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The House was called to order at 10:00 a.m. by the Speaker (Representative Lovick presiding). The Clerk called the roll and a quorum was present.

The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Janel Smith and Matthew Summers-Smith. The Speaker (Representative Lovick presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Pastor Lemuel Charlston, United House of Prayer For All People, Seattle.

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

The Senate has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5404, and the same is herewith transmitted.

AN ACT Relating to the salaries and fringe benefits of certain employees of institutions of higher education; and amending RCW 41.06.070.

AN ACT Relating to marine protection in Puget Sound; amending RCW 90.56.500 and 43.21B.300; reenacting and amending RCW 43.84.092 and 43.79A.040; adding a new section to chapter 90.56 RCW; creating new sections; and providing an expiration date.

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.

SENATE BILL NO. 5090, by Senators Carlson, Fraser, Spanel and Rasmussen; by request of Joint Committee on Pension Policy

Determining which fire fighters or law enforcement officers may elect or be elected to certain pension and disability boards.

On motion of Representative Santos, Representatives Edwards and Wood were excused. On motion of Representative Clements, Representative Campbell was excused.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5090.

The Clerk called the roll on the final passage of Senate Bill No. 5090 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Woods and Mr. Speaker - 95.

SENATE BILL NO. 5090, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5096, by Senators Regala, Winsley, Carlson, Spanel, Jacobsen, Fraser, B. Sheldon, Kohl-Welles and Rasmussen; by request of Joint Committee on Pension Policy

Allowing members of the teachers' retirement system plan 1 to use extended school years for calculation of their earnable compensation.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5096.

The Clerk called the roll on the final passage of Senate Bill No. 5096 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5096, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5100, by Senators Fraser, Carlson, Winsley, Spanel, Parlette and Rasmussen; by request of Joint Committee on Pension Policy

Paying survivor benefits in accordance with Title 26 U.S.C. Sec. 101(h) as amended by the Fallen Hero Survivor Benefit Fairness Act of 2001.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5100.

The Clerk called the roll on the final passage of Senate Bill No. 5100 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5100, having received the necessary constitutional majority, was declared passed.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5122.

The Clerk called the roll on the final passage of Senate Bill No. 5122 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5122, having received the necessary constitutional majority, was declared passed.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5123.

The Clerk called the roll on the final passage of Senate Bill No. 5123 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5123, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5165, by Senate Committee on Judiciary (originally sponsored by Senators Kohl-Welles, Kline, McCaslin and Franklin)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5165.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5165 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5165, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5167, by Senators Regala, Hewitt, Franklin, Winsley and Kohl-Welles

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5167.

The Clerk called the roll on the final passage of Senate Bill No. 5167 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5167, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5172, by Senators Esser, Kline, Johnson and Roach; by request of Office of the Code Reviser

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5172.

The Clerk called the roll on the final passage of Senate Bill No. 5172 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5172, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5224, by Senators Benton, Prentice, Winsley, Zarelli, Johnson, T. Sheldon, Kohl-Welles, Hale, Roach and Esser

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5224.

The Clerk called the roll on the final passage of Senate Bill No. 5224 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5224, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5237, by Senate Committee on Education (originally sponsored by Senators Deccio, Thibaudeau, Parlette, Keiser, Mulliken, Kohl-Welles, Stevens, Hale and Eide)

There being no objection, the committee amendment by the Committee on Health Care was adopted. (For Committee amendment, see Journal, 75^th Day, March 28, 2003.)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5237, as amended by the House.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5237, as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5237, as amended by the House, having received the necessary constitutional majority, was declared passed.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5244.

The Clerk called the roll on the final passage of Senate Bill No. 5244 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5244, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5251, by Senate Committee on Judiciary (originally sponsored by Senators Brandland, Thibaudeau, Shin and Kline)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5251.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5251 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5251, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5265, by Senate Committee on Commerce & Trade (originally sponsored by Senators Thibaudeau, Honeyford, Jacobsen, Kohl-Welles, Johnson, Kline, McAuliffe, Rasmussen, Regala, B. Sheldon, Spanel, Winsley and Kastama)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5265.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5265 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5265, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5290, by Senate Committee on Commerce & Trade (originally sponsored by Senators West, Rasmussen, Hale and Winsley; by request of Horse Racing Commission)

Authorizing the horse racing commission to continue receiving criminal history information.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5290.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5290 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5290, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5321, by Senate Committee on Government Operations & Elections (originally sponsored by Senators Johnson and Prentice)

Including public hospital districts in the definition of "local government" for the purposes of chapter 39.96 RCW.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5321.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5321 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5321, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5327, by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Deccio, Thibaudeau and Parlette)

There being no objection, the committee amendment by the Committee on Health Care was adopted. (For Committee amendment, see Journal, 75^th Day, March 28, 2003.)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5327, as amended by the House.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5327, as amended by the House, and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5327, as amended by the House, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5550, by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators West, Stevens, Kastama, Roach, Kline, Johnson, Fairley, T. Sheldon, Thibaudeau, Benton, Keiser, Eide, Prentice, Kohl-Welles, Esser, Shin, Oke and Winsley)

Prohibiting secure community transition facilities from being sited near public and private youth camps.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5550.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5550 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SUBSTITUTE SENATE BILL NO. 5550, having received the necessary constitutional majority, was declared passed.

ENGROSSED SENATE BILL NO. 5560, by Senators Honeyford, Keiser, Horn and Kohl-Welles; by request of University of Washington

Regarding the prohibition of the lawful sale of liquor on University of Washington grounds. (REVISED FOR ENGROSSED: Regarding the sale of liquor on grounds of institutions of higher education.)

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Senate Bill No. 5560.

The Clerk called the roll on the final passage of Engrossed Senate Bill No. 5560 and the bill passed the House by the following vote: Yeas - 83, Nays - 12, Absent - 0, Excused - 3.

Voting yea: Representatives Alexander, Armstrong, Bailey, Berkey, Blake, Buck, Cairnes, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, McMorris, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schindler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Woods and Mr. Speaker - 83.

Voting nay: Representatives Ahern, Anderson, Benson, Boldt, Bush, Carrell, Cox, Mastin, McMahan, Mielke, Roach, and Schoesler - 12.

ENGROSSED SENATE BILL NO. 5560, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5570, by Senators Brown, Brandland, Kohl-Welles and Rasmussen; by request of Attorney General

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5570.

The Clerk called the roll on the final passage of Senate Bill No. 5570 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5570, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5574, by Senators Finkbeiner, Poulsen and Reardon; by request of Attorney General

Clarifying district court jurisdiction over actions involving commercial electronic mail.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5574.

The Clerk called the roll on the final passage of Senate Bill No. 5574 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5574, having received the necessary constitutional majority, was declared passed.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5758.

The Clerk called the roll on the final passage of Senate Bill No. 5758 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5758, having received the necessary constitutional majority, was declared passed.

SENATE BILL NO. 5994, by Senators Hewitt, Reardon, Honeyford, Haugen, Rossi, Hale, Mulliken and T. Sheldon

Removing suppliers and distributors of wine from the provisions of chapter 19.126 RCW.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Senate Bill No. 5994.

The Clerk called the roll on the final passage of Senate Bill No. 5994 and the bill passed the House by the following vote: Yeas - 95, Nays - 0, Absent - 0, Excused - 3.

SENATE BILL NO. 5994, having received the necessary constitutional majority, was declared passed.

SUBSTITUTE SENATE BILL NO. 5248, by Senate Committee on Highways & Transportation (originally sponsored by Senators Horn, Haugen, Prentice, Oke and Stevens)

There being no objection, the committee amendment by the Committee on Transportation was adopted. (For committee amendment, see Journal, 73rd Day, March 26, 2003.)

With the consent of the House, amendments (331), (335), and (334) were withdrawn.

The legislature finds that there is a pressing need for reform of the way in which the transportation system in Washington is constructed and maintained. The legislature finds that if the private sector can perform a service faster and in a more economical manner than state government, as demonstrated under chapter 354, Laws of 2002, then the department of transportation should not be hindered by state law from providing services in the most cost- effective manner. The legislature also finds that reforming current laws governing the payment of prevailing wages to ensure the accuracy of such wages is necessary to recapture public support for future expansion of the transportation system in Washington. The legislature intends that ten pilot projects should be conducted in a wide variety of locations in Washington state, both urban and rural, to test the process of having the department of transportation draft its own permits, subject to a single review by the regulatory agencies, in order to evaluate the use of this streamlined process.

(1) Except as otherwise provided in this chapter, the matters subject to bargaining include wages, hours, and other terms and conditions of employment, and the negotiation of any question arising under a collective bargaining agreement.

(a) Health care benefits or other employee insurance benefits, except as required in subsection (3) of this section;

(c) Rules of the director of personnel or the Washington personnel resources board adopted under section 203, chapter 354, Laws of 2002.

(3) Matters subject to bargaining include the number of names to be certified for vacancies, promotional preferences, and the dollar amount expended on behalf of each employee for health care benefits. However, except as provided otherwise in this subsection for institutions of higher education, negotiations regarding the number of names to be certified for vacancies, promotional preferences, and the dollar amount expended on behalf of each employee for health care benefits shall be conducted between the employer and one coalition of all the exclusive bargaining representatives subject to this chapter. Any such provision agreed to by the employer and the coalition shall be included in all master collective bargaining agreements negotiated by the parties. For institutions of higher education, promotional preferences and the number of names to be certified for vacancies shall be bargained under the provisions of RCW 41.80.010(4).

(4) The employer and the exclusive bargaining representative shall not agree to any proposal that would prevent the implementation of approved affirmative action plans or that would be inconsistent with the comparable worth agreement that provided the basis for the salary changes implemented beginning with the 1983-1985 biennium to achieve comparable worth.

(5) The employer and the exclusive bargaining representative shall not bargain over matters pertaining to:

(b) With respect to the department of transportation, the department's purchase of services by contract or any matters governed by RCW 41.06.142.

(6) Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages, hours, and terms and conditions of employment and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail. A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.

(((7) This section does not prohibit bargaining that affects contracts authorized by RCW 41.06.142.))

(1) The committee shall select and conduct permit reform pilot projects in three locales: (a) Urban near built-out conditions; (b) urban centers serving as crucial rural connectors; and (c) rural corridors critical to statewide economic productivity. The pilot projects must test the assignment of responsibilities such as selected permit drafting and selected compliance activities to the department.

(2) The committee shall commence efforts to apply streamlining lessons learned from the streamlined permit process for the pilot projects to as many other transportation projects of statewide significance as quickly as possible. In reporting to the legislature, the committee may recommend statutory or regulatory changes that would result in streamlining for future projects.

(3) The department and permitting agencies shall apply an interim interdisciplinary permit review process for the pilot projects as set forth in this section. This process must provide coordinated review and approval of permit applications; provide coordinated and consolidated public hearings where required by one or more regulatory agencies under state law; and coordinate timelines for permit decision making.

(4) The committee shall give notice to the legislative authority of each affected county and city of the projects the committee has designated as pilot projects. Each county and city notified must be offered the opportunity to participate in the pilot projects as provided for in this chapter. The department shall provide funding assistance for participation.

(5) The committee shall develop a dispute resolution process to resolve conflicts in interpretation of environmental standards and best management practices, mitigation requirements, permit requirements, assigned responsibilities, the streamlined process for pilot projects set forth in this section, and other related issues by September 1, 2001. The dispute resolution process may not abrogate or supplant any appeal right of any party under existing statutes. The dispute resolution process must be designed to include federal agencies if they choose to participate. The dispute resolution process must be applied to the pilot projects.

(6) The streamlined process for the pilot projects must be based on the following model:

(a) Step 1: The department and permitting agencies will agree on coordination for environmental review under the state and national environmental policy acts, including document preparation, public comment opportunities, and timelines.

(b) Step 2: For each project, the department will convene a meeting of all entities with permitting authority to review:

(i) The proposed conceptual design for the project and alternative routes, construction approaches, or mitigation approaches;

(ii) All known reviewing entities, permit application and approval requirements, and timelines; and

(c) Step 3: The department will draft all necessary permits to proceed with the preferred alternative using relevant agreements with permitting agencies.

(d) Step 4: The department will provide public notice in conformity with all applicable statutes and regulations and allow the required time for public hearings and written comments.

(e) Step 5: The department may revise the draft permits after consideration of public comments and applying all relevant agreed upon standards.

(f) Step 6: All permits will be disseminated to permitting agencies for final review. All reviews will be completed within forty- five days, at which time the permitting agencies will act upon the permit and either approve the permit or return it without approval.

(g) Step 7: If the permit is returned to the department without approval, the permitting agencies will have one opportunity to identify errors or omissions and any remaining specific deficiencies or circumstances not previously addressed by agreements between the department and agencies that must be met or addressed to be compliant with applicable law. The department may revise the permit as warranted and resubmit the permit to the permitting agency, which will have fifteen days from receipt of the revised permit to take final action.

(h) Step 8: Disputes related to permit decisions will be addressed by the dispute resolution process established by the committee.

(7) The committee shall select ten projects from the project lists that accompany any transportation budget passed in 2003 that are funded but do not yet have state permits in place. The committee should select projects in both urban and rural areas located from a wide variety of locations within Washington state. These will be designated as "Department of Transportation Permit Drafting Pilot Projects." These projects are not required to be projects of statewide significance under this chapter. The department of transportation will draft its own state permits under RCW 47.06C.080(2) and using a timeline developed by the committee. These permits drafted by the department are subject to a single review by state regulatory agencies before approval or denial. The process must be monitored by the committee and used to implement increased drafting of permits by the department of transportation on other projects.

(1) The "prevailing rate of wage", for the intents and purposes of this chapter, shall be the rate of hourly wage, usual benefits, and overtime paid in the locality, as hereinafter defined, to the majority of workers, laborers, or mechanics, in the same trade or occupation. In the event that there is not a majority in the same trade or occupation paid at the same rate, then the average rate of hourly wage and overtime paid to such laborers, workers, or mechanics in the same trade or occupation shall be the prevailing rate. If the wage paid by any contractor or subcontractor to laborers, workers, or mechanics on any public work is based on some period of time other than an hour, the hourly wage for the purposes of this chapter shall be mathematically determined by the number of hours worked in such period of time.

(2) The "locality" ((for the purposes of this chapter shall be the largest city in)) is the county wherein the physical work is being performed.

(3) The "usual benefits" for the purposes of this chapter shall include the amount of:

(a) The rate of contribution irrevocably made by a contractor or subcontractor to a trustee or to a third person pursuant to a fund, plan, or program; and

(b) The rate of costs to the contractor or subcontractor which may be reasonably anticipated in providing benefits to workers, laborers, and mechanics pursuant to an enforceable commitment to carry out a financially responsible plan or program which was communicated in writing to the workers, laborers, and mechanics affected, for medical or hospital care, pensions on retirement or death, compensation for injuries or illness resulting from occupational activity, or insurance to provide any of the foregoing, for unemployment benefits, life insurance, disability and sickness insurance, or accident insurance, for vacation and holiday pay, for defraying costs of apprenticeship or other similar programs, or for other bona fide fringe benefits, but only where the contractor or subcontractor is not required by other federal, state, or local law to provide any of such benefits.

(4) An "interested party" for the purposes of this chapter shall include a contractor, subcontractor, an employee of a contractor or subcontractor, an organization whose members' wages, benefits, and conditions of employment are affected by this chapter, and the director of labor and industries or the director's designee.

(1) All determinations of the prevailing rate of wage shall be made by the industrial statistician of the department of labor and industries. By January 1, 2004, the industrial statistician shall determine the prevailing rate of wage using a stratified random sampling method.

(2)(a) A stratified random sampling method must be used to the broadest extent possible, subject to available resources.

(b) If it is determined by the industrial statistician that sample size, strata size, or other factors do not permit the effective use of a stratified random sampling method, an equally reliable statistical method must be used.

(3) In order to ensure a fair and scientifically accurate stratified random sampling survey, the industrial statistician may consult with recognized experts in statistics and sampling, or with representatives of labor unions or business organizations regarding the necessary scientific methods, implementation parameters, and resource allocations.

(4) The department of labor and industries shall report to the legislature by December 1, 2004, and December 1, 2005, on the implementation of the stratified random sampling method.

Representatives Ericksen, Clements, DeBolt, Anderson, Armstrong, McMahan, Schoesler, Ericksen (again) and Orcutt spoke in favor of the adoption of the amendment.

Representatives Cooper, Rockefeller, Romero, Murray and Cooper (again) spoke against the adoption of the amendment.

The Speaker stated the question before the House to be adoption of amendment (357) to Substitute Senate Bill No. 5248.

The Clerk called the roll on the adoption of amendment (357) to Substitute Senate Bill No. 5248, and the amendment was not adopted by the following vote: Yeas - 43, Nays - 53, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Jarrett, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 43.

Voting nay: Representatives Berkey, Blake, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 53.

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

Representatives Cooper, Murray, Rockefeller, Simpson, Morris and Murray (again) spoke in favor of passage of the bill.

Representatives Ericksen, Nixon, Woods, Clements, Schindler, DeBolt, Armstrong and McMahan spoke against the passage of the bill.

The Speaker stated the question before the House to be the final passage of Substitute Senate Bill No. 5248, as amended by the House.

The Clerk called the roll on the final passage of Substitute Senate Bill No. 5248, as amended by the House, and the bill passed the House by the following vote: Yeas - 53, Nays - 43, Absent - 0, Excused - 2.

Voting yea: Representatives Berkey, Blake, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 53.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Jarrett, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 43.

SUBSTITUTE SENATE BILL NO. 5248, as amended by the House, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2228, by Representatives Murray, Wallace, Cooper, Clibborn, Simpson, Rockefeller, Hudgins and Hankins

The bill was read the second time. There being no objection, Substitute House Bill No. 2228 was substituted for House Bill No. 2228 and the substitute bill was placed on the second reading calendar.

"NEW SECTION. Sec. 1. DEFINITIONS. The definitions in this section apply throughout this chapter and section 9 of this act unless the context clearly requires otherwise.

(1) "Public agency" means any county, city, or other local government agency or any state government agency, board, or commission.

(2) "Public transportation" means the same as "public transportation service" as defined in RCW 36.57A.010 and includes passenger services of the Washington state ferries.

(3) "Nonmotorized commuting" means commuting to and from the workplace by an employee by walking or running or by riding a bicycle or other device not powered by a motor.

(4) "Ride sharing" means the same as "flexible commuter ride sharing" as defined in RCW 46.74.010, including ride sharing on Washington state ferries.

(5) "Car sharing" means a membership program intended to offer an alternative to car ownership under which persons or entities that become members are permitted to use vehicles from a fleet on an hourly basis.

NEW SECTION. Sec. 2. TAX CREDITS--BUSINESS AND OCCUPATION AND PUBLIC UTILITY TAXES. (1) Employers in this state who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before June 30, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.

(2) Property managers who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to persons employed at a worksite in this state managed by the property manager for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before June 30, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per person per year.

(3) The credit under this section is equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year. The credit may not exceed the amount of tax that would otherwise be due under chapters 82.04 and 82.16 RCW.

(4) A person may not receive credit under this section for amounts paid to or on behalf of the same employee under both chapters 82.04 and 82.16 RCW.

(5) A person may not take a credit under this section for amounts claimed for credit by other persons.

NEW SECTION. Sec. 3. TAX CREDIT FILING. (1) Application for tax credit under section 2 of this act may only be made in the form and manner prescribed in rules adopted by the department.

(2) The credit under this section must be taken or deferred under section 4 of this act against taxes due for the same calendar year in which the amounts for which credit is claimed were paid to or on behalf of employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting and must be claimed by the due date of the last tax return for the calendar year in which the payment is made.

(3) Any person who knowingly makes a false statement of a material fact in the application for a credit under section 2 of this act is guilty of a gross misdemeanor.

NEW SECTION. Sec. 4. TAX CREDIT LIMITATIONS. (1) The department shall keep a running total of all credits accrued under section 2 of this act during each calendar year. No person is eligible for tax credits under section 2 of this act if the credits would cause the tabulation for the total amount of credits taken in any calendar year to exceed two million two hundred fifty thousand dollars. This limitation includes any credits carried forward under subsection (2)(b) of this section from prior years.

(2)(a) No person is eligible for tax credits under section 2 of this act in excess of the amount of tax that would otherwise be due under chapter 82.04 or 82.16 RCW.

(b) A person with taxes equal to or in excess of the credit under section 2 of this act, and therefore not subject to the limitation in (a) of this subsection, may defer tax credits for a period of not more than three years after the year in which the credits accrue. A person deferring tax credits under this subsection (2)(b) must submit an application in the year in which the tax credits will be applied. This application is subject to eligibility under subsection (1) of this section for the calendar year in which the tax credits will be applied.

(3) No person is eligible for tax credits under section 2 of this act in excess of two hundred thousand dollars in any calendar year. This limitation does not apply to credits deferred in prior years under subsection (2)(b) of this section.

(4) No person is eligible for tax credits, including deferred credits authorized under subsection (2)(b) of this section, after June 30, 2013.

(5) Credits may not be carried forward or carried backward other than as authorized in subsection (2)(b) of this section.

NEW SECTION. Sec. 5. FUND TRANSFER. (1) The director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken under section 2 of this act during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

(2) On the last day of March, June, September, and December of each year, the state treasurer, based upon information provided by the department, shall deposit to the general fund a sum equal to the dollar amount of the credit provided under section 2 of this act from the multimodal transportation account.

NEW SECTION. Sec. 6. COMMUTE TRIP REDUCTION REPORTING. The commute trip reduction task force shall determine the effectiveness of the tax credit under section 2 of this act, the grant program in section 9 of this act, and the relative effectiveness of the tax credit and the grant program as part of its ongoing evaluation of the commute trip reduction law and report to the legislative transportation committee and to the fiscal committees of the house of representatives and the senate. The report must include information on the amount of tax credits claimed to date and recommendations on future funding between the tax credit program and the grant program. The report must be incorporated into the recommendations required in RCW 70.94.537(5).

NEW SECTION. Sec. 7. ADMINISTRATION. Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION. Sec. 8. EXPIRATION. This chapter expires June 30, 2013, except for section 5 of this act, which expires December 31, 2013.

NEW SECTION. Sec. 9. A new section is added to chapter 70.94 RCW to read as follows:

(1) The department of transportation shall administer a performance-based grant program for private employers, public agencies, nonprofit organizations, developers, and property managers who provide financial incentives for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, including telework, before June 30, 2013, to their own or other employees.

(2) The amount of the grant will be determined based on the value to the transportation system of the vehicle trips reduced. The commute trip reduction task force shall develop an award rate giving priority to applications achieving the greatest reduction in trips and commute miles per public dollar requested and considering the following criteria: The local cost of providing new highway capacity, congestion levels, and geographic distribution.

(3) No private employer, public agency, nonprofit organization, developer, or property manager is eligible for grants under this section in excess of one hundred thousand dollars in any calendar year.

(4) The total of grants provided under this section may not exceed seven hundred fifty thousand dollars in any calendar year.

(5) The department of transportation shall report to the department of revenue by the 15th day of each month the aggregate monetary amount of grants provided under this section in the prior month and the identity of the recipients of those grants.

(6) The source of funds for this grant program is the multimodal transportation account.

RCW 82.04.4453 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 1, 1996 c 128 s 1, & 1994 c 270 s 2;

RCW 82.04.4454 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 3, 1996 c 128 s 2, & 1994 c 270 s 3;

RCW 82.16.048 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 2, 1996 c 128 s 3, & 1994 c 270 s 4; and

RCW 82.16.049 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 4, 1996 c 128 s 4, & 1994 c 270 s 5.

NEW SECTION. Sec. 11. Sections 1 through 8 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 12. The code reviser shall place cross- reference sections to chapter 82.-- RCW (sections 1 through 8 of this act) in chapters 82.04 and 82.16 RCW.

NEW SECTION. Sec. 13. This act takes effect January 1, 2004, but only if legislation that provides additional revenues, excluding transfers, for the multimodal transportation account is in effect on that date.

Representatives Simpson and Anderson spoke in favor of the adoption of the amendment.

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

The Speaker stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 2228.

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2228 and the bill passed the House by the following vote: Yeas - 91, Nays - 5, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Bailey, Benson, Berkey, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Conway, Cooper, Cox, Crouse, Darneille, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Pettigrew, Pflug, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, Simpson, Skinner, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 91.

Voting nay: Representatives Armstrong, Condotta, DeBolt, Hinkle and Holmquist - 5.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2228, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2229, by Representatives Murray, Cooper, Wallace, Clibborn, Simpson, Hudgins and Hankins

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

The Speaker stated the question before the House to be the final passage of House Bill No. 2229.

The Clerk called the roll on the final passage of House Bill No. 2229 and the bill passed the House by the following vote: Yeas - 59, Nays - 37, Absent - 0, Excused - 2.

Voting yea: Representatives Bailey, Berkey, Blake, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Cox, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schoesler, Schual-Berke, Shabro, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 59.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Condotta, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Jarrett, Kristiansen, Mastin, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Sehlin, Skinner, Sump, Talcott and Tom - 37.

HOUSE BILL NO. 2229, having received the necessary constitutional majority, was declared passed.

The bill was read the second time. There being no objection, Substitute House Bill No. 2215 was substituted for House Bill No. 2215 and the substitute bill was placed on the second reading calendar.

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

The Speaker stated the question before the House to be the final passage of Substitute House Bill No. 2215.

The Clerk called the roll on the final passage of Substitute House Bill No. 2215 and the bill passed the House by the following vote: Yeas - 66, Nays - 31, Absent - 0, Excused - 1.

Voting yea: Representatives Alexander, Armstrong, Bailey, Berkey, Blake, Campbell, Chase, Clibborn, Cody, Condotta, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, O'Brien, Pettigrew, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Shabro, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 66.

Voting nay: Representatives Ahern, Anderson, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Cox, Crouse, DeBolt, Ericksen, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Nixon, Orcutt, Pearson, Pflug, Roach, Schindler, Schoesler, Sehlin, Skinner, Sump and Talcott - 31.

SUBSTITUTE HOUSE BILL NO. 2215, having received the necessary constitutional majority, was declared passed.

The bill was read the second time. There being no objection, Substitute House Bill No. 1163 was substituted for House Bill No. 1163 and the substitute bill was placed on the second reading calendar.

NEW SECTION. Sec. 1. (1) The transportation budget of the state is hereby adopted and, subject to the provisions set forth, the several amounts specified, or as much thereof as may be necessary to accomplish the purposes designated, are hereby appropriated from the several accounts and funds named to the designated state agencies and offices for employee compensation and other expenses, for capital projects, and for other specified purposes, including the payment of any final judgments arising out of such activities, for the period ending June 30, 2005.

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

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

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

NEW SECTION. Sec. 101. FOR THE UTILITIES AND TRANSPORTATION COMMISSION UTILITIES AND TRANSPORTATION COMMISSION

Grade Crossing Protective Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$293,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $352,000

NEW SECTION. Sec. 103. FOR THE STATE PARKS AND RECREATION COMMISSION STATE PARKS AND RECREATION COMMISSION

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $822,000

The appropriation in this section is subject to the following conditions and limitations: The entire appropriation in this section is provided solely for road maintenance purposes.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $315,000

The appropriation in this section is subject to the following conditions and limitations: The entire appropriation is provided solely for costs associated with the motor fuel quality program.

NEW SECTION. Sec. 105. FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE--OPERATING PROGRAM

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,429,000

The appropriation in this section is subject to the following conditions and limitations: $1,429,000 is provided for the joint legislative audit and review committee to conduct full performance audits of transportation agencies and departments under Substitute Senate Bill No. 5748, House Bill No. 1121, or House Bill No. 2227. In addition to the audits identified in these bills, the joint legislative audit and review committee shall conduct a targeted performance audit of the Washington state patrol. For this performance audit, the joint legislative audit and review committee shall put its highest priority on the following topics: (1) An assessment of the types and categories of services, including a contrast of public highway policing and general policing services provided by the patrol, and the organizational structures used to deliver these services; (2) an evaluation of the linkages among expenditures, including a differentiation between transportation and general fund sources to insure appropriate funding allocations, organizational structures, service delivery, accountability, and outcomes; and (3) an evaluation of the patrol's fiscal policies and procedures. The joint legislative audit and review committee shall provide a progress report to the appropriate committees of the legislature by December 31, 2003, and a final report, including findings and recommendations, by September 30, 2004. If neither Substitute Senate Bill No. 5748, House Bill No. 1121, or House Bill No. 2227 is enacted by August 1, 2003, this section is null and void.

NEW SECTION. Sec. 106. FOR WASHINGTON STATE PARKS AND RECREATION--CAPITAL PROJECTS

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000

The appropriation in this section is subject to the following conditions and limitations: The motor vehicle account--state appropriation is a one-time reappropriation and is provided solely for the Beacon Rock state park entrance road project. Any of the appropriations not expended by June 30, 2005, shall revert to the motor vehicle account--state.

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,174,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,744,000

School Zone Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,059,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,977,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The commission may oversee up to four pilot projects implementing the use of traffic safety cameras to detect speeding, and violations at railroad crossings and stoplights.

(a) In order to ensure adequate time in the 2003-05 biennium to evaluate the effectiveness of the pilot program, any projects authorized by the commission must be authorized by December 31, 2003.

(b) If a county or city has established an authorized automated traffic safety camera program under this section, the compensation paid to the manufacturer or vendor of the equipment used must be based only upon the value of the equipment and services provided or rendered in support of the system, and may not be based upon a portion of the fine or civil penalty imposed or the revenue generated by the equipment.

(i) Traffic safety cameras may take pictures of the vehicle and vehicle license plate only, and only while an infraction is occurring;

(ii) The law enforcement agency of the city or county government shall plainly mark the locations where the automated traffic enforcement system is used by placing signs on street locations that clearly indicate to a driver that he or she is entering a zone where traffic laws are enforced by an automated traffic enforcement system;

(iii) Cities and counties using traffic safety cameras must provide periodic notice by mail to its citizens indicating the zones in which the traffic safety cameras will be used;

(iv) Notices of infractions must be mailed to the registered owner of a vehicle within fourteen days of the infraction occurring;

(v) The owner of the vehicle is not responsible for the violation if the owner of the vehicle, within fourteen days of receiving notification of the violation, mails to the issuing law enforcement agency, a declaration under penalty of perjury, stating that the vehicle involved was, at the time, stolen or in the care, custody, or control of some person other than the registered owner, or any other extenuating circumstances;

(vi) Infractions detected through the use of traffic safety cameras are not part of the registered owner's driving record under RCW 46.52.101 and 46.52.120;

(vii) If a notice of infraction is sent to the registered owner and the registered owner is a rental car business, the infraction will be dismissed against the business if it mails to the issuing agency, within fourteen days of receiving the notice, a declaration under penalty of perjury of the name and known mailing address of the individual driving or renting the vehicle when the infraction occurred. If the business is unable to determine who was driving or renting the vehicle at the time the infraction occurred, the business must sign a declaration under penalty of perjury to this effect. The declaration must be mailed to the issuing agency within fourteen days of receiving the notice of traffic infraction. Timely mailing of this declaration to the issuing agency relieves a rental car business of any liability under this section for the notice of infraction. A declaration form suitable for this purpose must be included with each automated traffic infraction notice issued, along with instructions for its completion and use;

(viii) For purposes of the pilot projects, infractions generated by the use of traffic safety cameras will be exempt from the provisions of RCW 3.50.100 and will be processed in the same manner as parking violations; and

(ix) By June 30, 2005, the traffic safety commission shall provide a report to the legislature regarding the use, public acceptance, outcomes, and other relevant issues regarding traffic safety cameras demonstrated by the pilot projects.

(2) $1,555,000 of the school zone safety account--state appropriation is provided as matching funds for the following school safety enhancement projects, as proposed by local agencies, schools, and tribal governments in response to the department of transportation's highways and local programs request for information for potential projects to be financed under Referendum No. 51:

(3) If one or more of the projects under subsection (1) of this section cannot be completed or no longer seeks state matching funds, the following projects may be substituted in order of priority:

(4) The highways and local programs division within the department of transportation must provide assistance to the commission in administering this program.

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $272,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $774,000

The appropriation in this section is subject to the following conditions and limitations:

(1) No funding is provided for the staffing, administration and operations of the house of representatives transportation committee. Existing staff assigned to the house of representatives transportation committee shall be transferred to the house of representatives in the office of program research. All tangible and intangible property that has been acquired by, or allocated for use by the house of representatives transportation committee and its staff, including but not limited to office space and equipment, information systems technology, and employer-related assets, rights, privileges, and liabilities shall be transferred to the house of representatives. Any property acquired by, or allocated for use by the senate transportation committee and its staff shall be transferred to the senate.

(2) The legislative transportation committee shall develop and adopt an interim work plan that identifies tasks, resources available to carry out the work plan, deliverables or desired outcomes, and a timeline for completing the interim work plan. The following subjects shall be given consideration for that work plan:

(a) A review of the costs to the state of allowing citizens to use credit cards to pay for licensing services, and to explore options for lowering these costs; and

(b) An analysis of the causal relationship between distracted drivers and traffic safety, and whether legislation would be beneficial in reducing accidents or fatalities attributable to distracted drivers. If legislation is warranted, draft legislation must be submitted prior to the 2004 legislative session.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $391,000

The appropriation in this section is subject to the following conditions and limitations: Funding is provided for the commission only through June 30, 2004.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $616,000

NEW SECTION. Sec. 206. FOR THE COUNTY ROAD ADMINISTRATION BOARD-- OPERATING PROGRAM

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$769,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,927,000

County Arterial Preservation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $719,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,415,000

NEW SECTION. Sec. 207. FOR THE TRANSPORTATION IMPROVEMENT BOARD-- OPERATING PROGRAM

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,611,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,620,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,231,000

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $170,170,000

State Patrol Highway Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,167,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$175,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$176,512,000

The appropriations in this section are subject to the following conditions and limitations: The Washington state patrol shall evaluate the costs and benefits of retaining the agency's Beechjet aircraft as an internal asset or selling it to a private air service provider. This analysis must consider that any potential sale of the aircraft include an agreement that the state reserves the right to priority access to the jet in the event of an emergency. The state patrol must report to the fiscal committees of the legislature by December 15, 2003.

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $72,727,000

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,290,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$74,017,000

The appropriations in this section are subject to the following conditions and limitations: The authority to expend $542,000 of the state highway account--state appropriation is subject to receipt of $1,620,000 in interoperability funding from the military department.

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

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$7,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $85,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $77,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,315,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,639,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $107,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,230,000

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $126,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $58,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,339,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,521,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $637,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$17,689,000

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $585,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$57,404,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000

DOL Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,130,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$61,479,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,576,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $86,016,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$254,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$88,846,000

NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY--PROGRAM C

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$58,196,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,163,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,898,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$363,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$70,620,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $250,000 of the motor vehicle account--state appropriation is provided solely to retain an external consultant to provide an assessment of the department's review of current major information technology systems and planning for system and application modernization. The consultant shall also work with the department to prepare an application modernization strategy and preliminary project plan. The department must provide a report on their proposed application modernization plan to the transportation committees of the legislature by December 1, 2004.

(2) The department shall work with the office of financial management and the department of information services to ensure that (a) the department's current and future system development is consistent with the overall direction of other key state systems; and (b) when possible, common statewide information systems are used or developed to encourage coordination and integration of information used by the department and other state agencies and to avoid duplication.

(3) $2,150,000 of the motor vehicle account--state appropriation and $2,150,000 of the motor vehicle account--federal appropriation are reappropriated and provided solely for implementation of a new revenue collection system, including the integration of the regional fare coordination system (smart card), at the Washington state ferries. Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.

(4) The department will contract with the department of information services to conduct a survey that identifies possible opportunities and benefits associated with siting and use of technology and wireless facilities located on state right of way authorized by RCW 47.60.140. A report will be made to the appropriate legislative committees by December 1, 2004.

DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION--PROGRAM D

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$31,048,000

NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF TRANSPORTATION-- AVIATION--PROGRAM F

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,986,000

Aircraft Search and Rescue Safety and Education Account--State Appropriation. . . . . . . . . . . . . .$160,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,146,000

The appropriations in this section are subject to the following conditions and limitations: $1,300,000 of the aeronautics account-- state appropriation is provided solely for additional preservation grants to airports. Funding is constrained to additional excise and/or fuel tax generated as a result of Senate Bill No. 5392. If Senate Bill No. 5392 is not enacted by June 30, 2003, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF TRANSPORTATION-- PROGRAM DELIVERY MANAGEMENT AND SUPPORT--PROGRAM H

DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT--PROGRAM H

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$48,710,000

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

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$49,110,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $14,310,000 of the motor vehicle account--state appropriation is provided solely for the staffing, activities, and overhead of the department's environmental affairs office. This funding is provided in lieu of program funding in sections 305 and 306 of this act.

(2) $3,100,000 of the motor vehicle account--state appropriation is provided solely for the staffing and activities of the transportation permit efficiency and accountability committee. If neither Senate Bill No. 5279 or House Bill No. 2214 become law by June 30, 2003, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF TRANSPORTATION-- ECONOMIC PARTNERSHIPS--PROGRAM K

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,176,000

NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF TRANSPORTATION-- HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$287,177,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,426,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,253,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$292,856,000

The appropriations in this section are subject to the following conditions and limitations:

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

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

(3) The department shall request an unanticipated receipt for any private or local funds received for reimbursements of third party damages that are in excess of the motor vehicle account--private/local appropriation. The department shall place an equal amount of the motor vehicle account--state appropriation into reserve.

(4) Funding is provided for maintenance on the state system to allow for a continuation of the level of service targets included in the 2001-03 biennium. In delivering the program, the department should concentrate on the following areas:

(a) Meeting or exceeding the target for structural bridge repair on a statewide basis;

(b) Eliminating the number of activities delivered in the "f" level of service at the region level;

(c) Reducing the number of activities delivered in the "d" level of service by increasing the resources directed to those activities on a statewide and region basis; and

(d) Evaluating, analyzing, and potentially redistributing resources within and among regions to provide greater consistency in delivering the program statewide and in achieving overall level of service targets.

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$38,869,000

Motor Vehicle Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $125,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$38,994,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $4,960,000 of the motor vehicle account--state appropriation is provided solely for continuing the expanded incident response program begun in the 2001-2003 biennium. The department and the Washington state patrol shall continue to consult and coordinate with private sector partners, such as towing companies, media, auto, insurance and trucking associations, and the legislative transportation committee to ensure that limited state resources are used most effectively. No funds shall be used to purchase tow trucks.

(2) The department will implement the motorist information sign program and shall not contract with private providers to provide the service. The department is required to charge fees sufficient to recover the costs of providing and maintaining the signs.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$24,553,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $636,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,093,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$973,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$27,255,000

NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF TRANSPORTATION-- TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,665,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,778,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,021,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$33,464,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $3,940,000 of the motor vehicle account--state appropriation is provided solely to process and analyze all citizen, city, county, and state highway collision reports.

(2) Funds provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) may be used by the department to support the processing and analysis of city and county collision reports.

NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF TRANSPORTATION-- CHARGES FROM OTHER AGENCIES--PROGRAM U

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$52,922,000

The appropriation in this section is subject to the following conditions and limitations:

(1) $35,595,000 of the motor vehicle fund--state appropriation is provided solely for the liabilities attributable to the department of transportation. This includes one fiscal year's amount of the requested increase in self-insurance premiums. The office of financial management must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.

(2) Payments in this section represent charges from other state agencies to the department of transportation.

(a) FOR PAYMENT OF OFFICE OF FINANCIAL MANAGEMENT DIVISION OF RISK MANAGEMENT FEES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $989,000

(b) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE AUDITOR. . . . . . . . . . . . . . . . . . . .$823,000

(c) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED MAIL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,850,000

(d) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF PERSONNEL. . . . . . . . . . . . . . . . . . . . $2,252,000

ADMINISTRATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,639,000

CAPITAL PROJECTS SURCHARGE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,846,000

(g) FOR ARCHIVES AND RECORDS MANAGEMENT. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$523,000

NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF TRANSPORTATION-- PUBLIC TRANSPORTATION--PROGRAM V

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,528,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,529,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,574,000

Multimodal Transportation Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .$155,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$39,786,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $4,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for nonprofit providers of transportation for persons with special transportation needs. The priority in use of these moneys shall be to provide additional service. Grants may be for capital purposes as long as additional service is provided or to maintain service which otherwise may be terminated. Grant criteria shall also be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.

(2) $1,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to implement section 9 of House Bill No. 2228. In administering grants, the department shall give priority to programs providing the greatest reduction in trips and commute miles and to the level of contribution of the public agency, nonprofit organization, developer, and property manager to achieving those reductions. The department shall act to insure, to the extent possible, that grants are distributed equitably among each eligible type of recipient.

(3) $6,528,000 of the motor vehicle account--state appropriation and $3,472,000 of the multimodal transportation account--state appropriation are provided solely for a park and ride lot grant program. Priority will be given to projects located within areas served by public transit agencies. Before any project can proceed, there must be an agreement between the Washington state department of transportation and the public transit agency that the park and ride lot will be served by the public transit agency for a minimum of ten years. If service is discontinued before the amount of time specified in the agreement, the public transit agency will be required to refund the cost of the park and ride lot back to the department of transportation. Additional criteria for selecting projects will include leveraging funds other than state funds, estimated usage, convenience to commuter routes, and corridor congestion.

(4) $9,500,000 of the multimodal transportation account--state appropriation is provided solely for the rural mobility grant program. Priority will be given to grants that add service. Capital grants can be included as long as additional service is added or the grant would keep current service from being reduced or eliminated.

(5) $5,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for public transit agencies. The grant program will cover capital costs only; no operating costs are eligible for funding under this grant program. Only grants that add vanpools are eligible, no supplanting of transit funds currently funding vanpools is allowed. Additional criteria for selecting grants will include leveraging funds other than state funds.

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .$315,191,000

The appropriation in this section is provided to the Washington state ferries to implement the 5.5.5 strategic plan subject to the following modifications, conditions, and limitations:

(1) The appropriation is based on the budgeted expenditure of $32,660,000 for vessel operating fuel in the 2003-2005 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

(2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2003-2005 biennium may not exceed $211,387,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $520.27 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2004 and $606.25 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2005, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2003-2005 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

The prescribed salary increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2003, and thereafter, as established in the 2003-2005 general fund operating budget.

(3) The Washington state ferries will continue to provide on-going service to Sidney, British Columbia.

(4) The Washington state ferries will provide on-going commuter passenger-only ferry service on the Vashon-Seattle, Southworth-Seattle, and Kingston-Seattle routes.

(5) The Washington state ferries will develop a plan to increase passenger-only farebox recovery to at least forty percent by July 1, 2003, through increased fares, lower operation costs, and other cost- saving measures as appropriate. The department must report to the transportation committees of the legislature by December 1, 2003 on the options, strategies, and decisions implemented to achieve farebox recovery targets.

(6) The department must provide a separate accounting of passenger- only ferry service costs and auto ferry service costs, and must provide periodic reporting to the legislature on the financial status of both passenger-only and auto ferry service in Washington state.

(7) The Washington state ferries will conduct an evaluation of the passenger-only ferry system. At a minimum the evaluation must address the effectiveness of existing passenger-only routes, and identify improvement opportunities. The department will include in this evaluation a review of recommendations for expanded passenger-only ferry service, including new routes and markets, previously submitted to the department by established citizen advisory groups. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for improving the passenger-only ferry system.

(8) The Washington state ferries will evaluate the feasibility of contracting with a public or private organization to provide passenger- only ferry service. The Washington state ferries will also compare the costs and benefits of such state-contracted service to the costs and benefits of such service if provided by an alternative public-private partnership, involving a public benefit transit agency or other entity. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for contracted passenger-only ferry service.

(9) The Washington state ferries must work with the department's information technology division to implement a new revenue collection system, including the integration of the regional fare coordination system (smart card). Each December, annual updates are to be provided to the transportation committees of the legislature concerning the status of implementing and completing this project, with updates concluding the first December after full project implementation.

(10) The Washington state ferries shall evaluate the benefits and costs of selling the depreciation rights to ferries purchased by the state in the future through sale and lease-back agreements, as permitted under RCW 47.60.010. The department is authorized to issue a request for proposal to solicit proposals from potential buyers. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for sale/lease-back agreements on existing ferry boats as well as future ferry boat purchases.

(11) The Washington state ferries shall work with the department of general administration, office of state procurement to improve the existing fuel procurement process and solicit, identify, and evaluate, purchasing alternatives to reduce the overall cost of fuel and mitigate the impact of market fluctuations and pressure on both short- and long- term fuel costs. Consideration shall include, but not be limited to, long-term fuel contracts, partnering with other public entities, and possibilities for fuel storage in evaluating strategies and options. The department shall report back to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for managing fuel purchases and costs.

NEW SECTION. Sec. 226. FOR THE DEPARTMENT OF TRANSPORTATION-- RAIL--PROGRAM Y--OPERATING

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $42,075,000

The appropriation in this section is subject to the following conditions and limitations:

(1) $30,831,000 of the multimodal transportation account--state appropriation is provided solely for the Amtrak service contract and Talgo maintenance contract associated with providing and maintaining the state-supported passenger rail service.

(2) $7,000,000 of the multimodal transportation account--state appropriation is provided solely for operating an additional passenger run between Seattle and Portland, Oregon. If an additional run is not established, the amount provided in this subsection shall lapse.

(3) The department is directed to explore scheduling changes that will reduce the delay in Seattle when traveling from Portland to Vancouver B.C.

(4) The department is directed to explore opportunities with British Columbia concerning the possibility of leasing an existing Talgo trainset to B.C. during the day for a commuter run when the Talgo is not in use during the Bellingham layover.

NEW SECTION. Sec. 227. FOR THE DEPARTMENT OF TRANSPORTATION-- LOCAL PROGRAMS--PROGRAM Z--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,682,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,569,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,251,000

The appropriations in this section are subject to the following conditions and limitations: Up to $75,000 of the total appropriation is provided to fund the state's share of the 2004 Washington marine cargo forecast study. Public port districts, acting through their association, must provide funding to cover the remaining cost of the forecast.

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,455,000

The appropriation in this section is subject to the following conditions and limitations: $2,455,000 of the state patrol highway account--state appropriation is provided for capital improvements at district and detachment offices statewide during the 2003-2005 biennium. These projects include improvements at the state patrol's Shelton training academy during the 2003-2005 biennium, including the design and partial construction of a water/sewer system, emergency generator replacement, and other minor works projects.

NEW SECTION. Sec. 302. FOR THE COUNTY ROAD ADMINISTRATION BOARD--CAPITAL PROGRAM

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $46,000,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $362,000

County Arterial Preservation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,745,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$75,107,000

The appropriations in this section are subject to the following conditions and limitations: $362,000 of the motor vehicle account-- state appropriation is provided for county ferries as set forth in RCW 47.56.724(4).

NEW SECTION. Sec. 303. FOR THE TRANSPORTATION IMPROVEMENT BOARD--CAPITAL PROGRAM

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$99,168,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $98,455,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$197,623,000

The appropriations in this section are subject to the following conditions and limitations: The transportation improvement account-- state appropriation includes $23,955,000 in proceeds from the sale of bonds authorized in RCW 47.26.500. The transportation improvement board may authorize the use of current revenues available to the agency in lieu of bond proceeds for any part of the state appropriation.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,933,000

The appropriation in this section is subject to the following conditions and limitations:

(1) $14,933,000 of the motor vehicle account--state appropriation is provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL3--house transportation committee facilities project list. Changes to the list may occur under the following conditions and restrictions:

(a) Projects that have unplanned carry-forward expenditures from the 2001-03 biennium may be added to the list in order to complete the project following approval by the office of financial management;

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(c) If planned construction of a project is unavoidably delayed, the department may advance construction of a similar project provided that funding has been identified to complete both projects following approval by the office of financial management; and

(d) In the event of an emergency, the department is allowed to add emergency projects to the list and delay currently funded projects in order to fund the emergency projects following approval by the office of financial management.

The department will provide every calendar quarter to the house transportation committee and the senate highway and transportation committee a report detailing any changes to the project list and the reasons for the change.

(2) The department shall develop a standard design for all maintenance facilities to be funded under this section. Prior to developing design standards, the department must solicit input from all personnel classifications typically employed at maintenance facilities. By September 1, 2003, the department must submit a report to the legislative transportation committees describing the stakeholder involvement process undertaken and the adopted design standards for maintenance facilities.

NEW SECTION. Sec. 305. FOR THE DEPARTMENT OF TRANSPORTATION-- IMPROVEMENTS--PROGRAM I

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$613,178,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$193,240,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $16,663,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$50,279,000

Tacoma Narrows Toll Bridge Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$613,300,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,486,660,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $613,178,000 of the motor vehicle account--state appropriation, $193,240,000 of the motor vehicle account--federal appropriation, $16,663,000 of the motor vehicle account--local appropriation, and $50,279,000 of the special category c account--state appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL4--house transportation committee project list. In order to provide the flexibility needed to manage a large highway construction program with a significant amount of federal funds, changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(c) Projects may be added when the department of transportation identifies the projects associated with activity funding allocations as long as the activity allocation is reduced by the amount of the projects added following approval by the office of financial management;

(d) If planned construction of a project is unavoidably delayed, the department may advance construction of a similar project provided that funding has been identified to complete both projects following approval by the office of financial management;

(e) In order to maximize federal funding and ensure that the state does not lose any available federal funds, projects may be added to the list that utilize additional federal funds provided that state match is available and there are no projects where the state funds can be supplanted following approval by the office of financial management; and

(f) In the event of an emergency, the department is allowed to add emergency projects to the list and delay currently funded projects in order to fund the emergency projects following approval by the office of financial management.

(2) The motor vehicle account--state appropriation includes $53,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation. The motor vehicle account--state appropriation includes $18,038,000 in unexpended proceeds from bond sales authorized in RCW 47.10.843 for mobility and economic initiative improvement projects.

(3) The motor vehicle account--state appropriation includes $428,000,000 in proceeds from the sale of bonds authorized by House Bill No. 2232. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

(4) To manage some projects more efficiently, federal funds may be transferred from program Z to program I to replace those federal funds in a dollar-for-dollar match. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

(5) The Tacoma Narrows toll bridge account--state appropriation includes $567,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The Tacoma Narrows toll bridge account--state appropriation includes $46,300,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.843 for the Tacoma Narrows bridge project.

(6) The special category C account--state appropriation includes $44,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.812. The transportation commission may authorize the use of current revenues available in the special category C account in lieu of bond proceeds for any part of the state appropriation.

(7) $2,000,000 of the motor vehicle account--state appropriation is provided solely for an environmental impact statement on increasing capacity across the Columbia River in southwest Washington. This appropriation will not complete the environmental impact statement.

(8) $4,000,000 of the motor vehicle account--state appropriation is provided solely for the environmental impact statement on the widening of SR 520 Evergreen floating bridge subject to the following conditions:

(a) The "6-lane expandable to 8" alternative will be kept as one of the environmental impact statement (EIS) alternatives but it will no longer be designated the preliminary preferred alternative. The EIS identification of a preferred alternative will occur after all alternatives are fully evaluated;

(b) The standards contained in the DO NO HARM statement will be the primary and major standards used to evaluate the impacts of each alternative;

(d) A "4-lane expandable to include 2-lanes of fixed guide way HCT" alternative will be added to the alternatives studied in the DEIS. Two variants of this alternative will be studied: (i) With 4 general purpose lanes, and (ii) with 2 general purpose lanes and 2 "hot" lanes; and

(e) The DEIS evaluation of the impact of the hot lanes must explicitly include the socio-economic impacts on different income groups resulting from the price rationing of highway transportation services.

(9) $250,000 of the motor vehicle account--state appropriation and an equal amount from the city of Seattle are provided solely for an analysis of the impacts that an expansion of SR 520 Evergreen floating bridge will have on the streets of North Capitol Hill, Roanoke Park, and Montlake. An advisory committee with 2 members each from Portage Bay/Roanoke Park Community Council, Montlake Community Council, and the North Capitol Hill community organization along with the secretary of transportation is established. The 7 member committee shall hire and oversee the contract with a transportation consulting organization to (a) perform an analysis of such impacts and (b) design a traffic and circulation plan that mitigates the adverse consequences of such impacts. If the city of Seattle does not agree to provide $250,000 by January 1, 2004, the amount provided in this subsection shall lapse.

(10) $14,000,000 of the motor vehicle account--state appropriation is provided for design and to begin construction of the Fast 1 identified grade separation/underpass project at Broad Street/Elliot Avenue.

(11) $9,000,000 of the motor vehicle account--state appropriation is provided for the SR 522, University of Washington-Bothell campus access project. This amount will cover approximately one-half of the construction costs.

NEW SECTION. Sec. 306. FOR THE DEPARTMENT OF TRANSPORTATION-- PRESERVATION--PROGRAM P

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$204,732,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$458,010,000

Motor Vehicle Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,086,000

Multimodal Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,690,000

Multimodal Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,247,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$681,765,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $204,732,000 of the motor vehicle account--state appropriation, $458,010,000 of the motor vehicle account--federal appropriation, $13,086,000 of the motor vehicle account--local appropriation, $1,690,000 of the multimodal transportation account--state appropriation, and $4,247,000 of the multimodal transportation account--federal appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL4--house transportation committee project list. In order to provide the flexibility needed to manage a large highway construction program with a significant amount of federal funds, changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(2) The department of transportation is authorized to maximize the use of federal and state funds to implement the provisions of this section.

(3) To manage some projects more efficiently, federal funds may be transferred from program Z to program P to replace those federal funds in a dollar-for-dollar match. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department shall not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

(4) The motor vehicle account--state appropriation includes $2,850,000 in proceeds from the sale of bonds authorized in RCW 47.10.761 and 47.10.762 for emergency purposes.

(5) The department of transportation shall continue to implement the lowest life cycle cost planning approach to pavement management throughout the state to encourage the most effective and efficient use of pavement preservation funds. Emphasis should be placed on increasing the number of roads addressed on time and reducing the number of roads past due.

(6) The motor vehicle account--state appropriation includes $77,700,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

NEW SECTION. Sec. 307. FOR THE DEPARTMENT OF TRANSPORTATION-- TRAFFIC OPERATIONS--PROGRAM Q--CAPITAL

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,688,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,510,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26,198,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $11,688,000 of the motor vehicle account--state appropriation and $14,510,000 of the motor vehicle account--federal appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL4--house transportation committee project list. In order to provide the flexibility needed to manage a large highway construction program with a significant amount of federal funds, changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(2) The motor vehicle account--state appropriation includes $10,024,000 for state matching funds for federally selected competitive grant or congressional earmark projects other than the commercial vehicle information system and network. These moneys shall be placed into reserve status until such time as federal funds are secured and a state match is required.

NEW SECTION. Sec. 308. FOR THE DEPARTMENT OF TRANSPORTATION-- WASHINGTON STATE FERRIES CONSTRUCTION--PROGRAM W

Puget Sound Capital Construction Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . .$149,959,000

Puget Sound Capital Construction Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . .$34,800,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$184,759,000

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

(1) $149,959,000 of the Puget Sound capital construction account-- state appropriation, and $34,800,000 of the Puget Sound capital construction account--federal appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL4--house transportation committee project list. In order to provide the flexibility needed to manage a large ferry construction program with a significant amount of federal funds, changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(2) The Puget Sound capital construction account--state appropriation includes $45,000,000 in proceeds from the sale of bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead time materials acquisition for the Washington state ferries. The transportation commission may authorize the use of current revenues available to the motor vehicle account in lieu of bond proceeds for any part of the state appropriation.

(3) Of the funds appropriated in this section, $5,337,000 is provided for emergency repairs, $77,272,000 is provided for terminal preservation and improvements, $84,191,000 is provided for vessel preservation, $13,283,000 is provided for passenger-only vessel and terminal preservation and improvements, and $4,676,000 is reappropriated for work not completed in the 2001-03 biennium.

(4) The Washington state ferries must prepare a strategic plan for the placement of multimodal terminals in Washington state. This plan should, at a minimum, identify and evaluate potential sites for multimodal terminals, and identify and evaluate possible financing options for placement of these terminals. No improvement funds may be spent on new terminals until the strategic plan has been completed. The department must report to the transportation committees of the legislature by December 1, 2004, on the options, strategies, and recommendations for locating and financing multimodal terminals.

(5) The Washington state ferries must conduct an analysis of the long-term need for the Shaw Terminal. At a minimum, this analysis should address the viability and role of the terminal, as well as the availability and suitability of alternative methods of accessing Shaw Island. No preservation funds may be spent on the Shaw Terminal until the Shaw Terminal analysis has been completed. The department must report to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for the Shaw Island terminal.

(6) The department of transportation should work with the Washington state treasurer and others, as appropriate, to identify and evaluate alternative financing options to add new boats to the Washington state ferries system. This evaluation should be focused on providing the department future flexibility. The current financing plan assumes that two auto boats and one passenger-only boat will be financed through revenues generated through mechanisms provided in current law, with an additional 2 auto boats and one passenger-only boat financed through additional revenues. The department shall evaluate the possibilities of financing a fifth auto boat through operating savings, additional financing mechanisms, or a combination of the two approaches. In developing a plan for new boats, the department shall work with other parties interested in acquiring similar boats to determine if partnerships can be developed that would reduce the costs per boat for all parties through contracting with a shipbuilder for a larger number of boats to be delivered. The department must report to the transportation committees of the legislature by December 1, 2003, on the options, strategies, and recommendations for financing alternatives.

(7) The department shall evaluate the existing process for designing and building new vessels. In reviewing the process, the department shall compare and contrast standard shipbuilding industry methods with current authorized design-build processes; including the industry use of owner's requirements or functional specifications as a basis for developing contract specifications and contract guidance drawings. Additional analysis of existing processes with industry practices should include a comparison of the impact of the two approaches on the overall, long-term vehicle operating, maintenance, and preservation costs. A report of the findings shall be provided to the transportation committees of the legislature by December 1, 2004.

(8) The next new class of auto ferries shall be known as the "San Juan" class ferry.

NEW SECTION. Sec. 309. FOR THE DEPARTMENT OF TRANSPORTATION-- RAIL--PROGRAM Y--CAPITAL

Essential Rail Assistance Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $770,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $49,348,000

Multimodal Transportation Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $9,499,000

Washington Fruit Express Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$500,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,117,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $49,348,000 of the multimodal transportation account--state appropriation and $9,499,000 of the multimodal transportation account-- federal appropriation, $770,000 of the essential rail assistance account--state appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL5--house transportation committee rail project list. Changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(d) In order to maximize federal funding and ensure that the state does not lose any available federal funds, projects may be added to the list that utilize additional federal funds provided that state match is available and there are no projects where the state funds can be supplanted following approval by the office of financial management; and

(e) In the event of an emergency, the department is allowed to add emergency projects to the list and delay currently funded projects in order to fund the emergency projects following approval by the office of financial management.

(2) $770,000 of the essential rail assistance account--state appropriation and $230,000 of the multimodal transportation account-- state appropriation are provided solely for emerging projects that would result in maintaining service on light-density rail lines, or would result in creating new jobs in rural or depressed areas. Projects selected to be funded under this section and not specifically identified by the list referenced in subsection (1) of this section must be approved in advance by the office of financial management.

(3) $662,000 of the multimodal transportation account--federal appropriation is provided solely for small scale improvements on the Pacific Northwest Corridor.

(4) $500,000 of the Washington fruit express account--state appropriation is provided solely for leasing Washington fruit express cars.

(5) The appropriations in this section are subject to the conditions and limitations of section 501 of this act.

(6) $2,000,000 of the multimodal transportation account--state appropriation is to be placed in reserve status by the office of financial management to be held until the department identifies the location for a new transload facility at either Wenatchee or Quincy. The funds are to be released upon determination of a location and approval by the office of financial management.

(7) $7,500,000 of the multimodal transportation account--state appropriation is provided solely for an additional train set for operation between Seattle and Portland, Oregon. If negotiations with the state of Oregon for purchase of an existing train set fail or alternative options for securing a train set does not materialize, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 310. FOR THE DEPARTMENT OF TRANSPORTATION-- LOCAL PROGRAMS--PROGRAM Z--CAPITAL

Highway Infrastructure Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$207,000

Highway Infrastructure Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,602,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$46,116,000

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,760,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$60,685,000

The appropriations in this section are subject to the following conditions and limitations:

(1) $17,211,000 of the motor vehicle account--state appropriation and $5,034,000 of the multimodal transportation account--state appropriation are provided solely to implement the activities and projects included in the transportation executive information systems project list named 03HTCPL4--house transportation committee project list. In order to provide the flexibility needed to manage a large highway construction program with a significant amount of federal funds, changes to the list may occur under the following conditions and restrictions:

(b) Projects that were completed in the 2001-03 biennium and do not require expenditure in the 2003-05 biennium may be removed from the list following approval by the office of financial management;

(2) To manage some projects more efficiently, federal funds may be transferred from program Z to programs I and P and state funds shall be transferred from programs I and P to program Z to replace those federal funds in a dollar-for-dollar match. Fund transfers authorized under this subsection shall not affect project prioritization status. Appropriations shall initially be allotted as appropriated in this act. The department may not transfer funds as authorized under this subsection without approval of the transportation commission and the director of financial management. The department shall submit a report on those projects receiving fund transfers to the transportation committees of the senate and house of representatives by December 1, 2004.

(3) $8,486,000 of the motor vehicle account--state appropriation is reappropriated and provided for local freight mobility improvement projects.

(4) The motor vehicle--state appropriation includes $20,452,000 in unexpended proceeds from bond sales authorized by RCW 47.10.843.

(5) $7,576,000 of the multimodal transportation account--state appropriation is reappropriated and provided solely to fund the first phase of a multiphase cooperative project with the state of Oregon to dredge the Columbia River. The department shall not expend the appropriation in this section unless agreement on ocean disposal sites has been reached that protects the state's commercial crab fishery. The amount provided in this subsection shall lapse unless the state of Oregon appropriates a dollar-for-dollar match to fund its share of the project.

(6) $1,156,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional small city pavement preservation program grants, to be administered by the department's highways and local programs division. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded small city pavement preservation program grant funds, but does not report activity on the project within one year of grant award, should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

(7) $4,010,000 of the motor vehicle account--state appropriation is reappropriated and provided solely for additional traffic and pedestrian safety improvements near schools. The highways and local programs division within the department of transportation shall administer this program. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded traffic and pedestrian safety improvement grant funds, but does not report activity on the project within one year of grant award should be reviewed by the department to determine whether the grant should be terminated. The department must promptly close out grants when projects have been completed, and identify where unused grant funds remain because actual project costs were lower than estimated in the grant award. The department shall expeditiously extend new grant awards to qualified projects when funds become available either because grant awards have been rescinded for lack of sufficient project activity or because completed projects returned excess grant funds upon project closeout.

(8) The motor vehicle account--state appropriation includes $12,000,000 in proceeds from the sale of bonds authorized by House Bill No. 2232. The transportation commission may authorize the use of current revenues available to the department of transportation in lieu of bond proceeds for any part of the state appropriation.

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

Highway Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$263,647,000

Ferry Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $43,340,000

Transportation Improvement Board Bond Retirement Account--State Appropriation. . . . . . . . $36,721,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,247,000

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $440,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$240,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$348,635,000

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $360,000

Special Category C Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$92,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $457,000

NEW SECTION. Sec. 403. FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR MVFT BONDS AND TRANSFERS

For transfer to the Tacoma Narrows toll bridge account. . . . . . . . . . . . . . . . . . . . . . . $567,000,000

The department of transportation is authorized to sell up to $567,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.

For transfer to the Puget Sound capital construction account. . . . . . . . . . . . . . . . . . . . $45,000,000

The department of transportation is authorized to sell up to $45,000,000 in bonds authorized by RCW 47.10.843 for vessel and terminal acquisition, major and minor improvements, and long lead-time materials acquisition for the Washington state ferries.

(1) Motor Vehicle Account--State Appropriation for motor vehicle fuel tax distributions to

cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$441,359,000

(2) Motor Vehicle Account--State Appropriation: For license permit and fee distributions to cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$51,652,000

(3) Multimodal Account--State Appropriation for distributions to transit agencies. . . . . . . . . . $12,000,000

For assistance in providing special needs transportation. $6,000,000 is to be distributed quarterly in fiscal year 2004, starting September 30 and $6,000,000 is to be distributed quarterly in fiscal year 2005, starting September 30. Distributions shall be prorated based on the amount expended demand response service and route deviated service in calendar year 2001 as reported in the "Summary of Public Transportation-2001" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions in any fiscal year. The amount over thirty percent will be prorated to the remaining transit agencies based on the above demand response service and route deviated service expenditures. The department of transportation shall notify the state treasurer of the amounts to be distributed to each transit agency.

transit agencies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,000,000

Provided to implement sales tax equalization as required by House Bill No. 2229. If House Bill No. 2229 is not enacted into law the amount provided for distribution in this subsection shall lapse. The department of revenue will notify the state treasurer of the amounts and agencies to receive the distribution.

For transfer to the Motor Vehicle Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,000,000

For motor vehicle fuel tax refunds and transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $465,152,000

For transfer to the multimodal transportation account--state. . . . . . . . . . . . . . . . . . . . .$10,000,000

The state treasurer shall perform the transfers from the state patrol highway account and the highway safety account to the motor vehicle account on a quarterly basis.

For transfer to Puget Sound Ferry Operations Account. . . . . . . . . . . . . . . . . . . . . . . . .$19,757,000

For transfer to the Motor Vehicle Fund--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,954,000

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . .$84,000,000

For transfer to Puget Sound Ferry Operations Account. . . . . . . . . . . . . . . . . . . . . . . . . .$5,400,000

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . .$13,300,000

For transfer to Puget Sound Capital Construction Account. . . . . . . . . . . . . . . . . . . . . .$21,000,000

The transfers identified in this section are subject to the following conditions and limitations:

(a) The department of transportation shall only transfer funds in subsections (2), (3), and (5) of this section up to the level provided, on an as-needed basis.

(b) The department of transportation shall transfer funds in subsection (6) of this section up to the amount identified, provided that a minimum balance of $5,000,000 is retained in the Puget Sound ferry operations account.

For the administrative expenses of the judicial retirement system. . . . . . . . . . . . . . . . . . .$223,304

NEW SECTION. Sec. 408. FOR THE OFFICE OF FINANCIAL MANAGEMENT-- CONTRIBUTIONS TO RETIREMENT SYSTEMS AND EMPLOYEE HEALTH BENEFITS

OFFICE OF FINANCIAL MANAGEMENT--CONTRIBUTIONS TO RETIREMENT SYSTEMS AND EMPLOYEE HEALTH BENEFITS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,000

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,000

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,823,000

State Patrol Highway Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$47,000

State Patrol Highway Account--Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,000

Rural Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$891,000

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$19,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,919,000

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,211,000

Urban Arterial Trust Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000

County Arterial Preservation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,000

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

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$9,960,000

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

NEW SECTION. Sec. 410. The department of transportation is authorized to undertake federal advance construction projects under the provisions of 23 U.S.C. Sec. 115 in order to maintain progress in meeting approved highway construction and preservation objectives. The legislature recognizes that the use of state funds may be required to temporarily fund expenditures of the federal appropriations for the highway construction and preservation programs for federal advance construction projects prior to conversion to federal funding.

NEW SECTION. Sec. 501. The department of transportation shall maximize the use of state, federal, and local funds to implement the provisions of this act. Appropriations shall initially be allotted as appropriated by this act. Subsequent allotment modifications shall not permit moneys that are provided solely for a specified purpose to be used for other than that specified purpose. After approval by the director of the office of financial management and unless specifically prohibited by this act, the department may transfer appropriations between the motor vehicle account--state, motor vehicle account-- federal, and motor vehicle account--private/local appropriations and between the multimodal transportation account--state, multimodal transportation account--federal, and multimodal account--local appropriations. However, the department shall not expend more than the total amount appropriated for both these accounts.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,596,000

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

(1) $2,823,000 of the motor vehicle account--state appropriation is provided for the operation of the house of representatives transportation committee.

(2) To the extent possible, this appropriation shall utilize funds allocated under RCW 46.68.110(2).

(3) To the extent possible, this appropriation shall utilize funds allocated under RCW 46.68.120(3).

(4) The house of representatives transportation committee shall conduct a study of the use of motorized scooters. The study shall, at a minimum, identify and analyze the safety issues associated with use of motorized scooters, including use by children, commuters, and the disabled. House of representatives transportation committee cochairs shall each appoint one member from their respective caucus to serve as cochair of the study group. The chair of the senate transportation committee may also appoint two members from the senate transportation committee, one from each caucus, to participate in the study. The study shall be staffed by house of representatives transportation committee staff. The study group shall report back to the house of representatives transportation committee by January 1, 2002.

(((4))) (5) The house of representatives transportation committee shall conduct a study of the effect of the weight of fire-fighting apparatus on state roadways. The study shall determine, at a minimum, the various types of fire-fighting apparatus currently in use on state roadways; the size, weight and load effect of fire-fighting apparatus that are currently in use or that potentially could be in use on the state roadways, as well as on state bridges; and the effect on public safety. The study may examine state and federal laws that affect fire- fighting apparatuses. House of representatives transportation committee cochairs shall each appoint one member from their respective caucus to serve as cochair of the study group. The study shall be staffed by house of representatives transportation committee staff. The study group will report back to the house of representatives transportation committee by January 1, 2002.

(((5))) (6) The legislative transportation committee shall conduct a feasibility study of potential for economic partnerships between the Washington state ferries and local government entities, including but not limited to port districts. The study is intended to improve ferry terminals. The study shall, at a minimum, identify the market, physical, and economic factors that should be examined in determining whether an economic or commercial development partnership project on or around Washington state ferry terminals is likely to produce revenue for the partners. The study shall apply those factors to an analysis of each terminal used by Washington state ferries and recommend whether further exploration of state and local partnerships would be of potential economic benefit to the partners. The entity selected to perform the study through the request for proposals process will report back to the transportation committees of the legislature by December 1, 2001.

(((6))) (7) The legislative transportation committee, in cooperation with an areawide transportation system or systems, shall undertake an evaluation of providing locally sponsored transit services in a local community supplemental to those services provided by an areawide system. The evaluation shall address:

(b) The impact of such service on ridership on the areawide system and on any regional systems;

(d) Institutional arrangements affecting the institution of supplemental services.

The committee shall work with the department of transportation, areawide transit providers, community officials, private businesses, labor organizations, and others as appropriate in conducting the evaluation, and in developing a pilot project if feasible. The committee shall also conduct a study of local transit systems with the purpose of making recommendations to make local transit services more seamless and efficient. The committee shall provide an interim progress report to the legislature by January 2002. The committee shall report its findings to the legislature not later than December 1, 2002.

(((7))) (8) The legislative transportation committee shall undertake an evaluation of the statutory exemptions for transportation taxes, including but not limited to motor vehicle fuel taxes. The committee shall report its findings to the legislature by December 1, 2003.

(((8))) (9) The legislative transportation committee will convene a working group to review the costs, processes, and other considerations relating to special vehicle license plates. The working group will also review special license plate tabs and emblems. The committee will report its findings to the legislature by December 1, 2002.

(((9))) (10) The legislative transportation committee shall form a working group to evaluate the feasibility of developing an alternative corridor to Interstate 5 and Interstate 405 to expedite the movement of commerce between the Canadian border, the central Puget Sound region, the south Puget Sound region, and more southerly areas. The corridor would run from approximately the Canadian border in the north to approximately Lewis county in the south. This alternative corridor analysis shall address truck, rail, pipeline, and other utility needs for the corridor, to determine the feasibility of financing and constructing such a corridor, taking into consideration: (a) Anticipated present and future freight demand as well as freight traffic relief for existing state highway and rail routes; (b) the potential for carrying general purpose traffic to provide relief for other state highway routes; (c) a cost-benefit analysis detailing various funding possibilities, including federal funds and the use of charges and tolls to fund construction and operation of the corridor as a utility corridor and a toll facility; (d) an analysis detailing possible right of way locations, including but not limited to property donations, trades, or credits between or among the public and private sector; and (e) possible private sector, local, or other partnerships that may be used to fund the project. The working group shall report its findings to the full committee by December 15, 2002.

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($164,147,000))

State Patrol Highway Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($7,278,000))

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .(($169,000))

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($171,594,000))

The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for the activities of the field operations bureau:

(1) As a result of the elimination of the vehicle inspection number (VIN) program, no permanent Washington state patrol employee shall be displaced from employment without the opportunity to fill a vacant patrol position for which he or she has a preference and meets the minimum qualifications. For the purpose of the VIN program elimination, the guidelines under chapter 356-26 WAC (Registers- Certifications) shall be suspended for those employees holding the classification of VIN 1 or 2.

(2) To the extent possible, the agency shall transfer displaced VIN personnel into the 20 newly created school bus inspection and motor carrier safety assistance program positions. The agency shall fill existing vacant positions within the commercial vehicle division with displaced VIN personnel. The agency shall report by December 31, 2001, to the senate and house of representatives transportation committees on efforts to relocate displaced VIN personnel.

Multimodal Transportation Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,247,000

State Patrol Highway Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($71,736,000))

State Patrol Highway Account--Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$735,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($77,718,000))

The appropriations in this section are subject to the following conditions and limitations and specified amounts are provided solely for the activities of the support services bureau:

(1) $67,000 of the state patrol highway account--state appropriation is provided solely for the patrol to work jointly with the department of transportation, the military department, and the department of natural resources, in coordination with the state interoperability executive committee, on the development and implementation of a secure geographical information system database to illustrate locations and specifications of statewide radio and microwave towers

(2) $5,247,000 of the multimodal transportation account--state appropriation and $2,299,000 of the state patrol highway account--state appropriation is a one time funding of general fund activities. The general fund will resume funding these activities beginning in the 2003-05 biennium.

(3) The Washington state patrol shall review the policy of allowing commissioned uniformed officers to use personally assigned vehicles for commuting purposes. This provision applies to every Washington state patrol officer except the chief and any officer that requires use of a vehicle for work performed throughout the day. The agency shall submit to the house of representatives and senate transportation committees by December 1, 2002, a list of officers that use vehicles for commuting purposes and any revisions to the vehicle use policy resulting from the review required under this subsection.

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $88,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $81,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($7,724,000))

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$55,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,400,000))

Licensing Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$173,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($12,524,000))

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

(1) $6,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 5354 in the form passed by the legislature. If Senate Bill No. 5354 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(2) $14,000 of the motor vehicle account--state appropriation and $3,000 of the highway safety account--state appropriation are provided solely for the implementation of Senate Bill No. 6814 in the form passed by the legislature. If Senate Bill No. 6814 is not enacted in the form passed by the legislature the amounts provided in this subsection shall lapse.

(3) $26,000 of the motor vehicle account--state appropriation and $1,000 of the highway safety account--state appropriation are provided solely for the implementation of Senate Bill No. 6748 in the form passed by the legislature. If Senate Bill No. 6748 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(4) $2,000 of the motor vehicle account--state appropriation and $4,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 5626 in the form passed by the legislature. If Senate Bill No. 5626 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(5) $11,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 6461 in the form passed by the legislature. If Senate Bill No. 6461 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

Marine Fuel Tax Refund Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,000

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $34,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,735,000))

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$31,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,695,000

Licensing Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$213,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($9,723,000))

The appropriations in this section are subject to the following conditions and limitations:

(1) The department of licensing shall report to the legislative transportation committees on the progress of the expanded internet service no later than December 15, 2002.

(2) $4,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 5354 in the form passed by the legislature. If Senate Bill No. 5354 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(3) $4,000 of the motor vehicle account--state appropriation and $2,000 of the highway safety account--state appropriation are provided solely for the implementation of Senate Bill No. 6814 in the form passed by the legislature. If Senate Bill No. 6814 is not enacted in the form passed by the legislature the amounts provided in this subsection shall lapse.

(4) $19,000 of the motor vehicle account--state appropriation and $1,000 of the highway safety account--state appropriation are provided solely for the implementation of Senate Bill No. 6748 in the form passed by the legislature. If Senate Bill No. 6748 is not enacted in the form passed by the legislature the amounts provided in this subsection shall lapse.

(5) $1,000 of the motor vehicle account--state appropriation and $3,000 of the highway safety account--state appropriation are provided solely for the implementation of Senate Bill No. 5626 in the form passed by the legislature. If Senate Bill No. 5626 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(6) $8,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 6461 in the form passed by the legislature. If Senate Bill No. 6461 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

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

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $578,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($58,191,000))

Licensing Services Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,240,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($63,035,000))

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

(1) $82,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6814 in the form passed by the legislature. If Senate Bill No. 6814 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(2) $376,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6748 in the form passed by the legislature. If Senate Bill No. 6748 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(3) $77,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 5354 in the form passed by the legislature. If Senate Bill No. 5354 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(4) The department shall work cooperatively with the national guard to develop and make available a national guard sticker which may be affixed to a license plate. The stickers shall be available upon application. The department shall charge a fee for the stickers sufficient to defray the costs of production.

(5) The department shall work cooperatively with the Washington state council of fire fighters to develop and make available a fire fighter sticker which may be affixed to a license plate. The stickers shall be available upon application to members of the international association of fire fighters. The department shall charge a fee for the stickers sufficient to defray the costs of production.

(6) $22,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 5626 in the form passed by the legislature. If Senate Bill No. 5626 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

Motorcycle Safety Education Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,573,000

Highway Safety Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($82,175,000))

Highway Safety Account--Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$788,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($85,536,000))

The appropriations in this section are subject to the following conditions and limitations:

(1) The department of licensing shall prepare a capital project plan adopting a process for using certificates of participation to purchase licensing services offices if the combined principle and interest payments are the same or less than existing or future leases on comparable facilities.

(2) $21,000 of the highway safety fund--state appropriation is provided solely for the implementation of Senate Bill No. 6748 in the form passed by the legislature. If Senate Bill No. 6748 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(3) $36,000 of the highway safety fund--state appropriation is provided solely for the implementation of Senate Bill No. 6814 in the form passed by the legislature. If Senate Bill No. 6814 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(4) $162,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 6461 in the form passed by the legislature. If Senate Bill No. 6461 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

(5) $56,000 of the highway safety account--state appropriation is provided solely for the implementation of Senate Bill No. 5626 in the form passed by the legislature. If Senate Bill No. 5626 is not enacted in the form passed by the legislature the amount provided in this subsection shall lapse.

Aeronautics Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($5,349,000))

Aircraft Search and Rescue Safety and Education Account--State Appropriation. . . . . . . . . . . . . .$160,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($5,509,000))

DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U Payments in this section represent charges from other state agencies to the department of transportation.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,626,000

(((1))) (2) FOR PAYMENT OF DEPARTMENT OF GENERAL ADMINISTRATION OFFICE OF RISK MANAGEMENT FEES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $464,000

Puget Sound Ferry Operations--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$154,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $713,000

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,047,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,237,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,755,000

Motor Vehicle Fund--Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . .$4,204,000

The office of risk management shall evaluate the risk pool premium assessments to ensure that proper tracking, measuring, and reporting methods have been utilized to ensure funding equity has been maintained. "Funding equity" includes but is not limited to demonstrating that premiums assessed to the department of transportation will, over time, not exceed claims paid in order to ensure that premiums paid by the department of transportation are not unconstitutionally expended for nonhighway purposes. The office of risk management shall make a full report of its findings to the legislature no later than January 15, 2002.

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $251,000

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

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,547,000

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $457,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($42,829,000))

Puget Sound Ferry Operations Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . (($311,312,000))

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

(1) The appropriation is based on the budgeted expenditure of $35,159,000 for vessel operating fuel in the 2001-2003 biennium. If the actual cost of fuel is less than this budgeted amount, the excess amount may not be expended. If the actual cost exceeds this amount, the department shall request a supplemental appropriation.

(2) The appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2001-2003 biennium may not exceed $207,065,000 plus a dollar amount, as prescribed by the office of financial management, that is equal to any insurance benefit increase granted general government employees in excess of $432.82 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for the respective fiscal year, a dollar amount as prescribed by the office of financial management for costs associated with pension amortization charges, and a dollar amount prescribed by the office of financial management for salary increases during the 2001-2003 biennium. For the purposes of this section, the expenditures for compensation paid to ferry employees shall be limited to salaries and wages and employee benefits as defined in the office of financial management's policies, regulations, and procedures named under objects of expenditure "A" and "B" (7.2.6.2).

The prescribed salary and insurance benefit increase or decrease dollar amount that shall be allocated from the governor's compensation appropriations is in addition to the appropriation contained in this section and may be used to increase or decrease compensation costs, effective July 1, 2001, and thereafter, as established in the 2001-2003 general fund operating budget.

(3) The department shall issue a request for information from entities interested in purchasing advertising on board Washington state ferry vessels. The department shall evaluate the proposals and report back to the legislature's transportation committees in January 2002 regarding the potential for revenue from different types of advertising.

(4) The department may enter into contracts with private vendors to sell ferry tickets and medium at locations other than Washington state ferry terminals or facilities.

(a) The department may enter into the contracts only (i) with private vendors that are already established businesses offering goods for sale to the general public; and (ii) if it determines that the vendor's established location has the potential to serve a significant percentage of the customers using a particular ferry route.

(b) The department may adopt necessary rules and procedures to allow the use of credit and debit cards to purchase ferry tickets or medium from a private vendor who has contracted with the department to sell ferry tickets or medium. The department may establish a convenience fee to be paid by all persons purchasing ferry tickets and medium at locations other than Washington state ferry terminals or facilities. The convenience fee must be sufficient to offset the charges imposed on the department by the credit and debit card companies. In no event may the use of credit or debit cards authorized by this section create a loss of revenue to the state. The use of a personal credit card does not rely upon the credit of the state as prohibited by Article VIII, section 5 of the state Constitution.

(5) The legislature recognizes the value of a regional fare collection system to promote intermodal travel throughout Washington state ferries' Puget Sound service area and therefore encourages the department to resume participation in the regional fare coordination project (smart card). The department shall develop a request for funding of the on-going operating costs associated with the regional fare coordination project and shall present this request to the 2003 legislature. The request for funding shall be sufficient to support a system that prevents the disclosure of personally identifying information of persons who use a smart card to facilitate payment of ferry fares. The requested system may facilitate the disclosure of aggregate information on fare collection to governmental agencies or groups concerned with public transportation or public safety as long as the data does not contain any personally identifying information. The requested system shall not prevent the release of personally identifying information to law enforcement agencies when required by a subpoena.

Sec. 1301. 2001 2nd sp.s. c 14 s 303 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($13,046,000))

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

Highway Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($208,206,000))

Ferry Bond Retirement Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $52,473,000

State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($40,856,000))

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($4,588,000))

Special Category C Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($631,000))

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .(($340,000))

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($307,094,000))

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Motor Vehicle Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($459,000))

Special Category C Account Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($41,000))

Transportation Improvement Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$34,000

TOTAL APPROPRIATION. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($534,000))

cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .(($428,981,000))

Motor Vehicle Account Appropriation for motor vehicle license, permit, and fee distributions

to cities and counties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$56,304,000

For transfer to the Motor Vehicle Fund--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,344,000))

The department of transportation shall only transfer funds provided under this subsection (((1) of this section)) on an as-needed basis.

(2) ((Public Transportation Systems Account--State Appropriation: For transfer to the

Multimodal Transportation Account--State. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,911,000

(3))) State Patrol Highway Account--State Appropriation: For transfer to the Motor

Vehicle Account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$48,657,000

(((4))) (3) Motor Vehicle Account--State Appropriation: For motor vehicle fuel tax

refunds and transfers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($453,279,000))

(((6))) (4) Urban Arterial Trust Account--State Appropriation: For transfer of excess City

Hardship Assistance Program revenues to cities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,500,000

(((7))) (5) Highway Safety Account--State Appropriation: For transfer to the multimodal

transportation account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$20,000,000

(((8))) (6) Motor Vehicle Account--State Appropriation: For transfer to the Tacoma

Narrows toll bridge account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($839,000,000))

(((9))) (7) Highway Safety Account--State Appropriation: For transfer to the motor

vehicle account--state. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,000,000

(((1))) If Senate Bill No. 6814 is enacted in the form passed by the legislature, $16,191,000 of the transfer from the Washington state patrol account--state to the motor vehicle account--state shall lapse. The state treasurer shall perform the transfers from the state patrol highway account to the motor vehicle account on a quarterly basis.

(((2) The department of transportation is authorized to sell up to $800,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.))

NEW SECTION. Sec. 1405. A new section is added to 2001 2nd sp.s. c 14 (uncodified) to read as follows:

FOR THE STATE TREASURER--BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR MVFT BONDS AND TRANSFERS

Motor Vehicle Account--State Appropriation: For transfer to the Tacoma Narrows toll bridge

account. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $800,000,000

The department of transportation is authorized to sell up to $800,000,000 in bonds authorized by RCW 47.10.843 for the Tacoma Narrows bridge project. Proceeds from the sale of the bonds shall be deposited into the motor vehicle account. The department of transportation shall inform the treasurer of the amount to be deposited.

NEW SECTION. Sec. 1501. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 1502. 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 "appropriations;" strike the remainder of the title and insert "amending 2002 c 359 ss 205, 207, 208, 210, 211, 212, 213, 215, 223, 226, 401, 402, 403, and 404 (uncodified); amending 2001 2nd sp.s. c 14 s 303 (uncodified); adding a new section to 2001 2nd sp.s. c 14 (uncodified); creating new sections; making appropriations and authorizing expenditures for capital improvements; and declaring an emergency."

"(b) Unless specific 30-year exemptions are received from the United States Coast Guard in operating the international run, the new ferries must be of comparable quality and design to the Jumbo Mark II Class ferry and meet the certifications of the United States Coast Guard, the American Bureau of Shipping, and safety of life at sea.

Representative Morris spoke in favor of the adoption of the amendment to the amendment.

On page 32, line 17, after "by", strike "December 1, 2004" and insert "December 1, 2003"

Representatives Morris and Woods spoke in favor of the adoption of the amendment to the amendment.

Representative Anderson moved the adoption of amendment (358) to amendment (344):

"NEW SECTION. Sec. 502. No funding appropriated in this act shall be spent within King, Pierce and Snohomish counties until the governing board for the regional transit authority in these counties has been directly elected by a majority of voters within the authority's taxing district."

Representative Kessler requested a Scope and Object ruling on amendment (358) to amendment (344).

Mr. Speaker (Representative Lovick presiding): "Substitute House Bill No. 1163 is the state transportation budget for the 2003-05 biennium. It provides state funds for various transportation projects.

Amendment 358 relates to the governing board of a regional transportation authority that receives no funds in the budget bill. The purpose of the amendment - to require changes in the method by which the authority's board members are chosen - is completely external to the purpose of the bill, providing state funds for various transportation projects.

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

Representatives Murray, Wallace, Romero and Jarrett spoke in favor of passage of the bill.

The Speaker stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1163.

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1163 and the bill passed the House by the following vote: Yeas - 57, Nays - 40, Absent - 0, Excused - 1.

Voting yea: Representatives Berkey, Blake, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McIntire, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 57.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Kristiansen, McDonald, McMahan, McMorris, Mielke, Miloscia, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump and Talcott - 40.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1163, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2231, by Representatives Murray, Wallace, Cooper, Clibborn, Rockefeller, Simpson, Hudgins and Hankins

The bill was read the second time. There being no objection, Substitute House Bill No. 2231 was substituted for House Bill No. 2231 and the substitute bill was placed on the second reading calendar.

NEW SECTION. Sec. 101. The legislature finds that the state's transportation system is in critical need of repair, restoration, and enhancement. Bridges and major highway structures are at risk of failure during a seismic episode; ferry vessels are aged and nearing the end of their useful life; increased traffic congestion on state highways and local roadways threatens the state's economic vitality and quality of life; highways in some areas are experiencing high accident rates; and the mobility of persons with special needs or who live in rural areas has been greatly impaired by cuts in public transportation services, thus threatening our citizens' ability to access health care, job opportunities, and educational institutions. The revenues generated by this act are dedicated to funds, accounts, and activities that are critically necessary to improve the delivery of state transportation projects and services.

(1) In lieu of all other vehicle licensing fees, unless specifically exempt, and in addition to ((the excise tax prescribed in chapter 82.44 RCW and)) the mileage fees prescribed for buses and stages in RCW 46.16.125, there shall be paid and collected annually for each truck, motor truck, truck tractor, road tractor, tractor, bus, auto stage, or for hire vehicle with seating capacity of more than six, based upon the declared combined gross weight or declared gross weight thereof pursuant to the provisions of chapter 46.44 RCW, the following licensing fees by such gross weight:

declared gross weight			schedule a	schedule b
4,000 lbs.	. . . . . . . .	$	37.00	. . . .	$	37.00
6,000 lbs.	. . . . . . . .	$	44.00	. . . .	$	44.00
8,000 lbs.	. . . . . . . .	$	55.00	. . . .	$	55.00
10,000 lbs.	. . . . . . . .	$	62.00	. . . .	$	62.00
((12,000 lbs.	. . . . . . . .	$	72.00	. . . .	$	72.00
14,000 lbs.	. . . . . . . .	$	82.00	. . . .	$	82.00
16,000 lbs.	. . . . . . . .	$	92.00	. . . .	$	92.00
18,000 lbs.	. . . . . . . .	$	137.00	. . . .	$	137.00
20,000 lbs.	. . . . . . . .	$	152.00	. . . .	$	152.00
22,000 lbs.	. . . . . . . .	$	164.00	. . . .	$	164.00
24,000 lbs.	. . . . . . . .	$	177.00	. . . .	$	177.00
26,000 lbs.	. . . . . . . .	$	187.00	. . . .	$	187.00
28,000 lbs.	. . . . . . . .	$	220.00	. . . .	$	220.00
30,000 lbs.	. . . . . . . .	$	253.00	. . . .	$	253.00
32,000 lbs.	. . . . . . . .	$	304.00	. . . .	$	304.00
34,000 lbs.	. . . . . . . .	$	323.00	. . . .	$	323.00
36,000 lbs.	. . . . . . . .	$	350.00	. . . .	$	350.00
38,000 lbs.	. . . . . . . .	$	384.00	. . . .	$	384.00
40,000 lbs.	. . . . . . . .	$	439.00	. . . .	$	439.00
42,000 lbs.	. . . . . . . .	$	456.00	. . . .	$	546.00
44,000 lbs.	. . . . . . . .	$	466.00	. . . .	$	556.00
46,000 lbs.	. . . . . . . .	$	501.00	. . . .	$	591.00
48,000 lbs.	. . . . . . . .	$	522.00	. . . .	$	612.00
50,000 lbs.	. . . . . . . .	$	566.00	. . . .	$	656.00
52,000 lbs.	. . . . . . . .	$	595.00	. . . .	$	685.00
54,000 lbs.	. . . . . . . .	$	642.00	. . . .	$	732.00
56,000 lbs.	. . . . . . . .	$	677.00	. . . .	$	767.00
58,000 lbs.	. . . . . . . .	$	704.00	. . . .	$	794.00
60,000 lbs.	. . . . . . . .	$	750.00	. . . .	$	840.00
62,000 lbs.	. . . . . . . .	$	804.00	. . . .	$	894.00
64,000 lbs.	. . . . . . . .	$	822.00	. . . .	$	912.00
66,000 lbs.	. . . . . . . .	$	915.00	. . . .	$	1,005.00
68,000 lbs.	. . . . . . . .	$	954.00	. . . .	$	1,044.00
70,000 lbs.	. . . . . . . .	$	1,027.00	. . . .	$	1,117.00
72,000 lbs.	. . . . . . . .	$	1,098.00	. . . .	$	1,188.00
74,000 lbs.	. . . . . . . .	$	1,193.00	. . . .	$	1,283.00
76,000 lbs.	. . . . . . . .	$	1,289.00	. . . .	$	1,379.00
78,000 lbs.	. . . . . . . .	$	1,407.00	. . . .	$	1,497.00
80,000 lbs.	. . . . . . . .	$	1,518.00	. . . .	$	1,608.00
82,000 lbs.	. . . . . . . .	$	1,623.00	. . . .	$	1,713.00
84,000 lbs.	. . . . . . . .	$	1,728.00	. . . .	$	1,818.00
86,000 lbs.	. . . . . . . .	$	1,833.00	. . . .	$	1,923.00
88,000 lbs.	. . . . . . . .	$	1,938.00	. . . .	$	2,028.00
90,000 lbs.	. . . . . . . .	$	2,043.00	. . . .	$	2,133.00
92,000 lbs.	. . . . . . . .	$	2,148.00	. . . .	$	2,238.00
94,000 lbs.	. . . . . . . .	$	2,253.00	. . . .	$	2,343.00
96,000 lbs.	. . . . . . . .	$	2,358.00	. . . .	$	2,448.00
98,000 lbs.	. . . . . . . .	$	2,463.00	. . . .	$	2,553.00
100,000 lbs.	. . . . . . . .	$	2,568.00	. . . .	$	2,658.00
102,000 lbs.	. . . . . . . .	$	2,673.00	. . . .	$	2,763.00
104,000 lbs.	. . . . . . . .	$	2,778.00	. . . .	$	2,868.00
105,500 lbs.	. . . . . . . .	$	2,883.00	. . . .	$	2,973.00))
12,000 lbs.	. . . . . . . .	$	79.00	. . . .	$	79.00
14,000 lbs.	. . . . . . . .	$	90.00	. . . .	$	90.00
16,000 lbs.	. . . . . . . .	$	102.00	. . . .	$	102.00
18,000 lbs.	. . . . . . . .	$	154.00	. . . .	$	154.00
20,000 lbs.	. . . . . . . .	$	171.00	. . . .	$	171.00
22,000 lbs.	. . . . . . . .	$	185.00	. . . .	$	185.00
24,000 lbs.	. . . . . . . .	$	200.00	. . . .	$	200.00
26,000 lbs.	. . . . . . . .	$	211.00	. . . .	$	211.00
28,000 lbs.	. . . . . . . .	$	249.00	. . . .	$	249.00
30,000 lbs.	. . . . . . . .	$	287.00	. . . .	$	287.00
32,000 lbs.	. . . . . . . .	$	346.00	. . . .	$	346.00
34,000 lbs.	. . . . . . . .	$	368.00	. . . .	$	368.00
36,000 lbs.	. . . . . . . .	$	399.00	. . . .	$	399.00
38,000 lbs.	. . . . . . . .	$	438.00	. . . .	$	438.00
40,000 lbs.	. . . . . . . .	$	501.00	. . . .	$	501.00
42,000 lbs.	. . . . . . . .	$	521.00	. . . .	$	611.00
44,000 lbs.	. . . . . . . .	$	532.00	. . . .	$	622.00
46,000 lbs.	. . . . . . . .	$	572.00	. . . .	$	662.00
48,000 lbs.	. . . . . . . .	$	596.00	. . . .	$	686.00
50,000 lbs.	. . . . . . . .	$	647.00	. . . .	$	737.00
52,000 lbs.	. . . . . . . .	$	680.00	. . . .	$	770.00
54,000 lbs.	. . . . . . . .	$	734.00	. . . .	$	824.00
56,000 lbs.	. . . . . . . .	$	775.00	. . . .	$	865.00
58,000 lbs.	. . . . . . . .	$	806.00	. . . .	$	896.00
60,000 lbs.	. . . . . . . .	$	859.00	. . . .	$	949.00
62,000 lbs.	. . . . . . . .	$	921.00	. . . .	$	1,011.00
64,000 lbs.	. . . . . . . .	$	941.00	. . . .	$	1,031.00
66,000 lbs.	. . . . . . . .	$	1,048.00	. . . .	$	1,138.00
68,000 lbs.	. . . . . . . .	$	1,093.00	. . . .	$	1,183.00
70,000 lbs.	. . . . . . . .	$	1,177.00	. . . .	$	1,267.00
72,000 lbs.	. . . . . . . .	$	1,259.00	. . . .	$	1,349.00
74,000 lbs.	. . . . . . . .	$	1, 368.00	. . . .	$	1,458.00
76,000 lbs.	. . . . . . . .	$	1,478.00	. . . .	$	1,568.00
78,000 lbs.	. . . . . . . .	$	1,614.00	. . . .	$	1,704.00
80,000 lbs.	. . . . . . . .	$	1,742.00	. . . .	$	1,832.00
82,000 lbs.	. . . . . . . .	$	1,863.00	. . . .	$	1,953.00
84,000 lbs.	. . . . . . . .	$	1,983.00	. . . .	$	2,073.00
86,000 lbs.	. . . . . . . .	$	2,104.00	. . . .	$	2,194.00
88,000 lbs.	. . . . . . . .	$	2,225.00	. . . .	$	2,315.00
90,000 lbs.	. . . . . . . .	$	2,346.00	. . . .	$	2,436.00
92,000 lbs.	. . . . . . . .	$	2,466.00	. . . .	$	2,556.00
94,000 lbs.	. . . . . . . .	$	2,587.00	. . . .	$	2,677.00
96,000 lbs.	. . . . . . . .	$	2,708.00	. . . .	$	2,798.00
98,000 lbs.	. . . . . . . .	$	2,829.00	. . . .	$	2,919.00
100,000 lbs.	. . . . . . . .	$	2,949.00	. . . .	$	3,039.00
102,000 lbs.	. . . . . . . .	$	3,070.00	. . . .	$	3,160.00
104,000 lbs.	. . . . . . . .	$	3,191.00	. . . .	$	3,281.00
105,500 lbs.	. . . . . . . .	$	3,312.00	. . . .	$	3,402.00

Schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Schedule B applies to vehicles that tow trailers and are not covered under Schedule A.

Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.

The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.

(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.

(2) The proceeds from the fees collected under subsection (1) of this section shall be distributed in accordance with RCW 46.68.035.

Sec. 202. RCW 46.68.035 and 2000 2nd sp.s. c 4 s 8 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) The sum of two dollars for each vehicle shall be deposited into the multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.

(a) ((23.677)) 21.963 percent shall be deposited into the state patrol highway account of the motor vehicle fund;

(b) ((1.521)) 1.411 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; and

NEW SECTION. Sec. 203. Revenues attributable to the increased gross weight fees under section 201 of this act must be expended solely on transportation projects that directly benefit the movement of freight.

NEW SECTION. Sec. 204. The increased gross weight fees under section 201 of this act apply to registrations that become payable after July 1, 2003.

NEW SECTION. Sec. 301. A new section is added to chapter 82.44 RCW to read as follows:

(1) There is levied and there shall be collected a vehicle transfer tax on motor vehicles for the privilege of using the transportation system in this state. The tax authorized by this section shall be in addition to any other taxes authorized by law and shall be imposed on any retail sale, lease, or use of a motor vehicle upon which a state tax is imposed under chapter 82.08 or 82.12 RCW. However, the tax imposed by this section does not apply to the rental of a motor vehicle. The rate of the tax shall equal forty-six one-hundredths of one percent of the selling price when a state tax is imposed under chapter 82.08 RCW, or forty-six one-hundredths of one percent of the value of the article used when a state tax is imposed under chapter 82.12 RCW. The meaning ascribed to words and phrases in chapters 82.04, 82.08, and 82.12 RCW, insofar as applicable, have full force and effect with respect to the tax imposed by this section.

(2) For the purposes of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.

(3) The tax imposed in this section shall be collected and remitted in the same manner as excise taxes collected under chapters 82.08 and 82.12 RCW. The department of revenue shall collect and administer the tax imposed by this section. All administrative provisions in chapters 82.08, 82.12, and 82.32 RCW, insofar as they are applicable, apply to the tax imposed under this section. The department of revenue has the power to adopt rules as may be necessary to administer the provisions of this section. In the collection of tax imposed by this section, the department of revenue may designate the county auditors of the several counties of the state as its collecting agents. The county auditors shall collect and remit the tax imposed by this section in the same manner as the tax collected under RCW 82.12.045. No additional collection fee shall be deductible by a county auditor remitting the tax collected under this section. Any duties required by this section to be performed by the county auditor may be performed by the director of licensing but no collection fee shall be deductible by said director in remitting the tax revenue to the state treasurer.

(4) The revenue collected under this section shall be deposited into the multimodal transportation account created under RCW 47.66.070.

Sec. 401. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:

(1) A motor vehicle fuel tax rate of twenty-three cents per gallon ((shall apply)) applies to the sale, distribution, or use of motor vehicle fuel.

(2)(a) Beginning July 1, 2003, an additional and cumulative motor fuel tax rate of one cent per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(b) Beginning July 1, 2004, an additional and cumulative motor fuel tax rate of one cent per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(c) Beginning July 1, 2005, an additional and cumulative motor fuel tax rate of one cent per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(d) Beginning July 1, 2006, an additional and cumulative motor fuel tax rate of one cent per gallon applies to the sale, distribution, or use of motor vehicle fuel.

(1) There is hereby levied and imposed upon special fuel users a tax at the rate ((computed in the manner provided in RCW 82.36.025 on each)) of twenty-three cents per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature.

(2)(a) Beginning July 1, 2003, an additional and cumulative tax rate of one cent per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(b) Beginning July 1, 2004, an additional and cumulative tax rate of one cent per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(c) Beginning July 1, 2005, an additional and cumulative tax rate of one cent per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(d) Beginning July 1, 2006, an additional and cumulative tax rate of one cent per gallon of special fuel, or each one hundred cubic feet of compressed natural gas, measured at standard pressure and temperature shall be imposed on special fuel users.

(a) Special fuel is removed in this state from a terminal if the special fuel is removed at the rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(b) Special fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the special fuel immediately before the removal is not a licensee; or

(ii) The removal is at the refinery rack unless the removal is to a licensed exporter for direct delivery to a destination outside of the state, or the removal is to a special fuel distributor for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(d) Special fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the special fuel;

(e) Blended special fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended special fuel subject to tax is the difference between the total number of gallons of blended special fuel removed or sold and the number of gallons of previously taxed special fuel used to produce the blended special fuel;

(f) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the special fuel tax;

(g) Dyed special fuel is held for sale, sold, used, or is intended to be used in violation of this chapter;

(h) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and

(i) Special fuel is sold by a licensed special fuel supplier to a special fuel distributor, special fuel importer, or special fuel blender and the special fuel is not removed from the bulk transfer- terminal system.

(((3))) (4) The tax imposed by this chapter, if required to be collected by the licensee, is held in trust by the licensee until paid to the department, and a licensee who appropriates or converts the tax collected to his or her own use or to any use other than the payment of the tax to the extent that the money required to be collected is not available for payment on the due date as prescribed in this chapter is guilty of a felony, or gross misdemeanor in accordance with the theft and anticipatory provisions of Title 9A RCW. A person, partnership, corporation, or corporate officer who fails to collect the tax imposed by this section, or who has collected the tax and fails to pay it to the department in the manner prescribed by this chapter, is personally liable to the state for the amount of the tax.

Sec. 403. RCW 46.68.090 and 1999 c 269 s 2 and 1999 c 94 s 6 are each reenacted and amended to read as follows:

(1) All moneys that have accrued or may accrue to the motor vehicle fund from the motor vehicle fuel tax and special fuel tax shall be first expended for purposes enumerated in (a) and (b) of this subsection. The remaining net tax amount shall be distributed monthly by the state treasurer in ((the proportions set forth in (c) through (l))) accordance with subsections (2), (3), and (4) of this ((subsection)) section.

(a) For payment of refunds of motor vehicle fuel tax and special fuel tax that has been paid and is refundable as provided by law;

(b) For payment of amounts to be expended pursuant to appropriations for the administrative expenses of the offices of state treasurer, state auditor, and the department of licensing of the state of Washington in the administration of the motor vehicle fuel tax and the special fuel tax, which sums shall be distributed monthly((;)).

(((c))) (2) All of the remaining net tax amount collected under RCW 82.36.025(1) and 82.38.030(1) shall be distributed as set forth in (a) through (j) of this section.

(a) For distribution to the motor vehicle fund an amount equal to 44.387 percent to be expended for highway purposes of the state as defined in RCW 46.68.130;

(((d))) (b) For distribution to the special category C account, hereby created in the motor vehicle fund, an amount equal to 3.2609 percent to be expended for special category C projects. Special category C projects are category C projects that, due to high cost only, will require bond financing to complete construction.

The following criteria, listed in order of priority, shall be used in determining which special category C projects have the highest priority:

(iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

Moneys deposited in the special category C account in the motor vehicle fund may be used for payment of debt service on bonds the proceeds of which are used to finance special category C projects under this subsection (((1)(d))) (2)(b);

(((e))) (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;

(((f))) (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;

(((g))) (e) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;

(((h))) (f) For distribution to the transportation improvement account in the motor vehicle fund an amount equal to 5.6739 percent and expended in accordance with RCW 47.26.086;

(((i))) (g) For distribution to the cities and towns from the motor vehicle fund an amount equal to 10.6961 percent in accordance with RCW 46.68.110;

(((j))) (h) For distribution to the counties from the motor vehicle fund an amount equal to 19.2287 percent: (i) Out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725; and (ii) less any amounts appropriated to the county road administration board to implement the provisions of RCW 47.56.725(4), with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

(((k))) (i) For distribution to the county arterial preservation account, hereby created in the motor vehicle fund an amount equal to 1.9565 percent. These funds shall be distributed by the county road administration board to counties in proportions corresponding to the number of paved arterial lane miles in the unincorporated area of each county and shall be used for improvements to sustain the structural, safety, and operational integrity of county arterials. The county road administration board shall adopt reasonable rules and develop policies to implement this program and to assure that a pavement management system is used;

(((l))) (j) For distribution to the rural arterial trust account in the motor vehicle fund an amount equal to 2.5363 percent and expended in accordance with RCW 36.79.020.

(((2))) (3) One hundred percent of the net tax amount collected under RCW 82.36.025(2) and 82.38.030(2) shall be distributed to the motor vehicle account.

(4) Nothing in this section or in RCW 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor vehicle fuel and special fuels.

Sec. 404. RCW 46.68.110 and 1999 c 269 s 3 and 1999 c 94 s 9 are each reenacted and amended to read as follows:

Funds credited to the incorporated cities and towns of the state as set forth in RCW 46.68.090(((1)(i))) (2)(g) shall be subject to deduction and distribution as follows:

(1) One and one-half percent of such sums distributed under RCW 46.68.090(2)(g) shall be deducted monthly as such sums are credited and set aside for the use of the department of transportation for the supervision of work and expenditures of such incorporated cities and towns on the city and town streets thereof, including the supervision and administration of federal-aid programs for which the department of transportation has responsibility: PROVIDED, That any moneys so retained and not expended shall be credited in the succeeding biennium to the incorporated cities and towns in proportion to deductions herein made;

(2) Thirty-three one-hundredths of one percent of such funds distributed under RCW 46.68.090(2)(g) shall be deducted monthly, as such funds accrue, and set aside for the use of the department of transportation for the purpose of funding the cities' share of the costs of highway jurisdiction studies and other studies. Any funds so retained and not expended shall be credited in the succeeding biennium to the cities in proportion to the deductions made;

(3) One percent of such funds distributed under RCW 46.68.090(2)(g) shall be deducted monthly, as such funds accrue, to be deposited in the urban arterial trust account, to implement the city hardship assistance program, as provided in RCW 47.26.164. However, any moneys so retained and not required to carry out the program as of July 1st of each odd- numbered year thereafter, shall be provided within sixty days to the treasurer and distributed in the manner prescribed in subsection (5) of this section;

(4) After making the deductions under subsections (1) through (3) of this section and RCW 35.76.050, 31.86 percent of the fuel tax distributed to the cities and towns in RCW 46.68.090(((1)(i))) (2)(g) shall be allocated to the incorporated cities and towns in the manner set forth in subsection (5) of this section and subject to deductions in subsections (1), (2), and (3) of this section, subject to RCW 35.76.050, to be used exclusively for: The construction, improvement, chip sealing, seal-coating, and repair for arterial highways and city streets as those terms are defined in RCW 46.04.030 and 46.04.120; the maintenance of arterial highways and city streets for those cities with a population of less than fifteen thousand; or the payment of any municipal indebtedness which may be incurred in the construction, improvement, chip sealing, seal-coating, and repair of arterial highways and city streets; and

(5) The balance remaining to the credit of incorporated cities and towns after such deduction shall be apportioned monthly as such funds accrue among the several cities and towns within the state ratably on the basis of the population last determined by the office of financial management.

(1) A licensed supplier shall remit tax on special fuel to the department as provided in RCW 82.38.030(((2)(a))) (3)(a). On a two- party exchange, or buy-sell agreement between two licensed suppliers, the receiving exchange partner or buyer shall remit the tax.

(2) A refiner shall remit tax to the department on special fuel removed from a refinery as provided in RCW 82.38.030(((2)(b))) (3)(b).

(3) An importer shall remit tax to the department on special fuel imported into this state as provided in RCW 82.38.030(((2)(c))) (3)(c).

(4) A blender shall remit tax to the department on the removal or sale of blended special fuel as provided in RCW 82.38.030(((2)(e))) (3)(e).

(5) A dyed special fuel user shall remit tax to the department on the use of dyed special fuel as provided in RCW 82.38.030(((2)(f))) (3)(f).

Sec. 406. RCW 82.38.047 and 1998 c 176 s 55 are each amended to read as follows:

A terminal operator is jointly and severally liable for remitting the tax imposed under RCW 82.38.030(((1))) if, in connection with the removal of special fuel that is not dyed or marked in accordance with internal revenue service requirements, the terminal operator provides a person with a bill of lading, shipping paper, or similar document indicating that the special fuel is dyed or marked in accordance with internal revenue service requirements.

(1) From time to time, but at least once each year, the state treasurer shall refund from the motor vehicle fund one percent of the motor vehicle fuel tax revenues collected under chapter 82.36 RCW, based on the tax rate ((in effect January 1, 1990)) of twenty cents per gallon of motor vehicle fuel, less proper deductions for refunds and costs of collection as provided in RCW 46.68.090. The treasurer shall place these funds in the general fund as follows:

(a) Forty percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of natural resources solely for planning, maintenance, and management of ORV recreation facilities, nonhighway roads, and nonhighway road recreation facilities. The funds under this subsection shall be expended in accordance with the following limitations:

(i) Not more than five percent may be expended for information programs under this chapter;

(ii) Not less than ten percent and not more than fifty percent may be expended for ORV recreation facilities;

(iii) Not more than twenty-five percent may be expended for maintenance of nonhighway roads;

(iv) Not more than fifty percent may be expended for nonhighway road recreation facilities;

(v) Ten percent shall be transferred to the interagency committee for outdoor recreation for grants to law enforcement agencies in those counties where the department of natural resources maintains ORV facilities. This amount is in addition to those distributions made by the interagency committee for outdoor recreation under (d)(i) of this subsection;

(b) Three and one-half percent shall be credited to the ORV and nonhighway vehicle account and administered by the department of fish and wildlife solely for the acquisition, planning, development, maintenance, and management of nonhighway roads and recreation facilities;

(c) Two percent shall be credited to the ORV and nonhighway vehicle account and administered by the parks and recreation commission solely for the maintenance and management of ORV use areas and facilities; and

(d) Fifty-four and one-half percent, together with the funds received by the interagency committee for outdoor recreation under RCW 46.09.110, shall be credited to the nonhighway and off-road vehicle activities program account to be administered by the committee for planning, acquisition, development, maintenance, and management of ORV recreation facilities and nonhighway road recreation facilities; ORV user education and information; and ORV law enforcement programs. The funds under this subsection shall be expended in accordance with the following limitations:

(i) Not more than twenty percent may be expended for ORV education, information, and law enforcement programs under this chapter;

(ii) Not less than an amount equal to the funds received by the interagency committee for outdoor recreation under RCW 46.09.110 and not more than sixty percent may be expended for ORV recreation facilities;

(iii) Not more than twenty percent may be expended for nonhighway road recreation facilities.

(2) On a yearly basis an agency may not, except as provided in RCW 46.09.110, expend more than ten percent of the funds it receives under this chapter for general administration expenses incurred in carrying out this chapter.

From time to time, but at least once each four years, the department shall determine the amount of moneys paid to it as motor vehicle fuel tax that is tax on snowmobile fuel. Such determination shall use one hundred thirty-five gallons as the average yearly fuel usage per snowmobile, the number of registered snowmobiles during the calendar year under determination, and the fuel tax rate ((in effect January 1, 1990)) of twenty cents per gallon of motor vehicle fuel.

Sec. 409. RCW 79A.25.070 and 2000 c 11 s 73 are each amended to read as follows:

Upon expiration of the time limited by RCW 82.36.330 for claiming of refunds of tax on marine fuel, the state of Washington shall succeed to the right to such refunds. The director of licensing, after taking into account past and anticipated claims for refunds from and deposits to the marine fuel tax refund account and the costs of carrying out the provisions of RCW 79A.25.030, shall request the state treasurer to transfer monthly from the marine fuel tax refund account an amount equal to the proportion of the moneys in the account representing the motor vehicle fuel tax rate ((under RCW 82.36.025 in effect on January 1, 1990)) of twenty cents per gallon of motor vehicle fuel, to the recreation resource account and the remainder to the motor vehicle fund.

NEW SECTION. Sec. 501. A new section is added to chapter 70.94 RCW to read as follows:

In addition to other fees and taxes required under this chapter, registered owners of motor vehicles as defined in RCW 46.04.320 shall annually, upon renewal, pay a clean air fee of two dollars. The proceeds of this clean air fee must be deposited in a segregated subaccount of the air pollution control account created in RCW 70.94.015.

NEW SECTION. Sec. 502. A new section is added to chapter 70.94 RCW to read as follows:

(1) Money from the clean air fee under section 501 of this act may be used for any purpose under this chapter, including but not limited to the following:

(a) Retrofitting motor vehicles, including school buses and transit fleets, with exhaust emission control devices;

(d) Providing funding for the differential costs of cleaner and alternative fuels and vehicles that reduce air emissions and allow advanced exhaust emission control devices to be used, including ultralow sulfur diesel fuel, biodiesel, and natural gas;

(e) Providing funding for infrastructure necessary to allow fleets to use alternative, cleaner fuels; and

(f) Administrative and operating costs of air pollution control authorities and, where there is no air pollution control agency, the department, to develop and oversee the air pollution cleanup programs identified in this section.

(2) Money from the clean air fee under section 501 of this act is subject to distribution as follows:

(a) Eighty percent of the money must be distributed to the air pollution control authorities created under this chapter. The money must be distributed in direct proportion with the amount of fees imposed under section 501 of this act that are collected within the boundaries of each authority. However, an amount in direct proportion with those fees collected in counties for which no air pollution control authority exists must be distributed to the department.

(b) Twenty percent of the money from the fee under section 501 of this act must be distributed to the department and used by the department for the following purposes:

(i) Retrofitting motor vehicles, including school buses and transit fleets, with exhaust emission control devices;

(iv) Providing funding for the differential costs of cleaner and alternative fuels and vehicles that reduce air emissions and allow advanced exhaust emission control devices to be used, including ultralow sulfur diesel fuel, biodiesel, and natural gas;

(v) Providing funding for infrastructure necessary to allow fleets to use alternative, cleaner fuels; and

(vi) Administrative and operating costs of air pollution control authorities and, where there is no air pollution control agency, the department, to develop and oversee the air pollution cleanup programs identified in this section.

(3) Money in the air pollution control account may be spent by the department only after appropriation.

(1) Except for those license plates issued under RCW 46.16.305(1) before January 1, 1987, under RCW 46.16.305(3), and to commercial vehicles with a gross weight in excess of twenty-six thousand pounds, effective with vehicle registrations due or to become due on January 1, 2001, the appearance of the background of all vehicle license plates may vary in color and design, but must be ((issued on a standard background)) legible and clearly identifiable as a Washington state license plate, as designated by the department.

(2) Additionally, to ensure maximum legibility and reflectivity, the department shall periodically provide for the replacement of license plates, except for commercial vehicles with a gross weight in excess of twenty-six thousand pounds. Frequency of replacement shall be established in accordance with empirical studies documenting the longevity of the reflective materials used to make license plates.

(3) In providing for the periodic replacement of license plates, the department shall offer the vehicle's owner the option of retaining the current license plate number. The department shall charge a retention fee of twenty dollars if this option is exercised. Revenue generated from the retention fee must be deposited into the multimodal transportation account.

(1) The county auditor, if appointed by the director of licensing shall carry out the provisions of this title relating to the licensing of vehicles and the issuance of vehicle license number plates under the direction and supervision of the director and may with the approval of the director appoint assistants as special deputies and recommend subagents to accept applications and collect fees for vehicle licenses and transfers and to deliver vehicle license number plates.

(2) A county auditor appointed by the director may request that the director appoint subagencies within the county.

(a) Upon authorization of the director, the auditor shall use an open competitive process including, but not limited to, a written business proposal and oral interview to determine the qualifications of all interested applicants.

(b) A subagent may recommend a successor who is either the subagent's sibling, spouse, or child, or a subagency employee, as long as the recommended successor participates in the open, competitive process used to select an applicant. In making successor recommendation and appointment determinations, the following provisions apply:

(i) If a subagency is held by a partnership or corporate entity, the nomination must be submitted on behalf of, and agreed to by, all partners or corporate officers.

(ii) No subagent may receive any direct or indirect compensation or remuneration from any party or entity in recognition of a successor nomination. A subagent may not receive any financial benefit from the transfer or termination of an appointment.

(iii) (a) and (b) of this subsection are intended to assist in the efficient transfer of appointments in order to minimize public inconvenience. They do not create a proprietary or property interest in the appointment.

(c) The auditor shall submit all proposals to the director, and shall recommend the appointment of one or more subagents who have applied through the open competitive process. The auditor shall include in his or her recommendation to the director, not only the name of the successor who is a relative or employee, if applicable and if otherwise qualified, but also the name of one other applicant who is qualified and was chosen through the open competitive process. The director has final appointment authority.

(3)(a) A county auditor who is appointed as an agent by the department shall enter into a standard contract provided by the director, developed with the advice of the title and registration advisory committee.

(b) A subagent appointed under subsection (2) of this section shall enter into a standard contract with the county auditor, developed with the advice of the title and registration advisory committee. The director shall provide the standard contract to county auditors.

(i) Describe the responsibilities, and where applicable, the liability, of each party relating to the service expectations and levels, equipment to be supplied by the department, and equipment maintenance;

(ii) Require the specific type of insurance or bonds so that the state is protected against any loss of collected motor vehicle tax revenues or loss of equipment;

(iii) Specify the amount of training that will be provided by the state, the county auditor, or subagents;

(iv) Describe allowable costs that may be charged to vehicle licensing activities as provided for in (d) of this subsection;

(v) Describe the causes and procedures for termination of the contract, which may include mediation and binding arbitration.

(d) The department shall develop procedures that will standardize and prescribe allowable costs that may be assigned to vehicle licensing and vessel registration and title activities performed by county auditors.

(e) The contracts may include any provision that the director deems necessary to ensure acceptable service and the full collection of vehicle and vessel tax revenues.

(f) The director may waive any provisions of the contract deemed necessary in order to ensure that readily accessible service is provided to the citizens of the state.

(4)(a) At any time any application is made to the director, the county auditor, or other agent pursuant to any law dealing with licenses, registration, or the right to operate any vehicle or vessel upon the public highways or waters of this state, excluding applicants already paying such fee under RCW 46.16.070 or 46.16.085, the applicant shall pay to the director, county auditor, or other agent a fee of three dollars for each application in addition to any other fees required by law.

(b) Counties that do not cover the expenses of vehicle licensing and vessel registration and title activities may submit to the department a request for cost-coverage moneys. The request must be submitted on a form developed by the department. The department shall develop procedures to verify whether a request is reasonable. Payment shall be made on requests found to be allowable from the licensing services account.

(c) Applicants for certificates of ownership, including applicants paying fees under RCW 46.16.070 or 46.16.085, shall pay to the director, county auditor, or other agent a fee of four dollars in addition to any other fees required by law.

(d) The fees under (a) and (c) of this subsection, if paid to the county auditor as agent of the director, or if paid to a subagent of the county auditor, shall be paid to the county treasurer in the same manner as other fees collected by the county auditor and credited to the county current expense fund. If the fee is paid to another agent of the director, the fee shall be used by the agent to defray his or her expenses in handling the application.

(e) Applicants required to pay the three-dollar fee established under (a) of this subsection, must pay an additional ((fifty)) seventy- five cents on registrations that are due or are to become due November 1, 2003, which must be collected and remitted to the state treasurer ((for deposit)) and distributed as follows:

(i) Fifty cents must be deposited into the department of licensing services account of the motor vehicle fund((. Revenue deposited into this account)) and must be used for agent and subagent support, which is to include but not be limited to the replacement of department-owned equipment in the possession of agents and subagents.

(ii) Twenty-five cents must be deposited into the license plate technology account created under section 603 of this act.

(5) A subagent shall collect a service fee of (a) eight dollars and fifty cents for changes in a certificate of ownership, with or without registration renewal, or verification of record and preparation of an affidavit of lost title other than at the time of the title application or transfer and (b) three dollars and fifty cents for registration renewal only, issuing a transit permit, or any other service under this section.

(6) If the fee is collected by the state patrol as agent for the director, the fee so collected shall be certified to the state treasurer and deposited to the credit of the state patrol highway account. If the fee is collected by the department of transportation as agent for the director, the fee shall be certified to the state treasurer and deposited to the credit of the motor vehicle fund. All such fees collected by the director or branches of his office shall be certified to the state treasurer and deposited to the credit of the highway safety fund.

(7) Any county revenues that exceed the cost of providing vehicle licensing and vessel registration and title activities in a county, calculated in accordance with the procedures in subsection (3)(d) of this section, shall be expended as determined by the county legislative authority during the process established by law for adoption of county budgets.

NEW SECTION. Sec. 603. A new section is added to chapter 46.16 RCW to read as follows:

The license plate technology account is created in the state treasury. All receipts collected under RCW 46.01.140(4)(e)(ii) must be deposited into this account. Expenditures from this account must support current and future license plate technology and systems integration upgrades. Money in the account may be spent only after appropriation.

NEW SECTION. Sec. 604. A new section is added to chapter 46.16 RCW to read as follows:

The department shall offer license plate design services to organizations that are sponsoring a new special license plate series or are seeking to redesign the appearance of an existing special license plate series that they sponsored. In providing this service, the department must work with the requesting organization in determining the specific qualities of the new plate design and must provide full design services to the organization. The department shall collect from the requesting organization a fee of one thousand five hundred dollars for providing license plate design services. This fee includes one original license plate design and up to five additional renditions of the original design. If the organization requests the department to provide further renditions in addition to the five renditions provided under the original fee, the department shall collect an additional fee of five hundred dollars per rendition. All revenue collected under this section must be deposited into the multimodal transportation account.

NEW SECTION. Sec. 701. Part headings used in this act are not any part of the law.

NEW SECTION. Sec. 703. (1) Except for sections 601 through 604 of this act, 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 July 1, 2003.

On page 1, line 1 of the title, after "financing;" strike the remainder of the title and insert "amending RCW 46.16.070, 46.68.035, 82.38.030, 82.38.035, 82.38.047, 46.09.170, 46.10.170, 79A.25.070, 46.16.233, and 46.01.140; reenacting and amending RCW 82.36.025, 46.68.090, and 46.68.110; adding a new section to chapter 82.44 RCW; adding new sections to chapter 70.94 RCW; adding new sections to chapter 46.16 RCW; creating new sections; providing effective dates; providing expiration dates; and declaring an emergency."

Beginning on page 1, line 17 of the amendment, after "services." strike all material through page 5, line 31 of the amendment

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

Representatives Mielke, Orcutt, Schoesler, Cox and Boldt spoke in favor of the adoption of the amendment to the amendment.

Representatives Murray and Hudgins spoke against the adoption of the amendment to the amendment.

The Speaker stated the question before the House to be adoption of amendment (353) to amendment (343) to Substitute House Bill No. 2231.

The Clerk called the roll on the adoption of amendment (353) to amendment (343) to Substitute House Bill No. 2231, and the amendment was not adopted by the following vote: Yeas - 39, Nays - 58, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott and Woods - 39.

Voting nay: Representatives Anderson, Berkey, Blake, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Pflug, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 58.

Representative Ericksen moved the adoption of amendment (356) to amendment (343):

Beginning on page 1, line 19 of the amendment, strike all of section 201 and insert the following:

"Sec. 201. RCW 46.16.070 and 1994 c 262 s 8 are each amended to read as follows:

declared gross weight			schedule a	schedule b
12,000 lbs.	. . . . . . . .	$	79.00	. . . .	$	79.00
14,000 lbs.	. . . . . . . .	$	90.00	. . . .	$	90.00
16,000 lbs.	. . . . . . . .	$	102.00	. . . .	$	102.00
18,000 lbs.	. . . . . . . .	$	154.00	. . . .	$	154.00
20,000 lbs.	. . . . . . . .	$	171.00	. . . .	$	171.00
22,000 lbs.	. . . . . . . .	$	185.00	. . . .	$	185.00
24,000 lbs.	. . . . . . . .	$	200.00	. . . .	$	200.00
26,000 lbs.	. . . . . . . .	$	211.00	. . . .	$	211.00
28,000 lbs.	. . . . . . . .	$	249.00	. . . .	$	249.00
30,000 lbs.	. . . . . . . .	$	287.00	. . . .	$	287.00
32,000 lbs.	. . . . . . . .	$	346.00	. . . .	$	346.00
34,000 lbs.	. . . . . . . .	$	368.00	. . . .	$	368.00
36,000 lbs.	. . . . . . . .	$	399.00	. . . .	$	399.00
38,000 lbs.	. . . . . . . .	$	438.00	. . . .	$	438.00
40,000 lbs.	. . . . . . . .	$	501.00	. . . .	$	501.00
42,000 lbs.	. . . . . . . .	$	521.00	. . . .	$	611.00
44,000 lbs.	. . . . . . . .	$	532.00	. . . .	$	622.00
46,000 lbs.	. . . . . . . .	$	572.00	. . . .	$	662.00
48,000 lbs.	. . . . . . . .	$	596.00	. . . .	$	686.00
50,000 lbs.	. . . . . . . .	$	647.00	. . . .	$	737.00
52,000 lbs.	. . . . . . . .	$	680.00	. . . .	$	770.00
54,000 lbs.	. . . . . . . .	$	734.00	. . . .	$	824.00
56,000 lbs.	. . . . . . . .	$	775.00	. . . .	$	865.00
58,000 lbs.	. . . . . . . .	$	806.00	. . . .	$	896.00
60,000 lbs.	. . . . . . . .	$	859.00	. . . .	$	949.00
62,000 lbs.	. . . . . . . .	$	921.00	. . . .	$	1,011.00
64,000 lbs.	. . . . . . . .	$	941.00	. . . .	$	1,031.00
66,000 lbs.	. . . . . . . .	$	1,048.00	. . . .	$	1,138.00
68,000 lbs.	. . . . . . . .	$	1,093.00	. . . .	$	1,183.00
70,000 lbs.	. . . . . . . .	$	1,177.00	. . . .	$	1,267.00
72,000 lbs.	. . . . . . . .	$	1,259.00	. . . .	$	1,349.00
74,000 lbs.	. . . . . . . .	$	1, 368.00	. . . .	$	1,458.00
76,000 lbs.	. . . . . . . .	$	1,478.00	. . . .	$	1,568.00
78,000 lbs.	. . . . . . . .	$	1,614.00	. . . .	$	1,704.00
80,000 lbs.	. . . . . . . .	$	1,742.00	. . . .	$	1,832.00
82,000 lbs.	. . . . . . . .	$	1,863.00	. . . .	$	1,953.00
84,000 lbs.	. . . . . . . .	$	1,983.00	. . . .	$	2,073.00
86,000 lbs.	. . . . . . . .	$	2,104.00	. . . .	$	2,194.00
88,000 lbs.	. . . . . . . .	$	2,225.00	. . . .	$	2,315.00
90,000 lbs.	. . . . . . . .	$	2,346.00	. . . .	$	2,436.00
92,000 lbs.	. . . . . . . .	$	2,466.00	. . . .	$	2,556.00
94,000 lbs.	. . . . . . . .	$	2,587.00	. . . .	$	2,677.00
96,000 lbs.	. . . . . . . .	$	2,708.00	. . . .	$	2,798.00
98,000 lbs.	. . . . . . . .	$	2,829.00	. . . .	$	2,919.00
100,000 lbs.	. . . . . . . .	$	2,949.00	. . . .	$	3,039.00
102,000 lbs.	. . . . . . . .	$	3,070.00	. . . .	$	3,160.00
104,000 lbs.	. . . . . . . .	$	3,191.00	. . . .	$	3,281.00
105,500 lbs.	. . . . . . . .	$	3,312.00	. . . .	$	3,402.00

declared gross weight			schedule c	schedule d
4,000 lbs.	. . . . . . . . .	$	37.00	. . . . . . .	$	37.00
6,000 lbs.	. . . . . . . . .	$	44.00	. . . . . . .	$	44.00
8,000 lbs.	. . . . . . . . .	$	55.00	. . . . . . .	$	55.00
10,000 lbs.	. . . . . . . . .	$	62.00	. . . . . . .	$	62.00
12,000 lbs.	. . . . . . . . .	$	72.00	. . . . . . .	$	72.00
14,000 lbs.	. . . . . . . . .	$	82.00	. . . . . . .	$	82.00
16,000 lbs.	. . . . . . . . .	$	92.00	. . . . . . .	$	92.00
18,000 lbs.	. . . . . . . . .	$	137.00	. . . . . . .	$	137.00
20,000 lbs.	. . . . . . . . .	$	152.00	. . . . . . .	$	152.00
22,000 lbs.	. . . . . . . . .	$	164.00	. . . . . . .	$	164.00
24,000 lbs.	. . . . . . . . .	$	177.00	. . . . . . .	$	177.00
26,000 lbs.	. . . . . . . . .	$	187.00	. . . . . . .	$	187.00
28,000 lbs.	. . . . . . . . .	$	220.00	. . . . . . .	$	220.00
30,000 lbs.	. . . . . . . . .	$	253.00	. . . . . . .	$	253.00
32,000 lbs.	. . . . . . . . .	$	304.00	. . . . . . .	$	304.00
34,000 lbs.	. . . . . . . . .	$	323.00	. . . . . . .	$	323.00
36,000 lbs.	. . . . . . . . .	$	350.00	. . . . . . .	$	350.00
38,000 lbs.	. . . . . . . . .	$	384.00	. . . . . . .	$	384.00
40,000 lbs.	. . . . . . . . .	$	439.00	. . . . . . .	$	439.00
42,000 lbs.	. . . . . . . . .	$	456.00	. . . . . . .	$	546.00
44,000 lbs.	. . . . . . . . .	$	466.00	. . . . . . .	$	556.00
46,000 lbs.	. . . . . . . . .	$	501.00	. . . . . . .	$	591.00
48,000 lbs.	. . . . . . . . .	$	522.00	. . . . . . .	$	612.00
50,000 lbs.	. . . . . . . . .	$	566.00	. . . . . . .	$	656.00
52,000 lbs.	. . . . . . . . .	$	595.00	. . . . . . .	$	685.00
54,000 lbs.	. . . . . . . . .	$	642.00	. . . . . . .	$	732.00
56,000 lbs.	. . . . . . . . .	$	677.00	. . . . . . .	$	767.00
58,000 lbs.	. . . . . . . . .	$	704.00	. . . . . . .	$	794.00
60,000 lbs.	. . . . . . . . .	$	750.00	. . . . . . .	$	840.00
62,000 lbs.	. . . . . . . . .	$	804.00	. . . . . . .	$	894.00
64,000 lbs.	. . . . . . . . .	$	822.00	. . . . . . .	$	912.00
66,000 lbs.	. . . . . . . . .	$	915.00	. . . . . . .	$	1,005.00
68,000 lbs.	. . . . . . . . .	$	954.00	. . . . . . .	$	1,044.00
70,000 lbs.	. . . . . . . . .	$	1,027.00	. . . . . . .	$	1,117.00
72,000 lbs.	. . . . . . . . .	$	1,098.00	. . . . . . .	$	1,188.00
74,000 lbs.	. . . . . . . . .	$	1,193.00	. . . . . . .	$	1,283.00
76,000 lbs.	. . . . . . . . .	$	1,289.00	. . . . . . .	$	1,379.00
78,000 lbs.	. . . . . . . . .	$	1,407.00	. . . . . . .	$	1,497.00
80,000 lbs.	. . . . . . . . .	$	1,518.00	. . . . . . .	$	1,608.00
82,000 lbs.	. . . . . . . . .	$	1,623.00	. . . . . . .	$	1,713.00
84,000 lbs.	. . . . . . . . .	$	1,728.00	. . . . . . .	$	1,818.00
86,000 lbs.	. . . . . . . . .	$	1,833.00	. . . . . . .	$	1,923.00
88,000 lbs.	. . . . . . . . .	$	1,938.00	. . . . . . .	$	2,028.00
90,000 lbs.	. . . . . . . . .	$	2,043.00	. . . . . . .	$	2,133.00
92,000 lbs.	. . . . . . . . .	$	2,148.00	. . . . . . .	$	2,238.00
94,000 lbs.	. . . . . . . . .	$	2,253.00	. . . . . . .	$	2,343.00
96,000 lbs.	. . . . . . . . .	$	2,358.00	. . . . . . .	$	2,448.00
98,000 lbs.	. . . . . . . . .	$	2,463.00	. . . . . . .	$	2,553.00
100,000 lbs.	. . . . . . . . .	$	2,568.00	. . . . . . .	$	2,658.00
102,000 lbs.	. . . . . . . . .	$	2,673.00	. . . . . . .	$	2,763.00
104,000 lbs.	. . . . . . . . .	$	2,778.00	. . . . . . .	$	2,868.00
105,500 lbs.	. . . . . . . . .	$	2,883.00	. . . . . . .	$	2,973.00

(a) Except as provided in (b) of this subsection, schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Except as provided in (b) of this subsection, schedule B applies to vehicles that tow trailers and are not covered under Schedule A.

(b) Schedule C applies to vehicles that do not tow trailers and haul agricultural products. Schedule D applies to vehicles that tow trailers and haul agricultural products.

(2) Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.

(3) The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:

(((2))) (4) The proceeds from the fees collected under subsection (1) of this section shall be distributed in accordance with RCW 46.68.035."

Representative Ericksen spoke in favor of the adoption of the amendment to the amendment.

Representative Linville spoke against the adoption of the amendment to the amendment.

Beginning on page 5, line 32 of the amendment, strike all material through page 7, line 4 of the amendment

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

Representatives Mielke and Ericksen spoke in favor of the adoption of the amendment to the amendment.

Representatives Murray and Romero spoke against the adoption of the amendment to the amendment.

The Speaker stated the question before the House to be adoption of amendment (354) to amendment (343) to Substitute House Bill No. 2231.

The Clerk called the roll on the adoption of amendment (354) to amendment (343) to Substitute House Bill No. 2231, and the amendment was not adopted by the following vote: Yeas - 44, Nays - 53, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Haigh, Hinkle, Holmquist, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Morrell, Newhouse, Nixon, Orcutt, Pearson, Pflug, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott and Woods - 44.

Voting nay: Representatives Berkey, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morris, Murray, O'Brien, Pettigrew, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 53.

"(e) The taxes imposed in this subsection (2) do not apply to biodiesel and other similar alternative fuels."

Representative Nixon spoke in favor of the adoption of the amendment to the amendment.

Representative Morris spoke against the adoption of the amendment to the amendment.

Beginning on page 16, line 18 of the amendment, strike all material through page 18, line 6 of the amendment

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

Representatives Mielke, Shabro, Ericksen and Mielke (again) spoke in favor of the adoption of the amendment to the amendment.

Representatives Clibborn, Schual-Berke, Sullivan and Murray spoke against the adoption of the amendment to the amendment.

The Speaker stated the question before the House to be adoption of amendment (355) to (343) to Substitute House Bill No. 2231.

The Clerk called the roll on the adoption of amendment (355) to amendment (343) to Substitute House Bill No. 2231, and the amendment was not adopted by the following vote: Yeas - 43, Nays - 54, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Morrell, Newhouse, Nixon, Orcutt, Pearson, Pflug, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott and Woods - 43.

Voting nay: Representatives Berkey, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morris, Murray, O'Brien, Pettigrew, Priest, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 54.

Representative Hankins moved the adoption of amendment (349) to amendment (343):

Sec. 701. RCW 70.95.510 and 1989 c 431 s 92 are each amended to read as follows:

(1) There is levied a ((one dollar)) seventy-five cents per tire fee on the retail sale of new replacement vehicle tires for a period of five years, beginning ((October 1, 1989)) on the effective date of this act. The fee imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the fee. The fee collected from the buyer by the seller, less the ten percent amount retained by the seller as provided in ((RCW 70.95.535)) subsection (4) of this section, shall be paid to the department of revenue in accordance with RCW 82.32.045, and the proceeds remaining after the deposit required by subsection (3) of this section, must be deposited into the vehicle tire recycling account created under section 702 of this act. All other applicable provisions of chapter 82.32 RCW have full force and application with respect to the fee imposed under this section. The department of revenue shall administer this section.

(2) For the purposes of this section, "new replacement vehicle tires" means tires that are newly manufactured for vehicle purposes and used tires available for resale, but does not include retreaded vehicle tires.

(3) Of the seventy-five cent fee imposed in subsection (1) of this section, twenty-five cents must be deposited into the motor vehicle account and must be used by the department of transportation for road maintenance, which may incorporate the use of material derived from scrap tires.

(4) Every person engaged in making retail sales of new replacement vehicle tires in this state shall retain ten percent of the collected seventy-five cent fee imposed in subsection (1) of this section. The moneys retained may be used for costs associated with the proper management of the waste vehicle tires by the retailer.

NEW SECTION. Sec. 702. A new section is added to chapter 70.95 RCW to read as follows:

(1) The vehicle tire recycling account is created within the state treasury. After the deposit of funds into the motor vehicle account as provided for in RCW 70.95.510(3), the remaining funds received under RCW 70.95.510(1) must be deposited in the vehicle tire recycling account and used by the department for purposes including but not limited to those specified in RCW 70.95.535. Expenditures from the account may occur only after appropriation by the legislature. The department of revenue shall deduct two percent from the funds collected under RCW 70.95.510 for the purpose of administering and collecting the fee from new replacement tire retailers.

(2) Moneys in the vehicle tire recycling account may be appropriated to the department for the purposes identified in RCW 70.95.535.

(3) To provide increased accountability, by January 1st of each year, the department shall submit a report to the legislature outlining how the revenues deposited into the vehicle tire recycling account were used over the previous twelve-month period. The report must include, but is not limited to, identifying the local jurisdictions that received grant funding, the location and description of any illegal tire piles cleaned up, a description of any scrap tire demonstration projects funded, and the status of the statewide tire carrier tracking system.

Sec. 703. RCW 70.95.535 and 1989 c 431 s 93 are each amended to read as follows:

(1) ((Every person engaged in making retail sales of new replacement vehicle tires in this state shall retain ten percent of the collected one dollar fee. The moneys retained may be used for costs associated with the proper management of the waste vehicle tires by the retailer.

(2))) The department of ecology ((will)) may administer the funds contained in the vehicle tire recycling account for ((the)) purposes ((specified in RCW 70.95.020(5))) including, but not limited to:

(a) ((Making grants to local governments for pilot demonstration projects for on-site shredding and recycling of tires from unauthorized dump sites;

(((c))) (b) Implementation of a public information and education program to include posters, signs, and informational materials to be distributed to retail tire sales and tire service outlets;

(((d))) (c) Product marketing studies for recycled tires and alternatives to land disposal;

(d) Scrap tire demonstration projects including those implemented by state agencies;

(e) Except as provided in subsection (2) of this section, statewide unlawful tire pile cleanups and local citizen scrap tire amnesty events;

(f) Statewide tire carrier tracking, reporting, and enforcement of the movement of tires within this state;

(g) Except as provided in subsection (2) of this section, to provide for funding to state and local governments for the removal of discarded vehicle tires from unauthorized tire dump sites;

(2) Prior to spending funds from the vehicle tire recycling account for the removal or cleanup of unlawfully disposed tires, the department must ensure that all legal remedies and cost recovery efforts available against the owner of the unlawfully disposed tires, or the property on which the unlawful tire piles are located, have been exhausted. The department should assist local jurisdictions, where appropriate, with enforcement actions against individuals unlawfully disposing of tires.

(3)(a) Local governments that are recipients of grant funding for enforcement programs must submit an annual report to the department for each year the grant funding is expended, detailing the uses of the funds and including information on what enforcement activities were supported with the grant funds.

(b) Local governments that are recipients of grant funding for illegal tire pile cleanups shall submit an annual report to the department for each year the grant funding is expended. The report must, at a minimum, identify the owners of the tire piles, the locations of the tire piles cleaned up, how many tires were removed, where and how the tires were disposed, and why cost recovery could not be obtained from the owners of the tire piles. The department shall forward this information to the legislature on an annual basis.

(4) In spending funds in the account under this section, the department shall identify communities with the most severe problems with waste tires and provide funds first to those communities to remove accumulations of waste tires.

(5) It is the intent of the legislature that in spending funds from the vehicle tire recycling account, the department will not implement a program or otherwise spend funds that competes with private businesses that engage in tire recycling.

NEW SECTION. Sec. 704. (1) The department of ecology shall implement an educational campaign for a period of one year, beginning no later than twelve months following the effective date of this act, to inform and educate local jurisdictions and the various vehicle tire industries who sell, dispose of, and recycle vehicle tires, on the current laws related to vehicle tire disposal and recycling, and the current vehicle tire recycling program administered by the department.

(2) By September 1, 2003, the department shall submit a report to the legislature on illegal tire piles located in the state. At a minimum, the report must include information identifying every known illegal tire pile in the state, the city and county where each illegal tire pile is located, the estimated number of tires in each illegal tire pile, and the expected cost associated with cleaning up each illegal tire pile.

(3) Moneys from the vehicle tire recycling account may be used to fund this section.

NEW SECTION. Sec. 705. RCW 70.95.530 (Vehicle tire recycling account--Use) and 1988 c 250 s 1 & 1985 c 345 s 7 are each repealed."

Renumber the part and sections following consecutively and correct the title amendment.

Representatives Hankins, Simpson and Haigh spoke in favor of the adoption of the amendment to the amendment.

Representatives Carrell and Mielke spoke against the adoption of the amendment to the amendment.

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

Representatives Murray, Romero, Cooper, Clibborn, Rockefeller, Flannigan and Morris spoke in favor of passage of the bill.

Representatives Ericksen, Clements, Holmquist, Woods, Benson, Armstrong and Schindler spoke against the passage of the bill.

The Speaker stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 2231.

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2231 and the bill passed the House by the following vote: Yeas - 51, Nays - 46, Absent - 0, Excused - 1.

Voting yea: Representatives Berkey, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McIntire, Moeller, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 51.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Ericksen, Hinkle, Holmquist, Jarrett, Kristiansen, McDonald, McMahan, McMorris, Mielke, Miloscia, Morrell, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Sehlin, Shabro, Skinner, Sump, Talcott, Tom and Woods - 46.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2231, having received the necessary constitutional majority, was declared passed.

Representative Murray requested Transportation Committee staff be admitted to the floor and thanked them for their hard work in preparing the transportation budget and revenue bills. He requested that the Chamber acknowledge the staff's dedication.

There being no objection, the House adjourned until 10:00 a.m., April 9, 2003, the 87^th Day of the Regular Session.

	Agency	Project Title
	Cheney	School Crosswalk Improvement Project
	Skokomish Indian Tribe	Skokomish School Safety Sidewalk Program
	Brier	37th Pl SW & 233rd Pl SW Sidewalk
	Sunnyside	Lincoln Ave Sidewalks
	Lynnwood	Olympic View Dr - 76th Ave SW to 169th St SW
	Steilacoom	Cherrydale Elementary School Safety Enhancement
	Yakima	W Valley School Zone Flashers
	Camas SD	SR 500 at 15th St Interchange
	Seattle	Meadowbrook Playfield - NE 105th St
	Vancouver	Franklin ES Sidewalk Improvements

	Agency	Project Title
	Davenport	Davenport Sixth St School Sidewalk
	Edmonds	96th Ave W Pedestrian Improvements
	Mountlake Terrace	223rd St SW - 44th Ave W to Cedar Way Elementary
	Yakima	Englewood/Powerhouse Intersection Safety Project