WHEREAS, The Cowlitz Tribe have called the lands of Southwest Washington home since time immemorial; and

      WHEREAS, The Cowlitz have been referred to as the "blue bloods of Southwest Washington"; and

      WHEREAS, In 1855 when war erupted, Chief Atwin Stockam entered into an agreement that the Cowlitz would remain peaceful if a reservation would be established; and

      WHEREAS, Although the Cowlitz were not involved in any battles, they were not granted their rightful land; and

      WHEREAS, The Cowlitz never entered into a treaty, were never subdued, and never lost the rights to their land; and

      WHEREAS, The Cowlitz have worked diligently throughout the twentieth century for the United States to acknowledge and recognize their rights and historical importance; and

      WHEREAS, On April 12, 1973, the Indian Claims Commission determined the Cowlitz Tribe had been deprived of their original Indian title as of March 20, 1863, without compensation; and

      WHEREAS, The commission only recognized the Cowlitz territory as encompassing 1.66 million acres, only two-thirds of the actual aboriginal territory of 2.4 million acres; and

      WHEREAS, The Cowlitz have been patient and determined in the face of adversity, including adaptation to governmental policy change, encroachment on rights to fish, hunt, and live on their land, and broken promises; and

      WHEREAS, The Cowlitz secured formal acknowledgment as a federally recognized tribe on February 14, 2000;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize and honor the persistent efforts and contributions of the Cowlitz Indian Tribe to their community and state and congratulate their developments of the past, present, and future and encourage such actions by the Federal Government as necessary to expeditiously restore lands and opportunities to the Cowlitz People to maximize their economic and cultural development and well-being.

      Senators Prentice, Esser and Doumit spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8682.

      The motion by Senator Prentice carried and the resolution was adopted by voice vote.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Mr. John Barnett, Chairman of the Cowlitz Indian Tribe, who was seated at the rostrum.

PERSONAL PRIVILEGE

Senator Honeyford: “Just a reminder of those that were involved in today’s observation of cowboy hat day that there’ll be a picture taken immediately when we adjourn for lunch.”

MOTION

At 12:04 p.m., on motion of Senator Eide, the Senate was declared to be at ease subject to the call of the President.

AFTERNOON SESSION

The Senate was called to order at 1:44 p.m. by President Owen.

MOTION

      On motion of Senator Eide, the Senate reverted to the third order of business.

PERSONAL PRIVILEGE

Senator Johnson: “It’s my privilege to introduce a distinguished former member of the Washington State Senate, Neil Hoff, from Tacoma from the Twenty-seventh District. He says, he’s, before Neil there was never a Republican elected. There hasn’t been since, Senator Regala. When Neil was a Republican Majority Leader in the Senate in the early 50’s. He was also a Governor of the State Bar Association, a distinguished lawyer in Tacoma. While he was here in Olympia, in this chamber, you might be interested to know that the Minority Leader was a Democrat by the name of Al Rosellini. There were other – those were the glory days of the bar, Senator Weinstein, we had a lot of lawyers here– Marsh Neill from Pullman, Harold Petrie, Perry Woodall from Toppenish, the lower Yakima Valley. He also, Senator Hoff says he was chairman of the Institutions Committee at one time and in the same year they had riots in both Monroe and Walla Walla. So times were tough. It’s a privilege for me to introduce a distinguished member of the bar and former Senator, Neil Hoff from Tacoma.”

      With the permission of the Senate, business was suspended to allow former Senator Neil J. Hoff, who served in from 1953 to 1957, to address the Senate.

REMARKS BY THE PRESIDENT

      President Owen: “The President would ask you to take note that he did that without a microphone.”

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      Senator Pridemore, moved that Gubernatorial Appointment No. 9297, Liz Luce, as a Director of the Department of Licensing, be confirmed.

      Senator Pridemore spoke in favor of the motion.

MOTION

On motion of Senator Hewitt, Senators McCaslin, Roach and Zarelli were excused.

APPOINTMENT OF LIZ LUCE

The President declared the question before the Senate to be the confirmation of Gubernatorial Appointment No. 9297, Liz Luce as a Director of the Department of Licensing.

      The Secretary called the roll on the confirmation of Gubernatorial Appointment No. 9297, Liz Luce as a Director of the Department of Licensing and the appointment was confirmed by the following vote: Yeas, 43; Nays, 0; Absent, 4; Excused, 2.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Carrell, Deccio, Delvin, Eide, Esser, Fairley, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Pflug, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau and Weinstein - 43

      Absent: Senators Brown, Doumit, Finkbeiner and Poulsen - 4

      Excused: Senators McCaslin and Zarelli - 2

Gubernatorial Appointment No. 9297, Liz Luce, having received the constitutional majority was declared confirmed as a Director of the Department of Licensing.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      Senator Hargrove, moved that Gubernatorial Appointment No. 9303, Robin Arnold-Williams, as Secretary of the Department of Social & Health Services, be confirmed.

      Senators Hargrove, Stevens, Thibaudeau, Deccio and Parlette spoke in favor of the motion.

APPOINTMENT OF ROBIN ARNOLD-WILLIAMS

The President declared the question before the Senate to be the confirmation of Gubernatorial Appointment No. 9303, Robin Arnold-Williams as Secretary of the Department of Social & Health Services.

      The Secretary called the roll on the confirmation of Gubernatorial Appointment No. 9303, Robin Arnold-Williams as Secretary of the Department of Social & Health Services and the appointment was confirmed by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 48

      Excused: Senator McCaslin - 1

Gubernatorial Appointment No. 9303, Robin Arnold-Williams, having received the constitutional majority was declared confirmed as Secretary of the Department of Social & Health Services.

PERSONAL PRIVILEGE

Senator Hargrove: “Mr. President, I’d just like to say that Robin will be available in our Caucus when we break for caucus to meet everybody and then we’ll go over to the Republican Caucus right after that to be available to meet them. So, just wanted to let people know that. Thank you.”

MOTION

At 2:05 p.m., on motion of Senator Eide, the Senate was declared to be at ease subject to the call of the President.

The Senate was called to order at 3:04 p.m. by President Owen.

MOTION

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

SECOND READING

      SENATE BILL NO. 6103, by Senators Haugen and Swecker

      Providing funding and funding options for transportation projects.

MOTION

      On motion of Senator Haugen, Substitute Senate Bill No. 6103 was substituted for Senate Bill No. 6103 and the substitute bill was placed on the second reading and read the second time.

MOTION

      Senator Haugen moved that the following striking amendment by Senator Haugen be adopted:

      Strike everything after the enacting clause and insert the following:

"PART I - VEHICLE FUEL TAXES

   Sec. 101. RCW 82.36.025 and 2003 c 361 s 401 are each amended to read as follows:

    (1) A motor vehicle fuel tax rate of twenty-three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

    (2) Beginning July 1, 2003, an additional and cumulative motor vehicle fuel tax rate of five cents per gallon applies to the sale, distribution, or use of motor vehicle fuel. This subsection (2) expires when the bonds issued for transportation 2003 projects are retired.

    (3) Beginning July 1, 2005, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

    (4) Beginning July 1, 2006, an additional and cumulative motor vehicle fuel tax rate of three cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

    (5) Beginning July 1, 2007, an additional and cumulative motor vehicle fuel tax rate of two cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

    (6) Beginning July 1, 2008, an additional and cumulative motor vehicle fuel tax rate of one and one-half cents per gallon applies to the sale, distribution, or use of motor vehicle fuel.

    Sec. 102. RCW 82.38.030 and 2003 c 361 s 402 are each amended to read as follows:

    (1) There is hereby levied and imposed upon special fuel users a tax at the rate 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) Beginning July 1, 2003, an additional and cumulative tax rate of five cents 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. This subsection (2) expires when the bonds issued for transportation 2003 projects are retired.

    (3) Beginning July 1, 2005, an additional and cumulative tax rate of three cents 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.

    (4) Beginning July 1, 2006, an additional and cumulative tax rate of three cents 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.

    (5) Beginning July 1, 2007, an additional and cumulative tax rate of two cents 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.

    (6) Beginning July 1, 2008, an additional and cumulative tax rate of one and one-half cents 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.

    (7) Taxes are imposed when:

    (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;

    (c) Special fuel enters into this state for sale, consumption, use, or storage if either of the following applies:

    (i) The entry is by bulk transfer and the importer is not a licensee; or

    (ii) The entry is not by bulk transfer;

   (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.

   (((4))) (8) 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. 103. RCW 46.68.090 and 2003 c 361 s 403 are each 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 accordance with subsections (2)((, (3), and (4))) through (7) of this 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.

   (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;

   (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:

   (i) Accident experience;

   (ii) Fatal accident experience;

   (iii) Capacity to move people and goods safely and at reasonable speeds without undue congestion; and

   (iv) Continuity of development of the highway transportation network.

   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 (2)(b);

    (c) For distribution to the Puget Sound ferry operations account in the motor vehicle fund an amount equal to 2.3283 percent;

    (d) For distribution to the Puget Sound capital construction account in the motor vehicle fund an amount equal to 2.3726 percent;

    (e) For distribution to the urban arterial trust account in the motor vehicle fund an amount equal to 7.5597 percent;

    (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;

    (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;

    (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;

    (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;

    (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.

    (3) ((One hundred percent of)) The remaining net tax amount collected under RCW 82.36.025(2) and 82.38.030(2) shall be distributed to the transportation 2003 account (nickel account).

    (4) The remaining net tax amount collected under RCW 82.36.025(3) and 82.38.030(3) shall be distributed as follows:

    (a) 8.3333 percent shall be distributed to the incorporated cities and towns of the state in accordance with RCW 46.68.110;

    (b) 8.3333 percent shall be distributed to counties of the state in accordance with RCW 46.68.120; and

    (c) The remainder shall be distributed to the transportation partnership account created in section 104 of this act.

    (5) The remaining net tax amount collected under RCW 82.36.025(4) and 82.38.030(4) shall be distributed as follows:

    (a) 8.3333 percent shall be distributed to the incorporated cities and towns of the state in accordance with RCW 46.68.110;

    (b) 8.3333 percent shall be distributed to counties of the state in accordance with RCW 46.68.120; and

    (c) The remainder shall be distributed to the transportation partnership account created in section 104 of this act.

    (6) The remaining net tax amount collected under RCW 82.36.025 (5) and (6) and 82.38.030 (5) and (6) shall be distributed to the transportation partnership account created in section 104 of this act.

    (7) 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.

    NEW SECTION. Sec. 104. A new section is added to chapter 46.68 RCW to read as follows:

    (1) The transportation partnership account is hereby created in the state treasury. All distributions to the account from RCW 46.68.090 must be deposited into the account. Money in the account may be spent only after appropriation. Expenditures from the account must be used only for projects or improvements identified as 2005 transportation partnership projects or improvements in the omnibus transportation appropriations act, including any principal and interest on bonds authorized for the projects or improvements.

   (2) If a regional transportation plan has not been adopted by January 2007, the legislature intends to reprioritize allocation of funding for the projects identified on the 2005 transportation partnership project list so that complete and functioning transportation projects can be constructed in a reasonable time.

   (3) By January 1, 2006, the transportation performance audit board must develop performance measures and benchmarks for the evaluation of the expenditures of the transportation partnership account. The board must also develop an audit plan and schedule for audits of the performance of the department of transportation's delivery of the plan as defined by project list, schedule, and budget enacted by the legislature.

   (4) The legislature finds that:

   (a) Citizens demand and deserve accountability of transportation-related programs and expenditures. Transportation-related programs must continuously improve in quality, efficiency, and effectiveness in order to increase public trust;

   (b) Transportation-related agencies that receive tax dollars must continuously improve the way they operate and deliver services so citizens receive maximum value for their tax dollars; and

   (c) Fair, independent, comprehensive performance audits of transportation-related agencies by the elected state auditor are essential to improving the efficiency, economy, and effectiveness of the state's transportation system.

   (5) For purposes of this act:

   (a) "Performance audit" means an objective and systematic assessment of a state agency or agencies or any of their programs, functions, or activities by the state auditor or designee in order to help improve agency efficiency, effectiveness, and accountability. Performance audits include economy and efficiency audits and program audits.

   (b) "Transportation-related agency" means any state agency, board, or commission that receives funding primarily for transportation-related purposes. At a minimum, the department of transportation, the transportation improvement board or its successor entity, the county road administration board or its successor entity, and the traffic safety commission are considered transportation-related agencies. The Washington state patrol and the department of licensing shall not be considered transportation-related agencies under this act.

   (6) Within the authorities and duties under chapter 43.09 RCW, the state auditor shall establish criteria and protocols for performance audits. Transportation-related agencies shall be audited using criteria that include generally accepted government auditing standards as well as legislative mandates and performance objectives established by state agencies. Mandates include, but are not limited to, agency strategies, timelines, program objectives, and mission and goals as required in RCW 43.88.090.

   (7) Within the authorities and duties under chapter 43.09 RCW, the state auditor may conduct performance audits for transportation-related agencies.

   (8) In conducting the audits, the state auditor may involve the transportation-related agency front-line employees and internal auditors. The audits may include:

   (a) Identification of programs and services that can be eliminated, reduced, consolidated, or enhanced;

   (b) Identification of funding sources to the transportation-related agency, to programs, and to services that can be eliminated, reduced, consolidated, or enhanced;

   (c) Analysis of gaps and overlaps in programs and services and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps;

   (d) Analysis and recommendations for pooling information technology systems used within the transportation-related agency, and evaluation of information processing and telecommunications policy, organization, and management;

    (e) Analysis of the roles and functions of the transportation-related agency, its programs, and its services and their compliance with statutory authority and recommendations for eliminating or changing those roles and functions and ensuring compliance with statutory authority;

    (f) Recommendations for eliminating or changing statutes, rules, and policy directives as may be necessary to ensure that the transportation-related agency carry out reasonably and properly those functions vested in the agency by statute;

    (g) Verification of the reliability and validity of transportation-related agency performance data, self-assessments, and performance measurement systems as required under RCW 43.88.090;

    (h) Identification of potential cost savings in the transportation-related agency, its programs, and its services;

    (i) Identification and recognition of best practices;

    (j) Evaluation of planning, budgeting, and program evaluation policies and practices;

    (k) Evaluation of personnel systems operation and management;

    (l) Evaluation of purchasing operations and management policies and practices;

    (m) Evaluation of organizational structure and staffing levels, particularly in terms of the ratio of managers and supervisors to nonmanagement personnel; and

    (n) Evaluation of transportation-related project costs, including but not limited to environmental mitigation, competitive bidding practices, permitting processes, and capital project management.

    (9) Within the authorities and duties under chapter 43.09 RCW, the state auditor must provide the preliminary performance audit reports to the audited state agency for comment. The auditor also may seek input on the preliminary report from other appropriate officials. Comments must be received within thirty days after receipt of the preliminary performance audit report unless a different time period is approved by the state auditor. The final performance audit report shall include the objectives, scope, and methodology; the audit results, including findings and recommendations; the agency's response and conclusions; and identification of best practices.

    (10) The state auditor shall provide final performance audit reports to the citizens of Washington, the governor, the joint legislative audit and review committee, the transportation performance audit board, the appropriate legislative committees, and other appropriate officials. Final performance audit reports shall be posted on the internet.

    (11) The audited transportation-related agency is responsible for follow-up and corrective action on all performance audit findings and recommendations. The audited agency's plan for addressing each audit finding and recommendation shall be included in the final audit report. The plan shall provide the name of the contact person responsible for each action, the action planned, and the anticipated completion date. If the audited agency does not agree with the audit findings and recommendations or believes action is not required, then the action plan shall include an explanation and specific reasons.

    The office of financial management shall require periodic progress reports from the audited agency until all resolution has occurred. The office of financial management is responsible for achieving audit resolution. The office of financial management shall annually report by December 31st the status of performance audit resolution to the appropriate legislative committees and the state auditor. The legislature shall consider the performance audit results in connection with the state budget process.

    The auditor may request status reports on specific audits or findings.

    (12) For the period from July 1, 2005, until June 30, 2007, the amount of $1,000,000 is appropriated from the transportation partnership account to the state auditors office for the purposes of subsections (4) through (11) of this section.

   (13) When appointing the citizen members with performance measurement expertise to the transportation performance audit board, the governor shall appoint the state auditor, or his or her designee.

   (14) If the state auditor's financial audit of a transportation-related agency implies that a performance audit is warranted, the transportation performance audit board shall include in its annual work plan the performance audit recommended by the state auditor.

   NEW SECTION. Sec. 105. A new section is added to chapter 46.68 RCW to read as follows:

   The freight mobility investment account is hereby created in the state treasury. Money in the account may be spent only after appropriation. Expenditures from the account may be used only for freight mobility projects identified in the omnibus transportation appropriations act, including any principal and interest on bonds authorized for the projects or improvements.

   Sec. 106. RCW 46.68.110 and 2003 c 361 s 404 are each amended to read as follows:

   Funds credited to the incorporated cities and towns of the state as set forth in RCW 46.68.090(((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(((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.

    Sec. 107. RCW 82.38.035 and 2003 c 361 s 405 are each amended to read as follows:

    (1) A licensed supplier shall remit tax on special fuel to the department as provided in RCW 82.38.030(((3)(a))) (7)(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(((3)(b))) (7)(b).

    (3) An importer shall remit tax to the department on special fuel imported into this state as provided in RCW 82.38.030(((3)(c))) (7)(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(((3)(e))) (7)(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(((3)(f))) (7)(f).

    Sec. 108. RCW 82.38.045 and 1998 c 176 s 54 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, at the time of removal:

    (1) The position holder with respect to the special fuel is a person other than the terminal operator and is not a licensee;

    (2) The terminal operator is not a licensee;

    (3) The position holder has an expired internal revenue service notification certificate issued under chapter 26, C.F.R. Part 48; or

    (4) The terminal operator had reason to believe that information on the notification certificate was false.

    Sec. 109. RCW 43.84.092 and 2003 c 361 s 602, 2003 c 324 s 1, 2003 c 150 s 2, and 2003 c 48 s 2 are each reenacted and amended to read as follows:

    (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

    (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

    (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

    (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

    (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the election account, the emergency reserve fund, The Evergreen State College capital projects account, the federal forest revolving account, the freight mobility investment account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the regional transportation investment district account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the transportation partnership account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

   (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

    (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

    Sec. 110. RCW 43.84.092 and 2004 c 242 s 60 are each amended to read as follows:

    (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.

    (2) The treasury income account shall be utilized to pay or receive funds associated with federal programs as required by the federal cash management improvement act of 1990. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for refunds or allocations of interest earnings required by the cash management improvement act. Refunds of interest to the federal treasury required under the cash management improvement act fall under RCW 43.88.180 and shall not require appropriation. The office of financial management shall determine the amounts due to or from the federal government pursuant to the cash management improvement act. The office of financial management may direct transfers of funds between accounts as deemed necessary to implement the provisions of the cash management improvement act, and this subsection. Refunds or allocations shall occur prior to the distributions of earnings set forth in subsection (4) of this section.

    (3) Except for the provisions of RCW 43.84.160, the treasury income account may be utilized for the payment of purchased banking services on behalf of treasury funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasury and affected state agencies. The treasury income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.

    (4) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:

    (a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the drinking water assistance account, the drinking water assistance administrative account, the drinking water assistance repayment account, the Eastern Washington University capital projects account, the education construction fund, the election account, the emergency reserve fund, The Evergreen State College capital projects account, the federal forest revolving account, the freight mobility investment account, the health services account, the public health services account, the health system capacity account, the personal health services account, the state higher education construction account, the higher education construction account, the highway infrastructure account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local real estate excise tax account, the local sales and use tax account, the medical aid account, the mobile home park relocation fund, the multimodal transportation account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the oyster reserve land account, the perpetual surveillance and maintenance account, the public employees' retirement system plan 1 account, the public employees' retirement system combined plan 2 and plan 3 account, the public facilities construction loan revolving account beginning July 1, 2004, the public health supplemental account, the public works assistance account, the Puyallup tribal settlement account, the regional transportation investment district account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the Tacoma Narrows toll bridge account, the teachers' retirement system plan 1 account, the teachers' retirement system combined plan 2 and plan 3 account, the tobacco prevention and control account, the tobacco settlement account, the transportation infrastructure account, the transportation partnership account, the tuition recovery trust fund, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' and reserve officers' relief and pension principal fund, the volunteer fire fighters' and reserve officers' administrative fund, the Washington fruit express account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan 1 retirement account, the Washington law enforcement officers' and fire fighters' system plan 2 retirement account, the Washington public safety employees' plan 2 retirement account, the Washington school employees' retirement system combined plan 2 and 3 account, the Washington state health insurance pool account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, the water pollution control revolving fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (4)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.

   (b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The aeronautics account, the aircraft search and rescue account, the county arterial preservation account, the department of licensing services account, the essential rail assistance account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway safety account, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the safety and education account, the special category C account, the state patrol highway account, the transportation 2003 account (nickel account), the transportation equipment fund, the transportation fund, the transportation improvement account, the transportation improvement board bond retirement account, and the urban arterial trust account.

    (5) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

    NEW SECTION. Sec. 111. A new section is added to chapter 46.68 RCW to read as follows:

    Beginning July 1, 2007, and each year thereafter, the state treasurer shall transfer five million dollars from the multimodal account to the transportation infrastructure account created under RCW 82.44.190. The funds must be distributed for rail capital improvements only.

PART II - FEES ADMINISTERED ACCORDING TO VEHICLE WEIGHT

    NEW SECTION. Sec. 201. (1) There shall be paid and collected annually for motor vehicles subject to the fee under RCW 46.16.0621, except motor homes, a vehicle weight fee. The amount of the fee shall be based upon the vehicle scale weight, which is correlated with vehicle size and roadway lane usage. Fees imposed under this section must be used for transportation purposes, and shall not be used for the general support of state government. The vehicle weight fee shall be that portion of the fee as reflected on the scale weight set forth in schedule B provided in RCW 46.16.070 that is in excess of the fee imposed under RCW 46.16.0621. This fee is due at the time of initial and renewal of vehicle registration.

    (2) If the resultant weight according to this section is not listed in schedule B provided in RCW 46.16.070, it shall be increased to the next higher weight pursuant to chapter 46.44 RCW.

    (3) For the purpose of administering this section, the department shall rely on the vehicle empty scale weights as provided by vehicle manufacturers, or other sources defined by the department, to determine the weight of each vehicle. The department shall adopt rules for determining weight for vehicles without manufacturer empty scale weights.

    (4) The vehicle weight fee under this section is imposed to provide funds to mitigate the impact of vehicle loads on the state roads and highways and is separate and distinct from other vehicle license fees. Proceeds from the fee may be used for transportation purposes, or for facilities and activities that reduce the number of vehicles or load weights on the state roads and highways.

    (5) The vehicle weight fee collected under this section shall be deposited as follows:

    (a) On July 1, 2006, six million dollars shall be deposited into the freight mobility investment account created in section 105 of this act, and the remainder collected from the effective date of this section, through June 30, 2006, shall be deposited into the multimodal transportation account;

    (b) Beginning July 1, 2007, and every July 1st thereafter, three million dollars shall be deposited into the freight mobility investment account created in section 105 of this act, and the remainder shall be deposited into the multimodal transportation account.

    NEW SECTION. Sec. 202. In addition to any other fees or charges, there shall be paid and collected annually for motor homes a vehicle weight fee of seventy-five dollars. This fee is due at the time of initial and renewal of vehicle registration. The fee collected under this section shall be deposited in the multimodal transportation account.

    NEW SECTION. Sec. 203. A new section is added to chapter 46.16 RCW to read as follows:

    In lieu of the license tab fees provided in RCW 46.16.0621, private use single-axle trailers of two thousand pounds scale weight or less may be licensed upon the payment of a license fee in the sum of fifteen dollars, but only if the trailer is operated upon public highways. The license fee must be collected annually for each registration year or fraction of a registration year. This reduced license fee applies only to trailers operated for personal use of the owners, and not trailers held for rental to the public or used in any commercial or business endeavor. The proceeds from the fees collected under this section shall be distributed in accordance with RCW 46.68.035.

   Sec. 204. RCW 46.16.070 and 2003 c 361 s 201 and 2003 c 1 s 3 are each reenacted and amended to read as follows:

   (1) In lieu of all other vehicle licensing fees, unless specifically exempt, and in addition to 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 under chapter 46.44 RCW, the following licensing fees by ((such gross)) weight:

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. 205. RCW 46.68.035 and 2003 c 361 s 202 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, the license fee under section 203 of this act, and the farm vehicle trip permit under section 206 of this act 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.

                                                                                                                        (2) The remainder shall be distributed as follows:

                                                                                                                        (a) ((21.963)) 24.00 percent shall be deposited into the state patrol highway account of the motor vehicle fund;

                                                                                                                        (b) ((1.411)) 1.8 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund;

                                                                                                                        (c) ((7.240)) 6.38 percent shall be deposited into the transportation 2003 account (nickel account); and

                                                                                                                        (d) On July 1, 2006, six million dollars shall be deposited into the freight mobility investment account created in section 105 of this act and beginning on July 1, 2007, and every July 1st thereafter, three million dollars shall be deposited into the freight mobility investment account created in section 105 of this act;

                                                                                                                        (e) The remaining proceeds shall be deposited into the motor vehicle fund.

                                                                                                                        NEW SECTION. Sec. 206. A new section is added to chapter 46.16 RCW to read as follows:

                                                                                                                        (1) The owner of a farm vehicle licensed under RCW 46.16.090 purchasing a monthly license under RCW 46.16.135 may, as an alternative to the first partial month of the license registration, secure and operate the vehicle under authority of a farm vehicle trip permit issued by this state. The licensed gross weight may not exceed eighty thousand pounds for a combination of vehicles nor forty thousand pounds for a single unit vehicle with three or more axles.

                                                                                                                        (2) If a monthly license previously issued has expired, the owner of a farm vehicle may, as an alternative to purchasing a full monthly license, secure and operate the vehicle under authority of a farm vehicle trip permit issued by this state. The licensed gross weight may not exceed eighty thousand pounds for a combination of vehicles nor forty thousand pounds for a single unit vehicle with three or more axles.

                                                                                                                        (3) Each farm vehicle trip permit shall authorize the operation of a single vehicle at the maximum legal weight limit for the vehicle for the period remaining in the first month of monthly license, commencing with the day of first use. No more than four such permits may be used for any one vehicle in any twelve-month period. Every permit shall identify, as the department may require, the vehicle for which it is issued and shall be completed in its entirety and signed by the operator before operation of the vehicle on the public highways of this state. Correction of data on the permit such as dates, license number, or vehicle identification number invalidates the permit. The farm vehicle trip permit shall be displayed on the vehicle to which it is issued as prescribed by the department.

                                                                                                                        (4) Vehicles operating under authority of farm vehicle trip permits are subject to all laws, rules, and regulations affecting the operation of like vehicles in this state.

                                                                                                                        (5) Farm vehicle trip permits may be obtained from the department of licensing or agents and subagents appointed by the department. The fee for each farm vehicle trip permit is six dollars and twenty-five cents. Farm vehicle trip permits sold by the department's agents or subagents are subject to fees specified in RCW 46.01.140 (4)(a), (5)(b), or (6).

(6) The proceeds from farm vehicle trip permits received by the director shall be forwarded to the state treasurer to be distributed as provided in RCW 46.68.035.

(7) No exchange, credits, or refunds may be given for farm vehicle trip permits after they have been purchased.

(8) The department of licensing may adopt rules as it deems necessary to administer this section.

PART III - MISCELLANEOUS FEES

Sec. 301. RCW 46.16.237 and 1987 c 52 s 1 are each amended to read as follows:

All vehicle license number plates issued after January 1, 1968, or such earlier date as the director may prescribe with respect to plates issued in any county, shall be treated with fully reflectorized materials designed to increase the visibility and legibility of such plates at night. In addition to all other fees prescribed by law, there shall be paid and collected for each vehicle license number plate treated with such materials, the sum of ((fifty cents)) two dollars and for each set of two plates, the sum of ((one dollar: PROVIDED, HOWEVER,)) four dollars. However, one plate is available only to those vehicles that by law require only one plate. Such fees shall be deposited in the motor vehicle fund.

Sec. 302. RCW 46.16.270 and 1997 c 291 s 3 are each amended to read as follows:

The total replacement plate fee shall be deposited in the motor vehicle fund.

Upon the loss, defacement, or destruction of one or both of the vehicle license number plates issued for any vehicle where more than one plate was originally issued or where one or both have become so illegible or in such a condition as to be difficult to distinguish, or upon the owner's option, the owner of the vehicle shall make application for new vehicle license number plates upon a form furnished by the director. The application shall be filed with the director or the director's authorized agent, accompanied by the certificate of license registration of the vehicle and a fee in the amount of ((three)) ten dollars per plate, whereupon the director, or the director's authorized agent, shall issue new vehicle license number plates to the applicant. It shall be accompanied by a fee of two dollars for a new motorcycle license number plate. In the event the director has issued license period tabs or a windshield emblem instead of vehicle license number plates, and upon the loss, defacement, or destruction of the tabs or windshield emblem, application shall be made on a form provided by the director and in the same manner as above described, and shall be accompanied by a fee of one dollar for each pair of tabs or for each windshield emblem, whereupon the director shall issue to the applicant a duplicate pair of tabs, year tabs, and when necessary month tabs or a windshield emblem to replace those lost, defaced, or destroyed. For vehicles owned, rented, or leased by the state of Washington or by any county, city, town, school district, or other political subdivision of the state of Washington or United States government, or owned or leased by the governing body of an Indian tribe as defined in RCW 46.16.020, a fee shall be charged for replacement of a vehicle license number plate only to the extent required by the provisions of RCW 46.16.020, ((46.16.061,)) 46.16.237, and 46.01.140. For vehicles owned, rented, or leased by foreign countries or international bodies to which the United States government is a signatory by treaty, the payment of any fee for the replacement of a vehicle license number plate shall not be required.

Sec. 303. RCW 46.20.055 and 2004 c 249 s 3 are each amended to read as follows:

(1) Driver's instruction permit. The department may issue a driver's instruction permit with or without a photograph to an applicant who has successfully passed all parts of the examination other than the driving test, provided the information required by RCW 46.20.091, paid a fee of ((fifteen)) twenty dollars, and meets the following requirements:

(a) Is at least fifteen and one-half years of age; or

(b) Is at least fifteen years of age and:

                                                                                                                        (i) Has submitted a proper application; and

                                                                                                                        (ii) Is enrolled in a traffic safety education program offered, approved, and accredited by the superintendent of public instruction or offered by a driver training school licensed and inspected by the department of licensing under chapter 46.82 RCW, that includes practice driving.

                                                                                                                        (2) Waiver of written examination for instruction permit. The department may waive the written examination, if, at the time of application, an applicant is enrolled in:

                                                                                                                        (a) A traffic safety education course as defined by RCW 28A.220.020(2); or

                                                                                                                        (b) A course of instruction offered by a licensed driver training school as defined by RCW 46.82.280(1).

                                                                                                                        The department may require proof of registration in such a course as it deems necessary.

                                                                                                                        (3) Effect of instruction permit. A person holding a driver's instruction permit may drive a motor vehicle, other than a motorcycle, upon the public highways if:

                                                                                                                        (a) The person has immediate possession of the permit; and

                                                                                                                        (b) An approved instructor, or a licensed driver with at least five years of driving experience, occupies the seat beside the driver.

                                                                                                                        (4) Term of instruction permit. A driver's instruction permit is valid for one year from the date of issue.

                                                                                                                        (a) The department may issue one additional one-year permit.

                                                                                                                        (b) The department may issue a third driver's permit if it finds after an investigation that the permittee is diligently seeking to improve driving proficiency.

                                                                                                                        (c) A person applying to renew an instruction permit must submit the application to the department in person.

                                                                                                                        Sec. 304. RCW 46.20.070 and 2004 c 249 s 4 are each amended to read as follows:

                                                                                                                        (1) Agricultural driving permit authorized. The director may issue a juvenile agricultural driving permit to a person under the age of eighteen years if:

                                                                                                                        (a) The application is signed by the applicant and the applicant's father, mother, or legal guardian;

                                                                                                                        (b) The applicant has passed the driving examination required by RCW 46.20.120;

                                                                                                                        (c) The department has investigated the applicant's need for the permit and determined that the need justifies issuance;

                                                                                                                        (d) The department has determined the applicant is capable of operating a motor vehicle without endangering himself or herself or other persons and property; and

                                                                                                                        (e) The applicant has paid a fee of ((fifteen)) twenty dollars.

                                                                                                                        The permit must contain a photograph of the person.

                                                                                                                        (2) Effect of agricultural driving permit. (a) The permit authorizes the holder to:

                                                                                                                        (i) Drive a motor vehicle on the public highways of this state in connection with farm work. The holder may drive only within a restricted farming locality described on the permit; and

                                                                                                                        (ii) Participate in the classroom portion of a traffic safety education course authorized under RCW 28A.220.030 or the classroom portion of a traffic safety education course offered by a driver training school licensed and inspected by the department of licensing under chapter 46.82 RCW offered in the community where the holder resides.

                                                                                                                        (b) The director may transfer the permit from one farming locality to another. A transfer is not a renewal of the permit.

                                                                                                                        (3) Term and renewal of agricultural driving permit. An agricultural driving permit expires one year from the date of issue.

                                                                                                                        (a) A person under the age of eighteen who holds a permit may renew the permit by paying a fee of fifteen dollars.

                                                                                                                        (b) A person applying to renew an agricultural driving permit must submit the application to the department in person.

                                                                                                                        (c) An agricultural driving permit is invalidated when a permittee attains age eighteen. In order to drive a motor vehicle on a highway he or she must obtain a motor vehicle driver's license under this chapter.

                                                                                                                        (4) Suspension, revocation, or cancellation. The director has sole discretion to suspend, revoke, or cancel a juvenile agricultural driving permit if:

(a) The permittee has been found to have committed an offense that requires mandatory suspension or revocation of a driver's license; or

(b) The director is satisfied that the permittee has violated the permit's restrictions.

Sec. 305. RCW 46.20.117 and 2004 c 249 s 5 are each amended to read as follows:

(1) Issuance. The department shall issue an identicard, containing a picture, if the applicant:

(a) Does not hold a valid Washington driver's license;

(b) Proves his or her identity as required by RCW 46.20.035; and

(c) Pays the required fee. The fee is ((fifteen)) twenty dollars unless an applicant is a recipient of continuing public assistance grants under Title 74 RCW, who is referred in writing by the secretary of social and health services. For those persons the fee must be the actual cost of production of the identicard.

(2) Design and term. The identicard must:

(a) Be distinctly designed so that it will not be confused with the official driver's license; and

(b) Expire on the fifth anniversary of the applicant's birthdate after issuance.

(3) Renewal. An application for identicard renewal may be submitted by means of:

(a) Personal appearance before the department; or

(b) Mail or electronic commerce, if permitted by rule of the department and if the applicant did not renew his or her identicard by mail or by electronic commerce when it last expired. However, the department may accept an application for renewal of an identicard submitted by means of mail or electronic commerce only if specific authority and funding is provided for this purpose by June 30, 2004, in the omnibus transportation appropriations act.

An identicard may not be renewed by mail or by electronic commerce unless the renewal issued by the department includes a photograph of the identicard holder.

(4) Cancellation. The department may cancel an identicard if the holder of the identicard used the card or allowed others to use the card in violation of RCW 46.20.0921.

Sec. 306. RCW 46.20.120 and 2004 c 249 s 6 are each amended to read as follows:

An applicant for a new or renewed driver's license must successfully pass a driver licensing examination to qualify for a driver's license. The department shall give examinations at places and times reasonably available to the people of this state.

(1) Waiver. The department may waive:

(a) All or any part of the examination of any person applying for the renewal of a driver's license unless the department determines that the applicant is not qualified to hold a driver's license under this title; or

(b) The actual demonstration of the ability to operate a motor vehicle if the applicant:

(i) Surrenders a valid driver's license issued by the person's previous home state; and

(ii) Is otherwise qualified to be licensed.

(2) Fee. Each applicant for a new license must pay an examination fee of ((ten)) twenty dollars.

(a) The examination fee is in addition to the fee charged for issuance of the license.

(b) "New license" means a license issued to a driver:

(i) Who has not been previously licensed in this state; or

(ii) Whose last previous Washington license has been expired for more than five years.

(3) An application for driver's license renewal may be submitted by means of:

(a) Personal appearance before the department; or

(b) Mail or electronic commerce, if permitted by rule of the department and if the applicant did not renew his or her license by mail or by electronic commerce when it last expired. However, the department may accept an application for renewal of a driver's license submitted by means of mail or electronic commerce only if specific authority and funding is provided for this purpose by June 30, 2004, in the omnibus transportation appropriations act.

                                                                                                                        (4) A person whose license expired or will expire while he or she is living outside the state, may:

                                                                                                                        (a) Apply to the department to extend the validity of his or her license for no more than twelve months. If the person establishes to the department's satisfaction that he or she is unable to return to Washington before the date his or her license expires, the department shall extend the person's license. The department may grant consecutive extensions, but in no event may the cumulative total of extensions exceed twelve months. An extension granted under this section does not change the expiration date of the license for purposes of RCW 46.20.181. The department shall charge a fee of five dollars for each license extension;

                                                                                                                        (b) Apply to the department to renew his or her license by mail or, if permitted by rule of the department, by electronic commerce even if subsection (3)(b) of this section would not otherwise allow renewal by that means. If the person establishes to the department's satisfaction that he or she is unable to return to Washington within twelve months of the date that his or her license expires, the department shall renew the person's license by mail or, if permitted by rule of the department, by electronic commerce.

                                                                                                                        (5) If a qualified person submits an application for renewal under subsection (3)(b) or (4)(b) of this section, he or she is not required to pass an examination nor provide an updated photograph. A license renewed by mail or by electronic commerce that does not include a photograph of the licensee must be labeled "not valid for identification purposes."

                                                                                                                        Sec. 307. RCW 46.20.308 and 2004 c 187 s 1 and 2004 c 95 s 2 are each reenacted and amended to read as follows:

                                                                                                                        (1) Any person who operates a motor vehicle within this state is deemed to have given consent, subject to the provisions of RCW 46.61.506, to a test or tests of his or her breath or blood for the purpose of determining the alcohol concentration or presence of any drug in his or her breath or blood if arrested for any offense where, at the time of the arrest, the arresting officer has reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle while under the influence of intoxicating liquor or any drug or was in violation of RCW 46.61.503. Neither consent nor this section precludes a police officer from obtaining a search warrant for a person's breath or blood.

                                                                                                                        (2) The test or tests of breath shall be administered at the direction of a law enforcement officer having reasonable grounds to believe the person to have been driving or in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or any drug or the person to have been driving or in actual physical control of a motor vehicle while having alcohol in a concentration in violation of RCW 46.61.503 in his or her system and being under the age of twenty-one. However, in those instances where the person is incapable due to physical injury, physical incapacity, or other physical limitation, of providing a breath sample or where the person is being treated in a hospital, clinic, doctor's office, emergency medical vehicle, ambulance, or other similar facility or where the officer has reasonable grounds to believe that the person is under the influence of a drug, a blood test shall be administered by a qualified person as provided in RCW 46.61.506(5). The officer shall inform the person of his or her right to refuse the breath or blood test, and of his or her right to have additional tests administered by any qualified person of his or her choosing as provided in RCW 46.61.506. The officer shall warn the driver, in substantially the following language, that:

                                                                                                                        (a) If the driver refuses to take the test, the driver's license, permit, or privilege to drive will be revoked or denied for at least one year; and

                                                                                                                        (b) If the driver refuses to take the test, the driver's refusal to take the test may be used in a criminal trial; and

                                                                                                                        (c) If the driver submits to the test and the test is administered, the driver's license, permit, or privilege to drive will be suspended, revoked, or denied for at least ninety days if the driver is age twenty-one or over and the test indicates the alcohol concentration of the driver's breath or blood is 0.08 or more, or if the driver is under age twenty-one and the test indicates the alcohol concentration of the driver's breath or blood is 0.02 or more, or if the driver is under age twenty-one and the driver is in violation of RCW 46.61.502 or 46.61.504.

(3) Except as provided in this section, the test administered shall be of the breath only. If an individual is unconscious or is under arrest for the crime of vehicular homicide as provided in RCW 46.61.520 or vehicular assault as provided in RCW 46.61.522, or if an individual is under arrest for the crime of driving while under the influence of intoxicating liquor or drugs as provided in RCW 46.61.502, which arrest results from an accident in which there has been serious bodily injury to another person, a breath or blood test may be administered without the consent of the individual so arrested.

(4) Any person who is dead, unconscious, or who is otherwise in a condition rendering him or her incapable of refusal, shall be deemed not to have withdrawn the consent provided by subsection (1) of this section and the test or tests may be administered, subject to the provisions of RCW 46.61.506, and the person shall be deemed to have received the warnings required under subsection (2) of this section.

(5) If, following his or her arrest and receipt of warnings under subsection (2) of this section, the person arrested refuses upon the request of a law enforcement officer to submit to a test or tests of his or her breath or blood, no test shall be given except as authorized under subsection (3) or (4) of this section.

(6) If, after arrest and after the other applicable conditions and requirements of this section have been satisfied, a test or tests of the person's blood or breath is administered and the test results indicate that the alcohol concentration of the person's breath or blood is 0.08 or more if the person is age twenty-one or over, or 0.02 or more if the person is under the age of twenty-one, or the person refuses to submit to a test, the arresting officer or other law enforcement officer at whose direction any test has been given, or the department, where applicable, if the arrest results in a test of the person's blood, shall:

(a) Serve notice in writing on the person on behalf of the department of its intention to suspend, revoke, or deny the person's license, permit, or privilege to drive as required by subsection (7) of this section;

(b) Serve notice in writing on the person on behalf of the department of his or her right to a hearing, specifying the steps he or she must take to obtain a hearing as provided by subsection (8) of this section;

(c) Mark the person's Washington state driver's license or permit to drive, if any, in a manner authorized by the department;

(d) Serve notice in writing that the marked license or permit, if any, is a temporary license that is valid for sixty days from the date of arrest or from the date notice has been given in the event notice is given by the department following a blood test, or until the suspension, revocation, or denial of the person's license, permit, or privilege to drive is sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first. No temporary license is valid to any greater degree than the license or permit that it replaces; and

(e) Immediately notify the department of the arrest and transmit to the department within seventy-two hours, except as delayed as the result of a blood test, a sworn report or report under a declaration authorized by RCW 9A.72.085 that states:

(i) That the officer had reasonable grounds to believe the arrested person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or was under the age of twenty-one years and had been driving or was in actual physical control of a motor vehicle while having an alcohol concentration in violation of RCW 46.61.503;

(ii) That after receipt of the warnings required by subsection (2) of this section the person refused to submit to a test of his or her blood or breath, or a test was administered and the results indicated that the alcohol concentration of the person's breath or blood was 0.08 or more if the person is age twenty-one or over, or was 0.02 or more if the person is under the age of twenty-one; and

                                                                                                                        (iii) Any other information that the director may require by rule.

                                                                                                                        (7) The department of licensing, upon the receipt of a sworn report or report under a declaration authorized by RCW 9A.72.085 under subsection (6)(e) of this section, shall suspend, revoke, or deny the person's license, permit, or privilege to drive or any nonresident operating privilege, as provided in RCW 46.20.3101, such suspension, revocation, or denial to be effective beginning sixty days from the date of arrest or from the date notice has been given in the event notice is given by the department following a blood test, or when sustained at a hearing pursuant to subsection (8) of this section, whichever occurs first.

                                                                                                                        (8) A person receiving notification under subsection (6)(b) of this section may, within thirty days after the notice has been given, request in writing a formal hearing before the department. The person shall pay a fee of ((one)) two hundred dollars as part of the request. If the request is mailed, it must be postmarked within thirty days after receipt of the notification. Upon timely receipt of such a request for a formal hearing, including receipt of the required ((one)) two hundred dollar fee, the department shall afford the person an opportunity for a hearing. The department may waive the required ((one)) two hundred dollar fee if the person is an indigent as defined in RCW 10.101.010. Except as otherwise provided in this section, the hearing is subject to and shall be scheduled and conducted in accordance with RCW 46.20.329 and 46.20.332. The hearing shall be conducted in the county of the arrest, except that all or part of the hearing may, at the discretion of the department, be conducted by telephone or other electronic means. The hearing shall be held within sixty days following the arrest or following the date notice has been given in the event notice is given by the department following a blood test, unless otherwise agreed to by the department and the person, in which case the action by the department shall be stayed, and any valid temporary license marked under subsection (6)(c) of this section extended, if the person is otherwise eligible for licensing. For the purposes of this section, the scope of the hearing shall cover the issues of whether a law enforcement officer had reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or any drug or had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more if the person was under the age of twenty-one, whether the person was placed under arrest, and (a) whether the person refused to submit to the test or tests upon request of the officer after having been informed that such refusal would result in the revocation of the person's license, permit, or privilege to drive, or (b) if a test or tests were administered, whether the applicable requirements of this section were satisfied before the administration of the test or tests, whether the person submitted to the test or tests, or whether a test was administered without express consent as permitted under this section, and whether the test or tests indicated that the alcohol concentration of the person's breath or blood was 0.08 or more if the person was age twenty-one or over at the time of the arrest, or 0.02 or more if the person was under the age of twenty-one at the time of the arrest. The sworn report or report under a declaration authorized by RCW 9A.72.085 submitted by a law enforcement officer is prima facie evidence that the officer had reasonable grounds to believe the person had been driving or was in actual physical control of a motor vehicle within this state while under the influence of intoxicating liquor or drugs, or both, or the person had been driving or was in actual physical control of a motor vehicle within this state while having alcohol in his or her system in a concentration of 0.02 or more and was under the age of twenty-one and that the officer complied with the requirements of this section.

A hearing officer shall conduct the hearing, may issue subpoenas for the attendance of witnesses and the production of documents, and shall administer oaths to witnesses. The hearing officer shall not issue a subpoena for the attendance of a witness at the request of the person unless the request is accompanied by the fee required by RCW 5.56.010 for a witness in district court. The sworn report or report under a declaration authorized by RCW 9A.72.085 of the law enforcement officer and any other evidence accompanying the report shall be admissible without further evidentiary foundation and the certifications authorized by the criminal rules for courts of limited jurisdiction shall be admissible without further evidentiary foundation. The person may be represented by counsel, may question witnesses, may present evidence, and may testify. The department shall order that the suspension, revocation, or denial either be rescinded or sustained.

(9) If the suspension, revocation, or denial is sustained after such a hearing, the person whose license, privilege, or permit is suspended, revoked, or denied has the right to file a petition in the superior court of the county of arrest to review the final order of revocation by the department in the same manner as an appeal from a decision of a court of limited jurisdiction. Notice of appeal must be filed within thirty days after the date the final order is served or the right to appeal is waived. Notwithstanding RCW 46.20.334, RALJ 1.1, or other statutes or rules referencing de novo review, the appeal shall be limited to a review of the record of the administrative hearing. The appellant must pay the costs associated with obtaining the record of the hearing before the hearing officer. The filing of the appeal does not stay the effective date of the suspension, revocation, or denial. A petition filed under this subsection must include the petitioner's grounds for requesting review. Upon granting petitioner's request for review, the court shall review the department's final order of suspension, revocation, or denial as expeditiously as possible. The review must be limited to a determination of whether the department has committed any errors of law. The superior court shall accept those factual determinations supported by substantial evidence in the record: (a) That were expressly made by the department; or (b) that may reasonably be inferred from the final order of the department. The superior court may reverse, affirm, or modify the decision of the department or remand the case back to the department for further proceedings. The decision of the superior court must be in writing and filed in the clerk's office with the other papers in the case. The court shall state the reasons for the decision. If judicial relief is sought for a stay or other temporary remedy from the department's action, the court shall not grant such relief unless the court finds that the appellant is likely to prevail in the appeal and that without a stay the appellant will suffer irreparable injury. If the court stays the suspension, revocation, or denial it may impose conditions on such stay.

(10)(a) If a person whose driver's license, permit, or privilege to drive has been or will be suspended, revoked, or denied under subsection (7) of this section, other than as a result of a breath or blood test refusal, and who has not committed an offense for which he or she was granted a deferred prosecution under chapter 10.05 RCW, petitions a court for a deferred prosecution on criminal charges arising out of the arrest for which action has been or will be taken under subsection (7) of this section, the court may direct the department to stay any actual or proposed suspension, revocation, or denial for at least forty-five days but not more than ninety days. If the court stays the suspension, revocation, or denial, it may impose conditions on such stay. If the person is otherwise eligible for licensing, the department shall issue a temporary license, or extend any valid temporary license marked under subsection (6) of this section, for the period of the stay. If a deferred prosecution treatment plan is not recommended in the report made under RCW 10.05.050, or if treatment is rejected by the court, or if the person declines to accept an offered treatment plan, or if the person violates any condition imposed by the court, then the court shall immediately direct the department to cancel the stay and any temporary marked license or extension of a temporary license issued under this subsection.

                                                                                                                        (b) A suspension, revocation, or denial imposed under this section, other than as a result of a breath or blood test refusal, shall be stayed if the person is accepted for deferred prosecution as provided in chapter 10.05 RCW for the incident upon which the suspension, revocation, or denial is based. If the deferred prosecution is terminated, the stay shall be lifted and the suspension, revocation, or denial reinstated. If the deferred prosecution is completed, the stay shall be lifted and the suspension, revocation, or denial canceled.

                                                                                                                        (c) The provisions of (b) of this subsection relating to a stay of a suspension, revocation, or denial and the cancellation of any suspension, revocation, or denial do not apply to the suspension, revocation, denial, or disqualification of a person's commercial driver's license or privilege to operate a commercial motor vehicle.

                                                                                                                        (11) When it has been finally determined under the procedures of this section that a nonresident's privilege to operate a motor vehicle in this state has been suspended, revoked, or denied, the department shall give information in writing of the action taken to the motor vehicle administrator of the state of the person's residence and of any state in which he or she has a license.

                                                                                                                        Sec. 308. RCW 46.20.311 and 2004 c 95 s 3 are each amended to read as follows:

                                                                                                                        (1)(a) The department shall not suspend a driver's license or privilege to drive a motor vehicle on the public highways for a fixed period of more than one year, except as specifically permitted under RCW 46.20.267, 46.20.342, or other provision of law.

                                                                                                                        (b) Except for a suspension under RCW 46.20.267, 46.20.289, 46.20.291(5), 46.61.740, or 74.20A.320, whenever the license or driving privilege of any person is suspended by reason of a conviction, a finding that a traffic infraction has been committed, pursuant to chapter 46.29 RCW, or pursuant to RCW 46.20.291 or 46.20.308, the suspension shall remain in effect until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW.

                                                                                                                        (c) If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reinstatement until enrollment and participation in an approved program has been established and the person is otherwise qualified. If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, and the person is required pursuant to RCW 46.20.720 to drive only a motor vehicle equipped with a functioning ignition interlock, the department shall determine the person's eligibility for licensing based upon written verification by a company doing business in the state that it has installed the required device on a vehicle owned or operated by the person seeking reinstatement. If, based upon notification from the interlock provider or otherwise, the department determines that an interlock required under RCW 46.20.720 is no longer installed or functioning as required, the department shall suspend the person's license or privilege to drive. Whenever the license or driving privilege of any person is suspended or revoked as a result of noncompliance with an ignition interlock requirement, the suspension shall remain in effect until the person provides notice issued by a company doing business in the state that a vehicle owned or operated by the person is equipped with a functioning ignition interlock device.

                                                                                                                        (d) Whenever the license or driving privilege of any person is suspended as a result of certification of noncompliance with a child support order under chapter 74.20A RCW or a residential or visitation order, the suspension shall remain in effect until the person provides a release issued by the department of social and health services stating that the person is in compliance with the order.

                                                                                                                        (e)(i) The department shall not issue to the person a new, duplicate, or renewal license until the person pays a reissue fee of ((twenty)) seventy-five dollars.

(ii) If the suspension is the result of a violation of RCW 46.61.502 or 46.61.504, or is the result of administrative action under RCW 46.20.308, the reissue fee shall be one hundred fifty dollars.

(2)(a) Any person whose license or privilege to drive a motor vehicle on the public highways has been revoked, unless the revocation was for a cause which has been removed, is not entitled to have the license or privilege renewed or restored until: (i) After the expiration of one year from the date the license or privilege to drive was revoked; (ii) after the expiration of the applicable revocation period provided by RCW 46.20.3101 or 46.61.5055; (iii) after the expiration of two years for persons convicted of vehicular homicide; or (iv) after the expiration of the applicable revocation period provided by RCW 46.20.265.

(b)(i) After the expiration of the appropriate period, the person may make application for a new license as provided by law together with a reissue fee in the amount of ((twenty)) seventy-five dollars.

(ii) If the revocation is the result of a violation of RCW 46.20.308, 46.61.502, or 46.61.504, the reissue fee shall be one hundred fifty dollars. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, the department shall determine the person's eligibility for licensing based upon the reports provided by the alcoholism agency or probation department designated under RCW 46.61.5056 and shall deny reissuance of a license, permit, or privilege to drive until enrollment and participation in an approved program has been established and the person is otherwise qualified. If the revocation is the result of a violation of RCW 46.61.502 or 46.61.504, and the person is required pursuant to RCW 46.20.720 to drive only a motor vehicle equipped with a functioning ignition interlock or other biological or technical device, the department shall determine the person's eligibility for licensing based upon written verification by a company doing business in the state that it has installed the required device on a vehicle owned or operated by the person applying for a new license. If, following issuance of a new license, the department determines, based upon notification from the interlock provider or otherwise, that an interlock required under RCW 46.20.720 is no longer functioning, the department shall suspend the person's license or privilege to drive until the department has received written verification from an interlock provider that a functioning interlock is installed.

(c) Except for a revocation under RCW 46.20.265, the department shall not then issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant the privilege of driving a motor vehicle on the public highways, and until the person gives and thereafter maintains proof of financial responsibility for the future as provided in chapter 46.29 RCW. For a revocation under RCW 46.20.265, the department shall not issue a new license unless it is satisfied after investigation of the driving ability of the person that it will be safe to grant that person the privilege of driving a motor vehicle on the public highways.

(3)(a) Whenever the driver's license of any person is suspended pursuant to Article IV of the nonresident violators compact or RCW 46.23.020 or 46.20.289 or 46.20.291(5), the department shall not issue to the person any new or renewal license until the person pays a reissue fee of ((twenty)) seventy-five dollars.

(b) If the suspension is the result of a violation of the laws of this or any other state, province, or other jurisdiction involving (i) the operation or physical control of a motor vehicle upon the public highways while under the influence of intoxicating liquor or drugs, or (ii) the refusal to submit to a chemical test of the driver's blood alcohol content, the reissue fee shall be one hundred fifty dollars.

Sec. 309. RCW 46.20.049 and 1999 c 308 s 4 are each amended to read as follows:

There shall be an additional fee for issuing any class of commercial driver's license in addition to the prescribed fee required for the issuance of the original driver's license. The additional fee for each class shall ((not exceed twenty)) be thirty dollars for the original commercial driver's license or subsequent renewals((, unless)). If the commercial driver's license is renewed or extended for a period other than five years, ((in which case)) the fee for each class shall ((not exceed four)) be six dollars for each year that the commercial driver's license is renewed or extended. The fee shall be deposited in the highway safety fund.

PART IV - MISCELLANEOUS PROVISIONS

                                                                                                                        Sec. 401. RCW 43.135.045 and 2003 1st sp.s. c 25 s 920 are each amended to read as follows:

                                                                                                                        (1) The emergency reserve fund is established in the state treasury. During each fiscal year, the state treasurer shall deposit in the emergency reserve fund all general fund--state revenues in excess of the state expenditure limit for that fiscal year. Deposits shall be made at the end of each fiscal quarter based on projections of state revenues and the state expenditure limit. The treasurer shall make transfers between these accounts as necessary to reconcile actual annual revenues and the expenditure limit for fiscal year 2000 and thereafter.

                                                                                                                        (2) The legislature may appropriate moneys from the emergency reserve fund only with approval of at least two-thirds of the members of each house of the legislature, and then only if the appropriation does not cause total expenditures to exceed the state expenditure limit under this chapter.

                                                                                                                        (3) The emergency reserve fund balance shall not exceed five percent of annual general fund--state revenues as projected by the official state revenue forecast. Any balance in excess of five percent shall be transferred on a quarterly basis by the state treasurer as follows: Seventy-five percent to the student achievement fund hereby created in the state treasury and twenty-five percent to the general fund balance. The treasurer shall make transfers between these accounts as necessary to reconcile actual annual revenues for fiscal year 2000 and thereafter. When per-student state funding for the maintenance and operation of K-12 education meets a level of no less than ninety percent of the national average of total funding from all sources per student as determined by the most recent published data from the national center for education statistics of the United States department of education, as calculated by the office of financial management, further deposits to the student achievement fund shall be required only to the extent necessary to maintain the ninety-percent level. Remaining funds are part of the general fund balance and these funds are subject to the expenditure limits of this chapter.

                                                                                                                        (4) The education construction fund is hereby created in the state treasury.

                                                                                                                        (a) Funds may be appropriated from the education construction fund exclusively for common school construction or higher education construction.

                                                                                                                        (b) Funds may be appropriated for any other purpose only if approved by a two-thirds vote of each house of the legislature and if approved by a vote of the people at the next general election. An appropriation approved by the people under this subsection shall result in an adjustment to the state expenditure limit only for the fiscal period for which the appropriation is made and shall not affect any subsequent fiscal period.

                                                                                                                        (5) Funds from the student achievement fund shall be appropriated to the superintendent of public instruction strictly for distribution to school districts to meet the provisions set out in the student achievement act. Allocations shall be made on an equal per full-time equivalent student basis to each school district.

                                                                                                                        (((6) Earnings of the emergency reserve fund under RCW 43.84.092(4)(a) shall be transferred quarterly to the multimodal transportation account, except for those earnings that are in excess of thirty-five million dollars each fiscal year. Within thirty days following any fiscal year in which earnings transferred to the multimodal transportation account under this subsection did not total thirty-five million dollars, the state treasurer shall transfer from the emergency reserve fund an amount necessary to bring the total deposited in the multimodal transportation account under this subsection to thirty-five million dollars. The revenues to the multimodal transportation account reflected in this subsection provide ongoing support for the transportation programs of the state. However, it is the intent of the legislature that any new long-term financial support that may be subsequently provided for transportation programs will be used to replace and supplant the revenues reflected in this subsection, thereby allowing those revenues to be returned to the purposes to which they were previously dedicated. No transfers from the emergency reserve fund to the multimodal fund shall be made during the 2003-05 fiscal biennium.))

NEW SECTION. Sec. 402. Sections 201 through 206, 301, and 302 of this act apply to vehicle registrations that are due or become due on or after January 1, 2006.

NEW SECTION. Sec. 403. (1) Section 110 of this act takes effect July 1, 2006.

(2) Sections 201 through 206 of this act take effect January 1, 2006.

NEW SECTION. Sec. 404. Sections 201 and 202 of this act constitute a new chapter in Title 46 RCW.

NEW SECTION. Sec. 405. Sections 101 through 107, 109, 303 through 310, and 401 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2005.

NEW SECTION. Sec. 406. Section 109 of this act expires July 1, 2006.

NEW SECTION. Sec. 407. Part headings used in this act are not part of the law."

Senator Haugen spoke in favor of adoption of the striking amendment.

MOTION

Senator Benton moved that the following amendment by Senator Benton and others to the striking amendment be adopted.

On page 1, line 13 of the amendment, after "Beginning" strike "July 1, 2005" and insert "January 1, 2006"

On page 2, line 10 of the amendment, after "Beginning" strike "July 1, 2005" and insert "January 1, 2006"

On page 44, beginning on line 3 of the amendment, strike all of section 405

On page 44, after line 2, insert the following:

"NEW SECTION. Sec. 405. (1) The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.

(2) If the people ratify this act as specified under subsection (1) of this section, revenues generated shall be spent as detailed in Senate Bill No. 6091, as enacted by the legislature.

(3) Pursuant to RCW 29A.72.050, the statement of subject on the ballot title shall read: "The legislature has passed Senate Bill No. 6103, financing transportation improvements through transportation taxes and fees." The concise description on the ballot title shall read: "This bill would improve highway capacity, bridges, public transportation, and passenger and freight rail, through increased fuel excise taxes, weight fees on passenger vehicles, fees on motor homes, and vehicle and driver licensing fees."

NEW SECTION. Sec. 406. If this act is not ratified by the voters by November 15, 2005, this act is null and void in its entirety.

NEW SECTION. Sec. 407. Section 405 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

Renumber the sections consecutively and correct any internal references accordingly.

                                                                                                                           On page 44, beginning on line 20 of the title amendment, after “and,” strike all material through “emergency” and insert “providing for submission of certain sections of this act to a vote of the people”

                                                                                                                           Senator Benton spoke in favor of adoption of the amendment to the striking amendment.

                                                                                                                           Senator Sheldon spoke against adoption of the amendment to the striking amendment.

                                                                                                                           Senator Benton demanded a roll call.

                                                                                                                           The President declared that one-sixth of the members supported the demand and the demand was sustained.

The President declared the question before the Senate to be the adoption of the amendment by Senator Benton and others on page 1, line 13 to the striking amendment to Substitute Senate Bill No. 6103.

ROLL CALL

                                                                                                                           The Secretary called the roll on the adoption of the amendment by Senator Benton and others to the striking amendment and the amendment was not adopted by the following vote: Yeas, 15; Nays, 33; Absent, 0; Excused, 1.

                                                                                                                           Voting yea: Senators Benson, Benton, Brandland, Carrell, Delvin, Esser, Hewitt, Honeyford, Morton, Parlette, Pflug, Roach, Schoesler, Stevens and Zarelli - 15

                                                                                                                           Voting nay: Senators Berkey, Brown, Deccio, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Mulliken, Oke, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Schmidt, Sheldon, Shin, Spanel, Swecker, Thibaudeau and Weinstein - 33

                                                                                                                           Excused: Senator McCaslin – 1

MOTION

Senator Swecker moved that the following amendment by Senator Swecker to the striking amendment be adopted.

                                                                                                                           On page 7, line 22, after "agencies" insert "overseen"

                                                                                                                           On page 8, line 13, after "agencies.", insert "The state auditor shall contract with private firms to conduct the performance audits."

                                                                                                                           On page 8, line 14, after "(8)" strike everything through "auditors." on line 16.

                                                                                                                           Renumber the sections consecutively and correct any internal references accordingly.

                                                                                                                           Senators Swecker and Haugen spoke in favor of adoption of the amendment to the striking amendment.

POINT OF INQUIRY

Senator Roach: “Would Senator Haugen yield to a question? Thank you, Senator. Could you tell me what kind of funding we have in the bill for this? That was a matter of discussion in our caucus and had previously been debated. I wonder if you could tell us?”

Senator Haugen: “At this time it’s one million dollars. I do think there’s an amendment coming up.”

Senator Roach: “Would that amendment increase the number?”

Senator Haugen: “That would increase the number.”

                                                                                                                           Senator Roach: “Possibly to three?”

                                                                                                                           Senator Haugen: “Probably higher.”

                                                                                                                           Senator Roach: “Maybe five?”

                                                                                                                           Senator Haugen: “I doubt that.”

                                                                                                                           Senator Roach: “Maybe four? How about two?”

Senator Rockefeller spoke against adoption of the amendment to the striking amendment.

Senator Finkbeiner spoke in favor of adoption of the amendment to the striking amendment.

The President declared the question before the Senate to be the adoption of the amendment by Senator Swecker on page 7, line 22 to the striking amendment to Substitute Senate Bill No. 6103.

The motion by Senator Swecker carried and the amendment to the striking amendment was adopted by voice vote.

MOTION

Senator Zarelli moved that the following amendment by Senator Zarelli to the striking amendment be adopted.

On page 10, at the beginning of line 16 of the amendment, after "of" strike "$1,000,000" and insert "$4,000,000"

Senators Zarelli, Jacobsen, Finkbeiner, Roach and Deccio spoke in favor of adoption of the amendment to the striking amendment.

Senators Spanel, Haugen and Brown spoke against adoption of the amendment to the striking amendment.

The President declared the question before the Senate to be the adoption of the amendment by Senator Zarelli on page 10, line 16 to the striking amendment to Substitute Senate Bill No. 6103.

The motion by Senator Zarelli carried and the amendment to the striking amendment was adopted by voice vote.

MOTION

Senator Hewitt moved that the following amendment by Senator Hewitt to the striking amendment be adopted.

On page 23, after line 19 of the amendment, insert the following:

"(3) In lieu of the gross weight fee under subsection (1) of this section, farm vehicles may be licensed upon payment of the fee in effect under subsection (1) of this section on May 1, 2005. In order to qualify for the reduced fee under this subsection, the farm vehicle must be exempt from property taxes in accordance with RCW 84.36.630. The applicant must submit copies of the forms required under RCW 84.36.630. The application for the reduced fee under this subsection shall require the applicant to attest that the vehicle shall be used primarily for farming purposes. The department shall provide licensing agents and subagents with a schedule of the appropriate licensing fees for farm vehicles.

Renumber the sections consecutively and correct any internal references accordingly.

Senators Hewitt and Haugen spoke in favor of adoption of the amendment to the striking amendment.

The President declared the question before the Senate to be the adoption of the amendment by Senator Hewitt on page 23, after line 19 to the striking amendment to Substitute Senate Bill No. 6103.

The motion by Senator Hewitt carried and the amendment to the striking amendment was adopted by voice vote.

MOTION

Senator Benton moved that the following amendment by Senator Benton and others to the striking amendment be adopted.

On page 44, beginning on line 3 of the amendment, strike all of section 405

                                                                                                                           Renumber the sections consecutively and correct any internal references accordingly.

                                                                                                                           On page 44, on line 20 of the title amendment, after "dates;", insert "and"

                                                                                                                           On page 44, on line 20 of the title amendment, after "date" strike all material through emergency

                                                                                                                           Senators Benton, Stevens, Benson, Esser, Roach and Brandland spoke in favor of adoption of the amendment to the striking amendment.

                                                                                                                           Senators Sheldon, Jacobsen, Rockefeller, Fraser, Poulsen, Haugen, Oke and Mulliken spoke against adoption of the amendment to the striking amendment.

                                                                                                                           Senator Benton demanded a roll call.

                                                                                                                           The President declared that one-sixth of the members supported the demand and the demand was sustained.

The President declared the question before the Senate to be the adoption of the amendment by Senator Benton and others on page 44, line 3 to the striking amendment to Substitute Senate Bill No. 6103.

ROLL CALL

                                                                                                                           The Secretary called the roll on the adoption of the amendment by Senator Benton to the striking amendment and the amendment was not adopted by the following vote: Yeas, 18; Nays, 30; Absent, 0; Excused, 1.

                                                                                                                           Voting yea: Senators Benson, Benton, Brandland, Carrell, Delvin, Esser, Finkbeiner, Hewitt, Honeyford, Johnson, Morton, Parlette, Pflug, Roach, Schmidt, Schoesler, Stevens and Zarelli - 18

                                                                                                                           Voting nay: Senators Berkey, Brown, Deccio, Doumit, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Mulliken, Oke, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Sheldon, Shin, Spanel, Swecker, Thibaudeau and Weinstein - 30

                                                                                                                           Excused: Senator McCaslin - 1

                                                                                                                           The President declared the question before the Senate to be the adoption of the striking amendment by Senator Haugen as amended to Substitute Senate Bill No. 6103.

                                                                                                                           The motion by Senator Haugen carried and the striking amendment as amended was adopted by voice vote.

MOTION

                                                                                                                           There being no objection, the following title amendment was adopted:

                                                                                                                           On page 1, line 1 of the title, after "revenue;" strike the remainder of the title and insert "amending RCW 82.36.025, 82.38.030, 46.68.090, 46.68.110, 82.38.035, 82.38.045, 43.84.092, 46.68.035, 46.16.237, 46.16.270, 46.20.055, 46.20.070, 46.20.117, 46.20.120, 46.20.311, 46.20.049, and 43.135.045; reenacting and amending RCW 43.84.092, 46.16.070, and 46.20.308; adding new sections to chapter 46.68 RCW; adding new sections to chapter 46.16 RCW; adding a new chapter to Title 46 RCW; creating new sections; making an appropriation; providing effective dates; providing an expiration date; and declaring an emergency."

MOTION

                                                                                                                           On motion of Senator Haugen, the rules were suspended, Engrossed Substitute Senate Bill No. 6103 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

Senators Schmidt, Swecker, Kohl-Welles, Shin, Fairley, Mulliken, Kline and Haugen spoke in favor of passage of the bill.

Senators Hargrove, Honeyford, Pflug and Schoesler spoke against passage of the bill.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6103.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6103 and the bill passed the Senate by the following vote: Yeas, 26; Nays, 22; Absent, 0; Excused, 1.

Voting yea: Senators Berkey, Brown, Deccio, Doumit, Fairley, Finkbeiner, Fraser, Haugen, Hewitt, Jacobsen, Keiser, Kline, Kohl-Welles, Mulliken, Poulsen, Prentice, Pridemore, Rasmussen, Rockefeller, Schmidt, Shin, Spanel, Swecker, Thibaudeau, Weinstein and Zarelli - 26

Voting nay: Senators Benson, Benton, Brandland, Carrell, Delvin, Eide, Esser, Franklin, Hargrove, Honeyford, Johnson, Kastama, McAuliffe, Morton, Oke, Parlette, Pflug, Regala, Roach, Schoesler, Sheldon and Stevens - 22

Excused: Senator McCaslin - 1

ENGROSSED SUBSTITUTE SENATE BILL NO. 6103, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Eide, Engrossed Substitute Senate Bill No. 6103 was immediately transmitted to the House of Representatives.

MOTION

On motion of Senator Honeyford, Senator Parlette was excused.

PERSONAL PRIVILEGE

Senator Jacobsen: “I want to apologize to the body and to the Senator from the Seventeenth District for using personal names in here. I understand that the wisdom of not doing that was so that we didn’t come passionately involved in an issue and after one issue was done we can move on to another. That we discuss issues and not people. My profound apology.”

EDITOR’S NOTE: Senate Rule 29 and Reed’s Rule 212 limit the use of senators’ names and require members to address the President during debate.

SECOND READING

SENATE BILL NO. 6091, by Senators Haugen and Swecker

Making 2005-07 transportation appropriations. Revised for 1st Substitute: Making 2005-07 and 2003-05 transportation appropriations.

MOTION

On motion of Senator Haugen, Substitute Senate Bill No. 6091 was substituted for Senate Bill No. 6091 and the substitute bill was placed on the second reading and read the second time.

MOTION

                                                                                                                           Senator Haugen moved that the following striking amendment by Senator Haugen be adopted:

                                                                                                                           Strike everything after the enacting clause and insert the following:

"2005-07 BIENNIUM

                                                                                                                           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, 2007.

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

                                                                                                                           (a) "Fiscal year 2006" or "FY 2006" means the fiscal year ending June 30, 2006.

                                                                                                                           (b) "Fiscal year 2007" or "FY 2007" means the fiscal year ending June 30, 2007.

                                                                                                                           (c) "FTE" means full-time equivalent.

                                                                                                                           (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.

                                                                                                                           (f) "Reappropriation" means appropriation and, unless the context clearly provides otherwise, is subject to the relevant conditions and limitations applicable to appropriations.

                                                                                                                           (g) "LEAP" means the legislative evaluation and accountability program committee.

GENERAL GOVERNMENT AGENCIES--OPERATING

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

Grade Crossing Protective Account--State Appropriation$501,000

                                                                                                                        NEW SECTION. Sec. 102. FOR THE MARINE EMPLOYEES COMMISSION

Puget Sound Ferry Operations Account--State

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $383,000

                                                                                                                        The appropriation in this section is subject to the following conditions and limitations: To address its growing caseload, the marine employees commission shall develop a plan for prioritizing cases to schedule for hearings. The commission shall report back to the transportation committees of the legislature on its case prioritization plan by December 15, 2005.

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

Motor Vehicle Account--State Appropriation. . . . . . . . . .$976,000

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

                                                                                                                        (1) The entire appropriation in this section is provided solely for road maintenance purposes.

                                                                                                                        (2) The commission shall conduct a study of existing requirements regarding all-terrain vehicle (ATV) operators and submit recommendations to the legislature concerning whether revisions to those requirements are warranted. The study and recommendations shall, at a minimum, include (a) the feasibility of requiring a comprehensive hands-on ATV safety education and training program for ATV operators; (b) ATV operator equipment requirements; and (c) ATV operating requirements, including the adoption of minimum age requirements corresponding to different engine capacities of ATVs. The commission shall consult with the department of licensing and other stakeholders when conducting the study and developing recommendations and shall submit a final report to the transportation committees of the legislature by December 1, 2005.

                                                                                                                        NEW SECTION. Sec. 104. FOR THE DEPARTMENT OF AGRICULTURE

Motor Vehicle Account--State Appropriation. . . . . . . . . .$371,000

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

(1) $323,000 of the motor vehicle account--state appropriation is provided solely for costs associated with the motor fuel quality program.

(2) The department of agriculture shall make an adhesive label explaining that Washington state gas taxes are for highway purposes only. The label must be in a large, easily readable font and must read "Washington state gas taxes are used exclusively for highway purposes." The label should be chemical and weather resistant and must be placed in a conspicuous location at motor fuel retailers, as defined under RCW 19.120.010, by December 31, 2005. $48,000 of the motor vehicle account--state appropriation is provided solely for this purpose.

NEW SECTION. Sec. 105. FOR THE DEPARTMENT OF ARCHEOLOGY AND HISTORIC PRESERVATION

Motor Vehicle Account--State Appropriation. . . . . . . . . .$200,000

The appropriation in this section is subject to the following conditions and limitations: If Second Substitute Senate Bill No. 5056 is not enacted by June 30, 2005, the entire appropriation shall lapse.

GENERAL GOVERNMENT AGENCIES--CAPITAL

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

Motor Vehicle Account--State Appropriation. . . . . . . . $3,756,000

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

(1) $3,656,000 of the appropriation is provided for repair and renovation of Mt. Spokane roadway.

(2) $100,000 of the appropriation is provided solely for road work on state route 20 at Deception Pass state park.

TRANSPORTATION AGENCIES--OPERATING

NEW SECTION. Sec. 201. FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION

Highway Safety Account--State Appropriation. . . . . . . $2,111,000

Highway Safety Account--Federal Appropriation. . . . $15,760,000

School Zone Safety Account--State Appropriation. . . . $3,300,000

Bicycle and Pedestrian Safety Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000

TOTAL APPROPRIATION. . . . . . . . . . . . $21,211,000

The appropriations in this section are subject to the following conditions and limitations: The Washington traffic safety commission shall contract with the Washington state institute for public policy to conduct a study of the impact of state programs concerning the reduction of DUI recidivism. The study must include, on a prioritized basis to the extent federal funds are made available for the study, the following components: (1) The state's existing deferred prosecution program; (2) the state's vehicle impound program; and (3) other states' programs that restrict a person's access to the vehicle, or suspend the vehicle license and registration, upon arrest or conviction.

The completed study must be submitted to the appropriate legislative committees by December 1, 2006.

NEW SECTION. Sec. 202. FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account--State Appropriation. . . . . .$775,000

Motor Vehicle Account--State Appropriation. . . . . . . . $1,905,000

County Arterial Preservation Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $728,000

TOTAL APPROPRIATION. . . . . . . . . . . . .$3,408,000

NEW SECTION. Sec. 203. FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State Appropriation. . . .$1,520,000

Transportation Improvement Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,521,000

TOTAL APPROPRIATION. . . . . . . . . . . . .$3,041,000

                                                                                                                        NEW SECTION. Sec. 204. FOR THE BOARD OF PILOTAGE COMMISSIONERS

Pilotage Account--State Appropriation. . . . . . . . . . . . . . .$411,000

                                                                                                                        NEW SECTION. Sec. 205. FOR THE JOINT TRANSPORTATION COMMITTEE

Motor Vehicle Account--State Appropriation. . . . . . . . $1,400,000

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

                                                                                                                        (1) The joint transportation committee shall conduct a review of state level governance of transportation, with a focus on the appropriate roles of the separate branches of government. The committee shall review the statutory duties, roles, and functions of the transportation commission and the department. In that review the committee shall determine which responsibilities may be transferred to the executive and which may be transferred to the legislature. By December 15, 2005, the joint transportation committee shall make its recommendations to the house of representatives and senate transportation committees. The joint transportation committee shall consult with affected agencies and other stakeholders in conducting its analysis. The committee may consult with and retain private professional and technical experts as necessary to ensure an independent review and analysis.

                                                                                                                        (2) The joint transportation committee shall conduct a study regarding the feasibility of a statewide uniform motor vehicle excise tax (MVET) depreciation schedule. In addition to committee members, the participants in the study must include at a minimum the following individuals: (a) A representative of a regional transit authority (Sound Transit); (b) a representative of a regional transportation planning organization; (c) the secretary of transportation, or his or her designee; (d) a representative of the attorney general's office; (e) a representative of the department of licensing; and (f) a representative of the financial community. The purpose of the study is to develop an MVET depreciation schedule that more accurately reflects vehicle value but does not hinder outstanding contractual obligations.

                                                                                                                        NEW SECTION. Sec. 206. FOR THE TRANSPORTATION COMMISSION

Motor Vehicle Account--State Appropriation. . . . . . . . $5,208,000

Multimodal Transportation Account--State

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,000,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . . $6,208,000

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

                                                                                                                        (1) $1,500,000 of the motor vehicle account--state appropriation is provided solely for the completion of a comprehensive statewide tolling feasibility study.

                                                                                                                        (2) $1,600,000 of the motor vehicle account--state appropriation is provided solely for the transportation performance audit board. Within this amount, the transportation performance audit board shall conduct a study and make recommendations to the legislature regarding modifying RCW 47.01.012, state transportation goals and benchmarks. In conducting the study, the board shall consider at a minimum: Original recommendations of the Blue Ribbon Commission on Transportation; the current policy goals and benchmark categories; the goals outlined in Substitute House Bill No. 1969; the recent work related to benchmarks completed by the transportation commission and the Washington state department of transportation; the measures review completed by TPAB; and best practices.

                                                                                                                        The board shall submit study results, including any legislative recommendations, to the transportation committees of the legislature by January 1, 2006.

                                                                                                                        (3) $1,000,000 of the multimodal account--state appropriation is provided solely for an extensive statewide rail capacity and needs study to refine both rail freight and rail passenger infrastructure needs. Within this amount, the commission, in conjunction with the department, shall also conduct a study of state-owned rail asset management, planning, and governance.

                                                                                                                        NEW SECTION. Sec. 207. FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Motor Vehicle Account--State Appropriation. . . . . . . . . .$655,000

NEW SECTION. Sec. 208. FOR THE WASHINGTON STATE PATROL--FIELD OPERATIONS BUREAU

State Patrol Highway Account--State Appropriation.$193,716,000

State Patrol Highway Account--Federal Appropriation$10,398,000

State Patrol Highway Account--Private/Local Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $158,000

TOTAL APPROPRIATION. . . . . . . . . . .$204,272,000

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

(1) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies may use state patrol vehicles for the purpose of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol shall be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol. The patrol shall report to the house of representatives and senate transportation committees by December 31, 2005, on the use of agency vehicles by officers engaging in the off-duty employment specified in this subsection. The report shall include an analysis that compares cost reimbursement and cost-impacts, including increased vehicle mileage, maintenance costs, and indirect impacts, associated with the private use of patrol vehicles.

(2) In addition to the user fees, the patrol shall transfer into the state patrol nonappropriated airplane revolving account under RCW 43.79.470 no more than the amount of appropriated state patrol highway account and general fund funding necessary to cover the costs for the patrol's use of the aircraft. The state patrol highway account and general fund--state funds shall be transferred proportionately in accordance with a cost allocation that differentiates between highway traffic enforcement services and general policing purposes.

(3) The patrol shall not account for or record locally provided DUI cost reimbursement payments as expenditure credits to the state patrol highway account. The patrol shall report the amount of expected locally provided DUI cost reimbursements to the transportation committees of the senate and house of representatives by December 31st of each year.

(4) The state patrol highway account--state appropriation for DUI reimbursements shall only be spent for pursuit vehicle video cameras, datamaster DUI testing equipment, tire deflator equipment, and taser guns. The Washington state patrol prior to the issuance of any taser guns will train the troopers on using the equipment. The agency will provide a report to the transportation committees of the senate and house of representatives by December 31st of each year on the occurrences where the taser guns were utilized along with any issues that have been identified.

(5) $29,000 of the state patrol highway account--state appropriation is provided solely for the implementation of House Bill No. 1469. If House Bill No. 1469 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

(6) $5,580,000 of the total appropriation is provided solely for a 3.8% salary increase for commissioned officers effective July 1, 2005, in addition to any other salary increases provided for in this act.

NEW SECTION. Sec. 209. FOR THE WASHINGTON STATE PATROL--TECHNICAL SERVICES BUREAU

State Patrol Highway Account--State Appropriation. .$80,371,000

State Patrol Highway Account--Private/Local

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,994,000

TOTAL APPROPRIATION. . . . . . . . . . . . $82,365,000

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

(1) $247,000 of the state patrol highway account--state appropriation is provided solely for the implementation of Second Substitute House Bill No. 1188. If Second Substitute House Bill No. 1188 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        (2) The Washington state patrol is instructed to work with the risk management division in the office of financial management in compiling the state patrol data for establishing the agency's risk management insurance premiums to the tort claims account. The office of financial management and the Washington state patrol shall submit a report to the transportation committees of the senate and house of representatives by December 31st of each year on the number of claims, estimated claims to be paid, method of calculation, and the adjustment in the premium.

                                                                                                                        (3) $6,228,000 of the total appropriation is provided solely for automobile fuel in the 2005-2007 biennium.

                                                                                                                        (4) $8,678,000 of the total appropriation is provided solely for the purchase of pursuit vehicles.

                                                                                                                        (5) $5,254,000 of the total appropriation is provided solely for vehicle repair and maintenance costs of vehicles used for highway purposes.

                                                                                                                        (6) $384,000 of the total appropriation is provided solely for the purchase of mission vehicles used for highway purposes in the commercial vehicle and traffic investigation sections of the patrol.

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

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

Motorcycle Safety Education Account--State Appropriation$92,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . . .$79,000

Highway Safety Account--State Appropriation. . . . . . . $9,973,000

Motor Vehicle Account--State Appropriation. . . . . . . . $7,954,000

DOL Services Account--State Appropriation. . . . . . . . . . . $84,000

Biometric Security Account--State Appropriation. . . . . . . $57,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $18,242,000

                                                                                                                        The appropriations in this section are subject to the following conditions and limitations: $1,134,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6103. If Senate Bill No. 6103 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF LICENSING--INFORMATION SERVICES

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

Motorcycle Safety Education Account--State Appropriation$35,000

Wildlife Account--State Appropriation. . . . . . . . . . . . . . .$101,000

Highway Safety Account--State Appropriation. . . . . . $20,276,000

Motor Vehicle Account--State Appropriation. . . . . . . $12,009,000

Motor Vehicle Account--Private/Local Appropriation. . .$500,000

DOL Services Account--State Appropriation. . . . . . . . .$7,809,000

Biometric Security Account--State Appropriation. . . . . . $728,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $41,460,000

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

                                                                                                                        (1) The department shall submit a report to the transportation committees of the legislature, detailing the progress made in transitioning off of the HP3000 system, by December 30, 2005, and each December 1st thereafter until the project is fully completed.

                                                                                                                        (2) $357,000 of the motor vehicle account--state appropriation is provided solely for the implementation of all special license plate bills introduced during the 2005 legislative session and approved by the special license plate review board. The amount provided in this subsection shall be reduced accordingly for any of those bills that are not enacted by June 30, 2005.

                                                                                                                        (3) $58,000 of the state wildlife account--state appropriation is provided solely for the implementation of Substitute Senate Bill No. 5423. If Substitute Senate Bill No. 5423 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        (4) $145,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6103. If Senate Bill No. 6103 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF LICENSING--VEHICLE SERVICES

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

Wildlife Account--State Appropriation. . . . . . . . . . . . . . .$614,000

Motor Vehicle Account--State Appropriation. . . . . . . $49,484,000

Motor Vehicle Account--Private/Local Appropriation. . .$872,000

DOL Services Account--State Appropriation. . . . . . . . .$1,146,000

TOTAL APPROPRIATION. . . . . . . . . . . . $52,142,000

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

(1) $247,000 of the motor vehicle account--state appropriation is provided solely for the implementation of all special license plate bills introduced during the 2005 legislative session and approved by the special license plate review board. The amount provided in this subsection shall be reduced accordingly for any of those bills that are not enacted by June 30, 2005.

(2) $11,000 of the wildlife account--state appropriation is provided solely for the implementation of Engrossed Senate Bill No. 5423. If Engrossed Senate Bill No. 5423 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

(3) $11,000 of the highway safety account--state appropriation is provided solely for the implementation of Engrossed Substitute Senate Bill No. 5513. If Engrossed Substitute Senate Bill No. 5513 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse

(4) $404,000 of the motor vehicle account--state appropriation is provided solely for the implementation of Senate Bill No. 6103. If Senate Bill No. 6103 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF LICENSING--DRIVER SERVICES

Motorcycle Safety Education Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,998,000

Highway Safety Account--State Appropriation. . . . . . $82,970,000

Biometric Security Account--State Appropriation. . . . .$1,523,000

TOTAL APPROPRIATION. . . . . . . . . . . . $87,491,000

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

(1) $970,000 of the highway safety account--state appropriation is provided solely for the commercial driver license program. The department shall informally report to the transportation committees of the legislature on the progress made in addressing federal audit findings and in implementing the federal motor carrier safety improvement act. Reports shall be made by the following dates: November 1, 2005, and each November 1st thereafter.

(2) $412,000 of the motorcycle safety and education account--state appropriation is provided solely for the department's motorcycle safety program. The department shall informally report to the transportation committees of the legislature detailing the progress made in implementing national highway traffic safety assessment guidelines. Reports shall be made by the following dates: November 1, 2005, and each November 1st thereafter.

(3) The department of licensing, in consultation with the department of transportation and other stakeholders, shall draft legislation to bring the state into compliance with any federal legislation or rules enacted relative to identification necessary for persons crossing international borders. The department shall report to the transportation committees of the legislature by December 1, 2005, on the recommended legislation for bringing the state into compliance with federal requirements.

NEW SECTION. Sec. 214. FOR THE DEPARTMENT OF TRANSPORTATION-- TOLL OPERATIONS AND MAINTENANCE--PROGRAM B

Tacoma Narrows Toll Bridge Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,543,000

NEW SECTION. Sec. 215. FOR THE DEPARTMENT OF TRANSPORTATION--INFORMATION TECHNOLOGY--PROGRAM C

Motor Vehicle Account--State Appropriation. . . . . . . $54,659,000

Motor Vehicle Account--Federal Appropriation. . . . . . $1,964,000

Puget Sound Ferry Operations Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$8,362,000

Multimodal Transportation Account--State Appropriation$363,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $65,348,000

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

                                                                                                                        (1) $850,000 of the motor vehicle account--state appropriation is provided for the continued maintenance and support of the transportation executive information system (TEIS). The TEIS shall be enhanced during the 2005 legislative interim to shift towards a monitoring and reporting system capable of tracking and reporting on major project milestones and measurements. The department shall work with the legislature to identify and define meaningful milestones and measures to be used in monitoring the scope, schedule, and cost of projects.

                                                                                                                        (2) $350,000 of the motor vehicle account--state appropriation is provided solely for a financial and capital project system needs assessment for future automation development and enhancements. The completed assessment will identify options and shall be presented to the transportation committees of the senate and the house of representatives by December 31, 2005.

                                                                                                                        NEW SECTION. Sec. 216. FOR THE DEPARTMENT OF TRANSPORTATION--FACILITY MAINTENANCE, OPERATIONS AND CONSTRUCTION--PROGRAM D--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . $32,743,000

                                                                                                                        NEW SECTION. Sec. 217. FOR THE DEPARTMENT OF TRANSPORTATION--AVIATION--PROGRAM F

Aeronautics Account--State Appropriation. . . . . . . . . . $5,578,000

Aeronautics Account--Federal Appropriation. . . . . . . . $2,150,000

Aircraft Search and Rescue Safety and

                                                                                                                         Education Account--State Appropriation. . . . . . . . . . . $262,000

Multimodal Transportation Account--State Appropriation$100,000

Multimodal Transportation Account--Federal Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $900,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . . $8,990,000

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

                                                                                                                        (1)(a) $433,000 of the aeronautics account--state appropriation is provided solely for airport pavement projects. The department's aviation division shall complete a priority airport pavement project list by January 1, 2006, to be considered by the legislature in the 2006 supplemental budget. If Substitute Senate Bill No. 5414 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        (b) The entire aircraft search and rescue safety and education account appropriation shall lapse if Substitute Senate Bill No. 5414 is enacted by June 30, 2005.

                                                                                                                        (c) If Substitute Senate Bill No. 5414 is enacted by July 1, 2005, then the remaining unexpended fund balance in the aircraft search and rescue, safety, and education account shall be deposited into the state aeronautics account.

                                                                                                                        (2) The entire multimodal transportation account--state and federal appropriations are provided solely for implementing Engrossed Substitute Senate Bill No. 5121. If Engrossed Substitute Senate Bill No. 5121 is not enacted by June 30, 2005, or if federal funds are not received by March 1, 2006, for the purpose of implementing Engrossed Substitute Senate Bill No. 5121, the amount provided in this subsection shall lapse.

                                                                                                                        NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM DELIVERY MANAGEMENT AND SUPPORT--PROGRAM H

Motor Vehicle Account--State Appropriation. . . . . . . $47,656,000

Motor Vehicle Account--Federal Appropriation. . . . . . . .$500,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $48,156,000

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

                                                                                                                        (1) $300,000 of the motor vehicle account--state appropriation is provided to the department in accordance with RCW 46.68.110(2) and 46.68.120(3) and shall be used by the department solely for the purposes of providing contract services to the association of Washington cities and Washington state association of counties for (a) activities of the transportation permit efficiency and accountability committee, including pilot mitigation banking activities, and (b) other permit delivery efforts.

(2) $250,000 of the motor vehicle account--state appropriation is provided solely for supporting the Washington biodiversity council in the development of a framework for biodiversity conservation for Washington state.

(3) $1,475,000 of the motor vehicle account--state appropriation is provided solely for the staffing activities of the transportation permit efficiency and accountability committee.

NEW SECTION. Sec. 219. FOR THE DEPARTMENT OF TRANSPORTATION--ECONOMIC PARTNERSHIPS--PROGRAM K

Motor Vehicle Account--State Appropriation. . . . . . . . $1,025,000

NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF TRANSPORTATION--HIGHWAY MAINTENANCE--PROGRAM M

Motor Vehicle Account--State Appropriation. . . . . . $290,893,000

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

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

TOTAL APPROPRIATION. . . . . . . . . . .$296,572,000

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 must 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.

(4) Funding is provided for maintenance on the state system to allow for a continuation of the level of service targets included in the 2003-05 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.

(5) The department shall develop and implement a plan to improve work zone safety on a statewide basis. As part of the strategy included in the plan, the department shall fund equipment purchases using a portion of the money from the annual OTEF equipment purchasing and replacement process. The department shall also identify and evaluate statewide equipment needs (such as work zone safety equipment) and prioritize any such needs on a statewide basis. Substitute purchasing at the statewide level, when appropriate, shall be utilized to meet those identified needs. The department must report to the transportation committees of the legislature by December 1, 2005, on the plan, and by December 1, 2006, on the status of implementing the plan.

NEW SECTION. Sec. 221. FOR THE DEPARTMENT OF TRANSPORTATION--TRAFFIC OPERATIONS--PROGRAM Q--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . $41,234,000

Motor Vehicle Account--Federal Appropriation. . . . . . $2,050,000

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

TOTAL APPROPRIATION. . . . . . . . . . . . $43,409,000

                                                                                                                        The appropriations in this section are subject to the following conditions and limitations: $4,400,000 of the motor vehicle account-- state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis.

                                                                                                                        NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION MANAGEMENT AND SUPPORT--PROGRAM S

Motor Vehicle Account--State Appropriation. . . . . . . $24,718,000

Motor Vehicle Account--Federal Appropriation. . . . . . . . .$30,000

Puget Sound Ferry Operations Account--State

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,321,000

Multimodal Transportation Account--State Appropriation$973,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $27,042,000

                                                                                                                        NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF TRANSPORTATION--TRANSPORTATION PLANNING, DATA, AND RESEARCH--PROGRAM T

Motor Vehicle Account--State Appropriation. . . . . . . $20,703,000

Motor Vehicle Account--Federal Appropriation. . . . . $16,450,000

Multimodal Transportation Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,244,000

Multimodal Transportation Account--Federal

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,800,000

Multimodal Transportation Account--Private/Local

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $100,000

Highway Safety Fund--State Appropriation. . . . . . . . . . . $175,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $41,472,000

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

                                                                                                                        (1) In order to qualify for state planning funds available to regional transportation planning organizations under this section, a regional transportation planning organization containing any county with a population in excess of one million shall provide voting membership on its executive board to any incorporated principal city of a metropolitan statistical area within the region, as designated by the United States census bureau, and to any incorporated city within the region with a population in excess of eighty thousand as of July 1, 2005. Additionally, a regional transportation planning organization described under this subsection shall conduct a review of its executive board membership criteria to ensure that the criteria appropriately reflects a true and comprehensive representation of the organization's jurisdictions of significance within the region.

                                                                                                                        (2) $2,000,000 of the motor vehicle account--state appropriation is provided solely for the costs of the regional transportation investment district (RTID) election and department of transportation project oversight. These funds are provided as a loan to the RTID and shall be repaid to the state motor vehicle account within one year following the certification of the election results related to the RTID.

                                                                                                                        (3) $175,000 of the highway safety account--state appropriation shall be used by the department to support the processing and analysis of the backlog of city and county collision reports by January, 2006. The amount provided in this subsection shall lapse if federal funds become available for this purpose.

                                                                                                                        (4) $150,000 of the multimodal transportation account--state appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 1565. If Engrossed Second Substitute House Bill No. 1565 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        (5) The department of transportation shall evaluate the number of spaces available for long-haul truck parking relative to current and projected future needs. The department of transportation shall also explore options for augmenting the number of spaces available, including, but not limited to, expanding state-owned rest areas or modifying regulations governing the use of these facilities, utilizing weigh stations and park and ride lots, and encouraging the expansion of the private sector's role. Finally, the department shall explore the utility of coordinating with neighboring states on long-haul truck parking and evaluate methodologies for alleviating any air quality issues relative to the issue. The department must report to the transportation committees of the legislature by December 1, 2005, on the options, strategies, and recommendations for long-haul truck parking.

NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF TRANSPORTATION--CHARGES FROM OTHER AGENCIES--PROGRAM U

Motor Vehicle Account--State Appropriation. . . . . . . $44,101,000

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

TOTAL APPROPRIATION. . . . . . . . . . . . $44,501,000

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

(1) $31,749,000 of the motor vehicle fund--state appropriation is provided solely for the liabilities attributable to the department of transportation. 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. . . . . . . $1,667,000

(b) FOR PAYMENT OF COSTS OF THE OFFICE OF THE STATE

AUDITOR. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,017,000

(c) FOR PAYMENT OF COSTS OF DEPARTMENT OF GENERAL

ADMINISTRATION FACILITIES AND SERVICES AND CONSOLIDATED

MAIL SERVICES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,049,000

(d) FOR PAYMENT OF COSTS OF THE DEPARTMENT OF

PERSONNEL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,643,000

(e) FOR PAYMENT OF SELF-INSURANCE LIABILITY

PREMIUMS AND ADMINISTRATION. . . . . . . . . . $31,749,000

(f) FOR PAYMENT OF THE DEPARTMENT OF GENERAL

ADMINISTRATION CAPITAL PROJECTS SURCHARGE

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,717,000

(g) FOR ARCHIVES AND RECORDS MANAGEMENT

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $545,000

(h) FOR OFFICE OF MINORITIES AND WOMEN BUSINESS

ENTERPRISES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,114,000

NEW SECTION. Sec. 225. FOR THE DEPARTMENT OF TRANSPORTATION--PUBLIC TRANSPORTATION--PROGRAM V

Multimodal Transportation Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$65,060,000

Multimodal Transportation Account--Federal

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,574,000

Multimodal Transportation Account--Private/Local

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $155,000

TOTAL APPROPRIATION. . . . . . . . . . . . $67,789,000

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

(1) $25,000,000 of the multimodal transportation account--state appropriation is provided solely for a grant program for special needs transportation provided by transit agencies and nonprofit providers of transportation.

(a) $5,500,000 of the amount provided in this subsection is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers shall 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.

(b) $19,500,000 of the amount provided in this subsection is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies shall be prorated based on the amount expended for demand response service and route deviated service in calendar year 2003 as reported in the "Summary of Public Transportation - 2003" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions. The first $450,000 provided to King county shall be used as follows:

                                                                                                                        (i) $320,000 shall be used to provide electric buses, instead of diesel buses, for service on Capital Hill in Seattle, Washington through June 30, 2007;

                                                                                                                        (ii) $130,000 shall be used to provide training for blind individuals traveling through Rainier Valley and the greater Seattle area. The training is to include destination training and retraining due to the expected closure of the downtown bus tunnel and training on how to use the Sound Transit light rail system.

                                                                                                                        (2) Funds are provided for the rural mobility grant program as follows:

                                                                                                                        (a) $7,000,000 of the multimodal transportation account--state appropriation is provided solely for grants for those transit systems serving small cities and rural areas as identified in the Summary of Public Transportation - 2003 published by the department of transportation. Noncompetitive grants must be distributed to the transit systems serving small cities and rural areas in a manner similar to past disparity equalization programs.

                                                                                                                        (b) $7,000,000 of the multimodal transportation account--state appropriation is provided solely to providers of rural mobility service in areas not served or underserved by transit agencies through a competitive grant process.

                                                                                                                        (3) $5,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; no operating costs for public transit agencies are eligible for funding under this grant program. No additional employees may be hired for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. Additional criteria for selecting grants must include leveraging funds other than state funds.

                                                                                                                        (4) $3,000,000 of the multimodal transportation account--state appropriation is provided solely for the city of Seattle for the Seattle streetcar project on South Lake Union. Should the city receive any state funds for this purpose during the 2003-05 biennium, the amount provided in this subsection must be reduced accordingly.

                                                                                                                        (5) $1,200,000 of the multimodal transportation account--state appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 2124. If Engrossed Substitute House Bill No. 2124 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

                                                                                                                        (6) Pursuant to the grant program established in Engrossed Substitute House Bill No. 2124, the department shall issue a call for projects and/or service proposals. Applications must be received by the department by November 1, 2005, and November 1, 2006. The department must submit a prioritized list for funding to the transportation committees of the legislature that reflects the department's recommendation, as well as, a list of all project or service proposals received.

                                                                                                                        (7) $2,000,000 of the multimodal transportation account--state appropriation is provided solely for new tri-county connection service for Island, Skagit, and Whatcom transit agencies.

                                                                                                                        (8) $500,000 of the multimodal transportation account--state appropriation is provided solely for a competitive grant program for commute trip reduction performance grants related to utilizing telework to reduce commute trips.

                                                                                                                        (9) $2,000,000 of the multimodal transportation account--state appropriation is provided solely to King county as a state match to obtain federal funding for a car sharing program for persons meeting certain income or employment criteria.

(10) $2,500,000 of the multimodal transportation account--state appropriation is provided solely for competitive grants for a county or other local governmental entity to provide commuter rail transit services. The department may contract with the same grantee for a period of no more than three years. The grants shall be made available for local governmental entities to provide operational or capital support for start-up costs associated with interjurisdictional commuter rail service.

NEW SECTION. Sec. 226. FOR THE DEPARTMENT OF TRANSPORTATION--MARINE--PROGRAM X

Puget Sound Ferry Operations Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$344,680,000

Multimodal Transportation Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,660,000

TOTAL APPROPRIATION. . . . . . . . . . .$348,340,000

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

(1) $57,928,000 of the total appropriation is provided solely for auto ferry vessel operating fuel in the 2005-2007 biennium.

(2) The total appropriation provides for the compensation of ferry employees. The expenditures for compensation paid to ferry employees during the 2005-2007 biennium may not exceed $216,042,000, 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 $584.58 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2006 and $584.58 a month annualized per eligible marine employee multiplied by the number of eligible marine employees for fiscal year 2007, 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 2005-2007 biennium as provided under sections 501 through 505 of this act. 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, 2005, and thereafter, as established in sections 501 through 505 of this act.

(3) $1,116,000 of the Puget Sound ferry operations account--state appropriation is provided solely for ferry security operations necessary to comply with the ferry security plan submitted by the Washington state ferry system to the United States coast guard. The department shall track security costs and expenditures. Ferry security operations costs shall not be included as part of the operational costs that are used to calculate farebox recovery.

(4) The Washington state ferries must work with the department's information technology division to implement an electronic fare system, including the integration of the regional fare coordination system (smart card). Each December and June, semi-annual updates must 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.

(5) The Washington state ferries shall continue to provide service to Sidney, British Columbia.

(6) The department shall collect passenger ferry fares each way on the Bremerton/Seattle route.

(7) A maximum of the entire multimodal transportation account--state appropriation is provided solely for operating costs associated with the Vashon to Seattle passenger-only ferry for service through June 30, 2007. The amount provided in this subsection includes all related fuel costs.

                                                                                                                        NEW SECTION. Sec. 227. FOR THE DEPARTMENT OF TRANSPORTATION--RAIL--PROGRAM Y--OPERATING

Multimodal Transportation Account--State

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39,059,000

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

                                                                                                                        (1) $29,091,000 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) $5,500,000 of the multimodal transportation account--state appropriation is provided solely for a new round trip rail service between Seattle and Portland beginning July 1, 2005.

                                                                                                                        (3) No AMTRAK Cascade runs may be eliminated.

                                                                                                                        (4) $200,000 of the multimodal transportation account--state appropriation is provided solely for the produce railcar program. The department is encouraged to implement the produce railcar program by maximizing private investment.

                                                                                                                        NEW SECTION. Sec. 228. FOR THE DEPARTMENT OF TRANSPORTATION--LOCAL PROGRAMS--PROGRAM Z--OPERATING

Motor Vehicle Account--State Appropriation. . . . . . . . $7,232,000

Motor Vehicle Account--Federal Appropriation. . . . . . $2,539,000

Multimodal Transportation Account--State Appropriation$211,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . . $9,982,000

                                                                                                                        The appropriations in this section are subject to the following conditions and limitations: $211,000 of the motor vehicle account--state appropriation is provided in accordance with RCW 46.68.110(2) and 46.68.120(3) and $211,000 of the multimodal transportation account--state appropriation is provided solely for the state's contribution to county and city studies of flood hazards in association with interstate highways. First priority shall be given to threats along the I-5 corridor.

TRANSPORTATION AGENCIES--CAPITAL

                                                                                                                        NEW SECTION. Sec. 301. FOR THE WASHINGTON STATE PATROL

State Patrol Highway Account--State Appropriation. . .$2,801,000

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

                                                                                                                        (1) $1,535,000 of the appropriation is provided solely for the Shelton training academy domestic water and wastewater treatment project.

                                                                                                                        (2) $1,266,000 of the appropriation is provided solely for minor works projects.

                                                                                                                        (3) The Washington state patrol, through the director of fire protection, shall study and make recommendations to the legislature regarding the need for improvements and additions to the state fire training academy located at North Bend. The patrol may include in its recommendations information regarding capital improvements, additional staffing and salary requirements, and technology improvements. The study and recommendations shall be submitted to the legislature by December 1, 2005.

                                                                                                                        NEW SECTION. Sec. 302. FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account--State Appropriation. . . $67,933,000

Motor Vehicle Account--State Appropriation. . . . . . . . . .$355,000

County Arterial Preservation Account--State

                                                                                                                        Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $30,392,000

                                                                                                                                        TOTAL APPROPRIATION. . . . . . . . . . . $98,680,000

                                                                                                                        The appropriations in this section are subject to the following conditions and limitations: $355,000 of the motor vehicle account--state appropriation is provided for county ferries as set forth in RCW 47.56.725(4).

                                                                                                                        NEW SECTION. Sec. 303. FOR THE TRANSPORTATION IMPROVEMENT BOARD

Urban Arterial Trust Account--State Appropriation. . .$99,425,000

Small City Preservation and Sidewalk

                                                                                                                        Account--State Appropriation. . . . . . . . . . . . . . . . . . .$2,000,000

Transportation Improvement Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$103,601,000

TOTAL APPROPRIATION. . . . . . . . . . .$205,026,000

The appropriations in this section are subject to the following conditions and limitations: The transportation improvement account--state appropriation includes $14,143,000 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.

NEW SECTION. Sec. 304. FOR THE DEPARTMENT OF TRANSPORTATION--PROGRAM D (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)--CAPITAL

Motor Vehicle Account--State Appropriation. . . . . . . . $1,676,000

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

(1) $601,000 of the motor vehicle account--state appropriation is provided solely for the statewide administration.

(2) $632,000 of the motor vehicle account--state appropriation is provided solely for regional minor projects.

(3) $224,000 of the motor vehicle account--state appropriation is provided solely for designing the replacement of the existing outdated maintenance facility in Ephrata.

(4) $219,000 of the motor vehicle account--state appropriation is provided solely for the designing of the northwest regional maintenance complex in Seattle.

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

Transportation 2003 Account (Nickel Account)--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . $1,175,922,000

Motor Vehicle Account--State Appropriation. . . . . . . $68,603,000

Motor Vehicle Account--Federal Appropriation. . . . $229,010,000

Motor Vehicle Account--Private/Local Appropriation$31,897,000

Special Category C Account--State Appropriation. . . . $3,370,000

Tacoma Narrows Toll Bridge Account Appropriation$272,329,000

Transportation Partnership Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$542,597,000

TOTAL APPROPRIATION. . . . . . . . . $2,323,728,000

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

(1) The entire transportation 2003 account (nickel account) appropriation is provided solely for the projects and activities as listed by project, biennium, and amount in the 2005 Transportation Partnership Project List, "Highway Improvement Program (I)" section under the column heading "2003 (Nickel) Package" as transmitted to LEAP on April 20, 2005. However, limited transfers of allocations between projects may occur for those amounts listed for the 2005-07 biennium subject to conditions and limitations in section 603 of this act. Within the amount provided in this subsection, $500,000 of the transportation 2003 account (nickel account) appropriation is provided for right-of-way acquisition for the SR 502 widening from Battleground to I-5. The department must develop a right-of-way acquisition plan in conjunction with the city of Battleground that conforms with the city's comprehensive growth management plan.

(2) The entire 2005 transportation partnership--state appropriation is provided solely to implement the projects and activities as listed by project and amount in the 2005 Transportation Partnership Project List, "Highway Improvement Program (I)" section under the column heading "2005 Transportation Partnership Package" as transmitted to LEAP on April 20, 2005.

(a) Within the amounts provided in this subsection, $2,500,000 of the transportation partnership account--state appropriation is provided solely for Island Transit park and ride development.

(b) Within the amounts provided in this subsection, $4,000,000 of the transportation partnership account--state appropriation is provided solely for Skagit Transit for Chuckanut park and ride development.

(c) Within the amounts provided in this subsection, $5,000,000 of the transportation partnership account--state appropriation is provided solely for project 109040S: I-90/Seattle to Mercer Island – Two way transit/HOV. Expenditure of these funds is contingent upon the development of an access plan that provides equitable and dependable access for I-90 Mercer Island exit and entry.

                                                                                                                        (d) Within the amounts provided in this subsection, $500,000 of the transportation partnership account--state appropriation is provided solely for a west Olympia access study, to complete an access study for state route 101/west Olympia.

                                                                                                                        (e) Within the amounts provided in this subsection, $800,000 of the transportation partnership account--state appropriation is provided solely for an SR 534 access point decision report.

                                                                                                                        (f) Within the amounts provided in this subsection, $500,000 of the transportation partnership account--state appropriation is provided solely for an eastern Washington freight corridor study, to evaluate the development of a freight corridor from Osoyoos, Canada to Mesa, Franklin county.

                                                                                                                        (g) Within the amounts provided within this subsection, $435,000,000 of the transportation partnerships account--state appropriation is provided solely for project 509009B: I-90 Snoqualmie Pass East - Hyak to Keechelus dam. However, if the preferred alternative selected for this project results in a lower total project cost, the remaining funds may be used for concrete rehabilitation on I-90 in the vicinity of this project.

                                                                                                                        (3) $416,529,000 from the federal, state, and local motor vehicle account appropriations and $3,370,000 of the special category C account--state appropriation are provided solely to implement the projects included in the 2005 Transportation Partnership Project List, "Highway Improvement Program (I)" section under the column heading "Pre 2003 Funds" as transmitted to LEAP on April 20, 2005. The department shall manage all projects on the list within the overall expenditure authority provided in this subsection.

                                                                                                                        (4) The motor vehicle account--state appropriation includes $42,000,000 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.

                                                                                                                        (5) The transportation partnership account--state appropriation includes $380,000,000 in proceeds from the sale of bonds authorized by Substitute House Bill No. 2311 (or the version as enacted into law). 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.

                                                                                                                        (6) The Tacoma Narrows toll bridge account--state appropriation includes $257,016,000 in proceeds from the sale of bonds authorized by RCW 47.10.843. The Tacoma Narrows toll bridge account--state appropriation includes $15,313,000 in unexpended proceeds from the January 2003 bond sale authorized in RCW 47.10.843 for the Tacoma Narrows bridge project.

                                                                                                                        (7) The transportation 2003 account (nickel account)--state appropriation includes $940,000,000 in proceeds from the sale of bonds authorized by chapter 147, Laws of 2003. 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.

                                                                                                                        (8) To manage some projects more efficiently, federal funds may be transferred from program Z to program I and replaced with state 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, 2006.

                                                                                                                        (9) The department shall, on a quarterly basis beginning July 1, 2005, provide to the legislature reports providing the status on each project in the project lists submitted pursuant to this act and on any additional projects for which the department has expended funds during the 2005-07 fiscal biennium. The department shall work with the transportation committees of the legislature to agree on report formatting and elements. Elements shall include, but not be limited to, project scope, schedule, and costs. The department shall also provide the information required under this subsection via the transportation executive information systems (TEIS).

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

 Transportation 2003 Account (Nickel Account)--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$10,622,000

Motor Vehicle Account--State Appropriation. . . . . . . $67,205,000

Motor Vehicle Account--Federal Appropriation. . . . $406,605,000

Motor Vehicle Account--Private/Local Appropriation. .$6,655,000

Puyallup Tribal Settlement Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,000,000

Transportation Partnership Account--State

Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$146,940,000

TOTAL APPROPRIATION. . . . . . . . . . .$649,027,000