NOTICE: Formatting and page numbering in this document may be different

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THIRTY-SIXTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Monday, February 17, 1997

      The Senate was called to order at 10:00 a.m. by President Owen. The Secretary called the roll and announced to the President that all Senators were present except Senators McCaslin and Patterson. On motion of Senator Franklin, Senator Patterson was excused. On motion of Senator Hale, Senator McCaslin was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Jeanette Byrd and Daniel Grigg, presented the Colors. Tony Cook, Senate Counsel, offered the prayer.


MOTION


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


REPORTS OF STANDING COMMITTEES

February 13, 1997

SB 5010             Prime Sponsor, Senator Prentice: Expanding the duties of the director of the Washington state pollution liability insurance agency. Reported by Committee on Ways and Means


      MAJORITY Recommendation: That Substitute Senate Bill No. 5010 as recommended by Committee on Financial Institutions, Insurance and Housing be substituted therefor, and the substitute bill do pass. Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Kohl, Long, McDonald, Rossi, Schow, Sheldon, Snyder, Swecker, Thibaudeau and Winsley.


      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5070             Prime Sponsor, Senator Haugen: Allowing for reasonable use exceptions in the development of certain lands. Reported by Committee on Government Operations


      MAJORITY Recommendation: That Substitute Senate Bill No. 5070 be substituted therefor, and the substitute bill do pass. Signed by Senators McCaslin, Chair; Anderson, Haugen, Horn and Patterson.


      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5084             Prime Sponsor, Senator Roach: Allowing a court to award attorneys' fees and other court costs to an individual or small business that successfully appeals a state agency directive in court. Reported by Committee on Government Operations


      MAJORITY Recommendation: That Substitute Senate Bill No. 5084 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators McCaslin, Chair; Anderson, Haugen, Horn, Patterson and Swanson.


      Referred to Committee on Ways and Means.


February 13, 1997

SB 5197             Prime Sponsor, Senator Kohl: Creating undergraduate fellowships for needy and meritorious students. Reported by Committee on Higher Education


      MAJORITY Recommendation: That Substitute Senate Bill No. 5197 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators Wood, Chair; Winsley, Vice Chair; Bauer, Kohl, Patterson, Prince and Sheldon.


      Referred to Committee on Ways and Means.


February 13, 1997

SB 5240             Prime Sponsor, Senator West: Requiring the governor's signature on proposed agency rules filed with the code reviser. Reported by Committee on Government Operations


      MAJORITY Recommendation: That Substitute Senate Bill No. 5240 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators McCaslin, Chair; Anderson, Haugen, Horn, Patterson and Swanson.


      Referred to Committee on Ways and Means.


February 14, 1997

SB 5253             Prime Sponsor, Senator Strannigan: Allowing nonresidents under the age of fifteen to obtain a free fishing license. Reported by Committee on Natural Resources and Parks


      MAJORITY Recommendation: Do pass. Signed by Senators Oke, Chair; Rossi, Vice Chair; Hargrove, Jacobsen, Morton, Prentice, Roach, Snyder, Spanel, Stevens and Swecker.



      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5290             Prime Sponsor, Senator West: Providing that the liquor control board construction and maintenance account retain its earnings. Reported by Committee on Ways and Means


      MAJORITY Recommendation: That Substitute Senate Bill No. 5290 be substituted therefor, and the substitute bill do pass. Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Brown, Kohl, Long, Loveland, McDonald, Rossi, Schow, Sheldon, Spanel, Swecker, Thibaudeau and Winsley.


      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5311             Prime Sponsor, Senator Finkbeiner: Requiring more private sector representation on the information services board. Reported by Committee on Energy and Utilities


      MAJORITY Recommendation: That Substitute Senate Bill No. 5311 be substituted therefor, and the substitute bill do pass. Signed by Senators Finkbeiner, Chair; Hochstatter, Vice Chair; Brown, Jacobsen, Rossi, Strannigan and Swanson.


      Passed to Committee on Rules for second reading.


February 14, 1997

SB 5360             Prime Sponsor, Senator Hargrove: Providing commercial salmon fishers with a license renewal process when they opt to not renew for a season. Reported by Committee on Natural Resources and Parks


      MAJORITY Recommendation: That Substitute Senate Bill No. 5360 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators Oke, Chair; Rossi, Vice Chair; Hargrove, Jacobsen, Morton, Prentice, Roach, Snyder, Spanel, Stevens and Swecker.


      Referred to Committee on Ways and Means.


February 13, 1997

SB 5371             Prime Sponsor, Senator Rossi: Exempting regulated utilities from seeking commission preapproval of some short-term notes having a maturity of twelve or fewer months. Reported by Committee on Energy and Utilities


      MAJORITY Recommendation: Do pass. Signed by Senators Finkbeiner, Chair; Hochstatter, Vice Chair; Brown, Jacobsen, Rossi, Strannigan and Swanson.


      Passed to Committee on Rules for second reading.


February 14, 1997

SB 5386             Prime Sponsor, Senator Oke: Creating the jobs for the environment program. Reported by Committee on Natural Resources and Parks


      MAJORITY Recommendation: That Substitute Senate Bill No. 5386 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators Oke, Chair; Rossi, Vice Chair; Hargrove, Jacobsen, Morton, Prentice, Roach, Snyder, Spanel, Stevens and Swecker.


      Referred to Committee on Ways and Means.


February 13, 1997

SB 5394             Prime Sponsor, Senator Hochstatter: Regarding school audits. Reported by Committee on Ways and Means


      MAJORITY Recommendation: That Substitute Senate Bill No. 5394 be substituted therefor, and the substitute bill do pass. Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Brown, Kohl, Long, Loveland, McDonald, Rossi, Schow, Sheldon, Snyder, Spanel, Swecker, Thibaudeau, Winsley and Zarelli.


      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5395             Prime Sponsor, Senator West: Changing the formula for determining average salaries for certificated instructional staff. Reported by Committee on Ways and Means




      MAJORITY Recommendation: Do pass. Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Kohl, Long, McDonald, Rossi, Schow, Swecker, Thibaudeau, Winsley and Zarelli.


      Passed to Committee on Rules for second reading.



February 13, 1997

SB 5465             Prime Sponsor, Senator Jacobsen: Providing treatment to restore physical function. Reported by Committee on Financial Institutions, Insurance and Housing


      MAJORITY Recommendation: That Substitute Senate Bill No. 5465 be substituted therefor, and the substitute bill do pass. Signed by Senators Winsley, Chair; Benton, Vice Chair; Kline and Prentice.


      Passed to Committee on Rules for second reading.


February 13, 1997

SB 5472             Prime Sponsor, Senator West: Creating the caseload forecast council. Reported by Committee on Ways and Means


      MAJORITY Recommendation: That Substitute Senate Bill No. 5472 be substituted therefor, and the substitute bill do pass. Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Brown, Kohl, Long, Loveland, McDonald, Rossi, Schow, Sheldon, Snyder, Spanel, Swecker, Thibaudeau and Winsley.


      Passed to Committee on Rules for second reading.


February 14, 1997

SB 5677             Prime Sponsor, Senator Deccio: Implementing the federal personal responsibility and work opportunity reconciliation act of 1996. Reported by Committee on Health and Long-Term Care


      MAJORITY Recommendation: That Substitute Senate Bill No. 5677 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways and Means. Signed by Senators Deccio, Chair; Wood, Vice Chair; Benton and Strannigan.


      Referred to Committee on Ways and Means.


February 14, 1997

SB 5734             Prime Sponsor, Senator Finkbeiner: Changing school levy provisions. Reported by Committee on Education


      MAJORITY Recommendation: Refer to Committee on Ways and Means without recommendation. Signed by Senators Hochstatter, Chair; Finkbeiner, Vice Chair; Goings, Johnson, McAuliffe, Rasmussen and Zarelli.


      Referred to Committee on Ways and Means.


MESSAGES FROM THE HOUSE

February 14, 1997

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5398, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


February 14, 1997

MR. PRESIDENT:

      The House has adopted SENATE CONCURRENT RESOLUTION NO. 8406, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5398,

      SENATE CONCURRENT RESOLUTION NO. 8406.


INTRODUCTION OF MISS WASHINGTON


      The President welcomed and introduced 1996 Miss Washington, Janet Reasons, who was seated on the rostrum.

      With permission of the Senate, business was suspended to permit Miss Washington to address the Senate.


INTRODUCTION OF MISS WASHINGTON CONTESTANTS


      The President welcomed and introduced the 1997 Miss Washington Scholarship pageant contestants and their coordinator, Velma Huffman, who were seated in the gallery.


INTRODUCTION AND FIRST READING

 

SB 5836             by Senators Johnson, Hochstatter, Zarelli, Winsley, Oke and Kohl

 

AN ACT Relating to record checks of educational employees; adding a new section to chapter 28A.195 RCW; making an appropriation; and providing an expiration date.

Referred to Committee on Education.

 

SB 5837             by Senators Johnson, Hochstatter, Schow, Winsley, Roach and Oke

 

AN ACT Relating to the learning materials loan program; adding a new section to chapter 28A.195 RCW; creating a new section; making an appropriation; and providing an effective date.

Referred to Committee on Education.

 

SB 5838             by Senators Swecker, Morton and Winsley

 

AN ACT Relating to an on-site sewage system permit; amending RCW 70.118.050; adding a new section to chapter 70.05 RCW; adding new sections to chapter 70.118 RCW; adding a new section to chapter 57.04 RCW; and creating a new section.

Referred to Committee on Agriculture and Environment.

 

SB 5839             by Senators Hochstatter, Morton and McCaslin

 

AN ACT Relating to a person potentially liable for a hazardous substance release; and adding a new section to chapter 70.105D RCW.

Referred to Committee on Agriculture and Environment.

 

SB 5840             by Senators Swanson, Swecker, Fairley, Winsley and Rasmussen

 

AN ACT Relating to service credit for military service by members of the public employees' retirement system, plan II; and amending RCW 41.40.710.

Referred to Committee on Ways and Means.

 

SB 5841             by Senators Hochstatter, Finkbeiner and Winsley (by request of Department of Health)

 

AN ACT Relating to regulation of public water systems; amending RCW 64.06.020, 70.119.030, 70.119A.115, and 70.119A.170; and creating a new section.

Referred to Committee on Agriculture and Environment.

 

SB 5842             by Senators Swecker, Winsley and Fraser

 

AN ACT Relating to litter control and recycling; and amending RCW 70.93.010, 70.93.020, 70.93.180, 70.95.280, and 82.19.010.

Referred to Committee on Agriculture and Environment.

 

SB 5843             by Senators Deccio, Wood, Benton, Wojahn and Kohl

 

AN ACT Relating to updating terminology in chapter 18.108 RCW; and amending RCW 18.108.005, 18.108.010, and 18.108.030.

Referred to Committee on Health and Long-Term Care.

 

SB 5844             by Senators Fraser, Oke, Prince, Kohl, Hochstatter, Schow, Winsley and Rasmussen

 

AN ACT Relating to fuel taxes attributable to marine and nonhighway uses; and amending RCW 43.99.070, 46.09.170, and 46.10.170.

Referred to Committee on Natural Resources and Parks.

 

SB 5845             by Senators Swecker, Prentice, Sellar, Hargrove, Benton, Schow, Heavey, Wood, Bauer, Winsley, Wojahn, Haugen, Rasmussen, Jacobsen, McCaslin, Anderson, Newhouse, Johnson, Horn, West, Morton, Hochstatter, Sheldon, Goings, Finkbeiner, Rossi, Hale, Roach and Oke

 

AN ACT Relating to offsetting an increase in the beer tax for the health care services account with a corresponding decrease in other beer taxes; amending RCW 66.24.290, 69.50.520, and 66.08.180; providing an effective date; and declaring an emergency.

Referred to Committee on Ways and Means.

 

SB 5846             by Senators Deccio, Wood, Wojahn and Winsley (by request of Health Care Authority)

 

AN ACT Relating to defining basic health plan eligibility for persons in institutions; and reenacting and amending RCW 70.47.020 and 70.47.060.

Referred to Committee on Health and Long-Term Care.

 

SB 5847             by Senators Wood, Deccio, Wojahn and Winsley (by request of Health Care Authority)

 

AN ACT Relating to health care authority standards for basic health plan agents and brokers; and amending RCW 70.47.015.

Referred to Committee on Health and Long-Term Care.

 

SB 5848             by Senators Benton and Kohl

 

AN ACT Relating to insurance coverage of pharmacy services; adding new sections to chapter 48.43 RCW; creating a new section; and prescribing penalties.

Referred to Committee on Health and Long-Term Care.

 

SB 5849             by Senator Benton

 

AN ACT Relating to payment of health care providers in the event of a health insurer's insolvency; adding a new section to chapter 48.44 RCW; adding a new section to chapter 48.46 RCW; and creating a new section.

Referred to Committee on Financial Institutions, Insurance and Housing.

 

SB 5850             by Senators Anderson, Newhouse, Haugen and Horn

 

AN ACT Relating to employment in the construction industry; amending RCW 51.24.035 and 51.16.140; adding new sections to chapter 49.17 RCW; creating a new section; providing an effective date; and declaring an emergency.

Referred to Committee on Commerce and Labor.

 

SB 5851             by Senators Morton, Rasmussen, Oke and Winsley

 

AN ACT Relating to the full and complete development of existing permits or certificates of ground water right; amending RCW 90.44.100; and creating a new section.

Referred to Committee on Agriculture and Environment.

 

SB 5852             by Senators Spanel, Long, Fairley, Roach, Haugen, McCaslin and Kohl

 

AN ACT Relating to requiring financial information with petitions to modify support orders; and amending RCW 26.09.175.

Referred to Committee on Law and Justice.

 

SB 5853             by Senators Goings, McCaslin, Haugen, Winsley and Rasmussen

 

AN ACT Relating to fire protection district finance officers; and amending RCW 52.16.010.

Referred to Committee on Government Operations.

 

SB 5854             by Senators Goings, McCaslin, Haugen, Winsley and Rasmussen

 

AN ACT Relating to charges by fire protection districts; amending RCW 52.18.010, 52.18.020, 52.18.030, 52.18.040, 52.18.050, 52.18.060, 52.18.065, 52.18.070, and 52.18.080; adding a new section to chapter 52.18 RCW; and creating a new section.

Referred to Committee on Government Operations.

 

SB 5855             by Senators Strannigan, Hale, Schow and Winsley

 

AN ACT Relating to high-occupancy vehicle lanes; and amending RCW 46.61.165.

Referred to Committee on Transportation.

 

SB 5856             by Senators Kohl and Winsley

 

AN ACT Relating to the humane trapping of animals; amending RCW 77.32.197; adding a new section to chapter 77.16 RCW; and creating a new section.

Referred to Committee on Natural Resources and Parks.

 

SB 5857             by Senator Roach

 

AN ACT Relating to property taxes; amending RCW 84.41.050, 84.55.010, 84.55.020, 35.61.210, 70.44.060, and 84.08.115; adding new sections to chapter 84.40 RCW; adding new sections to chapter 84.41 RCW; adding a new section to chapter 84.44 RCW; adding a new section to chapter 84.48 RCW; adding a new section to chapter 84.52 RCW; adding a new section to chapter 84.55 RCW; creating a new section; repealing RCW 84.41.030, 84.41.041, 84.41.070, and 84.41.130; and providing for submission of this act to a vote of the people.

Referred to Committee on Ways and Means.

 

SB 5858             by Senators Roach, Heavey, Wood, Schow and Finkbeiner

 

AN ACT Relating to athletic trainers; amending RCW 7.70.020; reenacting and amending RCW 18.130.040; and adding a new chapter to Title 18 RCW.

Referred to Committee on Health and Long-Term Care.

 

SB 5859             by Senators Roach and Johnson

 

AN ACT Relating to coercion; and amending RCW 9A.36.070.

Referred to Committee on Law and Justice.

 

SB 5860             by Senators Roach and Johnson

 

AN ACT Relating to vacation of misdemeanor criminal history records; and adding a new section to chapter 10.01 RCW.

Referred to Committee on Law and Justice.

 

SB 5861             by Senators Roach, Schow and Oke

 

AN ACT Relating to exceeding statutory maximum penalties for crimes involving firearms and deadly weapons; amending RCW 9.92.010 and 9A.20.021; reenacting and amending RCW 9.94A.120; and prescribing penalties.

Referred to Committee on Law and Justice.

 

SB 5862             by Senators Roach, Hargrove, Johnson, Swecker, Loveland, Benton, Morton, Hochstatter, Rossi, Goings, Hale, Long, Rasmussen and Oke

 

AN ACT Relating to sport shooting ranges; adding a new section to chapter 9.41 RCW; and creating a new section.

Referred to Committee on Law and Justice.

 

SB 5863             by Senators Roach and Oke

 

AN ACT Relating to comparisons of judges' sentencing practices to guidelines; and amending RCW 9.94A.105.

Referred to Committee on Law and Justice.

 

SB 5864             by Senators Roach and Schow

 

AN ACT Relating to drive-by shooting; amending RCW 9A.36.045, 9A.36.050, 9.41.010, 9.41.040, 9.94A.103, 9.94A.105, 9.94A.310, 10.99.020, 10.99.040, 10.99.050, and 13.40.0357; reenacting and amending RCW 9.94A.030, 9.94A.320, and 9A.46.060; and prescribing penalties.

Referred to Committee on Law and Justice.

 

SB 5865             by Senators Benton, Zarelli, Schow, Roach and Hochstatter

 

AN ACT Relating to English as the official language of Washington; adding a new section to chapter 1.20 RCW; creating a new section; and providing for submission of this act to a vote of the people.

Referred to Committee on Education.

 

SB 5866             by Senators Sellar and Oke

 

AN ACT Relating to the liability of landowners; and amending RCW 4.24.210.

Referred to Committee on Natural Resources and Parks.

 

SB 5867             by Senators Sellar, Hale and Kohl

 

AN ACT Relating to hotel and motel taxes in certain cities and towns; and adding a new section to chapter 67.28 RCW.

Referred to Committee on Government Operations.

 

SB 5868             by Senator Sellar

 

AN ACT Relating to excise taxation of producers of aluminum master alloys; amending RCW 82.04.110; providing an effective date; and declaring an emergency.

Referred to Committee on Ways and Means.

 

SJM 8010           by Senators Strannigan and Oke

 

Encouraging the federal government to enact laws permitting airbag deactivation switches to be installed in new and used vehicles.

 

Referred to Committee on Transportation.


MOTION


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


SENATE RESOLUTION 1997-8621


By Senators Rossi and Johnson


      WHEREAS, The students of Tahoma High School in Maple Valley, Washington, enrolled in the program known as “We the People, The Citizen and the Constitution” have exhibited that they have learned very well the lessons of our forefathers who wrote the Constitution of the United States and will be representing all of Washington in national championship competition; and

      WHEREAS, This knowledge will enhance their lives and direct their paths as they walk through life, proud in the knowledge that Americans have long stood for justice and liberty of all Americans; and

      WHEREAS, Being armed with this knowledge is to the benefit of all citizens of this great country and state and will encourage them to participate in the democracy men and women have fought so gallantly to preserve; and

      WHEREAS, Knowing that these energetic, knowledgeable young people will one day lead this state and country, and that there may very well be in their midst a Governor, Senator or member of Congress or perhaps even a future President; and

      WHEREAS, Teachers of “We The People” program such as Stephanie Galloway and Mark Oglesby can take great pride knowing that the students enrolled in this program have the knowledge to outperform university students in every topic; and

      WHEREAS, Studies have shown that eighty percent of senior students participating in this program have registered to vote as compared to an average of thirty-seven percent thereby proving that this program has increased the interest in politics and in participating in government; and

      NOW, THEREFORE, BE IT RESOLVED, That we the members of the Washington State Senate wish to acknowledge the participation in this program by Emily Allen, Meghan Ashbaugh, Will Bekker, Darcy Bowers, Callie Clynch, Marlene Crookston, Autumn Cutler, Nicole Ergeson, Mindy Erickson, Jon Fursman, Elisa Garrison, Stacy Hammett, Bjorn Jonasson, Kim Krusel, Jared McGlinchey, Darren Muller, Shannon Murphy, Kim Prince, Jason Pynn, Eric Ruthford, Ramesh Singa, Jonna Sloan, Katie Stephens, and Sara Zaleski, students each and every one making their families and fellow citizens proud; and

      BE IT FURTHER RESOLVED, That the Secretary of the Senate forward a copy of this resolution to the Principal of Tahoma High School to further show the respect of this body for a job well done by each student and teacher.


      Senators Rossi and Johnson spoke to Senate Resolution 1997-8621.


INTRODUCTION OF SPECIAL GUESTS


      The President congratulated and introduced the students enrolled in the "We the People, The Citizen and the Constitution Program" from Tahoma High School in Maple Valley, who were seated in the gallery.


MOTION


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


SENATE RESOLUTION 1997-8615


By Senators Franklin, Swecker, Long, Goings, Kohl, Spanel, Rasmussen and Sheldon


      WHEREAS, The month of February, 1997, marks the sixtieth anniversary of an official Black History celebration; and

      WHEREAS, This month also marks the twentieth anniversary of the official observance of Black History Month; and

      WHEREAS, There is still a widespread lack of knowledge among the population, in general, that African Americans have played major roles and contributed in every aspect to the development and building of our country; and

      WHEREAS, The actual history of Africans in Africa and around the world is a fascinating and enlightening journey of both African peoples and individuals; and

      WHEREAS, The history of Africans in the Americas is as old as the history of Europeans in the New World; and

      WHEREAS, The full story of Africans at home and abroad goes far beyond the traditionally emphasized experience of domination by and subjugation to others in the New World; and

      WHEREAS, Black History Month affords students of all backgrounds the chance to see the accomplishments and contributions of Africans, both in Africa and around the world; and

      WHEREAS, For many young people, Black History Month has led to exposure to literature, art, philosophy, and culture that they otherwise might never experience; and

      WHEREAS, The study of the history of African Americans and their contributions can broaden our views and strengthen racial relations within our country’s diverse population;

      NOW, THEREFORE, BE IT RESOLVED, That the members of the Washington State Senate do hereby recognize and appreciate the many benefits of Black History Month to our citizenry and to our culture in general, and that we urge all citizens of the state of Washington to join with us in taking the opportunity this month to explore this rich history and expand our world view.


MOTION


      At 10:26 a.m., on motion of Senator Johnson, the Senate was declared to be at ease.


      The Senate was called to order at 11:16 a.m. by President Owen.


MOTION


      On motion of Senator Johnson, the Senate reverted to the sixth order of business.


STATEMENT FOR THE JOURNAL


      I was not able to attend session on Monday, February 17, 1997, because I had to attend an urgent family matter. I missed the vote on the B & O tax and would like it noted that I would have voted YEA have I been there.

SENATOR JULIA PATTERSON, Thirty-third District


SECOND READING


      SENATE BILL NO. 7902, by Senators Hale, Bauer, McDonald, Haugen, Sellar, Prentice, McCaslin, Rasmussen, West, Newhouse, Heavey, Swecker, Hargrove, Fraser, Johnson, Morton, Patterson, Rossi, Kline, Anderson, Jacobsen, Strannigan, Prince, Finkbeiner, Oke, Winsley, Long, Stevens, Horn, Benton, Schow, Wood, Roach, Deccio, Zarelli and Goings

 

Lowering business and occupation tax rates (Introduced with House sponsors).


      The bill was read the second time.


MOTION


      On motion of Senator West, the following amendment was adopted:    On page 4, after line 10, insert the following:"Sec. 4. RCW 82.04.4452 and 1994 sp.s. c 5 s 2 are each amended to read as follows:       (1) In computing the tax imposed under this chapter, a credit is allowed for each person whose research and development spending during the year in which the credit is claimed exceeds 0.92 percent of the person's taxable amount during the same calendar year.     (2) The credit is equal to the greater of the amount of qualified research and development expenditures of a person or eighty percent of amounts received by a person other than a public educational or research institution in compensation for the conduct of qualified research and development, multiplied by the rate ((of 0.515 percent)) provided in RCW 82.04.260(6) in the case of a nonprofit corporation or nonprofit association engaging within this state in research and development, and ((2.5 percent)) the rate provided in RCW 82.04.290(2) for every other person.      (3) Any person entitled to the credit provided in subsection (2) of this section as a result of qualified research and development conducted under contract may assign all or any portion of the credit to the person contracting for the performance of the qualified research and development.     (4) The credit, including any credit assigned to a person under subsection (3) of this section, shall be taken against taxes due for the same calendar year in which the qualified research and development expenditures are incurred. The credit, including any credit assigned to a person under subsection (3) of this section, for each calendar year shall not exceed the lesser of two million dollars or the amount of tax otherwise due under this chapter for the calendar year.                (5) Any person taking the credit, including any credit assigned to a person under subsection (3) of this section, whose research and development spending during the calendar year in which the credit is claimed fails to exceed 0.92 percent of the person's taxable amount during the same calendar year shall be liable for payment of the additional taxes represented by the amount of credit taken together with interest, but not penalties. Interest shall be due at the rate provided for delinquent excise taxes retroactively to the date the credit was taken until the taxes are paid. Any credit assigned to a person under subsection (3) of this section that is disallowed as a result of this section may be taken by the person who performed the qualified research and development subject to the limitations set forth in subsection (4) of this section.    (6) Any person claiming the credit, and any person assigning a credit as provided in subsection (3) of this section, shall file an affidavit form prescribed by the department which shall include the amount of the credit claimed, an estimate of the anticipated qualified research and development expenditures during the calendar year for which the credit is claimed, an estimate of the taxable amount during the calendar year for which the credit is claimed, and such additional information as the department may prescribe.           (7) A person claiming the credit shall agree to supply the department with information necessary to measure the results of the tax credit program for qualified research and development expenditures.    (8) The department shall use the information required under subsection (7) of this section to perform three assessments on the tax credit program authorized under this section. The assessments will take place in 1997, 2000, and 2003. The department shall prepare reports on each assessment and deliver their reports by September 1, 1997, September 1, 2000, and September 1, 2003. The assessments shall measure the effect of the program on job creation, the number of jobs created for Washington residents, company growth, the introduction of new products, the diversification of the state's economy, growth in research and development investment, the movement of firms or the consolidation of firms' operations into the state, and such other factors as the department selects.      (9) For the purpose of this section:         (a) "Qualified research and development expenditures" means operating expenses, including wages, compensation of a proprietor or a partner in a partnership as determined under rules adopted by the department, benefits, supplies, and computer expenses, directly incurred in qualified research and development by a person claiming the credit provided in this section. The term does not include amounts paid to a person other than a public educational or research institution to conduct qualified research and development. Nor does the term include capital costs and overhead, such as expenses for land, structures, or depreciable property.      (b) "Qualified research and development" shall have the same meaning as in RCW 82.63.010.             (c) "Research and development spending" means qualified research and development expenditures plus eighty percent of amounts paid to a person other than a public educational or research institution to conduct qualified research and development.             (d) "Taxable amount" means the taxable amount subject to the tax imposed in this chapter required to be reported on the person's combined excise tax returns during the year in which the credit is claimed, less any taxable amount for which a credit is allowed under RCW 82.04.440.   (10) This section shall expire December 31, 2004."               Renumber the sections consecutively and correct any internal references accordingly.

MOTION


      Senator Snyder moved that the following amendment by Senators Snyder, Loveland, Wojahn, Thibaudeau, Franklin, Brown and Swanson be adopted:

      On page 4, line 18, after “6.” strike all material through “1997." and insert “This act shall take effect January 1, 1998.                          NEW SECTION. Sec. 7. This act shall be submitted to the people for their adoption and ratification, or rejection, at the next succeeding general election to be held in this state, in accordance with Article II, section 1 of the state Constitution, as amended, and the laws adopted to facilitate the operation thereof.”   Debate ensued.


PARLIAMENTARY INQUIRY


      Senator Heavey: "A point of parliamentary inquiry, with regard to the gentleman from the forty-eighth district speaking about what a Governor may or may not do. Is it inappropriate to, under Reed's Rules, Section 224, to talk about another house or branch of government and what they may not do?"


REPLY BY THE PRESIDENT


      President Owen: "Senate Rules do prohibit that. However, the Senate has exercised some discretion over the years as it pertains to that matter, Senator Heavey."


PARLIAMENTARY INQUIRY


      Senator Heavey: "A point of parliamentary inquiry. Mr. President, which Senate Rules do we follow and which ones don't we follow?"


REPLY BY THE PRESIDENT


      President Owen: "We follow them all. We are looking for the citation for you, Senator Heavey. Are you withdrawing your parliamentary inquiry? We will find the citation for you, Senator Heavey, but I would caution the members to be careful about referencing the other bodies."

      Further debate ensued.

      Senator Snyder demanded a roll call and the demand was sustained.

      The President declared the question before the Senate to be the roll call on the adoption of the amendment by Senators Snyder, Loveland, Wojahn, Thibaudeau, Franklin, Brown and Swanson on page 4, line 18, to Senate Bill No. 7902.


ROLL CALL


      The Secretary called the roll and the amendment was not adopted by the following vote: Yeas, 22; Nays, 25; Absent, 0; Excused, 2.

      Voting yea: Senators Bauer, Brown, Fairley, Franklin, Fraser, Goings, Hargrove, Haugen, Heavey, Jacobsen, Kline, Kohl, Loveland, McAuliffe, Prentice, Rasmussen, Sheldon, Snyder, Spanel, Swanson, Thibaudeau and Wojahn - 22.        Voting nay: Senators Anderson, Benton, Deccio, Finkbeiner, Hale, Hochstatter, Horn, Johnson, Long, McDonald, Morton, Newhouse, Oke, Prince, Roach, Rossi, Schow, Sellar, Stevens, Strannigan, Swecker, West, Winsley, Wood and Zarelli - 25.       Excused: Senators McCaslin and Patterson - 2.

MOTIONS


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



      On page 1, on line 2 of the title, strike "and 82.04.293" and insert "82.04.293, and 82.04.4452"          On motion of Senator Hale, the rules were suspended, Engrossed Senate Bill No. 7902 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.


PARLIAMENTARY INQUIRY


      Senator Bauer: "A point of parliamentary inquiry. The previous speaker mentioned that this side of the aisle had cut off debate by asking for the previous question. It takes two-thirds vote to cut off debate, doesn't it, Mr. President?"


REPLY BY THE PRESIDENT


      President Owen: "A simple majority, Senator Bauer."

      Further debate ensued.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 7902.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 7902 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 3; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, West, Winsley, Wojahn, Wood and Zarelli - 44.                    Voting nay: Senators Kline, Prentice and Thibaudeau - 3.               Excused: Senators McCaslin and Patterson - 2.      ENGROSSED SENATE BILL NO. 7902, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5011, by Senators Prentice and Winsley

 

Changing the financial and reporting requirements of health care service contractors and health maintenance organizations.


MOTIONS


      On motion of Senator Winsley, Substitute Senate Bill No. 5011 was substituted for Senate Bill No. 5011 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Winsley, the rules were suspended, Substitute Senate Bill No. 5011 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5011.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5011 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 47.   Excused: Senators McCaslin and Patterson - 2.    SUBSTITUTE SENATE BILL NO. 5011, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Jacobsen: "A point of personal privilege, Mr. President. After you endured my first speech on the Senate floor a few weeks ago, I just wanted to thank all of you for the privilege of speaking to you. On your desks, you will find an oil triptych titled 'Shishole' by Seattle artist, Alfredo Arreguin. It is a poster depicting and illustrating a great scene--an honor for the state of Washington. He was the first artist that had a piece of work purchased by the Smithsonian and it is going to their new Hispanic collection. The other thing, I talked with Alfredo and if anybody would like to tour his studio at any time, I would be glad to arrange it. It is really a visual treat. Thank you for suffering through my first speech."


PERSONAL PRIVILEGE


      Senator West: "Speaking of offense, the distinguished Senator from the fifth district, today, imposed his verbiage upon the body. Actually, it was a speech honoring great people--the young people that were here earlier--but I think we all had to suffer under his long- winded explanation of why they were here and he carried on forever. He, indeed, owes each and every member, including the distinguished President, a tribute for having to endure that painful experience."



MOTION


      At 12:00 noon, on motion of Senator Johnson, the Senate recessed until 4:00 p.m.


      The Senate was called to order at 4:00 p.m. by President Owen.

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


MESSAGES FROM THE HOUSE

February 17, 1997

MR. PRESIDENT: 

      The Speaker has signed ENGROSSED SUBSTITUTE SENATE BILL NO. 5398, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


February 17, 1997

MR. PRESIDENT: 

      The Speaker has signed SENATE CONCURRENT RESOLUTION NO. 8406, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


MOTION


      At 4:02 p.m., on motion of Senator Johnson, the Senate adjourned until 12:00 noon, Tuesday, February 18, 1997.

 

BRAD OWEN, President of the Senate


MIKE O'CONNELL, Secretary of the Senate