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FIFTIETH DAY

MORNING SESSION

House Chamber, Olympia, Monday, March 2, 1998

The House was called to order at 9:55 a.m. by the Speaker.

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

MESSAGES FROM THE SENATE

February 27, 1998

Mr. Speaker:

The Senate has passed:

HOUSE BILL NO. 1082,

HOUSE BILL NO. 1117,

HOUSE BILL NO. 2717,

SUBSTITUTE HOUSE BILL NO. 3056,

and the same are herewith transmitted.

Susan Carlson, Deputy Secretary

February 27, 1998

Mr. Speaker:

The Senate has passed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6456,

and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

February 27, 1998

Mr. Speaker:

The Senate has adopted the Senate Law & Justice Committee amendment, but failed to pass HOUSE BILL NO. 1181, and the same is herewith transmitted.

Susan Carlson, Deputy Secretary

INTRODUCTIONS AND FIRST READING

HB 3130 by Representatives Tokuda, Van Luven, Ballasiotes, Skinner, Hankins, Grant, Kenney, Mason, Veloria, Fisher, Butler, Doumit, Dickerson, Regala, Conway, Wolfe, Ogden, Keiser, Cody, Linville, Morris, Cole, Scott, Anderson, Hatfield, Romero, Murray, Gardner, Eickmeyer, Kessler, Appelwick, Chopp, Poulsen, Cooper, Costa, Wood, O'Brien, Constantine, Quall and H. Sommers

AN ACT Relating to ensuring equal opportunity without quotas in public employment, education, and contracting; adding a new section to chapter 49.60 RCW; and providing for submission of this act to a vote of the people.

Held on first reading 2/27/98.

HB 3133 by Representatives Chandler and Linville

AN ACT Relating to watershed management; amending RCW 90.82.005, 90.82.010, 90.82.020, 90.82.040, and 90.03.345; adding new sections to chapter 90.82 RCW; adding a new section to chapter 34.05 RCW; creating new sections; and declaring an emergency.

HB 3134 by Representatives Skinner, Cody and Conway

AN ACT Relating to creation of the office of women's health; adding a new section to chapter 41.06 RCW; and adding a new chapter to Title 43 RCW.

Referred to Committee on Health Care.

ESSB 6456 by Senate Committee on Transportation (originally sponsored by Senators Prince, Haugen, Wood, Kline and Horn; by request of Governor Locke)

Funding transportation.

Referred to Committee on Transportation Policy & Budget.

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

There being no objection, the rules were suspended, and House Bill No. 3133 was advanced to second reading.

REPORTS OF STANDING COMMITTEES

March 2, 1998

SSB 5309 Prime Sponsor, Senate Committee on Ways & Means: Providing excise tax exemptions related to horses. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Boldt; Butler; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

MINORITY recommendation: Do not pass. Signed by Representative Dickerson, Assistant Ranking Minority Member.

Voting Yea: Representatives B. Thomas, Carrell, Dunshee, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representative Dickerson.

Excused: Representatives Mulliken and Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SB 5631 Prime Sponsor, Senator Wood: Exempting education loan guarantee services from business and occupation tax. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Boldt; Butler; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

MINORITY recommendation: Without recommendation. Signed by Representative Carrell, Vice Chairman.

Voting Yea: Representatives B. Thomas, Dunshee, Dickerson, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representatives Carrell, Mulliken and Boldt.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 5703 Prime Sponsor, Senate Committee on Agriculture & Environment: Concerning a water right for the beneficial use of water. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Agriculture & Ecology (For amendment see Journal 47 Day, February 27, 1998) as further amended by Committee on Appropriations.

On page 5, after line 22, insert the following:

"NEW SECTION. Sec. 1. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; Doumit, Assistant Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives H. Sommers, Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Kenney; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, Doumit, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives H. Sommers, Gombosky, Chopp, Cody, Keiser, Kenney, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 5760 Prime Sponsor, Senate Committee on Human Services & Corrections: Authorizing courts to order evaluation and treatment of mentally ill offenders. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Criminal Justice & Corrections (For amendment see Journal 47 Day, February 27, 1998) as further amended by Committee on Appropriations.

On page 19, after line 2, insert the following:

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Gombosky, Benson, Carlson, Chopp, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kenney, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, Regala, D. Schmidt, Sehlin, Sheahan, Talcott and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

ESSB 6050 Prime Sponsor, Senate Committee on Ways & Means: Providing tax exemptions for state route number 16 corridor improvements constructed under chapter 47.46 RCW. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Conway; Kastama; Morris; Pennington and Thompson.

MINORITY recommendation: Do not pass. Signed by Representatives Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Boldt; Butler; Mason and Schoesler.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Conway, Kastama, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representatives Dunshee, Dickerson, Boldt, Butler and Mason.

Excused: Representative Van Luven.

Passed to Committee on Transportation Policy & Budget.

March 2, 1998

SSB 6077 Prime Sponsor, Senate Committee on Ways & Means: Exempting from business and occupation tax nonprofit hospice agencies. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Boldt; Butler; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6113 Prime Sponsor, Senator Wood: Exempting from taxation property of nonprofit organizations providing medical research or training of medical personnel. Reported by Committee on Finance

MAJORITY recommendation: Do pass as amended.

On page 1, line 13, after "taxation." insert "If the real or personal property is leased, the benefit of the exemption shall inure to the nonprofit corporation or association."

On page 1, after line 16, insert the following:

"Sec. 2. RCW 84.36.805 and 1997 c 156 s 8 and 1997 c 143 s 3 are each reenacted and amended to read as follows:

In order to be exempt pursuant to RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, 84.36.480, 84.36.550, and 84.36.046, the nonprofit organizations, associations or corporations shall satisfy the following conditions:

(1) The property is used exclusively for the actual operation of the activity for which exemption is granted, unless otherwise provided, and does not exceed an amount reasonably necessary for that purpose, except:

(a) The loan or rental of the property does not subject the property to tax if:

(i) The rents and donations received for the use of the portion of the property are reasonable and do not exceed the maintenance and operation expenses attributable to the portion of the property loaned or rented; and

(ii) Except for the exemptions under RCW 84.36.030(4) and 84.36.037, the property would be exempt from tax if owned by the organization to which it is loaned or rented;

(b) The use of the property for fund-raising activities does not subject the property to tax if the fund-raising activities are consistent with the purposes for which the exemption is granted;

(2) The property is irrevocably dedicated to the purpose for which exemption has been granted, and on the liquidation, dissolution, or abandonment by said organization, association, or corporation, said property will not inure directly or indirectly to the benefit of any shareholder or individual, except a nonprofit organization, association, or corporation which too would be entitled to property tax exemption. This property need not be irrevocably dedicated if it is leased or rented to those qualified for exemption pursuant to RCW 84.36.035, 84.36.040, 84.36.041, 84.36.043, 84.36.045, or 84.36.046 or those qualified for exemption as an association engaged in the production or performance of musical, dance, artistic, dramatic, or literary works pursuant to RCW 84.36.060, but only if under the terms of the lease or rental agreement the nonprofit organization, association, or corporation receives the benefit of the exemption;

(3) The facilities and services are available to all regardless of race, color, national origin or ancestry;

(4) The organization, association, or corporation is duly licensed or certified where such licensing or certification is required by law or regulation;

(5) Property sold to organizations, associations, or corporations with an option to be repurchased by the seller shall not qualify for exempt status;

(6) The director of the department of revenue shall have access to its books in order to determine whether such organization, association, or corporation is exempt from taxes within the intent of RCW 84.36.030, 84.36.035, 84.36.037, 84.36.040, 84.36.041, 84.36.043, 84.36.045, 84.36.047, 84.36.050, 84.36.060, 84.36.350, 84.36.480, and 84.36.046."

Renumber the remaining sections consecutively and correct internal references accordingly.

Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Butler; Conway; Kastama; Mason; Morris; Pennington and Thompson.

MINORITY recommendation: Do not pass. Signed by Representatives Boldt and Schoesler.

Voting Yea: Representatives B. Thomas, Carrell, Dunshee, Dickerson, Conway, Kastama, Morris and Pennington.

Voting Nay: Representatives Mulliken, Boldt and Schoesler.

Excused: Representatives Butler, Mason, Thompson and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6114 Prime Sponsor, Senate Committee on Natural Resources & Parks: Preventing the spread of zebra mussel and European green crab. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 3, beginning on line 16, strike all of sections 5 and 6

Renumber the remaining sections consecutively and correct internal references accordingly.

On page 4, after line 2, insert the following:

"NEW SECTION. Sec. 2. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

ESB 6139 Prime Sponsor, Senator Oke: Increasing penalties for manufacture and delivery of amphetamine. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 10, after line 33, insert the following:

"NEW SECTION. Sec. 3. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title accordingly.

Passed to Rules Committee for second reading.

February 28, 1998

ESB 6142 Prime Sponsor, Senator Kline: Imposing administrative license suspensions on first-time DUI offenders. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Law & Justice (For amendment see Journal 47 Day, February 27, 1998) as further amended by Committee on Appropriations.

On page 11, after line 2, insert the following:

Correct the title.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Gombosky, Benson, Carlson, Chopp, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, Regala, D. Schmidt, Sehlin, Sheahan, Talcott and Tokuda.

Voting Nay: Representative Kenney.

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6156 Prime Sponsor, Senate Committee on Ways & Means: Studying methods for calculating water-dependent lease rates on state-owned aquatic lands. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, line 7, after "revenue;" strike "and"

On page 2, line 8, after "(f)" insert "Evaluate the impacts of water-dependent rates on economic development in economically distressed counties; and

(g)"

On page 4, after line 17, insert the following:

"NEW SECTION. Sec. 4. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6161 Prime Sponsor, Senate Committee on Agriculture & Environment: Creating a dairy nutrient management program. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Agriculture & Ecology (For amendment see Journal 47th Day, February 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6165 Prime Sponsor, Senate Committee on Law & Justice: Directing mandatory ignition interlocks for DUI offenders. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, line 15, strike "permanent, lifetime restriction" and insert "period of not less than ten years"

On page 9, after line 33, insert the following:

"NEW SECTION. Sec. 6. The legislature finds that driving is a privilege and that the state may restrict that privilege in the interests of public safety. One such reasonable restriction is requiring certain individuals, if they choose to drive, to drive only vehicles equipped with ignition interlock devices. The legislature further finds that the costs of these devices are minimal and are affordable. It is the intent of the legislature that these devices be paid for by the drivers using them and that neither the state nor entities of local government provide any public funding for this purpose."

Renumber the following sections consecutively.

On page 10, after line 2, insert the following:

"NEW SECTION. Sec. 7. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Beginning on page 9, line 34, strike all of section 6

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6166 Prime Sponsor, Senate Committee on Law & Justice: Increasing penalties for drunk driving. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Law & Justice (For amendment see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 16, after line 23 of the amendment, insert the following:

"NEW SECTION. Sec. 6. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void.

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6168 Prime Sponsor, Senate Committee on Ways & Means: Developing housing for temporary workers. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass without amendment by Committee on Trade & Economic Development. Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Kenney; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives Doumit, Gombosky, Chopp, Cody, Keiser, Kenney, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

2SSB 6190 Prime Sponsor, Senate Committee on Transportation: Strengthening laws on disabled persons' parking permits. Reported by Committee on Transportation Policy & Budget

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.16.381 and 1995 c 384 s 1 are each amended to read as follows:

(1) The director shall grant special parking privileges to any person who has a disability that limits or impairs the ability to walk and meets one of the following criteria, as determined by a licensed physician:

(a) Cannot walk two hundred feet without stopping to rest;

(b) Is severely limited in ability to walk due to arthritic, neurological, or orthopedic condition;

(c) Is so severely disabled, that the person cannot walk without the use of or assistance from a brace, cane, another person, prosthetic device, wheelchair, or other assistive device;

(d) Uses portable oxygen;

(e) Is restricted by lung disease to such an extent that forced expiratory respiratory volume, when measured by spirometry is less than one liter per second or the arterial oxygen tension is less than sixty mm/hg on room air at rest;

(f) Impairment by cardiovascular disease or cardiac condition to the extent that the person's functional limitations are classified as class III or IV under standards accepted by the American Heart Association; or

(g) Has a disability resulting from an acute sensitivity to automobile emissions which limits or impairs the ability to walk. The personal physician of the applicant shall document that the disability is comparable in severity to the others listed in this subsection.

(2) The applications for disabled parking permits and temporary disabled parking permits are official state documents. Knowingly providing false information in conjunction with the application is a gross misdemeanor punishable under chapter 9A.20 RCW. The following statement must appear on each application form immediately below the physician's signature and immediately below the applicant's signature: "A disabled parking permit may be issued only for a medical necessity that severely affects mobility (RCW 46.16.381). Knowingly providing false information on this application is a gross misdemeanor. The penalty is up to one year in jail and a fine of up to $5,000 or both."

(3) Those individuals who have one or both legs amputated and do not use a prosthetic device are exempt from the physician certification requirement necessary to receive special parking privileges. In order to qualify for special parking privileges, leg amputees must apply at a licensing office and the licensing office supervisor must visually confirm the amputation. Based on this confirmation, the certification of the person's disability is satisfied.

(4) Persons who qualify for special parking privileges are entitled to receive from the department of licensing a removable windshield placard bearing the international symbol of access and an individual serial number, along with a special identification card bearing the photograph and name of the person to whom the placard is issued, and the placard's serial number. The department shall design the placard to be displayed when the vehicle is parked by suspending it from the rearview mirror, or in the absence of a rearview mirror the card may be displayed on the dashboard of any vehicle used to transport the disabled person. Instead of regular motor vehicle license plates, disabled persons are entitled to receive special license plates bearing the international symbol of access for one vehicle registered in the disabled person's name. Disabled persons who are not issued the special license plates are entitled to receive a second special placard upon submitting a written request to the department. Persons who have been issued the parking privileges and who are using a vehicle or are riding in a vehicle displaying the special license plates or placard may park in places reserved for mobility disabled persons. The director shall adopt rules providing for the issuance of special placards and license plates to public transportation authorities, nursing homes licensed under chapter 18.51 RCW, boarding homes licensed under chapter 18.20 RCW, senior citizen centers, private nonprofit agencies as defined in chapter 24.03 RCW, and vehicles registered with the department as cabulances that regularly transport disabled persons who have been determined eligible for special parking privileges provided under this section. The director may issue special license plates for a vehicle registered in the name of the public transportation authority, nursing home, boarding homes, senior citizen center, private nonprofit agency, or cabulance service if the vehicle is primarily used to transport persons with disabilities described in this section. Public transportation authorities, nursing homes, boarding homes, senior citizen centers, private nonprofit agencies, and cabulance services are responsible for insuring that the special placards and license plates are not used improperly and are responsible for all fines and penalties for improper use.

(((3))) (5) Whenever the disabled person transfers or assigns his or her interest in the vehicle, the special license plates shall be removed from the motor vehicle. If another vehicle is acquired by the disabled person and the vehicle owner qualifies for a special plate, the plate shall be attached to the vehicle, and the director shall be immediately notified of the transfer of the plate. If another vehicle is not acquired by the disabled person, the removed plate shall be immediately surrendered to the director.

(((4))) (6) The special license plate shall be renewed in the same manner and at the time required for the renewal of regular motor vehicle license plates under this chapter. No special license plate may be issued to a person who is temporarily disabled. A person who has a condition expected to improve within six months may be issued a temporary placard for a period not to exceed six months. ((The director may issue a second temporary placard during that period if requested by the person who is temporarily disabled.)) If the condition exists after six months a new temporary placard shall be issued upon receipt of a new certification from the disabled person's physician. The permanent parking placard and photo identification card of a disabled person shall be renewed((, when)) at least every five years, as required by the director, by satisfactory proof of the right to continued use of the privileges. In the event of the permit holder's death, the parking placard and photo identification card must be immediately surrendered to the department. The department shall match and purge its disabled permit data base with available death record information at least every twelve months.

(((5))) (7) Each person who has been issued a permanent disabled parking permit on or before July 1, 1998, must renew the permit no later than July 1, 2003, subject to a schedule to be set by the department, or the permit will expire.

(8) Additional fees shall not be charged for the issuance of the special placards or the photo identification cards. No additional fee may be charged for the issuance of the special license plates except the regular motor vehicle registration fee and any other fees and taxes required to be paid upon registration of a motor vehicle.

(((6))) (9) Any unauthorized use of the special placard ((or the)), special license plate, or photo identification card is a ((misdemeanor)) traffic infraction with a monetary penalty of two hundred fifty dollars.

(((7))) (10) It is a parking infraction, with a monetary penalty of one hundred seventy-five dollars for a person to make inaccessible the access aisle located next to a space reserved for physically disabled persons. The clerk of the court shall report all violations related to this subsection to the department.

(11) It is a parking infraction, with a monetary penalty of one hundred seventy-five dollars for any person to park a vehicle in a parking place provided on private property without charge or on public property reserved for physically disabled persons without a special license plate or placard. If a person is charged with a violation, the person shall not be determined to have committed an infraction if the person produces in court or before the court appearance the special license plate or placard required under this section. A local jurisdiction providing nonmetered, on-street parking places reserved for physically disabled persons may impose by ordinance time restrictions of no less than four hours on the use of these parking places. A local jurisdiction may impose by ordinance time restrictions of no less than four hours on the use of nonreserved, on-street parking spaces by vehicles displaying the special parking placards. All time restrictions must be clearly posted.

(((8))) (12) The ((penalty)) penalties imposed under subsections (((7))) (10) and (11) of this section shall be used by that local jurisdiction exclusively for law enforcement. The court may also impose an additional penalty sufficient to reimburse the local jurisdiction for any costs it may have incurred in removal and storage of the improperly parked vehicle.

(((9))) (13) Except as provided by subsection (2) of this section, it is a ((misdemeanor)) traffic infraction with a monetary penalty of two hundred fifty dollars for any person ((to)) willfully to obtain a special license plate ((or)), placard, or photo identification card in a manner other than that established under this section.

(14)(a) A law enforcement agency authorized to enforce parking laws may appoint volunteers to issue notices of infractions for violations of this section or RCW 46.61.581. Volunteers must be at least twenty-one years of age. The law enforcement agency appointing volunteers may establish any other qualifications the agency deems desirable.

(b) An agency appointing volunteers under this section must provide training to the volunteers before authorizing them to issue notices of infractions.

(c) A notice of infraction issued by a volunteer appointed under this subsection has the same force and effect as a notice of infraction issued by a police officer for the same offense.

(d) A police officer or a volunteer may request a person to show the person's photo identification card or special parking placard when investigating the possibility of a violation of this section. If the request is refused, the person in charge of the vehicle may be issued a notice of infraction for a violation of this section.

(e) A police officer or a volunteer may confiscate the special parking placard and photo identification card from a person who fraudulently obtains or uses the placard or photo identification card.

(15) For second or subsequent violations of this section, in addition to a monetary fine, the violator must complete a minimum of forty hours of:

(a) Community service for a nonprofit organization that serves the disabled community or persons having disabling diseases; or

(b) Any other community service that may sensitize the violator to the needs and obstacles faced by persons who have disabilities.

Sec. 2. RCW 46.61.581 and 1988 c 74 s 1 are each amended to read as follows:

A parking space or stall for a disabled person shall be indicated by a vertical sign, between thirty-six and eighty-four inches off the ground, with the international symbol of access, whose colors are white on a blue background, described under RCW 70.92.120 and the notice "State disabled parking permit required."

Failure of the person owning or controlling the property where required parking spaces are located to erect and maintain the sign is a class ((4)) 2 civil infraction under chapter 7.80 RCW for each parking space that should be so designated. The person owning or controlling the property where the required parking spaces are located shall ensure that the parking spaces are not blocked or made inaccessible, and failure to do so is a class 2 civil infraction.

Sec. 3. RCW 46.63.020 and 1997 c 229 s 13 and 1997 c 66 s 8 are each reenacted and amended to read as follows:

Failure to perform any act required or the performance of any act prohibited by this title or an equivalent administrative regulation or local law, ordinance, regulation, or resolution relating to traffic including parking, standing, stopping, and pedestrian offenses, is designated as a traffic infraction and may not be classified as a criminal offense, except for an offense contained in the following provisions of this title or a violation of an equivalent administrative regulation or local law, ordinance, regulation, or resolution:

(1) RCW 46.09.120(2) relating to the operation of a nonhighway vehicle while under the influence of intoxicating liquor or a controlled substance;

(2) RCW 46.09.130 relating to operation of nonhighway vehicles;

(3) RCW 46.10.090(2) relating to the operation of a snowmobile while under the influence of intoxicating liquor or narcotics or habit-forming drugs or in a manner endangering the person of another;

(4) RCW 46.10.130 relating to the operation of snowmobiles;

(5) Chapter 46.12 RCW relating to certificates of ownership and registration and markings indicating that a vehicle has been destroyed or declared a total loss;

(6) RCW 46.16.010 relating to initial registration of motor vehicles;

(7) RCW 46.16.011 relating to permitting unauthorized persons to drive;

(8) RCW 46.16.160 relating to vehicle trip permits;

(9) RCW 46.16.381 (((6) or (9))) (2) relating to ((unauthorized use or acquisition of)) knowingly providing false information in conjunction with an application for a special placard or license plate for disabled persons' parking;

(10) RCW 46.20.005 relating to driving without a valid driver's license;

(11) RCW 46.20.091 relating to false statements regarding a driver's license or instruction permit;

(12) RCW 46.20.336 relating to the unlawful possession and use of a driver's license;

(13) RCW 46.20.342 relating to driving with a suspended or revoked license or status;

(14) RCW 46.20.410 relating to the violation of restrictions of an occupational driver's license;

(15) RCW 46.20.420 relating to the operation of a motor vehicle with a suspended or revoked license;

(16) RCW 46.20.740 relating to operation of a motor vehicle without an ignition interlock device in violation of a license notation that the device is required;

(17) RCW 46.20.750 relating to assisting another person to start a vehicle equipped with an ignition interlock device;

(18) RCW 46.25.170 relating to commercial driver's licenses;

(19) Chapter 46.29 RCW relating to financial responsibility;

(20) RCW 46.30.040 relating to providing false evidence of financial responsibility;

(21) RCW 46.37.435 relating to wrongful installation of sunscreening material;

(22) RCW 46.44.180 relating to operation of mobile home pilot vehicles;

(23) RCW 46.48.175 relating to the transportation of dangerous articles;

(24) RCW 46.52.010 relating to duty on striking an unattended car or other property;

(25) RCW 46.52.020 relating to duty in case of injury to or death of a person or damage to an attended vehicle;

(26) RCW 46.52.090 relating to reports by repairmen, storagemen, and appraisers;

(27) RCW 46.52.100 relating to driving under the influence of liquor or drugs;

(28) RCW 46.52.130 relating to confidentiality of the driving record to be furnished to an insurance company, an employer, and an alcohol/drug assessment or treatment agency;

(29) RCW 46.55.020 relating to engaging in the activities of a registered tow truck operator without a registration certificate;

(30) RCW 46.55.035 relating to prohibited practices by tow truck operators;

(31) RCW 46.61.015 relating to obedience to police officers, flagmen, or fire fighters;

(32) RCW 46.61.020 relating to refusal to give information to or cooperate with an officer;

(33) RCW 46.61.022 relating to failure to stop and give identification to an officer;

(34) RCW 46.61.024 relating to attempting to elude pursuing police vehicles;

(35) RCW 46.61.500 relating to reckless driving;

(36) RCW 46.61.502 and 46.61.504 relating to persons under the influence of intoxicating liquor or drugs;

(37) RCW 46.61.503 relating to a person under age twenty-one driving a motor vehicle after consuming alcohol;

(38) RCW 46.61.520 relating to vehicular homicide by motor vehicle;

(39) RCW 46.61.522 relating to vehicular assault;

(40) RCW 46.61.5249 relating to first degree negligent driving;

(41) RCW 46.61.527(4) relating to reckless endangerment of roadway workers;

(42) RCW 46.61.530 relating to racing of vehicles on highways;

(43) RCW 46.61.685 relating to leaving children in an unattended vehicle with the motor running;

(44) RCW 46.64.010 relating to unlawful cancellation of or attempt to cancel a traffic citation;

(45) RCW 46.64.048 relating to attempting, aiding, abetting, coercing, and committing crimes;

(46) Chapter 46.65 RCW relating to habitual traffic offenders;

(47) RCW 46.68.010 relating to false statements made to obtain a refund;

(48) Chapter 46.70 RCW relating to unfair motor vehicle business practices, except where that chapter provides for the assessment of monetary penalties of a civil nature;

(49) Chapter 46.72 RCW relating to the transportation of passengers in for hire vehicles;

(50) RCW 46.72A.060 relating to limousine carrier insurance;

(51) RCW 46.72A.070 relating to operation of a limousine without a vehicle certificate;

(52) RCW 46.72A.080 relating to false advertising by a limousine carrier;

(53) Chapter 46.80 RCW relating to motor vehicle wreckers;

(54) Chapter 46.82 RCW relating to driver's training schools;

(55) RCW 46.87.260 relating to alteration or forgery of a cab card, letter of authority, or other temporary authority issued under chapter 46.87 RCW;

(56) RCW 46.87.290 relating to operation of an unregistered or unlicensed vehicle under chapter 46.87 RCW."

Correct the title.

Signed by Representatives K. Schmidt, Chairman; Hankins, Vice Chairman; Mielke, Vice Chairman; Mitchell, Vice Chairman; Fisher, Ranking Minority Member; Cooper, Assistant Ranking Minority Member; Backlund; Cairnes; Chandler; Constantine; DeBolt; Gardner; Hatfield; Johnson; McCune; Murray; O'Brien; Ogden; Radcliff; Robertson; Romero; Scott; Skinner; Sterk; Wood and Zellinsky.

Voting Yea: Representatives K. Schmidt, Fisher, Hankins, Mielke, Mitchell, Backlund, Cairnes, Chandler, Constantine, Cooper, Gardner, Hatfield, McCune, Murray, O'Brien, Ogden, Radcliff, Robertson, Romero, Scott, Skinner, Sterk, Wood and Zellinsky.

Excused: Representatives Buck, DeBolt and Johnson.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6201 Prime Sponsor, Senate Committee on Human Services & Corrections: Making changes concerning the federal child abuse prevention and treatment act. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Children & Family Services (For amendment, see Journal 47th Day, 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6204 Prime Sponsor, Senate Committee on Agriculture & Environment: Increasing the efficiency of registering and identifying livestock. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Agriculture & Ecology (For amendment, see Journal 47th Day, 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 48, after line 4 of the amendment, insert the following:

"NEW SECTION. Sec. 99. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Lambert; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Kenney; Kessler; Linville; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, Doumit, Gombosky, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Lambert, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives H. Sommers, Chopp, Cody, Keiser, Kenney, Kessler, Linville, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

ESSB 6205 Prime Sponsor, Senate Committee on Government Operations: Allowing waiver of interest and penalties on property taxes delinquent because of hardship. Reported by Committee on Finance

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 84.56.025 and 1984 c 185 s 1 are each amended to read as follows:

(1) The interest and penalties for delinquencies on property taxes, which taxes are levied on real estate in the year of a conveyance of the real estate and which are collected in the following year, shall be waived by the county treasurer under the following circumstances:

(((1))) (a) Records conveying the real estate were filed with the county auditor on or before November 30 of the year the taxes are levied;

(((2))) (b) A grantee's name and address are included in the records; and

(((3))) (c) The notice for these taxes due, as provided in RCW 84.56.050, was not sent to a grantee due to error by the county. Where such waiver of interest and penalties has occurred, the full amount of interest and penalties shall be reinstated if the grantee fails to pay the delinquent taxes within thirty days of receiving notice that the taxes are due. Each county treasurer shall, subject to guidelines prepared by the department of revenue, establish administrative procedures to determine if grantees are eligible for this waiver.

(2) In addition to the waiver under subsection (1) of this section, the interest and penalties for delinquencies on property taxes shall be waived by the county treasurer under the following circumstances:

(a) The taxpayer fails to make one payment under RCW 84.56.020 by the due date on the taxpayer's personal residence because of hardship caused by the death of the taxpayer's spouse if the taxpayer notifies the county treasurer of the hardship within sixty days of the tax due date; or

(b) The taxpayer fails to make one payment under RCW 84.56.020 by the due date on the taxpayer's parent's or stepparent's personal residence because of hardship caused by the death of the taxpayer's parent or stepparent if the taxpayer notifies the county treasurer of the hardship within sixty days of the tax due date.

(3) Before allowing a hardship waiver under subsection (2) of this section, the county treasurer may require a copy of the death certificate along with an affidavit signed by the taxpayer."

Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Boldt; Butler; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6208 Prime Sponsor, Senate Committee on Human Services & Corrections: Revising procedures for at-risk youth. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Children & Family Services (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 11, line 10 of the amendment, strike "18" and insert "16"

On page 11, line 18 of the amendment, strike "18(1)" and insert "16"

On page 12, line 25 of the amendment, strike "18" and insert "16"

On page 35, beginning on line 23 of the amendment, strike sections 42, 43, 44, and 45

On page 38, beginning on line 1 of the amendment, strike all of section 46

Renumber the remaining sections consecutively and correct internal references accordingly.

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6214 Prime Sponsor, Senate Committee on Ways & Means: Revising provisions relating to commitment of mentally ill persons. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Criminal Justice & Corrections (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 2, line 14 of the amendment, after "dibenzoxazipine))" insert ", which includes, but is not limited to atypical antipsychotic medications"

On page 28, after line 25 of the amendment, insert the following:

"NEW SECTION. Sec. 27. A new section is added to chapter 71.05 RCW to read as follows:

Where appropriate, and under the prescription of an authorized professional person, atypical antipsychotic medications may be accessed for use by a regional support network through the fund established in section 54 of this act."

Renumber the following sections consecutively and correct any internal references accordingly.

On page 52, after line 13 of the amendment, insert the following:

"NEW SECTION. Sec. 49. A new section is added to chapter 10.77 RCW to read as follows:

Renumber the following sections consecutively and correct any internal references accordingly.

On page 53, after line 11 of the amendment, insert the following:

"NEW SECTION. Sec. 54. $210,000 of the general fund--state appropriation for fiscal year 1999 is provided solely for the establishment of a fund to reimburse regional support networks for the cost of atypical antipsychotic medications. This amount is not subject to the provisions of RCW 71.24.035(17)(d)."

Renumber the following sections consecutively and correct any internal references accordingly.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6220 Prime Sponsor, Senator Horn: Allowing airline employees to trade shifts without overtime pay. Reported by Committee on Transportation Policy & Budget

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that employees in the airline industry have a long-standing practice and tradition of trading shifts voluntarily among themselves. The legislature also finds that federal law exempts airline and other employees from the provisions of federal overtime regulations. This act is intended to specify that airline industry employers are not required to pay overtime compensation to an employee agreeing to work additional hours for a coemployee.

Sec. 2. RCW 49.46.130 and 1997 c 311 s 1 and 1997 c 203 s 2 are each reenacted and amended to read as follows:

(1) Except as otherwise provided in this section, no employer shall employ any of his employees for a work week longer than forty hours unless such employee receives compensation for his employment in excess of the hours above specified at a rate not less than one and one-half times the regular rate at which he is employed.

(2) This section does not apply to:

(a) Any person exempted pursuant to RCW 49.46.010(5). The payment of compensation or provision of compensatory time off in addition to a salary shall not be a factor in determining whether a person is exempted under RCW 49.46.010(5)(c);

(b) Employees who request compensating time off in lieu of overtime pay;

(d) Seasonal employees who are employed at concessions and recreational establishments at agricultural fairs, including those seasonal employees employed by agricultural fairs, within the state provided that the period of employment for any seasonal employee at any or all agricultural fairs does not exceed fourteen working days a year;

(e) Any individual employed as a motion picture projectionist if that employee is covered by a contract or collective bargaining agreement which regulates hours of work and overtime pay;

(f) An individual employed as a truck or bus driver who is subject to the provisions of the Federal Motor Carrier Act (49 U.S.C. Sec. 3101 et seq. and 49 U.S.C. Sec. 10101 et seq.), if the compensation system under which the truck or bus driver is paid, which may be an hourly based wage system, includes overtime pay, reasonably equivalent to that required by this subsection, for working longer than forty hours per week;

(g) Any individual employed (i) on a farm, in the employ of any person, in connection with the cultivation of the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and furbearing animals and wildlife, or in the employ of the owner or tenant or other operator of a farm in connection with the operation, management, conservation, improvement, or maintenance of such farm and its tools and equipment; or (ii) in packing, packaging, grading, storing or delivering to storage, or to market or to a carrier for transportation to market, any agricultural or horticultural commodity; or (iii) commercial canning, commercial freezing, or any other commercial processing, or with respect to services performed in connection with the cultivation, raising, harvesting, and processing of oysters or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption;

(h) Any industry in which federal law provides for an overtime payment based on a work week other than forty hours. However, the provisions of the federal law regarding overtime payment based on a work week other than forty hours shall nevertheless apply to employees covered by this section without regard to the existence of actual federal jurisdiction over the industrial activity of the particular employer within this state. For the purposes of this subsection, "industry" means a trade, business, industry, or other activity, or branch, or group thereof, in which individuals are gainfully employed (section 3(h) of the Fair Labor Standards Act of 1938, as amended (Public Law 93-259);

(i) Any hours worked by an employee of a carrier by air subject to the provisions of subchapter II of the Railway Labor Act (45 U.S.C. Sec. 181 et seq.), when such hours are voluntarily worked by the employee pursuant to a shift-trading practice under which the employee has the opportunity in the same or in other work weeks to reduce hours worked by voluntarily offering a shift for trade or reassignment.

(3) No employer shall be deemed to have violated subsection (1) of this section by employing any employee of a retail or service establishment for a work week in excess of the applicable work week specified in subsection (1) of this section if:

(a) The regular rate of pay of the employee is in excess of one and one-half times the minimum hourly rate required under RCW 49.46.020; and

(b) More than half of the employee's compensation for a representative period, of not less than one month, represents commissions on goods or services.

In determining the proportion of compensation representing commissions, all earnings resulting from the application of a bona fide commission rate is to be deemed commissions on goods or services without regard to whether the computed commissions exceed the draw or guarantee.

(4) No employer of commissioned salespeople primarily engaged in the business of selling automobiles, trucks, recreational vessels, recreational vessel trailers, recreational vehicle trailers, recreational campers, manufactured housing, or farm implements to ultimate purchasers shall violate subsection (1) of this section with respect to such commissioned salespeople if the commissioned salespeople are paid the greater of:

(a) Compensation at the hourly rate, which may not be less than the rate required under RCW 49.46.020, for each hour worked up to forty hours per week, and compensation of one and one-half times that hourly rate for all hours worked over forty hours in one week; or

(b) A straight commission, a salary plus commission, or a salary plus bonus applied to gross salary.

(5) No public agency shall be deemed to have violated subsection (1) of this section with respect to the employment of any employee in fire protection activities or any employee in law enforcement activities (including security personnel in correctional institutions) if: (a) In a work period of twenty-eight consecutive days the employee receives for tours of duty which in the aggregate exceed two hundred forty hours; or (b) in the case of such an employee to whom a work period of at least seven but less than twenty-eight days applies, in his or her work period the employee receives for tours of duty which in the aggregate exceed a number of hours which bears the same ratio to the number of consecutive days in his or her work period as two hundred forty hours bears to twenty-eight days; compensation at a rate not less than one and one-half times the regular rate at which he or she is employed.

NEW SECTION. Sec. 3. This act does not alter the terms, conditions, or practices contained in any collective bargaining agreement.

NEW SECTION. Sec. 4. This act is remedial in nature and applies retroactively.

NEW SECTION. Sec. 5. 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."

Signed by Representatives K. Schmidt, Chairman; Hankins, Vice Chairman; Mielke, Vice Chairman; Mitchell, Vice Chairman; Backlund; Buck; Cairnes; Chandler; DeBolt; Johnson; McCune; Radcliff; Robertson; Skinner; Sterk and Zellinsky.

MINORITY recommendation: Do not pass. Signed by Representatives Fisher, Ranking Minority Member; Cooper, Assistant Ranking Minority Member; Constantine; Gardner; Hatfield; Murray; O'Brien; Ogden; Romero; Scott and Wood.

Voting Yea: Representatives K. Schmidt, Hankins, Mielke, Mitchell, Backlund, Buck, Cairnes, Chandler, DeBolt, Johnson, McCune, Radcliff, Robertson, Skinner and Zellinsky.

Voting Nay: Representatives Fisher, Cooper, Gardner, Hatfield, Murray, O'Brien, Ogden, Romero, Scott and Wood.

Excused: Representatives Constantine and Sterk.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6238 Prime Sponsor, Senate Committee on Human Services & Corrections: Changing provisions relating to dependent children. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Children & Family Services (For amendment, see Journal 47th Day, February 27, 1998) as further amended by Committee on Appropriations.

On page 9, after line 2, insert the following:

"NEW SECTION. Sec. 5. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6242 Prime Sponsor, Senate Committee on Higher Education: Creating the Washington state endowment for higher education. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 1, line 4, after "provide" strike "permanent" and insert "a permanent funding source for"

Beginning on page 1, line 16, after "increase" strike the remainder of the section and insert "graduate fellowships, exceptional faculty awards, and distinguished professorships."

On page 2, after line 26, strike all material through "resources." on line 32, and insert the following:

"(2) State matching funds and private donations are combined to form the trust fund. The principal of the invested trust fund shall not be invaded; only earnings or a portion thereof may be spent for graduate fellowships under RCW 28B.10.882, exceptional faculty awards under RCW 28B.50.837, and distinguished professorships under RCW 28B.10.868."

On page 3, after line 7, strike all material through "appropriations." on line 9

On page 4, line 21, after "After" strike "six" and insert "seven"

On page 4, after line 31, strike all material through "goals." on line 38

MINORITY recommendation: Do not pass. Signed by Representatives Lisk; Poulsen and D. Schmidt.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Gombosky, Benson, Carlson, Chopp, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kenney, Kessler, Lambert, Linville, Mastin, McMorris, Parlette, Regala, Sehlin, Sheahan, Talcott and Tokuda.

Voting Nay: Representatives Lisk, Poulsen and D. Schmidt.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6243 Prime Sponsor, Senate Committee on Ways & Means: Repealing the sales tax on residential laundry facilities. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Dickerson, Assistant Ranking Minority Member; Boldt; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Boldt, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representatives Dickerson, Butler and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6253 Prime Sponsor, Senate Committee on Commerce & Labor: Reimbursing state liquor stores and agency liquor vendors for costs of credit and debit sales of liquor. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. It is the intent of the legislature that expenditures associated with the implementation of using credit and debit cards in state liquor stores and agency liquor vendor stores not have a negative impact to the liquor revolving fund balance and that transfers to the state general fund, the cities, and the counties not be reduced because of these costs.

Sec. 2. RCW 66.08.026 and 1997 c 148 s 1 are each amended to read as follows:

All administrative expenses of the board incurred on and after April 1, 1963 shall be appropriated and paid from the liquor revolving fund. These administrative expenses shall include, but not be limited to: The salaries and expenses of the board and its employees, the cost of establishing, leasing, maintaining, and operating state liquor stores and warehouses, legal services, pilot projects, annual or other audits, and other general costs of conducting the business of the board, and the costs of supplying, installing, and maintaining equipment used in state liquor stores and agency liquor vendor stores for the purchase of liquor by nonlicensees using debit or credit cards. The administrative expenses shall not, however, be deemed to include costs of liquor and lottery tickets purchased, the cost of transportation and delivery to the point of distribution, other costs pertaining to the acquisition and receipt of liquor and lottery tickets, packaging and repackaging of liquor, transaction fees associated with credit or debit card purchases for liquor in state liquor stores and in the stores of agency liquor vendors pursuant to RCW 66.16.040 and 66.16.041, sales tax, and those amounts distributed pursuant to RCW 66.08.180, 66.08.190, 66.08.200, 66.08.210 and 66.08.220.

Sec. 3. RCW 66.16.041 and 1997 c 148 s 2 are each amended to read as follows:

(1) The state liquor control board shall accept bank credit card and debit cards from nonlicensees for purchases in state liquor stores, under such rules as the board may adopt. The board shall authorize liquor vendors appointed under RCW 66.08.050 to accept bank credit cards and debit cards for liquor purchases under this title, under such rules as the board may adopt.

(2) If a liquor vendor operating an agency store chooses to use credit or debit cards for liquor purchases by nonlicensees, the board shall provide equipment and installation and maintenance of the equipment necessary to implement the use of credit and debit cards. Any equipment provided by the board to an agency liquor vendor store for this purpose may be used only for the purchase of liquor.

(3) If the revenues and expenditures associated with implementing the use of credit and debit cards for the purchase of alcohol by nonlicensees from state liquor stores and agency stores operated by liquor vendors results in a reduction of the liquor revolving fund balance for fiscal year 1999 and the 1999-01 biennium, the board shall consider increasing the price of alcohol products to offset the reduction.

(4) The board shall provide a report evaluating the implementation of this section, including revenue and expenditures, to the appropriate committees of the legislature by ((January)) December 1, 1998."

Correct the title.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

ESB 6257 Prime Sponsor, Senator Strannigan: Lowering statutory levels for legal alcohol intoxication. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Law & Justice (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 13, beginning on line 3 of the amendment, strike all of section 8

Renumber the sections consecutively and correct the title.

On page 13, after line 7 of the amendment, insert the following:

Renumber the sections consecutively and correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6264 Prime Sponsor, Senate Committee on Ways & Means: Providing for the mass marking of chinook salmon. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Natural Resources (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 2, after line 21 of the amendment, insert the following:

Correct the title.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; Benson; Carlson; Cooke; Crouse; Dyer; Lambert; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Grant; Keiser; Kenney; Kessler; Linville; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, Benson, Carlson, Cooke, Dyer, Lambert, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives H. Sommers, Doumit, Gombosky, Chopp, Cody, Crouse, Grant, Keiser, Kenney, Kessler, Linville, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6270 Prime Sponsor, Senator Anderson: Eliminating the business and occupation tax on internal distributions. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington and Thompson.

Excused: Representatives Schoesler and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

E2SSB 6293 Prime Sponsor, Senate Committee on Transportation: Establishing penalties for drunk driving. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Appropriations and without amendment by Committee on Law & Justice (For amendment, see Journal 47th Day, February 27, 1998).

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 46.61.5055 and 1997 c 229 s 11 and 1997 c 66 s 14 are each reenacted and amended to read as follows:

(1) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has no prior offense within five years shall be punished as follows:

(a) In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than one day nor more than one year. Twenty-four consecutive hours of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. In lieu of the mandatory minimum term of imprisonment required under this subsection (1)(a)(i), the court may order not less than fifteen days of electronic home monitoring. The offender shall pay the cost of electronic home monitoring. The county or municipality in which the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device to include an alcohol detection breathalyzer, and the court may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring; and

(ii) By a fine of not less than three hundred fifty dollars nor more than five thousand dollars. Three hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By suspension of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of ninety days. The period of license, permit, or privilege suspension may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall suspend the offender's license, permit, or privilege; or

(b) In the case of a person whose alcohol concentration was at least 0.15, or for whom by reason of the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i) By imprisonment for not less than two days nor more than one year. Two consecutive days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based. In lieu of the mandatory minimum term of imprisonment required under this subsection (1)(b)(i), the court may order not less than thirty days of electronic home monitoring. The offender shall pay the cost of electronic home monitoring. The county or municipality in which the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device to include an alcohol detection breathalyzer, and the court may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring; and

(ii) By a fine of not less than five hundred dollars nor more than five thousand dollars. Five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of one year. The period of license, permit, or privilege suspension may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall suspend the offender's license, permit, or privilege.

(2) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has one prior offense within five years shall be punished as follows:

(i) By imprisonment for not less than thirty days nor more than one year((. Thirty days of the imprisonment)) and sixty days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Thirty days of imprisonment and sixty days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of two years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege; or

(i) By imprisonment for not less than forty-five days nor more than one year((. Forty-five days of the imprisonment)) and ninety days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Forty-five days of imprisonment and ninety days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than seven hundred fifty dollars nor more than five thousand dollars. Seven hundred fifty dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of nine hundred days. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege.

(3) A person who is convicted of a violation of RCW 46.61.502 or 46.61.504 and who has two or more prior offenses ((within five years)), or two or more convictions of any of the offenses listed in RCW 46.65.020, shall be punished as follows:

(a) ((In the case of a person whose alcohol concentration was less than 0.15, or for whom for reasons other than the person's refusal to take a test offered pursuant to RCW 46.20.308 there is no test result indicating the person's alcohol concentration:

(i))) By imprisonment for not less than ninety days nor more than one year((. Ninety days of the imprisonment)) and one hundred twenty days of electronic home monitoring. The offender shall pay for the cost of the electronic monitoring. The county or municipality where the penalty is being imposed shall determine the cost. The court may also require the offender's electronic home monitoring device include an alcohol detection breathalyzer, and may restrict the amount of alcohol the offender may consume during the time the offender is on electronic home monitoring. Ninety days of imprisonment and one hundred twenty days of electronic home monitoring may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(((ii))) (b) By a fine of not less than one thousand dollars nor more than five thousand dollars. One thousand dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(((iii))) (c) By permanent revocation of the offender's license or permit to drive, or ((suspension)) permanent revocation of any nonresident privilege to drive((, for a period of three years)). The ((period)) permanent revocation of a license, permit, or privilege ((revocation)) may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall permanently revoke the offender's license, permit, or privilege((; or

(i) By imprisonment for not less than one hundred twenty days nor more than one year. One hundred twenty days of the imprisonment may not be suspended or deferred unless the court finds that the imposition of this mandatory minimum sentence would impose a substantial risk to the offender's physical or mental well-being. Whenever the mandatory minimum sentence is suspended or deferred, the court shall state in writing the reason for granting the suspension or deferral and the facts upon which the suspension or deferral is based; and

(ii) By a fine of not less than one thousand five hundred dollars nor more than five thousand dollars. One thousand five hundred dollars of the fine may not be suspended or deferred unless the court finds the offender to be indigent; and

(iii) By revocation of the offender's license or permit to drive, or suspension of any nonresident privilege to drive, for a period of four years. The period of license, permit, or privilege revocation may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction the department shall revoke the offender's license, permit, or privilege)).

(4) In exercising its discretion in setting penalties within the limits allowed by this section, the court shall particularly consider whether the person's driving at the time of the offense was responsible for injury or damage to another or another's property.

(5) An offender punishable under this section is subject to the alcohol assessment and treatment provisions of RCW 46.61.5056.

(6) After expiration of any period of suspension or revocation of the offender's license, permit, or privilege to drive required by this section, the department shall place the offender's driving privilege in probationary status pursuant to RCW 46.20.355.

(7)(a) In addition to any nonsuspendable and nondeferrable jail sentence required by this section, whenever the court imposes less than one year in jail, the court shall also suspend but shall not defer a period of confinement for a period not exceeding two years. The court shall impose conditions of probation that include: (i) Not driving a motor vehicle within this state without a valid license to drive and proof of financial responsibility for the future; (ii) not driving a motor vehicle within this state while having an alcohol concentration of 0.08 or more within two hours after driving; and (iii) not refusing to submit to a test of his or her breath or blood to determine alcohol concentration upon request of a law enforcement officer who has reasonable grounds to believe the person was driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor. The court may impose conditions of probation that include nonrepetition, installation of an ignition interlock or other biological or technical device on the probationer's motor vehicle, alcohol or drug treatment, supervised probation, or other conditions that may be appropriate. The sentence may be imposed in whole or in part upon violation of a condition of probation during the suspension period.

(b) For each violation of mandatory conditions of probation under (a)(i) and (ii) or (a)(i) and (iii) of this subsection, the court shall order the convicted person to be confined for thirty days, which shall not be suspended or deferred.

(c) For each incident involving a violation of a mandatory condition of probation imposed under this subsection, the license, permit, or privilege to drive of the person shall be suspended by the court for thirty days or, if such license, permit, or privilege to drive already is suspended, revoked, or denied at the time the finding of probation violation is made, the suspension, revocation, or denial then in effect shall be extended by thirty days. The court shall notify the department of any suspension, revocation, or denial or any extension of a suspension, revocation, or denial imposed under this subsection.

(8) For purposes of this section:

(a) "Electronic home monitoring" shall not be considered confinement as defined in RCW 9.94A.030;

(b) "Permanent revocation" means revocation for the lifetime of the offender;

(i) A conviction for a violation of RCW 46.61.502 or an equivalent local ordinance;

(ii) A conviction for a violation of RCW 46.61.504 or an equivalent local ordinance;

(iii) A conviction for a violation of RCW 46.61.520 committed while under the influence of intoxicating liquor or any drug;

(iv) A conviction for a violation of RCW 46.61.522 committed while under the influence of intoxicating liquor or any drug;

(v) A conviction for a violation of RCW 46.61.5249 or an equivalent local ordinance, if the conviction is the result of a charge that was originally filed as a violation of RCW 46.61.502 or 46.61.504, or an equivalent local ordinance, or of RCW 46.61.520 or 46.61.522;

(vi) An out-of-state conviction for a violation that would have been a violation of (((a))) (c)(i), (ii), (iii), (iv), or (v) of this subsection if committed in this state;

(vii) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.502, 46.61.504, or an equivalent local ordinance; or

(viii) A deferred prosecution under chapter 10.05 RCW granted in a prosecution for a violation of RCW 46.61.5249, or an equivalent local ordinance, if the charge under which the deferred prosecution was granted was originally filed as a violation of RCW 46.61.502 or 46.61.504, or an equivalent local ordinance, or of RCW 46.61.520 or 46.61.522((.)); and

(((b))) (d) "Within five years" means that the arrest for a prior offense occurred within five years of the arrest for the current offense.

NEW SECTION. Sec. 2. A new section is added to chapter 46.61 RCW to read as follows:

A person who drives a vehicle within this state after his or her license has been permanently revoked pursuant to RCW 46.61.5055 is guilty of a gross misdemeanor and shall be punished by a fine of not more than five thousand dollars and by imprisonment for one year. A second or subsequent violation of this section is a class C felony and shall be punished by a fine of not more than ten thousand dollars and by imprisonment for seven years. Periods of imprisonment to be imposed under this section for either gross misdemeanor or felony violations are mandatory and may not be suspended or deferred. Sentences imposed for felony violations are not subject to the earned early release provisions of the sentencing reform act.

NEW SECTION. Sec. 3. A new section is added to chapter 46.20 RCW to read as follows:

At the expiration of ten years from the date of any conviction in which a person was punished by a permanent license revocation under RCW 46.61.5055 (2) or (3), the person may petition the department for restoration of his or her privilege to operate a motor vehicle in this state. Upon receipt of the petition, and for good cause shown, the department of licensing shall restore to the person the privilege to operate a motor vehicle in this state upon such terms and conditions as the department of licensing prescribes, subject to the provisions of chapter 46.29 RCW and such other provisions of law relating to the issuance or revocation of drivers' licenses.

For the purposes of this section, "good cause shown" means that the individual submitting the petition presents sufficient evidence of permanent rehabilitation through affidavits from treatment providers, doctors, and others. The petitioner has the burden of demonstrating by clear and convincing evidence that he or she has spent the previous seven years in a state of sobriety.

NEW SECTION. Sec. 4. The Washington traffic safety commission shall conduct an electronic media campaign advertising the contents of this act. However, if specific funding for the purposes of this section referencing this section by bill or chapter number and section number, is not provided by June 30, 1998, in an appropriation by the legislature, this section is null and void.

NEW SECTION. Sec. 5. A new section is added to chapter 46.65 RCW to read as follows:

(1) If a person:

(a)(i) Accumulates three or more convictions, singularly or in combination, of any of the offenses described in RCW 46.65.020(1); and

(ii) Any one of the three offenses were committed while the person was driving under the influence of liquor or any drug as defined in RCW 41.61.502 or in physical control of a vehicle while under the influence of liquor or any drug as defined in RCW 41.61.504; then

(b) The person's driver's license, driver's permit or nonresident privilege to drive shall be permanently revoked as defined in RCW 41.61.5055.

(2) The permanent revocation of a license, permit, or privilege may not be suspended. The court shall notify the department of licensing of the conviction, and upon receiving notification of the conviction of the department shall permanently revoke the offender's license, permit, or privilege.

(3) A person who drives a vehicle within this state after his or her license has been permanently revoked under this section is guilty of a gross misdemeanor and shall be punished by a fine of not more than five thousand dollars and by imprisonment for one year. A second or subsequent violation of this section is a class C felony and shall be punished by a fine of not more than ten thousand dollars and by imprisonment for seven years. Periods of imprisonment to be imposed under this section for either gross misdemeanor or felony violations are mandatory and may not be suspended or deferred. Sentences imposed for felony violations are not subject to earned early release.

(4) At the expiration of ten years from the date of any conviction in which a person was punished by a permanent license revocation under this section, the person may petition the department for restoration of his or her privilege to operate a motor vehicle in this state.

(a) Upon receipt of the petition, and for good cause shown, the department of licensing shall restore to the person the privilege to operate a motor vehicle in this state upon such terms and conditions as the department of licensing prescribes, subject to the provisions of chapter 46.29 RCW and such other provisions of law relating to the issuance or revocation of drivers' licenses.

(b) For the purposes of this subsection, "good cause shown" means that the individual submitting the petition presents sufficient evidence of permanent rehabilitation through affidavits from treatment providers, doctors, and others. The petitioner has the burden of demonstrating by clear and convincing evidence that he or she has spent the previous ten years in a state of sobriety.

NEW SECTION. Sec. 6. If this act mandates an increased level of service by local governments, the local government may, under RCW 43.135.060 and chapter 4.92 RCW, submit claims for reimbursement by the legislature. The claims shall be subject to verification by the office of financial management.

NEW SECTION. Sec. 7. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 8. Section 4 of 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. Sections 1 through 3 of this act take effect November 1, 1998."

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

ESB 6305 Prime Sponsor, Senator Roach: Providing a death benefit for certain general authority police officers. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 1, line 12, before "shall be" strike "general authority police officers"

Passed to Rules Committee for second reading.

February 26, 1998

SSB 6306 Prime Sponsor, Senate Committee on Ways & Means: Creating the Washington school employees' retirement system. Reported by Committee on Appropriations.

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature recognizes that teachers and school district employees share the same educational work environment and academic calendar.

It is the intent of the legislature to achieve similar retirement benefits for all educational employees by transferring the membership of classified school employees in the public employees' retirement system plan II to the Washington school employees' retirement system plan II. The transfer of membership to the Washington school employees' retirement system plan II is not intended to cause a diminution or expansion of benefits for affected members. It is enacted solely to provide public employees working under the same conditions with the same options for retirement planning.

As members of the Washington school employees' retirement system plan II, classified employees will have the same opportunity to transfer to the Washington school employees' retirement system plan III as their certificated coworkers. The ability to transfer to the Washington school employees' retirement system plan III offers members a new public retirement system that balances flexibility with stability; provides increased employee control of investments and responsible protection of the public's investment in employee benefits; and encourages the pursuit of public sector careers without creating barriers to other public or private sector employment.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter, unless the context clearly requires otherwise:

(1) "Retirement system" means the Washington school employees' retirement system provided for in this chapter.

(2) "Department" means the department of retirement systems created in chapter 41.50 RCW.

(3) "State treasurer" means the treasurer of the state of Washington.

(4) "Employer," for plan II and plan III members, means a school district or an educational service district.

(5) "Member" means any employee included in the membership of the retirement system, as provided for in section 4 of this act.

(6)(a) "Compensation earnable" for plan II and plan III members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States internal revenue code, but shall exclude nonmoney maintenance compensation and lump sum or other payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.

(b) "Compensation earnable" for plan II and plan III members also includes the following actual or imputed payments, which are not paid for personal services:

(i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement, which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable to the extent provided in this subsection, and the individual shall receive the equivalent service credit;

(ii) In any year in which a member serves in the legislature, the member shall have the option of having such member's compensation earnable be the greater of:

(A) The compensation earnable the member would have received had such member not served in the legislature; or

(B) Such member's actual compensation earnable received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under this (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions;

(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and 72.09.240;

(iv) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038;

(v) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670; and

(vi) Compensation that a member receives for being in standby status. For the purposes of this section, a member is in standby status when not being paid for time actually worked and the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise.

(7) "Service" for plan II and plan III members, means periods of employment by a member in an eligible position or positions for one or more employers for which compensation earnable is paid. Compensation earnable earned for ninety or more hours in any calendar month shall constitute one service credit month except as provided in section 19 of this act. Compensation earnable earned for at least seventy hours but less than ninety hours in any calendar month shall constitute one-half service credit month of service. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service. Time spent in standby status, whether compensated or not, is not service.

Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits.

(a) Service in any state elective position shall be deemed to be full-time service.

(b) A member shall receive a total of not more than twelve service credit months of service for such calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for ninety or more hours is rendered.

(c) For purposes of plan II and III "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(i) Less than eleven days equals one-quarter service credit month;

(ii) Eleven or more days but less than twenty-two days equals one-half service credit month;

(iii) Twenty-two days equals one service credit month;

(iv) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month; and

(v) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

(8) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

(9) "Service credit month" means a month or an accumulation of months of service credit which is equal to one.

(10) "Membership service" means all service rendered as a member.

(11) "Beneficiary" for plan II and plan III members means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

(12) "Regular interest" means such rate as the director may determine.

(13) "Accumulated contributions" means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

(14) "Average final compensation" for plan II and plan III members means the member's average compensation earnable of the highest consecutive sixty months of service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.40.710(2).

(15) "Final compensation" means the annual rate of compensation earnable by a member at the time of termination of employment.

(16) "Annuity" means payments for life derived from accumulated contributions of a member. All annuities shall be paid in monthly installments.

(17) "Pension" means payments for life derived from contributions made by the employer. All pensions shall be paid in monthly installments.

(18) "Retirement allowance" for plan II and plan III members means monthly payments to a retiree or beneficiary as provided in this chapter.

(19) "Employee" or "employed" means a person who is providing services for compensation to an employer, unless the person is free from the employer's direction and control over the performance of work. The department shall adopt rules and interpret this subsection consistent with common law.

(20) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality and other tables as may be adopted by the director.

(21) "Retirement" means withdrawal from active service with a retirement allowance as provided by this chapter.

(22) "Eligible position" means any position that, as defined by the employer, normally requires five or more months of service a year for which regular compensation for at least seventy hours is earned by the occupant thereof. For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position.

(23) "Ineligible position" means any position which does not conform with the requirements set forth in subsection (22) of this section.

(24) "Leave of absence" means the period of time a member is authorized by the employer to be absent from service without being separated from membership.

(25) "Totally incapacitated for duty" means total inability to perform the duties of a member's employment or office or any other work for which the member is qualified by training or experience.

(26) "Retiree" means any person who has begun accruing a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member.

(27) "Director" means the director of the department.

(28) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

(29) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

(30) "Plan II" means the Washington school employees' retirement system plan II providing the benefits and funding provisions covering persons who first became members of the public employees' retirement system on and after October 1, 1977 and transferred to the Washington school employees' retirement system under section 113 of this act.

(31) "Plan III" means the Washington school employees' retirement system plan III providing the benefits and funding provisions covering persons who first became members of the system on and after September 1, 2000, or who transfer from plan II under section 114 of this act.

(32) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

(33) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

(34) "Index B" means the index for the year prior to index A.

(35) "Adjustment ratio" means the value of index A divided by index B.

(36) "Separation from service" occurs when a person has terminated all employment with an employer.

(37) "Member account" or "member's account" for purposes of plan III means the sum of the contributions and earnings on behalf of the member in the defined contribution portion of plan III.

(38) "Classified employee" means an employee of a school district or an educational service district who is not eligible for membership in the teachers' retirement system established under chapter 41.32 RCW.

NEW SECTION. Sec. 3. A retirement system is hereby created for the employees of school districts or educational service districts. The administration and management of the retirement system, the responsibility for making effective the provisions of this chapter, and the authority to make all rules necessary therefor are hereby vested in the department. All such rules shall be governed by the provisions of chapter 34.05 RCW. This retirement system shall be known as the Washington school employees' retirement system.

NEW SECTION. Sec. 4. Membership in the retirement system shall consist of all regularly compensated classified employees and appointive and elective officials of employers, as defined in this chapter, with the following exceptions:

(1) Persons in ineligible positions;

(2)(a) Persons holding elective offices or persons appointed directly by the governor: PROVIDED, That such persons shall have the option of applying for membership during such periods of employment: AND PROVIDED FURTHER, That any persons holding or who have held elective offices or persons appointed by the governor who are members in the retirement system and who have, prior to becoming such members, previously held an elective office, and did not at the start of such initial or successive terms of office exercise their option to become members, may apply for membership to be effective during such term or terms of office, and shall be allowed to establish the service credit applicable to such term or terms of office upon payment of the employee contributions therefor by the employee with interest as determined by the director and employer contributions therefor by the employer or employee with interest as determined by the director: AND PROVIDED FURTHER, That all contributions with interest submitted by the employee under this subsection shall be placed in the employee's individual account in the employee's savings fund and be treated as any other contribution made by the employee, with the exception that any contributions submitted by the employee in payment of the employer's obligation, together with the interest the director may apply to the employer's contribution, shall not be considered part of the member's annuity for any purpose except withdrawal of contributions;

(b) A member holding elective office who has elected to apply for membership pursuant to (a) of this subsection and who later wishes to be eligible for a retirement allowance shall have the option of ending his or her membership in the retirement system. A member wishing to end his or her membership under this subsection must file on a form supplied by the department a statement indicating that the member agrees to irrevocably abandon any claim for service for future periods served as an elected official. A member who receives more than fifteen thousand dollars per year in compensation for his or her elective service, adjusted annually for inflation by the director, is not eligible for the option provided by this subsection (2)(b);

(3) Retirement system retirees: PROVIDED, That following reemployment in an eligible position, a retiree may elect to prospectively become a member of the retirement system if otherwise eligible;

(4) Persons enrolled in state-approved apprenticeship programs, authorized under chapter 49.04 RCW, and who are employed by employers to earn hours to complete such apprenticeship programs, if the employee is a member of a union-sponsored retirement plan and is making contributions to such a retirement plan or if the employee is a member of a Taft-Hartley retirement plan;

(5) Persons rendering professional services to an employer on a fee, retainer, or contract basis or when the income from these services is less than fifty percent of the gross income received from the person's practice of a profession;

(6) Employees who (a) are not citizens of the United States, (b) do not reside in the United States, and (c) perform duties outside of the United States;

(7) Employees who (a) are not citizens of the United States, (b) are not covered by chapter 41.48 RCW, (c) are not excluded from membership under this chapter or chapter 41.04 RCW, (d) are residents of this state, and (e) make an irrevocable election to be excluded from membership, in writing, which is submitted to the director within thirty days after employment in an eligible position;

(8) Employees who are citizens of the United States and who reside and perform duties for an employer outside of the United States: PROVIDED, That unless otherwise excluded under this chapter or chapter 41.04 RCW, the employee may apply for membership (a) within thirty days after employment in an eligible position and membership service credit shall be granted from the first day of membership service, and (b) after this thirty-day period, but membership service credit shall be granted only if payment is made for the noncredited membership service under RCW 41.50.165(2), otherwise service shall be from the date of application.

NEW SECTION. Sec. 5. Any person who has been employed in a nonelective position for at least nine months and who has made member contributions required under this chapter throughout such period, shall be deemed to have been in an eligible position during such period of employment.

NEW SECTION. Sec. 6. Within thirty days after his or her employment or his or her acceptance into membership each employee or appointive or elective official shall submit to the department a statement of his or her name and such other information as the department shall require. Compliance with the provisions set forth in this section shall be considered to be a condition of employment and failure by an employee to comply may result in separation from service.

NEW SECTION. Sec. 7. (1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.

(b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month. Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

(2) A retiree who has satisfied the break in employment requirement of subsection (1) of this section, may work up to five months per calendar year in an eligible position without suspension of his or her benefit.

(3) If the retiree opts to reestablish membership under section 4 of this act, he or she terminates his or her retirement status and becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with section 103 or 209 of this act. However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.

NEW SECTION. Sec. 8. Those members subject to this chapter who became disabled in the line of duty and who received or are receiving benefits under Title 51 RCW or a similar federal workers' compensation program shall receive or continue to receive service credit subject to the following:

(1) No member may receive more than one month's service credit in a calendar month.

(2) No service credit under this section may be allowed after a member separates or is separated without leave of absence.

(3) Employer contributions shall be paid by the employer at the rate in effect for the period of the service credited.

(4) Employee contributions shall be collected by the employer and paid to the department at the rate in effect for the period of service credited.

(5) Contributions shall be based on the regular compensation which the member would have received had the disability not occurred. If contribution payments are made retroactively, interest shall be charged at the rate set by the director on both employee and employer contributions. No service credit shall be granted until the employee contribution has been paid.

(6) The service and compensation credit shall not be granted for a period to exceed twelve consecutive months.

(7) Should the legislature revoke the service credit authorized under this section or repeal this section, no affected employee is entitled to receive the credit as a matter of contractual right.

NEW SECTION. Sec. 9. The deductions from the compensation of members, provided for in section 104 of this act, shall be made notwithstanding that the minimum compensation provided for by law for any member shall be reduced thereby. Every member shall be deemed to consent and agree to the deductions made and provided for in this chapter and receipt in full for his or her salary or compensation, and payment, less the deductions, shall be a full and complete discharge and acquittance of all claims and demands whatsoever for the services rendered by the person during the period covered by the payment, except as to benefits provided for under this chapter.

NEW SECTION. Sec. 10. (1) The director shall report to each employer the contribution rates required for the ensuing biennium or fiscal year, whichever is applicable.

(2) Beginning September 1, 1990, the amount to be collected as the employer's contribution shall be computed by applying the applicable rates established in chapter 41.45 RCW to the total compensation earnable of employer's members as shown on the current payrolls of the employer. Each employer shall compute at the end of each month the amount due for that month and the same shall be paid as are its other obligations.

(3) In the event of failure, for any reason, of an employer other than a political subdivision of the state to have remitted amounts due for membership service of any of the employer's members rendered during a prior biennium, the director shall bill such employer for such employer's contribution together with such charges as the director deems appropriate in accordance with RCW 41.50.120. Such billing shall be paid by the employer as, and the same shall be, a proper charge against any moneys available or appropriated to such employer for payment of current biennial payrolls.

NEW SECTION. Sec. 11. (1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, or retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, the various funds created by this chapter, and all moneys and investments and income thereof, are hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.

(2) This section does not prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and which has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department. This section also does not prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

(3) Subsection (1) of this section does not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

NEW SECTION. Sec. 12. A member shall not receive a disability retirement benefit under section 105 or 210 of this act if the disability is the result of criminal conduct by the member committed after April 21, 1997.

NEW SECTION. Sec. 13. Any person who knowingly makes any false statements, or falsifies or permits to be falsified any record or records of this retirement system in any attempt to defraud the retirement system as a result of such act, is guilty of a gross misdemeanor.

NEW SECTION. Sec. 14. (1) Any person who was a member of the state-wide city employees' retirement system governed by chapter 41.44 RCW and who was never reemployed by an employer as defined in RCW 41.40.010 and who is employed by an employer as defined in section 2 of this act, may, in a writing filed with the director, elect to:

(a) Transfer to this retirement system all service currently credited under chapter 41.44 RCW;

(b) Reestablish and transfer to this retirement system all service which was previously credited under chapter 41.44 RCW but which was canceled by discontinuance of service and withdrawal of accumulated contributions as provided in RCW 41.44.190. The service may be reestablished and transferred only upon payment by the member to the employees' savings fund of this retirement system of the amount withdrawn plus interest thereon from the date of withdrawal until the date of payment at a rate determined by the director. No additional payments are required for service credit described in this subsection if already established under this chapter; and

(c) Establish service credit for the initial period of employment not to exceed six months, prior to establishing membership under chapter 41.44 RCW, upon payment in full by the member of the total employer's contribution to the benefit account fund of this retirement system that would have been made under this chapter when the initial service was rendered. The payment shall be based on the first month's compensation earnable as a member of the state-wide city employees' retirement system and as defined in RCW 41.44.030(13). However, a person who has established service credit under RCW 41.40.010(13) (c) or (d) shall not establish additional credit under this subsection nor may anyone who establishes credit under this subsection establish any additional credit under RCW 41.40.010(13) (c) or (d). No additional payments are required for service credit described in this subsection if already established under this chapter.

(2) The written election must be filed and the payments must be completed in full within one year after employment by an employer.

(3) Upon receipt of the written election and payments required by subsection (1) of this section from any retiree described in subsection (1) of this section, the department shall recompute the retiree's allowance in accordance with this section and shall pay any additional benefit resulting from such recomputation retroactively to the date of retirement from the system governed by this chapter.

(4) Any person who was a member of the state-wide city employees' retirement system under chapter 41.44 RCW and also became a member of the public employees' retirement system established under chapter 41.40 RCW or the Washington school employees' retirement system established under this chapter, and did not make the election under RCW 41.40.058 or subsection (1) of this section because he or she was not a member of the public employees' retirement system prior to July 27, 1987, or did not meet the time limitations of RCW 41.40.058 or subsection (2) of this section, may elect to do any of the following:

(a) Transfer to this retirement system all service currently credited under chapter 41.44 RCW;

(b) Reestablish and transfer to this retirement system all service that was previously credited under chapter 41.44 RCW but was canceled by discontinuance of service and withdrawal of accumulated contributions as provided in RCW 41.44.190; and

(c) Establish service credit for the initial period of employment not to exceed six months, prior to establishing membership under chapter 41.44 RCW.

To make the election or elections, the person must pay the amount required under RCW 41.50.165(2) prior to retirement from this retirement system.

NEW SECTION. Sec. 15. Any person aggrieved by any decision of the department affecting his or her legal rights, duties, or privileges must, before he or she appeals to the courts, file with the director by mail or personally within sixty days from the day the decision was communicated to the person, a notice for a hearing before the director's designee. The notice of hearing shall set forth in full detail the grounds upon which the person considers the decision unjust or unlawful and shall include every issue to be considered by the department, and it must contain a detailed statement of facts upon which the person relies in support of the appeal. These persons shall be deemed to have waived all objections or irregularities concerning the matter on which the appeal is taken, other than those specifically set forth in the notice of hearing or appearing in the records of the retirement system.

NEW SECTION. Sec. 16. Following its receipt of a notice for hearing in accordance with section 15 of this act, a hearing shall be held by the director or a duly authorized representative, in the county of the residence of the claimant at a time and place designated by the director. Such hearing shall be conducted and governed in all respects by the provisions of chapter 34.05 RCW.

NEW SECTION. Sec. 17. Judicial review of any final decision and order by the director is governed by the provisions of chapter 34.05 RCW.

NEW SECTION. Sec. 18. No bond of any kind shall be required of a claimant appealing to the superior court, the court of appeals, or the supreme court from a finding of the department affecting the claimant's right to retirement or disability benefits.

NEW SECTION. Sec. 19. (1) Except for any period prior to the member's employment in an eligible position, a plan II or plan III member who is employed by a school district or districts or an educational service district:

(a) Shall receive a service credit month for each month of the period from September through August of the following year if he or she is employed in an eligible position, earns compensation earnable for eight hundred ten hours or more during that period, and is employed during nine months of that period;

(b) If a member in an eligible position for each month of the period from September through August of the following year does not meet the hours requirements of (a) of this subsection, the member is entitled to one-half service credit month for each month of the period if he or she earns earnable compensation for at least six hundred thirty hours but less than eight hundred ten hours during that period, and is employed nine months of that period;

(i) One service credit month for each month in which compensation is earned for ninety or more hours;

(ii) One-half service credit month for each month in which compensation is earned for at least seventy hours but less than ninety hours; and

(iii) One-quarter service credit month for each month in which compensation is earned for less than seventy hours.

(2) The department shall adopt rules implementing this section.

NEW SECTION. Sec. 20. RCW 43.01.044 shall not result in any increase in retirement benefits. The rights extended to state officers and employees under RCW 43.01.044 are not intended to and shall not have any effect on retirement benefits under this chapter.

NEW SECTION. Sec. 21. (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts.

(2) The department shall adopt rules as necessary to implement this section.

NEW SECTION. Sec. 22. Beginning July 1, 1979, and every year thereafter, the department shall determine the following information for each retired member or beneficiary whose retirement allowance has been in effect for at least one year:

(1) The original dollar amount of the retirement allowance;

(2) The index for the calendar year prior to the effective date of the retirement allowance, to be known as "index A";

(3) The index for the calendar year prior to the date of determination, to be known as "index B"; and

(4) The ratio obtained when index B is divided by index A.

The value of the ratio obtained shall be the annual adjustment to the original retirement allowance and shall be applied beginning with the July payment. In no event, however, shall the annual adjustment:

(a) Produce a retirement allowance which is lower than the original retirement allowance;

(b) Exceed three percent in the initial annual adjustment; or

For the purposes of this section, "index" means, for any calendar year, that year's average consumer price index--Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

NEW SECTION. Sec. 23. (1) Upon retirement for service as prescribed in section 103 or 209 of this act or retirement for disability under section 105 or 210 of this act, a member shall elect to have the retirement allowance paid pursuant to one of the following options, calculated so as to be actuarially equivalent to each other.

(a) Standard allowance. A member electing this option shall receive a retirement allowance payable throughout such member's life. However, if the retiree dies before the total of the retirement allowance paid to such retiree equals the amount of such retiree's accumulated contributions at the time of retirement, then the balance shall be paid to the member's estate, or such person or persons, trust, or organization as the retiree shall have nominated by written designation duly executed and filed with the department; or if there be no such designated person or persons still living at the time of the retiree's death, then to the surviving spouse; or if there be neither such designated person or persons still living at the time of death nor a surviving spouse, then to the retiree's legal representative.

(b) The department shall adopt rules that allow a member to select a retirement option that pays the member a reduced retirement allowance and upon death, such portion of the member's reduced retirement allowance as the department by rule designates shall be continued throughout the life of and paid to a person nominated by the member by written designation duly executed and filed with the department at the time of retirement. The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option.

(2)(a) A member, if married, must provide the written consent of his or her spouse to the option selected under this section, except as provided in (b) of this subsection. If a member is married and both the member and the member's spouse do not give written consent to an option under this section, the department shall pay a joint and fifty percent survivor benefit calculated to be actuarially equivalent to the benefit options available under subsection (1) of this section unless spousal consent is not required as provided in (b) of this subsection.

(b) If a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 has been filed with the department at least thirty days prior to a member's retirement:

(i) The department shall honor the designation as if made by the member under subsection (1) of this section; and

(ii) The spousal consent provisions of (a) of this subsection do not apply.

NEW SECTION. Sec. 24. (1) Except as provided in section 7 of this act, no retiree under the provisions of plan II shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in section 2 of this act, RCW 41.40.010 or 41.32.010, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official.

(2) If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(3) The department shall adopt rules implementing this section.

NEW SECTION. Sec. 25. Sections 1 through 24 of this act apply to members of plan II and plan III.

NEW SECTION. Sec. 101. A member of the retirement system shall receive a retirement allowance equal to two percent of such member's average final compensation for each service credit year of service.

NEW SECTION. Sec. 102. (1) The director may pay a member eligible to receive a retirement allowance or the member's beneficiary, subject to the provisions of subsection (5) of this section, a lump sum payment in lieu of a monthly benefit if the initial monthly benefit computed in accordance with section 101 of this act would be less than fifty dollars. The lump sum payment shall be the greater of the actuarial equivalent of the monthly benefits or an amount equal to the individual's accumulated contributions plus accrued interest.

(2) A retiree or a beneficiary, subject to the provisions of subsection (5) of this section, who is receiving a regular monthly benefit of less than fifty dollars may request, in writing, to convert from a monthly benefit to a lump sum payment. If the director approves the conversion, the calculation of the actuarial equivalent of the total estimated regular benefit will be computed based on the beneficiary's age at the time the benefit initially accrued. The lump sum payment will be reduced to reflect any payments received on or after the initial benefit accrual date.

(3) Persons covered under the provisions of RCW 41.40.625 or subsection (1) of this section may upon returning to member status reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to reretiring, whichever comes first. In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

(4) If a member fails to meet the time limitations under subsection (3) of this section, reinstatement of all previous service will occur if the member pays the amount required under RCW 41.50.165(2). The amount, however, shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

(5) Only persons entitled to or receiving a service retirement allowance under section 101 of this act or an earned disability allowance under section 105 of this act qualify for participation under this section.

(6) It is the intent of the legislature that any member who receives a settlement under this section shall be deemed to be retired from this system.

NEW SECTION. Sec. 103. (1) NORMAL RETIREMENT. Any member with at least five service credit years who has attained at least age sixty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 101 of this act.

(2) EARLY RETIREMENT. Any member who has completed at least twenty service credit years and has attained age fifty-five shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 101 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

NEW SECTION. Sec. 104. The required contribution rates to the retirement system for both members and employers shall be established by the director from time to time as may be necessary upon the advice of the state actuary. The state actuary shall use the aggregate actuarial cost method to calculate contribution rates. The employer contribution rate calculated under this section shall be used only for the purpose of determining the amount of employer contributions to be deposited in the plan II fund from the total employer contributions collected under section 10 of this act.

Contribution rates required to fund the costs of the retirement system shall always be equal for members and employers, except as herein provided. Any adjustments in contribution rates required from time to time for future costs shall likewise be shared equally by the members and employers.

Any increase in the contribution rate required as the result of a failure of an employer to make any contribution required by this section shall be borne in full by the employer not making the contribution.

The director shall notify all employers of any pending adjustment in the required contribution rate and such increase shall be announced at least thirty days prior to the effective date of the change.

Members contributions required by this section shall be deducted from the members compensation earnable each payroll period. The members contribution and the employers contribution shall be remitted directly to the department within fifteen days following the end of the calendar month during which the payroll period ends.

NEW SECTION. Sec. 105. (1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the department upon recommendation of the department shall be eligible to receive an allowance under the provisions of sections 101 through 112 of this act. The member shall receive a monthly disability allowance computed as provided for in section 101 of this act and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age sixty-five.

Any member who receives an allowance under the provisions of this section shall be subject to comprehensive medical examinations as required by the department. If these medical examinations reveal that a member has recovered from the incapacitating disability and the member is offered reemployment by an employer at a comparable compensation, the member shall cease to be eligible for the allowance.

(2) If the recipient of a monthly retirement allowance under this section dies before the total of the retirement allowance paid to the recipient equals the amount of the accumulated contributions at the date of retirement, then the balance shall be paid to the member's estate, or the person or persons, trust, or organization as the recipient has nominated by written designation duly executed and filed with the director, or, if there is no designated person or persons still living at the time of the recipient's death, then to the surviving spouse, or, if there is no designated person or persons still living at the time of his or her death nor a surviving spouse, then to his or her legal representative.

NEW SECTION. Sec. 106. Any member or beneficiary eligible to receive a retirement allowance under the provisions of section 103, 105, or 107 of this act shall be eligible to commence receiving a retirement allowance after having filed written application with the department.

(1) Retirement allowances paid to members under the provisions of section 103 of this act shall accrue from the first day of the calendar month immediately following such member's separation from employment.

(2) Retirement allowances paid to vested members no longer in service, but qualifying for such an allowance pursuant to section 103 of this act, shall accrue from the first day of the calendar month immediately following such qualification.

(3) Disability allowances paid to disabled members under the provisions of section 105 of this act shall accrue from the first day of the calendar month immediately following such member's separation from employment for disability.

(4) Retirement allowances paid as death benefits under the provisions of section 107 of this act shall accrue from the first day of the calendar month immediately following the member's death.

NEW SECTION. Sec. 107. (1) Except as provided in RCW 11.07.010, if a member or a vested member who has not completed at least ten years of service dies, the amount of the accumulated contributions standing to such member's credit in the retirement system at the time of such member's death, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's estate, or such person or persons, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department. If there be no such designated person or persons still living at the time of the member's death, such member's accumulated contributions standing to such member's credit in the retirement system, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid to the member's surviving spouse as if in fact such spouse had been nominated by written designation, or if there be no such surviving spouse, then to such member's legal representatives.

(2) If a member who is eligible for retirement or a member who has completed at least ten years of service dies, the surviving spouse or eligible child or children shall elect to receive either:

(a) A retirement allowance computed as provided for in section 103 of this act, actuarially reduced by the amount of any lump sum benefit identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670 and actuarially adjusted to reflect a joint and one hundred percent survivor option under section 23 of this act and if the member was not eligible for normal retirement at the date of death a further reduction as described in section 103 of this act; if a surviving spouse who is receiving a retirement allowance dies leaving a child or children of the member under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority; if there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance, share and share alike, calculated as herein provided making the assumption that the ages of the spouse and member were equal at the time of the member's death; or

(b) The member's accumulated contributions, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670.

(3) If a member who is eligible for retirement or a member who has completed at least ten years of service dies and is not survived by a spouse or an eligible child, then the accumulated contributions standing to the member's credit, less any amount identified as owing to an obligee upon withdrawal of accumulated contributions pursuant to a court order filed under RCW 41.50.670, shall be paid:

(a) To a person or persons, estate, trust, or organization as the member shall have nominated by written designation duly executed and filed with the department; or

(b) If there is no such designated person or persons still living at the time of the member's death, then to the member's legal representatives.

NEW SECTION. Sec. 108. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided for under the provisions of sections 101 through 112 of this act.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The compensation earnable reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(3) Except as specified in subsection (4) of this section, a member shall be eligible to receive a maximum of two years service credit during a member's entire working career for those periods when a member is on an unpaid leave of absence authorized by an employer. Such credit may be obtained only if:

(a) The member makes both the plan II employer and member contributions plus interest as determined by the department for the period of the authorized leave of absence within five years of resumption of service or prior to retirement whichever comes sooner; or

(b) If not within five years of resumption of service but prior to retirement, pay the amount required under RCW 41.50.165(2).

The contributions required under (a) of this subsection shall be based on the average of the member's compensation earnable at both the time the authorized leave of absence was granted and the time the member resumed employment.

(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service. This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

(a) The member qualifies for service credit under this subsection if:

(i) Within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces; and

(ii) The member makes the employee contributions required under section 104 of this act within five years of resumption of service or prior to retirement, whichever comes sooner; or

(iii) Prior to retirement and not within ninety days of the member's honorable discharge or five years of resumption of service the member pays the amount required under RCW 41.50.165(2).

(b) Upon receipt of member contributions under (a)(ii) of this subsection, the department shall establish the member's service credit and shall bill the employer for its contribution required under section 104 of this act for the period of military service, plus interest as determined by the department.

(c) The contributions required under (a)(ii) of this subsection shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave.

NEW SECTION. Sec. 109. A member who separates or has separated after having completed at least five years of service may remain a member during the period of such member's absence from service for the exclusive purpose only of receiving a retirement allowance under the provisions of section 103 of this act if such member maintains the member's accumulated contributions intact.

NEW SECTION. Sec. 110. A member who ceases to be an employee of an employer except by service or disability retirement may request a refund of the member's accumulated contributions. The refund shall be made within ninety days following the receipt of the request and notification of termination through the contribution reporting system by the employer; except that in the case of death, an initial payment shall be made within thirty days of receipt of request for such payment and notification of termination through the contribution reporting system by the employer. A member who files a request for refund and subsequently enters into employment with another employer prior to the refund being made shall not be eligible for a refund. The refund of accumulated contributions shall terminate all rights to benefits under sections 101 through 112 of this act.

NEW SECTION. Sec. 111. (1) A member, who had left service and withdrawn the member's accumulated contributions, shall receive service credit for such prior service if the member restores all withdrawn accumulated contributions together with interest since the time of withdrawal as determined by the department.

The restoration of such funds must be completed within five years of the resumption of service or prior to retirement, whichever occurs first.

(2) If a member fails to meet the time limitations of subsection (1) of this section, the member may receive service credit destroyed by the withdrawn contributions if the amount required under RCW 41.50.165(2) is paid.

NEW SECTION. Sec. 112. Sections 101 through 111 and 114 of this act apply only to plan II members.

NEW SECTION. Sec. 113. A new section is added to chapter 41.40 RCW to read as follows:

(1) Effective September 1, 2000, the membership of all plan II members currently employed in eligible positions in a school district or educational service district and all plan II service credit for such members, is transferred to the Washington school employees' retirement system plan II. Plan II members who have withdrawn their member contributions for prior plan II service may restore contributions and service credit to the Washington school employees' retirement system plan II as provided under RCW 41.40.740.

(2) The membership and previous service credit of a plan II member not employed in an eligible position on September 1, 2000, will be transferred to the Washington school employees' retirement system plan II when he or she becomes employed in an eligible position. Plan II members not employed in an eligible position on September 1, 2000, who have withdrawn their member contributions for prior plan II service may restore contributions and service credit to the Washington school employees' retirement system plan II as provided under RCW 41.40.740.

(3) Members who restore contributions and service credit under subsection (1) or (2) of this section shall have their contributions and service credit transferred to the Washington school employees' retirement system.

NEW SECTION. Sec. 114. (1) Every plan II member employed by an employer in an eligible position has the option to make an irrevocable transfer to plan III.

(2) All service credit in plan II shall be transferred to the defined benefit portion of plan III.

(3) Any plan II member who wishes to transfer to plan III after February 28, 2001, may transfer during the month of January in any following year, provided that the member earns service credit for that month.

(4) The accumulated contributions in plan II, less fifty percent of any contributions made pursuant to RCW 41.50.165(2) shall be transferred to the member's account in the defined contribution portion established in chapter 41.34 RCW, pursuant to procedures developed by the department and subject to RCW 41.34.090. Contributions made pursuant to RCW 41.50.165(2) that are not transferred to the member's account shall be transferred to the fund created in RCW 41.50.075(2), except that interest earned on all such contributions shall be transferred to the member's account.

(5) The legislature reserves the right to discontinue the right to transfer under this section.

(6) Anyone previously retired from plan II is prohibited from transferring to plan III.

NEW SECTION. Sec. 201. (1) Sections 201 through 213 of this act apply only to plan III members.

(2) Plan III consists of two separate elements: (a) A defined benefit portion covered under this subchapter; and (b) a defined contribution portion covered under chapter 41.34 RCW.

(3) Unless otherwise specified, all references to "plan III" in this subchapter refer to the defined benefit portion of plan III.

NEW SECTION. Sec. 202. All classified employees who first become employed by an employer in an eligible position on or after September 1, 2000, shall be members of plan III.

NEW SECTION. Sec. 203. (1) A member of the retirement system shall receive a retirement allowance equal to one percent of such member's average final compensation for each service credit year.

(2) The retirement allowance payable under section 209 of this act to a member who separates after having completed at least twenty service credit years shall be increased by twenty-five one-hundredths of one percent, compounded for each month from the date of separation to the date that the retirement allowance commences.

NEW SECTION. Sec. 204. (1) Anyone who requests to transfer under section 114 of this act before March 1, 2001, and establishes service credit for January 2001, shall have their member account increased by sixty-five percent of:

(a) The member's public employees' retirement system plan II accumulated contributions as of January 1, 2000, less fifty percent of any payments made pursuant to RCW 41.50.165(2); or

(b) All amounts withdrawn after January 1, 2000, which are completely restored before March 1, 2001.

(2) If a member who requests to transfer dies before January 1, 2001, the additional payment provided by this section shall be paid to the member's estate, or the person or persons, trust, or organization the member nominated by written designation duly executed and filed with the department.

(3) The legislature reserves the right to modify or discontinue the right to an additional payment under this section for any plan II members who have not previously transferred to plan III.

NEW SECTION. Sec. 205. Any member or beneficiary eligible to receive a retirement allowance under the provisions of section 209, 210, or 212 of this act is eligible to commence receiving a retirement allowance after having filed written application with the department.

(1) Retirement allowances paid to members shall accrue from the first day of the calendar month immediately following such member's separation from employment.

(2) Retirement allowances payable to eligible members no longer in service, but qualifying for such an allowance pursuant to section 15 of this act shall accrue from the first day of the calendar month immediately following such qualification.

(3) Disability allowances paid to disabled members shall accrue from the first day of the calendar month immediately following such member's separation from employment for disability.

(4) Retirement allowances paid as death benefits shall accrue from the first day of the calendar month immediately following the member's death.

NEW SECTION. Sec. 206. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit.

(2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement.

(a) The member makes the contribution on behalf of the employer, plus interest, as determined by the department; and

(b) The member makes the employee contribution, plus interest, as determined by the department, to the defined contribution portion.

The contributions required shall be based on the average of the member's earnable compensation at both the time the authorized leave of absence was granted and the time the member resumed employment.

(4) A member who leaves the employ of an employer to enter the armed forces of the United States shall be entitled to retirement system service credit for up to five years of military service if within ninety days of the member's honorable discharge from the United States armed forces, the member applies for reemployment with the employer who employed the member immediately prior to the member entering the United States armed forces. This subsection shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act.

The department shall establish the member's service credit and shall bill the employer for its contribution required under section 213 of this act for the period of military service, plus interest as determined by the department. Service credit under this subsection may be obtained only if the member makes the employee contribution to the defined contribution portion as determined by the department.

The contributions required shall be based on the compensation the member would have earned if not on leave, or if that cannot be estimated with reasonable certainty, the compensation reported for the member in the year prior to when the member went on military leave.

NEW SECTION. Sec. 207. (1) Contributions on behalf of the employer paid by the employee to purchase plan III service credit shall be allocated to the defined benefit portion of plan III and shall not be refundable when paid to the fund described in RCW 41.50.075(4). Contributions on behalf of the employee shall be allocated to the member account. If the member fails to meet the statutory time limitations to purchase plan III service credit, it may be purchased under the provisions of RCW 41.50.165(2). One-half of the purchase payments under RCW 41.50.165(2), plus interest, shall be allocated to the member's account.

(2) No purchased plan III membership service will be credited until all payments required of the member are made, with interest. Upon receipt of all payments owed by the member, the department shall bill the employer for any contributions, plus interest, required to purchase membership service.

NEW SECTION. Sec. 208. (1) The director may pay a member eligible to receive a retirement allowance or the member's beneficiary a lump sum payment in lieu of a monthly benefit if the initial monthly benefit would be less than one hundred dollars. The one hundred dollar limit shall be increased annually as determined by the director. The lump sum payment shall be the actuarial equivalent of the monthly benefit.

(2) Persons covered under the provisions of subsection (1) of this section may upon returning to member status reinstate all previous service by depositing the lump sum payment received, with interest as computed by the director, within two years of returning to service or prior to retiring again, whichever comes first. In computing the amount due, the director shall exclude the accumulated value of the normal payments the member would have received while in beneficiary status if the lump sum payment had not occurred.

(3) Any member who receives a settlement under this section is deemed to be retired from this system.

NEW SECTION. Sec. 209. (1) NORMAL RETIREMENT. Any member who is at least age sixty-five and who has:

(a) Completed ten service credit years; or

(b) Completed five service credit years, including twelve service credit months after attaining age fifty-four; or

(c) Completed five service credit years by September 1, 2000, under the public employees' retirement system plan II and who transferred to plan III under section 114 of this act;

shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 203 of this act.

(2) EARLY RETIREMENT. Any member who has attained at least age fifty-five and has completed at least ten years of service shall be eligible to retire and to receive a retirement allowance computed according to the provisions of section 203 of this act, except that a member retiring pursuant to this subsection shall have the retirement allowance actuarially reduced to reflect the difference in the number of years between age at retirement and the attainment of age sixty-five.

NEW SECTION. Sec. 210. (1) A member of the retirement system who becomes totally incapacitated for continued employment by an employer as determined by the department shall be eligible to receive an allowance under the provisions of plan III. The member shall receive a monthly disability allowance computed as provided for in section 203 of this act and shall have this allowance actuarially reduced to reflect the difference in the number of years between age at disability and the attainment of age sixty-five.

(2) If the recipient of a monthly retirement allowance under this section dies, any further benefit payments shall be conditioned by the payment option selected by the retiree as provided in section 23 of this act.

NEW SECTION. Sec. 211. (1) Any member who elects to transfer to plan III and has eligible unrestored withdrawn contributions in plan II, may restore such contributions under the provisions of section 113 of this act with interest as determined by the department. The restored plan II service credit will be automatically transferred to plan III. Restoration payments will be transferred to the member account in plan III. If the member fails to meet the time limitations of section 113 of this act, they may restore such contributions under the provisions of RCW 41.50.165(2). The restored plan II service credit will be automatically transferred to plan III. One-half of the restoration payments under RCW 41.50.165(2) plus interest shall be allocated to the member's account.

(2) Any member who elects to transfer to plan III may purchase plan II service credit under section 113 of this act. Purchased plan II service credit will be automatically transferred to plan III. Contributions on behalf of the employer paid by the employee shall be allocated to the defined benefit portion of plan III and shall not be refundable when paid to the fund described in RCW 41.50.075(4). Contributions on behalf of the employee shall be allocated to the member account. If the member fails to meet the time limitations of section 113 of this act, they may subsequently restore such contributions under the provisions of RCW 41.50.165(2). Purchased plan II service credit will be automatically transferred to plan III. One-half of the payments under RCW 41.50.165(2), plus interest, shall be allocated to the member's account.

NEW SECTION. Sec. 212. If a member dies prior to retirement, the surviving spouse or eligible child or children shall receive a retirement allowance computed as provided in section 203 of this act actuarially reduced to reflect a joint and one hundred percent survivor option and if the member was not eligible for normal retirement at the date of death a further reduction as described in section 209 of this act.

If the surviving spouse who is receiving the retirement allowance dies leaving a child or children under the age of majority, then such child or children shall continue to receive an allowance in an amount equal to that which was being received by the surviving spouse, share and share alike, until such child or children reach the age of majority.

If there is no surviving spouse eligible to receive an allowance at the time of the member's death, such member's child or children under the age of majority shall receive an allowance, share and share alike. The allowance shall be calculated with the assumption that the age of the spouse and member were equal at the time of the member's death.

NEW SECTION. Sec. 213. The required contribution rates to the retirement system for employers shall be established by the director from time to time as may be necessary upon the advice of the state actuary. The state actuary shall use the aggregate actuarial cost method to calculate contribution rates. The employer contribution rate calculated under this section shall be used only for the purpose of determining the amount of employer contributions to be deposited in the plan II fund from the total employer contributions collected under section 10 of this act.

The employer's contribution shall be remitted directly to the department within fifteen days following the end of the calendar month during which the payroll period ends.

NEW SECTION. Sec. 214. Sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act constitute a new chapter in Title 41 RCW.

Sec. 301. RCW 41.34.020 and 1996 c 39 s 13 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated:

(1) "Actuary" means the state actuary or the office of the state actuary.

(2) "Board" means the employee retirement benefits board authorized in chapter 41.50 RCW.

(3) "Department" means the department of retirement systems.

(4)(a) "Compensation" for teachers for purposes of this chapter is the same as "earnable compensation" for plan III in chapter 41.32 RCW except that the compensation may be reported when paid, rather than when earned.

(b) "Compensation" for classified employees for purposes of this chapter is the same as "compensation earnable" for plan III in section 2 of this act, except that the compensation may be reported when paid, rather than when earned.

(5)(a) "Employer" for teachers for purposes of this chapter means the same as "employer" for plan III in chapter 41.32 RCW.

(b) "Employer" for classified employees for purposes of this chapter means the same as "employer" for plan III in section 2 of this act.

(6) "Member" means any employee included in the membership of a retirement system as provided for in chapter 41.32 RCW of plan III or chapter 41.-- RCW (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act) of plan III.

(7) "Member account" or "member's account" means the sum of the contributions and earnings on behalf of the member.

(8) "Retiree" means any member in receipt of an allowance or other benefit provided by this chapter resulting from service rendered to an employer by such member.

(9) "Teacher" means a member of the teachers' retirement system plan III as defined in RCW 41.32.010(29).

(10) "Classified employee" means a member of the school employees' retirement system plan III as defined in section 2 of this act.

Sec. 302. RCW 41.34.030 and 1995 c 239 s 203 are each amended to read as follows:

(1) This chapter applies only to members of plan III retirement systems created under chapters 41.32 and 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act) RCW.

(2) Plan III consists of two separate elements:

(a) A defined benefit portion covered under:

(i) Sections 101 through 117, chapter 239, Laws of 1995; or

(ii) Sections 1 through 25 and 201 through 213 of this act; and

(b) A defined contribution portion covered under this chapter. Unless specified otherwise, all references to "plan III" in this chapter refer to the defined contribution portion of plan III.

Sec. 303. RCW 41.34.060 and 1996 c 39 s 15 are each amended to read as follows:

(1) Except as provided in subsection (2) of this section, the member's account shall be invested by the state investment board. ((All contributions under this subsection shall be invested)) In order to reduce transaction costs and address liquidity issues, based upon recommendations of the state investment board, the department may require members to provide up to ninety days' notice prior to moving funds from the state investment board portfolio to self-directed investment options provided under subsection (2) of this section.

(a) For members of the retirement system as provided for in chapter 41.32 RCW of plan III, investment shall be in the same portfolio as that of the teachers' retirement system combined plan II and III fund under RCW 41.50.075(2).

(b) For members of the retirement system as provided for in chapter 41.-- RCW (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act) of plan III, investment shall be in the same portfolio as that of the school employees' retirement system combined plan II and III fund under RCW 41.50.075(4).

(2) Members may elect to self-direct their investments as ((authorized by the board, other than as provided in subsection (1) of this section. Expenses caused by self-directed investment shall be paid by the member in accordance with rules established by the board under RCW 41.50.088)) set forth in sections 307 and 707 of this act.

Sec. 304. RCW 41.34.080 and 1995 c 239 s 208 are each amended to read as follows:

(1) Subject to subsections (2) and (3) of this section, the right of a person to a pension, an annuity, a retirement allowance, any optional benefit, any other right accrued or accruing to any person under the provisions of this chapter, and the various funds created by chapter 239, Laws of 1995, and chapter . . ., Laws of 1998 (this act) and all moneys and investments and income thereof, is hereby exempt from any state, county, municipal, or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever, and shall be unassignable.

(2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions and that has been approved for deduction in accordance with rules that may be adopted by the state health care authority and/or the department. This section shall not be deemed to prohibit a beneficiary of a retirement allowance from authorizing deductions therefrom for payment of dues and other membership fees to any retirement association or organization the membership of which is composed of retired public employees, if a total of three hundred or more of such retired employees have authorized such deduction for payment to the same retirement association or organization.

(3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law.

Sec. 305. RCW 41.34.100 and 1995 c 239 s 325 are each amended to read as follows:

(1) The benefits provided pursuant to chapter 239, Laws of 1995 are not provided to employees as a matter of contractual right prior to July 1, 1996. The legislature retains the right to alter or abolish these benefits at any time prior to July 1, 1996.

(2) The benefits provided pursuant to chapter . . ., Laws of 1998 (this act) are not provided to employees as a matter of contractual right prior to September 1, 2000. The legislature retains the right to alter or abolish these benefits at any time prior to September 1, 2000.

NEW SECTION. Sec. 306. A new section is added to chapter 41.34 RCW to read as follows:

All moneys in members' accounts, all property and rights purchased therewith, and all income attributable thereto, shall be held in trust by the state investment board, as set forth under RCW 43.33A.030, for the exclusive benefit of the members and their beneficiaries.

NEW SECTION. Sec. 307. A new section is added to chapter 41.34 RCW to read as follows:

(1) The state investment board has the full authority to invest all self-directed investment moneys in accordance with RCW 43.84.150 and 43.33A.140, and cumulative investment directions received pursuant to RCW 41.34.060 and this section. In carrying out this authority the state investment board, after consultation with the employee retirement benefits board regarding any recommendations made pursuant to RCW 41.50.088(2), shall provide a set of options for members to choose from for self-directed investment.

(2) All investment and operating costs of the state investment board associated with making self-directed investments shall be paid by members and recovered under procedures agreed to by the board and the state investment board pursuant to the principles set forth in RCW 43.33A.160 and 43.84.160. All other expenses caused by self-directed investment shall be paid by the member in accordance with rules established by the board under RCW 41.50.088. With the exception of these expenses, all earnings from self-directed investments shall accrue to the member's account.

(3) The department shall keep or cause to be kept full and adequate accounts and records of each individual member's account. The department shall account for and report on the investment of defined contribution assets or may enter into an agreement with the state investment board for such accounting and reporting under this chapter.

NEW SECTION. Sec. 308. A new section is added to chapter 41.34 RCW to read as follows:

(1) A state board or commission, agency, or any officer, employee, or member thereof is not liable for any loss or deficiency resulting from member defined contribution investments selected or required pursuant to RCW 41.34.060 (1) or (2).

(2) Neither the board nor the state investment board, nor any officer, employee, or member thereof is liable for any loss or deficiency resulting from reasonable efforts to implement investment directions pursuant to RCW 41.34.060 (1) or (2).

NEW SECTION. Sec. 309. (1) On July 1, 1998, and January 1, 2000, the member account of a person meeting the requirements of this section shall be credited by the extraordinary investment gain amount.

(2) The following persons are eligible for the benefit provided in subsection (1) of this section:

(a) Any member of the teachers' retirement system plan III who earned service credit during the twelve-month period from September 1st to August 31st immediately preceding the distribution and had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution; or

(b) Any person in receipt of a benefit pursuant to RCW 41.32.875; or

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(iii) Completed five service credit years by July 1, 1996, under plan II and who transferred to plan III under RCW 41.32.817; or

(d) Any person who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who:

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(iii) Completed five service credit years by July 1, 1996, under plan II and who transferred to plan III under RCW 41.32.817.

(3) The extraordinary investment gain amount shall be calculated as follows:

(a) One-half of the sum of the value of the net assets held in trust for pension benefits in the public employees' retirement system plan II fund and the teachers' retirement system combined plan II and III fund at the close of the previous state fiscal year not including the amount attributable to member accounts;

(b) Multiplied by the amount which the compound average of investment returns on those assets over the previous four state fiscal years exceeds ten percent;

(i) The sum of the service credit on August 31st of the previous year of all persons eligible for the benefit provided in subsection (1) of this section; to

(ii) The sum of the service credit on August 31st of the previous year of:

(A) All persons eligible for the benefit provided in subsection (1) of this section;

(B) Any person who earned service credit in the teachers' retirement system plan II or the public employees' retirement system plan II during the twelve-month period from September 1st to August 31st immediately preceding the distribution;

(D) Any person with five or more years of service in the teachers' retirement system plan II or the public employees' retirement system plan II;

(d) Divided proportionally among persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31st of the previous year.

(4) The distribution provided for in this section shall be made solely from assets included in the teachers' retirement system combined plan II and III fund.

NEW SECTION. Sec. 310. Section 309 of this act is added to chapter 41.34 RCW, but because of its temporary nature, shall not be codified.

NEW SECTION. Sec. 311. The definitions in this section apply throughout this chapter unless the context requires otherwise.

(1) "Actuary" means the state actuary or the office of the state actuary.

(2) "Department" means the department of retirement systems.

(3) "Teacher" means any employee included in the membership of the teachers' retirement system as provided for in chapter 41.32 RCW.

(4) "Member account" or "member's account" means the sum of any contributions as provided for in chapter 41.34 RCW and the earnings on behalf of the member.

(5) "Classified employee" means the same as in section 2 of this act.

NEW SECTION. Sec. 312. (1) On January 1, 2002, and on January 1st of even-numbered years thereafter, the member account of a person meeting the requirements of this section shall be credited by the extraordinary investment gain amount.

(2) The following persons shall be eligible for the benefit provided in subsection (1) of this section:

(a) Any member of the teachers' retirement system plan III or the Washington school employees' retirement system plan III who earned service credit during the twelve-month period from September 1st to August 31st immediately preceding the distribution and had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution; or

(b) Any person in receipt of a benefit pursuant to RCW 41.32.875 or section 209 of this act; or

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(d) Any teacher who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by July 1, 1996, under plan II and who transferred to plan III under RCW 41.32.817; or

(e) Any classified employee who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by September 1, 2000, and who transferred to plan III under section 114 of this act; or

(f) Any person who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who:

(i) Completed ten service credit years; or

(ii) Completed five service credit years, including twelve service months after attaining age fifty-four; or

(g) Any teacher who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who has completed five service credit years by July 1, 1996, under plan II and who transferred to plan III under RCW 41.32.817; or

(h) Any classified employee who had a balance of at least one thousand dollars in their member account on August 31st of the year immediately preceding the distribution and who has completed five service credit years by September 1, 2000, and who transferred to plan III under section 114 of this act.

(3) The extraordinary investment gain amount shall be calculated as follows:

(a) One-half of the sum of the value of the net assets held in trust for pension benefits in the teachers' retirement system combined plan II and III fund and the Washington school employees' retirement system combined plan II and III fund at the close of the previous state fiscal year not including the amount attributable to member accounts;

(b) Multiplied by the amount which the compound average of investment returns on those assets over the previous four state fiscal years exceeds ten percent;

(i) The sum of the service credit on August 31st of the previous year of all persons eligible for the benefit provided in subsection (1) of this section; to

(ii) The sum of the service credit on August 31st of the previous year of:

(A) All persons eligible for the benefit provided in subsection (1) of this section;

(B) Any person who earned service credit in the teachers' retirement system plan II or the Washington school employees' retirement system plan II during the twelve-month period from September 1st to August 31st immediately preceding the distribution;

(D) Any person with five or more years of service in the teachers' retirement system plan II or the Washington school employees' retirement system plan II;

(d) Divided proportionally among persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31st of the previous year.

(4) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this distribution not granted prior to that time.

NEW SECTION. Sec. 313. (1) On March 1, 2001, the member account of a person meeting the requirements of this section shall be credited by the 1998 retroactive extraordinary investment gain amount and the 2000 retroactive extraordinary investment gain amount.

(2) The following persons shall be eligible for the benefits provided in subsection (1) of this section:

(a) Any classified employee who earned service credit during the twelve-month period from September 1st to August 31st immediately preceding the distribution and who transferred to plan III under section 114 of this act; or

(b) Any classified employee in receipt of a benefit pursuant to section 209 of this act and who has completed five service credit years by September 1, 2000, and who transferred to plan III under section 114 of this act; or

(c) Any classified employee who is a retiree pursuant to RCW 41.34.020(8) and who has completed five service credit years by September 1, 2000, and who transferred to plan III under section 114 of this act; or

(d) Any classified employee who has a balance of at least one thousand dollars in his or her member account and who has completed five service credit years by September 1, 2000, and who transferred to plan III under section 114 of this act.

(3) The 1998 retroactive extraordinary investment gain amount shall be calculated as follows:

(a) An amount equal to the average benefit per year of service paid to members of the teachers' retirement system plan III pursuant to section 309 of this act in 1998;

(b) Distributed to persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31, 1997.

(4) The 2000 retroactive extraordinary investment gain amount shall be calculated as follows:

(a) An amount equal to the average benefit per year of service paid to members of the teachers' retirement system plan III pursuant to section 309 of this act in 2000;

(b) Distributed to persons eligible for the benefit provided in subsection (1) of this section on the basis of their service credit total on August 31, 1999.

(5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to receive this distribution not granted prior to that time.

NEW SECTION. Sec. 314. Sections 311 through 313 of this act constitute a new chapter in Title 41 RCW.

Sec. 401. RCW 41.45.010 and 1995 c 239 s 305 are each amended to read as follows:

It is the intent of the legislature to provide a dependable and systematic process for funding the benefits provided to members and retirees of the public employees' retirement system, chapter 41.40 RCW; the teachers' retirement system, chapter 41.32 RCW; the law enforcement officers' and fire fighters' retirement system, chapter 41.26 RCW; the school employees' retirement system, chapter 41.-- RCW (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act); and the Washington state patrol retirement system, chapter 43.43 RCW.

The funding process established by this chapter is intended to achieve the following goals:

(1) To continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, the school employees' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II as provided by law;

(2) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, and the law enforcement officers' and fire fighters' retirement system plan I not later than June 30, 2024;

(3) To establish predictable long-term employer contribution rates which will remain a relatively constant proportion of the future state budgets; and

(4) To fund, to the extent feasible, benefit increases for plan I members and all benefits for plan II and III members over the working lives of those members so that the cost of those benefits are paid by the taxpayers who receive the benefit of those members' service.

Sec. 402. RCW 41.45.020 and 1995 c 239 s 306 are each amended to read as follows:

As used in this chapter, the following terms have the meanings indicated unless the context clearly requires otherwise.

(1) "Council" means the economic and revenue forecast council created in RCW 82.33.010.

(2) "Department" means the department of retirement systems.

(3) "Law enforcement officers' and fire fighters' retirement system plan I" and "law enforcement officers' and fire fighters' retirement system plan II" mean the benefits and funding provisions under chapter 41.26 RCW.

(4) "Public employees' retirement system plan I" and "public employees' retirement system plan II" mean the benefits and funding provisions under chapter 41.40 RCW.

(5) "Teachers' retirement system plan I," "teachers' retirement system plan II," and "teachers' retirement system plan III" mean the benefits and funding provisions under chapter 41.32 RCW.

(6) "School employees' retirement system plan II" and "school employees' retirement system plan III" mean the benefits and funding provisions under chapter 41.-- RCW (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act).

(7) "Washington state patrol retirement system" means the retirement benefits provided under chapter 43.43 RCW.

(((7))) (8) "Unfunded liability" means the unfunded actuarial accrued liability of a retirement system.

(((8))) (9) "Actuary" or "state actuary" means the state actuary employed under chapter 44.44 RCW.

(((9))) (10) "State retirement systems" means the retirement systems listed in RCW 41.50.030.

(11) "Classified employee" means a member of the Washington school employees' retirement system plan II or plan III as defined in section 2 of this act.

(12) "Teacher" means a member of the teachers' retirement system as defined in RCW 41.32.010(15).

Sec. 403. RCW 41.45.050 and 1995 c 239 s 308 are each amended to read as follows:

(1) Employers of members of the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, and the Washington state patrol retirement system shall make contributions to those systems based on the rates established in RCW 41.45.060 and 41.45.070.

(2) The state shall make contributions to the law enforcement officers' and fire fighters' retirement system based on the rates established in RCW 41.45.060 and 41.45.070. The state treasurer shall transfer the required contributions each month on the basis of salary data provided by the department.

(3) The department shall bill employers, and the state shall make contributions to the law enforcement officers' and fire fighters' retirement system, using the combined rates established in RCW 41.45.060 and 41.45.070 regardless of the level of pension funding provided in the biennial budget. Any member of an affected retirement system may, by mandamus or other appropriate proceeding, require the transfer and payment of funds as directed in this section.

(4) The contributions received for the public employees' retirement system shall be allocated between the public employees' retirement system plan I fund and public employees' retirement system plan II fund as follows: The contributions necessary to fully fund the public employees' retirement system plan II employer contribution required by RCW 41.40.650 shall first be deposited in the public employees' retirement system plan II fund. All remaining public employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan I fund.

(5) The contributions received for the teachers' retirement system shall be allocated between the plan I fund and the combined plan II and plan III fund as follows: The contributions necessary to fully fund the combined plan II and plan III employer contribution shall first be deposited in the combined plan II and plan III fund. All remaining teachers' retirement system employer contributions shall be deposited in the plan I fund.

(6) The contributions received for the school employees' retirement system shall be allocated between the public employees' retirement system plan I fund and the school employees' retirement system combined plan II and plan III fund as follows: The contributions necessary to fully fund the combined plan II and plan III employer contribution shall first be deposited in the combined plan II and plan III fund. All remaining school employees' retirement system employer contributions shall be deposited in the public employees' retirement system plan I fund.

(7) The contributions received under RCW 41.26.450 for the law enforcement officers' and fire fighters' retirement system shall be allocated between the law enforcement officers' and fire fighters' retirement system plan I and the law enforcement officers' and fire fighters' retirement system plan II fund as follows: The contributions necessary to fully fund the law enforcement officers' and fire fighters' retirement system plan II employer contributions shall be first deposited in the law enforcement officers' and fire fighters' retirement system plan II fund. All remaining law enforcement officers' and fire fighters' retirement system employer contributions shall be deposited in the law enforcement officers' and fire fighters' retirement system plan I fund.

Sec. 404. RCW 41.45.060 and 1995 c 239 s 309 are each amended to read as follows:

(1) The state actuary shall provide actuarial valuation results based on the assumptions adopted under RCW 41.45.030.

(2) Not later than September 30, 1996, and every two years thereafter, consistent with the assumptions adopted under RCW 41.45.030, the council shall adopt both:

(a) A basic state contribution rate for the law enforcement officers' and fire fighters' retirement system; ((and))

(b) Basic employer contribution rates for the public employees' retirement system plan I, the teachers' retirement system plan I, and the Washington state patrol retirement system to be used in the ensuing biennial period; and

(c) A basic employer contribution rate for the school employees' retirement system for funding the public employees' retirement system plan I.

(3) The employer and state contribution rates adopted by the council shall be the level percentages of pay that are needed:

(a) To fully amortize the total costs of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and the unfunded liability of the Washington state patrol retirement system not later than June 30, 2024; and

(b) To also continue to fully fund the public employees' retirement system plan II, the teachers' retirement system plans II and III, the school employees' retirement system plans II and III, and the law enforcement officers' and fire fighters' retirement system plan II in accordance with RCW 41.40.650, 41.26.450, and this section.

(4) The aggregate actuarial cost method shall be used to calculate a combined plan II and III employer contribution rate.

(5) The council shall immediately notify the directors of the office of financial management and department of retirement systems of the state and employer contribution rates adopted.

(6) The director of the department of retirement systems shall collect those rates adopted by the council.

Sec. 405. RCW 41.45.061 and 1997 c 10 s 2 are each amended to read as follows:

(1) The required contribution rate for members of the plan II teachers' retirement system shall be fixed at the rates in effect on July 1, 1996, subject to the following:

(a) Beginning September 1, 1997, except as provided in (b) of this subsection, the employee contribution rate shall not exceed the employer plan II and III rates adopted under RCW 41.45.060 and 41.45.070 for the teachers' retirement system;

(b) In addition, the employee contribution rate for plan II shall be increased by fifty percent of the contribution rate increase caused by any plan II benefit increase passed after July 1, 1996((.

(2) The required plan II and III contribution rates for employers shall be adopted in the manner described in RCW 41.45.060));

(c) In addition, the employee contribution rate for plan II shall not be increased as a result of any distributions pursuant to sections 309 and 312 of this act.

(2) The required contribution rate for members of the school employees' retirement system plan II shall be fixed at the rates in effect on September 1, 2000, for members of the public employees' retirement system plan II, subject to the following:

(a) Except as provided in (b) of this subsection, the member contribution rate shall not exceed the school employees' retirement system employer plan II and III contribution rate adopted under RCW 41.45.060 and 41.45.070;

(b) The member contribution rate for the school employees' retirement system plan II shall be increased by fifty percent of the contribution rate increase caused by any plan II benefit increase passed after September 1, 2000.

(3) The employee contribution rate for plan II shall not be increased as a result of any distributions pursuant to sections 312 and 313 of this act.

(4) The required plan II and III contribution rates for employers shall be adopted in the manner described in RCW 41.45.060.

Sec. 406. RCW 41.45.070 and 1995 c 239 s 310 are each amended to read as follows:

(1) In addition to the basic employer contribution rate established in RCW 41.45.060, the department shall also charge employers of public employees' retirement system, teachers' retirement system, school employees' retirement system, or Washington state patrol retirement system members an additional supplemental rate to pay for the cost of additional benefits, if any, granted to members of those systems. Except as provided in subsection (6) of this section, the supplemental contribution rates required by this section shall be calculated by the state actuary and shall be charged regardless of language to the contrary contained in the statute which authorizes additional benefits.

(2) In addition to the basic state contribution rate established in RCW 41.45.060 for the law enforcement officers' and fire fighters' retirement system the department shall also establish a supplemental rate to pay for the cost of additional benefits, if any, granted to members of the law enforcement officers' and fire fighters' retirement system. This supplemental rate shall be calculated by the state actuary and the state treasurer shall transfer the additional required contributions regardless of language to the contrary contained in the statute which authorizes the additional benefits.

(3) The supplemental rate charged under this section to fund benefit increases provided to active members of the public employees' retirement system plan I, the teachers' retirement system plan I, the law enforcement officers' and fire fighters' retirement system plan I, and Washington state patrol retirement system, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit not later than June 30, 2024.

(4) The supplemental rate charged under this section to fund benefit increases provided to active and retired members of the public employees' retirement system plan II, the teachers' retirement system plan II and plan III, the school employees' retirement system plan II and plan III, or the law enforcement officers' and fire fighters' retirement system plan II, shall be calculated as the level percentage of all members' pay needed to fund the cost of the benefit, as calculated under RCW 41.40.650((, 41.32.775,)) or 41.26.450, respectively.

(5) The supplemental rate charged under this section to fund postretirement adjustments which are provided on a nonautomatic basis to current retirees shall be calculated as the percentage of pay needed to fund the adjustments as they are paid to the retirees. The supplemental rate charged under this section to fund automatic postretirement adjustments for active or retired members of the public employees' retirement system plan I and the teachers' retirement system plan I shall be calculated as the level percentage of pay needed to fund the cost of the automatic adjustments not later than June 30, 2024.

(6) A supplemental rate shall not be charged to pay for the cost of additional benefits granted to members pursuant to chapter 41.-- RCW (sections 311 through 313 of this act) and section 309, chapter . . ., Laws of 1998 (section 309 of this act).

NEW SECTION. Sec. 407. A new section is added to chapter 41.45 RCW to read as follows:

Upon the advice of the state actuary, the state treasurer shall divide the assets in the public employees' retirement system plan II as of September 1, 2000, in such a manner that sufficient assets remain in plan II to maintain the employee contribution rate calculated in the latest actuarial valuation of the public employees' retirement system plan II. The state actuary shall take into account changes in assets that occur between the latest actuarial valuation and the date of transfer. The balance of the assets shall be transferred to the Washington school employees' retirement system plan II and III.

Sec. 501. RCW 41.50.030 and 1995 c 239 s 316 are each amended to read as follows:

(1) As soon as possible but not more than one hundred and eighty days after March 19, 1976, there is transferred to the department of retirement systems, except as otherwise provided in this chapter, all powers, duties, and functions of:

(a) The Washington public employees' retirement system;

(b) The Washington state teachers' retirement system;

(d) The Washington state patrol retirement system;

(e) The Washington judicial retirement system; and

(f) The state treasurer with respect to the administration of the judges' retirement fund imposed pursuant to chapter 2.12 RCW.

(2) On July 1, 1996, there is transferred to the department all powers, duties, and functions of the deferred compensation committee.

(3) The department shall administer chapter 41.34 RCW.

(4) The department shall administer the Washington school employees' retirement system created under chapter 41.-- RCW (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act).

Sec. 502. RCW 41.50.060 and 1995 c 239 s 318 are each amended to read as follows:

The director may delegate the performance of such powers, duties, and functions, other than those relating to rule making, to employees of the department, but the director shall remain and be responsible for the official acts of the employees of the department.

The director shall be responsible for the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, the judicial retirement system, the law enforcement officers' and fire fighters' retirement system, and the Washington state patrol retirement system. The director shall also be responsible for the deferred compensation program.

Sec. 503. RCW 41.50.075 and 1996 c 39 s 16 are each amended to read as follows:

(1) Two funds are hereby created and established in the state treasury to be known as the Washington law enforcement officers' and fire fighters' system plan I retirement fund, and the Washington law enforcement officers' and fire fighters' system plan II retirement fund which shall consist of all moneys paid into them in accordance with the provisions of this chapter and chapter 41.26 RCW, whether such moneys take the form of cash, securities, or other assets. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the law enforcement officers' and fire fighters' retirement system plan II.

(2) All of the assets of the Washington state teachers' retirement system shall be credited according to the purposes for which they are held, to two funds to be maintained in the state treasury, namely, the teachers' retirement system plan I fund and the teachers' retirement system combined plan II and III fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan I, and the combined plan II and III fund shall consist of all moneys paid to finance the benefits provided to members of the Washington state teachers' retirement system plan II and III.

(3) There is hereby established in the state treasury two separate funds, namely the public employees' retirement system plan I fund and the public employees' retirement system plan II fund. The plan I fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan I, and the plan II fund shall consist of all moneys paid to finance the benefits provided to members of the public employees' retirement system plan II.

(4) There is hereby established in the state treasury the school employees' retirement system combined plan II and III fund. The combined plan II and III fund shall consist of all moneys paid to finance the benefits provided to members of the school employees' retirement system plan II and plan III.

Sec. 504. RCW 41.50.080 and 1981 c 3 s 34 are each amended to read as follows:

The state investment board shall provide for the investment of all funds of the Washington public employees' retirement system, the teachers' retirement system, the school employees' retirement system, the Washington law enforcement officers' and fire fighters' retirement system, the Washington state patrol retirement system, the Washington judicial retirement system, and the judges' retirement fund, pursuant to RCW 43.84.150, and may sell or exchange investments acquired in the exercise of that authority.

Sec. 505. RCW 41.50.086 and 1995 c 239 s 301 are each amended to read as follows:

(1) The employee retirement benefits board is created within the department of retirement systems.

(2) The board shall be composed of ((eight)) eleven members appointed by the governor and one ex officio member as follows:

(a) Three members representing the public employees' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be two years for the retired member, one year for one active member, and three years for the remaining active member.

(b) Three members representing the teachers' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be one year for the retired member, two years for one active member, and three years for the remaining active member.

(c) Three members representing classified employees of school districts and educational service districts: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be one year for the retired member, two years for one active member, and three years for the remaining active member.

(d) Two members with experience in defined contribution plan administration. The initial term for these members shall be two years for one member and three years for the remaining member.

(((d))) (e) The director of the department shall serve ex officio and shall be the chair of the board.

(3) After the initial appointments, members shall be appointed to three-year terms.

(4) The board shall meet at least quarterly during the calendar year, at the call of the chair.

(5) Members of the board shall serve without compensation but shall receive travel expenses as provided for in RCW 43.03.050 and 43.03.060. Such travel expenses shall be reimbursed by the department from the retirement system expense fund.

(6) The board shall adopt rules governing its procedures and conduct of business.

(7) The actuary shall perform all actuarial services for the board and provide advice and support.

(((8) The state investment board shall provide advice and support to the board.))

Sec. 506. RCW 41.50.086 and 1995 c 239 s 301 are each amended to read as follows:

(1) The employee retirement benefits board is created within the department of retirement systems.

(2) The board shall be composed of ((eight)) eleven members appointed by the governor and one ex officio member as follows:

(c) Three members representing the school employees' retirement system: One retired, two active. The members shall be appointed from a list of nominations submitted by organizations representing each category. The initial term of appointment shall be one year for the retired member, two years for one active member, and three years for the remaining active member.

(d) Two members with experience in defined contribution plan administration. The initial term for these members shall be two years for one member and three years for the remaining member.

(((d))) (e) The director of the department shall serve ex officio and shall be the chair of the board.

(3) After the initial appointments, members shall be appointed to three-year terms.

(4) The board shall meet at least quarterly during the calendar year, at the call of the chair.

(6) The board shall adopt rules governing its procedures and conduct of business.

(7) The actuary shall perform all actuarial services for the board and provide advice and support.

(((8) The state investment board shall provide advice and support to the board.))

Sec. 507. RCW 41.50.088 and 1995 c 239 s 302 are each amended to read as follows:

(1) The board shall adopt rules as necessary and exercise all the powers and perform all duties prescribed by law with respect to:

(((1) The preselection of options for members to choose from for self-directed investment deemed by the board to be in the best interest of the member. At the board's request, the state investment board may provide investment options for purposes of this subsection;

(2))) (a) The board shall recommend to the state investment board types of options for member self-directed investment in the teachers' retirement system plan III and the school employees' retirement system plan III, as deemed by the board to be reflective of the members' preferences.

(b) The selection of optional benefit payment schedules available to members and survivors of members upon the death, disability, retirement, or termination of the member. The optional benefit payments may include but not be limited to: Fixed and participating annuities, joint and survivor annuities, and payments that bridge to social security or defined benefit plan payments;

(((3))) (c) Approval of actuarially equivalent annuities that may be purchased from the combined plan II and plan III funds under RCW 41.50.075 (2) or (3); and

(((4))) (d) Determination of the basis for administrative charges to the self-directed investment fund to offset self-directed account expenses; ((and

(5))) (2) Selection of investment options for the deferred compensation program.

Sec. 508. RCW 41.50.110 and 1996 c 39 s 17 are each amended to read as follows:

(1) Except as provided by RCW 41.50.255 and subsection (6) of this section, all expenses of the administration of the department and the expenses of administration of the retirement systems created in chapters 2.10, 2.12, 41.26, 41.32, 41.40, 41.34, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act) and 43.43 RCW shall be paid from the department of retirement systems expense fund.

(2) In order to reimburse the department of retirement systems expense fund on an equitable basis the department shall ascertain and report to each employer, as defined in RCW 41.26.030, 41.32.010, section 2 of this act, or 41.40.010, the sum necessary to defray its proportional share of the entire expense of the administration of the retirement system that the employer participates in during the ensuing biennium or fiscal year whichever may be required. Such sum is to be computed in an amount directly proportional to the estimated entire expense of the administration as the ratio of monthly salaries of the employer's members bears to the total salaries of all members in the entire system. It shall then be the duty of all such employers to include in their budgets or otherwise provide the amounts so required.

(3) The department shall compute and bill each employer, as defined in RCW 41.26.030, 41.32.010, section 2 of this act, or 41.40.010, at the end of each month for the amount due for that month to the department of retirement systems expense fund and the same shall be paid as are its other obligations. Such computation as to each employer shall be made on a percentage rate of salary established by the department. However, the department may at its discretion establish a system of billing based upon calendar year quarters in which event the said billing shall be at the end of each such quarter.

(4) The director may adjust the expense fund contribution rate for each system at any time when necessary to reflect unanticipated costs or savings in administering the department.

(5) An employer who fails to submit timely and accurate reports to the department may be assessed an additional fee related to the increased costs incurred by the department in processing the deficient reports. Fees paid under this subsection shall be deposited in the retirement system expense fund.

(a) Every six months the department shall determine the amount of an employer's fee by reviewing the timeliness and accuracy of the reports submitted by the employer in the preceding six months. If those reports were not both timely and accurate the department may prospectively assess an additional fee under this subsection.

(b) An additional fee assessed by the department under this subsection shall not exceed fifty percent of the standard fee.

(6) Expenses other than those under RCW 41.34.060(2) shall be paid pursuant to subsection (1) of this section.

Sec. 509. RCW 41.50.150 and 1997 c 221 s 1 are each amended to read as follows:

(1) The employer of any employee whose retirement benefits are based in part on excess compensation, as defined in this section, shall, upon receipt of a billing from the department, pay into the appropriate retirement system the present value at the time of the employee's retirement of the total estimated cost of all present and future benefits from the retirement system attributable to the excess compensation. The state actuary shall determine the estimated cost using the same method and procedure as is used in preparing fiscal note costs for the legislature. However, the director may in the director's discretion decline to bill the employer if the amount due is less than fifty dollars. Accounts unsettled within thirty days of the receipt of the billing shall be assessed an interest penalty of one percent of the amount due for each month or fraction thereof beyond the original thirty-day period.

(2) "Excess compensation," as used in this section, includes the following payments, if used in the calculation of the employee's retirement allowance:

(a) A cash out of unused annual leave in excess of two hundred forty hours of such leave. "Cash out" for purposes of this subsection means:

(i) Any payment in lieu of an accrual of annual leave; or

(ii) Any payment added to salary or wages, concurrent with a reduction of annual leave;

(b) A cash out of any other form of leave;

(c) A payment for, or in lieu of, any personal expense or transportation allowance to the extent that payment qualifies as reportable compensation in the member's retirement system;

(d) The portion of any payment, including overtime payments, that exceeds twice the regular daily or hourly rate of pay; and

(e) Any termination or severance payment.

(3) This section applies to the retirement systems listed in RCW 41.50.030 and to retirements occurring on or after March 15, 1984. Nothing in this section is intended to amend or determine the meaning of any definition in chapter 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 43.43 RCW or to determine in any manner what payments are includable in the calculation of a retirement allowance under such chapters.

(4) An employer is not relieved of liability under this section because of the death of any person either before or after the billing from the department.

Sec. 510. RCW 41.50.152 and 1995 c 387 s 1 are each amended to read as follows:

(1) Except as limited by subsection (3) of this section, the governing body of an employer under chapter 41.32, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 41.40 RCW shall comply with the provisions of subsection (2) of this section prior to executing a contract or collective bargaining agreement with members under chapter 41.32, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 41.40 RCW which provides for:

(a) A cash out of unused annual leave in excess of two hundred forty hours of such leave. "Cash out" for purposes of this subsection means any payment in lieu of an accrual of annual leave or any payment added to regular salary, concurrent with a reduction of annual leave;

(b) A cash out of any other form of leave;

(d) The portion of any payment, including overtime payments, that exceeds twice the regular rate of pay; or

(e) Any other termination or severance payment.

(2) Any governing body entering into a contract that includes a compensation provision listed in subsection (1) of this section shall do so only after public notice in compliance with the open public meetings act, chapter 42.30 RCW. This notification requirement may be accomplished as part of the approval process for adopting a contract in whole, and does not require separate or additional open public meetings. At the public meeting, full disclosure shall be made of the nature of the proposed compensation provision, and the employer's estimate of the excess compensation billings under RCW 41.50.150 that the employing entity would have to pay as a result of the proposed compensation provision. The employer shall notify the department of its compliance with this section at the time the department bills the employer under RCW ((41.40.150)) 41.50.150 for the pension impact of compensation provisions listed in subsection (1) of this section that are adopted after July 23, 1995.

(3) The requirements of subsection (2) of this section shall not apply to the adoption of a compensation provision listed in subsection (1) of this section if the compensation would not be includable in calculating benefits under chapter 41.32, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 41.40 RCW for the employees covered by the compensation provision.

Sec. 511. RCW 41.50.255 and 1995 c 281 s 1 are each amended to read as follows:

The director is authorized to pay from the interest earnings of the trust funds of the public employees' retirement system, the teachers' retirement system, the Washington state patrol retirement system, the Washington judicial retirement system, the judges' retirement system, the school district employees' retirement system, or the law enforcement officers' and fire fighters' retirement system lawful obligations of the appropriate system for legal expenses and medical expenses which expenses are primarily incurred for the purpose of protecting the appropriate trust fund or are incurred in compliance with statutes governing such funds.

The term "legal expense" includes, but is not limited to, legal services provided through the legal services revolving fund, fees for expert witnesses, travel expenses, fees for court reporters, cost of transcript preparation, and reproduction of documents.

The term "medical costs" includes, but is not limited to, expenses for the medical examination or reexamination of members or retirees, the costs of preparation of medical reports, and fees charged by medical professionals for attendance at discovery proceedings or hearings.

The director may also pay from the interest earnings of the trust funds specified in this section costs incurred in investigating fraud and collecting overpayments, including expenses incurred to review and investigate cases of possible fraud against the trust funds and collection agency fees and other costs incurred in recovering overpayments. Recovered funds must be returned to the appropriate trust funds.

Sec. 512. RCW 41.50.500 and 1991 c 365 s 1 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 41.50.500 through 41.50.650, 41.50.670 through 41.50.720, and 26.09.138.

(1) "Benefits" means periodic retirement payments or a withdrawal of accumulated contributions.

(2) "Disposable benefits" means that part of the benefits of an individual remaining after the deduction from those benefits of any amount required by law to be withheld. The term "required by law to be withheld" does not include any deduction elective to the member.

(3) "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, invalidity, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state.

(4) "Mandatory benefits assignment order" means an order issued to the department of retirement systems pursuant to RCW 41.50.570 to withhold and deliver benefits payable to an obligor under chapter 2.10, 2.12, 41.26, 41.32, 41.40, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 43.43 RCW.

(5) "Obligee" means an ex spouse or spouse to whom a duty of spousal maintenance or property division obligation is owed.

(6) "Obligor" means the spouse or ex spouse owing a duty of spousal maintenance or a property division obligation.

(7) "Periodic retirement payments" means periodic payments of retirement allowances, including but not limited to service retirement allowances, disability retirement allowances, and survivors' allowances. The term does not include a withdrawal of accumulated contributions.

(8) "Property division obligation" means any outstanding court-ordered property division or court-approved property settlement obligation incident to a decree of divorce, dissolution, or legal separation.

(9) "Standard allowance" means a benefit payment option selected under RCW 2.10.146(1)(a), 41.26.460(1)(a), 41.32.785(1)(a), 41.40.188(1)(a), ((or)) 41.40.660(1), or section 23 of this act that ceases upon the death of the retiree. Standard allowance also means the benefit allowance provided under RCW 2.10.110, 2.10.130, 43.43.260, 41.26.100, 41.26.130(1)(a), or chapter 2.12 RCW. Standard allowance also means the maximum retirement allowance available under RCW 41.32.530(1) following member withdrawal of accumulated contributions, if any.

(10) "Withdrawal of accumulated contributions" means a lump sum payment to a retirement system member of all or a part of the member's accumulated contributions, including accrued interest, at the request of the member including any lump sum amount paid upon the death of the member.

Sec. 513. RCW 41.50.670 and 1996 c 39 s 18 are each amended to read as follows:

(1) Nothing in this chapter regarding mandatory assignment of benefits to enforce a spousal maintenance obligation shall abridge the right of an obligee to direct payments of retirement benefits to satisfy a property division obligation ordered pursuant to a court decree of dissolution or legal separation or any court order or court-approved property settlement agreement incident to any court decree of dissolution or legal separation as provided in RCW 2.10.180, 2.12.090, 41.04.310, 41.04.320, 41.04.330, 41.26.053, 41.32.052, section 11 of this act, 41.34.070(3), 41.40.052, 43.43.310, or 26.09.138, as those statutes existed before July 1, 1987, and as those statutes exist on and after July 28, 1991. The department shall pay benefits under this chapter in a lump sum or as a portion of periodic retirement payments as expressly provided by the dissolution order. A dissolution order may not order the department to pay a periodic retirement payment or lump sum unless that payment is specifically authorized under the provisions of chapter 2.10, 2.12, 41.26, 41.32, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), 41.34, 41.40, or 43.43 RCW, as applicable.

(2) The department shall pay directly to an obligee the amount of periodic retirement payments or lump sum payment, as appropriate, specified in the dissolution order if the dissolution order filed with the department pursuant to subsection (1) of this section includes a provision that states in the following form:

If . . . . . . (the obligor) receives periodic retirement payments as defined in RCW 41.50.500, the department of retirement systems shall pay to . . . . . . (the obligee) . . . . . . dollars from such payments or . . . percent of such payments. If the obligor's debt is expressed as a percentage of his or her periodic retirement payment and the obligee does not have a survivorship interest in the obligor's benefit, the amount received by the obligee shall be the percentage of the periodic retirement payment that the obligor would have received had he or she selected a standard allowance.

If . . . . . . (the obligor) requests or has requested a withdrawal of accumulated contributions as defined in RCW 41.50.500, or becomes eligible for a lump sum death benefit, the department of retirement systems shall pay to . . . . . . (the obligee) . . . . . . dollars plus interest at the rate paid by the department of retirement systems on member contributions. Such interest to accrue from the date of this order's entry with the court of record.

(3) This section does not require a member to select a standard allowance upon retirement nor does it require the department to recalculate the amount of a retiree's periodic retirement payment based on a change in survivor option.

(4) A court order under this section may not order the department to pay more than seventy-five percent of an obligor's periodic retirement payment to an obligee.

(5) Persons whose court decrees were entered between July 1, 1987, and July 28, 1991, shall also be entitled to receive direct payments of retirement benefits to satisfy court-ordered property divisions if the dissolution orders comply or are modified to comply with this section and RCW 41.50.680 through 41.50.720 and, as applicable, RCW 2.10.180, 2.12.090, 41.26.053, 41.32.052, section 11 of this act, 41.34.070, 41.40.052, 43.43.310, and 26.09.138.

(6) The obligee must file a copy of the dissolution order with the department within ninety days of that order's entry with the court of record.

(7) A division of benefits pursuant to a dissolution order under this section shall be based upon the obligor's gross benefit prior to any deductions. If the department is required to withhold a portion of the member's benefit pursuant to 26 U.S.C. Sec. 3402 and the sum of that amount plus the amount owed to the obligee exceeds the total benefit, the department shall satisfy the withholding requirements under 26 U.S.C. Sec. 3402 and then pay the remainder to the obligee. The provisions of this subsection do not apply to amounts withheld pursuant to 26 U.S.C. Sec. 3402(i).

Sec. 514. RCW 41.50.790 and 1996 c 175 s 1 are each amended to read as follows:

(1) The department shall designate an obligee as a survivor beneficiary of a member under RCW 2.10.146, 41.26.460, 41.32.530, 41.32.785, section 23 of this act, 41.40.188, or 41.40.660 if the department has been served by registered or certified mail with a dissolution order as defined in RCW 41.50.500 at least thirty days prior to the member's retirement. The department's duty to comply with the dissolution order arises only if the order contains a provision that states in substantially the following form:

When . . . . . . (the obligor) applies for retirement the department shall designate . . . . . . (the obligee) as survivor beneficiary with a . . . . . . survivor benefit.

The survivor benefit designated in the dissolution order must be consistent with the survivor benefit options authorized by statute or administrative rule.

(2) The obligee's entitlement to a survivor benefit pursuant to a dissolution order filed with the department in compliance with subsection (1) of this section shall cease upon the death of the obligee.

(3)(a) A subsequent dissolution order may order the department to divide a survivor benefit between a survivor beneficiary and an alternate payee. In order to divide a survivor benefit between more than one payee, the dissolution order must:

(i) Be ordered by a court of competent jurisdiction following notice to the survivor beneficiary;

(ii) Contain a provision that complies with subsection (1) of this section designating the survivor beneficiary;

(iii) Contain a provision clearly identifying the alternate payee or payees; and

(iv) Specify the proportional division of the benefit between the survivor beneficiary and the alternate payee or payees.

(b) The department will calculate actuarial adjustment for the court-ordered survivor benefit based upon the life of the survivor beneficiary.

(c) If the survivor beneficiary dies, the department shall terminate the benefit. If the alternate payee predeceases the survivor beneficiary, all entitlement of the alternate payee to a benefit ceases and the entire benefit will revert to the survivor beneficiary.

(d) For purposes of this section, "survivor beneficiary" means:

(i) The obligee designated in the provision of dissolution filed in compliance with subsection (1) of this section; or

(ii) In the event of more than one dissolution order, the obligee named in the first decree of dissolution received by the department.

(e) For purposes of this section, "alternate payee" means a person, other than the survivor beneficiary, who is granted a percentage of a survivor benefit pursuant to a dissolution order.

(4) The department shall under no circumstances be held liable for not designating an obligee as a survivor beneficiary under subsection (1) of this section if the dissolution order or amendment thereto is not served on the department by registered or certified mail at least thirty days prior to the member's retirement.

(5) If a dissolution order directing designation of a survivor beneficiary has been previously filed with the department in compliance with this section, no additional obligation shall arise on the part of the department upon filing of a subsequent dissolution order unless the subsequent dissolution order:

(a) Specifically amends or supersedes the dissolution order already on file with the department; and

(b) Is filed with the department by registered or certified mail at least thirty days prior to the member's retirement.

(6) The department shall designate a court-ordered survivor beneficiary pursuant to a dissolution order filed with the department before June 6, 1996, only if the order:

(a) Specifically directs the member or department to make such selection;

(b) Specifies the survivor option to be selected; and

NEW SECTION. Sec. 515. A new section is added to chapter 41.50 RCW to read as follows:

(1) If the department determines that due to employer error a member of plan III has suffered a loss of investment return, the employer shall pay the department for credit to the member's account the amount determined by the department as necessary to correct the error.

(2) If the department determines that due to departmental error a member of plan III has suffered a loss of investment return, the department shall credit to the member's account from the school employees' retirement system combined plan II and III fund the amount determined by the department as necessary to correct the error.

Sec. 601. RCW 41.40.010 and 1997 c 254 s 10 and 1997 c 88 s 6 are each reenacted and amended to read as follows:

As used in this chapter, unless a different meaning is plainly required by the context:

(1) "Retirement system" means the public employees' retirement system provided for in this chapter.

(2) "Department" means the department of retirement systems created in chapter 41.50 RCW.

(3) "State treasurer" means the treasurer of the state of Washington.

(4)(a) "Employer" for plan I members, means every branch, department, agency, commission, board, and office of the state, any political subdivision or association of political subdivisions of the state admitted into the retirement system, and legal entities authorized by RCW 35.63.070 and 36.70.060 or chapter 39.34 RCW; and the term shall also include any labor guild, association, or organization the membership of a local lodge or division of which is comprised of at least forty percent employees of an employer (other than such labor guild, association, or organization) within this chapter. The term may also include any city of the first class that has its own retirement system.

(b) "Employer" for plan II members, means every branch, department, agency, commission, board, and office of the state, and any political subdivision and municipal corporation of the state admitted into the retirement system, including public agencies created pursuant to RCW 35.63.070, 36.70.060, and 39.34.030; except that after August 31, 2000, school districts and educational service districts will no longer be employers for the public employees' retirement system plan II.

(5) "Member" means any employee included in the membership of the retirement system, as provided for in RCW 41.40.023. RCW 41.26.045 does not prohibit a person otherwise eligible for membership in the retirement system from establishing such membership effective when he or she first entered an eligible position.

(6) "Original member" of this retirement system means:

(a) Any person who became a member of the system prior to April 1, 1949;

(b) Any person who becomes a member through the admission of an employer into the retirement system on and after April 1, 1949, and prior to April 1, 1951;

(c) Any person who first becomes a member by securing employment with an employer prior to April 1, 1951, provided the member has rendered at least one or more years of service to any employer prior to October 1, 1947;

(d) Any person who first becomes a member through the admission of an employer into the retirement system on or after April 1, 1951, provided, such person has been in the regular employ of the employer for at least six months of the twelve-month period preceding the said admission date;

(e) Any member who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement becomes entitled to be credited with ten years or more of membership service except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member;

(f) Any member who has been a contributor under the system for two or more years and who has restored all contributions that may have been withdrawn as provided by RCW 41.40.150 and who on the effective date of the individual's retirement has rendered five or more years of service for the state or any political subdivision prior to the time of the admission of the employer into the system; except that the provisions relating to the minimum amount of retirement allowance for the member upon retirement at age seventy as found in RCW 41.40.190(4) shall not apply to the member.

(7) "New member" means a person who becomes a member on or after April 1, 1949, except as otherwise provided in this section.

(8)(a) "Compensation earnable" for plan I members, means salaries or wages earned during a payroll period for personal services and where the compensation is not all paid in money, maintenance compensation shall be included upon the basis of the schedules established by the member's employer.

(i) "Compensation earnable" for plan I members also includes the following actual or imputed payments, which are not paid for personal services:

(A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable and the individual shall receive the equivalent service credit;

(B) If a leave of absence is taken by an individual for the purpose of serving in the state legislature, the salary which would have been received for the position from which the leave of absence was taken, shall be considered as compensation earnable if the employee's contribution is paid by the employee and the employer's contribution is paid by the employer or employee;

(D) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038;

(E) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670; and

(F) Compensation that a member receives for being in standby status. For the purposes of this section, a member is in standby status when not being paid for time actually worked and the employer requires the member to be prepared to report immediately for work, if the need arises, although the need may not arise. ((Standby compensation is regular salary for the purposes of RCW 41.50.150(2).))

(ii) "Compensation earnable" does not include:

(A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490;

(B) Remuneration for unused annual leave in excess of thirty days as authorized by RCW 43.01.044 and 43.01.041.

(b) "Compensation earnable" for plan II members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude nonmoney maintenance compensation and lump sum or other payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay.

"Compensation earnable" for plan II members also includes the following actual or imputed payments, which are not paid for personal services:

(i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wage which the individual would have earned during a payroll period shall be considered compensation earnable to the extent provided above, and the individual shall receive the equivalent service credit;

(ii) In any year in which a member serves in the legislature, the member shall have the option of having such member's compensation earnable be the greater of:

(A) The compensation earnable the member would have received had such member not served in the legislature; or

(B) Such member's actual compensation earnable received for nonlegislative public employment and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions;

(iii) Assault pay only as authorized by RCW 27.04.100, 72.01.045, and 72.09.240;

(iv) Compensation that a member would have received but for a disability occurring in the line of duty only as authorized by RCW 41.40.038;

(v) Compensation that a member receives due to participation in the leave sharing program only as authorized by RCW 41.04.650 through 41.04.670; and

(9)(a) "Service" for plan I members, except as provided in RCW 41.40.088, means periods of employment in an eligible position or positions for one or more employers rendered to any employer for which compensation is paid, and includes time spent in office as an elected or appointed official of an employer. Compensation earnable earned in full time work for seventy hours or more in any given calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service except as provided in RCW 41.40.088. Only service credit months and one-quarter service credit months shall be counted in the computation of any retirement allowance or other benefit provided for in this chapter. Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits. Time spent in standby status, whether compensated or not, is not service.

(i) Service by a state employee officially assigned by the state on a temporary basis to assist another public agency, shall be considered as service as a state employee: PROVIDED, That service to any other public agency shall not be considered service as a state employee if such service has been used to establish benefits in any other public retirement system.

(ii) An individual shall receive no more than a total of twelve service credit months of service during any calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for seventy or more hours is rendered.

(iii) A school district employee may count up to forty-five days of sick leave as creditable service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan I "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(A) Less than twenty-two days equals one-quarter service credit month;

(B) Twenty-two days equals one service credit month;

(b) "Service" for plan II members, means periods of employment by a member in an eligible position or positions for one or more employers for which compensation earnable is paid. Compensation earnable earned for ninety or more hours in any calendar month shall constitute one service credit month except as provided in RCW 41.40.088. Compensation earnable earned for at least seventy hours but less than ninety hours in any calendar month shall constitute one-half service credit month of service. Compensation earnable earned for less than seventy hours in any calendar month shall constitute one-quarter service credit month of service. Time spent in standby status, whether compensated or not, is not service.

Any fraction of a year of service shall be taken into account in the computation of such retirement allowance or benefits.

(i) Service in any state elective position shall be deemed to be full time service, except that persons serving in state elective positions who are members of the Washington school employees' retirement system, teachers' retirement system, or law enforcement officers' and fire fighters' retirement system at the time of election or appointment to such position may elect to continue membership in the Washington school employees' retirement system, teachers' retirement system, or law enforcement officers' and fire fighters' retirement system.

(ii) A member shall receive a total of not more than twelve service credit months of service for such calendar year. If an individual is employed in an eligible position by one or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service for ninety or more hours is rendered.

(iii) Up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.40.180 as authorized by RCW 28A.400.300. For purposes of plan II "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows:

(A) Less than eleven days equals one-quarter service credit month;

(B) Eleven or more days but less than twenty-two days equals one-half service credit month;

(D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month;

(E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month.

(10) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve.

(11) "Service credit month" means a month or an accumulation of months of service credit which is equal to one.

(12) "Prior service" means all service of an original member rendered to any employer prior to October 1, 1947.

(13) "Membership service" means:

(a) All service rendered, as a member, after October 1, 1947;

(b) All service after October 1, 1947, to any employer prior to the time of its admission into the retirement system for which member and employer contributions, plus interest as required by RCW 41.50.125, have been paid under RCW 41.40.056 or 41.40.057;

(c) Service not to exceed six consecutive months of probationary service rendered after April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of the total amount of the employer's contribution to the retirement fund which would have been required under the law in effect when such probationary service was rendered if the member had been a member during such period, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member;

(d) Service not to exceed six consecutive months of probationary service, rendered after October 1, 1947, and before April 1, 1949, and prior to becoming a member, in the case of any member, upon payment in full by such member of five percent of such member's salary during said period of probationary service, except that the amount of the employer's contribution shall be calculated by the director based on the first month's compensation earnable as a member.

(14)(a) "Beneficiary" for plan I members, means any person in receipt of a retirement allowance, pension or other benefit provided by this chapter.

(b) "Beneficiary" for plan II members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person.

(15) "Regular interest" means such rate as the director may determine.

(16) "Accumulated contributions" means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon.

(17)(a) "Average final compensation" for plan I members, means the annual average of the greatest compensation earnable by a member during any consecutive two year period of service credit months for which service credit is allowed; or if the member has less than two years of service credit months then the annual average compensation earnable during the total years of service for which service credit is allowed.

(b) "Average final compensation" for plan II members, means the member's average compensation earnable of the highest consecutive sixty months of service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.40.710(2).

(18) "Final compensation" means the annual rate of compensation earnable by a member at the time of termination of employment.

(19) "Annuity" means payments for life derived from accumulated contributions of a member. All annuities shall be paid in monthly installments.

(20) "Pension" means payments for life derived from contributions made by the employer. All pensions shall be paid in monthly installments.

(21) "Retirement allowance" means the sum of the annuity and the pension.

(22) "Employee" or "employed" means a person who is providing services for compensation to an employer, unless the person is free from the employer's direction and control over the performance of work. The department shall adopt rules and interpret this subsection consistent with common law.

(23) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality and other tables as may be adopted by the director.

(24) "Retirement" means withdrawal from active service with a retirement allowance as provided by this chapter.

(25) "Eligible position" means:

(a) Any position that, as defined by the employer, normally requires five or more months of service a year for which regular compensation for at least seventy hours is earned by the occupant thereof. For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position;

(b) Any position occupied by an elected official or person appointed directly by the governor, or appointed by the chief justice of the supreme court under RCW 2.04.240(2) or 2.06.150(2), for which compensation is paid.

(26) "Ineligible position" means any position which does not conform with the requirements set forth in subsection (25) of this section.

(27) "Leave of absence" means the period of time a member is authorized by the employer to be absent from service without being separated from membership.

(28) "Totally incapacitated for duty" means total inability to perform the duties of a member's employment or office or any other work for which the member is qualified by training or experience.

(29) "Retiree" means any person who has begun accruing a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member.

(30) "Director" means the director of the department.

(31) "State elective position" means any position held by any person elected or appointed to state-wide office or elected or appointed as a member of the legislature.

(32) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2).

(33) "Plan I" means the public employees' retirement system, plan I providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

(34) "Plan II" means the public employees' retirement system, plan II providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

(35) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

(36) "Index A" means the index for the year prior to the determination of a postretirement adjustment.

(37) "Index B" means the index for the year prior to index A.

(38) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A.

(39) "Adjustment ratio" means the value of index A divided by index B.

(40) "Annual increase" means, initially, fifty-nine cents per month per year of service which amount shall be increased each July 1st by three percent, rounded to the nearest cent.

(41) "Separation from service" occurs when a person has terminated all employment with an employer.

Sec. 602. RCW 41.40.062 and 1995 c 286 s 4 are each amended to read as follows:

(1) The members and appointive and elective officials of any political subdivision or association of political subdivisions of the state may become members of the retirement system by the approval of the local legislative authority.

(2) On and after September 1, 1965, every school district of the state of Washington shall be an employer under this chapter. Every member of each school district who is eligible for membership under RCW 41.40.023 shall be a member of the retirement system and participate on the same basis as a person who first becomes a member through the admission of any employer into the retirement system on and after April 1, 1949, except that after August 31, 2000, school districts will no longer be employers for the public employees' retirement system plan II.

Sec. 603. RCW 41.40.088 and 1991 c 343 s 9 and 1991 c 35 s 96 are each reenacted and amended to read as follows:

(1) A plan I member who is employed by a school district or districts, an educational service district, the state school for the deaf, the state school for the blind, institutions of higher education, or community colleges:

(a) Shall receive a service credit month for each month of the period from September through August of the following year if he or she is employed in an eligible position, earns compensation earnable for six hundred thirty hours or more during that period, and is employed during nine months of that period, except that a member may not receive credit for any period prior to the member's employment in an eligible position;

(b) If a member in an eligible position does not meet the requirements of (a) of this subsection, the member is entitled to a service credit month for each month of the period he or she earns earnable compensation for seventy or more hours; and the member is entitled to a one-quarter service credit month for those calendar months during which he or she earned compensation for less than seventy hours.

(2) Except for any period prior to the member's employment in an eligible position, a plan II member who is employed by a school district or districts, an educational service district, the state school for the blind, the state school for the deaf, institutions of higher education, or community colleges:

(i) One service credit month for each month in which compensation is earned for ninety or more hours;

(ii) One-half service credit month for each month in which compensation is earned for at least seventy hours but less than ninety hours; and

(iii) One-quarter service credit month for each month in which compensation is earned for less than seventy hours.

(d) After August 31, 2000, school districts and educational service districts will no longer be employers for the public employees' retirement system plan II.

(3) The department shall adopt rules implementing this section.

Sec. 604. RCW 41.26.500 and 1990 c 274 s 12 are each amended to read as follows:

(1) No retiree under the provisions of plan II shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 ((or)), 41.32.010, or section 2 of this act, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030. If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(2) The department shall adopt rules implementing this section.

Sec. 605. RCW 41.32.800 and 1997 c 254 s 6 are each amended to read as follows:

(1) Except as provided in RCW 41.32.802, no retiree under the provisions of plan II shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 ((or)), 41.32.010, or section 2 of this act, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030.

If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.

(2) The department shall adopt rules implementing this section.

Sec. 606. RCW 41.40.690 and 1997 c 254 s 13 are each amended to read as follows:

(1) Except as provided in RCW 41.40.037, no retiree under the provisions of plan II shall be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW 41.40.010 ((or)), 41.32.010, or section 2 of this act, or as a law enforcement officer or fire fighter as defined in RCW 41.26.030, except that a retiree who ends his or her membership in the retirement system pursuant to RCW 41.40.023(3)(b) is not subject to this section if the retiree's only employment is as an elective official of a city or town.

(3) The department shall adopt rules implementing this section.

Sec. 701. RCW 41.32.8401 and 1997 c 10 s 1 are each amended to read as follows:

(1) Anyone who requests to transfer under RCW 41.32.817 before January 1, 1998, and establishes service credit for January 1998, shall have their member account increased by forty percent of:

(a) Plan II accumulated contributions as of January 1, 1996, less fifty percent of any payments made pursuant to RCW 41.50.165(2); or

(b) All amounts withdrawn after January 1, 1996, which are completely restored before January 1, 1998.

(2) A further additional payment of twenty-five percent, for a total of sixty-five percent, shall be paid subject to the conditions contained in subsection (1) of this section on July 1, 1998.

(3) Substitute teachers shall receive the additional payment provided in subsection (1) of this section if they:

(a) Establish service credit for January 1998; and

(b) Establish any service credit from July 1996 through December 1997; and

(((3))) (4) If a member who requests to transfer dies before January 1, 1998, the additional payment provided by this section shall be paid to the member's estate, or the person or persons, trust, or organization the member nominated by written designation duly executed and filed with the department.

(((4))) (5) The legislature reserves the right to modify or discontinue the right to an incentive payment under this section for any plan II members who have not previously transferred to plan III.

Sec. 702. RCW 41.54.010 and 1993 c 517 s 8 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Base salary" means salaries or wages earned by a member of a system during a payroll period for personal services and includes wages and salaries deferred under provisions of the United States internal revenue code, but shall exclude overtime payments, nonmoney maintenance compensation, and lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, any form of severance pay, any bonus for voluntary retirement, any other form of leave, or any similar lump sum payment.

(2) "Department" means the department of retirement systems.

(3) "Director" means the director of the department of retirement systems.

(4) "Dual member" means a person who (a) is or becomes a member of a system on or after July 1, 1988, (b) has been a member of one or more other systems, and (c) has never been retired for service from a retirement system and is not receiving a disability retirement or disability leave benefit from any retirement system listed in RCW 41.50.030 or subsection (6) of this section.

(5) "Service" means the same as it may be defined in each respective system. For the purposes of RCW 41.54.030, military service granted under RCW 41.40.170(3) or 43.43.260 may only be based on service accrued under chapter 41.40 or 43.43 RCW, respectively.

(6) "System" means the retirement systems established under chapters 41.32, 41.40, 41.44, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), and 43.43 RCW; plan II of the system established under chapter 41.26 RCW; and the city employee retirement systems for Seattle, Tacoma, and Spokane. The inclusion of an individual first class city system is subject to the procedure set forth in RCW 41.54.061.

Sec. 703. RCW 41.54.030 and 1996 c 55 s 4, 1996 c 55 s 3, and 1996 c 39 s 19 are each reenacted and amended to read as follows:

(1) A dual member may combine service in all systems for the purpose of:

(a) Determining the member's eligibility to receive a service retirement allowance; and

(b) Qualifying for a benefit under RCW 41.32.840(2) or section 203 of this act.

(2) A dual member who is eligible to retire under any system may elect to retire from all the member's systems and to receive service retirement allowances calculated as provided in this section. Each system shall calculate the allowance using its own criteria except that the member shall be allowed to substitute the member's base salary from any system as the compensation used in calculating the allowance.

(3) The service retirement allowances from a system which, but for this section, would not be allowed to be paid at this date based on the dual member's age may be received immediately or deferred to a later date. The allowances shall be actuarially adjusted from the earliest age upon which the combined service would have made such dual member eligible in that system.

(4) The service retirement eligibility requirements of RCW 41.40.180 shall apply to any dual member whose prior system is plan I of the public employees' retirement system established under chapter 41.40 RCW.

Sec. 704. RCW 41.54.040 and 1996 c 55 s 5 are each amended to read as follows:

(1) The allowances calculated under RCW 41.54.030, 41.54.032, and 41.54.034 shall be paid separately by each respective current and prior system. Any deductions from such separate payments shall be according to the provisions of the respective systems.

(2) Postretirement adjustments, if any, shall be applied by the respective systems based on the payments made under subsection (1) of this section.

(3) The department shall adopt rules under chapter 34.05 RCW to ensure that where a dual member has service in a system established under chapter 41.32, 41.40, 41.44, 41.-- (sections 1 through 25, 101 through 112, 114, and 201 through 213 of this act), or 43.43 RCW; service in plan II of the system established under chapter 41.26 RCW; and service under the city employee retirement system for Seattle, Tacoma, or Spokane, the additional cost incurred as a result of the dual member receiving a benefit under this chapter shall be borne by the retirement system incurring the additional cost.

NEW SECTION. Sec. 705. A new section is added to chapter 41.54 RCW to read as follows:

Persons who were members of the public employees' retirement system plan II prior to the effective date of this section and were transferred or mandated into membership pursuant to chapter . . ., Laws of 1998 (this act) shall suffer no diminution of benefits guaranteed to public employees' retirement system plan II members as of the date of their change in membership.

Sec. 706. RCW 41.05.011 and 1996 c 39 s 21 are each amended to read as follows:

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

(1) "Administrator" means the administrator of the authority.

(2) "State purchased health care" or "health care" means medical and health care, pharmaceuticals, and medical equipment purchased with state and federal funds by the department of social and health services, the department of health, the basic health plan, the state health care authority, the department of labor and industries, the department of corrections, the department of veterans affairs, and local school districts.

(3) "Authority" means the Washington state health care authority.

(4) "Insuring entity" means an insurer as defined in chapter 48.01 RCW, a health care service contractor as defined in chapter 48.44 RCW, or a health maintenance organization as defined in chapter 48.46 RCW.

(5) "Flexible benefit plan" means a benefit plan that allows employees to choose the level of health care coverage provided and the amount of employee contributions from among a range of choices offered by the authority.

(6) "Employee" includes all full-time and career seasonal employees of the state, whether or not covered by civil service; elected and appointed officials of the executive branch of government, including full-time members of boards, commissions, or committees; and includes any or all part-time and temporary employees under the terms and conditions established under this chapter by the authority; justices of the supreme court and judges of the court of appeals and the superior courts; and members of the state legislature or of the legislative authority of any county, city, or town who are elected to office after February 20, 1970. "Employee" also includes: (a) Employees of a county, municipality, or other political subdivision of the state if the legislative authority of the county, municipality, or other political subdivision of the state seeks and receives the approval of the authority to provide any of its insurance programs by contract with the authority, as provided in RCW 41.04.205; (b) employees of employee organizations representing state civil service employees, at the option of each such employee organization, and, effective October 1, 1995, employees of employee organizations currently pooled with employees of school districts for the purpose of purchasing insurance benefits, at the option of each such employee organization; and (c) employees of a school district if the authority agrees to provide any of the school districts' insurance programs by contract with the authority as provided in RCW 28A.400.350.

(7) "Board" means the public employees' benefits board established under RCW 41.05.055.

(8) "Retired or disabled school employee" means:

(a) Persons who separated from employment with a school district or educational service district and are receiving a retirement allowance under chapter 41.32 or 41.40 RCW as of September 30, 1993;

(b) Persons who separate from employment with a school district or educational service district on or after October 1, 1993, and immediately upon separation receive a retirement allowance under chapter 41.32 or 41.40 RCW;

(c) Persons who separate from employment with a school district or educational service district due to a total and permanent disability, and are eligible to receive a deferred retirement allowance under chapter 41.32 or 41.40 RCW.

(9) "Benefits contribution plan" means a premium only contribution plan, a medical flexible spending arrangement, or a cafeteria plan whereby state and public employees may agree to a contribution to benefit costs which will allow the employee to participate in benefits offered pursuant to 26 U.S.C. Sec. 125 or other sections of the internal revenue code.

(10) "Salary" means a state employee's monthly salary or wages.

(11) "Participant" means an individual who fulfills the eligibility and enrollment requirements under the benefits contribution plan.

(12) "Plan year" means the time period established by the authority.

(13) "Separated employees" means persons who separate from employment with an employer as defined in:

(a) RCW 41.32.010(11) on or after July 1, 1996((,)); or

(b) Section 2 of this act on or after September 1, 2000;

and who are at least age fifty-five and have at least ten years of service under the teachers' retirement system plan III as defined in RCW 41.32.010(40) or the Washington school employees' retirement system plan III as defined in section 2 of this act.

Sec. 707. RCW 43.33A.190 and 1995 c 239 s 321 are each amended to read as follows:

Pursuant to ((RCW 41.50.088, the state investment board, at the request of the employee retirement benefits board, is authorized to offer investment options for self-directed investment under plan III)) section 307 of this act, the state investment board shall invest all self-directed investment moneys under teachers' retirement system plan III and the school employees' retirement system plan III, with full power to establish investment policy, develop investment options, and manage self-directed investment funds.

Sec. 708. RCW 43.84.092 and 1997 c 218 s 5 are each amended to read as follows:

(1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

(2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

(3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury 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) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the Eastern Washington University capital projects account, the education construction fund, the emergency reserve fund, the federal forest revolving account, the health services account, the public health services account, the health system capacity account, the personal health services account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system combined plan II and plan III account, the transportation infrastructure account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington school employees' retirement system combined plan II and III account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

(b) 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 aeronautics account, the aircraft search and rescue account, the central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the department of licensing services account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the gasohol exemption holding account, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the small city account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation revolving loan account, and the urban arterial trust account.

(5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION. Sec. 709. (1) The legislature declares that changing the numerical designation of the different retirement plans within the retirement systems from Roman numerals to Arabic numerals is of no substantive importance.

(2) The code reviser, under RCW 1.08.025, is directed to change the numerical designation of the retirement plans as follows:

(a) Where "I" is used, replace with "1";

(b) Where "II" is used, replace with "2"; and

NEW SECTION. Sec. 710. The state investment board, in consultation with the employee retirement benefits board, shall develop and implement administrative changes to mitigate the impact on the other pension funds of the movement of plan III members in and out of the state investment board portfolio. The changes shall be designed to meet the goals of minimizing the impact of the self-directed investing option on the state investment board's (1) asset allocation strategy, (2) liquidity needs, and (3) transaction costs. The changes may include but not be limited to restricting the frequency and timing of transfers in and out of the state investment board portfolio and charging appropriate fees to cover additional transaction costs caused by such transfers. At the September 1998 meeting of the joint committee on pension policy, the state investment board shall report on its progress in identifying and implementing administrative changes required by this section. If the state investment board determines that statutory changes are required to achieve the goals specified in this section, the state investment board shall recommend alternatives at the September 1998 meeting of the joint committee on pension policy.

NEW SECTION. Sec. 711. The joint committee on pension policy shall study the policy and the costs of merging the teachers' retirement system and the Washington school employees' retirement system and shall report their findings to the legislature by January 15, 1999.

NEW SECTION. Sec. 712. The department of retirement systems shall study the ongoing costs of administering the plan III systems, ways to decrease those costs, and methods of charging members for higher-cost investment options. The department shall report to the joint committee on pension policy by September 1998.

NEW SECTION. Sec. 713. The benefits provided pursuant to chapter . . ., Laws of 1998 (this act) are not provided to employees as a matter of contractual right prior to September 1, 2000. The legislature retains the right to alter or abolish these benefits at any time prior to September 1, 2000.

NEW SECTION. Sec. 714. Except for sections 306 through 309, 404, 505, 507, 515, 701, 707, and 710 through 713 of this act, this act takes effect September 1, 2000.

NEW SECTION. Sec. 715. Section 505 of this act expires September 1, 2000.

NEW SECTION. Sec. 716. Sections 306 through 309, 404, 505, 507, 515, 701, 707, and 710 through 713 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

Correct the title.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives Gombosky, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Kenney; Kessler; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives Gombosky, Chopp, Cody, Keiser, Kenney, Kessler, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6311 Prime Sponsor, Senator Snyder: Exempting assembly halls or meeting places used for the promotion of specific educational purposes from property taxation. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6324 Prime Sponsor, Senate Committee on Ways & Means: Rehabilitating salmon and trout populations with a remote site incubator program. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, beginning on line 8, after "in" strike all material through "Dam" on line 9 and insert "Washington state"

On page 2, line 9, after "in" strike "these"

On page 2, after line 36, insert the following:

Correct the title.

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6330 Prime Sponsor, Senate Committee on Ways & Means: Modifying provisions concerning recreational fish and wildlife licenses. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Natural Resources (For amendment, see Journal 47 Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 24, after line 6 of the amendment, insert the following:

"NEW SECTION. Sec. 50. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Carlson; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

MINORITY recommendation: Without recommendation. Signed by Representatives Doumit, Assistant Ranking Minority Member; Benson; Chopp and Kessler.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Gombosky, Carlson, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kenney, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, Regala, D. Schmidt, Sehlin, Sheahan, Talcott and Tokuda.

Voting Nay: Representatives Doumit, Benson, Chopp and Kessler.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6337 Prime Sponsor, Senator Winsley: Modifying property tax exemptions for nonprofit organizations. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6346 Prime Sponsor, Senate Committee on Transportation: Allowing withdrawals from regional transportation authorities. Reported by Committee on Transportation Policy & Budget

MAJORITY recommendation: Do pass. Signed by Representatives K. Schmidt, Chairman; Hankins, Vice Chairman; Mielke, Vice Chairman; Mitchell, Vice Chairman; Fisher, Ranking Minority Member; Cooper, Assistant Ranking Minority Member; Backlund; Buck; Cairnes; Chandler; Constantine; DeBolt; Gardner; Hatfield; Johnson; McCune; Murray; O'Brien; Ogden; Radcliff; Robertson; Romero; Scott; Skinner; Sterk; Wood and Zellinsky.

Excused: Representatives Buck, DeBolt, Johnson and Scott.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6352 Prime Sponsor, Senator Wood: Specifying examination eligibility requirements for Washington state patrol officers. Reported by Committee on Transportation Policy & Budget

Voting Yea: Representatives K. Schmidt, Fisher, Hankins, Mielke, Mitchell, Cairnes, Chandler, Constantine, Cooper, Gardner, Hatfield, McCune, Murray, O'Brien, Ogden, Radcliff, Robertson, Romero, Skinner, Sterk, Wood and Zellinsky.

Excused: Representatives Backlund, Buck, DeBolt, Johnson and Scott.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6354 Prime Sponsor, Senate Committee on Ways & Means: Providing for the disbursement of funds gained from a tobacco-related health care settlement. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Health Care (For amendment, see Journal 47th Day, February 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6379 Prime Sponsor, Senate Committee on Ways & Means: Extending the retail sales tax exemption for sales of laundry service. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SB 6392 Prime Sponsor, Senator Strannigan: Providing financial support to licensed overnight youth shelters. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Children & Family Services (For amendment, see Journal 47 Day, February 27, 1998) as further amended by Committee on Appropriations.

On page 2, beginning on line 17, strike all of section 3

Correct the title.

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Assistant Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6396 Prime Sponsor, Senate Committee on Higher Education: Creating the Washington center for real estate research. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass. Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6400 Prime Sponsor, Senator Brown: Extending the Washington telephone assistance program through 2003. Reported by Committee on Finance

MINORITY recommendation: Without recommendation. Signed by Representative Carrell, Vice Chairman.

Voting Yea: Representatives B. Thomas, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington and Thompson.

Voting Nay: Representative Carrell.

Excused: Representatives Schoesler and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6418 Prime Sponsor, Senate Committee on Health & Long-Term Care: Implementing amendments to the federal personal responsibility and work opportunity reconciliation act of 1996. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, line 35, after "manner prescribed in" strike "(a)" and insert "(d)"

Beginning on page 14, after line 30, strike all of section 6 and insert the following:

"NEW SECTION. Sec. 6. A new section is added to chapter 26.23 RCW to read as follows:

The federal personal responsibility and work opportunity reconciliation act of 1996, P.L. 104-193, requires states to collect social security numbers as part of the application process for professional licenses, driver's licenses, occupational licenses, and recreational licenses. The legislature finds that if social security numbers are accessible to the public, it will be relatively easy for someone to use another's social security number fraudulently to assume that person's identity and gain access to bank accounts, credit services, billing information, driving history, and other sources of personal information. Public Law 104-193 could compound and exacerbate the disturbing trend of social security number-related fraud. In order to prevent fraud and curtail invasions of privacy, the governor, through the department of social and health services, shall seek a waiver to the federal mandate to record social security numbers on applications for professional, driver's, occupational, and recreational licenses. If a waiver is not granted, the licensing agencies shall collect and disclose social security numbers as required under section 7 of this act.

NEW SECTION. Sec. 7. A new section is added to chapter 26.23 RCW to read as follows:

In order to assist in child support enforcement as required by federal law, all applicants for an original, replacement, or renewal of a professional license, driver's license, occupational license, or recreational license must furnish the licensing agency with the applicant's social security number, which shall be recorded on the application. The licensing agencies collecting social security numbers shall not display the social security number on the license document. Social security numbers collected by licensing agencies shall not be disclosed except as required by state or federal law or under RCW 26.23.120."

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

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

MINORITY recommendation: Do not pass. Signed by Representative Kessler.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Gombosky, Benson, Carlson, Chopp, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kenney, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, Regala, D. Schmidt, Sehlin, Sheahan, Talcott and Tokuda.

Voting Nay: Representative Kessler.

Passed to Rules Committee for second reading.

February 28, 1998

SB 6429 Prime Sponsor, Senator Long: Allowing the children's trust fund to retain its proportionate share of earnings. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass. Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

E2SSB 6445 Prime Sponsor, Senate Committee on Ways & Means: Modifying provisions relating to children placed in community facilities. Reported by Committee on Appropriations

On page 19, after line 31 of the amendment, insert the following:

"NEW SECTION. Sec. 20. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void."

Correct the title.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6449 Prime Sponsor, Senator West: Specifying a business and occupation tax rate for income in the nature of royalties for the use of intangible rights. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington and Thompson.

Excused: Representatives Schoesler and Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6451 Prime Sponsor, Senator Deccio: Resolving conflicts in lodging tax statutes enacted in 1997. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6455 Prime Sponsor, Senate Committee on Ways & Means: Adopting a supplemental capital budget. Reported by Committee on Capital Budget

MAJORITY recommendation: Do pass as amended.

Strike everything after the enacting clause and insert the following:

"Sec. 1. 1997 c 235 s 108 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Housing assistance, weatherization, and affordable housing program (88-5-015)

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,000,000 of the new appropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

(2) $2,000,000 of the reappropriation from the state building construction account is provided solely to promote development of safe and affordable housing units for persons eligible for services from the division of developmental disabilities within the department of social and health services.

(3) $2,000,000 of the new appropriation from the state building construction account is provided solely for the development of housing for low-income temporary migrant farm workers through grants awarded after the effective date of this act. The legislature finds that providing farm worker housing for low-income temporary migrant workers is a public purpose and the grants may be awarded on a competitive basis to local governments and nonprofit organizations. Grants may be matched by one dollar from nonstate sources for each dollar of grant money awarded by the department. If any portion of the appropriation in subsection (3) of this section is unexpended by June 30, 1999, the unexpended amount shall lapse. The requirements of this section are contingent upon the enactment of Senate Bill No. 6168. If Senate Bill No. 6168 is not enacted by June 30, 1998, this section is null and void.

(4) $100,000 of the new appropriation from the state building construction account is provided solely for restroom and shower facilities at Horn Rapids park in Benton county.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 25,000,000

Washington Housing Trust Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 400,000

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 25,400,000

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 125,116,142

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 200,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 400,516,142

NEW SECTION. Sec. 2. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Infrastructure needs assessment

The appropriation in this section is subject to the following conditions and limitations:

(1) The public works board ("board"), in consultation with the department of community, trade, and economic development ("department"), shall contract for a local government infrastructure needs assessment. The board shall issue a progress report to the governor, house of representatives capital budget committee, the senate ways and means committee, the joint legislative transportation committee, the house of representatives government administration committee, and the senate government operations committee by January 31, 1999. The final report shall be delivered by June 30, 1999.

(2) The infrastructure needs assessment shall utilize local capital improvement plans, to the extent available, to identify local government infrastructure needs for the planning, acquisition, construction, repair, replacement, rehabilitation, or improvements necessary for the next six years. The definitions and principles to be utilized in determining infrastructure needs shall be those set forth in chapter 36.70A RCW, including economic development. The infrastructure assessment shall also include a listing, description and evaluation of utilization of all private and public financing options, and policy alternatives that would assist in meeting local government infrastructure needs. For the purposes of this infrastructure needs assessment:

(a) Local government shall include each city, county, town, and each water, sewer, storm water, and public utility district providing water or sewer services in the state of Washington.

(b) Infrastructure shall be limited to bridges, roadways, domestic water, sanitary sewer, and storm water systems.

(3) The board shall contract for the collection and review of local capital expenditure data, the evaluation of local government infrastructure needs, the projection of future infrastructure needs, including needs to meet requirements under chapter 36.70A RCW. The board shall also contract for the development of criteria for a data base which can be maintained and updated, and such other matters as the board may deem necessary to provide an adequate representation of local capital needs and the ability of local governments to finance such needs.

(4) The legislative evaluation and accountability program shall cooperate with the department in the completion of the infrastructure needs assessment and may enter into interagency agreements. The legislative evaluation and accountability program shall develop the structure of the local government infrastructure data base and provide recommendations on the maintenance of the data base. The data base shall: Use the data compiled by and be compatible with that developed by the board's contractor; and have a structure to maintain its future use and updates.

The department shall provide a compilation of all capital improvement plans prepared by local governments. The department shall identify: Federal, state, and local infrastructure financing sources currently in use; all revenue sources available, but not fully utilized by each local government, and obstacles to full utilization; and the compilation of local government expenditures for infrastructure investments by source of funds and by jurisdiction for the period beginning January 1, 1993, and ending December 31, 1997, for local governments with a population greater than 50,000; and January 1, 1995, and ending December 31, 1997, for local governments with fewer than 50,000 population.

(6) The board shall convene an advisory committee of stakeholders to include representatives from the department of community, trade, and economic development, the office of financial management, the legislative evaluation and accountability program, the Washington state association of counties, the association of Washington cities, the Washington association of realtors, the national association of industrial office properties, the building industry association of Washington, the associated general contractors, the association of Washington business, Washington state building and construction trades council, and 1000 friends of Washington. The board may, as it deems necessary, utilize technical advisory groups or state agencies in addition to the advisory committee to assist itself in implementing this proviso.

The advisory committee shall serve as the advisory committee to the board to assist in guiding the infrastructure assessment and developing interpretations of this proviso as necessary. The committee shall establish criteria and categorize infrastructure projects as necessary to meet the requirements set forth in chapter 36.70A RCW, or as reflective of other community priorities, and review elements and standards of infrastructure needs identified in the study.

Appropriation:

Public Works Assistance Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

NEW SECTION. Sec. 3. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

Emergency flood and erosion repairs

The appropriation in this section is provided solely for shoreline repairs at Ocean Shores to prevent further erosion and flood control.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 150,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 150,000

NEW SECTION. Sec. 4. A new section is added to 1997 c 235 to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

Year 2000 building, facility, and equipment date conversion (99-1-001)

The office of financial management shall allocate appropriations to be used by state agencies and universities in performing Year 2000 assessments of facility management systems, control systems, and other computer systems related to capital facilities and equipment. Funds available in this appropriation may also be allocated for corrective measures on a priority basis to address critical system repairs.

Appropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000

Thurston County Cap Fac Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 60,000

TESC Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000

CWU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 50,000

WSU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 100,000

EWU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 50,000

WWU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 180,000

CC Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 100,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,866,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,056,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,056,000

Sec. 5. 1997 c 235 s 152 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

The control and management of the Wellington Hills property which was purchased by the state of Washington as a potential site for the University of Washington Bothell branch campus is transferred to the department of general administration. The site shall be disposed of at fair market value and the proceeds from the sale shall be deposited in the state building construction account. The department may retain from the proceeds of the sale an amount sufficient to provide reimbursement for expenses as approved by the office of financial management.

Prior to sale the department of general administration shall conduct a highest and best use study regarding the alternatives for future use of this site. Alternatives shall include, at a minimum, immediate sale, trade, transfer, lease, and retention for future state use. The study shall identify and consider the development characteristics and opportunities of the site, land use limitations and potential, and the desires and expectations of the surrounding communities. The study shall identify the benefits and risks of each alternative identified. The study shall be completed by June 30, 1998, and shall be transmitted for evaluation and determination of the best use of the property. Copies of the study shall be provided to the legislative fiscal committees, the office of financial management, and the higher education coordinating board.

The University of Washington shall continue to pay all necessary fees and assessments appurtenant to the property until the property is sold.

NEW SECTION. Sec. 6. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

Fire safety sprinkler systems (99-1-001)

The appropriation in this section is subject to the following conditions and limitations:

Funds are provided solely for fire sprinklers in the Douglas building at the Northern State Multi-Service Center.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 600,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 600,000

NEW SECTION. Sec. 7. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

Alaska Street Building: Cooling tower and chiller (99-1-002)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 155,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 155,000

Sec. 8. 1997 c 235 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

Green Hill redevelopment((: 416-bed institution)) (96-2-230)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(2) ((If Engrossed Third Substitute House Bill No. 3900 is not enacted by June 30, 1997, $3,800,000 of the new appropriation in this section shall lapse.)) The general fund--federal appropriation shall be transferred to the department of social and health services as a subaward of the violent offender incarceration and truth-in-sentencing grant awarded to the department of corrections.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 37,234,448

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,600,000

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,466,558

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,066,558

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,669,321

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11,200,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((59,703,769))

63,170,327

NEW SECTION. Sec. 9. A new section is added to 1997 c 235 (uncodified) to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

Security improvements at Western State Hospital

The appropriation in this section is provided solely for facility improvements that are required as a result of the passage of Senate Bill No. 6214. If Senate Bill No. 6214 is not enacted by June 30, 1998, the appropriation in this section shall be used for the same purpose as section 4 of this act.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 654,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 654,000

Sec. 10. 1997 c 235 s 241 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Orting: Main kitchen upgrade (95-1-001)

Reappropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((1,147,147))

1,097,147

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 94,853

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,242,000))

1,192,000

Sec. 11. 1997 c 235 s 245 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Retsil: Minor works projects (97-1-006)

Reappropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 410,549

Appropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((755,000))

652,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 249,451

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,050,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((8,465,000))

8,362,000

Sec. 12. 1997 c 235 s 247 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Emergency fund (97-1-012)

Appropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .. . . . . .$ ((700,000))

750,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,800,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((3,500,000))

3,550,000

Sec. 13. 1997 c 235 s 249 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

Retsil: Building feasibility study (97-2-015)

This appropriation is provided to conduct a study of the ((potential for consolidation of program functions and replacement of poor condition housing units into a new multi-use facility. The study will be submitted to the office of financial management and will be the basis of future capital investments at Retsil, based on clear programmatic need or economic benefits and improved efficiency)) physical condition of the Retsil and Orting campuses, determine the opportunities and constraints for use of the facilities on those campuses to serve current and future veterans program needs, and identify other options for the provision of services to veterans in the future. The studies will be submitted to the office of financial management and will be the basis upon which future capital plans for the department are developed.

Appropriation:

CEP & RI Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $. . . ((112,000))

215,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((112,000))

215,000

NEW SECTION. Sec. 14. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Local government criminal justice facilities (99-2-003)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation in this section is provided solely for the purpose of constructing, developing, expanding, modifying, or improving local jails and other correctional facilities in accordance with the violent offender incarceration and truth-in-sentencing grant requirements.

(2) The department of corrections, in consultation with the Washington association of sheriffs and police chiefs, shall develop criteria for allocating moneys appropriated in this section to local governments.

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 639,196

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 639,196

NEW SECTION. Sec. 15. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Washington Corrections Center: Replace razor ribbon wire (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

NEW SECTION. Sec. 16. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

McNeil Island Corrections Center: Still Harbor dock (99-2-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,700,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,700,000

NEW SECTION. Sec. 17. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Washington State Reformatory Farm: Dairy animal waste lagoon improvements (99-2-002)

The appropriation in this section is subject to the following conditions and limitations:

The department shall contract with the joint legislative audit and review committee to conduct a cost/benefit review of the operations of the Washington state reformatory farm. The review shall make recommendations regarding the disposition of the farm and provide a report to the office of financial management and the appropriate legislative committees September 30, 1998.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,242,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,242,000

NEW SECTION. Sec. 18. A new section is added to 1997 c 235 (uncodified) to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

Grant administration and minor improvements

The appropriation in this section is provided solely for costs associated with administration of the violent offender incarceration and truth-in-sentencing grant program to local governments and other agencies receiving a subaward from the grant and minor improvements for correctional facilities.

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 155,550

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 155,550

Sec. 19. 1997 c 235 s 301 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Referendum 26 waste disposal facilities (74-2-004)

The appropriations in this section are subject to the following conditions and limitations:

(1) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this lapse requirement for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

(2) $378,500 of the appropriation is provided for the waste water treatment plant at the city of Connell.

Reappropriation:

LIRA--State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,028,749

Appropriation:

LIRA--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((210,969))

1,039,969

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,840,771

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 800,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((9,880,489))

10,709,489

Sec. 20. 1997 c 235 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Referendum 38 water supply facilities (74-2-006)

The appropriations in this section are subject to the following conditions and limitations:

(1) $2,500,000 of the state and local improvements revolving account reappropriation is provided solely for funding the state's cost share in the water conservation demonstration project--Yakima river reregulation reservoir.

(2) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this lapse requirement for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

(3) $1,500,000 of the state and local improvements revolving account appropriation is provided solely for funding the state's cost share of the Methow Valley irrigation district agreement.

Reappropriation:

LIRA, Water Sup Fac--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 6,763,571

Appropriation:

LIRA, Water Sup Fac--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((485,495))

1,985,495

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,141,668

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,600,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((18,990,734))

20,490,734

Sec. 21. 1997 c 235 s 305 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

Centennial clean water fund (86-2-007)

The appropriations in this section are subject to the following conditions and limitations:

(1) $25,000,000 of the appropriation is provided solely for the extended grant payment to Metro/King county.

(2) $10,000,000 of the appropriation is provided solely for an extended grant payment to Spokane for the Spokane-Rathdrum Prairie aquifer.

(3) $1,850,000 of the appropriation is provided solely for allocation for on-site sewage system projects or programs identified in local watershed plans. Of this amount, $25,000 is provided solely for the Puyallup Washington state university research and extension center for on-site septic systems, and $25,000 is provided solely for the department of health to support the work group making recommendations on the development of an on-site septic system certification program pursuant to chapter 447, Laws of 1997.

(4) $10,000,000 of the appropriation is provided for the department to establish and administer a reclaimed water demonstration program to provide grants to five demonstration projects consistent with this section, and, if enacted, chapter 355, Laws of 1997. Of this amount:

(a) $100,000 is provided solely for an interagency agreement with the department of health for monitoring the activities and progress of the demonstration projects and to refine reclaimed water standards from the results of the projects;

(b) $75,000 is provided for the department of ecology's administrative costs in funding and monitoring the activities and progress of the demonstration projects;

(d) $985,000 is provided solely for a grant to the city of Royal City for a reclaimed water demonstration project;

(e) $3,398,500 is provided solely for a grant to the city of Sequim for a reclaimed water demonstration project;

(f) $3,398,500 is provided solely for a grant to the city of Yelm for a reclaimed water demonstration project; and

(g) $98,500 is provided solely for a grant to Lincoln county for a study of a reclaimed water demonstration project.

(5) A minimum of 80 percent of the remaining appropriation after allocation of subsections (1), (2), (3), and (4) of this section shall be allocated by the department for water quality implementation activities.

(6) A maximum of 20 percent of the remaining appropriation after allocation of subsections (1), (2), (3), and (4) of this section shall be allocated by the department for water quality planning activities.

(7) In awarding state-wide water quality implementation and planning grants and loans, the department shall give priority consideration to:

(a) Proposals submitted by communities with populations less than 2,500 or proposals that will be submitted by communities with populations less than 2,500 who have demonstrated an economic hardship which will prevent the completion or implementation of water quality projects; and

(b) ((Projects located in basins with critical or depressed salmonid stocks)) Allocate no less than twenty-five percent of the amount which has not been obligated as of July 1, 1998, for projects otherwise eligible under the water quality account and which have a component benefiting the recovery of priority salmonid stocks.

(8) The reappropriation in this section is provided solely for projects under contract on or before June 30, 1997. Reappropriated funds not associated with contracted projects shall lapse on June 30, 1997. The office of financial management may grant waivers from this subsection (8) for specific projects upon findings of exceptional circumstances after notification of the chairs of the house of representatives capital budget committee and senate ways and means committee. The department shall submit a report to the office of financial management and the house of representatives capital budget committee and senate ways and means committee by December 1, 1997, listing all projects funded from the reappropriation in this section.

Reappropriation:

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 38,653,000

Appropriation:

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 70,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 291,063,221

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 311,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 710,716,221

NEW SECTION. Sec. 22. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

Storm disaster recovery (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 530,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 530,000

NEW SECTION. Sec. 23. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

Cama Beach State Park development (99-2-001)

Appropriation:

Parks Renewal and Stewardship Account--State. . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Sec. 24. 1997 c 235 s 329 (uncodified) is amended to read as follows:

FOR THE INTERAGENCY COMMITTEE FOR OUTDOOR RECREATION

Washington Wildlife and Recreation Program (98-2-003)

The appropriations in this section for the Washington wildlife and recreation program under chapter 43.98A RCW are subject to the following conditions and limitations:

(1) $22,500,000 of the state building construction account appropriation shall be deposited in the habitat conservation account and is hereby appropriated from the habitat conservation account to the interagency committee for outdoor recreation for the fiscal biennium ending June 30, 1999, for the Washington wildlife and recreation program under chapter 43.98A RCW.

(2) $20,000,000 of the state building account appropriation and $2,500,000 from the aquatic lands enhancement account appropriation shall be deposited in the outdoor recreation account, and $22,500,000 is hereby appropriated from the outdoor recreation account to the interagency committee for outdoor recreation for the fiscal biennium ending June 30, 1999, for the Washington wildlife and recreation program under chapter 43.98A RCW. Funds from the aquatic lands enhancement account appropriation shall be distributed to eligible water access projects under RCW 43.98A.050.

(3) The new appropriations in this section are provided for the approved list of projects included in LEAP CAPITAL DOCUMENT NO. 98-6 as developed on April 15, 1997, at 10:00 a.m., LEAP CAPITAL DOCUMENT NO. 99-1 as adopted on February 23, 1998, at 10:00 a.m., the pilot watershed plan implementation program under subsection (6) of this section, and for other projects approved by the legislature under RCW 43.98A.080 referencing this section.

(4) No moneys from the appropriations in this section may be spent on the Rocky Reach trailway project until an agreement with affected property owners has been reached.

(5) The legislature finds that, since the inception of the Washington wildlife and recreation program, over eighty-five percent of the moneys provided for the state parks category has been used for acquisition of property, and that demands for recreational facilities in state parks require that increased funding be devoted to development projects. The committee and the state parks and recreation commission shall ensure that at least forty percent of new funding provided for the state parks category during the 1997-99 biennium be allocated to development projects.

(6) $4,000,000 of the habitat conservation account appropriation from the unallocated portion of the fund distribution under RCW 43.98A.040(1)(d) is provided solely for matching grants for riparian zone habitat protection projects that implement watershed plans pursuant to this subsection. The interagency committee for outdoor recreation shall develop a pilot watershed plan implementation program within the Washington wildlife and recreation program. The program shall provide matching grants to eligible agencies for implementation of riparian zone habitat protection projects within watershed restoration plans under RCW 89.08.460(1), watershed action plans developed pursuant to rules adopted by the Puget Sound water quality action team, or plans developed pursuant to chapter 442, Laws of 1997. Projects shall have a useful life of at least thirty years. Eligible agencies include conservation districts, counties, cities, and private nonprofit land trust or nature conservancy organizations. Projects eligible for funding under this section include acquisition of land using less-than-fee-simple instruments such as conservation easements and purchase of development rights; and habitat restoration and enhancement projects on such lands including fencing and revegetation of native trees and shrubs that enhance the long-term habitat values of protected lands. The committee shall develop an application process and project eligibility and evaluation criteria in consultation with the state conservation commission. The committee shall report to the appropriate committees of the legislature on the implementation of the pilot matching grant program. A preliminary status report shall be submitted by January 1, 1998, and a final report by January 1, 1999.

(7) Up to $400,000 of the reappropriations in this section is provided to develop an inventory of all lands in the state owned by federal agencies, state agencies, local governments, and Indian tribes. The committee shall develop the inventory in a computer database format that will facilitate the sharing and reporting of inventory data and provide options for future updates. The inventory shall include, at a minimum, the following information: Owner, location, acreage, and principal use. The inventory shall also include resource-based information for state and federally-owned recreation and habitat lands. The committee shall submit a status report on the inventory to the appropriate committees of the legislature by January 1, 1999, and a final report by January 1, 2000.

(8) All land acquired by a state agency with moneys from these appropriations shall comply with class A, B, and C weed control provisions of chapter 17.10 RCW.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 14,264,419

Aquatic Lands Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 33,335

ORA--State $ 21,985,067

Wildlife Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,398,996

Habitat Conservation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,700,633

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 56,382,450

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 42,500,000

Aquatic Lands Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,500,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 45,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 101,449,844

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 200,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 402,832,294

NEW SECTION. Sec. 25. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE CONSERVATION COMMISSION

Conservation Reserve Enhancement Program

The amounts in this section are provided solely for implementation of salmon restoration projects coordinated by sections 7 through 11 of Substitute House Bill No. 2496 (salmon recovery plan). If these sections of Substitute House Bill No. 2496 are not enacted by June 30, 1998, the appropriation in this section shall lapse. The appropriation in this section shall be expended solely for the conservation reserve enhancement program to provide grants to conservation districts to assist land owners to protect and restore riparian zones in areas with salmon stocks and a minimum of $420,000 shall be allocated to an evolutionarily significant unit east of the Cascade mountain range, a minimum of $1,512,000 to the lower Columbia river evolutionarily significant unit, a minimum of $2,100,000 to the Puget Sound evolutionarily significant unit, and a minimum of $420,000 to the tri-county water resource agency for projects and activities recommended by the Yakima river watershed council.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,500,000

Salmon Recovery

Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 500,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,000,000

Sec. 26. 1997 c 235 s 344 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Water access and development (96-2-027)

Reappropriation:

ORA--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 997,000

Appropriation:

ORA--State. . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 135,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,057,600

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,054,600))

2,189,600

Sec. 27. 1997 c 235 s 352 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Coast and Puget Sound wild salmonid habitat restoration (98-1-009)

No less than twenty-five percent of that portion of the appropriation under this section that has not been obligated as of March 1, 1998, shall be expended on projects for the recovery of priority salmonid stocks.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,428,770

Appropriation:

General Fund--Federal. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 800,000

General Fund--Private/Local. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 800,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,500,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,100,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 8,986,230

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,400,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 37,915,000

NEW SECTION. Sec. 28. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

Salmon restoration

If $5,000,000 or more is appropriated in the 1998 transportation appropriations act to the advanced environmental mitigation revolving account, the appropriation in this section shall be distributed as follows:

(1) $842,000 for the lower Columbia river evolutionarily significant unit.

(2) Twenty-five percent of the remaining appropriation for salmon habitat restoration and mitigation and fish passage barrier projects on land owned or managed by the department of fish and wildlife.

(3) Fifty percent of the remaining appropriation for the department to establish a program of competitive grants to local governments and regional fisheries enhancement groups for salmon habitat restoration and mitigation projects and fish passage barrier projects.

(4) Twenty-five percent of the remaining appropriation for salmon habitat restoration and mitigation and fish passage barrier projects that the department has determined to be priority projects. The distribution of money for priority projects may be in the form of grants to local governments, regional fisheries enhancement groups, and other state agencies.

(5) The projects selected for funding in subsections (2) through (4) of this section shall be based on a priority index developed by the department that yields the highest return of ecological benefit.

If less than $5,000,000 is appropriated in the 1998 transportation appropriations act to the advanced environmental mitigation revolving account, $3,000,000 of the appropriation in this section shall be deposited in the advanced environmental mitigation revolving account.

Appropriation:

Salmon Recovery Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,000,000

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 750,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,750,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,750,000

NEW SECTION. Sec. 29. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Natural Resources real property replacement (99-2-001)

Appropriation:

Nat Res Prop Repl Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,400,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,400,000

NEW SECTION. Sec. 30. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Land bank program to enhance trust land holdings (99-2-002)

Appropriation:

Resource Management Cost

Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,800,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,800,000

NEW SECTION. Sec. 31. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Arlington Survey Boundary Dispute. To purchase land as part of the settlement agreement to resolve claims and litigation over a survey boundary dispute near the town of Arlington in Snohomish county.

Appropriation:

For Dev Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,600,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 2,600,000

Sec. 32. 1997 c 235 s 393 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Jobs for the Environment (98-2-009)

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriations shall be used solely for the jobs for the environment program to achieve the following goals:

(a) Restore and protect watersheds to benefit anadromous fish stocks, consistent with the limitations of subsection (8) of this section, including critical or depressed stocks as determined by the department of fish and wildlife;

(b) Conduct watershed restoration and protection projects primarily on state lands in coordination with federal, local, tribal, and private sector efforts; and

(c) Create market wage jobs with benefits in environmental restoration for displaced workers in rural natural resource impact areas, as defined under RCW 43.31.601(2).

(2) Except as provided in subsection (5) of this section and consistent with the limitations of this section, the appropriations are solely for projects selected by the department of natural resources, in consultation with an interagency task force consisting of the department of fish and wildlife, other appropriate state agencies, tribal governments, local governments, the federal government, labor and other interested stakeholders. In recommending projects for funding the task force shall use the following criteria:

(a) The extent to which the project, using best available science, addresses habitat factors limiting fish and wildlife populations;

(b) The number, duration and quality of jobs to be created or retained by the project for displaced workers in natural resource impact areas;

(c) The extent to which the project will help avoid the listing of threatened or endangered species or provides for the recovery of species already listed;

(d) The extent to which the project will augment existing federal, state, tribal or local watershed planning efforts or completed watershed restoration and conservation plans;

(e) The cost effectiveness of the project;

(f) The availability of matching funds; and

(g) The demonstrated ability of the project sponsors to administer the project.

(3) Funds expended shall be used for specific projects and not for ongoing operational costs. Eligible projects include, but are not limited to, closure or improvement of forest roads, repair of culverts, cleanup of stream beds, removal of fish barriers, installation of fish screens, fencing of streams, and construction and planting of fish cover. Funds may also be expended for planning, design, engineering, and monitoring of eligible projects.

(4) The department of natural resources and the department of fish and wildlife, in consultation with the office of financial management and other appropriate agencies, shall report to the appropriate committees of the legislature by January 1, 1998, and January 1, 1999, on the results of expenditures from the appropriations.

(5) $800,000 of the appropriations in this section is provided solely for watershed restoration programs to be completed by the department of ecology's Washington conservation corps crews.

(6) All projects funded under this section shall be consistent with any development regulations or comprehensive plans adopted under the growth management act for the project areas. No funds may be expended to acquire land through condemnation.

(7) Projects under contract as of June 1, 1997, shall be given first priority for funding under the appropriations in this section.

(8) No less than twenty-five percent of the remainder of the appropriations under this section that have not been obligated as of July 1, 1998, shall be expended on projects for the recovery of priority salmonid stocks.

Appropriation:

For Dev Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000

Resource Management Cost

Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000

Water Quality Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 7,133,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 9,133,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 23,067,000

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 40,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 72,200,000

NEW SECTION. Sec. 33. A new section is added to 1997 c 235 to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

Distribution of excess funds from the forest development account: For distribution of state forest land revenues to taxing authorities receiving such revenue during the calendar year 1993 through calendar year 1997

(1) Within fifteen days of the effective date of this act the department shall transmit funds in the amounts specified in subsection (3) of this section to the county treasurers of the counties receiving the funds.

(2) The county treasurer of the counties listed in this section shall distribute funds received from this appropriation to taxing authorities in proportion to the state forest transfer land funds distributed to the taxing authorities based on information available for the calendar years 1993 through 1997. Funds to be credited to the state of Washington and funds credited to school district general levies shall be remitted to the state of Washington within thirty days after the effective date of this act for deposit into the salmon recovery account.

(3) Funds shall be distributed in the following amounts:

Clallam $ 1,847,473

Clark $ 508,782

Cowlitz $ 433,013

Grays Harbor $ 454,016

Jefferson $ 222,289

King $ 352,016

Kitsap $ 174,374

Klickitat $ 62,613

Lewis $ 1,558,708

Mason $ 258,289

Pacific $ 385,900

Pierce $ 135,405

Skagit $ 1,606,164

Skamania $ 258,247

Snohomish $ 1,590,489

Stevens $ 4,992

Thurston $ 893,263

Wahkiakum $ 411,273

Whatcom $ 842,685

TOTAL $ 12,000,000

Appropriation:

For Dev Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 12,000,000

Sec. 34. 1997 c 235 s 506 (uncodified) is amended to read as follows:

FOR THE STATE SCHOOL FOR THE DEAF

New cottages: Design and construction (98-2-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,606,600))

4,786,600

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,606,600))

4,786,600

Sec. 35. 1997 c 235 s 510 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Old Physics Hall (Mary Gates Hall): Design and construction (92-2-008)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((30,028,248))

31,328,248

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 305,891

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((30,334,139))

31,634,139

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 4,772,861

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((35,107,000))

36,407,000

Sec. 36. 1997 c 235 s 523 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Health Sciences Center BB Tower Elevators--Design and construction: To design and construct the addition of one elevator and upgrading of the existing elevators in the health sciences center BB-wing and tower (96-1-007)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((4,961,992))

561,992

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 208,546

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((5,170,538))

770,538

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 22,061

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((5,192,599))

792,599

Sec. 37. 1997 c 235 s 525 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Hogness/Health Sciences Center lobby: Americans with Disabilities Act improvements (96-1-022)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,253,070))

1,353,070

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 46,930

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,300,000))

1,400,000

Sec. 38. 1997 c 235 s 526 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Fisheries Science-Oceanography Science Building: Construction (96-2-006)

The appropriations in this section are subject to the following conditions and limitations:

(1) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(2) The department of general administration is directed, in keeping with section 152 of this act, to sell the Wellington Hills property as a means of partially offsetting the cost of this project with the proceeds of such sale being deposited into the state building and construction account.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,449,850

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,548,150

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,998,000

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((33,590,000))

36,090,000

H Ed Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,507,000

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,834,154

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((68,931,154))

71,431,154

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,865,597

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((77,794,751))

80,294,751

Sec. 39. 1997 c 235 s 527 (uncodified) is amended to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Social Work third floor addition--Design and construction: To design and construct a 12,000 gross square foot partial third floor addition to the Social Work and Speech and Hearing Sciences Building (96-2-010)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,708,800))

3,208,800

UW Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 126,400

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((2,835,200))

3,335,200

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 80,400

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((2,915,600))

3,415,600

NEW SECTION. Sec. 40. A new section is added to 1997 c 235 to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Kincaid Fire Damage (99-1-001)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,424,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,424,000

NEW SECTION. Sec. 41. A new section is added to 1997 c 235 to read as follows:

FOR THE UNIVERSITY OF WASHINGTON

Nuclear reactor: Decommissioning (99-2-009)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,200,000

Sec. 42. 1997 c 235 s 542 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Veterinary Teaching Hospital--Construction: To construct, equip, and furnish a new teaching hospital for the department of veterinary medicine and surgery (92-2-013)

The reappropriation in this section is subject to the review and allotment procedures under section 712 of this act.

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 77,884

H ED Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 239,098

Subtotal Reappropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 316,982

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,000,000

WSU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 500,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,500,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 33,628,518

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((33,945,500))

37,445,500

Sec. 43. 1997 c 235 s 566 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Intercollegiate Center for Nursing Education: Telecommunications (96-2-915)

Reappropriation:

((St Bldg Constr Acct--State))

WSU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 524,386

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 975,614

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000

Sec. 44. 1997 c 235 s 567 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Minor works: Preservation (98-1-004)

The appropriation in this section is subject to the following conditions and limitations:

The appropriation shall support the detailed list of projects maintained by the office of financial management.

Appropriation:

WSU Bldg Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ ((5,553,000))

5,053,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 24,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((29,553,000))

29,053,000

Sec. 45. 1997 c 235 s 579 (uncodified) is amended to read as follows:

FOR WASHINGTON STATE UNIVERSITY

Washington State University Vancouver: Phase II (98-2-911)

The appropriation in this section is subject to the following conditions and limitations:

(1) No money from this appropriation may be expended that would be inconsistent with the recommendations of the higher education coordinating board.

(2) The appropriation in this section is subject to the review and allotment procedures under section 712 of this act.

(3) The engineering and multimedia buildings to be designed under this appropriation shall serve at least 950 additional student full-time equivalents. Funding is also provided to construct campus infrastructure and physical plant shops.

(4) $1,000,000 of the appropriation in this section is provided solely to reserve or acquire transportation capacity and traffic impact fee credits associated with the development of the Vancouver branch campus.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 13,500,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 123,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 136,500,000

Sec. 46. 1997 c 235 s 594 (uncodified) is amended to read as follows:

FOR EASTERN WASHINGTON UNIVERSITY

Minor works: Program (98-2-001)

The appropriation in this section is subject to the following conditions and limitations:

(1) The appropriation shall support the detailed list of projects maintained by the office of financial management.

(2) Up to $30,000 may be used for design of a residence for the president of the university.

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((500,000))

530,000

EWU Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,200,000

Subtotal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,700,000))

1,730,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 10,018,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((11,718,000))

11,748,000

Sec. 47. 1997 c 235 s 606 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

((Boiler Plant: Expansion)) Heating system improvements (98-1-030)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,450,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,450,000

Sec. 48. 1997 c 235 s 611 (uncodified) is amended to read as follows:

FOR CENTRAL WASHINGTON UNIVERSITY

SeaTac Center Building: ((Renovation)) Facility improvements (98-2-010)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 662,500

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 662,500

Sec. 49. 1997 c 235 s 612 (uncodified) is amended to read as follows:*FOR CENTRAL WASHINGTON UNIVERSITY

Lynnwood Extended Degree Center: Facility design (98-2-080)

Appropriation:

((St Bldg Constr Acct--State))

CWU Cap Proj Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,000,000

Sec. 50. 1997 c 235 s 659 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

Asbestos abatement (96-1-002)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 484,317

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 700,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,142,040

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ((1,626,357))

2,326,357

NEW SECTION. Sec. 51. A new section is added to 1997 c 235 to read as follows:

FOR THE STATE BOARD OF COMMUNITY AND TECHNICAL COLLEGES

Lower Columbia College: Library heating system (99-1-003)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 512,000

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 512,000

Sec. 52. 1997 c 235 s 661 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

For roof repairs at various colleges in the system and for stabilization of Corbet Hall at Centralia Community College and development of alternatives for the replacement of Corbet Hall (96-1-010)

Reappropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,824,529

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 3,581,471

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 5,406,000

Sec. 53. 1997 c 235 s 681 (uncodified) is amended to read as follows:

FOR THE STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES

For roof repairs at various colleges in the system and for stabilization of Corbet Hall at Centralia Community College and development of alternatives for the replacement of Corbet Hall (98-1-010)

Appropriation:

St Bldg Constr Acct--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 11,580,400

Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 0

Future Biennia (Projected Costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 41,000,000

TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 52,580,400

Sec. 54. 1997 c 235 s 702 (uncodified) is amended to read as follows:

ACQUISITION OF PROPERTIES AND FACILITIES THROUGH FINANCIAL CONTRACTS. The following agencies may enter into financial contracts, paid for from operating revenues, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. When securing properties under this section, agencies shall use the most economical financial contract option available, including long-term leases, lease-purchase agreements, lease-development with option to purchase agreements or financial contracts using certificates of participation. The director of general administration shall ensure that the clustering of state facilities and the collocation and consolidation of state agencies take place where such configurations are economical and consistent with agency space needs. Agencies shall assist the department of general administration with facility collocation and consolidation efforts.

State agencies may enter into agreements with the department of general administration and the state treasurer's office to develop requests to the legislature for acquisition of properties and facilities through financial contracts. The agreements may include charges for services rendered.

(1) Department of general administration:

(a) Enter into a financing contract in the amount of $8,804,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase an existing office building and associated land in Yakima for use by the department of social and health services.

(b) ((Enter into a financing contract on behalf of the joint center for higher education for $8,500,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase and make modifications to the Riverpoint One Building adjacent to the Riverpoint Campus. A financial plan identifying all costs related to this project, and the sources and amounts of all payments to cover these costs and a copy of the appraisal and engineering assessment shall be submitted for approval to both the office of financial management and the higher education coordinating board for approval before execution of any contract.

Copies of the financial plan shall also be submitted to the senate ways and means committee and the house of representatives capital budget committee.)) Enter into a financing contract in the amount of $2,874,100 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to purchase and renovate the old federal building and associated land in Olympia for use by the secretary of state.

(d) Enter into a financing contract in the amount of $6,990,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to buy out the lease and make improvements to the old Thurston county courthouse for use by the office of attorney general. The department of general administration shall advise and assist the office of attorney general on space and functional planning to improve the efficient use of the facility.

(2) Liquor control board:

Enter into a long-term lease for a headquarters office in Thurston County for approximately 46,000 square feet.

(3) Department of corrections:

(a) Enter into a long-term ground lease for 17 acres in the Tacoma tide flats property from the Puyallup Nation for development of the 400-bed Tacoma prerelease facility for approximately $360,000 per annum. Prior to entering into the lease, the department shall obtain written confirmation from the city of Tacoma and Pierce county that the prerelease facility planned for the site meets all land use, environmental protection, and community notification requirements that would apply to the facility if the land was not owned by the Puyallup nation.

(b) Enter into a financing contract on behalf of the department of corrections in the amount of $14,736,900 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a 400-bed Tacoma prerelease facility. The department of corrections shall comply with all land use, environmental protection, and community notification statutes, regulations, and ordinances in the construction and operation of this facility.

(c) Lease-develop with the option to purchase or lease-purchase approximately 100 work release beds in facilities throughout the state for $5,000,000.

(d) Enter into a financing contract on behalf of the department of corrections in the amount of $396,369 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to construct a dairy barn at the Monroe farm.

(e) Enter into a financing contract on behalf of the department of corrections in the amount of $2,100,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase or construct a correctional industries transportation services warehouse.

(4) Community and technical colleges:

(a) Enter into a financing contract on behalf of Whatcom Community College in the amount of $800,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to develop a childcare center costing $2,410,000. The balance of project cost will be a combination of local capital funds and nonstate funds provided through private gifts or contributions.

(b) Enter into a financing contract on behalf of Pierce College in the amount of $750,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to develop a new classroom building on the Lakewood campus costing $1,816,665. The balance of project cost will be provided through a combination of local capital funds and existing minor works appropriation to replace relocatable classrooms that are at the end of their useful lives.

(c) Enter into a financing contract in behalf of Bellingham Technical College in the amount of $350,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW for construction of a new classroom addition to the diesel/heavy equipment instructional shop costing $411,309.

(d) Enter into a financing contract on behalf of Green River Community College in the amount of $1,526,150 plus financing expenses and reserves pursuant to chapter 39.94 RCW for remodel of the Lindbloom student center building.

(e) Enter into a financing contract on behalf of Edmonds Community College in the amount of $2,787,950 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to ((purchase and make improvements to several buildings and property contiguous to the college campus)) develop a 10,000 square foot music building on the college campus.

(f) Enter into a financing contract on behalf of Highline Community College in the amount of $2,070,613 plus financing and required reserves pursuant to chapter 39.94 RCW for the purchase of the Federal Way Center, currently being leased by the college.

(g) Enter into a financial contract on behalf of Green River Community College in the amount of $100,000 plus financing and required reserves pursuant to chapter 39.94 RCW to purchase approximately 1.5 acres of land adjacent to the westside parking lot.

(h) Enter into a financial contract on behalf of South Puget Sound Community College in the amount of $619,210 plus financing and required reserves pursuant to chapter 39.94 RCW to expand and redevelop the main campus parking lot A.

(i) Enter into a financial contract on behalf of South Puget Sound Community College in the amount of $5,500,000 plus financing and required reserves pursuant to chapter 39.94 RCW to develop a $6,500,000 student union facility.

(j) Enter into a financial contract on behalf of Wenatchee Valley College in the amount of $500,000 plus financing and required reserves pursuant to chapter 39.94 RCW to purchase two buildings and property contiguous to the college campus.

(5) State parks and recreation:

Enter into a financing contract on behalf of state parks and recreation in the amount of $2,012,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW, to construct cabin and lodge facilities at Cama Beach, develop new campsite electrical hookups, develop new recreational facilities, and expand campsites at Ocean Beach/Grayland. It is the intent of the legislature that debt service on all projects financed under this authority be paid from operating revenues.

(6) ((Central Washington University:

Enter into a financing contract for $3,000,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase and improve the Sno-King Building for the Lynnwood Extended Degree Center. A financial plan identifying all costs related to this project, and the sources and amounts of all payments to cover these costs and a copy of the building appraisal and engineering assessment shall be submitted for approval to the office of financial management before execution of any contract. Copies of the financial plan shall also be submitted to the senate ways and means committee and the house of representatives capital budget committee.

(7))) Washington state patrol:

Enter into a financing contract for $600,000 plus financing expenses and required reserves pursuant to chapter 39.94 RCW to purchase the Washington state patrol Port Angeles detachment office.

NEW SECTION. Sec. 55. A new section is added to 1997 c 235 to read as follows:

The office of financial management will convene a working group of state agencies, higher education institutions, the office of the attorney general, and representatives of the design profession and construction industry to develop a strategy to manage the risks and reduce the potential for claims and litigation associated with state construction projects. This strategy shall include the enumeration of best practices for the management of project risk and conflicts, in order to minimize future expenses related to construction claims. A report on the findings and recommendations of this working group will be presented to the house of representatives capital budget committee and senate ways and means committee by October 31, 1998.

Sec. 56. RCW 76.12.110 and 1988 c 128 s 31 are each amended to read as follows:

There is created a forest development account in the state treasury. The state treasurer shall keep an account of all sums deposited therein and expended or withdrawn therefrom. Any sums placed in the account shall be pledged for the purpose of paying interest and principal on the bonds issued by the department, and for the purchase of land for growing timber. Any bonds issued shall constitute a first and prior claim and lien against the account for the payment of principal and interest. No sums for the above purposes shall be withdrawn or paid out of the account except upon approval of the department.

Appropriations may be made by the legislature from the forest development account to the department for the purpose of carrying on the activities of the department on state forest lands, lands managed on a sustained yield basis as provided for in RCW 79.68.040, and for reimbursement of expenditures that have been made or may be made from the resource management cost account in the management of state forest lands. For the 1997-99 fiscal biennium, moneys from the account shall be distributed as directed in the omnibus appropriations act to the beneficiaries of the revenues derived from state forest lands. Funds that accrue to the state from such a distribution shall be deposited into the salmon recovery account, hereby created in the state treasury. Funds appropriated from the salmon recovery account shall be used for efforts to restore endangered anadromous fish stocks.

NEW SECTION. Sec. 57. 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 page 1, line 1 of the title, after "budget;" strike the remainder of the title and insert "amending RCW 76.12.110; amending 1997 c 235 ss 108, 152, 219, 241, 245, 247, 249, 301, 302, 305, 329, 344, 352, 393, 506, 510, 523, 525, 526, 527, 542, 566, 567, 579, 594, 606, 611, 612, 659, 661, 681, and 702 (uncodified); adding new sections to 1997 c 235; making appropriations and authorizing expenditures for capital improvements; and declaring an emergency."

Signed by Representatives Sehlin, Chairman; Honeyford, Vice Chairman; Ogden, Ranking Minority Member; Sullivan, Assistant Ranking Minority Member; Costa; Hankins; Koster; Lantz; Mitchell; D. Sommers and H. Sommers.

Voting Yea: Representatives Sehlin, Honeyford, Ogden, Sullivan, Costa, Hankins, Koster, Mitchell, D. Sommers and H. Sommers.

Excused: Representative Lantz.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6492 Prime Sponsor, Senate Committee on Law & Justice: Creating two new superior court positions for Yakima county. Reported by Committee on Appropriations

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6497 Prime Sponsor, Senate Committee on Government Operations: Taking private property. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on House Government Reform & Land Use (For amendment, see Journal 47th Day, February 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Keiser; Kessler; Lambert; Linville; Lisk; McMorris; Parlette; Poulsen; D. Schmidt; Sehlin; Sheahan and Talcott.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Keiser, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives H. Sommers, Doumit, Gombosky, Chopp, Cody, Kenney, Regala and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

E2SSB 6509 Prime Sponsor, Senate Committee on Ways & Means: Requiring training for reading instruction. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Education (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that the ability to read fluently, accurately, and with comprehension is critical to success in school and in life. Research has found that reading instruction in the early grades must consist of a comprehensive program that builds upon the firm foundational skills of phonemic awareness, decoding, and reading comprehension, to provide students with the skills necessary to engage in rich literature activities, and further develop thinking and application skills. Schools and school districts should review their reading programs to verify they are using a comprehensive approach to teaching reading.

The role of professional development in supporting and sustaining a high-quality teaching force is critical. The legislature finds that many primary grade teachers would benefit from additional professional development instruction in beginning reading skills and access to current information regarding research-based, scientifically proven instructional strategies to assist students in meeting the benchmarks established for the essential academic learning requirements.

The legislature also recognizes that when students are experiencing difficulties in advancing their reading skills, the use of volunteers to provide individualized tutoring and mentoring to those students will improve students' ability to overcome those difficulties and increase their reading achievement.

NEW SECTION. Sec. 2. A new section is added to chapter 28A.415 RCW to read as follows:

Schools interested in providing assistance to improve student learning in reading may apply for the following opportunities to provide professional development in beginning reading instructional strategies and related instructional materials and to implement volunteer tutoring programs for students throughout their school.

(1) To the extent funds are appropriated in accordance with this section, elementary schools interested in providing professional development and the purchase of related instructional materials in accordance with (a) of this subsection for certificated instructional staff that provide direct instructional services to students in kindergarten, first, and second grade may apply for and receive funding from the superintendent of public instruction. The application for funding shall be limited to:

(a) Verification that the intended professional development and related instructional materials include primary emphasis on the following beginning reading skills:

(i) Phonemic awareness strategies;

(ii) Explicit and systematic decoding instruction and how to assess a student's ability to decode;

(iii) Explicit spelling instruction;

(iv) Explicit instruction in reading comprehension strategies; and

(v) Research findings on the skills needed by beginning and proficient readers, and how beginning reading skills are acquired; and

(b) Verification that grant funds expended in accordance with this section will not be used for staff development, intervention, or remediation programs.

(2) The training in reading instruction shall be provided by public or private nonsectarian contractors that provide training in the methods defined in this section. Priority for reading instruction grants shall be given to those schools in which less than one-quarter of all students tested on the fourth grade assessment in reading met the state-wide standard, or in schools where average performance on the reading component of the state-wide standardized test required in RCW 28A.230.190 were in the bottom quartile for the previous three years. Priority shall then be given to those schools in which less than one-third of all students tested on the fourth grade assessment in reading met the state-wide standard, or in schools where average performance on the reading component of the state-wide standardized test required in RCW 28A.230.190 were in the bottom third for the previous three years. Priority shall then be given to schools in which one-half of all students tested on the fourth grade assessment in reading met the state-wide standard, or in schools where average performance on the reading component of the state-wide standardized test required in RCW 28A.230.190 were in the bottom half for the previous three years.

(3) Reading instruction grants provided under subsection (1) of this section may be used to provide additional professional development materials for interested school principals and classroom volunteers providing assistance in kindergarten, first, and second grades, interested in attending the professional development opportunity identified in this section.

(4) An elementary school receiving funding in accordance with this section shall certify and provide documentation to the superintendent of public instruction that funds received were expended for professional development and related materials in accordance with this section.

(5) Schools or school districts that received funds under RCW 28A.300.330 are not eligible to apply for funding in accordance with subsection (1) of this section.

(6) The definitions in this section apply throughout this section unless the context clearly requires otherwise.

(a) "Phonemic awareness instruction" means teaching awareness of letter sounds, and segmenting and blending phonemes, syllables, and words in a sequential progression.

(b) "Explicit systematic decoding instruction" means direct, sequential teaching of how to read words fluently and automatically that includes instruction in letter-sound correspondences, letter combinations, multisyllabic words, blending, and structural elements, and initially incorporates the use of decodable text. "Explicit systematic decoding instruction" does not include the use of context and syntax as word identification strategies in teaching beginning reading skills.

(c) "Decodable text" means connected text containing a high percentage of words that provide practice on the letter-sound correspondences and letter combinations previously taught.

(d) "Diagnosis of a student's ability to decode" means regularly assessing the student's mastery of word recognition, fluency and automaticity, and word analysis in order to plan future instructional activities.

(e) "Explicit and systematic instruction in spelling" means teaching a logical scope and sequence of word knowledge, spelling patterns, syllabication, and frequently used words connected to the sequence used in reading and writing instruction.

(f) "Instruction in reading comprehension skills" means explicit, systematic teaching of vocabulary development, text structure, context, syntax, and syntactic patterns, including but not limited to, strategies for higher order thinking skills such as interpretation, summarization, prediction, clarification, and question generation.

(7) To the extent funds are appropriated in accordance with this section, elementary schools interested in providing teacher training in the use of volunteer tutors and mentors to assist struggling readers in kindergarten through fourth grade may apply for grants from the superintendent of public instruction for volunteer tutoring and mentoring programs that are research based and have proven effectiveness in improving student reading performance. The programs must include the following elements:

(a) Teacher training in program planning and in the use of classroom volunteers;

(b) Training for tutor and mentor volunteers in working with students to overcome reading difficulties before their participation in the program;

(c) An established goal for a minimum number of volunteer contact hours for students to receive individual instruction per week;

(d) An established goal for a minimum number of volunteer contact hours during normal school hours for students to receive individual instruction per week;

(e) Teacher training in recruiting and retaining tutor and mentor volunteers for reading instruction; and

(f) A plan to assess student reading performance before entering the program and upon exit or at the end of the year as appropriate. The results must be compiled and reported to the superintendent of public instruction. The superintendent of public instruction shall provide a preliminary report to the legislature by March 1, 1999, and a final report to the legislature by December 1999 on the effectiveness of the various programs.

(8) By April 15th, the superintendent of public instruction shall notify all school districts that the funds under this section are available. Funding provided must be available to schools no later than June 1, 1998. Elementary schools may apply and become eligible for both funding opportunities.

(9) Teachers participating in the programs will receive a stipend from the funds.

(10) This section expires July 30, 2005.

NEW SECTION. Sec. 3. This act may be known and cited as the successful readers act.

NEW SECTION. Sec. 4. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 1998, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 5. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, Benson, Carlson, Cooke, Crouse, Dyer, Lambert, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives H. Sommers, Doumit, Gombosky, Chopp, Cody, Grant, Keiser, Kenney, Kessler, Linville, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

ESSB 6515 Prime Sponsor, Senate Committee on Energy & Utilities: Regulating franchises and the use of public rights of way. Reported by Committee on Transportation Policy & Budget

MAJORITY recommendation: Do pass as amended by Committee on Transportation Policy & Budget and without amendment by Committee on Energy & Utilities.

On page 1, beginning on line 7 of the amendment, strike the entire amendment and insert the following:

"NEW SECTION. Sec. 1. (1) The legislature finds that the federal telecommunications act of 1996 has provided the opportunity to expand the uses of publicly owned rights of way to allow for the provision of enhanced telecommunications services. Presently, providers of these services are confronted with differing development regulations and franchise requirements across this state's two hundred seventy-seven cities and thirty-nine counties. The legislature finds the array of varying regulations and requirements to be a significant barrier to enhancing the telecommunications services to the citizens of the state, and desires more uniformity and reasonableness in the application of these regulations. However, states that have recently enacted laws relating to the use of public rights of way for telecommunications services have been challenged in court. Court decisions and relevant federal communications commission rulings will be issued after the legislature adjourns. Therefore, the most prudent course of action requires further work and cooperation between public policymakers, government administrators, and the telecommunications industry to effectuate the policy of this state.

(2) The legislature hereby declares it the policy of the state of Washington to: Encourage the development of telecommunications infrastructure without violating the letter or spirit of Article VIII, sections 5 and 7 of the state Constitution; reduce regulatory obstacles that inhibit investment in the state's telecommunications system; maintain safe public roads, highways, and streets; and provide responsible stewardship of the public's investment in its rights of way.

NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout chapter . . ., Laws of 1998 (this act).

(1) "Authorized facilities" means all of the plant, equipment, fixtures, appurtenances, antennas, and other facilities necessary to furnish and deliver telecommunications services and cable television services, including but not limited to poles with crossarms, poles without crossarms, wires, lines, conduits, cables, communication and signal lines and equipment, braces, guys, anchors, vaults, and all attachments, appurtenances, and appliances necessary or incidental to the distribution and use of telecommunications services and cable television services.

(2) "Authorized user" means every corporation, company, association, joint stock association, partnership, and person, their lessees, trustees, or receivers appointed by any court whatsoever, and every city or town owning, operating, or managing any facilities used to provide telecommunications for hire, sale, or resale to the general public within this state.

(3) "Cable television service" means the one-way transmission to subscribers of video programming or other programming service and subscriber interaction, if any, which is required for the selection of use of such video programming or other programming service.

(4) "Limited access highways" means those public rights of way designated as limited access under authority of the laws of the state of Washington.

(5) "Public right of way" means roads, streets, and highways, and does not include:

(a) Limited access highways;

(b) Unopened, unimproved land dedicated for roads, streets, and highways;

(d) Federally granted trust lands and the forest board trust lands;

(e) Federally granted railroad rights of way acquired under 43 U.S.C. Sec. 912 and related provisions of federal law; and

(f) Lands owned or managed by the state parks and recreation commission.

(6) "Telecommunications service" means the transmission of information by wire, radio, optical cable, electromagnetic, or other similar means for the general public. For the purpose of chapter . . ., Laws of 1998 (this act), telecommunications services excludes the over-the-air transmission of broadcast television or radio signals. For the purpose of this subsection, "information" means knowledge or intelligence represented by any form of writing, signs, signals, pictures, sounds, or any other symbols.

Sec. 3. RCW 35.21.860 and 1983 2nd ex.s. c 3 s 39 are each amended to read as follows:

(1) No city or town may impose a franchise fee or any other fee ((or)), charge, or compensation of whatever nature or description upon the light and power, or gas distribution businesses, as defined in RCW 82.16.010, or ((telephone business, as defined in RCW 82.04.065)) an authorized user for the use of public right of way, except that (a) a tax authorized by RCW 35.21.865 may be imposed and (b) ((a fee)) fees and other requirements may be ((charged to)) imposed on such businesses ((that recovers actual administrative expenses incurred by a city or town that are directly related to receiving and approving a permit, license, and franchise, to inspecting plans and construction, or to the preparation of a detailed statement pursuant to chapter 43.21C RCW)) as allowed in section 4 of this act.

(2) Subsection (1) of this section does not prohibit franchise fees imposed on an electrical energy, natural gas, or telephone business, by contract existing on April 20, 1982, with a city or town, for the duration of the contract, but the franchise fees shall be considered taxes for the purposes of the limitations established in RCW 35.21.865 and 35.21.870 to the extent the fees exceed the costs allowable under subsection (1) of this section.

NEW SECTION. Sec. 4. (1) Cities and towns may impose fees to recover:

(a) The direct administrative expenses actually incurred by the state, county, city, or town in receiving and approving a construction or development permit, inspecting plans and construction, and development and maintenance of record systems, and excavation authorizations systems;

(b) Costs of ongoing maintenance, repair, or restoration of the right of way reasonably related to the impact of the installation, maintenance, and use of the authorized facility or the facilities of light and power, or gas distribution businesses, as defined in RCW 82.16.010;

(c) Ongoing monitoring activities and apportioned administrative overhead, quantified and documented using standard accounting practices; and

(d) Preparing a detailed statement pursuant to chapter 43.21C RCW.

(2) This section expires April 1, 1999.

NEW SECTION. Sec. 5. (1) Except as provided in subsection (2) of this section, no county, city, or town shall place a moratorium on the acceptance and processing of applications, permitting, construction, maintenance, repair, replacement, extension, operation, or use of any personal wireless communication facility after the effective date of this section. An existing moratorium that expires after the effective date of this section shall not be extended in whole or in part.

(2)(a) A city or town incorporated after the effective date of this section shall be permitted to impose one moratorium that shall not exceed one hundred eighty days and shall not be extendable.

(b) Upon the expiration of the moratorium authorized by (a) of this subsection, the authorizing city or town is subject to subsection (1) of this section.

(3) Counties, cities, and towns are encouraged to work together with industry, using the experience of the industry and those counties, cities, and towns that have adopted wireless regulations, to develop a model ordinance for the siting of wireless telecommunication facilities as part of the process required under section 7 of this act.

(4) Subsections (1) and (2) of this section apply to moratoriums one hundred twenty days after the adoption of a model ordinance under section 7 of this act or on April 1, 1999, whichever occurs first.

(5) This section expires October 1, 2003.

NEW SECTION. Sec. 6. (1) No county, city, or town shall install, or cause to be installed, equipment, facilities, or other infrastructure, including but not limited to conduit, for the purpose of allowing a county, city, or town to provide telecommunications or cable television services to the general public.

(2) This section expires October 1, 2003.

NEW SECTION. Sec. 7. (1) There is hereby created a telecommunications right of way advisory committee. The advisory committee shall:

(a) Develop a model ordinance for use by counties, cities, and towns that would create uniform policies, land use and construction codes, regulations, standards, and lease and franchise requirements for the use of rights of way by telecommunications providers; and

(b) Review current laws and practices in the following areas and make recommendations regarding:

(i) Appropriate types of permit costs and fees allowable for processing and granting applications for provision of telecommunications facilities along state, county, city, and town rights of way;

(ii) Limits on the amount of consideration due to the state, counties, and cities to rates that are fair, just, reasonable, and sufficient;

(iii) Alternative forms of consideration other than the imposition of franchise fees, including but not limited to provision of in-kind services, installation of additional conduit by telecommunications providers for use by the owner of the public right of way, single uniform surcharges or utility tax rates in lieu of individual franchise fees, and open competitive bid processes for granting franchises on limited access rights of way;

(iv) Methods to restrict or eliminate moratoriums when used as a means of excluding telecommunications facilities from publicly owned rights of way; and

(v) Such other issues as may arise during the committee's deliberations.

(2) The advisory committee shall be comprised of:

(a) Two members of the house of representatives transportation policy and budget committee, one from each political party, as appointed by the speaker of the house of representatives. The speaker shall also designate two alternate members to serve if the appointed members are unavailable;

(b) Two members of the senate transportation committee, one from each political party, as appointed by the president of the senate. The president shall also designate two alternate members to serve if the appointed members are unavailable;

(c) One member of the house of representatives appropriations committee, as appointed by the speaker of the house of representatives. The speaker shall also designate an alternate member to serve if the appointed member is unavailable;

(d) One member of the senate ways and means committee, as appointed by the president of the senate. The president shall also designate an alternate member to serve if the appointed member is unavailable;

(e) Two representatives of the governor;

(f) The secretary of the department of transportation or a designee; and

(g) The director of the department of information services or a designee.

(3) The advisory committee shall make its recommendations to the legislative transportation committee by December 1, 1998.

(4) This section expires January 31, 1999.

NEW SECTION. Sec. 8. 1997 c 457 s 512 (uncodified) is repealed.

NEW SECTION. Sec. 9. Section 3 of this act expires April 1, 1999.

NEW SECTION. Sec. 10. Sections 1, 2, 5, and 6 of this act constitute a new chapter in Title 47 RCW.

NEW SECTION. Sec. 11. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

Voting Yea: Representatives K. Schmidt, Hankins, Mielke, Mitchell, Backlund, Buck, Cairnes, Chandler, DeBolt, Johnson, McCune, Radcliff, Robertson, Romero, Skinner, Sterk and Zellinsky.

Voting Nay: Representatives Fisher, Constantine, Cooper, Gardner, Hatfield, Murray, O'Brien, Ogden, Scott and Wood.

Passed to Rules Committee for second reading.

February 28, 1998

SB 6541 Prime Sponsor, Senator Sellar: Funding tourism development. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, line 33, after "previous" strike "year's"

On page 3, line 6, after "exceeds" strike "six" and insert "eight"

On page 3, beginning on line 10, after "exceed" strike "two million dollars per fiscal year for the biennium" and insert "ten percent of the base amount as provided in this section"

Passed to Rules Committee for second reading.

February 28, 1998

2SSB 6544 Prime Sponsor, Senate Committee on Ways & Means: Providing for adult family home and boarding home training. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Health Care (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 1, line 32 of the amendment, after "statutory changes" strike "and funding requirements"

On page 2, beginning on line 20 of the amendment, strike all of subsection (3)

Correct internal references accordingly.

On page 2, line 36 of the amendment, after "statutory changes" strike "and funding requirements"

On page 3, beginning on line 23 of the amendment, strike all of subsection (3)

Correct internal references accordingly.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6550 Prime Sponsor, Senate Committee on Health & Long-Term Care: Certifying chemical dependency professionals. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Health Care (For amendment, see Journal 46th Day, February 26, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6552 Prime Sponsor, Senator Strannigan: Concerning the ad valorem taxation of vessels or ferries. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6560 Prime Sponsor, Senate Committee on Energy & Utilities: Protecting the rights of consumers of electric power. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Energy & Utilities (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 7, after line 4 of the amendment, insert the following:

"NEW SECTION. Sec. 9. If specific funding for the purposes of section 5 of this act, referencing section 5 of this act by bill or chapter number and section number, is not provided by June 30, 1998, in the omnibus appropriations act, section 5 of this act is null and void."

Renumber the following sections consecutively.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6599 Prime Sponsor, Senator Benton: Exempting fund-raising activities by nonprofit organizations from sales and use taxation. Reported by Committee on Finance

Voting Yea: Representatives Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6600 Prime Sponsor, Senate Committee on Education: Establishing an education program for juveniles incarcerated in adult correctional facilities. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Education (For amendment, see Journal 47th Day, February 27, 1998) as such amendment is amended by Committee on Appropriations.

On page 1, line 9 of the amendment, after "is" strike "not"

On page 1, line 10 of the amendment, after "education" strike "through the common schools"

On page 1, line 12 of the amendment, after "governments" insert "because low academic performance in basic skills areas can be a characteristic of some juveniles incarcerated in adult facilities, and improvement in performance in those academic areas may affect the recidivism rate of these juveniles"

On page 1, beginning on line 12 of the amendment, after "governments." strike all material through "adults." on line 16

Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Do not pass. Signed by Representatives Chopp; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Doumit, Gombosky, Benson, Carlson, Cody, Cooke, Crouse, Dyer, Grant, Keiser, Kenney, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, Poulsen, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives Chopp, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6602 Prime Sponsor, Senate Committee on Ways & Means: Crediting carbonated beverage taxes against business and occupation taxes. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Dunshee, Ranking Minority Member; Boldt; Butler; Kastama; Morris; Pennington; Schoesler and Thompson.

MINORITY recommendation: Do not pass. Signed by Representatives Dickerson, Assistant Ranking Minority Member; Conway and Mason.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Boldt, Butler, Kastama, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representatives Dickerson, Conway and Mason.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

ESSB 6622 Prime Sponsor, Committee on Energy & Utilities: Implementing the federal telecommunications act of 1996. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Energy & Utilities (For amendment, see Journal 47th Day, February 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

MINORITY recommendation: Without recommendation. Signed by Representatives Doumit, Assistant Ranking Minority Member; Chopp; Cody; Keiser; Kenney; Poulsen; Regala and Tokuda.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Gombosky, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Kessler, Lambert, Linville, Lisk, Mastin, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives Doumit, Chopp, Cody, Keiser, Kenney, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6655 Prime Sponsor, Senate Committee on Higher Education: Changing the Spokane intercollegiate research and technology institute. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Higher Education. Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Benson; Carlson; Cooke; Crouse; Dyer; Grant; Lambert; Lisk; McMorris; Parlette; D. Schmidt; Sehlin; Sheahan and Talcott.

Voting Yea: Representatives Huff, Alexander, Clements, Wensman, H. Sommers, Benson, Carlson, Cooke, Crouse, Dyer, Grant, Lambert, Lisk, McMorris, Parlette, D. Schmidt, Sehlin, Sheahan and Talcott.

Voting Nay: Representatives Doumit, Gombosky, Chopp, Cody, Keiser, Kenney, Kessler, Linville, Mastin, Poulsen, Regala and Tokuda.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6662 Prime Sponsor, Senator Strannigan: Eliminating the business and occupation tax on property managers' compensation. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Dickerson, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representative Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6668 Prime Sponsor, Senator Heavey: Extending tax deferrals for new thoroughbred race tracks. Reported by Committee on Finance

MINORITY recommendation: Do not pass. Signed by Representative Carrell, Vice Chairman.

Voting Yea: Representatives B. Thomas, Mulliken, Dunshee, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representatives Carrell and Boldt.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6727 Prime Sponsor, Senate Committee on Ways & Means: Modifying the savings incentive and education savings accounts. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended.

On page 2, line 17, after "(b)" strike all material through "(c)" on line 18 and insert "((enrollments in state institutions of higher education,

(c)))

On page 2, line 22, strike "(d)" and insert "(((d))) (c)"

On page 2, line 23, strike "(e)" and insert "(((e))) (d)"

On page 2, after line 32, insert the following:

"(5) For purposes of this section, state institutions of higher education as defined in RCW 28B.10.016(4) are not state agencies and are not eligible to participate in the savings incentive account."

On page 3, line 3, after "the))" strike everything through "moneys" on line 9 and insert "Moneys"

On page 3, line 11, strike "(((1))) (a)" and insert "(1)"

On page 3, line 13, strike "(((2))) (b)" and insert "(2)"

On page 3, line 16, after "Sec. 4." strike the remainder of the section and insert "A new section is added to chapter 43.79 RCW to read as follows:

(1) The higher education savings account is established in the custody of the state treasurer. The account shall consist of all moneys appropriated to the account by the legislature. Only the state treasurer or his or her designee may authorize distributions from the account.

(2) Within the account, the treasurer may create subaccounts for each state institution of higher education as defined in RCW 28B.10.016(4) to be credited with the higher education savings attributable to each individual state institution of higher education. For purposes of this section, "higher education savings" means the state general fund appropriations to each state institution of higher education that would otherwise lapse at the end of the fiscal year, to the extent that such amounts are appropriated to this account by the legislature.

(3) Moneys from the account shall be distributed as follows: (a) For subaccounts of state baccalaureate institutions, (i) seventy-five percent to the distinguished professorship trust fund under RCW 28B.10.868, and (ii) twenty-five percent to the graduate fellowship trust fund under RCW 28B.10.882; and (b) for subaccounts of state community and technical colleges, to the college faculty awards trust fund under RCW 28B.50.837. Amounts distributed to the trust funds from the subaccounts shall be disbursed from the trust funds only on behalf of the institution whose subaccount contributed the amounts to the trust fund."

Correct the title.

Passed to Rules Committee for second reading.

March 2, 1998

SB 6728 Prime Sponsor, Senator Newhouse: Providing tax exemptions for activities conducted for hop commodity commissions or boards. Reported by Committee on Finance

MAJORITY recommendation: Do pass. Signed by Representatives B. Thomas, Chairman; Carrell, Vice Chairman; Mulliken, Vice Chairman; Boldt; Butler; Conway; Kastama; Mason; Morris; Pennington; Schoesler and Thompson.

MINORITY recommendation: Do not pass. Signed by Representatives Dunshee, Ranking Minority Member; and Dickerson, Assistant Ranking Minority Member.

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representative Dunshee.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6731 Prime Sponsor, Senate Committee on Ways & Means: Removing a property tax exemption for larger airports belonging to out-of-state municipal corporations. Reported by Committee on Finance

MINORITY recommendation: Do not pass. Signed by Representative Carrell, Vice Chairman.

Voting Yea: Representatives B. Thomas, Mulliken, Dunshee, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Voting Nay: Representative Carrell.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

March 2, 1998

SSB 6737 Prime Sponsor, Senate Committee on Ways & Means: Regulating property taxation of residential housing occupied by low-income developmentally disabled persons. Reported by Committee on Finance

Voting Yea: Representatives B. Thomas, Carrell, Mulliken, Dunshee, Boldt, Butler, Conway, Kastama, Mason, Morris, Pennington, Schoesler and Thompson.

Excused: Representatives Dickerson and Van Luven.

Passed to Rules Committee for second reading.

February 28, 1998

SSB 6751 Prime Sponsor, Senate Committee on Health & Long-Term Care: Ensuring a choice of service and residential options for citizens with developmental disabilities. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass as amended by Committee on Children & Family Services (For amendment, see Journal 47th Day, February 27, 1998). Signed by Representatives Huff, Chairman; Alexander, Vice Chairman; Clements, Vice Chairman; Wensman, Vice Chairman; H. Sommers, Ranking Minority Member; Doumit, Assistant Ranking Minority Member; Gombosky, Assistant Ranking Minority Member; Benson; Carlson; Chopp; Cody; Cooke; Crouse; Dyer; Grant; Keiser; Kenney; Kessler; Lambert; Linville; Lisk; Mastin; McMorris; Parlette; Poulsen; Regala; D. Schmidt; Sehlin; Sheahan; Talcott and Tokuda.

Passed to Rules Committee for second reading.

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

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

There being no objection, the House adjourned until 9:00 a.m., Tuesday, March 3, 1998.

TIMOTHY A. MARTIN, Chief Clerk CLYDE BALLARD, Speaker