the district or districts is included within such city. The contract may provide that any party thereto may authorize, issue, and sell revenue bonds to provide funds for new water or sewer improvements or to refund any water revenue, sewer revenue, or combined water and sewer revenue bonds outstanding of any city, or district which is a party to such contract if such refunding is deemed necessary, providing such refunding will not increase interest costs. The contract may provide that any party thereto may authorize and issue, in the manner provided by law, general obligation or revenue bonds of like amounts, terms, conditions, and covenants as the outstanding bonds of any other party to the contract, and such new bonds may be substituted or exchanged for such outstanding bonds((: PROVIDED, That)). However, no such exchange or substitution shall be effected in such a manner as to impair the obligation or security of any such outstanding bonds.

Sec. 3. RCW 35.13A.080 and 1971 ex.s. c 95 s 8 are each amended to read as follows:

In any of the cases provided for in RCW 35.13A.020, 35.13A.030, ((and)) 35.13A.050, and section 1 of this act, and notwithstanding any other method of dissolution provided by law, dissolution proceedings may be initiated by either the city or the district, or both, when the legislative body of the city and the governing body of the district agree to, and petition for, dissolution of the district.

The petition for dissolution shall be signed by the chief administrative officer of the city and the district, upon authorization of the legislative body of the city and the governing body of the district, respectively and such petition shall be presented to the superior court of the county in which the city is situated.

If the petition is thus authorized by both the city and district, and title to the property, facilities, and equipment of the district has passed to the city pursuant to action taken under this chapter, all indebtedness and local improvement district or utility local improvement district assessments of the district have been discharged or assumed by and transferred to the city, and the petition contains a statement of the distribution of assets and liabilities mutually agreed upon by the city and the district and a copy of the agreement between such city and the district is attached thereto, a hearing shall not be required and the court shall, if the interests of all interested parties have been protected, enter an order dissolving the district.

In any of the cases provided for in RCW 35.13A.020 ((and)), 35.13A.030, and section 1 of this act, if the petition for an order of dissolution is signed on behalf of the city alone or the district alone, or there is no mutual agreement on the distribution of assets and liabilities, the superior court shall enter an order fixing a hearing date not less than sixty days from the day the petition is filed, and the clerk of the court of the county shall give notice of such hearing by publication in a newspaper of general circulation in the district once a week for three successive weeks and by posting in three public places in the district at least twenty-one days before the hearing. The notice shall set forth the filing of the petition, its purposes, and the date and place of hearing thereon.

After the hearing the court shall enter its order with respect to the dissolution of the district. If the court finds that such district should be dissolved and the functions performed by the city, the court shall provide for the transfer of assets and liabilities to the city. The court may provide for the dissolution of the district upon such conditions as the court may deem appropriate. A certified copy of the court order dissolving the district shall be filed with the county auditor. If the court does not dissolve the district, it shall state the reasons for declining to do so.

NEW SECTION. Sec. 4. A new section is added to chapter 35.51 RCW to read as follows:

Assessments for local improvements in a local improvement district created by a municipality may be pledged and applied when collected to the payment of its obligations under a loan agreement entered into under chapter 39.69 RCW to pay costs of improvements in such a local improvement district.

NEW SECTION. Sec. 5. A new section is added to chapter 35.51 RCW to read as follows:

The authority granted by section 4 of this act is supplemental and in addition to the authority granted by Title 35 RCW and to any other authority granted to cities, towns, or municipal corporations to levy, pledge, and apply special assessments."

In line 1 of the title, after "government;" strike the remainder of the title and insert "amending RCW 35.13A.070 and 35.13A.080; adding a new section to chapter 35.13A RCW; and adding new sections to chapter 35.51 RCW."

There being no objection, the House adopted the Conference Committee report on Senate Bill No. 5650, and advanced the bill to final passage.

FINAL PASSAGE OF HOUSE BILL AS

RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 5650 as recommended by the Conference Committee.

Representatives D. Schmidt and Scott spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Senate Bill No. 5650 as recommended by the Conference Committee, and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

Senate Bill No. 5650, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

April 24, 1997

Mr. Speaker:

The Senate refuses to grant the request of the House for a conference on SUBSTITUTE SENATE BILL NO. 5781, insists on its position regarding the House amendment(s) and again asks the House to recede thereform,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

There being no objection, the House receded from its position Senate Bill No. 5781, and advanced the bill to final passage.

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Senate Bill No. 5781 without House amendments.

Representatives D. Schmidt and Scott spoke in favor of passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5781 without House amendments, and the bill passed the House by the following vote: Yeas - 97, Nays - 0, Absent - 0, Excused - 1.

Excused: Representative Skinner - 1.

Substitute Senate Bill No. 5781, without House amendments, having received the constitutional majority, was declared passed.

CONFERENCE COMMITTEE REPORT

SSB 5336 Date: April 23, 1997

Includes "new item": NO

Mr. Speaker:

Mr. President:

We of your CONFERENCE COMMITTEE, to whom was referred SUBSTITUTE SENATE BILL NO. 5336, clarifying and harmonizing provisions affecting cities and towns, have had the same under consideration, and we recommend that:

House Government Administration Committee amendment as amended (AMH-2999.2) be adopted except for sections 18 and 19, and

that the bill do pass as recommended by the Conference Committee.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 19.16.500 and 1982 c 65 s 1 are each amended to read as follows:

(1) Agencies, departments, taxing districts, political subdivisions of the state, counties, and incorporated cities may retain, by written contract, collection agencies licensed under this chapter for the purpose of collecting public debts owed by any person.

(2) No debt may be assigned to a collection agency unless (a) there has been an attempt to advise the debtor (i) of the existence of the debt and (ii) that the debt may be assigned to a collection agency for collection if the debt is not paid, and (b) at least thirty days have elapsed from the time the notice was sent.

(3) Collection agencies assigned debts under this section shall have only those remedies and powers which would be available to them as assignees of private creditors.

(4) For purposes of this section, the term debt shall include fines, fees, penalties, reasonable costs, assessments, and other debts.

(5) The reasonable costs involved in the collection of the debts through the use of a collection agency are reasonable costs that may be added to and included in the debt to be paid by the debtor.

Sec. 2. RCW 39.30.010 and 1970 ex.s. c 42 s 26 are each amended to read as follows:

Any city or town or metropolitan park district or county or library district may execute an executory conditional sales contract with a county or counties, the state or any of its political subdivisions, the government of the United States, or any private party for the purchase of any real or personal property, or property rights in connection with the exercise of any powers or duties which they now or hereafter are authorized to exercise, if the entire amount of the purchase price specified in such contract does not result in a total indebtedness in excess of three-fourths of one percent of the value of the taxable property in such ((city or town or metropolitan park district or county or)) library district((: PROVIDED, That)) or the maximum amount of nonvoter-approved indebtedness authorized in such county, city, town, or metropolitan park district. If such a proposed contract would result in a total indebtedness in excess of ((three-fourths of one percent of the value of the taxable property of such city or town or metropolitan park district or county or library district, as the case may be)) this amount, a proposition in regard to whether or not such a contract may be executed shall be submitted to the voters for approval or rejection in the same manner that bond issues for capital purposes are submitted to the voters((: PROVIDED FURTHER, That)). Any city or town or metropolitan park district or county or library district may jointly execute contracts authorized by this section, if the entire amount of the purchase price does not result in a joint total indebtedness in excess of ((three-fourths of one percent of the value of the taxable property in such)) the nonvoter-approved indebtedness limitation of any city ((or)), town ((or)), metropolitan park district ((or)), county, or library district that participates in the jointly executed contract. The term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.

Sec. 3. RCW 35.27.070 and 1993 c 47 s 2 are each amended to read as follows:

The government of a town shall be vested in a mayor and a council consisting of five members and a treasurer, all elective; the mayor shall appoint a clerk and a marshal; and may appoint a town attorney, pound master, street superintendent, a civil engineer, and such police and other subordinate officers and employees as may be provided for by ordinance. All appointive officers and employees shall hold office at the pleasure of the mayor, subject to any applicable law, rule, or regulation relating to civil service, and shall not be subject to confirmation by the town council.

Sec. 4. RCW 35.07.040 and 1965 c 7 s 35.07.040 are each amended to read as follows:

((If the applicable census shows a population of less than four thousand,)) The council shall cause an election to be called upon the proposition of disincorporation. If the city or town has any indebtedness or outstanding liabilities, it shall order the election of a receiver at the same time.

Sec. 5. RCW 9.41.050 and 1996 c 295 s 4 are each amended to read as follows:

(1)(a) Except in the person's place of abode or fixed place of business, a person shall not carry a pistol concealed on his or her person without a license to carry a concealed pistol.

(b) Every licensee shall have his or her concealed pistol license in his or her immediate possession at all times that he or she is required by this section to have a concealed pistol license and shall display the same upon demand to any police officer or to any other person when and if required by law to do so. Any violation of this subsection (1)(b) shall be a class 1 civil infraction under chapter ((7.84)) 7.80 RCW and shall be punished accordingly pursuant to chapter ((7.84)) 7.80 RCW and the infraction rules for courts of limited jurisdiction.

(2) A person shall not carry or place a loaded pistol in any vehicle unless the person has a license to carry a concealed pistol and: (a) The pistol is on the licensee's person, (b) the licensee is within the vehicle at all times that the pistol is there, or (c) the licensee is away from the vehicle and the pistol is locked within the vehicle and concealed from view from outside the vehicle.

(3) A person at least eighteen years of age who is in possession of an unloaded pistol shall not leave the unloaded pistol in a vehicle unless the unloaded pistol is locked within the vehicle and concealed from view from outside the vehicle.

(4) Except as otherwise provided in this chapter, no person may carry a firearm unless it is unloaded and enclosed in an opaque case or secure wrapper or the person is:

(a) Licensed under RCW 9.41.070 to carry a concealed pistol;

(b) In attendance at a hunter's safety course or a firearms safety course;

(c) Engaging in practice in the use of a firearm or target shooting at an established range authorized by the governing body of the jurisdiction in which such range is located or any other area where the discharge of a firearm is not prohibited;

(d) Engaging in an organized competition involving the use of a firearm, or participating in or practicing for a performance by an organized group that uses firearms as a part of the performance;

(e) Engaging in a lawful outdoor recreational activity such as hunting, fishing, camping, hiking, or horseback riding, only if, considering all of the attendant circumstances, including but not limited to whether the person has a valid hunting or fishing license, it is reasonable to conclude that the person is participating in lawful outdoor activities or is traveling to or from a legitimate outdoor recreation area;

(f) In an area where the discharge of a firearm is permitted, and is not trespassing;

(g) Traveling with any unloaded firearm in the person's possession to or from any activity described in (b), (c), (d), (e), or (f) of this subsection, except as provided in (h) of this subsection;

(h) Traveling in a motor vehicle with a firearm, other than a pistol, that is unloaded and locked in the trunk or other compartment of the vehicle, placed in a gun rack, or otherwise secured in place in a vehicle, provided that this subsection (4)(h) does not apply to motor homes if the firearms are not within the driver's compartment of the motor home while the vehicle is in operation. Notwithstanding (a) of this subsection, and subject to federal and state park regulations regarding firearm possession therein, a motor home shall be considered a residence when parked at a recreational park, campground, or other temporary residential setting for the purposes of enforcement of this chapter;

(i) On real property under the control of the person or a relative of the person;

(j) At his or her residence;

(k) Is a member of the armed forces of the United States, national guard, or organized reserves, when on duty;

(l) Is a law enforcement officer;

(m) Carrying a firearm from or to a vehicle for the purpose of taking or removing the firearm to or from a place of business for repair; or

(n) An armed private security guard or armed private detective licensed by the department of licensing, while on duty or enroute to and from employment.

(5) Violation of any of the prohibitions of subsections (2) through (4) of this section is a misdemeanor.

(6) Nothing in this section permits the possession of firearms illegal to possess under state or federal law.

(7) Any city, town, or county may enact an ordinance to exempt itself from the prohibition of subsection (4) of this section.

Sec. 6. RCW 35A.12.010 and 1994 c 223 s 30 are each amended to read as follows:

The government of any noncharter code city or charter code city electing to adopt the mayor-council plan of government authorized by this chapter shall be vested in an elected mayor and an elected council. The council of a noncharter code city having less than twenty-five hundred inhabitants shall consist of five members; when there are twenty-five hundred or more inhabitants, the council shall consist of seven members((: PROVIDED, That)). A city with a population of less than twenty-five hundred at the time of reclassification as an optional municipal code city may choose to maintain a seven-member council. The decision concerning the number of councilmembers shall be made by the council and be incorporated as a section of the ordinance adopting for the city the classification of noncharter code city. If the population of a city after having become a code city decreases from twenty-five hundred or more to less than twenty-five hundred, it shall continue to have a seven member council. If, after a city has become a mayor-council code city, its population increases to twenty-five hundred or more inhabitants, the number of councilmanic offices in such city may increase from five to seven members upon the affirmative vote of a majority of the existing council to increase the number of councilmanic offices in the city. When the population of a mayor-council code city having five councilmanic offices increases to five thousand or more inhabitants, the number of councilmanic offices in the city shall increase from five to seven members. In the event of an increase in the number of councilmanic offices, the city council shall, by majority vote, pursuant to RCW 35A.12.050, appoint two persons to serve in these offices until the next municipal general election, at which election one person shall be elected for a two-year term and one person shall be elected for a four-year term. The number of inhabitants shall be determined by the most recent official state or federal census or determination by the state office of financial management. A charter adopted under the provisions of this title, incorporating the mayor-council plan of government set forth in this chapter, may provide for an uneven number of councilmembers not exceeding eleven.

A noncharter code city of less than five thousand inhabitants which has elected the mayor-council plan of government and which has seven councilmanic offices may establish a five-member council in accordance with the following procedure. At least six months prior to a municipal general election, the city council shall adopt an ordinance providing for reduction in the number of councilmanic offices to five. The ordinance shall specify which two councilmanic offices, the terms of which expire at the next general election, are to be terminated. The ordinance shall provide for the renumbering of council positions and shall also provide for a two-year extension of the term of office of a retained councilmanic office, if necessary, in order to comply with RCW 35A.12.040.

However, a noncharter code city that has retained its old mayor-council plan of government, as provided in RCW 35A.02.130, is subject to the laws applicable to that old plan of government.

NEW SECTION. Sec. 7. A new section is added to chapter 35.23 RCW to read as follows:

No person is eligible to hold an elective office in a second class city unless the person is a resident and registered voter in the city.

Sec. 8. RCW 35.27.080 and 1965 c 7 s 35.27.080 are each amended to read as follows:

No person shall be eligible to or hold an elective office in a town unless he or she is a resident and ((elector therein)) registered voter in the town.

Sec. 9. RCW 35.01.020 and 1994 c 81 s 4 are each amended to read as follows:

A second class city is a city with a population of ((more than)) fifteen hundred or more at the time of its organization or reorganization that does not have a charter adopted under Article XI, section 10, of the state Constitution, and does not operate under Title 35A RCW.

Sec. 10. RCW 35.01.040 and 1994 c 81 s 5 are each amended to read as follows:

A town has a population of less than fifteen hundred ((or less)) at the time of its organization and does not operate under Title 35A RCW.

Sec. 11. RCW 35.02.130 and 1994 c 154 s 308 are each amended to read as follows:

The city or town officially shall become incorporated at a date from one hundred eighty days to three hundred sixty days after the date of the election on the question of incorporation. An interim period shall exist between the time the newly elected officials have been elected and qualified and this official date of incorporation. During this interim period, the newly elected officials are authorized to adopt ordinances and resolutions which shall become effective on or after the official date of incorporation, and to enter into contracts and agreements to facilitate the transition to becoming a city or town and to ensure a continuation of governmental services after the official date of incorporation. Periods of time that would be required to elapse between the enactment and effective date of such ordinances, including but not limited to times for publication or for filing referendums, shall commence upon the date of such enactment as though the city or town were officially incorporated.

During this interim period, the city or town governing body may adopt rules establishing policies and procedures under the state environmental policy act, chapter 43.21C RCW, and may use these rules and procedures in making determinations under the state environmental policy act, chapter 43.21C RCW.

During this interim period, the newly formed city or town and its governing body shall be subject to the following as though the city or town were officially incorporated: RCW 4.24.470 relating to immunity; chapter 42.17 RCW relating to open government; chapter 40.14 RCW relating to the preservation and disposition of public records; chapters 42.20 and 42.23 RCW relating to ethics and conflicts of interest; chapters 42.30 and 42.32 RCW relating to open public meetings and minutes; RCW 35.22.288, ((35.23.310, 35.24.220)) 35.23.221, 35.27.300, 35A.12.160, as appropriate, and chapter 35A.65 RCW relating to the publication of notices and ordinances; RCW 35.21.875 and 35A.21.230 relating to the designation of an official newspaper; RCW 36.16.138 relating to liability insurance; RCW 35.22.620, 35.23.352, and 35A.40.210, as appropriate, and statutes referenced therein relating to public contracts and bidding; and chapter 39.34 RCW relating to interlocal cooperation. Tax anticipation or revenue anticipation notes or warrants and other short-term obligations may be issued and funds may be borrowed on the security of these instruments during this interim period, as provided in chapter 39.50 RCW. Funds also may be borrowed from federal, state, and other governmental agencies in the same manner as if the city or town were officially incorporated.

RCW 84.52.020 and 84.52.070 shall apply to the extent that they may be applicable, and the governing body of such city or town may take appropriate action by ordinance during the interim period to adopt the property tax levy for its first full calendar year following the interim period.

The governing body of the new city or town may acquire needed facilities, supplies, equipment, insurance, and staff during this interim period as if the city or town were in existence. An interim city manager or administrator, who shall have such administrative powers and duties as are delegated by the governing body, may be appointed to serve only until the official date of incorporation. After the official date of incorporation the governing body of such a new city organized under the council manager form of government may extend the appointment of such an interim manager or administrator with such limited powers as the governing body determines, for up to ninety days. This governing body may submit ballot propositions to the voters of the city or town to authorize taxes to be collected on or after the official date of incorporation, or authorize an annexation of the city or town by a fire protection district or library district to be effective immediately upon the effective date of the incorporation as a city or town.

The boundaries of a newly incorporated city or town shall be deemed to be established for purposes of RCW 84.09.030 on the date that the results of the initial election on the question of incorporation are certified or the first day of January following the date of this election if the newly incorporated city or town does not impose property taxes in the same year that the voters approve the incorporation.

The newly elected officials shall take office immediately upon their election and qualification with limited powers during this interim period as provided in this section. They shall acquire their full powers as of the official date of incorporation and shall continue in office until their successors are elected and qualified at the next general municipal election after the official date of incorporation: PROVIDED, That if the date of the next general municipal election is less than twelve months after the date of the first election of councilmembers, those initially elected councilmembers shall serve until their successors are elected and qualified at the next following general municipal election as provided in RCW 29.04.170. For purposes of this section, the general municipal election shall be the date on which city and town general elections are held throughout the state of Washington, pursuant to RCW 29.13.020.

In any newly incorporated city that has adopted the council-manager form of government, the term of office of the mayor, during the interim period only, shall be set by the council, and thereafter shall be as provided by law.

The official date of incorporation shall be on a date from one hundred eighty to three hundred sixty days after the date of the election on the question of incorporation, as specified in a resolution adopted by the governing body during this interim period. A copy of the resolution shall be filed with the county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located. If the governing body fails to adopt such a resolution, the official date of incorporation shall be three hundred sixty days after the date of the election on the question of incorporation. The county legislative authority of the county in which all or the major portion of the newly incorporated city or town is located shall file a notice with the county assessor that the city or town has been authorized to be incorporated immediately after the favorable results of the election on the question of incorporation have been certified. The county legislative authority shall file a notice with the secretary of state that the city or town is incorporated as of the official date of incorporation.

Sec. 12. RCW 35.22.010 and 1965 c 7 s 35.22.010 are each amended to read as follows:

Cities of the first class shall be organized and governed according to the law providing for the government of cities having a population of ((twenty)) ten thousand or more inhabitants that have adopted a charter in accordance with Article ((11)) XI, section 10 of the state Constitution.

Sec. 13. RCW 35.23.051 and 1995 c 134 s 8 are each amended to read as follows:

General municipal elections in second class cities ((not operating under the commission form of government)) shall be held biennially in the odd-numbered years and shall be subject to general election law.

The terms of office of the mayor, city attorney, clerk, and treasurer shall be four years and until their successors are elected and qualified and assume office in accordance with RCW 29.04.170: PROVIDED, That if the offices of city attorney, clerk, and treasurer are made appointive, the city attorney, clerk, and treasurer shall not be appointed for a definite term: PROVIDED FURTHER, That the term of the elected treasurer shall not commence in the same biennium in which the term of the mayor commences, nor in which the terms of the city attorney and clerk commence if they are elected.

Council positions shall be numbered in each second class city so that council position seven has a two-year term of office and council positions one through six shall each have four-year terms of office. Each councilmember shall remain in office until a successor is elected and qualified and assumes office in accordance with RCW 29.04.170.

In its discretion the council of a second class city may divide the city by ordinance, into a convenient number of wards, not exceeding six, fix the boundaries of the wards, and change the ward boundaries from time to time and as provided in RCW 29.70.100. No change in the boundaries of any ward shall be made within one hundred twenty days next before the date of a general municipal election, nor within twenty months after the wards have been established or altered. However, if a boundary change results in one ward being represented by more councilmembers than the number to which it is entitled, those having the shortest unexpired terms shall be assigned by the council to wards where there is a vacancy, and the councilmembers so assigned shall be deemed to be residents of the wards to which they are assigned for purposes of determining whether those positions are vacant.

Whenever such city is so divided into wards, the city council shall designate by ordinance the number of councilmembers to be elected from each ward, apportioning the same in proportion to the population of the wards. Thereafter the councilmembers so designated shall be elected by the voters resident in such ward, or by general vote of the whole city as may be designated in such ordinance. Council position seven shall not be associated with a ward and the person elected to that position may reside anywhere in the city and voters throughout the city may vote at a primary to nominate candidates for position seven, when a primary is necessary, and at a general election to elect the person to council position seven. ((When)) Additional territory that is added to the city ((it may)) shall, by act of the council, be annexed to contiguous wards without affecting the right to redistrict at the expiration of twenty months after last previous division. The removal of a councilmember from the ward for which he or she was elected shall create a vacancy in such office.

Wards shall be redrawn as provided in chapter 29.70 RCW. Wards shall be used as follows: (1) Only a resident of the ward may be a candidate for, or hold office as, a councilmember of the ward; and (2) only voters of the ward may vote at a primary to nominate candidates for a councilmember of the ward. Voters of the entire city may vote at the general election to elect a councilmember of a ward, unless the city had prior to January 1, 1994, limited the voting in the general election for any or all council positions to only voters residing within the ward associated with the council positions. If a city had so limited the voting in the general election to only voters residing within the ward, then the city shall be authorized to continue to do so. The elections for the remaining council position or council positions that are not associated with a ward shall be conducted as if the wards did not exist.

Sec. 14. RCW 35.33.020 and 1985 c 175 s 4 are each amended to read as follows:

The provisions of this chapter apply to all cities of the first class ((which)) that have a population of less than three hundred thousand, to all cities of the second ((and third classes)) class, and to all towns, except those cities and towns ((which)) that have adopted an ordinance under RCW 35.34.040 providing for a biennial budget.

Sec. 15. RCW 35.34.020 and 1985 c 175 s 5 are each amended to read as follows:

This chapter applies to all cities of the first((,)) and second((, and third)) classes and to all towns ((which)), that have by ordinance adopted this chapter authorizing the adoption of a fiscal biennium budget.

Sec. 16. RCW 35.86.010 and 1975 1st ex.s. c 221 s 1 are each amended to read as follows:

Cities of the first((,)) and second((, and third)) classes are authorized to provide off-street parking space and facilities located on land dedicated for park or civic center purposes, or on other municipally-owned land where the primary purpose of such off-street parking facility is to provide parking for persons who use such park or civic center facilities. In addition a city may own other off-street parking facilities and operate them in accordance with RCW 35.86A.120.

Sec. 17. RCW 35A.06.020 and 1995 c 134 s 11 are each amended to read as follows:

The classifications of municipalities ((which existed prior to the time this title goes into effect—)) as first class cities, second class cities, unclassified cities, and towns((—)), and the restrictions, limitations, duties, and obligations specifically imposed by law upon such classes of cities and towns, shall have no application to noncharter code cities, but every noncharter code city, by adopting such classification, has elected to be governed by the provisions of this title, with the powers granted hereby. However, any code city that retains its old plan of government is subject to the laws applicable to that old plan of government until the city abandons its old plan of government and reorganizes and adopts a plan of government under chapter 35A.12 or 35A.13 RCW.

NEW SECTION. Sec. 18. A new section is added to chapter 35.13 RCW to read as follows:

A city or town may not annex territory located in a county with a population of less than six hundred sixty thousand in which the city or town is not currently located, if the territory proposed to be annexed is characterized by industrial or commercial development and was designated as all or part of an urban growth area under RCW 36.70A.110 within two years of the effective date of this act as the result of a decision by a growth management hearings board.

This section expires July 1, 1999.

NEW SECTION. Sec. 19. A new section is added to chapter 35A.14 RCW to read as follows:

A code city may not annex territory located in a county with a population of less than six hundred sixty thousand in which the city is not currently located, if the territory proposed to be annexed is characterized by industrial or commercial development and was designated as all or part of an urban growth area under RCW 36.70A.110 within two years of the effective date of this act as the result of a decision by a growth management hearings board.

This section expires July 1, 1999.

Sec. 20. RCW 35.13.005 and 1990 1st ex.s. c 17 s 30 are each amended to read as follows:

((No)) A city or town may not annex territory located in a county in which urban growth areas have been designated under RCW 36.70A.110 ((may annex territory)) that is located beyond an urban growth area unless the territory is annexed under RCW 35.13.180.

Sec. 21. RCW 35A.14.005 and 1990 1st ex.s. c 17 s 31 are each amended to read as follows:

((No)) A code city may not annex territory located in a county in which urban growth areas have been designated under RCW 36.70A.110 ((may annex territory)) that is located beyond an urban growth area unless the territory is annexed under RCW 35A.14.300.

Sec. 22. RCW 35.13.180 and 1994 c 81 s 11 are each amended to read as follows:

City and town councils ((of second class cities and towns)) may by a majority vote annex new unincorporated territory outside the city or town limits, whether contiguous or noncontiguous for park, cemetery, or other municipal purposes when such territory is owned by the city or town ((or all of the owners of the real property in the territory give their written consent to the annexation)).

Sec. 23. RCW 36.70A.110 and 1995 c 400 s 2 are each amended to read as follows:

(1) Each county that is required or chooses to plan under RCW 36.70A.040 shall designate an urban growth area or areas within which urban growth shall be encouraged and outside of which growth can occur only if it is not urban in nature. Each city that is located in such a county shall be included within an urban growth area, except that an area owned by a city or town that was annexed to the city or town under RCW 35.13.180 or 35A.14.300 may be located outside of an urban growth area. An urban growth area may include more than a single city. An urban growth area may include territory that is located outside of a city only if such territory already is characterized by urban growth whether or not the urban growth area includes a city, or is adjacent to territory already characterized by urban growth, or is a designated new fully contained community as defined by RCW 36.70A.350.

(2) Based upon the growth management population projection made for the county by the office of financial management, the urban growth areas in the county shall include areas and densities sufficient to permit the urban growth that is projected to occur in the county for the succeeding twenty-year period. Each urban growth area shall permit urban densities and shall include greenbelt and open space areas. An urban growth area determination may include a reasonable land market supply factor and shall permit a range of urban densities and uses. In determining this market factor, cities and counties may consider local circumstances. Cities and counties have discretion in their comprehensive plans to make many choices about accommodating growth.

Within one year of July 1, 1990, each county that as of June 1, 1991, was required or chose to plan under RCW 36.70A.040, shall begin consulting with each city located within its boundaries and each city shall propose the location of an urban growth area. Within sixty days of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall begin this consultation with each city located within its boundaries. The county shall attempt to reach agreement with each city on the location of an urban growth area within which the city is located. If such an agreement is not reached with each city located within the urban growth area, the county shall justify in writing why it so designated the area an urban growth area. A city may object formally with the department over the designation of the urban growth area within which it is located. Where appropriate, the department shall attempt to resolve the conflicts, including the use of mediation services.

(3) Urban growth should be located first in areas already characterized by urban growth that have adequate existing public facility and service capacities to serve such development, second in areas already characterized by urban growth that will be served adequately by a combination of both existing public facilities and services and any additional needed public facilities and services that are provided by either public or private sources, and third in the remaining portions of the urban growth areas. Urban growth may also be located in designated new fully contained communities as defined by RCW 36.70A.350.

(4) In general, cities are the units of local government most appropriate to provide urban governmental services. In general, it is not appropriate that urban governmental services be extended to or expanded in rural areas except in those limited circumstances shown to be necessary to protect basic public health and safety and the environment and when such services are financially supportable at rural densities and do not permit urban development.

(5) On or before October 1, 1993, each county that was initially required to plan under RCW 36.70A.040(1) shall adopt development regulations designating interim urban growth areas under this chapter. Within three years and three months of the date the county legislative authority of a county adopts its resolution of intention or of certification by the office of financial management, all other counties that are required or choose to plan under RCW 36.70A.040 shall adopt development regulations designating interim urban growth areas under this chapter. Adoption of the interim urban growth areas may only occur after public notice; public hearing; and compliance with the state environmental policy act, chapter 43.21C RCW, and RCW 36.70A.110. Such action may be appealed to the appropriate growth management hearings board under RCW 36.70A.280. Final urban growth areas shall be adopted at the time of comprehensive plan adoption under this chapter.

(6) Each county shall include designations of urban growth areas in its comprehensive plan.

NEW SECTION. Sec. 24. RCW 35.21.620 shall be recodified as a section in chapter 35.22 RCW.

NEW SECTION. Sec. 25. The following acts or parts of acts are each repealed:

(1) RCW 35.07.030 and 1965 c 7 s 35.07.030;

(2) RCW 35.17.160 and 1965 c 7 s 35.17.160;

(3) RCW 35.23.390 and 1965 c 7 s 35.23.390;

(4) RCW 35.23.400 and 1965 c 7 s 35.23.400;

(5) RCW 35.21.600 and 1979 c 151 s 27, 1965 ex.s. c 47 s 6, & 1965 c 7 s 3..21.600;

(6) RCW 35.21.610 and 1965 ex.s. c 47 s 1; and

(7) RCW 35A.61.010 and 1967 ex.s. c 119 s 35A.61.010.

NEW SECTION. Sec. 26. 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 accordingly.

There being no objection, the House adopted the Conference Committee report on Substitute Senate Bill No. 5336, and advanced the bill to final passage.

FINAL PASSAGE OF SENATE BILL AS

RECOMMENDED BY THE CONFERENCE COMMITTEE

The Speaker (Representative Pennington presiding) stated the question before the House to be final passage of Substitute Senate Bill No. 5336 as recommended by the Conference Committee.

Representatives D. Schmidt and Scott spoke in favor of passage of the bill.

Representatives Lantz and Gardner spoke against the passage of the bill.

ROLL CALL

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5336 as recommended by the Conference Committee, 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, Buck, Bush, Cairnes, Carlson, Carrell, Chandler, Clements, Cody, Conway, Cooke, Cooper, Costa, Crouse, DeBolt, Delvin, Doumit, Dyer, Grant, Hankins, Hatfield, Hickel, Honeyford, Huff, Johnson, Kessler, Lambert, Lisk, Mastin, McDonald, McMorris, Mielke, Mitchell, Morris, Mulliken, O'Brien, Parlette, Pennington, Quall, Radcliff, Reams, Robertson, Schmidt, D., Schmidt, K., Schoesler, Scott, Sehlin, Sheahan, Sheldon, Sommers, D., Sterk, Sullivan, Sump, Talcott, Thomas, B., Thomas, L., Thompson, Van Luven, Veloria, Wensman, Zellinsky and Mr. Speaker - 65.

Voting nay: Representatives Anderson, Appelwick, Blalock, Boldt, Butler, Chopp, Cole, Constantine, Dickerson, Dunn, Dunshee, Fisher, Gardner, Gombosky, Kastama, Keiser, Kenney, Koster, Lantz, Linville, Mason, Murray, Ogden, Poulsen, Regala, Romero, Sherstad, Smith, Sommers, H., Tokuda, Wolfe and Wood - 32.

Excused: Representative Skinner - 1.

Substitute Senate Bill No. 5336, as recommended by the Conference Committee, having received the constitutional majority, was declared passed.

The Speaker assumed the chair.

SIGNED BY THE SPEAKER

The Speaker announced he was signing:

SUBSTITUTE HOUSE BILL NO. 1022,

SUBSTITUTE HOUSE BILL NO. 1478,

SUBSTITUTE HOUSE BILL NO. 1485,

ENGROSSED HOUSE BILL NO. 1647,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1687,

HOUSE BILL NO. 1708,

SUBSTITUTE HOUSE BILL NO. 1729,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2193,

SECOND READING

SUBSTITUTE HOUSE BILL NO. 2192, by the Committee on Trade and Economic Development (Originally by Representatives Van Luven and Wolfe; by request of Governor Locke)

Financing a stadium and exhibition center and technology grants.

Representative B. Thomas moved the adoption of the following amendment by Representative B. Thomas: (691)

On page 1, strike everything before line 4

Representatives B. Thomas and Dunshee spoke in favor of the adoption of the amendment.

Representative Van Luven spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 27-YEAS; 68-NAYS. The amendment was not adopted.

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (741)

Strike everything after the enacting clause and insert the following:

"PART I

AUTHORITY CREATION AND POWERS

NEW SECTION. Sec. 101. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Design" includes architectural, engineering, and other related professional services.

(2) "Develop" means, generally, the process of planning, designing, financing, constructing, owning, operating, and leasing a project such as a stadium and exhibition center.

(3) "Permanent seat license" means a transferable license sold to a third party that, subject to certain conditions, restrictions, and limitations, entitles the third party to purchase a season ticket to professional football games of the professional football team played in the stadium and exhibition center for so long as the team plays its games in that facility.

(4) "Preconstruction" includes negotiations, including negotiations with any team affiliate, planning, studies, design, and other activities reasonably necessary before constructing a stadium and exhibition center.

(5) "Professional football team" means a team that is a member of the national football league or similar professional football association.

(6) "Public stadium authority operation" means the formation and ongoing operation of the public stadium authority, including the hiring of employees, agents, attorneys, and other contractors, and the acquisition and operation of office facilities.

(7) "Site acquisition" means the purchase or other acquisition of any interest in real property including fee simple interests and easements, which property interests constitute the site for a stadium and exhibition center.

(8) "Site preparation" includes demolition of existing improvements, environmental remediation, site excavation, shoring, and construction and maintenance of temporary traffic and pedestrian routing.

(9) "Stadium and exhibition center" means an open-air stadium suitable for national football league football and for Olympic and world cup soccer, with adjacent exhibition facilities, together with associated parking facilities and other ancillary facilities.

(10) "Team affiliate" means a professional football team that will use the stadium and exhibition center, and any affiliate of the team designated by the team. An "affiliate of the team" means any person or entity that controls, is controlled by, or is under common control with the team.

NEW SECTION. Sec. 102. (1) A public stadium authority may be created in any county that has entered into a letter of intent relating to the development of a stadium and exhibition center under chapter . . ., Laws of 1997 (this act) with a team affiliate or an entity that has a contractual right to become a team affiliate.

(2) A public stadium authority shall be created upon adoption of a resolution providing for the creation of such an authority by the county legislative authority in which the proposed authority is located.

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

(4) The legislative authority of the county in which the public stadium authority is located, or the council of any city located in that county, may transfer property to the public stadium authority created under this chapter. Property encumbered by debt may be transferred by a county legislative authority or a city council to a public stadium authority created to develop a stadium and exhibition center under section 105 of this act, but obligation for payment of the debt may not be transferred.

NEW SECTION. Sec. 103. (1) A public stadium authority shall be governed by a board of directors consisting of seven members appointed by the governor. The speaker of the house of representatives, the minority leader of the house of representatives, the majority leader of the senate, and the minority leader of the senate shall each recommend to the governor a person to be appointed to the board.

(2) Members of the board of directors shall serve four-year terms of office, except that three of the initial seven board members shall serve two-year terms of office. The governor shall designate the initial terms of office for the initial members who are appointed.

(3) A vacancy shall be filled in the same manner as the original appointment was made and the person appointed to fill a vacancy shall serve for the remainder of the unexpired term of the office for the position to which he or she was appointed.

(4) A director appointed by the governor may be removed from office by the governor.

NEW SECTION. Sec. 104. (1) There is created a public stadium authority advisory committee comprised of five members. The advisory committee consists of: The director of the office of financial management, who shall serve as chair; two members appointed by the house of representatives, one each appointed by the speaker of the house of representatives and the minority leader of the house of representatives; and two members appointed by the senate, one each appointed by the majority leader of the senate and the minority leader of the senate.

(2) The advisory committee, prior to the final approval of any lease with the master tenant or sale of stadium naming rights, shall review and comment on the proposed lease agreement or sale of stadium naming rights.

NEW SECTION. Sec. 105. (1) The public stadium authority is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a stadium and exhibition center as defined in section 101 of this act.

(2) The public stadium authority may enter into agreements under chapter 39.34 RCW for the joint provision and operation of a stadium and exhibition center and may enter into contracts under chapter 39.34 RCW where any party to the contract provides and operates the stadium and exhibition center for the other party or parties to the contract.

(3) Any employees of the public stadium authority shall be unclassified employees not subject to the provisions of chapter 41.06 RCW and a public stadium authority may contract with a public or private entity for the operation or management of the stadium and exhibition center.

(4) The public stadium authority is authorized to use the alternative supplemental public works contracting procedures set forth in chapter 39.10 RCW in connection with the design, construction, reconstruction, remodel, or alteration of a stadium and exhibition center.

(5) The public stadium authority may impose charges and fees for the use of the stadium and exhibition center, and may accept and expend or use gifts, grants, and donations.

(6) The public stadium authority shall comply with the prevailing wage requirements of chapter 39.12 RCW and goals established for women and minority-business participation for the county.

NEW SECTION. Sec. 106. In addition to other powers and restrictions on a public stadium authority, the following apply to a public stadium authority created to develop a stadium and exhibition center under section 105 of this act:

(1) The public stadium authority, in consultation with the team affiliate, shall have the authority to determine the stadium and exhibition center site;

(2) The public stadium authority, in consultation with the team affiliate, shall have the authority to establish the overall scope of the stadium and exhibition center project, including, but not limited to, stadium and exhibition center itself, associated exhibition facilities, associated parking facilities, associated retail and office development that are part of the stadium and exhibition center, and ancillary services and facilities;

(3) The public stadium authority, in consultation with the team affiliate, shall have the authority to make the final determination of the stadium and exhibition center overall design and specification;

(4) The public stadium authority shall have the authority to contract with a team affiliate for the provision of architectural, engineering, environmental, and other professional services related to the stadium and exhibition center site, design options, required environmental studies, and necessary permits for the stadium and exhibition center;

(5) The public stadium authority, in consultation with the team affiliate, shall have the authority to establish the project budget on the stadium and exhibition center project;

(6) The public stadium authority, in consultation with the team affiliate, shall have the authority to make recommendations to the state finance committee regarding the structure of the financing of the stadium and exhibition center project;

(7) The public stadium authority shall have the authority to enter into a development agreement with a team affiliate whereby the team affiliate may control the development of the stadium and exhibition center project, consistent with subsections (1) through (6) of this section, in consideration of which the team affiliate assumes the risk of costs of development that are in excess of the project budget established under subsection (5) of this section. Under the development agreement, the team affiliate shall determine bidding specifications and requirements, and other aspects of development. Under the development agreement, the team affiliate shall determine procurement procedures and other aspects of development, and shall select and engage an architect or architects and a contractor or contractors for the stadium and exhibition center project, provided that the construction, alterations, repairs, or improvements of the stadium and exhibition center shall be subject to the prevailing wage requirements of chapter 39.12 RCW and all phases of the development shall be subject to the goals established for women and minority-business participation for the county where the stadium and exhibition center is located. The team affiliate shall, to the extent feasible, hire local residents and in particular residents from the areas immediately surrounding the stadium and exhibition center during the construction and ongoing operation of the stadium and exhibition center;

(8) The public stadium authority shall have the authority to enter into a long-term lease agreement with a team affiliate whereby, in consideration of the payment of fair rent that is solely intended to cover the reasonable operating expenses of the public stadium authority and assumption of operating and maintenance responsibilities, risk, legal liability, and costs associated with the stadium and exhibition center, the team affiliate becomes the sole master tenant of the stadium and exhibition center. The team affiliate shall provide a guarantee, security, or a letter of credit from a person or entity with a net worth in excess of one hundred million dollars that guarantees a maximum of ten years' payments of fair rent under the lease in the event of the bankruptcy or insolvency of the team affiliate. The master tenant shall have the power to sublease and enter into use, license, and concession agreements with various users of the stadium and exhibition center including the professional football team, and the master tenant has the right to name the stadium and exhibition center, subject to section 107 of this act. The master tenant shall meet goals, established by the county where the stadium and exhibition center is located, for women and minority employment for the operation of the stadium and exhibition center. The master tenant shall have the right to retain revenues derived from the operation of the stadium and exhibition center, including revenues from the sublease and uses, license and concession agreements, revenues from suite licenses, concessions, advertising, long-term naming rights subject to section 107 of this act, and parking revenue. If federal law permits interest on bonds issued to finance the stadium and exhibition center to be treated as tax exempt for federal income tax purposes, the public stadium authority and the team affiliate shall endeavor to structure and limit the amounts, sources, and uses of any payments received by the state, the county, the public stadium authority, or any related governmental entity for the use or in respect to the stadium and exhibition center in such a manner as to permit the interest on those bonds to be tax exempt;

(9) The public stadium authority may reserve the right to discuss profit sharing from the stadium and exhibition center from sources that have not been identified at the time the long-term lease agreement is executed;

(10) The public stadium authority, in consultation with the team affiliate, must work to secure the hosting of a Super Bowl, if the hosting requirements are changed by the national football league or similar professional football association;

(11) The public stadium authority shall work with surrounding areas to mitigate the impact of the construction and operation of the stadium and exhibition center;

(12) The public stadium authority, in consultation with the office of financial management, shall negotiate filming rights of the demolition of the existing domed stadium on the stadium and exhibition center site. All revenues derived from the filming of the demolition of the existing domed stadium shall be deposited into the film and video promotion account created in section 222 of this act; and

(13) The public stadium authority shall have the authority, upon the agreement of the team affiliate, to sell permanent seat licenses, and the team affiliate may act as the sales agent for this purpose.

NEW SECTION. Sec. 107. Revenues from the sales of naming rights of a stadium and exhibition center developed under section 105 of this act may only be used for costs associated with capital improvements associated with modernization and maintenance of the stadium and exhibition center. The sales of naming rights are subject to the reasonable approval of the public stadium authority.

NEW SECTION. Sec. 108. A public stadium authority may accept and expend moneys that may be donated for the purpose of a stadium and exhibition center.

NEW SECTION. Sec. 109. (1) The public stadium authority, the county, and the city, if any, in which the stadium and exhibition center is to be located shall enter into one or more agreements regarding the construction of a stadium and exhibition center. The agreements shall address, but not be limited to:

(a) Expedited permit processing for the design and construction of the stadium and exhibition center project;

(b) Expedited environmental review processing;

(c) Expedited processing of requests for street, right of way, or easement vacations necessary for the construction of the stadium and exhibition center project; and

(d) Other items deemed necessary for the design and construction of the stadium and exhibition center project.

(2) The county shall assemble such real property and associated personal property as the public stadium authority determines to be necessary as a site for the stadium and exhibition center. Property that is necessary for this purpose that is owned by the county on or after the effective date of this section shall be contributed to the authority, and property that is necessary for this purpose that is acquired by the county on or after the effective date of this section shall be conveyed to the authority. Property that is encumbered by debt may be transferred by the county to the authority, but obligation for payment of the debt may not be transferred.

(3) A new exhibition facility of at least three hundred twenty-five thousand square feet, with adequate on-site parking, shall be constructed and operational before any domed stadium in the county is demolished or rendered unusable. Demolition of any existing structure and construction of the stadium and exhibition center shall be reasonably executed in a manner that minimizes impacts, including access and parking, upon existing facilities, users, and neighborhoods. No county or city may exercise authority under any landmarks preservation statute or ordinance in order to prevent or delay the demolition of any existing domed stadium at the site of the stadium and exhibition center.

NEW SECTION. Sec. 110. A public stadium authority may acquire and transfer real and personal property by lease, sublease, purchase, or sale.

NEW SECTION. Sec. 111. The board of directors of the public stadium authority shall adopt a resolution that may be amended from time to time that shall establish the basic requirements governing methods and amounts of reimbursement payable to such authority and employees for travel and other business expenses incurred on behalf of the authority. The resolution shall, among other things, establish procedures for approving such expenses; the form of the travel and expense voucher; and requirements governing the use of credit cards issued in the name of the authority. The resolution may also establish procedures for payment of per diem to board members. The state auditor shall, as provided by general law, cooperate with the public stadium authority in establishing adequate procedures for regulating and auditing the reimbursement of all such expenses.

NEW SECTION. Sec. 112. The board of directors of the public stadium authority may authorize payment of actual and necessary expenses of officers and employees for lodging, meals, and travel-related costs incurred in attending meetings or conferences on behalf of the public stadium authority and strictly in the public interest and for public purposes. Officers and employees may be advanced sufficient sums to cover their anticipated expenses in accordance with rules adopted by the state auditor, which shall substantially conform to the procedures provided in RCW 43.03.150 through 43.03.210.

NEW SECTION. Sec. 113. Each member of the board of directors of the public stadium authority may receive compensation of fifty dollars per day for attending meetings or conferences on behalf of the authority, not to exceed three thousand dollars per year. A director may waive all or a portion of his or her compensation under this section as to a month or months during his or her term of office, by a written waiver filed with the public stadium authority. The compensation provided in this section is in addition to reimbursement for expenses paid to the directors by the public stadium authority.

NEW SECTION. Sec. 114. The board of directors of the public stadium authority may purchase liability insurance with such limits as the directors may deem reasonable for the purpose of protecting and holding personally harmless authority officers and employees against liability for personal or bodily injuries and property damage arising from their acts or omissions while performing or in good faith purporting to perform their official duties.

NEW SECTION. Sec. 115. Whenever an action, claim, or proceeding is instituted against a person who is or was an officer or employee of the public stadium authority arising out of the performance of duties for or employment with the authority, the public stadium authority may grant a request by the person that the attorney of the authority's choosing be authorized to defend the claim, suit, or proceeding, and the costs of defense, attorneys' fees, and obligation for payments arising from the action may be paid from the authority's funds. Costs of defense or judgment or settlement against the person shall not be paid in a case where the court has found that the person was not acting in good faith or within the scope of employment with or duties for the public stadium authority.

NEW SECTION. Sec. 116. The board of directors of the public stadium authority shall have authority to authorize the expenditure of funds for the public purposes of preparing and distributing information to the general public about the stadium and exhibition center.

NEW SECTION. Sec. 117. The public stadium authority shall have authority to create and fill positions, fix wages and salaries, pay costs involved in securing or arranging to secure employees, and establish benefits for employees, including holiday pay, vacations or vacation pay, retirement benefits, medical, life, accident, or health disability insurance, as approved by the board. Public stadium authority board members, at their own expense, shall be entitled to medical, life, accident, or health disability insurance. Insurance for employees and board members shall not be considered compensation. Authority coverage for the board is not to exceed that provided public stadium authority employees.

NEW SECTION. Sec. 118. The public stadium authority may secure services by means of an agreement with a service provider. The public stadium authority shall publish notice, establish criteria, receive and evaluate proposals, and negotiate with respondents under requirements set forth by authority resolution.

PART II

FINANCING

NEW SECTION. Sec. 201. (1) The governing board of a public stadium authority may apply for deferral of taxes on the construction of buildings, site preparation, and the acquisition of related machinery and equipment for a stadium and exhibition center. Application shall be made to the department of revenue in a form and manner prescribed by the department of revenue. The application shall contain information regarding the location of the stadium and exhibition center, estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue. The department of revenue shall approve the application within sixty days if it meets the requirements of this section.

(2) The department of revenue shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the public facility.

(3) The public stadium authority shall begin paying the deferred taxes in the fifth year after the date certified by the department of revenue as the date on which the stadium and exhibition center is operationally complete. The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years. Each payment shall equal ten percent of the deferred tax.

(4) The department of revenue may authorize an accelerated repayment schedule upon request of the public stadium authority.

(5) Interest shall not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section. The debt for deferred taxes is not extinguished by insolvency or other failure of the public stadium authority.

(6) The repayment of deferred taxes and interest, if any, shall be deposited into the stadium and exhibition center account created in section 214 of this act and used to retire bonds issued under section 210 of this act to finance the construction of the stadium and exhibition center.

(7) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure. Chapter 82.32 RCW applies to the administration of this section.

Sec. 202. RCW 82.29A.130 and 1995 3rd sp.s. c 1 s 307 are each amended to read as follows:

The following leasehold interests shall be exempt from taxes imposed pursuant to RCW 82.29A.030 and 82.29A.040:

(1) All leasehold interests constituting a part of the operating properties of any public utility which is assessed and taxed as a public utility pursuant to chapter 84.12 RCW.

(2) All leasehold interests in facilities owned or used by a school, college or university which leasehold provides housing for students and which is otherwise exempt from taxation under provisions of RCW 84.36.010 and 84.36.050.

(3) All leasehold interests of subsidized housing where the fee ownership of such property is vested in the government of the United States, or the state of Washington or any political subdivision thereof but only if income qualification exists for such housing.

(4) All leasehold interests used for fair purposes of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW 67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States, the state of Washington or any of its political subdivisions: PROVIDED, That this exemption shall not apply to the leasehold interest of any sublessee of such nonprofit fair association if such leasehold interest would be taxable if it were the primary lease.

(5) All leasehold interests in any property of any public entity used as a residence by an employee of that public entity who is required as a condition of employment to live in the publicly owned property.

(6) All leasehold interests held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this chapter, RCW 84.36.451 and 84.40.175.

(7) All leasehold interests in any real property of any Indian or Indian tribe, band, or community that is held in trust by the United States or is subject to a restriction against alienation imposed by the United States: PROVIDED, That this exemption shall apply only where it is determined that contract rent paid is greater than or equal to ninety percent of fair market rental, to be determined by the department of revenue using the same criteria used to establish taxable rent in RCW 82.29A.020(2)(b).

(8) All leasehold interests for which annual taxable rent is less than two hundred fifty dollars per year. For purposes of this subsection leasehold interests held by the same lessee in contiguous properties owned by the same lessor shall be deemed a single leasehold interest.

(9) All leasehold interests which give use or possession of the leased property for a continuous period of less than thirty days: PROVIDED, That for purposes of this subsection, successive leases or lease renewals giving substantially continuous use of possession of the same property to the same lessee shall be deemed a single leasehold interest: PROVIDED FURTHER, That no leasehold interest shall be deemed to give use or possession for a period of less than thirty days solely by virtue of the reservation by the public lessor of the right to use the property or to allow third parties to use the property on an occasional, temporary basis.

(10) All leasehold interests under month-to-month leases in residential units rented for residential purposes of the lessee pending destruction or removal for the purpose of constructing a public highway or building.

(11) All leasehold interests in any publicly owned real or personal property to the extent such leasehold interests arises solely by virtue of a contract for public improvements or work executed under the public works statutes of this state or of the United States between the public owner of the property and a contractor.

(12) All leasehold interests that give use or possession of state adult correctional facilities for the purposes of operating correctional industries under RCW 72.09.100.

(13) All leasehold interests used to provide organized and supervised recreational activities for disabled persons of all ages in a camp facility and for public recreational purposes by a nonprofit organization, association, or corporation that would be exempt from property tax under RCW 84.36.030(1) if it owned the property. If the publicly owned property is used for any taxable purpose, the leasehold excise taxes set forth in RCW 82.29A.030 and 82.29A.040 shall be imposed and shall be apportioned accordingly.

(14) All leasehold interests in the public or entertainment areas of a baseball stadium with natural turf and a retractable roof or canopy that is in a county with a population of over one million, that has a seating capacity of over forty thousand, and that is constructed on or after January 1, 1995. "Public or entertainment areas" include ticket sales areas, ramps and stairs, lobbies and concourses, parking areas, concession areas, restaurants, hospitality and stadium club areas, kitchens or other work areas primarily servicing other public or entertainment areas, public rest room areas, press and media areas, control booths, broadcast and production areas, retail sales areas, museum and exhibit areas, scoreboards or other public displays, storage areas, loading, staging, and servicing areas, seating areas and suites, the playing field, and any other areas to which the public has access or which are used for the production of the entertainment event or other public usage, and any other personal property used for these purposes. "Public or entertainment areas" does not include locker rooms or private offices exclusively used by the lessee.

(15) All leasehold interests in the public or entertainment areas of a stadium and exhibition center, as defined in section 101 of this act, that is constructed on or after January 1, 1998. For the purposes of this subsection, "public or entertainment areas" has the same meaning as in subsection (14) of this section, and includes exhibition areas.

NEW SECTION. Sec. 203. A new section is added to chapter 82.08 RCW to read as follows:

The tax levied by RCW 82.08.020 does not apply to vehicle parking charges that are subject to tax under section 302 of this act.

NEW SECTION. Sec. 204. A new section is added to chapter 82.14 RCW to read as follows:

(1) The legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under section 105 of this act may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall be 0.016 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.

(2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.

(3) Before the issuance of bonds in section 210 of this act, all revenues collected on behalf of the county under this section shall be transferred to the public stadium authority. After bonds are issued under section 210 of this act, all revenues collected on behalf of the county under this section shall be deposited in the stadium and exhibition center account under section 214 of this act.

(4) The definitions in section 101 of this act apply to this section.

(5) This section expires on the earliest of the following dates:

(a) December 31, 1999, if the conditions for issuance of bonds under section 210 of this act have not been met before that date;

(b) The date on which all bonds issued under section 210 of this act have been retired; or

NEW SECTION. Sec. 205. A new section is added to chapter 67.70 RCW to read as follows:

The lottery commission shall conduct new games that are in addition to any games conducted under RCW 67.70.042 and are intended to generate additional moneys sufficient to cover the distributions under RCW 67.70.240(5). No game may be conducted under this section before January 1, 1998. No game may be conducted under this section after December 31, 1999, unless the conditions for issuance of the bonds under section 210(2) of this act are met, and no game is required to be conducted after the distributions cease under RCW 67.70.240(5).

For the purposes of this section, the lottery may accept and market prize promotions provided in conjunction with private-sector marketing efforts.

Sec. 206. RCW 67.70.240 and 1995 3rd sp.s. c 1 s 105 are each amended to read as follows:

The moneys in the state lottery account shall be used only:

(1) For the payment of prizes to the holders of winning lottery tickets or shares;

(2) For purposes of making deposits into the reserve account created by RCW 67.70.250 and into the lottery administrative account created by RCW 67.70.260;

(3) For purposes of making deposits into the state's general fund;

(4) ((for purposes of making deposits into the housing trust fund under the provisions of section 7 of this 1987 act; (5))) For distribution to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs((; (6) for the purchase and promotion of lottery games and game-related services; and (7) for the payment of agent compensation)). Three million dollars shall be distributed under this subsection (((5) of this section)) during calendar year 1996. During subsequent years, such distributions shall equal the prior year's distributions increased by four percent. Distributions under this subsection (((5) of this section)) shall cease when the bonds issued for the construction of the baseball stadium are retired, but not more than twenty years after the tax under RCW 82.14.0485 is first imposed;

(5) For distribution to the stadium and exhibition center account, created in section 214 of this act. Subject to the conditions of section 215 of this act, six million dollars shall be distributed under this subsection during the calendar year 1998. During subsequent years, such distribution shall equal the prior year's distributions increased by four percent. No distribution may be made under this subsection after December 31, 1999, unless the conditions for issuance of the bonds under section 210(2) of this act are met. Distributions under this subsection shall cease when the bonds are retired, but not later than December 31, 2020;

(6) For the purchase and promotion of lottery games and game-related services; and

(7) For the payment of agent compensation.

The office of financial management shall require the allotment of all expenses paid from the account and shall report to the ways and means committees of the senate and house of representatives any changes in the allotments.

Sec. 207. RCW 67.70.042 and 1995 3rd sp.s. c 1 s 104 are each amended to read as follows:

The lottery commission shall conduct at least two but not more than four scratch games with sports themes per year. These games are intended to generate additional moneys sufficient to cover the distributions under RCW 67.70.240(((5))) (4).

NEW SECTION. Sec. 208. A new section is added to chapter 67.70 RCW to read as follows:

The person or entity responsible for operating a stadium and exhibition center as defined in section 101 of this act shall promote the lottery with any combination of in-kind advertising, sponsorship, or prize promotions, valued at one million dollars annually beginning January 1998 and increased by four percent each year thereafter for the purpose of increasing lottery sales of games authorized under section 205 of this act. The content and value of the advertising sponsorship or prize promotions are subject to reasonable approval in advance by the lottery commission. The obligation of this section shall cease when the distributions under RCW 67.70.240(5) end, but not later than December 31, 2020.

NEW SECTION. Sec. 209. The definitions in section 101 of this act apply to this chapter.

NEW SECTION. Sec. 210. (1) For the purpose of providing funds to pay for operation of the public stadium authority created under section 102 of this act, to pay for the preconstruction, site acquisition, design, site preparation, construction, owning, leasing, and equipping of the stadium and exhibition center, and to reimburse the county or the public stadium authority for its direct or indirect expenditures or to repay other indebtedness incurred for these purposes, the state finance committee is authorized to issue general obligation bonds of the state of Washington in the sum of three hundred million dollars, or so much thereof as may be required, for these purposes and all costs incidental thereto. Bonds authorized in this section may be sold at such price as the state finance committee shall determine.

(2) Bonds shall not be issued under this section unless the public stadium authority has certified to the director of financial management that:

(a) A professional football team has made a binding and legally enforceable contractual commitment to play all of its regular season and playoff home games in the stadium and exhibition center, other than games scheduled elsewhere by the league, for a period of time not shorter than the term of the bonds issued or to be issued to finance the initial construction of the stadium and exhibition center;

(b) A team affiliate has entered into one or more binding and legally enforceable contractual commitments with a public stadium authority under section 105 of this act that provide that:

(i) The team affiliate assumes the risks of cost overruns;

(ii) The team affiliate shall raise at least one hundred million dollars, less the amount, if any, raised by the public stadium authority under section 106(13) of this act. The total one hundred million dollars raised, which may include cash payments and in-kind contributions, but does not include any interest earned on the escrow account described in section 211 of this act, shall be applied toward the reasonably necessary preconstruction, site acquisition, design, site preparation, construction, and equipping of the stadium and exhibition center, or to any associated public purpose separate from bond-financed expenses. No part of the payment may be made without the consent of the public stadium authority. In any event, all amounts to be raised by the team affiliate under (b)(ii) of this subsection shall be paid or expended before the completion of the construction of the stadium and exhibition center. To the extent possible, contributions shall be structured in a manner that would allow for the issuance of bonds to construct the stadium and exhibition center that are exempt from federal income taxes;

(iii) The team affiliate shall raise at least six million dollars which shall be deposited into the youth athletic facility grant account created in section 214 of this act upon execution of the lease and development agreements in section 106 (7) and (8) of this act;

(iv) At least ten percent of the seats in the stadium for home games of the professional football team shall be for sale at an affordable price. For the purposes of this subsection, "affordable price" means that the price is the average of the lowest ticket prices charged by all other national football league teams;

(v) One executive suite with a minimum of twenty seats must be made available, on a lottery basis, as a free upgrade, at home games of the professional football team, to purchasers of nonexecutive suite and club seat tickets;

(vi) A nonparticipatory interest in the professional football team has been granted to the state beginning on the date on which bonds are issued under this section which only entitles the state to receive ten percent of the gross selling price of the interest in the team that is sold if a majority interest or more of the professional football team is sold within twenty-five years of the date on which bonds are issued under the section. The ten percent shall apply to all preceding sales of interests in the team which comprise the majority interest sold. This provision shall apply only to the first sale of such a majority interest. The ten percent must be used to retire the public debt of the stadium and exhibition center. If the debt is retired at the time of the sale, then the ten percent may only be used for costs associated with capital maintenance, capital improvements, renovations, reequipping, replacement, and operations of the stadium and exhibition center;

(vii) The team affiliate must provide reasonable office space to the public stadium authority without charge;

(viii) The team affiliate, in consultation with the public stadium authority, shall work with surrounding areas to mitigate the impact of the construction and operation of the stadium and exhibition center with a budget of at least ten million dollars dedicated to area mitigation. For purposes of this subsection, "mitigation" includes, but is not limited to, parking facilities and amenities, neighborhood beautification projects and landscaping, financial grants for neighborhood programs intended to mitigate adverse impacts caused by the construction and operation of the stadium and exhibition center, and mitigation measures identified in the environmental impact statement required for the stadium and exhibition center under chapter 43.21C RCW; and

(ix) Twenty percent of the net profit from the operation of the exhibition facility of the stadium and exhibition center shall be deposited into the permanent common school fund. Profits shall be verified by the public stadium authority.

NEW SECTION. Sec. 211. On or before August 1, 1997: (1) The state treasurer and a team affiliate or an entity that has an option to become a team affiliate shall enter into an escrow agreement creating an escrow account; and (2) the team affiliate or the entity that has an option to become a team affiliate shall deposit the sum of fifty million dollars into the escrow account as a credit against the obligation of the team affiliate in section 210(2)(b)(ii) of this act. The escrow agreement shall provide that the fifty million dollar deposit shall be invested by the state treasurer and shall earn interest. If the stadium and exhibition center project proceeds, then the interest on amounts in the escrow account shall be for the benefit of the state, and all amounts in the escrow account, including all principal and interest, shall be distributed to the stadium and exhibition center account. The escrow agreement shall provide for appropriate adjustments based on amounts previously and subsequently raised by the team affiliate under section 210(2)(b)(ii) of this act and amounts previously and subsequently raised by the public stadium authority under section 106(13) of this act. If the stadium and exhibition center project does not proceed, all principal and the interest in the escrow account shall be distributed to the team affiliate or the entity that has an option to become a team affiliate.

NEW SECTION. Sec. 212. The proceeds from the sale of the bonds authorized in section 210 of this act shall be deposited in the stadium and exhibition center construction account, hereby created in the custody of the state treasurer, and shall be used exclusively for the purposes specified in section 210 of this act and for the payment of expenses incurred in the issuance and sale of the bonds. These proceeds shall be administered by the office of financial management. Only the director of the office of financial management or the director's designee may authorize expenditures from the account. The account is subject to the allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures. At the direction of the office of financial management the state treasurer shall transfer moneys from the stadium and exhibition center construction account to the public stadium authority created in section 102 of this act as required by the public stadium authority.

NEW SECTION. Sec. 213. The nondebt-limit reimbursable bond retirement account shall be used for the payment of the principal of and interest on the bonds authorized in section 210 of this act.

The state finance committee shall, on or before June 30th of each year, certify to the state treasurer the amount needed in the ensuing twelve months to meet the bond retirement and interest requirements. On each date on which any interest or principal and interest payment is due, the state treasurer shall transfer from the stadium and exhibition center account to the nondebt-limit reimbursable bond retirement account an amount equal to the amount certified by the state finance committee to be due on the payment date.

Bonds issued under section 210 of this act shall state that they are a general obligation of the state of Washington, shall pledge the full faith and credit of the state to the payment of the principal thereof and the interest thereon, and shall contain an unconditional promise to pay the principal and interest as the same shall become due. If in any year the amount accumulated in the stadium and exhibition center account is insufficient for payment of the principal and interest on the bonds issued under section 210 of this act, the amount of the insufficiency shall be a continuing obligation against the stadium and exhibition center account until paid.

The owner and holder of each of the bonds or the trustee for the owner and holder of any of the bonds may by mandamus or other appropriate proceeding require the transfer and payment of funds as directed in this section.

NEW SECTION. Sec. 214. (1) The stadium and exhibition center account is created in the custody of the state treasurer. All receipts from the taxes imposed under section 204 of this act and distributions under RCW 67.70.240(5) shall be deposited into the account. Only the director of the office of financial management or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW. An appropriation is not required for expenditures from this account.

(2) Until bonds are issued under section 210 of this act, up to five million dollars per year beginning January 1, 1999, shall be used for the purposes of subsection (3)(b) of this section, all remaining moneys in the account shall be transferred to the public stadium authority, created under section 102 of this act, to be used for public stadium authority operations and development of the stadium and exhibition center.

(3) After bonds are issued under section 210 of this act, all moneys in the stadium and exhibition center account shall be used exclusively for the following purposes in the following priority:

(a) On or before June 30th of each year, the office of financial management shall accumulate in the stadium and exhibition center account an amount at least equal to the amount required in the next succeeding twelve months for the payment of principal of and interest on the bonds issued under section 210 of this act;

(b) An additional reserve amount not in excess of the expected average annual principal and interest requirements of bonds issued under section 210 of this act shall be accumulated and maintained in the account, subject to withdrawal by the state treasurer at any time if necessary to meet the requirements of (a) of this subsection, and, following any withdrawal, reaccumulated from the first tax revenues and other amounts deposited in the account after meeting the requirements of (a) of this subsection; and

(c) The balance, if any, shall be transferred to the youth athletic facility grant account under subsection (4) of this section.

Any revenues derived from the taxes authorized by RCW 36.38.010(5) and section 302 of this act or other amounts that if used as provided under (a) and (b) of this subsection would cause the loss of any tax exemption under federal law for interest on bonds issued under section 210 of this act shall be deposited in and used exclusively for the purposes of the youth athletic facility grant account and shall not be used, directly or indirectly, as a source of payment of principal of or interest on bonds issued under section 210 of this act, or to replace or reimburse other funds used for that purpose.

(4) Any moneys in the stadium and exhibition center account not required or permitted to be used for the purposes described in subsection (3)(a) and (b) of this section shall be deposited in the youth athletic facility grant account hereby created in the state treasury. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for purposes of grants to cities, counties, and qualified nonprofit organizations for youth athletic facilities. The athletic facility grants may be used for acquiring, developing, equipping, maintaining, and improving youth athletic facilities. Funds shall be divided equally between the development of new athletic facilities, the improvement of existing athletic facilities, and the maintenance of existing athletic facilities. Cities, counties, and qualified nonprofit organizations must submit proposals for grants from the account. To the extent that funds are available, cities, counties, and qualified nonprofit organizations must meet eligibility criteria as established by the director of the interagency committee for outdoor recreation. The grants shall be awarded on a competitive application process and the amount of the grant shall be in proportion to the population of the city or county for where the youth athletic facility is located. Grants awarded in any one year need not be distributed in that year.

NEW SECTION. Sec. 215. Unless the office of financial management certifies by December 31, 1997, that the following conditions have been met, sections 201 through 208 of this act are null and void:

(1) The professional football team that will use the stadium and exhibition center is at least majority-owned and controlled by, directly or indirectly, one or more persons who are each residents of the state of Washington and who have been residents of the state of Washington continuously since at least January 1, 1993;

(2) The county in which the stadium and exhibition center is to be constructed has created a public stadium authority under this chapter to acquire property, construct, own, remodel, maintain, equip, reequip, repair, and operate a stadium and exhibition center;

(3) The county in which the stadium and exhibition center is to be constructed has enacted the taxes authorized in RCW 36.38.010(5) and section 302 of this act; and

(4) The county in which the stadium and exhibition center is to be constructed pledges to maintain and continue the taxes authorized in RCW 36.38.010(5), 67.28.180, and section 302 of this act until the bonds authorized in section 210 of this act are fully redeemed, both principal and interest.

NEW SECTION. Sec. 216. The legislature may provide additional means for raising moneys for the payment of the principal of and interest on the bonds authorized in section 210 of this act, and section 213 of this act shall not be deemed to provide an exclusive method for the payment.

NEW SECTION. Sec. 217. The bonds authorized in section 210 of this act shall be a legal investment for all state funds or funds under state control and for all funds of any other public body.

NEW SECTION. Sec. 218. (1) The total public share of a stadium and exhibition center shall not exceed three hundred million dollars. For the purposes of this section, "total public share" means all state and local funds expended for preconstruction and construction costs of the stadium and exhibition center, including proceeds of any bonds issued for the purposes of the stadium and exhibition center, tax revenues, and interest earned on the escrow account described in section 211 of this act and not including expenditures for deferred sales taxes.

(2) Sections 201 through 207, chapter . . ., Laws of 1997 (sections 201 through 207 of this act) and this chapter constitute the entire state contribution for a stadium and exhibition center. The state will not make any additional contributions based on revised cost or revenue estimates, cost overruns, unforeseen circumstances, or any other reason.

NEW SECTION. Sec. 219. The bonds authorized for the purposes identified in section 210 of this act are exempt from the statutory limitations of indebtedness under RCW 39.42.060.

Sec. 220. RCW 39.42.060 and 1993 c 52 s 1 are each amended to read as follows:

No bonds, notes, or other evidences of indebtedness for borrowed money shall be issued by the state which will cause the aggregate debt contracted by the state to exceed that amount for which payments of principal and interest in any fiscal year would require the state to expend more than seven percent of the arithmetic mean of its general state revenues, as defined in section 1(c) of Article VIII of the Washington state Constitution for the three immediately preceding fiscal years as certified by the treasurer in accordance with RCW 39.42.070. It shall be the duty of the state finance committee to compute annually the amount required to pay principal of and interest on outstanding debt. In making such computation, the state finance committee shall include all borrowed money represented by bonds, notes, or other evidences of indebtedness which are secured by the full faith and credit of the state or are required to be paid, directly or indirectly, from general state revenues and which are incurred by the state, any department, authority, public corporation or quasi public corporation of the state, any state university or college, or any other public agency created by the state but not by counties, cities, towns, school districts, or other municipal corporations, and shall include debt incurred pursuant to section 3 of Article VIII of the Washington state Constitution, but shall exclude the following:

(1) Obligations for the payment of current expenses of state government;

(2) Indebtedness incurred pursuant to RCW 39.42.080 or 39.42.090;

(3) Principal of and interest on bond anticipation notes;

(4) Any indebtedness which has been refunded;

(5) Financing contracts entered into under chapter 39.94 RCW;

(6) Indebtedness authorized or incurred before July 1, 1993, pursuant to statute which requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from money other than general state revenues or from the special excise tax imposed pursuant to chapter 67.40 RCW;

(7) Indebtedness authorized and incurred after July 1, 1993, pursuant to statute that requires that the state treasury be reimbursed, in the amount of the principal of and the interest on such indebtedness, from (a) moneys outside the state treasury, except higher education operating fees, (b) higher education building fees, (c) indirect costs recovered from federal grants and contracts, and (d) fees and charges associated with hospitals operated or managed by institutions of higher education; ((and))

(8) Any agreement, promissory note, or other instrument entered into by the state finance committee under RCW 39.42.030 in connection with its acquisition of bond insurance, letters of credit, or other credit support instruments for the purpose of guaranteeing the payment or enhancing the marketability, or both, of any state bonds, notes, or other evidence of indebtedness; and

(9) Indebtedness incurred for the purposes identified in section 210 of this act.

To the extent necessary because of the constitutional or statutory debt limitation, priorities with respect to the issuance or guaranteeing of bonds, notes, or other evidences of indebtedness by the state shall be determined by the state finance committee.

Sec. 221. RCW 43.79A.040 and 1996 c 253 s 409 are each amended to read as follows:

(1) Money in the treasurer's trust fund may be deposited, invested and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.

(2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.

(3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

(4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.

(b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The agricultural local fund, the American Indian scholarship endowment fund, the Washington international exchange scholarship endowment fund, the energy account, the fair fund, the game farm alternative account, the grain inspection revolving fund, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility grant account, and the self-insurance revolving fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, and the local rail service assistance account.

(5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 222. A new section is added to chapter 43.330 RCW to read as follows:

The film and video promotion account is created in the state treasury. All receipts from section 106(12) of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used by the department of community, trade, and economic development only for the purposes of promotion of the film and video production industry in the state of Washington.

PART III

LOCAL CONTRIBUTION

Sec. 301. RCW 36.38.010 and 1995 3rd sp.s. c 1 s 203 are each amended to read as follows:

(1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place shall collect and remit the tax to the county treasurer of the county: PROVIDED, No county shall impose such tax on persons paying an admission to any activity of any elementary or secondary school.

(2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges shall be considered as the admission charge. It shall also include any automobile parking charge where the amount of such charge is determined according to the number of passengers in any automobile.

(3) Subject to subsections (4) and (5) of this section, the tax herein authorized shall not be exclusive and shall not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind: PROVIDED, That whenever the same or similar kind of tax is imposed by any such city or town, no such tax shall be levied within the corporate limits of such city or town by the county((, except that)).

(4) Notwithstanding subsection (3) of this section, the legislative authority of a county with a population of one million or more may exclusively levy taxes on events in baseball stadiums constructed on or after January 1, 1995, that are owned by a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rates of:

(a) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. If the revenue from the tax exceeds the amount needed for that purpose, the excess shall be placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction; and

(b) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. The tax imposed under this subsection (((3))) (4)(b) shall expire when the bonds issued for the construction of the baseball stadium are retired, but not later than twenty years after the tax is first collected.

(5) Notwithstanding subsection (3) of this section, the legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under section 105 of this act may levy and fix a tax on charges for admission to events in a stadium and exhibition center, as defined in section 101 of this act, constructed in the county on or after January 1, 1998, that is owned by a public stadium authority under chapter 36.-- RCW (sections 101 through 118 and 201 of this act). The tax shall be exclusive and shall preclude the city or town within which the stadium and exhibition center is located from imposing a tax of the same or similar kind on charges for admission to events in the stadium and exhibition center, and shall preclude the imposition of a general county admissions tax on charges for admission to events in the stadium and exhibition center. For the purposes of this subsection, "charges for admission to events" means only the actual admission charge, exclusive of taxes and service charges and the value of any other benefit conferred by the admission. The tax authorized under this subsection shall be at the rate of not more than one cent on ten cents or fraction thereof. Revenues collected under this subsection shall be deposited in the stadium and exhibition center account under section 214 of this act until the bonds issued under section 210 of this act for the construction of the stadium and exhibition center are retired. After the bonds issued for the construction of the stadium and exhibition center are retired, the tax authorized under this section shall be used exclusively to fund repair, reequipping, and capital improvement of the stadium and exhibition center. The tax under this subsection may be levied upon the first use of any part of the stadium and exhibition center but shall not be collected at any facility already in operation as of the effective date of this section.

NEW SECTION. Sec. 302. A new section is added to chapter 36.38 RCW to read as follows:

The legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under section 105 of this act may levy and fix a tax on any vehicle parking charges imposed at any parking facility that is part of a stadium and exhibition center, as defined in section 101 of this act. The tax shall be exclusive and shall preclude the city or town within which the stadium and exhibition center is located from imposing within its corporate limits a tax of the same or similar kind on any vehicle parking charges imposed at any parking facility that is part of a stadium and exhibition center. For the purposes of this section, "vehicle parking charges" means only the actual parking charges exclusive of taxes and service charges and the value of any other benefit conferred. The tax authorized under this section shall be at the rate of not more than ten percent. Revenues collected under this section shall be deposited in the stadium and exhibition center account under section 214 of this act until the bonds issued under section 210 of this act for the construction of the stadium and exhibition center are retired. After the bonds issued for the construction of the stadium and exhibition center are retired, the tax authorized under this section shall be used exclusively to fund repair, reequipping, and capital improvement of the stadium and exhibition center. The tax under this section may be levied upon the first use of any part of the stadium and exhibition center but shall not be collected at any facility already in operation as of the effective date of this section.

PART IV

PUBLIC WORKS PROVISIONS

Sec. 401. RCW 36.32.235 and 1996 c 219 s 2 are each amended to read as follows:

(1) In each county with a population of one million or more which by resolution establishes a county purchasing department, the purchasing department shall enter into leases of personal property on a competitive basis and purchase all supplies, materials, and equipment on a competitive basis, for all departments of the county, as provided in this chapter and chapter 39.04 RCW, except that the county purchasing department is not required to make purchases that are paid from the county road fund or equipment rental and revolving fund.

(2) As used in this section, "public works" has the same definition as in RCW 39.04.010.

(3) Except as otherwise specified in this chapter or in chapter 36.77 RCW, all counties subject to these provisions shall contract on a competitive basis for all public works after bids have been submitted to the county upon specifications therefor. Such specifications shall be in writing and shall be filed with the clerk of the county legislative authority for public inspection.

(4) An advertisement shall be published in the county official newspaper stating the time and place where bids will be opened, the time after which bids will not be received, the character of the work to be done, the materials and equipment to be furnished, and that specifications therefor may be seen at the office of the clerk of the county legislative authority. An advertisement shall also be published in a legal newspaper of general circulation in or as near as possible to that part of the county in which such work is to be done. If the county official newspaper is a newspaper of general circulation covering at least forty percent of the residences in that part of the county in which such public works are to be done, then the publication of an advertisement of the applicable specifications in the county official newspaper is sufficient. Such advertisements shall be published at least once at least thirteen days prior to the last date upon which bids will be received.

(5) The bids shall be in writing, shall be filed with the clerk, shall be opened and read in public at the time and place named therefor in the advertisements, and after being opened, shall be filed for public inspection. No bid may be considered for public work unless it is accompanied by a bid deposit in the form of a surety bond, postal money order, cash, cashier's check, or certified check in an amount equal to five percent of the amount of the bid proposed.

(6) The contract for the public work shall be awarded to the lowest responsible bidder. Any or all bids may be rejected for good cause. The county legislative authority shall require from the successful bidder for such public work a contractor's bond in the amount and with the conditions imposed by law.

(7) If the bidder to whom the contract is awarded fails to enter into the contract and furnish the contractor's bond as required within ten days after notice of the award, exclusive of the day of notice, the amount of the bid deposit shall be forfeited to the county and the contract awarded to the next lowest and best bidder. The bid deposit of all unsuccessful bidders shall be returned after the contract is awarded and the required contractor's bond given by the successful bidder is accepted by the county legislative authority. Immediately after the award is made, the bid quotations obtained shall be recorded and open to public inspection and shall be available by telephone inquiry.

(8) As limited by subsection (10) of this section, a county subject to these provisions may have public works performed by county employees in any annual or biennial budget period equal to a dollar value not exceeding ten percent of the public works construction budget, including any amount in a supplemental public works construction budget, over the budget period.

Whenever a county subject to these provisions has had public works performed in any budget period up to the maximum permitted amount for that budget period, all remaining public works except emergency work under subsection (12) of this section within that budget period shall be done by contract pursuant to public notice and call for competitive bids as specified in subsection (3) of this section. The state auditor shall report to the state treasurer any county subject to these provisions that exceeds this amount and the extent to which the county has or has not reduced the amount of public works it has performed by public employees in subsequent years.

(9) If a county subject to these provisions has public works performed by public employees in any budget period that are in excess of this ten percent limitation, the amount in excess of the permitted amount shall be reduced from the otherwise permitted amount of public works that may be performed by public employees for that county in its next budget period. Ten percent of the motor vehicle fuel tax distributions to that county shall be withheld if two years after the year in which the excess amount of work occurred, the county has failed to so reduce the amount of public works that it has performed by public employees. The amount withheld shall be distributed to the county when it has demonstrated in its reports to the state auditor that the amount of public works it has performed by public employees has been reduced as required.

(10) In addition to the percentage limitation provided in subsection (8) of this section, counties subject to these provisions containing a population of one million or more shall not have public employees perform a public works project in excess of seventy thousand dollars if more than a single craft or trade is involved with the public works project, or a public works project in excess of twenty-five thousand dollars if only a single craft or trade is involved with the public works project. A public works project means a complete project. The restrictions in this subsection do not permit the division of the project into units of work or classes of work to avoid the restriction on work that may be performed by public employees on a single project.

The cost of a separate public works project shall be the costs of materials, supplies, equipment, and labor on the construction of that project. The value of the public works budget shall be the value of all the separate public works projects within the budget.

(11) In addition to the accounting and recordkeeping requirements contained in chapter 39.04 RCW, any county which uses public employees to perform public works projects under RCW 36.32.240(1) shall prepare a year-end report to be submitted to the state auditor indicating the total dollar amount of the county's public works construction budget and the total dollar amount for public works projects performed by public employees for that year.

The year-end report submitted pursuant to this subsection to the state auditor shall be in accordance with the standard form required by RCW 43.09.205.

(12) Notwithstanding any other provision in this section, counties may use public employees without any limitation for emergency work performed under an emergency declared pursuant to RCW 36.32.270, and any such emergency work shall not be subject to the limitations of this section. Publication of the description and estimate of costs relating to correcting the emergency may be made within seven days after the commencement of the work. Within two weeks of the finding that such an emergency existed, the county legislative authority shall adopt a resolution certifying the damage to public facilities and costs incurred or anticipated relating to correcting the emergency. Additionally this section shall not apply to architectural and engineering or other technical or professional services performed by public employees in connection with a public works project.

(13) In lieu of the procedures of subsections (3) through (11) of this section, a county may use a small works roster process and award contracts for public works projects with an estimated value of ten thousand dollars up to one hundred thousand dollars as provided in RCW 39.04.155.

Whenever possible, the county shall invite at least one proposal from a minority or woman contractor who shall otherwise qualify under this section.

(14) The allocation of public works projects to be performed by county employees shall not be subject to a collective bargaining agreement.

(15) This section does not apply to performance-based contracts, as defined in RCW 39.35A.020(3), that are negotiated under chapter 39.35A RCW.

(16) Nothing in this section prohibits any county from allowing for preferential purchase of products made from recycled materials or products that may be recycled or reused.

(17) This section does not apply to contracts between the public stadium authority and a team affiliate under section 106(4) of this act, or development agreements between the public stadium authority and a team affiliate under section 106(7) of this act or leases entered into under section 106(8) of this act.

Sec. 402. RCW 39.04.010 and 1993 c 174 s 1 are each amended to read as follows:

The term state shall include the state of Washington and all departments, supervisors, commissioners and agencies thereof.

The term municipality shall include every city, county, town, district or other public agency thereof which is authorized by law to require the execution of public work, except drainage districts, diking districts, diking and drainage improvement districts, drainage improvement districts, diking improvement districts, consolidated diking and drainage improvement districts, consolidated drainage improvement districts, consolidated diking improvement districts, irrigation districts or any such other districts as shall from time to time be authorized by law for the reclamation or development of waste or undeveloped lands.

The term public work shall include all work, construction, alteration, repair, or improvement other than ordinary maintenance, executed at the cost of the state or of any municipality, or which is by law a lien or charge on any property therein. All public works, including maintenance when performed by contract shall comply with the provisions of RCW 39.12.020. The term does not include work, construction, alteration, repair, or improvement performed under contracts entered into under section 106(4) of this act or under development agreements entered into under section 106(7) of this act or leases entered into under section 106(8) of this act.

The term contract shall mean a contract in writing for the execution of public work for a fixed or determinable amount duly awarded after advertisement and competitive bid. However, a contract which is awarded from a small works roster under the authority of RCW 39.04.150, 35.22.620, 28B.10.355, 35.82.075, and 57.08.050 need not be advertised.

NEW SECTION. Sec. 403. A new section is added to chapter 39.30 RCW to read as follows:

This chapter does not apply to contracts entered into under section 106(4) of this act or development agreements entered into under section 106(7) of this act.

Sec. 404. RCW 39.10.120 and 1995 3rd sp.s. c 1 s 305 are each amended to read as follows:

(1) Except as provided in subsections (2) and (3) of this section, the alternative public works contracting procedures authorized under this chapter are limited to public works contracts signed before July 1, ((1997)) 2001. Methods of public works contracting authorized by RCW 39.10.050 and 39.10.060 shall remain in full force and effect until completion of contracts signed before July 1, ((1997)) 2001.

(2) For the purposes of a baseball stadium as defined in RCW 82.14.0485, the design-build contracting procedures under RCW 39.10.050 shall remain in full force and effect until completion of contracts signed before December 31, 1997.

(3) For the purposes of a stadium and exhibition center, as defined in section 101 of this act, the design-build contracting procedures under RCW 39.10.050 shall remain in full force and effect until completion of contracts signed before December 31, 2002.

PART V

KINGDOME DEBT

Sec. 501. RCW 67.28.180 and 1995 1st sp.s. c 14 s 10 are each amended to read as follows:

(1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property: PROVIDED, That it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.

(2) Any levy authorized by this section shall be subject to the following:

(a) Any county ordinance or resolution adopted pursuant to this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.

(b) In the event that any county has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such county shall be exempt from the provisions of (a) of this subsection, to the extent that the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160: PROVIDED, That so much of such pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used: (i) In any county with a population of one million or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred; ((or)) (ii) in any county with a population of one million or more, for repayment or refinancing of bonded indebtedness incurred prior to January 1, 1997, for any purpose authorized by this section or relating to stadium repairs or rehabilitation, including but not limited to the cost of settling legal claims, reimbursing operating funds, interest payments on short-term loans, and any other purpose for which such debt has been incurred if the county has created a public stadium authority to develop a stadium and exhibition center under section 103 of this act; or (iii) in other counties, for county-owned facilities for agricultural promotion. A county is exempt under this subsection in respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013.

As used in this subsection (2)(b), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto. The stadium restaurant authorized by this subsection (2)(b) shall be operated by a private concessionaire under a contract with the county.

(c)(i) No city within a county exempt under subsection (2)(b) of this section may levy the tax authorized by this section so long as said county is so exempt((: PROVIDED, That)).

(ii) If bonds have been issued under section 210 of this act and any necessary property transfers have been made under section 109 of this act, no city within a county with a population of one million or more may levy the tax authorized by this section before January 1, 2021.

(iii) However, in the event that any city in ((such)) a county described in (i) or (ii) of this subsection (2)(c) has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such city may levy the tax so long as the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.

(3) Any levy authorized by this section by a county that has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160 shall be subject to the following:

(a) Taxes collected under this section in any calendar year before 2013 in excess of five million three hundred thousand dollars shall only be used as follows:

(i) Seventy-five percent from January 1, 1992, through December 31, 2000, and seventy percent from January 1, 2001, through December 31, 2012, for art museums, cultural museums, heritage museums, the arts, and the performing arts. Moneys spent under this subsection (3)(a)(i) shall be used for the purposes of this subsection (3)(a)(i) in all parts of the county.

(ii) Twenty-five percent from January 1, 1992, through December 31, 2000, and thirty percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority: Stadium ((capital improvements, as defined in)) purposes as authorized under subsection (2)(b) of this section; acquisition of open space lands; youth sports activities; and tourism promotion. If all or part of the debt on the stadium is refinanced, all revenues under this subsection (3)(a)(ii) shall be used to retire the debt.

(b) From January 1, 2013, through December 31, 2015, in a county with a population of one million or more, all revenues under this section shall be used to retire the debt on the stadium, or deposited in the stadium and exhibition center account under section 214 of this act after the debt on the stadium is retired.

(c) From January 1, 2016, through December 31, 2020, in a county with a population of one million or more, all revenues under this section shall be deposited in the stadium and exhibition center account under section 214 of this act.

(d) At least seventy percent of moneys spent under (a)(i) of this subsection for the period January 1, 1992, through December 31, 2000, shall be used only for the purchase, design, construction, and remodeling of performing arts, visual arts, heritage, and cultural facilities, and for the purchase of fixed assets that will benefit art, heritage, and cultural organizations. For purposes of this subsection, fixed assets are tangible objects such as machinery and other equipment intended to be held or used for ten years or more. Moneys received under this subsection (3)(((b))) (d) may be used for payment of principal and interest on bonds issued for capital projects. Qualifying organizations receiving moneys under this subsection (3)(((b))) (d) must be financially stable and have at least the following:

(i) A legally constituted and working board of directors;

(ii) A record of artistic, heritage, or cultural accomplishments;

(iii) Been in existence and operating for at least two years;

(iv) Demonstrated ability to maintain net current liabilities at less than thirty percent of general operating expenses;

(v) Demonstrated ability to sustain operational capacity subsequent to completion of projects or purchase of machinery and equipment; and

(vi) Evidence that there has been independent financial review of the organization.

(((c))) (e) At least forty percent of the revenues distributed pursuant to (a)(i) of this subsection for the period January 1, 2001, through December 31, 2012, shall be deposited in an account and shall be used to establish an endowment. Principal in the account shall remain permanent and irreducible. The earnings from investments of balances in the account may only be used for the purposes of (a)(i) of this subsection.

(((d))) (f) School districts and schools shall not receive revenues distributed pursuant to (a)(i) of this subsection.

(((e))) (g) Moneys distributed to art museums, cultural museums, heritage museums, the arts, and the performing arts, and moneys distributed for tourism promotion shall be in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.

(((f))) (h) As used in this section, "tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events. Moneys allocated to tourism promotion in a class AA county shall be allocated to nonprofit organizations formed for the express purpose of tourism promotion in the county. Such organizations shall use moneys from the taxes to promote events in all parts of the class AA county.

(((g))) (i) No taxes collected under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged. Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.

(((h))) (j) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes collected under this section are or are projected to be insufficient to meet debt service requirements on such bonds.

(((i))) (k) If a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged shall be retired. This subsection (3)(((i))) (k) does not apply in respect to a public stadium under chapter 36.-- RCW (sections 101 through 118 and 201 of this act) transferred to, owned by, or constructed by a public facilities district under chapter 36.100 RCW or a stadium and exhibition center.

(((j))) (l) The county shall not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government. This subsection (3)(((j))) (l) does not apply to contracts in existence on April 1, 1986.

If a court of competent jurisdiction declares any provision of this subsection (3) invalid, then that invalid provision shall be null and void and the remainder of this section is not affected.

Sec. 502. RCW 82.14.049 and 1992 c 194 s 3 are each amended to read as follows:

The legislative authority of any county may impose a sales and use tax, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall be one percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax. Proceeds of the tax shall not be used to subsidize any professional sports team and shall be used solely for the following purposes:

(1) Acquiring, constructing, maintaining, or operating public sports stadium facilities;

(2) Engineering, planning, financial, legal, or professional services incidental to public sports stadium facilities; ((or))

(3) Youth or amateur sport activities or facilities; or

(4) Debt or refinancing debt issued for the purposes of subsection (1) of this section.

At least seventy-five percent of the tax imposed under this section shall be used for the purposes of subsections (1), (2), and (4) of this section.

PART VI

MISCELLANEOUS

NEW SECTION. Sec. 601. Part headings used in this act are not any part of the law.

NEW SECTION. Sec. 602. 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. 603. (1) Sections 101 through 118 and 201 of this act constitute a new chapter in Title 36 RCW.

(2) Sections 209 through 219 of this act constitute a new chapter in Title 43 RCW.

NEW SECTION. Sec. 604. The referendum on this act is the only measure authorizing, levying, or imposing taxes for a stadium and exhibition center that may be put to a public vote. Should the act fail to be approved at the special election on or before June 20, 1997, the legislature shall not pass other legislation to build or finance a stadium and exhibition center, as defined in section 101 of this act, for the team affiliate.

NEW SECTION. Sec. 605. The legislature neither affirms nor refutes the value of this proposal, and by this legislation simply expresses its intent to provide the voter of the state of Washington an opportunity to express the voter's decision. It is also expressed that many legislators might personally vote against this proposal at the polls, or they might not.

NEW SECTION. Sec. 606. Notwithstanding any other provision of this act, this act shall be null and void in its entirety unless the team affiliate as defined in section 101 of this act enters into an agreement with the secretary of state to reimburse the state and the counties for the full cost of the special election to be held on or before June 20, 1997.

NEW SECTION. Sec. 607. (1) The secretary of state shall submit sections 101 through 604 of this act to the people for their adoption and ratification, or rejection, at a special election to be held in this state on or before June 20, 1997, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation. The special election shall be limited to submission of this act to the people.

(2) The attorney general shall prepare the explanatory statement required by RCW 29.81.020 and transmit that statement regarding the referendum to the secretary of state no later than the last Monday of April before the special election.

(3) The secretary of state shall prepare and distribute a voters' pamphlet addressing this referendum measure following the procedures and requirements of chapter 29.81 RCW, except that the secretary of state may establish different deadlines for the appointment of committees to draft arguments for and against the referendum, for submitting arguments for and against the referendum, and for submitting rebuttal statements of arguments for and against the referendum. The voters' pamphlet description of the referendum measure may include information to inform the public that ownership of the KingDome will be transferred to the public stadium authority and that the KingDome may be demolished in order to accommodate the new football stadium.

(4) A county auditor may conduct the voting at this special election in all precincts of the county by mail using the procedures set forth in RCW 29.36.121 through 29.36.139.

(5) Notwithstanding the provisions of RCW 29.62.020, the county canvassing board in each county shall canvass and certify the votes cast at this special election in that county to the secretary of state no later than the seventh day following the election. Notwithstanding the provisions of RCW 29.62.120, the secretary of state shall canvass and certify the returns from the counties no later than the ninth day following the special election.

(6) The secretary of state shall reimburse each county for the cost of conducting the special election in that county in the same manner as state primary and general election costs are reimbursed under RCW 29.13.047 (1) and (3).

(7) No other state, county, or local election shall be required or held on any proposition related to or affecting the stadium and exhibition center defined in section 101 of this act.

NEW SECTION. Sec. 608. Sections 606 and 607 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

Correct the title.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (671)

On page 3, line 25 of the striking amendment, after "senate." insert "No member of the advisory committee shall be a legislator. One member of the advisory committee shall be a real estate professional, and one member shall be a commercial banker."

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

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

With the consent of the House, amendment number 636 was withdrawn.

Representative Benson moved the adoption of the following amendment by Representative Benson: (734)

On page 4, line 12 of the striking amendment, after "center." insert "If the public stadium authority or team affiliate elects to use the alternative public works contracting procedures, the public stadium authority or team affiliate shall abide by all of the applicable requirements of, and follow all the applicable procedures within, chapter 39.10 RCW."

On page 5, line 17 of the striking amendment, after "development." insert "The bidding specifications, requirements, and other aspects of development shall be consistent with all public works requirements applicable for the county in which the public stadium authority is created, including applicable requirements of chapter 39.04 RCW, chapter 36.32 RCW, and chapter 39.10 RCW."

Beginning on page 28 of the striking amendment, strike all of sections 401, 402, and 403.

Renumber the remaining sections consecutively, and correct internal references.

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

Representatives Zellinsky and Sehlin spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 37-YEAS; 60-NAYS. The amendment was not adopted.

Representative Sherstad moved the adoption of the following amendment by Representative Sherstad: (749)

On page 4 of the striking amendment, beginning on line 14, strike all of subsection (6)

On page 5, line 23 of the striking amendment, after "subject to the" strike all material through "and"

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

Representatives Zellinsky, Butler, Conway and Cairnes spoke against adoption of the amendment. The amendment was not adopted.

With the consent of the House, amendment numbers 680, 709, 669 and 732 were withdrawn.

Representative Smith moved the adoption of the following amendment by Representative Smith: (742)

On page 5, line 27 of the striking amendment, after "to the" strike all materials through "located" on line 29, and insert "state goals for women and minority-business participation that are in effect at the time the development agreement with the team affiliate is approved by the public stadium authority"

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

Representatives Butler, D. Schmidt and Cooper spoke against the adoption of the amendment. The amendment was not adopted.

With the consent of the House, amendment numbers 720, 687, 633 and 730 were withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (756)

On page 5, beginning on line 36 of the striking amendment, after "fair" strike all material down through "authority" on line 37, and insert "market rent"

On page 6, line 5 of the striking amendment, after "fair" insert "market"

Representatives Sheldon, B. Thomas, McDonald, Dunshee and Sheldon spoke in favor of the adoption of the amendment.

Representatives Van Luven, Sehlin and Appelwick spoke against the adoption of the amendment. The amendment was not adopted.

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (766)

On page 5, line 36 of the striking amendment, after "rent" strike all materials through "authority" on line 37.

On page 6, line 27 of the striking amendment, after "exempt" insert ". As used in this subsection, "fair rent" is solely intended to cover the reasonable operating expenses of the public stadium authority and shall be not less than eight hundred fifty thousand dollars per year with annual increases bases on the consumer price index"

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

With the consent of the House, amendment numbers 766 and 679 were withdrawn.

Representative Clements moved the adoption of the following amendment by Representative Clements: (737)

On page 6, line 2 of the striking amendment, after "center." insert "The master tenant lease agreement must require the team affiliate to publicly disclose, on an annual basis, an audited profit and loss financial statement."

Representatives Clements and Van Luven spoke in favor of the adoption of the amendment. The amendment was adopted.

With the consent of the House, amendment numbers 634, 728 and 738 were withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (755)

On page 6, line 14 of the striking amendment, after "center." strike all material through "revenue." on line 19 and insert the following:

"The public stadium authority and master tenant shall share all revenues derived from permanent seat licenses, suite licenses, and long-term naming rights. The proportion received by the public stadium authority shall equal the proportion of the financing for the stadium and exhibition center provided for in section 218 of this act, relative to the proportion of the financing provided by the team affiliate. The revenue received by the public stadium authority under this subsection (8) shall be deposited into the stadium and exhibition center account established under section 214 of this act. The revenue received by the master tenant for long-term naming rights shall be subject to section 107 of this act. Except as otherwise provided in this subsection (8), the master tenant shall have the right to retain revenues derived from the operation of the stadium and exhibition center, including revenues from the sublease and uses, license and concession agreements, advertising, and parking."

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

Representative Van Luven spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 39-YEAS; 58-NAYS. The amendment was not adopted.

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (759)

On page 6, line 14 of the striking amendment, after "center." strike "The" and insert "Except as provided in subsection (10) of this section, the"

On page 6, after line 31 of the striking amendment, insert the following:

"(10) The master tenant may retain an amount to cover the actual cost of preparing the stadium and exhibition center for activities involving the Olympic Games and world cup soccer. Revenues derived from the operation of the stadium and exhibition center for activities identified in this subsection that exceed the master tenant’s actual costs of preparing, operating, and restoring the stadium and exhibition center must be deposited into the tourism development and promotion account created in section 223 of this act;"

Renumber the remaining subsection consecutively and correct internal references accordingly.

On page 26, after line 34 of the striking amendment, insert the following:

"NEW SECTION. Sec. 223. A new section is added to chapter 43.330 RCW to read as follows:

The tourism development and promotion account is created in the state treasury. All receipts from section 106(10) of this act must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used by the department of community, trade, and economic development only for the purposes of promotion of the tourism industry in the state of Washington."

Correct internal references accordingly and correct the title of the bill.

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

Representative Dunn moved the adoption of the following amendment by Representative Dunn: (758)

On page 6, line 14 of the striking amendment, after "center." strike "The" and insert "Except as provided in subsection (10) of this section, the"

On page 6, after line 31 of the striking amendment, insert the following:

"(10) The public stadium authority shall retain one and three-quarters percent of all revenues derived from the operation of the stadium and exhibition center to be divided as follows: (a) fourteen percent to be used to pay for local improvements within the areas immediately surrounding the stadium and exhibition center, (b) fourteen percent to be deposited into the youth athletic facility grant account created in section 214(4) of this act, (c) thirty-one percent to be deposited into the stadium and exhibition center account created in section 214(1) of this act, (d) fourteen percent may be distributed to a nonprofit organization to be used to support the special Olympics in the state of Washington, and (e) thirty-one percent shall be used for statewide tourism development and promotion activities of the department of community, trade, and economic development;"

Renumber the remaining subsections consecutively and correct internal references accordingly.

On page 21, line 10 of the striking amendment, after "under" insert "section 106(10) of this act and"

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

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

With the consent of the House, the following amendments 768 and 670 were withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (683)

On page 6, after line 27 of the striking amendment, insert:

"(a) Ten percent of all revenues derived from the sales of all advertising in or on the stadium and exhibition center shall be deposited into the stadium and exhibition account and used to retire the bonds issues under section 210 of this act."

Number the remaining subsection consecutively and correct internal references accordingly.

Representatives Sheldon, McDonald, Pennington and H. Sommers spoke in favor of the adoption of the amendment.

Representatives Sehlin, Van Luven, Appelwick and Wensman spoke against the adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 43-YEAS; 54-NAYS. The amendment was not adopted.

Representative Appelwick moved the adoption of the following amendment by Representative Appelwick: (751)

On page 6, line 28 of the striking amendment, after “(9)” strike “The” and insert “Subject to section 210 (2)(b)(ix) of this act the”

Representatives Appelwick, Van Luven and L. Thomas spoke in favor of the adoption of the amendment.

Representatives Bush and Benson spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 58-YEAS; 38-NAYS. The amendment was adopted.

Representative Veloria moved the adoption of the following amendment by Representative Veloria: (744)

On page 6, after line 31 of the striking amendment, insert the following:

"(10) The public stadium authority, in consultation with a public facilities district that is located within the county, shall work to eliminate the use of the stadium and exhibition center for events during the same time as events are held in the baseball stadium as defined in RCW 82.14.0485;"

Renumber the remaining subsections consecutively and correct internal references accordingly.

Representatives Veloria and Van Luven spoke in favor of the adoption of the amendment. The amendment was adopted.

With the consent of the House, amendments 707, 719, 668, 718, 682, 698, and 639 were withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (674)

On page 7, beginning on line 22 of the striking amendment, after "center" strike all material through "(d) Other" on line 30, and insert "and other"

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

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

With the consent of the House, amendment 727 was withdrawn.

Representative Lambert moved the adoption of the following amendment by Representative Lambert: (740)

On page 7, line 33 of the amendment, after "authority" strike "determines" and insert "and the county mutually determine"

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

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (681)

On page 8, line 10 of the striking amendment, after "structure" strike "and construction" and insert "is prohibited. Construction"

On page 8, line 15 of the striking amendment, strike "demolition of any existing domed stadium at the site" and insert "construction"

Representatives Sheldon, Pennington, B. Thomas and Dunshee spoke in favor of the adoption of the amendment.

Representatives Van Luven, Appelwick, Carrell and Zellinsky spoke against the adoption of the amendment. The amendment was not adopted.

With the consent of the House, amendment 700 was withdrawn.

Representative Schoesler moved the adoption of the following amendment by Representative Schoesler: (724)

On page 8 of the striking amendment, after line 16, insert the following:

"NEW SECTION. Sec. 110. Moneys expended by the public stadium authority for the construction of a stadium and convention center under section 105 of this act may not be expended for art."

Renumber remaining sections consecutively and correct internal references.

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

Representative Van Luven spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 34-YEAS; 62-NAYS. The amendment was not adopted.

Representative Lambert moved the adoption of the following amendment by Representative Lambert: (754)

On page 8, line 20 of the striking amendment, after "Sec. 111." insert "(1)"

On page 8, after line 32 of the striking amendment, insert the following:

"(2) The board of directors shall transmit a copy of the adopted annual operating budget of the public stadium authority to the governor and the majority leader and minority leader of the House of Representatives and the Senate. The budget information shall include, but is not limited to a statement of income and expenses of the public stadium authority."

Representatives Lambert and Van Luven spoke in favor of the adoption of the amendment. The amendment was adopted.

With the consent of the House, amendment 640 was withdrawn.

MOTION

Representative Schoesler moved the division of the question.

The Speaker explained that when the question (in this case, the consideration of a bill) was composed of more than one distinct proposition, (funding sources and elimination of existing physical structures), the question may be divided into separate parts, as long as each part can stand on its own. For example, the question of concurring with another chamber’s amendments to a bill and of passing the bill as amended. Both issues of the question are able to stand alone.

The Speaker stated the question before the House was Representative Schoesler’s motion to divide the question. A yes vote would divide the question into separate parts. Division was demanded. The Speaker divided the House. The results of the division was 23-YEAS; 73-NAYS. The motion was not carried.

Representative L. Thomas moved the adoption of the following amendment by Representative L. Thomas: (748)

On page 10, after line 18 of the striking amendment, insert the following:

"NEW SECTION. Sec. 119. The public stadium authority may refuse to disclose financial information on the master tenant, concessioners, the team affiliate, or subleasee under RCW 42.17.310.

Sec. 120. RCW 42.17.310 and 1996 c 305 s 2 are each amended to read as follows:

(1) The following are exempt from public inspection and copying:

(a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.

(b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.

(c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.

(d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.

(e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.

(f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.

(g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.

(h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.

(i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.

(j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.

(k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.

(l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.

(m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (i) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (ii) highway construction or improvement as required by RCW 47.28.070.

(n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under *RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.

(o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW, and by persons pertaining to export projects pursuant to RCW 43.23.035.

(p) Financial disclosures filed by private vocational schools under chapters 28B.85 and 28C.10 RCW.

(q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.

(r) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency.

(s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.

(t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.

(u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.

(v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.

(w)(i) The federal social security number of individuals governed under chapter 18.130 RCW maintained in the files of the department of health, except this exemption does not apply to requests made directly to the department from federal, state, and local agencies of government, and national and state licensing, credentialing, investigatory, disciplinary, and examination organizations; (ii) the current residential address and current residential telephone number of a health care provider governed under chapter 18.130 RCW maintained in the files of the department, if the provider requests that this information be withheld from public inspection and copying, and provides to the department an accurate alternate or business address and business telephone number. On or after January 1, 1995, the current residential address and residential telephone number of a health care provider governed under RCW 18.130.140 maintained in the files of the department shall automatically be withheld from public inspection and copying unless the provider specifically requests the information be released, and except as provided for under RCW 42.17.260(9).

(x) Information obtained by the board of pharmacy as provided in RCW 69.45.090.

(y) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.

(z) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.

(aa) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.

(bb) Financial and valuable trade information under RCW 51.36.120.

(cc) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or 70.123.075 or a rape crisis center as defined in RCW 70.125.030.

(dd) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.

(ee) Investigative records compiled by an employing agency conducting a current investigation of a possible unfair practice under chapter 49.60 RCW or of a possible violation of other federal, state, or local laws prohibiting discrimination in employment.

(ff) Business related information protected from public inspection and copying under RCW 15.86.110.

(gg) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW.

(hh) Information and documents created specifically for, and collected and maintained by a quality improvement committee pursuant to RCW 43.70.510, regardless of which agency is in possession of the information and documents.

(ii) Personal information in files maintained in a data base created under RCW 43.07.360.

(jj) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in section 101 of this act.

(2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.

(3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.

(4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld."

Correct internal references accordingly and correct the title.

Representatives L. Thomas and Clements spoke in favor of the adoption of the amendment. The amendment was adopted.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (673)

Beginning on page 11 of the striking amendment, line 25, strike all of section 202.

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

Representatives Sheldon, Smith and Sheldon spoke in favor of the adoption of the amendment.

Representatives Appelwick and Van Luven spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 45-YEAS; 52-NAYS. The amendment was not adopted.

With the consent of the House, amendment 641 was withdrawn.

Representative Lambert moved the adoption of the following amendment by Representative Lambert: (745)

On page 14, beginning on line 10 of the striking amendment, strike all of section 203, renumber the remaining sections consecutively, correct internal references accordingly, and correct the title.

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

Representative Appelwick spoke against the amendment. The amendment was not adopted.

With the consent of the House, amendment 699 was withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (686)

On page 15, line 11 of the striking amendment, after "67.70.240(5)" insert "Each year, the commission shall determine the impact of the new games upon deposits into the state's general fund under RCW 67.70.240(3). If the commission determines that the new games reduce deposits into the state's general fund in any year compared to deposits that would have occurred in the absence of the new games, the team affiliate, as defined in section 101 of this act, shall deposit in the state's general fund an amount determined by the commission to be equal to the reduction in state general fund deposits for that year prior to the distributions under RCW 67.70.240(5) taking effect."

Representatives Sheldon, Pennington, Dunshee, Smith, Dickerson, Pennington, Sheldon, DeBolt and H. Sommers spoke in favor of the adoption of the amendment.

Representatives Sehlin, Van Luven, Appelwick, O’Brien, Zellinsky and L. Thomas spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 44-YEAS; 54-NAYS.

Representative Dunn moved the adoption of the following amendment by Representative Dunn: (666)

On page 15, after line 11 of the striking amendment, insert the following:

"NEW SECTION. Sec. 206. A new section is added to chapter 67.70 RCW to read as follows:

The lottery commission shall conduct games with themes related to professional minor league sports in the state. These games are in addition to any games conducted under RCW 67.70.042 and are intended to generate additional moneys sufficient to cover the distributions under RCW 67.70.240(6). No game may be conducted under this section before January 1, 1998. No game is required to be conducted under this section after December 31, 2018.

For purposes of this section, "professional minor league sports" means a team that is not a member of the national football league, major league baseball, the national basketball association, the national hockey league, the major soccer league, or the major indoor soccer league and plays its home games within the boundaries of the state of Washington."

Renumber the remaining sections consecutively, correct internal references accordingly, and correct the title of the bill.

On page 16, after line 6 of the striking amendment, insert the following:

"(6) For distribution to the professional minor league stadium account created in section 218 of this act. Distributions to the account created in section 218 of this act shall be limited to the actual amount generated from lottery sales authorized under section 210 of this act, minus amounts authorized under subsections (1), (2), (7) and (8) of this section. Distributions under this subsection shall cease after December 31, 2018;"

Renumber the remaining sections consecutively, correct internal references accordingly, and correct the title of the bill.

On page 21, after line 13 of the striking amendment, insert the following:

"NEW SECTION. Sec. 214. (1) The professional minor league stadium account is created in the custody of the state treasurer. Distributions under RCW 67.70.240(6) shall be deposited into the account. Only the director of the department of community, trade, and economic development or the director’s designee may authorize expenditure from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

(2) Expenditures from the professional minor league stadium account may be used only for purposes of grants to cities and counties for professional minor league sports stadiums. The minor league stadium grants may be used to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a stadium to be used for professional minor league sports as defined in section 210 of this act.

(3) Cities and counties must submit proposals for grants from the account. To the extent funds are available, cities and counties must meet eligibility criteria as established by the director of the department of community, trade, and economic development. The grants shall be awarded on a competitive basis and can be awarded on a multi-year basis not to exceed a ten-year period."

Renumber the remaining sections consecutively, correct internal references accordingly, and correct the title of the bill.

Representatives Dunn and Dunn spoke in favor of the adoption of the amendment.

Representatives Van Luven, Pennington and Radcliff spoke against the adoption of the amendment. The amendment was not adopted.

Representative Pennington moved the adoption of the following amendment by Representative Pennington: (697)

On page 17, after line 5 of the striking amendment, insert the following:

"NEW SECTION. Sec. 209. The legislature finds that user of a facility through user fees should assist in the financing of the facility. The legislature further finds that licensing of professional football teams and players is an appropriate method to generate revenue for the construction of the stadium and exhibition center as defined in section 101 of this act.

NEW SECTION. Sec. 210. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Department" means the department of licensing.

(2) "Director" means the director of the department of licensing or the director’s designee.

(3) "Professional football team" has the same meaning as in section 101 of this act.

(4) "Stadium and exhibition center" has the same meaning as in section 101 of this act.

(5) "Team affiliate" has the same meaning as in section 101 of this act.

NEW SECTION. Sec. 211. (1) Every professional football team that uses the stadium and exhibition center shall register on an annual basis with the department.

(2) The department shall charge a team registration fee as follows:

(a) Before July 1, 2004, the fee is fifty thousand dollars per year;

(b) July 1, 2004 to July 1, 2007, the fee is sixty-two thousand five hundred dollars per year;

(d) July 1, 2012 to July 1, 2015, the fee is eighty-seven thousand five hundred dollars per year;

(e) July 1, 2016 to July 1, 2019, the fee is one hundred thousand dollars per year; and

(f) After July 1, 2020, the fee is one hundred twenty-five thousand dollars per year.

(3) The fees collected under this section, minus administrative costs of the department, shall be deposited into the stadium and exhibition center account created under section 213 of this act.

(4) The department shall develop administrative procedures for the proper implementation of this chapter in accordance with chapter 34.05 RCW.

NEW SECTION. Sec. 212. (1) Every professional football player that is employed by a professional football team shall register on an annual basis with the department.

(2) The department shall charge a player registration fee as follows:

(a) Before July 1, 2004, the fee is one thousand dollars per year;

(b) July 1, 2004 to July 1, 2007, the fee is one thousand two hundred fifty dollars per year;

(d) July 1, 2012 to July 2015, the fee is one thousand seven hundred fifty dollars per year;

(e) July 1, 2016 to July 1, 2019, the fee is two thousand dollars per year; and

(f) After July 1, 2020, the fee is two thousand two hundred fifty dollars per year.

(3) The fees collected under this section, minus administrative costs of the department, shall be deposited into the stadium and exhibition center account created under section 213 of this act.

(4) The department shall development administrative procedures for the proper implementation of this chapter in accordance with chapter 34.05 RCW."

Renumber the remaining sections consecutively, correct internal references, and correct the title of the bill.

On page 21, line 9 of the striking amendment, after "section 204 of this act" insert ", registration fees collected under sections 211 and 212 of this act,"

On page 41, after line 2 of the striking amendment, insert the following:

"(3) Sections 209 through 212 of this act shall constitute a new chapter in Title 18 RCW."

Renumber the remaining subsection consecutively, correct internal references accordingly, and correct the title of the bill.

Representatives Pennington, Pennington, Dunshee and Dickerson spoke in favor of the adoption of the amendment.

Representatives Van Luven, Schoesler and Dunn spoke against adoption of the amendment. The amendment was not adopted.

Representative Alexander moved the adoption of the following amendment by Representative Alexander: (716)

On page 17, after line 28 of the striking amendment, insert the following:

"(b) The majority owner of the team affiliate has signed a personal guarantee to cover payments of principal and interest on bonds issued under section 210 of this act, if revenues in the stadium and exhibition center account created in section 214 of this act are insufficient to cover required payments; and"

Renumber the remaining subparagraphs consecutively and correct internal references accordingly.

Representatives Alexander, B. Thomas, Smith, Benson, H. Sommers, DeBolt, Sheldon and B. Thomas spoke in favor of the amendment.

Representatives Van Luven, Appelwick, Sehlin and Van Luven spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 47-YEAS; 50-NAYS. The amendment was not adopted.

With the consent of the House, amendments 733, 676, 637, 638, 675 and 711 were withdrawn.

Representative Appelwick moved the adoption of the following amendment by Representative Appelwick: (752)

On page 18, beginning on line 13 of the striking amendment, after "shall" strike all material down through "deposited" on line 14 and insert "deposit at least ten million dollars"

Representatives Appelwick, Van Luven and McDonald spoke in favor of the adoption of the amendment. The amendment was adopted.

Representative Carrell moved the adoption of the following amendment by Representative Carrell: (769)

On page 18, line 13 of the striking amendment, after "least" strike "six" and insert "ten"

On page 18, line 14 of the striking amendment, after "into the" strike all material through "act" on line 15, and insert "stadium and exhibition center account"

On page 22, line 14 of the striking amendment, after "deposited in the" strike all materials through "year" on line 32, and insert "permanent common school fund under RCW 28A.515.300"

Representatives Carrell and Carrell spoke in favor of the adoption of the amendment.

Representative Appelwick spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 24-YEAS; 73-NAYS. The amendment was not adopted.

With the consent of the House, amendments 722 and 765 were withdrawn.

Representative Bush moved the adoption of the following amendment by Representative Bush: (715)

On page 18, line 14 of the striking amendment, after "the" strike all material down through "act" on line 15 and insert, "permanent common school fund pursuant to RCW 28A.515.300"

On page 22, line 1 of the striking amendment, after "to the" strike all material down through "section" on line 2 and insert, "permanent common school fund pursuant to RCW 28A.515.300"

On page 22, line 8 of the striking amendment, after "the" strike "youth athletic facility grant account" and insert "permanent common school fund"

On page 22, beginning on line 12 of the striking amendment, strike subsection (4)

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

Representatives Van Luven, Zellinsky, Appelwick and Van Luven spoke against adoption of the amendment. The amendment was not adopted.

Representative Carrell moved the adoption of the following amendment by Representative Carrell: (739)

On page 18, after line 17 of the striking amendment, insert:

"(iv) The team affiliate shall pay annually to the state lottery account an amount equal to the difference between the revenue actually generated during the previous year by additional lottery games conducted under section 205 of this act and the distributions under 67.70.240(5)."

Renumber subsections consecutively and correct any internal references accordingly.

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

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

With the consent of the House, amendment 696 was withdrawn.

The Speaker called upon Representative Pennington to preside.

Representative Blalock moved the adoption of the following amendment by Representative Blalock: (665)

On page 18, line 17 of the striking amendment, after "least" strike "ten" and insert "twenty-five"

Representatives Blalock, Dunshee and Benson spoke in favor of the adoption of the amendment.

Representatives Van Luven and D. Schmidt spoke against the adoption of the amendment.

Division was demanded. The Speaker (Representative Pennington presiding) divided the House. The results of the division was 33-YEAS; 63-NAYS. The amendment was not adopted.

The Speaker assumed the chair.

Representative Carroll moved the adoption of the following amendment by Representative Carroll: (701)

On page 18, after line 25 of the striking amendment, insert the following:

"(vi) The team affiliate secures an agreement from the national football league to televise all exhibition, regular, and playoff games in the stadium and exhibition center to all areas of the state;"

Renumber the remaining subparagraphs consecutively and correct internal references accordingly.

Representatives Carroll and Carlson spoke in favor of the adoption of the amendment.

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

With the consent of the House, amendments 735 and 717 were withdrawn.

Representative Smith moved the adoption of the following amendment by Representative Smith: (747)

On page 18, line 35 of the striking amendment, after "be" strike everything through "center" on line 36 and insert "deposited in the permanent common school fund"

Representatives Smith and Van Luven spoke in favor of the adoption of the amendment. The amendment was adopted.

With the consent of the House, amendments 746, 688, 689 and 726 were withdrawn.

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (767)

On page 22, line 16 of the striking amendment, after "treasury." strike "Moneys in the account may be spent only after appropriation."

On page 22, line 19 of the striking amendment, after "facilities." insert "Only the director of the interagency committee for outdoor recreation or the director’s designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures."

Representative Van Luven spoke in favor of the adoption of the amendment.

Representative H. Sommers spoke against the adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 55-YEAS; 40-NAYS. The amendment was adopted.

Representative Appelwick moved the adoption of the following amendment by Representative Appelwick: (750)

On page 22, line 20 of the striking amendment, after "youth" insert "or community"

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

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (760)

On page 22, line 32 of the striking amendment, after "year." insert " The director of the interagency committee for outdoor recreation may expend up to one and one-half percent of the moneys deposited in the account created in this subsection for administrative purposes."

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

With the consent of the House, amendment 765 was withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (731)

On page 22 of the striking amendment, beginning on line 36, strike all of subsection (1).

Renumber remaining sections consecutively and correct internal references accordingly.

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

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

Representative B. Thomas moved the adoption of the following amendment by Representative B. Thomas: (729)

Beginning on page 22, line 23 of the striking amendment, strike all of sections 218 and 219.

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

Representatives B. Thomas and Dunshee spoke in favor of the adoption of the amendment.

Representative Sehlin spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 36-YEAS; 61-NAYS. The amendment was not adopted.

With the consent of the House, amendments 702 and 721 were withdrawn.

Representative Carlson moved the adoption of the following amendment by Representative Carlson: (762)

On page 26, after line 34 of the striking amendment, insert:

"NEW SECTION. Sec. 223. A new section is added to chapter 67.24 RCW to read as follows:

(1) The definitions in this subsection apply to this section.

(a) "Professional athlete" means a person who participates in sporting events, and receives more than one hundred thousand dollars in total annual compensation for such participation. "Professional athlete" does not include a student athlete.

(b) "Sporting event" means any game, contest, exhibition, or program of baseball, football, hockey, polo, tennis, horse race, basketball, golf, or similar activity.

(c) "Student athlete" means a person who engages in, is eligible to engage in, or may be eligible to engage in any intercollegiate sporting event. The term also includes an individual who has applied for enrollment to an institution of higher education. A person ceases to be a "student athlete" as soon as his or her collegiate eligibility in the sport has expired.

(2) An annual fee is imposed on each professional athlete for the privilege of engaging in any sporting event in this state. The fee is five hundred dollars, and shall be paid to the director of licensing not later than the day of the first sporting event in which the athlete participates during the year. Fees collected under this section shall be deposited in the permanent common school fund.

(3) It is a gross misdemeanor punishable under chapter 9A.20 RCW for a professional athlete to participate in a sporting event in this state without having paid the fee required under this section for the year in which the sporting event occurs."

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

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

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

Representative Pennington moved the adoption of the following amendment by Representative Pennington: (695)

On page 28 of the striking amendment beginning on line 30, after "events"" strike everything through "admission." on line 31 and insert "includes charges for season tickets, subscriptions, suite licenses, permanent seat licenses, and other similar accommodations."

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

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

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (690)

On page 35, beginning on line 7, strike sections 501 and 502

Renumber the remaining sections consecutively and correct internal references accordingly.

Representatives Sheldon and B. Thomas spoke in favor of the adoption of the amendment.

Representatives Van Luven and Butler spoke against adoption of the amendment. The amendment was not adopted.

With the consent of the House, amendment 703 was withdrawn.

Representative Reams moved the adoption of the following amendment by Representative Reams: (706)

On page 39, line 17 of the striking amendment, after "referendum" insert "The voters’ pamphlet description of the referendum measure shall include information to inform the public that ownership of the KingDome will be transferred to the public stadium authority and that the KingDome will be demolished in order to accommodate the new football stadium."

Representatives Reams and Van Luven spoke in favor of the adoption of the amendment. The amendment was adopted.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (712)

On page 40, line 17 of the striking amendment, after "unless" strike "the" and insert ": (1) The"

On page 40, line 21 of the striking amendment, after "1997" insert "; and (2) the team affiliate as defined in section 101 of this act files an agreement with the public disclosure commission to limit its expenditures to five hundred thousand dollars in the election campaign on the referendum required by section 606 of this act. The agreement shall provide that if filings with the public disclosure commission indicate that expenditures in opposition to the referendum have exceeded five hundred thousand dollars, then the team affiliate’s expenditures may exceed five hundred thousand dollars by a like amount"

Representatives Sheldon and Benson spoke in favor of the adoption of the amendment.

Representatives Zellinsky and D. Schmidt spoke against the adoption of the amendment. The amendment was not adopted.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (684)

On page 41, line 6 of the striking amendment, after "at the" strike "special election on June 20, 1997" and insert "next general election"

Beginning on page 41, line 22 of the striking amendment, strike sections 607 and 608 and insert the following:

"NEW SECTION. Sec. 607. The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation."

Renumber the remaining sections consecutively and correct internal references accordingly.

Representatives Sheldon, McDonald, B. Thomas, Pennington and B. Thomas spoke in favor of the adoption of the amendment.

Representatives Van Luven, Smith and D. Schmidt spoke against adoption of the amendment. The amendment was not adopted.

With the consent of the House, amendments 713, 672, 677, 694, 725, 632, and 736 were withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (743)

On page 41, line 29 of the amendment, after "(2)" insert "Notwithstanding the provisions of RCW 29.79.040 and 29.79.055, the referendum ballot title shall be "Shall the state issue up to three hundred million dollars in general obligations bonds to partially finance construction of a four hundred twenty-five million dollar professional football stadium and exhibition center replacing the KingDome, and raise forty million dollars for construction of youth athletic facilities, by implementing a 0.016 percent state sales tax credit in King county, new lottery games, a ten percent tax on admission tickets and parking at the stadium and exhibition center, and a redistribution of the two percent King county hotel-motel tax from the years 2013 to 2020?"

(3)"

Renumber the remaining subsections consecutively and correct internal references accordingly.

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

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

With the consent of the House, amendment 723 was withdrawn.

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (753)

On page 42, line 5 of the striking amendment, after "measure" strike "may" and insert "shall"

On page 42, line 6 of the striking amendment, after "KingDome" strike "will" and insert "may"

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

With the consent of the House, amendment 763 was withdrawn.

Representative Sheldon moved the adoption of the following amendment by Representative Sheldon: (678)

On page 42, after line 25 of the striking amendment, insert the following:

"NEW SECTION. Sec. 608.

(1) Sections 101 through 604 of this act take effect December 4, 1997, only if House Joint Resolution No. _______ (H-3197.1/97) (amending Article I, section 12, Article VIII, sections 5 and 7, and Article XI, section 6 of the state Constitution to exempt legislation that authorizes a public stadium authority to establish a stadium and exhibition center) is validly submitted to and is approved and ratified by the voters at the next general election. If House Joint Resolution No. _____ (H-3197.1/97) is not so approved and ratified, sections 101 through 606 of this act are void in their entirety.

(2) This section takes effect only if the referendum required by section 607 of this act is adopted and ratified by the voters at the June 20, 1997 special election."

Renumber remaining sections consecutively and correct internal references.

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

Representative D. Schmidt spoke against adoption of the amendment.

Division was demanded. The Speaker divided the House. The results of the division was 20-YEAS; 75-NAYS. The amendment was not adopted.

With the consent of the House, amendments 642, 685 and 631 were withdrawn.

Representative Carrell moved the adoption of the following amendment by Representative Carrell: (771)

On page 18, line 24 of the striking amendment, after "purchasers of" strike "nonexecutive suites and club seat tickets" and insert "tickets that are not located in executive suites or club seat areas"

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

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

Representative Van Luven moved the adoption of the following amendment by Representative Van Luven: (772)

Representatives Van Luven and Benson spoke in favor of the adoption of the amendment. The amendment was adopted.

The Speaker stated the question before the House was the adoption of amendment 741 by Representative Van Luven as amended by the House. 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.

QUESTION OF CONSIDERATION

Representative B. Thomas: Mr. Speaker, I raise the question of consideration.

The Speaker explained that a question of consideration was non-debatable. A yes vote indicated a member wanted to proceed with the business at hand, i.e., vote on the bill, and with a no vote, the main question of final passage of Engrossed Substitute House Bill No. 2192 would be as if it had not been brought up.

Division was demanded. The Speaker divided the House. The results of the division was 68-YEAS; 29-NAYS.

The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2192.

Representatives Van Luven, Zellinsky, Ogden, Talcott, Smith, Appelwick, Bush and D. Schmidt spoke in favor of the passage of the bill.

Representatives Sheldon, Pennington, Benson, Veloria, B. Thomas, McDonald, Dunshee, D. Sommers and Carlson spoke against the passage of the bill.

Representative Dyer demanded the previous question and the demand was sustained.

The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2192.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2192 and the bill passed the House by the following vote: Yeas - 56, Nays - 41, Absent - 0, Excused - 1.

Voting yea: Representatives Anderson, Appelwick, Backlund, Ballasiotes, Blalock, Bush, Butler, Cairnes, Carrell, Chopp, Clements, Cody, Cole, Constantine, Cooke, Cooper, Costa, Delvin, Doumit, Dyer, Gardner, Grant, Hankins, Hatfield, Hickel, Huff, Kastama, Keiser, Kenney, Kessler, Lambert, Lantz, Mitchell, Morris, Murray, O'Brien, Ogden, Parlette, Poulsen, Radcliff, Reams, Schmidt, D., Scott, Sehlin, Skinner, Smith, Talcott, Thomas, L., Thompson, Tokuda, Van Luven, Veloria, Wensman, Wolfe, Zellinsky and Mr. Speaker - 56.

Voting nay: Representatives Alexander, Benson, Boldt, Buck, Carlson, Chandler, Conway, Crouse, DeBolt, Dickerson, Dunn, Dunshee, Fisher, Gombosky, Honeyford, Johnson, Koster, Linville, Lisk, Mason, Mastin, McDonald, McMorris, Mielke, Mulliken, Pennington, Regala, Robertson, Romero, Schmidt, K., Schoesler, Sheahan, Sheldon, Sherstad, Sommers, D., Sommers, H., Sterk, Sullivan, Sump, Thomas, B. and Wood - 41.

Excused: Representative Quall - 1.

Engrossed Substitute House Bill No. 2192, having received the constitutional majority, was declared passed.

STANDING COMMITTEES ASSIGNMENT CHANGES

The following changes were made to committee assignments:

Representative Mulliken was appointed to the Committee on Law & Justice as relief for Representative Sknner, and transferred from the Committee on Energy & Utilities.

Representative Delvin was appointed to the Committee on Energy & Utilities, and transferred from the Committee on Law & Justice.

Representative Radcliff was appointed to the Committee on Criminal Justice & Corrections, and transferred from the Committee on Law & Justice.

Representative Robertson was appoint to the Committee on Law & Justice, and transferred from the Committee on Criminal Justice & Corrections.

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

MOTION

On motion by Representative Lisk, the House adjourned until 9:00 a.m., Saturday, April 26, 1997.

CLYDE BALLARD, Speaker

TIMOTHY A. MARTIN, Chief Clerk

1022 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

1054

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .35

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

1057 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

1201 (2nd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

1277 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

1423 (2nd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

1433 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

1478 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

1485 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

1565 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

1581

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

1592 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

1647

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

1657 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

1687 (2nd Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

1708

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

1729 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1850 (2nd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

1935 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

2050 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2089 (Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

2192

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2192 (Sub)

Second Reading Amendment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5, 59

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

2193 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59

2288

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

2289

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

3900 (3rd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

4413

Intro & 1st Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Second Reading. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Adopted. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

5034

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

5082 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .22

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

5127 (2nd Sub)

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5149 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

5229

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

5270 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .24

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

5336 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .58

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5354

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

5462 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

5484

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .25

5491 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .30

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

5511 (Sub)

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44

5650

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

5781 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

5867 (Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .32

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

5886 (2nd Sub)

Third Reading Final Passage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

Other Action. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .34

Conference Committee Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32

8416

Messages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

HOUSE OF REPRESENTATIVES

Question of Consideration; Representative B. Thomas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .101

Standing Committee Assignments, Changes to. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .102

HOUSE OF REPRESENTATIVES (REPRESENTATIVE PENNINGTON PRESIDING)

Statement for the Journal; Representative Veloria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

SPEAKER OF THE HOUSE

Speaker's Privilege, Colonel Langford. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1