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EIGHTY-NINTH DAY

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MORNING SESSION

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Senate Chamber, Olympia, Friday, April 11, 1997

The Senate was called to order at 9:00 a.m. by President Pro Tempore Newhouse. The Secretary called the roll and announced to the President Pro Tempore that all Senators were present except Senators Benton, Brown, Finkbeiner, Fraser, Hargrove, McCaslin, Patterson, Rasmussen, Schow and Swanson. On motion of Senator Hale, Senators Benton, Finkbeiner, McCaslin and Schow were excused. On motion of Senator Franklin, Senators Brown, Fraser, Patterson, Rasmussen and Swanson were excused.

The Sergeant at Arms Color Guard, consisting of Pages Anna Williams and Aaron Green, presented the Colors. Jim Cammack of the Baha'i Community of Olympia, 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.

MESSAGE FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

The House concurred in the Senate amendment(s) to ENGROSSED HOUSE BILL NO. 3901 and passed the bill as amended by the Senate.

TIMOTHY A. MARTIN, Chief Clerk

MOTION

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

SENATE RESOLUTION 1997-8651

By Senators Swecker and Snyder

WHEREAS, The geoducks growing in the waters of the state of Washington, recognized for their outstanding quality, are a valuable natural resource that should be administered to maximize their benefit to the public and to international commerce; and

WHEREAS, The geoduck divers, license holders, and their families are dependent upon this resource for their livelihood; and

WHEREAS, Geoduck harvesting contributes to the economy of the state of Washington; and

WHEREAS, The laws governing the harvesting of geoducks involve multiple state agencies with a wide variety of priorities and that there is debate over whether the laws are evenly enforced in a coordinated and comprehensive manner;

NOW, THEREFORE, BE IT RESOLVED, By the Senate, that the Senate Committee on Natural Resources and Parks review the statutes governing the management and administration of the geoduck fishery and the manner in which the Department of Natural Resources and the Department of Fish and Wildlife interpret and administer these laws in the fulfillment of their public responsibilities, with the charge of considering whether to propose legislation that will provide for the sound management of the resource. The committee shall report its findings and recommendations to the full Senate not later than the commencement of the January 1998 session of the Legislature.

Senators Swecker, Oke and Snyder spoke to Senate Resolution 1997-8651.

SECOND READING

GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Wood, Gubernatorial Appointment No. 9189, Kathleen M. Philbrick, as a member of the Board of Trustees for Skagit Valley Community College District No. 4, was confirmed.

APPOINTMENT OF KATHLEEN M. PHILBRICK

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 1; Excused, 9.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Franklin, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 39. Absent: Senator Hargrove - 1. Excused: Senators Benton, Brown, Finkbeiner, Fraser, McCaslin, Patterson, Rasmussen, Schow and Swanson - 9.

MOTION

On motion of Senator Wood, Gubernatorial Appointment No. 9190, Joseph J. Pinzone, as a member of the Work Force Training and Education Coordinating Board, was confirmed.

APPOINTMENT OF JOSEPH J. PINZONE

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 2; Excused, 8.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 39. Absent: Senators Kohl and Strannigan - 2. Excused: Senators Benton, Brown, Finkbeiner, McCaslin, Patterson, Rasmussen, Schow and Swanson - 8.

MOTION

On motion of Senator Winsley, Gubernatorial Appointment No. 9197, Frank Russell, as a member of the Board of Trustees for Bates Technical College District No. 28, was confirmed.

Senators Winsley and Franklin spoke to the confirmation of Frank Russell as a member of the Board of Trustees for Bates Technical College District No. 28.

APPOINTMENT OF FRANK RUSSELL

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 41; Nays, 0; Absent, 1; Excused, 7.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 41. Absent: Senator Kohl - 1. Excused: Senators Benton, Brown, McCaslin, Patterson, Rasmussen, Schow and Swanson - 7.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1975, by House Committee on Energy and Utilities (originally sponsored by Representatives DeBolt, Morris, Benson and Sullivan)

Regulating public ownership of coal-fired thermal electric generating facilities.

The bill was read the second time.

MOTION

On motion of Senator Finkbeiner, the rules were suspended, Substitute House Bill No. 1975 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1975.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1975 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, Bauer, 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, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43. Excused: Senators Benton, Brown, McCaslin, Patterson, Schow and Swanson - 6. SUBSTITUTE HOUSE BILL NO. 1975, 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

HOUSE BILL NO. 1353, by Representatives Buck, Fisher, K. Schmidt, Mitchell and Wensman (by request of Department of Transportation)

Facilitating sale of materials from department of transportation lands.

The bill was read the second time.

MOTIONS

On motion of Senator Prince, the following Committee on Transportation amendment was adopted:

Strike everything after the enacting clause and insert the following: "Sec. 1. RCW 47.12.140 and 1981 c 260 s 12 are each amended to read as follows: (((1) Except as otherwise provided in subsection (2) of this section,)) Whenever the department ((shall have)) has acquired any lands for ((highway)) transportation purposes, except state granted lands, upon which are located any structures, timber, or other thing of value attached to the land((, which)) that the department ((shall)) deems it best to sever from the land and sell as personal property, the same may be ((sold)) disposed of by one of the following means: (1) The department may sell the personal property at public auction after due notice ((thereof shall have)) has been given in accordance with general ((regulations)) rules adopted by the secretary. The department may set minimum prices that will be accepted for any item offered for sale at public auction as ((herein)) provided in this section and may prescribe terms or conditions of sale ((and, in the event that any)). If an item ((shall be)) is offered for sale at ((such)) the auction and ((for which)) no satisfactory bids ((shall be)) are received or ((for which)) the amount bid ((shall be)) is less than the minimum set by the department, ((it shall be lawful for)) the department ((to)) may sell ((such)) the item at private sale for the best price ((which)) that it deems obtainable, but ((at)) not less than the highest price bid at the public auction. The proceeds of all sales under this section ((shall)) must be placed in the motor vehicle fund. (2) The department may issue permits to residents of this state to remove specified quantities of standing or downed trees and shrubs, rock, sand, gravel, or soils ((which)) that have no market value in place and ((which)) that the department desires to be removed from state-owned lands ((which)) that are under the jurisdiction of the department. An applicant for ((such)) a permit must certify that the materials so removed are to be used by ((himself)) the applicant and that they will not be disposed of to any other person. Removal of materials ((pursuant to)) under the permit ((shall)) must be in accordance with ((such regulations as)) rules adopted by the department ((shall prescribe)). The fee for a permit ((shall be)) is two dollars and fifty cents, which ((shall)) fee must be deposited in the motor vehicle fund. The department may adopt ((regulations)) rules providing for special access to limited access facilities for the purpose of removal of materials ((pursuant to)) under permits authorized in this section. (3) The department may sell timber or logs to an abutting landowner for cash at full appraised value, but only after each other abutting owner (if any), as shown in the records of the county assessor, is notified in writing of the proposed sale. If more than one abutting owner requests in writing the right to purchase the timber within fifteen days after receiving notice of the proposed sale, the timber must be sold in accordance with subsection (1) of this section. (4) The department may sell timber or logs having an appraised value of one thousand dollars or less directly to interested parties for cash at the full appraised value without notice or advertising. If the timber is attached to state-owned land, the department shall issue a permit to the purchaser of the timber to allow for the removal of the materials from state land. The permit fee is two dollars and fifty cents." On motion of Senator Prince, the following title amendment was adopted:

On line 2 of the title, after "lands;" strike the remainder of the title and insert "and amending RCW 47.12.140."

MOTION

On motion of Senator Prince, the rules were suspended, House Bill No. 1353, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1353, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1353, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, Bauer, 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, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43. Excused: Senators Benton, Brown, McCaslin, Patterson, Schow and Swanson - 6. HOUSE BILL NO. 1353, as amended by the Senate, 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

HOUSE BILL NO. 1473, by Representatives Sheldon, Buck, Veloria, Morris, Kessler, Scott and Dickerson

Providing supplemental appropriation authority for the development loan fund.

The bill was read the second time.

MOTION

On motion of Senator West, the rules were suspended, House Bill No. 1473 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1473.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1473 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Anderson, Bauer, 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, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44. Excused: Senators Benton, Brown, McCaslin, Patterson and Schow - 5. HOUSE BILL NO. 1473, 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

SECOND SUBSTITUTE HOUSE BILL NO. 1557, by House Committee on Finance (originally sponsored by Representatives Buck, Linville, Crouse, Kastama, Hankins, Grant, Lisk, Doumit, Hatfield, Johnson and Regala)

Exempting from taxation and valuation of property improvements used for fish and habitat restoration and protection and water quantity and quality improvement programs.

The bill was read the second time.

MOTIONS

On motion of Senator Oke, the following Committee on Natural Resources and Parks amendment was adopted:

Strike everything after the enacting clause and insert the following: "NEW SECTION. Sec. 1. The purpose of this act is to improve fish and wildlife habitat, water quality, and water quantity for the benefit of the public at large. Private property owners should be encouraged to make voluntary improvements to their property as recommended by governmental agencies without the penalty of paying higher property taxes as a result of those improvements. NEW SECTION. Sec. 2. A new section is added to chapter 84.36 RCW to read as follows: (1) All improvements to real and personal property that benefit fish and wildlife habitat, water quality, or water quantity are exempt from taxation if the improvements are included under a written conservation plan approved by a conservation district. The conservation districts shall cooperate with the federal natural resource conservation service, other conservation districts, the department of ecology, the department of fish and wildlife, and nonprofit organizations to assist landowners by working with them to obtain approved conservation plans so as to qualify for the exemption provided for in this section. As provided in subsection (3) of this section and section 3(2) of this act, a conservation district shall certify that the best management practice benefits fish and wildlife habitat, water quality, or water quantity. A habitat conservation plan under the terms of the federal endangered species act shall not be considered a conservation plan for purposes of this exemption. (2) The exemption shall remain in effect only if improvements identified in the written best management practices agreement are maintained as originally approved or amended. Improvements made as a requirement to mitigate for impacts to fish and wildlife habitat, water quality, or water quantity are not eligible for exemption under this section. (3) A claim for exemption under this section may be filed annually with the county assessor at any time during the year for exemption from taxes levied for collection in the following year when submitted on forms prescribed by the department of revenue developed in consultation with the conservation district. The landowner shall certify each year that the improvements for which exemption is sought are maintained as originally approved or amended in the written conservation plan. The claim must contain the certification by the conservation district that the improvements for which exemption is sought were included under a written conservation plan approved by the conservation district including best management practices that benefit fish and wildlife habitat, water quality, or water quantity. NEW SECTION. Sec. 3. A new section is added to chapter 89.08 RCW to read as follows: (1) For the purpose of identifying property that may qualify for the exemption provided under section 2 of this act, each conservation district shall develop and maintain a list of best management practices that qualify for the exemption. (2) Each conservation district shall ensure that the appropriate forms approved by the department of revenue are made available to property owners who may qualify for the exemption under section 2 of this act and shall certify claims for exemption as provided in section 2(3) of this act. NEW SECTION. Sec. 4. Section 2 of this act applies to taxes levied for collection in 1998 and thereafter." On motion of Senator Oke, the following title amendment was adopted:

On page 1, line 3 of the title, after "programs;" strike the remainder of the title and insert "adding a new section to chapter 84.36 RCW; adding a new section to chapter 89.08 RCW; and creating new sections."

MOTION

On motion of Senator Oke, the rules were suspended, Second Substitute House Bill No. 1557, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Franklin, Senator Goings was excused.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Second Substitute House Bill No. 1557, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Second Substitute House Bill No. 1557, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43. Excused: Senators Benton, Brown, Goings, McCaslin, Patterson and Schow - 6. SECOND SUBSTITUTE HOUSE BILL NO. 1557, as amended by the Senate, 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. 5402, by Senators Roach, Johnson, Sheldon, Bauer, Patterson and Haugen

Providing tax exemptions for nonprofit camps and conferences.

The bill was read the second time.

MOTION

On motion of Senator West, the rules were suspended, Senate Bill No. 5402 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5402.

ROLL CALL

The Secretary called the roll on the final passage of Senate Bill No. 5402 and the bill passed the Senate by the following vote: Yeas, 41; Nays, 0; Absent, 2; Excused, 6.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 41. Absent: Senators McDonald and Sellar - 2. Excused: Senators Benton, Brown, Goings, McCaslin, Patterson and Schow - 6. SENATE BILL NO. 5402, 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. 5935, by Senators Wojahn, Fairley and Franklin (by request of Department of Social and Health Services)

Providing for the recovery of the costs of long-term medical care paid by the department of social and health services.

MOTIONS

On motion of Senator West, Substitute Senate Bill No. 5935 was substituted for Senate Bill No. 5935 and the substitute bill was placed on second reading and read the second time.

On motion of Senator Wojahn, the rules were suspended, Substitute Senate Bill No. 5935 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

MOTION

On motion of Senator Hale, Senators McDonald and Sellar were excused.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5935.

ROLL CALL

The Secretary called the roll on the final passage of Substitute Senate Bill No. 5935 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, Bauer, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 42. Excused: Senators Benton, Brown, McCaslin, McDonald, Patterson, Schow and Sellar - 7. SUBSTITUTE SENATE BILL NO. 5935, 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

HOUSE BILL NO. 1593, by Representatives Scott, Zellinsky and Sheldon

Collecting solid waste or recyclables.

The bill was read the second time.

MOTION

On motion of Senator Prince, the rules were suspended, House Bill No. 1593 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1593.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1593 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 43. Excused: Senators Benton, McCaslin, McDonald, Patterson, Schow and Sellar - 6. HOUSE BILL NO. 1593, 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

SUBSTITUTE HOUSE BILL NO. 1594, by House Committee on Transportation Policy and Budget (originally sponsored by Representatives Zellinsky, Scott and Sheldon)

Relaxing front end length limits on garbage trucks.

The bill was read the second time.

MOTION

On motion of Senator Prince, the rules were suspended, Substitute House Bill No. 1594 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1594.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1594 and the bill passed the Senate by the following vote:

Yeas, 42; Nays, 0; Absent, 1; Excused, 6.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, Winsley, Wojahn, Wood and Zarelli - 42. Absent: Senator West - 1. Excused: Senators Benton, McCaslin, McDonald, Patterson, Schow and Sellar - 6. The Secretary called the roll on the final passage of Substitute House Bill No. 1594 and the bill passed the Senate by the following vote:

SUBSTITUTE HOUSE BILL NO. 1594, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Hale, Senator West was excused.

SECOND READING

HOUSE BILL NO. 1604, by Representatives Cairnes, O'Brien, Radcliff, Hankins, Mielke, K. Schmidt, Fisher, Mitchell, Skinner, Johnson, Hatfield, Buck and Clements

Clarifying advertising requirements for limousines.

The bill was read the second time.

MOTION

On motion of Senator Prince, the rules were suspended, House Bill No. 1604 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1604.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1604 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, Morton, Newhouse, Oke, Prentice, Prince, Rasmussen, Roach, Rossi, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, Winsley, Wojahn, Wood and Zarelli - 42. Excused: Senators Benton, McCaslin, McDonald, Patterson, Schow, Sellar and West - 7. HOUSE BILL NO. 1604, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Johnson, the Senate advanced to the eighth order of business.

MOTION

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

SENATE RESOLUTION 1997-8655

By Senator Oke, Hochstatter, Rossi, Swecker, Fairley, Winsley, Swanson, Roach, Goings and Rasmussen

WHEREAS, The 448th Civil Affairs Battalion is an Army Reserve unit located on Ft. Lewis and made up of citizen-soldiers from the state of Washington; and

WHEREAS, The mission of the 448th Civil Affairs Battalion is of long-term importance which does not end with victory on the battle field but continues through the restructuring of civilian and governmental institutions, rebuilding of societies, resettlement of displaced civilians, and restoration of essential services such as medical, infrastructure, and governmental in areas devastated by war, insurrection and natural disaster; and

WHEREAS, The 448th Civil Affairs Battalion was activated by President Clinton and sent to the Republic of Haiti to assist in Operation Uphold Democracy in January 1995, returning to a tumultuous welcome on July 1, 1995, at McChord Air Force Base; and

WHEREAS, The 448th Civil Affairs Battalion brought great credit upon itself and the state of Washington by its outstanding work in helping to restore services and democracy in the Republic of Haiti through the numerous awards and recognition received from commanders in Haiti including one of the Army's highest unit awards, the Joint Meritorious Unit Award; and

WHEREAS, The 448th Civil Affairs Battalion continues their peace-keeping work throughout the Pacific Rim in countries as diverse as Thailand, Japan, South Korea, Cambodia and Australia, as well as the Persian Gulf, Central America, Haiti, and the former Yugoslavia as part of the U.S. Army Special Operations Forces and always remains on-call and ready to go anywhere, anytime they are needed;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate of this Fifty-fifth Legislature honors the soldiers and families of the 448th Civil Affairs Battalion for its work on behalf of peace and democracy in the Republic of Haiti and throughout the world, and recognizes them for their outstanding service as citizen-soldiers of the great State of Washington.

BE IT FURTHER RESOLVED, That a copy of this Resolution be transmitted by the Secretary of the Senate to the Commander of the 448th Civil Affairs Battalion at Ft. Lewis, Washington.

Senators Oke, Swecker, Rasmussen, Franklin and Swanson spoke to Senate Resolution 1997-8655.

INTRODUCTION OF SPECIAL GUESTS

The President Pro Tempore introduced the members of the 448^th Civil Affairs Battalion, who were seated in the gallery.

Vice President Pro Tempore Morton assumed the Chair.

There being no objection, the Vice President Pro Tempore returned the Senate to the sixth order of business.

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1678, by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives L. Thomas, Smith, Wolfe, Sullivan and Zellinsky)

Regulating mortgage brokers.

The bill was read the second time.

MOTION

On motion of Senator Winsley, the rules were suspended, Engrossed Substitute House Bill No. 1678 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1678.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1678 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

Voting yea: Senators Anderson, Bauer, Brown, 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 - 45. Absent: Senator Deccio - 1. Excused: Senators Benton, McCaslin and Patterson - 3. ENGROSSED SUBSTITUTE HOUSE BILL NO. 1678, 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

SUBSTITUTE HOUSE BILL NO. 1693, by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives L. Thomas and Wolfe)

Allowing credit for reinsured ceded risks.

The bill was read the second time.

MOTIONS

On motion of Senator Winsley, the following Committee on Financial Institutions, Insurance and Housing amendment was adopted:

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The purpose of this act is to protect the interest of insureds, claimants, ceding insurers, assuming insurers, and the public generally.

(2) It is the intent of the legislature to ensure adequate regulation of insurers and reinsurers and adequate protection for those to whom they owe obligations. (3) It is also the intent of the legislature to declare that the matters contained in this act are fundamental to the business of insurance and to exercise its powers and privileges under 15 U.S.C. Secs. 1011 and 1012.

NEW SECTION. Sec. 2. For purposes of this act, a "qualified United States financial institution" means an institution that complies with all of the following:

(1) Is organized or, in the case of a United States office of a foreign banking organization, licensed under the laws of the United States or any state thereof; (2) Is regulated, supervised, and examined by United States federal or state authorities having regulatory authority over banks and trust companies; (3) Has been determined by the commissioner, or, in the discretion of the commissioner, the securities valuation office of the national association of insurance commissioners, to meet such standards of financial condition and standing as are considered necessary and appropriate to regulate the quality of financial institutions whose letters of credit will be acceptable to the commissioner; and (4) Is not affiliated with the assuming company.

NEW SECTION. Sec. 3. Upon insolvency of a non-United States insurer or reinsurer that provides security to fund its United States obligations in accordance with this act, the assets representing the security must be maintained in the United States and claims must be filed with and valued by the state insurance commissioner with regulatory oversight, and the assets distributed, in accordance with the insurance laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic United States insurance companies.

NEW SECTION. Sec. 4. (1) Credit for reinsurance in a reinsurance contract entered into after December 31, 1996, is allowed a domestic ceding insurer as either an asset or a deduction from liability in accordance with RCW 48.12.160 only if the reinsurance contract contains provisions that provide, in substance, as follows:

(a) The reinsurer shall indemnify the ceding insurer against all or a portion of the risk it assumed according to the terms and conditions contained in the reinsurance contract. (b) In the event of insolvency and the appointment of a conservator, liquidator, or statutory successor of the ceding company, the portion of risk or obligation assumed by the reinsurer is payable to the conservator, liquidator, or statutory successor on the basis of claims allowed against the insolvent company by a court of competent jurisdiction or by a conservator, liquidator, or statutory successor of the company having authority to allow such claims, without diminution because of that insolvency, or because the conservator, liquidator, or statutory successor failed to pay all or a portion of any claims. Payments by the reinsurer as provided in this subsection are made directly to the ceding insurer or to its conservator, liquidator, or statutory successor, except where the contract of insurance, reinsurance, or other written agreement specifically provides another payee of such reinsurance in the event of the insolvency of the ceding insurer. (2) Payment under a reinsurance contract must be made within a reasonable time with reasonable provision for verification in accordance with the terms of the reinsurance agreement. However, in no event shall the payments be beyond the period required by the national association of insurance commissioners accounting practices and procedures manual. (3) The original insured or policyholder may not have any rights against the reinsurer that are not specifically set forth in the contract of reinsurance, or in a specific agreement between the reinsurer and the original insured or policyholder.

NEW SECTION. Sec. 5. Credit for reinsurance, as either an asset or a deduction, is prohibited in an accounting or financial statement of the ceding insurer in respect to the reinsurance contract unless, in such contract, the reinsurer undertakes to indemnify the ceding insurer against all or a part of the loss or liability arising out of the original insurance. This section only applies to those reinsurance contracts entered into after December 31, 1996.

Sec. 6. RCW 48.12.160 and 1996 c 297 s 1 are each amended to read as follows:

(1) Any insurance company organized under the laws of this state may take credit as an asset or as a deduction from loss or claim, unearned premium, or life policy or contract reserves on risks ceded to a reinsurer to the extent reinsured by an insurer or insurers holding a certificate of authority to transact that kind of business in this state, unless the assuming insurer is the subject of a regulatory order or regulatory oversight by a state in which it is licensed based upon a commissioner's determination that the assuming insurer is in a hazardous financial condition. The credit on ceded risks reinsured by any insurer which is not authorized to transact business in this state may be taken: (a) Where the reinsurer is a group including incorporated and unincorporated underwriters, and the group maintains a trust fund in a ((United States bank that is determined by the national association of insurance commissioners to meet credit standards for issuing letters of credit in connection with reinsurance,)) qualified United States financial institution which trust fund must be in an amount equal to ((the group's liabilities attributable to business written in the United States, and)): (i) For reinsurance ceded under reinsurance agreements with an inception, amendment, or renewal date on or after August 1, 1995, funds in trust in an amount not less than the group's several liabilities attributable to business ceded by United States domiciled insurers to any member of the group; or (ii) For reinsurance ceded under reinsurance agreements with an inception date on or before July 31, 1995, and not amended or renewed after that date, notwithstanding the other provisions of this act, funds in trust in an amount not less than the group's several insurance and reinsurance liabilities attributable to business written in the United States. In addition, the group shall maintain a trusteed surplus of which one hundred million dollars shall be held jointly and exclusively for the benefit of United States ceding insurers of any member of the group((;)). The incorporated members of the group shall not be engaged in any business other than underwriting as a member of the group and shall be subject to the same level of solvency regulation and control by the group's domiciliary regulator as are the unincorporated members; and the group shall make available to the commissioner an annual certification of the solvency of each underwriter by the group's domiciliary regulator and its independent public accountants; (b) Where the reinsurer does not meet the definition of (a) of this subsection, the single assuming alien reinsurer that, as of the date of the ceding insurer's statutory financial statement, maintains a trust fund in a ((United States bank that is determined by the national association of insurance commissioners to meet credit standards for issuing letters of credit in connection with reinsurance)) qualified United States financial institution, which trust fund must be in an amount ((equal to)) not less than the assuming alien reinsurer's liabilities attributable to reinsurance ceded by United States domiciled insurers, and in addition, the assuming insurer shall maintain a trusteed surplus of not less than twenty million dollars , and the assuming alien reinsurer maintaining the trust fund must have received a registration from the commissioner under section 7 of this act. The assuming alien reinsurer shall report on or before February 28th to the commissioner substantially the same information as that required to be reported on the national association of insurance commissioners annual statement form by licensed insurers, to enable the commissioner to determine the sufficiency of the trust fund; ((or)) (c) In an amount not exceeding: (i) The amount of deposits by and funds withheld from the assuming insurer pursuant to express provision therefor in the reinsurance contract, as security for the payment of the obligations thereunder, if the deposits or funds are assets of the types and amounts that are authorized under chapter 48.13 RCW and are held subject to withdrawal by and under the control of the ceding insurer or if the deposits or funds are placed in trust for these purposes in a bank which is a member of the federal reserve system and withdrawals from the trust cannot be made without the consent of the ceding company; or (ii) The amount of a clean, irrevocable, and unconditional letter of credit issued by a United States bank that is determined by the national association of insurance commissioners to meet credit standards for issuing letters of credit in connection with reinsurance, and issued for a term of at least one year with provisions that it must be renewed unless the bank gives notice of nonrenewal at least thirty days before the expiration issued under arrangements satisfactory to the commissioner of insurance as constituting security to the ceding insurer substantially equal to that of a deposit under (c)(i) of this subsection. (2) Credit for reinsurance may not be granted under subsection (1)(a), (b), and (c)(i) of this section unless: (a) The form of the trust and amendments to the trust have been approved by the insurance commissioner of the state where the trust is located, or the insurance commissioner of another state who, pursuant to the terms of the trust agreement, has accepted principal regulatory oversight of the trust; (b) The trust and trust amendments are filed with the commissioner of every state in which the ceding insurer beneficiaries of the trust are domiciled; (c) The trust instrument provides that contested claims are valid, enforceable, and payable out of funds in trust to the extent remaining unsatisfied thirty days after entry of the final order of a court of competent jurisdiction in the United States; (d) The trust vests legal title to its assets in the trustees of the trust for the benefit of the grantor's United States ceding insurers, their assigns, and successors in interest; (e) The trust and the assuming insurer are subject to examination as determined by the commissioner; (f) The trust shall remain in effect for as long as the assuming insurer, member, or former member of a group of insurers has outstanding obligations due under the reinsurance agreements subject to the trust; and (g) No later then February 28th of each year, the trustees of the trust report to the commissioner in writing setting forth the balance of the trust and listing the trust's investments at the preceding year end. In addition, the trustees of the trust shall certify the date of termination of the trust, if so planned, or certify that the trust shall not expire within the next twelve months. (3) Any reinsurance ceded by a company organized under the laws of this state or ceded by any company not organized under the laws of this state and transacting business in this state must be payable by the assuming insurer on the basis of liability of the ceding company under the contract or contracts reinsured without diminution because of the insolvency of the ceding company, and any such reinsurance agreement which may be canceled on less than ninety days notice must provide for a run-off of the reinsurance in force at the date of cancellation. (((3) A reinsurance agreement may provide that the)) (4) The domiciliary conservator, liquidator ((or)), receiver, or statutory successor of an insolvent ceding insurer shall give written notice to the assuming insurer of the pendency of a claim against the insolvent ceding insurer on the policy or bond reinsured within a reasonable time after such claim is filed in the insolvency proceeding and that during the pendency of such claim any assuming insurer may investigate such claim and interpose, at its own expense, in the proceeding where such claim is to be adjudicated, any defense or defenses which it may deem available to the ceding insurer or its liquidator or receiver or statutory successor. The expense thus incurred by the assuming insurer shall be chargeable subject to court approval against the insolvent ceding insurer as a part of the expense of liquidation to the extent of a proportionate share of the benefit which may accrue to the ceding insurer solely as a result of the defense undertaken by the assuming insurer. (((4))) (5) Where two or more assuming insurers are involved in the same claim and a majority in interest elect to interpose to such claim, the expense shall be apportioned in accordance with the terms of the reinsurance agreement as though such expense had been incurred by the ceding insurer. (6) The credit permitted by subsection (1)(b) of this section is prohibited unless the assuming alien insurer agrees in the trust agreement, notwithstanding other provisions in the trust instrument, if the trust fund is inadequate because it contains an amount less than the amount required by subsection (1)(b) of this section or if the grantor of the trust has been declared insolvent or placed into receivership, rehabilitation, liquidation, or similar proceedings under the laws of its state or country of domicile: (a) To comply with an order of the commissioner with regulatory oversight over the trust or with an order of a court of competent jurisdiction directing the trustee to transfer to the commissioner with regulatory oversight all of the assets of the trust fund; (b) That assets be distributed by, and insurance claims of United States trust beneficiaries be filed with and valued by, the commissioner with regulatory oversight in accordance with the laws of the state in which the trust is domiciled that are applicable to the liquidation of domestic insurance companies; (c) That if the commissioner with regulatory oversight determines that the assets of the trust fund or a part thereof are not necessary to satisfy the claims of the United States ceding insurers, which are United States trust beneficiaries, the assets or part thereof shall be returned by the commissioner with regulatory oversight to the trustee for distribution in accordance with the trust agreement; and (d) That the grantor waives any right otherwise available to it under United States law that is inconsistent with this provision. NEW SECTION. Sec. 7. (1) The assuming alien reinsurer must register with the commissioner and must: (a) File with the commissioner evidence of its submission to this state's jurisdiction and to this state's authority to examine its books and records under chapter 48.03 RCW; (b) Designate the commissioner as its lawful attorney upon whom service of all papers may be made for an action, suit, or proceeding instituted by or on behalf of the ceding insurer; (c) File with the commissioner a certified copy of a letter or a certificate of authority or a certificate of compliance issued by the assuming alien insurer's domiciliary jurisdiction and the domiciliary jurisdiction of its United States reinsurance trust; (d) Submit a statement, signed and verified by an officer of the assuming alien insurer to be true and correct, that discloses whether the assuming alien insurer or an affiliated person who owns or has a controlling interest in the assuming alien insurer is currently known to be the subject of one or more of the following: (i) An order or proceeding regarding conservation, liquidation, or receivership; (ii) An order or proceeding regarding the revocation or suspension of a license or accreditation to transact insurance or reinsurance in any jurisdiction; or (iii) An order or proceeding brought by an insurance regulator in any jurisdiction seeking to restrict or stop the assuming alien insurer from transacting insurance or reinsurance based upon a hazardous financial condition. The assuming alien insurer shall provide the commissioner with copies of all orders or other documents initiating proceedings subject to disclosure under this subsection. The statement must affirm that no actions, proceedings, or orders subject to this subsection are outstanding against the assuming alien insurer or an affiliated person who owns or has a controlling interest in the assuming alien insurer, except as disclosed in the statement; (e) File other information, financial or otherwise, which the commissioner reasonably requests. (2) A registration continues in force until suspended, revoked, or not renewed. A registration is subject to renewal annually on the first day of July upon application of the assuming alien insurer and payment of the fee in the same amount as an insurer pays for renewal of a certificate of authority. (3) The commissioner shall give an assuming alien insurer notice of his or her intention to revoke or refuse to renew its registration at least ten days before the order of revocation or refusal is to become effective. (4) The commissioner shall, consistent with chapters 48.04 and 34.05 RCW, deny or revoke an assuming alien insurer's registration if the assuming alien insurer no longer qualifies or meets the requirements for registration. (5) The commissioner may, consistent with chapters 48.04 and 34.05 RCW, deny or revoke an assuming alien insurer's registration if the assuming alien insurer: (a) Fails to comply with a provision of this chapter or fails to comply with an order or regulation of the commissioner; (b) Is found by the commissioner to be in such a condition that its further transaction of reinsurance would be hazardous to ceding insurers, policyholders, or the people in this state; (c) Refuses to remove or discharge a trustee, director, or officer who has been convicted of a crime involving fraud, dishonesty, or moral turpitude; (d) Usually compels policy-holding claimants either to accept less than the amount due them or to bring suit against the assuming alien insurer to secure full payment of the amount due; (e) Refuses to be examined, or its trustees, directors, officers, employees, or representatives refuse to submit to examination or to produce its accounts, records, and files for examination by the commissioner when required, or refuse to perform a legal obligation relative to the examination; (f) Refuses to submit to the jurisdiction of the United States courts; (g) Fails to pay a final judgment rendered against it: (i) Within thirty days after the judgment became final; (ii) Within thirty days after time for taking an appeal has expired; or (iii) Within thirty days after dismissal of an appeal before final determination;whichever date is later. (h) Is found by the commissioner, after investigation or upon receipt of reliable information: (i) To be managed by persons, whether by its trustees, directors, officers, or by other means, who are incompetent or untrustworthy or so lacking in insurance company management experience as to make proposed operation hazardous to the insurance-buying public; or (ii) That there is good reason to believe it is affiliated directly or indirectly through ownership, control, or business relations, with a person or persons whose business operations are, or have been found to be, in violation of any law or rule, to the detriment of policyholders, stockholders, investors, creditors, or of the public, by bad faith or by manipulation of the assets, accounts, or reinsurance; (i) Does business through reinsurance intermediaries or other representatives in this state or in any other state, who are not properly licensed under applicable laws and rules; or (j) Fails to pay, by the date due, any amounts required by this code. (6) A domestic ceding insurer is not allowed credit with respect to reinsurance ceded, if the assuming alien insurer's registration has been revoked by the commissioner. (7) The actual costs and expenses incurred by the commissioner for an examination of a registered alien insurer must be charged to and collected from the alien reinsurer. (8) A registered alien reinsurer is included as a "class one" organization for the purposes of RCW 48.02.190. NEW SECTION. Sec. 8. (1) Unless credit for reinsurance or deduction from liability is prohibited under section 5 of this act, a foreign ceding insurer is allowed credit for reinsurance or deduction from liability to the extent credit has been allowed by the ceding insurer's state of domicile if: (a) The state of domicile is accredited by the national association of insurance commissioners; or (b) Credit or deduction from liability would be allowed under this act if the foreign ceding insurer were domiciled in this state. (2) Notwithstanding subsection (1) of this section, credit for reinsurance or deduction from liability may be disallowed upon a finding by the commissioner that either the condition of the reinsurer, or the collateral or other security provided by the reinsurer, does not satisfy the credit for reinsurance requirements applicable to ceding insurers domiciled in this state. NEW SECTION. Sec. 9. The commissioner may adopt rules to implement and administer this act. NEW SECTION. Sec. 10. RCW 48.05.300 and 1993 c 91 s 1, 1977 ex.s. c 180 s 1, & 1947 c 79 s .05.30 are each repealed. NEW SECTION. Sec. 11. Sections 2 through 5 and 7 through 9 of this act are each added to chapter 48.12 RCW." On motion of Senator Winsley, the following title amendment was adopted:

On page 1, line 1 of the title, after "risks;" strike the remainder of the title and insert "amending RCW 48.12.160; adding new sections to chapter 48.12 RCW; creating a new section; and repealing RCW 48.05.300."

MOTION

On motion of Senator Winsley, the rules were suspended, Substitute House Bill No. 1693, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1693, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1693, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Anderson, Bauer, 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 - 46. Excused: Senators Benton, McCaslin and Patterson - 3. SUBSTITUTE HOUSE BILL NO. 1693, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 10:32 a.m., on motion of Senator Johnson, the Senate recessed until 1:30 p.m.

The Senate was called to order at 1:39 p.m. by Vice President Pro Tempore Morton.

SECOND READING

GUBERNATORIAL APPOINTMENTS

MOTION

On motion of Senator Hochstatter, Gubernatorial Appointment No. 9139, Nancylynn Bridges, as a member of the Board of Trustees for the State School for the Deaf, was confirmed.

MOTIONS

On motion of Senator Hale, Senators Deccio, Finkbeiner, Oke, Prince, Schow and West were excused.

On motion of Senator Franklin, Senators Hargrove, Swanson and Wojahn were excused.

APPOINTMENT OF NANCYLYNN BRIDGES

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 39; Nays, 0; Absent, 0; Excused, 10.

Voting yea: Senators Anderson, Bauer, Brown, Fairley, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, Winsley, Wood and Zarelli - 39. Excused: Senators Benton, Deccio, Finkbeiner, Hargrove, Oke, Prince, Schow, Swanson, West and Wojahn - 10.

MOTION

On motion of Senator Hochstatter, Gubernatorial Appointment No. 9148, Ricky Dockter, as a member of the Board of Trustees for the State School for the Deaf, was confirmed.

APPOINTMENT OF RICKY DOCKTER

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

MOTION

On motion of Senator Swecker, Gubernatorial Appointment No. 9117, Thomas C. Fitzsimmons, as Director of the Department of Ecology, was confirmed.

Senators Swecker, Fraser, Heavey and Deccio spoke to the appointment of Thomas C. Fitzsimmons as Director of the Department of Ecology.

APPOINTMENT OF THOMAS C. FITZSIMMONS

The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

PERSONAL PRIVILEGE

Senator McCaslin: “A point of personal privilege. I just want to point out to the body that he hasn't looked me in the eye since I met him.”

SECOND READING

HOUSE BILL NO. 1646, by Representatives Quall, Ballasiotes, Dickerson and Sullivan

Extending the existence of the indeterminate sentence review board.

The bill was read the second time.

MOTIONS

On motion of Senator West, the following Committee on Ways and Means amendment was adopted:

On page 2, line 21, after "board" insert "indicating compliance with RCW 42.52.020, 42.52.030, 42.52.040 and 42.52.120" On motion of Senator West, the rules were suspended, House Bill No. 1646, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1646, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1646, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 46. Excused: Senators Benton, Hargrove and Oke - 3. HOUSE BILL NO. 1646, as amended by the Senate, 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.

INTRODUCTION OF SPECIAL GUESTS

The Vice President Pro Tempore offered condolences to the family of Senator Ray Schow, who were seated in the gallery. Senator Schow's wife, Lynn, passed away Tuesday, April 8, 1997.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1776, by House Committee on Appropriations (originally sponsored by Representatives Huff, H. Sommers, Alexander, Benson, Clements, Wensman, O'Brien and Boldt) (by request of Office of Financial Management)

Regarding school audits.

The bill was read the second time.

MOTION

On motion of Senator West, the rules were suspended, Substitute House Bill No. 1776 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1776.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1776 and the bill passed the Senate by the following vote:

Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 45. Absent: Senator Goings - 1. Excused: Senators Benton, Hargrove and Oke - 3. SUBSTITUTE HOUSE BILL NO. 1776, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Hale, Senator Wood was excused.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1632, by House Committee on Government Administration (originally sponsored by Representatives D. Schmidt, Scott, Reams, Kenney, Blalock, Dickerson, Wood, Ogden, Costa, Dunn, Tokuda, Butler and Cole) (by request of Attorney General

Gregoire)

Establishing a study group to determine whether further training for state investigators is needed.

The bill was read the second time.

MOTIONS

On motion of Senator Fraser, the following amendment by Senators Fraser and Morton was adopted:

On page 1, line 14, after “health;” insert “department of ecology; department of fish and wildlife;” On motion of Senator McCaslin, the rules were suspended, Substitute House Bill No. 1632, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1632, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1632, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 45. Excused: Senators Benton, Hargrove, Oke and Wood - 4. SUBSTITUTE HOUSE BILL NO. 1632, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Hale, Senator Winsley was excused.

SECOND READING

HOUSE BILL NO. 1761, by Representatives D. Schmidt, Scott, Talcott and Lambert

Revising provisions for mutual aid and interlocal agreements.

The bill was read the second time.

MOTION

On motion of Senator McCaslin, the rules were suspended, House Bill No. 1761 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1761.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1761 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 2; Excused, 5.

Voting yea: Senators Anderson, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Wojahn and Zarelli - 42. Absent: Senators Bauer and Kohl - 2. Excused: Senators Benton, Hargrove, Oke, Winsley and Wood - 5. HOUSE BILL NO. 1761, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

On motion of Senator Franklin, Senators Bauer and Kohl were excused.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1829, by House Committee on Commerce and Labor (originally sponsored by Representative Van Luven)

Requiring a record of transaction for trade-in or exchange of computer hardware.

The bill was read the second time.

MOTION

On motion of Senator Schow, the rules were suspended, Substitute House Bill No. 1829 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1829.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1829 and the bill passed the Senate by the following vote: Yeas, 31; Nays, 11; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, Brown, Deccio, Finkbeiner, Franklin, Goings, Hale, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, McCaslin, McDonald, Morton, Newhouse, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Snyder, Stevens, Strannigan, Swecker, West and Zarelli - 31. Voting nay: Senators Fairley, Fraser, Haugen, Loveland, McAuliffe, Patterson, Sheldon, Spanel, Swanson, Thibaudeau and Wojahn - 11. Excused: Senators Bauer, Benton, Hargrove, Kohl, Oke, Winsley and Wood - 7. SUBSTITUTE HOUSE BILL NO. 1829, 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.

NOTICE FOR RECONSIDERATION

Having voted on the prevailing side, Senator Snyder served notice that he would move to reconsider the vote by which Substitute House Bill No. 1829 passed the Senate.

SECOND READING

HOUSE BILL NO. 1847, by Representatives Honeyford, McMorris and Dunn

Allowing wine manufacturers that manufacture other liquors to sell the manufacturer's liquor products on its licensed premises.

The bill was read the second time.

MOTION

On motion of Senator Schow, the rules were suspended, House Bill No. 1847 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1847.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1847 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, West, Wojahn and Zarelli - 42. Excused: Senators Bauer, Benton, Hargrove, Kohl, Oke, Winsley and Wood - 7. HOUSE BILL NO. 1847, 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

SUBSTITUTE HOUSE BILL NO. 1865, by House Committee on Education (originally sponsored by Representatives B. Thomas, Johnson, Talcott, Thompson, Radcliff, Mulliken, Hickel, Backlund, Zellinsky and McDonald)

Allowing school districts to contract with other public and private entities.

The bill was read the second time.

MOTIONS

On motion of Senator Schow, the following Committee on Commerce and Labor amendment was adopted:

On page 1, line 17 after "(2)", strike all material through "schools" on line 18, and insert "A contract under subsection (1) of this section may not be made with a religious or sectarian organization or school where the contract would violate the state or federal constitution" On motion of Senator Schow, the rules were suspended, Substitute House Bill No. 1865, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1865, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1865, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 2; Absent, 1; Excused, 6.

Voting yea: Senators Anderson, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Stevens, Strannigan, Swanson, Swecker, Thibaudeau, Winsley, Wojahn and Zarelli - 40. Voting nay: Senators Haugen and Spanel - 2. Absent: Senator West - 1. Excused: Senators Bauer, Benton, Hargrove, Kohl, Oke and Wood - 6. SUBSTITUTE HOUSE BILL NO. 1865, as amended by the Senate, 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

HOUSE BILL NO. 1908, by Representatives B. Thompson and McMorris

Establishing a fire fighting technical review committee.

The bill was read the second time.

MOTION

On motion of Senator Schow, the rules were suspended, House Bill No. 1908 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTIONS

On motion of Senator Sellar, Senator Strannigan was excused.

On motion of Senator Swecker, Senator Hale was excused.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of House Bill No. 1908.

ROLL CALL

The Secretary called the roll on the final passage of House Bill No. 1908 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 1; Excused, 8.

Voting yea: Senators Anderson, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Snyder, Spanel, Stevens, Swanson, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 40. Absent: Senator Sheldon - 1. Excused: Senators Bauer, Benton, Hale, Hargrove, Kohl, Oke, Strannigan and Wood - 8. HOUSE BILL NO. 1908, 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

SUBSTITUTE HOUSE BILL NO. 1875, by House Committee on Health Care (originally sponsored by Representatives Skinner, Carlson, Radcliff, Cody, Murray, Hatfield and O'Brien)

Updating terminology in chapter 18.108 RCW.

The bill was read the second time.

MOTIONS

On motion of Senator Deccio, the following Committee on Health and Long-Term Care amendment was adopted:

Strike everything after the enacting clause and insert the following: "Sec. 1. RCW 18.108.005 and 1987 c 443 s 1 are each amended to read as follows: The legislature finds it necessary to license the practice of massage and massage therapy in order to protect the public health and safety. It is the legislature's intent that only individuals who meet and maintain minimum standards of competence and conduct may provide services to the public. This chapter shall not be construed to require or prohibit individual or group policies or contracts of an insurance carrier, health care service contractor, or health maintenance organization from providing benefits or coverage for services and supplies provided by a person ((registered or certified)) licensed under this chapter. Sec. 2. RCW 18.108.010 and 1991 c 3 s 252 are each amended to read as follows: In this chapter, unless the context otherwise requires, the following meanings shall apply: (1) "Board" means the Washington state board of massage. (2) "Massage" and "massage therapy" mean a health care service involving the external manipulation or pressure of soft tissue for therapeutic purposes. Massage therapy includes ((massage)) techniques such as ((methods of effleurage, petrissage, tapotement,)) tapping, compressions, ((vibration,)) friction, ((nerve stokes, and)) Swedish gymnastics or movements ((either by manual means, as they relate to massage)), gliding, kneading, shaking, and facial or connective tissue stretching, with or without the aids of superficial heat, cold, water, lubricants, or salts. Massage therapy does not include diagnosis or attempts to adjust or manipulate any articulations of the body or spine or mobilization of these articulations by the use of a thrusting force, nor does it include genital manipulation. (3) "Massage practitioner" means an individual licensed under this chapter. (4) "Secretary" means the secretary of health or the secretary's designee. (5) Massage business means the operation of a business where massages are given. Sec. 3. RCW 18.108.050 and 1995 c 198 s 16 are each amended to read as follows: This chapter does not apply to: (1) An individual giving massage to members of his or her immediate family; (2) The practice of a profession by individuals who are licensed, certified, or registered under other laws of this state and who are performing services within their authorized scope of practice; (3) Massage practiced at the athletic department of any institution maintained by the public funds of the state, or any of its political subdivisions; (4) Massage practiced at the athletic department of any school or college approved by the department by rule using recognized national professional standards; (5) Students enrolled in an approved massage school, approved program, or approved apprenticeship program, practicing massage techniques, incidental to the massage school or program and supervised by the approved school or program. Students must identify themselves as a student when performing massage services on members of the public. Students may not be compensated for the massage services they provide; (6) Individuals who have completed a somatic education training program approved by the secretary. NEW SECTION. Sec. 4. The department of health shall monitor the effects, if any, on the public health and safety of the exemption provided in RCW 18.108.050(6). The department shall report to the appropriate committees of the legislature by December 1, 1999, any instances of somatic educators violating RCW 18.108.085(3) with recommendations, if any, for regulatory or statutory changes." On motion of Senator Deccio, the following title amendment was adopted:

On page 1, line 1 of the title, after "RCW;" strike the remainder of the title and insert "amending RCW 18.108.005, 18.108.010, and 18.108.050; and creating a new section."

MOTION

On motion of Senator Deccio, the rules were suspended, Substitute House Bill No. 1875, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Loveland, Senator Swanson was excused.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1875, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1875, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 42; Nays, 0; Absent, 0; Excused, 7.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, Snyder, Spanel, Stevens, Swecker, Thibaudeau, West, Winsley, Wojahn and Zarelli - 42. Excused: Senators Benton, Hale, Hargrove, Oke, Strannigan, Swanson and Wood - 7. SUBSTITUTE HOUSE BILL NO. 1875, as amended by the Senate, 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 Schow: “Thank you, Mr. President. I rise to a point of personal privilege. You know it has been a tough year, particularly a tough week. I want to be leaving. I want to be with my family, but I wouldn't want to leave here without telling you how much your support, your prayers, your flowers, everything that you have done for me and my family, has meant. I am really proud to serve with such a great group of people and what you have done over the last several months will never be forgotten. You will always have a special spot in my heart--for your kindness. I just want to say 'thank you' to each and everyone of you. Thank you.”

SECOND READING

ENGROSSED HOUSE BILL NO. 1940, by Representatives Robertson, Appelwick, Sheahan, Regala, Scott, O'Brien, Ogden, Cooper, Blalock, Costa, Cole, Conway, Cody, Wolfe and Cooke

Integrating ignition interlocks into administrative revocation of drivers' licenses.

The bill was read the second time.

MOTION

On motion of Senator Roach, the rules were suspended, Engrossed House Bill No. 1940 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Swecker, Senator Schow was excused.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed House Bill No. 1940.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed House Bill No. 1940 and the bill passed the Senate by the following vote:

Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44. Excused: Senators Benton, Hargrove, Oke, Schow and Swanson - 5. ENGROSSED HOUSE BILL NO. 1940, 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.

POINT OF INQUIRY

Senator Snyder: “Senator McDonald, today in rules, several members were talking about, 'we'll move the bill along and we will take care of it and iron the differences out in the conference committee.' We haven't passed joint rules yet and I was wondering if we are going to be passing joint rules or if we are going to be going to Reed's and operating under the provisions that rules provide for having conference committees and, under any circumstances, are the conference committees going to be open so the public can view what is happening? Do you have any plans along those lines?”

Senator McDonald: “Well, Senator Snyder, we will follow your very able lead over the last two years. As I remember it, there were not rules adopted to deal with conference committees, other than Reed's Rules. Yes, I anticipate that if there is a conflict that there will be conference committees. As you know, Speaker Ballard has been quite insistent upon them being open conference committees, so if that is so, if and when there are conference committees, I anticipate that they will be open.”

Senator Snyder: “And the procedures will be different than what we have been seeing on the operating of the welfare bill, the budget and so forth?”

Senator McDonald: “Well, actually, I think that the notion of what we were attempting to do--working with the Governor's office and with a number of people in trying to come to a resolution that we can all deal with, was in keeping with a Legislature trying to drive to conclusion, Senator.”

SECOND READING

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1899, by House Committee on Financial Institutions and Insurance (originally sponsored by Representatives Zellinsky, L. Thomas, Carrell, Wolfe, Grant and Sullivan)

Providing standards for life insurance policy illustrations.

The bill was read the second time.

MOTIONS

On motion of Senator Winsley, the following Committee on Financial Institutions, Insurance and Housing amendment was adopted:

On page 11, line 35, after "(3)" insert "(a) Where a computer screen illustration is used that cannot be printed out during use, the producer shall certify in writing on a form provided by the insurer that a computer screen illustration was displayed. Such form shall require the producer to provide, as applicable, the generic name of the policy and any riders illustrated, the guaranteed and non-guaranteed interest rates illustrated, the number of policy years illustrated, the initial death benefit, the premium amount illustrated and the assumed number of years of premiums. On the same form the applicant shall acknowledge that an illustration matching that which was displayed on the computer screen will be provided no later than the time of policy delivery. A copy of this signed form shall be provided to the applicant at the time it is signed. (b) If the policy is issued, a basic illustration conforming to the policy as issued shall be sent with the policy and signed by the policy owner no later than the time the policy is delivered. A copy shall be provided to the policy owner and retained by the insurer. (c) If a computer screen illustration is used that can be printed during use, a copy of that illustration, signed in accordance with this chapter, shall be submitted to the insurer at the time of policy application. A copy shall also be provided to the applicant. (d)" On motion of Senator Winsley, the rules were suspended, Engrossed Substitute House Bill No. 1899, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute House Bill No. 1899, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1899, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44. Excused: Senators Benton, Hargrove, Oke, Schow and Swanson - 5. ENGROSSED SUBSTITUTE HOUSE BILL NO. 1899, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

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

MESSAGES FROM THE HOUSE

April 10, 1997

MR. PRESIDENT:

The House has passed:

SUBSTITUTE SENATE BILL NO. 5056,

SENATE BILL NO. 5111,

SUBSTITUTE SENATE BILL NO. 5121,

SENATE BILL NO. 5139,

SENATE BILL NO. 5181,

SECOND SUBSTITUTE SENATE BILL NO. 5313,

SENATE BILL NO. 5383,

SENATE BILL NO. 5395,

SENATE BILL NO. 5439,

SENATE BILL NO. 5452,

SENATE BILL NO. 5519,

SENATE BILL NO. 5551,

SUBSTITUTE SENATE BILL NO. 5578,

SENATE BILL NO. 5637,

SUBSTITUTE SENATE BILL NO. 5664,

SUBSTITUTE SENATE BILL NO. 5670,

SENATE BILL NO. 5681,

SUBSTITUTE SENATE BILL NO. 5714,

SUBSTITUTE SENATE BILL NO. 5724,

SENATE BILL NO. 5804,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5970,

SUBSTITUTE SENATE BILL NO. 5976,

SENATE BILL NO. 5997,

SENATE BILL NO. 5998, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 10, 1997

MR. PRESIDENT:

The House has passed ENGROSSED HOUSE BILL NO. 2276, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 10, 1997

MR. PRESIDENT:

The House has adopted:

ENGROSSED HOUSE CONCURRENT RESOLUTION NO. 4407,

SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4408,

ENGROSSED SUBSTITUTE HOUSE CONCURRENT RESOLUTION NO. 4409, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

April 11, 1997

MR. PRESIDENT:

The Speaker has signed ENGROSSED HOUSE BILL NO. 3901, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

SIGNED BY THE PRESIDENT

The President has signed:

SUBSTITUTE SENATE BILL NO. 5056,

SENATE BILL NO. 5111,

SUBSTITUTE SENATE BILL NO. 5121,

SENATE BILL NO. 5139,

SENATE BILL NO. 5181,

SECOND SUBSTITUTE SENATE BILL NO. 5313,

SENATE BILL NO. 5383,

SENATE BILL NO. 5395,

SENATE BILL NO. 5439,

SENATE BILL NO. 5452,

SENATE BILL NO. 5519,

SENATE BILL NO. 5551,

SUBSTITUTE SENATE BILL NO. 5578,

SENATE BILL NO. 5637,

SUBSTITUTE SENATE BILL NO. 5664,

SUBSTITUTE SENATE BILL NO. 5670,

SENATE BILL NO. 5681,

SUBSTITUTE SENATE BILL NO. 5714,

SUBSTITUTE SENATE BILL NO. 5724,

SENATE BILL NO. 5804,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5970,

SUBSTITUTE SENATE BILL NO. 5976,

SENATE BILL NO. 5997,

SENATE BILL NO. 5998.

SIGNED BY THE PRESIDENT

The President has signed:

ENGROSSED HOUSE BILL NO. 3901.

MOTION

On motion of Senator Johnson, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING OF HOUSE BILLS

ESHB 2276 by House Committee on Law and Justice (originally sponsored by Representatives Lisk, Huff and Sheahan)

Promoting civil legal services for indigent persons.

HOLD.

EHCR 4407 by Representatives Clements, Chandler and Honeyford

Creating a joint select committee on Yakima Valley water storage.

Referred to Committee on Agriculture and Environment.

SHCR 4408 by House Committee on Natural Resources (originally sponsored by Representatives Thompson, Buck, Sheldon, Sump, Alexander and DeBolt)

Creating the joint select committee on management of state forest lands.

Referred to Committee on Natural Resources and Parks.

ESHCR 4409 by House Committee on Government Reform and Land Use (originally sponsored by Representatives Thompson, Reams, Bush, Mielke, Sherstad, Pennington, Sheldon, Grant, Kastama, McMorris and Mastin)

Establishing a joint select subcommittee on wetlands.

Referred to Committee on Agriculture and Environment.

MOTION

On motion of Senator Johnson, the rules were suspended, Engrossed Substitute House Bill No. 2276 was advanced to second reading and placed on the second reading calendar.

MOTION

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

SECOND READING

SUBSTITUTE HOUSE BILL NO. 1257, by House Committee on Finance (originally sponsored by Representatives DeBolt, Alexander, Pennington, Sheldon, Kessler, Poulsen, McMorris, Mielke, Van Luven, Grant, Crouse, Mastin, Doumit and Hatfield)

Providing tax exemptions and credits for coal-fired thermal electric generating facilities placed in operation before July 1, 1975.

The bill was read the second time.

MOTIONS

On motion of Senator Swecker, the following Committee on Ways and Means amendment was adopted:

Strike everything after the enacting clause and insert the following: "NEW SECTION. Sec. 1. (1) The legislature finds that: (a) Thermal electric generation facilities play an important role in providing jobs for residents of the communities where such plants are located; and (b) Taxes paid by thermal electric generation facilities help to support schools and local and state government operations. (2) It is the intent of the legislature to assist thermal electric generation facilities placed in operation after December 31, 1969, and before July 1, 1975, to update their air pollution control equipment and abate pollution by extending certain tax exemptions and credits so that such plants may continue to play a long-term vital economic role in the communities where they are located. NEW SECTION. Sec. 2. A new section is added to chapter 82.08 RCW to read as follows: (1) For the purposes of this section, "air pollution control facilities" mean any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation. (2) The tax levied by RCW 82.08.020 does not apply to: (a) Sales of tangible personal property to a light and power business, as defined in RCW 82.16.010, for construction or installation of air pollution control facilities at a thermal electric generation facility; or (b) Sales of, cost of, or charges made for labor and services performed in respect to the construction or installation of air pollution control facilities. (3) The exemption provided under this section applies only to sales, costs, or charges: (a) Incurred for air pollution control facilities constructed or installed after the effective date of this act and used in a thermal electric generation facility placed in operation after December 31, 1969, and before July 1, 1975; (b) If the air pollution control facilities are constructed or installed to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70.94 RCW; and (c) For which the purchaser provides the seller with an exemption certificate, signed by the purchaser or purchaser's agent, that includes a description of items or services for which payment is made, the amount of the payment, and such additional information as the department reasonably may require. (4) This section does not apply to sales of tangible personal property purchased or to sales of, costs of, or charges made for labor and services used for maintenance or repairs of pollution control equipment. (5) If production of electricity at a thermal electric generation facility for any calendar year after 2002 and before 2023 falls below a twenty percent annual capacity factor for the generation facility, all or a portion of the tax previously exempted under this section in respect to construction or installation of air pollution control facilities at the generation facility shall be due as follows:

Portion of previously

Year event occurs exempted tax due 2003 100%200495%200590%200685%200780%200875%200970%201065%201160%201255%201350%201445%201540%201635%201730%201825%201920%202015%202110%20225%20230%

(6) Section 12 of this act applies to this section. NEW SECTION. Sec. 3. A new section is added to chapter 82.12 RCW to read as follows: (1) For the purposes of this section, "air pollution control facilities" mean any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation. (2) The provisions of this chapter do not apply in respect to the use of air pollution control facilities installed and used by a light and power business, as defined in RCW 82.16.010, in generating electric power. (3) The exemption provided under this section applies only to air pollution control facilities that are: (a) Constructed or installed after the effective date of this act and used in a thermal electric generation facility placed in operation after December 31, 1969, and before July 1, 1975; and (b) Constructed or installed to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70.94 RCW. (4) This section does not apply to the use of tangible personal property for maintenance or repairs of the pollution control equipment. (5) If production of electricity at a thermal electric generation facility for any calendar year after 2002 and before 2023 falls below a twenty percent annual capacity factor for the generation facility, all or a portion of the tax previously exempted under this section in respect to construction or installation of air pollution control facilities at the generation facility shall be due according to the schedule provided in section 2(5) of this act. (6) Section 12 of this act applies to this section. NEW SECTION. Sec. 4. A new section is added to chapter 82.08 RCW to read as follows: (1) For the purposes of this section: (a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and (b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975. (2) Beginning January 1, 1999, the tax levied by RCW 82.08.020 does not apply to sales of coal used to generate electric power at a generation facility operated by a business if the following conditions are met: (a) The owners must make an application to the department of revenue for a tax exemption; (b) The owners must make a demonstration to the department of ecology that the owners have made reasonable initial progress to install air pollution control facilities to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70.94 RCW; (c) Continued progress must be made on the development of air pollution control facilities to meet the requirements of the permit; and (d) The generation facility must emit no more than ten thousand tons of sulfur dioxide during a previous consecutive twelve-month period. (3) During a consecutive twelve-month period, if the generation facility is found to be in violation of excessive sulfur dioxide emissions from a regional air pollution control authority or the department of ecology, the department of ecology shall notify the department of revenue and the owners of the generation facility shall lose their tax exemption under this section. The owners of a generation facility may reapply for the tax exemption when they have once again met the conditions of subsection (2)(d) of this section. (4) Section 12 of this act applies to this section. NEW SECTION. Sec. 5. A new section is added to chapter 82.08 RCW to read as follows: Any business that has received a tax exemption under section 4 of this act forfeits the exemption if, except for reasons or factors beyond the control of the owners or operator of the thermal electric generation facility, less than seventy percent of the coal consumed at the thermal electric generation facility during the previous calendar year was produced by a mine located in the same county as the facility or in a county contiguous to the county. The department of revenue may reinstate the exemption under section 4 of this act when the owners provide documentation that the seventy-percent requirement has been met during a subsequent calendar year. The definitions in section 4 of this act apply to this section. NEW SECTION. Sec. 6. A new section is added to chapter 82.12 RCW to read as follows: (1) For the purposes of this section: (a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and (b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975. (2) Beginning January 1, 1999, the provisions of this chapter do not apply in respect to the use of coal to generate electric power at a generation facility operated by a business if the following conditions are met: (a) The owners must make an application to the department of revenue for a tax exemption; (b) The owners must make a demonstration to the department of ecology that the owners have made reasonable initial progress to install air pollution control facilities to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70.94 RCW; (c) Continued progress must be made on the development of air pollution control facilities to meet the requirements of the permit; and (d) The generation facility must emit no more than ten thousand tons of sulfur dioxide during a previous consecutive twelve-month period. (3) During a consecutive twelve-month period, if the generation facility is found to be in violation of excessive sulfur dioxide emissions from a regional air pollution control authority or the department of ecology, the department of ecology shall notify the department of revenue and the owners of the generation facility shall lose their tax exemption under this section. The owners of a generation facility may reapply for the tax exemption when they have once again met the conditions of subsection (2)(d) of this section. (4) Section 12 of this act applies to this section. NEW SECTION. Sec. 7. A new section is added to chapter 82.12 RCW to read as follows: Any business that has received a tax exemption under section 6 of this act forfeits the exemption if, except for reasons or factors beyond the control of the owners or operator of the thermal electric generation facility, less than seventy percent of the coal consumed at the thermal electric generation facility during the previous calendar year was produced by a mine located in the same county as the facility or in a county contiguous to the county. The department of revenue may reinstate the exemption under section 6 of this act when the owners provide documentation that the seventy-percent requirement has been met during a subsequent calendar year. The definitions in section 6 of this act apply to this section. Sec. 8. 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, ((and)) the self-insurance revolving fund, and the sulfur dioxide abatement account. 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. 9. A new section is added to chapter 82.32 RCW to read as follows: An amount equal to all sales and use taxes paid under chapters 82.08, 82.12, and 82.14 RCW, that were obtained from the sales of coal to, or use of coal by, a business for use at a generation facility, and that meet the requirements of section 10 of this act, shall be deposited in the sulfur dioxide abatement account under section 10 of this act. NEW SECTION. Sec. 10. A new section is added to chapter 70.94 RCW to read as follows: (1) The sulfur dioxide abatement account is created. All receipts from subsection (2) of this section must be deposited in the account. Expenditures in the account may be used only for the purposes of subsection (3) of this section. Only the director of revenue 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. (2) Upon application by the owners of a generation facility, the department of ecology shall make a determination of whether the owners are making initial progress in the construction of air pollution control facilities. Evidence of initial progress may include, but is not limited to, engineering work, agreements to proceed with construction, contracts to purchase, or contracts for construction of air pollution control facilities. However, if the owners' progress is impeded due to actions caused by regulatory delays or by defensive litigation, certification of initial progress may not be withheld. Upon certification of initial progress by the department of ecology and after January 1, 1999, an amount equal to all sales and use taxes paid under chapters 82.08, 82.12, and 82.14 RCW, that were obtained from the sales of coal to, or use of coal by, a business for use at a generation facility shall be deposited in the account under section 9 of this act. By June 1st of each year during construction of the air pollution control facilities and during the verification period required in sections 4(2)(d) and 6(2)(d) of this act, the department of ecology shall make an assessment regarding the continued progress of the pollution control facilities. Evidence of continued progress may include, but is not limited to, acquisition of construction material, visible progress on construction, or other actions that have occurred that would verify progress under general construction time tables. The treasurer shall continue to deposit an amount equal to the tax revenues to the sulfur dioxide abatement account unless the department of ecology fails to certify that reasonable progress has been made during the previous year. The operator of a generation facility shall file documentation accompanying its combined monthly excise tax return that identifies all sales and use tax payments made by the owners for coal used at the generation facility during the reporting period. (3) When a generation facility emits no more than ten thousand tons of sulfur dioxide during a consecutive twelve-month period, the department of ecology shall certify this to the department of revenue and the state treasurer by the end of the following month. Within thirty days of receipt of certification under this subsection, the department of revenue shall approve the tax exemption application and the director or the director's designee shall authorize the release of any moneys in the sulfur dioxide abatement account to the operator of the generation facility. The operator shall disburse the payment among the owners of record according to the terms of their contractual agreement. (4)(a) If the department of revenue has not approved a tax exemption under sections 4 and 6 of this act by March 1, 2005, any moneys in the sulfur dioxide abatement account shall be transferred to the general fund and the appropriate local governments in accordance with chapter 82.14 RCW, and the sulfur dioxide abatement account shall cease to exist after March 1, 2005. (b) The dates in (a) of this subsection must be extended if the owners of a generation facility have experienced difficulties in complying with this section, or sections 4 through 7 and 9 of this act, due to actions caused by regulatory delays or by defensive litigation. (5) For the purposes of this section: (a) "Air pollution control facilities" means any treatment works, control devices and disposal systems, machinery, equipment, structure, property, property improvements and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation; and (b) "Generation facility" means a coal-fired thermal electric generation facility placed in operation after December 3, 1969, and before July 1, 1975. NEW SECTION. Sec. 11. A new section is added to chapter 84.36 RCW to read as follows: (1) Air pollution control equipment constructed or installed after the effective date of this act, by businesses engaged in the generation of electric energy at thermal electric generation facilities first placed in operation after December 31, 1969, and before July 1, 1975, shall be exempt from property taxation. The owners shall maintain the records in such a manner that the annual beginning and ending asset balance of the pollution control facilities and depreciation method can be identified. (2) For the purposes of this section, "air pollution control equipment" means any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation. (3) Section 12 of this act applies to this section. NEW SECTION. Sec. 12. A new section is added to chapter 82.32 RCW to read as follows: If a business is allowed an exemption under section 2, 3, 4, 6, or 11 of this act, and the business ceases operation of the facility for which the exemption is allowed, the business shall deposit into the displaced workers account established in section 13 of this act an amount equal to the fair market value of one-quarter of the total sulfur dioxide allowances authorized by federal law available to the facility at the time of cessation of operation of the generation facility as if the allowances were sold for a period of ten years following the time of cessation of operation of the generation facility. This section expires December 31, 2015. NEW SECTION. Sec. 13. A new section is added to chapter 50.12 RCW to read as follows: The displaced workers account is established. All moneys from section 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 only to provide for compensation and retraining of displaced workers of the thermal electric generation facility and of the coal mine that supplied coal to the facility. The benefits from the account are in addition to all other compensation and retraining benefits to which the displaced workers are entitled under existing state law. The employment security department shall administer the distribution of moneys from the account. Sec. 14. RCW 80.04.130 and 1993 c 311 s 1 are each amended to read as follows: (1) Whenever any public service company shall file with the commission any schedule, classification, rule or regulation, the effect of which is to change any rate, charge, rental or toll theretofore charged, the commission shall have power, either upon its own motion or upon complaint, upon notice, to enter upon a hearing concerning such proposed change and the reasonableness and justness thereof, and pending such hearing and the decision thereon the commission may suspend the operation of such rate, charge, rental or toll for a period not exceeding ten months from the time the same would otherwise go into effect, and after a full hearing the commission may make such order in reference thereto as would be provided in a hearing initiated after the same had become effective. The commission shall not suspend a tariff that makes a decrease in a rate, charge, rental, or toll filed by a telecommunications company pending investigation of the fairness, justness, and reasonableness of the decrease when the filing does not contain any offsetting increase to another rate, charge, rental, or toll and the filing company agrees to not file for an increase to any rate, charge, rental, or toll to recover the revenue deficit that results from the decrease for a period of one year. The filing company shall file with any decrease sufficient information as the commission by rule may require to demonstrate the decreased rate, charge, rental, or toll is above the long run incremental cost of the service. A tariff decrease that results in a rate that is below long run incremental cost, or is contrary to commission rule or order, or the requirements of this chapter, shall be rejected for filing and returned to the company. The commission may prescribe a different rate to be effective on the prospective date stated in its final order after its investigation, if it concludes based on the record that the originally filed and effective rate is unjust, unfair, or unreasonable. For the purposes of this section, tariffs for the following telecommunications services, that temporarily waive or reduce charges for existing or new subscribers for a period not to exceed sixty days in order to promote the use of the services shall be considered tariffs that decrease rates, charges, rentals, or tolls: (a) Custom calling service; (b) Second access lines; or (c) Other services the commission specifies by rule. The commission may suspend any promotional tariff other than those listed in (a) through (c) of this subsection. The commission may suspend the initial tariff filing of any water company removed from and later subject to commission jurisdiction because of the number of customers or the average annual gross revenue per customer provisions of RCW 80.04.010. The commission may allow temporary rates during the suspension period. These rates shall not exceed the rates charged when the company was last regulated. Upon a showing of good cause by the company, the commission may establish a different level of temporary rates. (2) At any hearing involving any change in any schedule, classification, rule or regulation the effect of which is to increase any rate, charge, rental or toll theretofore charged, the burden of proof to show that such increase is just and reasonable shall be upon the public service company. (3) The implementation of mandatory local measured telecommunications service is a major policy change in available telecommunications service. The commission shall not accept for filing or approve, prior to June 1, 1998, a tariff filed by a telecommunications company which imposes mandatory local measured service on any customer or class of customers, except that, upon finding that it is in the public interest, the commission may accept for filing and approve a tariff that imposes mandatory measured service for a telecommunications company's extended area service or foreign exchange service. This subsection does not apply to land, air, or marine mobile service, or to pay telephone service, or to any service which has been traditionally offered on a measured service basis. (4) The implementation of Washington telephone assistance program service is a major policy change in available telecommunications service. The implementation of Washington telephone assistance program service will aid in achieving the stated goal of universal telephone service. (5) If a utility claims a sales or use tax exemption on the pollution control equipment for an electrical generation facility and abandons the generation facility before the pollution control equipment is fully depreciated, any tariff filing for a rate increase to recover abandonment costs for the pollution control equipment shall be considered unjust and unreasonable for the purposes of this section. NEW SECTION. Sec. 15. The department of revenue and the department of ecology may adopt rules to implement this act. NEW SECTION. Sec. 16. 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. 17. 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." On motion of Senator Swecker, the following title amendment was adopted:

On page 1, line 2 of the title, after "1975;" strike the remainder of the title and insert "amending RCW 43.79A.040 and 80.04.130; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding new sections to chapter 82.32 RCW; adding a new section to chapter 70.94 RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 50.12 RCW; creating new sections; providing an expiration date; and declaring an emergency."

MOTION

On motion of Senator Swecker, the rules were suspended, Substitute House Bill No. 1257, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Debate ensued.

The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute House Bill No. 1257, as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 1257, as amended by the Senate, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

Voting yea: Senators Anderson, Bauer, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Sellar, Sheldon, Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 44. Excused: Senators Benton, Hargrove, Oke, Schow and Swanson - 5. SUBSTITUTE HOUSE BILL NO. 1257, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

MOTION

At 3:34 p.m., on motion of Senator Johnson, the Senate adjourned until 9:00 a.m., Monday, April 14, 1997.

BRAD OWEN, President of the Senate

MIKE O'CONNELL, Secretary of the Senate