WHEREAS, Recreational boating is a beloved activity enjoyed by many in Washington; and

      WHEREAS, Washington has the fourth highest boater accident rate in the nation, and 87 percent of the operators involved in those accidents had not received any sort of boater safety training; and

      WHEREAS, Through implementation in 36 other states, boater safety education has been proven to reduce serious accidents; and

      WHEREAS, Boating safety education programs contribute to the reduction of accidents and increase the enjoyment of boating by all operators of all recreational vessels on Washington's waters; and

      WHEREAS, Boater safety education in Washington would be phased in so that boaters are required to obtain a boater education card by January 1, 2016; and

      WHEREAS, The boater safety education programs include training on preventing the spread of aquatic invasive species; and

      WHEREAS, The programs set minimum standards for boating safety accomplishment, course instruction, examination, and accreditation that are consistent with United States Coast Guard regulations; and

      WHEREAS, Boater safety programs encourage coordination with volunteer and private sector efforts to enhance boating safety and education for operators of nonmotorized vessels; and

      WHEREAS, Successful implementation of boater safety education will make the waters of Washington more enjoyable for boaters, swimmers, and fishermen;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize the importance of promoting boater safety for the protection of all Washington citizens; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the United States Power Squadrons.

      Senators Rasmussen, Rockefeller, Spanel and Jacobsen spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8681.

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

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced members of the United States Power Squadron who were seated in the gallery.

MOTION

At 1:01 p.m., on motion of Senator Eide, the Senate was declared to be at recess until 2:30 p.m.

AFTERNOON SESSION

The Senate was called to order at 2:30 p.m. by President Owen.

MOTION

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

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      Senator Poulsen, moved that Gubernatorial Appointment No. 9257, Jay Manning, as Director of the Department of Ecology, be confirmed.

      Senators Poulsen, Hargrove, Hewitt, Parlette, Doumit, Rockefeller and Fraser spoke in favor of the motion.

      Senators Morton, Honeyford and Schoesler spoke against the motion.

APPOINTMENT OF JAY MANNING

The President declared the question before the Senate to be the confirmation of Gubernatorial Appointment No. 9257, Jay Manning as Director of the Department of Ecology.

      The Secretary called the roll on the confirmation of Gubernatorial Appointment No. 9257, Jay Manning as Director of the Department of Ecology and the appointment was confirmed by the following vote: Yeas, 38; Nays, 8; Absent, 3; Excused, 0.

      Voting yea: Senators Benton, Brandland, Brown, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Oke, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Sheldon, Shin, Spanel, Swecker, Thibaudeau, Weinstein and Zarelli - 38

      Voting nay: Senators Benson, Carrell, Honeyford, McCaslin, Morton, Pflug, Schoesler and Stevens - 8

      Absent: Senators Berkey, Deccio and Mulliken - 3

Gubernatorial Appointment No. 9257, Jay Manning, having received the constitutional majority was declared confirmed as Director of the Department of Ecology.

MOTIONS

On motion of Senator Brandland, Senator Schmidt was excused.

On motion of Senator Regala, Senator Berkey was excused.

PERSONAL PRIVILEGE

Senator Fraser: “I’d like to bring to the attention of members that I’ve had passed out to your desks a brochure that tells about the Olympia Art Walk that’s going on Friday night and Saturday night. On Saturday in the afternoon there’s a fabulous ‘Procession of the Species’ and since we’re here, we know we’re going to be here at least most of the weekend. And, we know, when the session gets toward the end we sometimes have long breaks between bills getting finalized. I’d just like to let you know you have a great opportunity for wonderful fun if we have long breaks on Friday night and on Saturday.”

MOTION

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

MESSAGE FROM THE HOUSE

April 21, 2005

MR. PRESIDENT:

The House has passed the following bill{s}:

      SUBSTITUTE HOUSE BILL NO. 2304,

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MESSAGE FROM THE HOUSE

April 21, 2005

MR. PRESIDENT:

The House has passed the following bill{s}:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1044,

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5034

SIGNED BY THE PRESIDENT

      The President signed:

      SENATE BILL NO. 6097

SIGNED BY THE PRESIDENT

      The President signed:

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6050

MESSAGE FROM THE HOUSE

April 19, 2005

MR. PRESIDENT:

      The House refuses to concur in the Senate amendment(s) to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1635 and asks Senate to recede therefrom.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Kastama moved that the Senate recede from its position on Engrossed Substitute House Bill No. 1635.

      The President declared the question before the Senate to be motion by Senator Kastama that the Senate recede from its position on Engrossed Substitute House Bill No. 1635.

      The motion by Senator Kastama carried and the Senate receded from its position on Engrossed Substitute House Bill No. 1635.

MOTION

On motion of Senator Kastama, the rules were suspended and Engrossed Substitute House Bill No. 1635 was returned to second reading for the purposes of amendment.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1635, by House Committee on Local Government (originally sponsored by Representatives Kessler, Haler, Clibborn, Jarrett, O'Brien, Hankins, Ericks, Grant, Buck, Chase and Kenney)

      Authorizing local government funding of ambulance and emergency services. Revised for 1st Substitute: Modifying local emergency medical service funding provisions.

      The measure was read the second time.

MOTION

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

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that ambulance and emergency medical services are essential services and the availability of these services is vital to preserving and promoting the health, safety, and welfare of people in local communities throughout the state. All persons, businesses, and industries benefit from the availability of ambulance and emergency medical services, and survival rates can be increased when these services are available, adequately funded, and appropriately regulated. It is the legislature's intent to explicitly recognize local jurisdictions' ability and authority to collect utility service charges to fund ambulance and emergency medical service systems that are based, at least in some part, upon a charge for the availability of these services.

      Sec. 2. RCW 35.21.766 and 2004 c 129 s 34 are each amended to read as follows:

      (1) Whenever a regional fire protection service authority ((or the legislative authority of any city or town)) determines that the fire protection jurisdictions that are members of the authority ((or the city or town or a substantial portion of the city or town is)) are not adequately served by existing private ambulance service, the governing board of the authority may by resolution((, or the legislative authority of the city or town may by appropriate legislation,)) provide for the establishment of a system of ambulance service to be operated by the authority as a public utility ((of the city or town, or)) operated by contract after a call for bids.

      (2) The legislative authority of any city or town may establish an ambulance service to be operated as a public utility. However, the legislative authority of the city or town shall not provide for the establishment of an ambulance service utility that would compete with any existing private ambulance service, unless the legislative authority of the city or town determines that the city or town, or a substantial portion of the city or town, is not adequately served by an existing private ambulance service. In determining the adequacy of an existing private ambulance service, the legislative authority of the city or town shall take into consideration objective generally accepted medical standards and reasonable levels of service which shall be published by the city or town legislative authority. The decision of the city council or legislative body shall be a discretionary, legislative act. When it is preliminarily concluded that the private ambulance service is inadequate, before issuing a call for bids or before the city or town establishes an ambulance service utility, the legislative authority of the city or town shall allow a minimum of sixty days for the private ambulance service to meet the generally accepted medical standards and reasonable levels of service. In the event of a second preliminary conclusion of inadequacy within a twenty-four month period, the legislative authority of the city or town may immediately issue a call for bids or establish an ambulance service utility and is not required to afford the private ambulance service another sixty-day period to meet the generally accepted medical standards and reasonable levels of service. Nothing in this act is intended to supersede requirements and standards adopted by the department of health. A private ambulance service which is not licensed by the department of health or whose license is denied, suspended, or revoked shall not be entitled to a sixty-day period within which to demonstrate adequacy and the legislative authority may immediately issue a call for bids or establish an ambulance service utility.

      (3) The city or town legislative authority is authorized to set and collect rates and charges in an amount sufficient to regulate, operate, and maintain an ambulance utility. Prior to setting such rates and charges, the legislative authority must determine, through a cost-of-service study, the total cost necessary to regulate, operate, and maintain the ambulance utility. Total costs shall not include capital cost for the construction, major renovation, or major repair of the physical plant. Once the legislative authority determines the total costs, the legislative authority shall then identify that portion of the total costs that are attributable to the availability of the ambulance service and that portion of the total costs that are attributable to the demand placed on the ambulance utility.

      (a) Availability costs are those costs attributable to the basic infrastructure needed to respond to a single call for service within the utility's response criteria. Availability costs may include costs for dispatch, labor, training of personnel, equipment, patient care supplies, and maintenance of equipment.

      (b) Demand costs are those costs that are attributable to the burden placed on the ambulance service by individual calls for ambulance service. Demand costs shall include costs related to frequency of calls, distances from hospitals, and other factors identified in the cost-of-service study conducted to assess burdens imposed on the ambulance utility.

      (4) A city or town legislative authority is authorized to set and collect rates and charges as follows:

      (a) The rate attributable to costs for availability described under subsection (3)(a) of this section shall be uniformly applied across user classifications within the utility;

      (b) The rate attributable to costs for demand described under subsection (3)(b) of this section shall be established and billed to each utility user classification based on each user classification's burden on the utility;

      (c) The fee charged by the utility shall reflect a combination of the availability cost and the demand cost;

      (d)(i) Except as provided in (d)(ii) of this subsection, the combined rates charged shall reflect an exemption for persons who are medicaid eligible and who reside in a nursing facility, boarding home, adult family home, or receive in-home services. The combined rates charged may reflect an exemption or reduction for designated classes consistent with Article VIII, section 7 of the state Constitution. The amounts of exemption or reduction shall be a general expense of the utility, and designated as an availability cost, to be spread uniformly across the utility user classifications.

      (ii) For cities with a population less than two thousand five hundred that established an ambulance utility before May 6, 2004, the combined rates charged may reflect an exemption or reduction for persons who are medicaid eligible, and for designated classes consistent with Article VIII, section 7 of the state Constitution;

      (e) The legislative authority must continue to allocate at least seventy percent of the total amount of general fund revenues expended, as of May 5, 2004, toward the total costs necessary to regulate, operate, and maintain the ambulance service utility. However, cities or towns that operated an ambulance service before May 6, 2004, and commingled general fund dollars and ambulance service dollars, may reasonably estimate that portion of general fund dollars that were, as of May 5, 2004, applied toward the operation of the ambulance service, and at least seventy percent of such estimated amount must then continue to be applied toward the total cost necessary to regulate, operate, and maintain the ambulance utility. Cities and towns which first established an ambulance service utility after May 6, 2004, must allocate, from the general fund or emergency medical service levy funds, or a combination of both, at least an amount equal to seventy percent of the total costs necessary to regulate, operate, and maintain the ambulance service utility as of May 5, 2004, or the date that the utility is established;

      (f) The legislative authority must allocate available emergency medical service levy funds, in an amount proportionate to the percentage of the ambulance service costs to the total combined operating costs for emergency medical services and ambulance services, towards the total costs necessary to regulate, operate, and maintain the ambulance utility;

      (g) The legislative authority must allocate all revenues received through direct billing to the individual user of the ambulance service to the demand-related costs under subsection (3)(b) of this section;

      (h) The total revenue generated by the rates and charges shall not exceed the total costs necessary to regulate, operate, and maintain an ambulance utility; and

      (i) Revenues generated by the rates and charges must be deposited in a separate fund or funds and be used only for the purpose of paying for the cost of regulating, maintaining, and operating the ambulance utility.

      (5) Ambulance service rates charged pursuant to this section do not constitute taxes or charges under RCW 82.02.050 through 82.02.090, or RCW 35.21.768, or charges otherwise prohibited by law.

      NEW SECTION. Sec. 3. The joint legislative audit and review committee shall study and review ambulance utilities established and operated by cities under this act. The committee shall examine, but not be limited to, the following factors: The number and operational status of utilities established under this act; whether the utility rate structures and user classifications used by cities were established in accordance with generally accepted utility rate-making practices; and rates charged by the utility to the user classifications. The committee shall provide a final report on this review by December 2007."

      Senators Kastama and Parlette spoke in favor of adoption of the striking amendment.

POINT OF INQUIRY

Senator Roach: “Will Senator Kastama yield to a question? Thank you Senator Kastama. Not having, I don’t have a copy of the amendment here at the desk. Could you explain to us please what the amendment does?”

Senator Kastama: “Certainly, the amendment sets forth the process by which cities can engage in putting in a utility fee that helps with ambulance services pending a decision with the Supreme Court and the City of Kenewick. It outlines how much they can go ahead and supplant. For example, they say there has to be a cost of service study that is done prior to implementation of this fee and it must divide the fees in two manners, one based on availability; one based on utilization. It also goes into the competitive arena with private ambulance companies and cities and outlines some guidelines that, prior to this, have been lacking or have been non-existent in the relationship between ambulance service and the local city in which they provide services. Again, it is an agreed to amendment by all parties.”

MOTIONS

On motion of Senator Oke, Senator Morton was excused.

On motion of Senator Schoesler, Senator Pflug was excused.

On motion of Senator Regala, Senator Hargrove was excused.

On motion of Senator Mulliken, Senator Benton was excused.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senator Kastama to Engrossed Substitute House Bill No. 1635.

      The motion by Senator Kastama carried and the striking amendment 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 "funding;" strike the remainder of the title and insert "amending RCW 35.21.766; and creating new sections."

MOTION

      On motion of Senator Kastama, the rules were suspended, Engrossed Substitute House Bill No. 1635, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Kastama spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 1635, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1635, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 37; Nays, 10; Absent, 0; Excused, 2.

      Voting yea: Senators Benton, Berkey, Brown, Deccio, Delvin, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Oke, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Shin, Spanel, Swecker, Thibaudeau, Weinstein and Zarelli - 37

      Voting nay: Senators Benson, Brandland, Carrell, Esser, Hewitt, Honeyford, Mulliken, Schoesler, Sheldon and Stevens - 10

      Excused: Senators Morton and Pflug - 2

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1635, as amended by the Senate, 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 Honeyford, Senators Benton and Johnson were excused.

MESSAGE FROM THE HOUSE

April 19, 2005

MR. PRESIDENT:

      The House insist on its position regarding the House’s amendments to ENGROSSED SENATE BILL NO. 5513 and asks the Senate for a conference thereon.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator Haugen moved that the Senate insist on its position on the House amendment(s) to Engrossed Senate Bill No. 5513, refuse a conference and ask the House to recede thereon.

      Senator Haugen spoke in favor of the motion.

      The President declared the question before the Senate to be motion by Senator Haugen that the Senate insist on its position on the House amendment(s) to Engrossed Senate Bill No. 5513, refuse a conference and ask the House to recede thereon.

      The motion by Senator Haugen carried and the Senate insisted on its position on the House amendment(s) to Engrossed Senate Bill No. 5513, refused a conference and asked the House to recede thereon.

MOTION

On motion of Senator Brandland, Senator Mulliken was excused.

MOTION

At 3:11 p.m., on motion of Senator Eide, the Senate was declared to be at ease subject to the call of the President.

EVENING SESSION

The Senate was called to order at 4:16 p.m. by the President Pro Tempore.

MOTION

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

SECOND READING

CONFIRMATION OF GUBERNATORIAL REAPPOINTMENTS

MOTION

      Senator Prentice, moved that Gubernatorial Reappointment No. 9153, Alan R. Parker, as a member of the Gambling Commission, be confirmed.

      Senator Prentice spoke in favor of the motion.

REAPPOINTMENT OF ALAN R. PARKER

The President Pro Tempore declared the question before the Senate to be the confirmation of Gubernatorial Reappointment No. 9153, Alan R. Parker as a member of the Gambling Commission.

      The Secretary called the roll on the confirmation of Gubernatorial Reappointment No. 9153, Alan R. Parker as a member of the Gambling Commission and the appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 3; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Delvin, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Oke, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 45

      Absent: Senators Deccio, Doumit and McCaslin - 3

      Excused: Senator Pflug - 1

Gubernatorial Reappointment No. 9153, Alan R. Parker, having received the constitutional majority was declared confirmed as a member of the Gambling Commission.

SECOND READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

      Senator Prentice, moved that Gubernatorial Appointment No. 9241, John Ellis, as a member of the Gambling Commission, be confirmed.

      Senator Prentice spoke in favor of the motion.

APPOINTMENT OF JOHN ELLIS

The President Pro Tempore declared the question before the Senate to be the confirmation of Gubernatorial Appointment No. 9241, John Ellis as a member of the Gambling Commission.

      The Secretary called the roll on the confirmation of Gubernatorial Appointment No. 9241, John Ellis as a member of the Gambling Commission and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 2; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Eide, Esser, Fairley, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Absent: Senators Doumit and Finkbeiner - 2

Gubernatorial Appointment No. 9241, John Ellis, having received the constitutional majority was declared confirmed as a member of the Gambling Commission.

MOTION

On motion of Senator Weinstein, Senator Doumit was excused.

SECOND READING

CONFIRMATION OF GUBERNATORIAL REAPPOINTMENTS

MOTION

      Senator McAuliffe, moved that Gubernatorial Reappointment No. 9226, Stanley Barer, as a member of the Board of Regents, University of Washington, be confirmed.

      Senator McAuliffe spoke in favor of the motion.

MOTION

On motion of Senator Mulliken, Senators Finkbeiner and Deccio were excused.

REAPPOINTMENT OF STANLEY BARER

The President Pro Tempore declared the question before the Senate to be the confirmation of Gubernatorial Reappointment No. 9226, Stanley Barer as a member of the Board of Regents, University of Washington.

      The Secretary called the roll on the confirmation of Gubernatorial Reappointment No. 9226, Stanley Barer as a member of the Board of Regents, University of Washington and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Absent: Senator Hargrove - 1

      Excused: Senator Deccio - 1

Gubernatorial Reappointment No. 9226, Stanley Barer, having received the constitutional majority was declared confirmed as a member of the Board of Regents, University of Washington.

SECOND READING

CONFIRMATION OF GUBERNATORIAL REAPPOINTMENTS

MOTION

      Senator Fraser, moved that Gubernatorial Reappointment No. 9231, Reiko Callner, as a Chair of the Human Rights Commission, be confirmed.

      Senator Fraser spoke in favor of the motion.

APPOINTMENT OF REIKO CALLNER

The President Pro Tempore declared the question before the Senate to be the confirmation of Gubernatorial Reappointment No. 9231, Reiko Callner as a Chair of the Human Rights Commission.

      The Secretary called the roll on the confirmation of Gubernatorial Reappointment No. 9231, Reiko Callner as a Chair of the Human Rights Commission and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      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, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 49

Gubernatorial Reappointment No. 9231, Reiko Callner, having received the constitutional majority was declared confirmed as a Chair of the Human Rights Commission.

MOTION

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

MESSAGE FROM THE HOUSE

April 21, 2005

MR. PRESIDENT:

      The House concurred in Senate amendment{s} to the following bills and passed the bills as amended by the Senate:

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1062,

      SECOND SUBSTITUTE HOUSE BILL NO. 1188,

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1539,

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MESSAGE FROM THE HOUSE

April 8, 2005

MR. PRESIDENT:

      The House has passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6090, with the following amendments{s}:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. (1) A budget is hereby adopted and, subject to the provisions set forth in the following sections, the several amounts specified in parts I through VIII of this act, or so much thereof as shall be sufficient to accomplish the purposes designated, are hereby appropriated and authorized to be incurred for salaries, wages, and other expenses of the agencies and offices of the state and for other specified purposes for the fiscal biennium beginning July 1, 2005, and ending June 30, 2007, except as otherwise provided, out of the several funds of the state hereinafter named.

      (2) Unless the context clearly requires otherwise, the definitions in this section 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.

      Unless otherwise specifically authorized in this act, any portion of an amount provided solely for a specified purpose which is unnecessary to fulfill the specified purpose shall lapse.

PART I

GENERAL GOVERNMENT

      NEW SECTION. Sec. 101. FOR THE HOUSE OF REPRESENTATIVES

General Fund--State Appropriation (FY 2006). . . . . . $29,300,000

General Fund--State Appropriation (FY 2007). . . . . . $29,372,000

                           TOTAL APPROPRIATION. . . . . . . $58,672,000

      The appropriations in this section are subject to the following conditions and limitations: $150,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the joint select committee on fiscal stability.

      (1) The joint select committee on fiscal stability is created, consisting of twelve members as follows: Three members shall be appointed by the leader of each of the two largest caucuses of the senate and the two largest caucuses of the house of representatives. The governor shall appoint an additional person to serve as the chair of the committee. The chair may vote on procedural questions, but may not vote on substantive questions concerning the research or recommendations of the committee.

      (2) The committee shall develop recommendations for specific statutory and constitutional provisions to establish or revise the following:

      (a) Spending limits;

      (b) Tax limits;

      (c) Emergency reserve accounts; and

      (d) Tax reforms necessary to: Create a sustainable system of state and local finance; improve the fairness of state and local taxation; and improve the competitiveness of Washington's economy.

      (3) The committee shall conduct a series of public hearings on these topics and its proposed recommendations. The hearings shall be held in locations across the state and structured to encourage full participation by persons who represent a balance of perspectives and constituencies. The committee shall submit its findings and recommendations in a report to the fiscal committees of the legislature by January 1, 2006.

      (4) The committee shall use legislative facilities and staff from senate committee services and the office of program research. The department of revenue shall provide necessary support and information to the committee. The chair of the committee shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. All expenses of the committee, including travel, shall be paid jointly by the senate and the house of representatives.

      NEW SECTION. Sec. 102. FOR THE SENATE

General Fund--State Appropriation (FY 2006). . . . . . $22,623,000

General Fund--State Appropriation (FY 2007). . . . . . $24,301,000

                           TOTAL APPROPRIATION. . . . . . . $46,924,000

      The appropriations in this section are subject to the following conditions and limitations: $150,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the joint select committee on fiscal stability.

      (1) The joint select committee on fiscal stability is created, consisting of twelve members as follows: Three members shall be appointed by the leader of each of the two largest caucuses of the senate and the two largest caucuses of the house of representatives. The governor shall appoint an additional person to serve as the chair of the committee. The chair may vote on procedural questions, but may not vote on substantive questions concerning the research or recommendations of the committee.

      (2) The committee shall develop recommendations for specific statutory and constitutional provisions to establish or revise the following:

      (a) Spending limits;

      (b) Tax limits;

      (c) Emergency reserve accounts; and

      (d) Tax reforms necessary to: Create a sustainable system of state and local finance; improve the fairness of state and local taxation; and improve the competitiveness of Washington's economy.

      (3) The committee shall conduct a series of public hearings on these topics and its proposed recommendations. The hearings shall be held in locations across the state and structured to encourage full participation by persons who represent a balance of perspectives and constituencies. The committee shall submit its findings and recommendations in a report to the fiscal committees of the legislature by January 1, 2006.

      (4) The committee shall use legislative facilities and staff from senate committee services and the office of program research. The department of revenue shall provide necessary support and information to the committee. The chair of the committee shall be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060. All expenses of the committee, including travel, shall be paid jointly by the senate and the house of representatives.

      NEW SECTION. Sec. 103. FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . . . $3,124,000

General Fund--State Appropriation (FY 2007). . . . . . . $3,094,000

                           TOTAL APPROPRIATION. . . . . . . . $6,218,000

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

      (1) Notwithstanding the provisions in this section, the committee may adjust the due dates for projects included on the committee's 2005-07 work plan as necessary to efficiently manage workload.

      (2) $563,000 of the general fund--state appropriation for fiscal year 2006 and $863,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for consultant costs related to the support of the citizen advisory board required by House Bill No. 1064 (government accountability). If House Bill No. 1064 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (3) $374,000 of the general fund--state appropriation for fiscal year 2006 and $360,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for consultant costs related to the citizen commission for performance measurement of tax preferences required by House Bill No. 1069 (audits of tax preferences). If House Bill No. 1069 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (4) $188,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the cost of evaluating the effectiveness of the job development fund grant program required by House Bill No. 1903 (creating a job development fund). If House Bill No. 1903 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      (5) $100,000 of the general fund--state appropriation is provided solely for an evaluation of the budget process used for information technology projects. The evaluation will include: Itemizing total costs for current information technology funding across state agencies; analyzing current processes by which information funding is requested and evaluated; analyzing processes used in the private sector and other states; and assessing the applicability of other practices for improving the state's funding process. A report is due in January 2006.

      (6) $125,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for a study of the current state pupil transportation funding formula. The study will evaluate the extent to which the formula captures the costs of providing pupil transportation for basic education programs. Based on the results of this evaluation, the study shall develop alternative formulas for allocating state funding to school districts for the transportation of students for basic education programs. The alternative formulas shall take into account the legislative definition of basic education programs, promote the efficient use of state and local resources, and allow local district control over the management of pupil transportation systems. In addition, the study shall include a review of the funding mechanisms used by other states and identify best practices.

      (7) Within amounts provided in this section, the committee shall conduct a review of the special education excess cost accounting methodology and expenditure reporting requirements. The committee shall work with the state auditor's office and develop a mutually acceptable work plan in conducting this review. This review may include, but is not limited to: (a) An analysis of the current special education excess cost accounting methodology and related special education expenditure reporting requirements; (b) an examination of whether opportunities exist for modifying the current excess cost accounting methodology and expenditure reporting requirements; (c) an assessment of the potential impact on school districts if the current excess cost accounting methodology and expenditure reporting requirements are modified; and (d) any findings and recommendations from the state auditor's office examination of whether school districts are appropriately and consistently applying the current excess cost methodology. The committee shall provide a report to the appropriate policy and fiscal committees of the legislature in January 2006.

      NEW SECTION. Sec. 104. FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . . . $1,677,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,829,000

                           TOTAL APPROPRIATION. . . . . . . . $3,506,000

      NEW SECTION. Sec. 105. FOR THE OFFICE OF THE STATE ACTUARY

Department of Retirement Systems Expense Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . $2,902,000

      NEW SECTION. Sec. 106. FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . . . $7,142,000

General Fund--State Appropriation (FY 2007). . . . . . . $7,038,000

                           TOTAL APPROPRIATION. . . . . . . $14,180,000

      NEW SECTION. Sec. 107. FOR THE STATUTE LAW COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . . . $3,975,000

General Fund--State Appropriation (FY 2007). . . . . . . $4,209,000

                           TOTAL APPROPRIATION. . . . . . . . $8,184,000

      NEW SECTION. Sec. 108. LEGISLATIVE AGENCIES. In order to achieve operating efficiencies within the financial resources available to the legislative branch, the executive rules committee of the house of representatives and the facilities and operations committee of the senate by joint action may transfer funds among the house of representatives, senate, joint legislative audit and review committee, legislative evaluation and accountability program committee, legislative transportation committee, office of the state actuary, joint legislative systems committee, and statute law committee.

      NEW SECTION. Sec. 109. FOR THE SUPREME COURT

General Fund--State Appropriation (FY 2006). . . . . . . $5,901,000

General Fund--State Appropriation (FY 2007). . . . . . . $6,057,000

                           TOTAL APPROPRIATION. . . . . . . $11,958,000

      NEW SECTION. Sec. 110. FOR THE LAW LIBRARY

General Fund--State Appropriation (FY 2006). . . . . . . $1,983,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,982,000

                           TOTAL APPROPRIATION. . . . . . . . $3,965,000

      NEW SECTION. Sec. 111. FOR THE COURT OF APPEALS

General Fund--State Appropriation (FY 2006). . . . . . $13,541,000

General Fund--State Appropriation (FY 2007). . . . . . $13,798,000

                           TOTAL APPROPRIATION. . . . . . . $27,339,000

      NEW SECTION. Sec. 112. FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund--State Appropriation (FY 2006). . . . . . . $1,035,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,063,000

                           TOTAL APPROPRIATION. . . . . . . . $2,098,000

      NEW SECTION. Sec. 113. FOR THE ADMINISTRATOR FOR THE COURTS

General Fund--State Appropriation (FY 2006). . . . . . $18,893,000

General Fund--State Appropriation (FY 2007). . . . . . $18,991,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$49,324,000

Judicial Information Systems Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$25,199,000

Trial Court Improvement Account--State Appropriation$1,440,000

                           TOTAL APPROPRIATION. . . . . . $113,847,000

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

      (1) $750,000 of the general fund--state appropriation for fiscal year 2006 and $750,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for court-appointed special advocates in dependency matters. The administrator for the courts shall not retain more than six percent of total funding to cover administrative or any other agency costs.

      (2) $720,000 of the trial court improvement account--state appropriation for fiscal year 2006 and $720,000 of the trial court improvement account--state appropriation for fiscal year 2006 are provided for the implementation of Engrossed Second Substitute House Bill No. 5454 (revising trial court funding provisions). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      (3) $82,000 of the general fund--state appropriation for fiscal year 2006 and $82,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1112 (creating an additional superior court position). If the bill is not enacted by June 30, 2005, the amounts in this subsection shall lapse.

      (4) $17,000 of the general fund--state appropriation for fiscal year 2006 and $11,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Substitute House Bill No. 1854 (driving privilege). If the bill is not enacted by June 30, 2005, the amounts in this subsection shall lapse.

      NEW SECTION. Sec. 114. FOR THE OFFICE OF PUBLIC DEFENSE

General Fund--State Appropriation (FY 2006). . . . . . . . .$690,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,078,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,288,000

Judicial Improvement Account--State Appropriation. . .$8,260,000

                           TOTAL APPROPRIATION. . . . . . . $23,316,000

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

      (1) $3,500,000 of the judicial improvement account--state appropriation for fiscal year 2006 and $3,500,000 of the judicial improvement account--state appropriation for fiscal year 2007 are provided solely to expand the parent representation project in dependency and termination cases. If Engrossed Second Substitute Bill No. 5454 (revising trial court funding provisions) is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (2) $630,000 of the judicial improvement account--state appropriation for fiscal year 2006 and $630,000 of the judicial improvement account--state appropriation for fiscal year 2007 are provided for trial level indigent defense pursuant to Engrossed Second Substitute Bill No. 5454 (revising trial court funding provisions). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (3) Amounts provided from the public safety and education account appropriation in this section include funding for investigative services in death penalty personal restraint petitions.

      (4) $300,000 of the general fund--state appropriation for fiscal year 2006 and $300,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to contract with the Washington defender association to continue services previously funded from the federal drug control and system improvement formula grant through the department of community, trade, and economic development.

      NEW SECTION. Sec. 115. FOR THE OFFICE OF CIVIL LEGAL AID

General Fund--State Appropriation (FY 2006). . . . . . . . .$916,000

General Fund--State Appropriation (FY 2007). . . . . . . $2,832,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,701,000

Violence Reduction and Drug Enforcement Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . $4,958,000

Judicial Improvement Account--State Appropriation. . .$3,000,000

                           TOTAL APPROPRIATION. . . . . . . $16,407,000

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

      (1) $816,000 of the general fund--state appropriation for fiscal year 2006, $2,732,000 of the general fund--state appropriation for fiscal year 2007, $4,701,000 of the public safety and education account--state appropriation, and $4,958,000 of the violence reduction and drug enforcement account--state appropriation are contingent upon enactment of Substitute House Bill No. 1747 (civil legal services). If the bill is not enacted by June 30, 2005, these appropriations shall be made to the department of community, trade, and economic development and are provided solely for the purpose of civil legal services.

      (2) $3,000,000 of the judicial improvement account--state appropriation is provided for the implementation of Engrossed Second Substitute House Bill No. 5454 (revising trial court funding provisions). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      (3) $100,000 of the general fund--state appropriation for fiscal year 2006 and $100,000 of the general fund--state appropriation for fiscal year 2007 are contingent upon enactment of Substitute House Bill No. 1747 (civil legal services). If the bill is not enacted by June 30, 2005, the appropriation shall be made to the department of community, trade, and economic development and is provided solely for a general farm organization with members in every county of the state to develop and administer an alternative dispute resolution system for disputes between farmers and farm workers.

      NEW SECTION. Sec. 116. FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 2006). . . . . . . $5,680,000

General Fund--State Appropriation (FY 2007). . . . . . . $5,036,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $1,350,000

Water Quality Account--State Appropriation. . . . . . . . .$4,112,000

                           TOTAL APPROPRIATION. . . . . . . $16,178,000

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

      (1) $4,112,000 of the water quality account appropriation and $1,150,000 of the general fund--federal appropriation are provided solely for the Puget Sound water quality action team to implement the Puget Sound conservation and recovery plan action items PSAT-01 through PSAT-06.

      (2) $200,000 of the general fund--state appropriation for fiscal year 2006, $200,000 of the general fund--state appropriation for fiscal year 2007, and $200,000 of the general fund--federal appropriation are provided solely for one-time corrective actions to address Hood canal's dissolved oxygen problems, the Puget Sound conservation and recovery plan action item PSAT-07.

      (3) As described in section 129(9) of this act, the Puget Sound water quality action team shall make recommendations and report on monitoring activities related to salmon recovery.

      (4) $386,000 of the general fund--state appropriation for fiscal year 2006 and $158,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1152 (early learning council). If House Bill No. 1152 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (5) For the governor's funding request pursuant to RCW 74.39A.300 to be submitted to the legislature by December 20, 2006, it is the intent of the legislature to consider a fringe benefits funding request that provides health care benefits substantially equivalent in cost to those available to individual providers pursuant to chapter 25, Laws of 2003 1st sp. sess.

      (6) $100,000 of the general fund--state appropriation for fiscal year 2006 and $100,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to implement Engrossed Substitute House Bill No. 2097 (management program for Hood Canal). If Engrossed Substitute House Bill No. 2097 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 117. FOR THE LIEUTENANT GOVERNOR

General Fund--State Appropriation (FY 2006). . . . . . . . .$761,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$762,000

                           TOTAL APPROPRIATION. . . . . . . . $1,523,000

      NEW SECTION. Sec. 118. FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund--State Appropriation (FY 2006). . . . . . . $2,013,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,998,000

                           TOTAL APPROPRIATION. . . . . . . . $4,011,000

      The appropriations in this section are subject to the following conditions and limitations: $66,000 of the general fund--state appropriation for fiscal year 2006 and $56,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1226 (campaign contribution limits). If House Bill No. 1226 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 119. FOR THE SECRETARY OF STATE

General Fund--State Appropriation (FY 2006). . . . . . $18,934,000

General Fund--State Appropriation (FY 2007). . . . . . $16,980,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $7,025,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $125,000

Archives and Records Management Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,023,000

Department of Personnel Services Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$702,000

Local Government Archives Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$11,773,000

Election Account--Federal Appropriation. . . . . . . . . . $47,498,000

                           TOTAL APPROPRIATION. . . . . . $111,060,000

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

      (1) $2,296,000 of the general fund--state appropriation for fiscal year 2006 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures. Counties shall be reimbursed only for those odd-year election costs that the secretary of state validates as eligible for reimbursement.

      (2) $1,999,000 of the general fund--state appropriation for fiscal year 2006 and $2,403,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the verification of initiative and referendum petitions, maintenance of related voter registration records, and the publication and distribution of the voters and candidates pamphlet.

      (3) $125,000 of the general fund--state appropriation for fiscal year 2006 and $118,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for legal advertising of state measures under RCW 29.27.072.

      (4)(a) $2,028,004 of the general fund--state appropriation for fiscal year 2006 and $2,063,772 of the general fund--state appropriation for fiscal year 2007 are provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of statewide significance during the 2005-07 biennium. The funding level for each year of the contract shall be based on the amount provided in this subsection. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution. The office of the secretary of state may make full or partial payment once all criteria in (a) and (b) of this subsection have been satisfactorily documented.

      (b) The legislature finds that the commitment of on-going funding is necessary to ensure continuous, autonomous, and independent coverage of public affairs. For that purpose, the secretary of state shall enter into a contract with the nonprofit organization to provide public affairs coverage.

      (c) The nonprofit organization shall prepare an annual independent audit, an annual financial statement, and an annual report, including benchmarks that measure the success of the nonprofit organization in meeting the intent of the program.

      (d) No portion of any amounts disbursed pursuant to this subsection may be used, directly or indirectly, for any of the following purposes:

      (i) Attempting to influence the passage or defeat of any legislation by the legislature of the state of Washington, by any county, city, town, or other political subdivision of the state of Washington, or by the congress, or the adoption or rejection of any rule, standard, rate, or other legislative enactment of any state agency;

      (ii) Making contributions reportable under chapter 42.17 RCW; or

      (iii) Providing any: (A) Gift; (B) honoraria; or (C) travel, lodging, meals, or entertainment to a public officer or employee.

      (5) $196,000 of the general fund--state appropriation for fiscal year 2006 and $173,000 of the general fund--state appropriation for fiscal year 2007 are provided for the implementation of House Bill No. 1749 (county election procedures). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 120. FOR THE GOVERNOR'S OFFICE OF INDIAN AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . . .$344,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$349,000

                           TOTAL APPROPRIATION. . . . . . . . . .$693,000

      The appropriations in this section are subject to the following conditions and limitations: The office shall assist the department of personnel on providing the government-to-government training sessions for federal, state, local, and tribal government employees. The training sessions shall cover tribal historical perspectives, legal issues, tribal sovereignty, and tribal governments. Costs of the training sessions shall be recouped through a fee charged to the participants of each session. The department of personnel shall be responsible for all of the administrative aspects of the training, including the billing and collection of the fees for the training.

      NEW SECTION. Sec. 121. FOR THE COMMISSION ON ASIAN-PACIFIC- AMERICAN AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . . .$298,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$293,000

                           TOTAL APPROPRIATION. . . . . . . . . .$591,000

      NEW SECTION. Sec. 122. FOR THE STATE TREASURER

State Treasurer's Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,666,000

      NEW SECTION. Sec. 123. FOR THE STATE AUDITOR

General Fund--State Appropriation (FY 2006). . . . . . . $2,160,000

General Fund--State Appropriation (FY 2007). . . . . . . $2,818,000

State Auditing Services Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$13,645,000

                           TOTAL APPROPRIATION. . . . . . . $18,623,000

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

      (1) Audits of school districts by the division of municipal corporations shall include findings regarding the accuracy of: (a) Student enrollment data; and (b) the experience and education of the district's certified instructional staff, as reported to the superintendent of public instruction for allocation of state funding.

      (2) $731,000 of the general fund--state appropriation for fiscal year 2006 and $727,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for staff and related costs to verify the accuracy of reported school district data submitted for state funding purposes; conduct school district program audits of state funded public school programs; establish the specific amount of state funding adjustments whenever audit exceptions occur and the amount is not firmly established in the course of regular public school audits; and to assist the state special education safety net committee when requested.

      (3) The office shall report to the office of financial management and the appropriate fiscal committees of the legislature detailed information on risk-based auditing, its theory, and its application for the audits performed on Washington state government. The report shall include an explanation of how the office identifies, measures, and prioritizes risk, the manner in which the office uses these factors in the planning and execution of the audits of Washington state government, and the methods and procedures used in the conduct of the risk-based audits themselves. The report is due no later than December 1, 2005.

      (4) $1,413,000 of the general fund--state appropriation for fiscal year 2006, $2,091,000 of the general fund--state appropriation for fiscal year 2007, and $2,000 of the state auditing services revolving account--state appropriation for fiscal year 2006 are provided solely for the implementation of Engrossed Substitute House Bill No. 1064 (government performance). If Engrossed Substitute House Bill No. 1064 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (5) $16,000 of the general fund--state appropriation for fiscal year 2006 is provided for a review of special education excess cost accounting and reporting requirements. The state auditor's office shall coordinate this work with the joint legislative audit and review committee's review of the special education excess cost accounting methodology and expenditure reporting requirements. The state auditor's review shall include an examination of whether school districts are (a) appropriately implementing the excess cost accounting methodology; (b) consistently charging special education expenses to the special education and basic education programs; (c) appropriately determining the percentage of expenditures that should be charged to the special education and basic education programs; and (d) appropriately and consistently reporting special education expenditures. The results of this review will be included in the joint legislative audit and review committee's report issued in January 2006.

      NEW SECTION. Sec. 124. FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund--State Appropriation (FY 2006). . . . . . . . .$133,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$202,000

                           TOTAL APPROPRIATION. . . . . . . . . .$335,000

      NEW SECTION. Sec. 125. FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 2006). . . . . . . $5,172,000

General Fund--State Appropriation (FY 2007). . . . . . . $5,052,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $2,927,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,239,000

New Motor Vehicle Arbitration Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,298,000

Legal Services Revolving Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $181,865,000

Tobacco Prevention and Control Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$270,000

                           TOTAL APPROPRIATION. . . . . . $198,823,000

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

      (1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year.

      (2) Prior to entering into any negotiated settlement of a claim against the state that exceeds five million dollars, the attorney general shall notify the director of financial management and the chairs of the senate committee on ways and means and the house of representatives committee on appropriations.

      (3) $178,000 of the legal services revolving account--state appropriation is subject to enactment of Engrossed Substitute House Bill No. 1251 (refund anticipation loans). If the bill is not enacted by June 30, 2005, the appropriations out of this account shall be made from the general fund.

      NEW SECTION. Sec. 126. FOR THE CASELOAD FORECAST COUNCIL

General Fund--State Appropriation (FY 2006). . . . . . . . .$712,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$695,000

                           TOTAL APPROPRIATION. . . . . . . . $1,407,000

      NEW SECTION. Sec. 127. FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 2006). . . . . . $68,167,000

General Fund--State Appropriation (FY 2007). . . . . . $68,702,000

General Fund--Federal Appropriation. . . . . . . . . . . . $247,903,000

General Fund--Private/Local Appropriation. . . . . . . . .$12,175,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,552,000

Public Works Assistance Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,678,000

Tourism Development and Promotion Account

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$300,000

Drinking Water Assistance Administrative Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . .$213,000

Lead Paint Account--State Appropriation. . . . . . . . . . . . . . .$6,000

Building Code Council Account--State Appropriation. $1,108,000

Administrative Contingency Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,808,000

Low-Income Weatherization Assistance Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $8,359,000

Violence Reduction and Drug Enforcement Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $5,240,000

Manufactured Home Installation Training Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$236,000

Community and Economic Development Fee Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,567,000

Washington Housing Trust Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$18,881,000

Homeless Families Service Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $300,000

Public Facility Construction Loan Revolving

      Account--State Appropriation. . . . . . . . . . . . . . . . . . .$601,000

Mobile Home Investigation Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $261,000

Homeless Housing Account--State Appropriation. . . .$10,350,000

Individual Development Account--State Appropriation$1,021,000

                           TOTAL APPROPRIATION. . . . . . $455,428,000

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

      (1) $2,838,000 of the general fund--state appropriation for fiscal year 2006 and $2,838,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for a contract with the Washington technology center for work essential to the mission of the Washington technology center and conducted in partnership with universities. The center shall not pay any increased indirect rate nor increases in other indirect charges above the absolute amount paid during the 1995-97 fiscal biennium.

      (2) $5,902,000 of the general fund--federal appropriation is provided solely for the justice assistance grant program, to be distributed in state fiscal year 2006 as follows:

      (a) $2,064,000 to local units of government to continue multijurisdictional narcotics task forces;

      (b) $330,000 to the department to continue the drug prosecution assistance program in support of multijurisdictional narcotics task forces;

      (c) $675,000 to the Washington state patrol for coordination, investigative, and supervisory support to the multijurisdictional narcotics task forces and for methamphetamine education and response;

      (d) $20,000 to the department for tribal law enforcement;

      (e) $345,000 to the department to continue domestic violence legal advocacy;

      (f) $60,000 to the department for community-based advocacy services to victims of violent crime, other than sexual assault and domestic violence;

      (g) $351,000 to the department of social and health services, division of alcohol and substance abuse, for juvenile drug courts in eastern and western Washington;

      (h) $626,000 to the department of social and health services, juvenile rehabilitation administration, to continue youth violence prevention and intervention projects;

      (i) $97,000 to the department to continue evaluation of this grant program;

      (j) $290,000 to the office of financial management for criminal history records improvement;

      (k) $580,000 to the department for required grant administration, monitoring, and reporting on justice assistance grant programs; and

      (l) $464,000 to the department for distribution to small municipalities.

      These amounts represent the maximum justice assistance grant expenditure authority for each program. No program may expend justice assistance grant funds in excess of the amounts provided in this subsection. If moneys in excess of those appropriated in this subsection become available, whether from prior or current fiscal year distributions, the department shall hold these moneys in reserve and may not expend them without specific appropriation. These moneys shall be carried forward and applied to the pool of moneys available for appropriation for programs and projects in the succeeding fiscal year. As part of its budget request for the succeeding year, the department shall estimate and request authority to spend any justice assistance grant funds.

      (3) $170,000 of the general fund--state appropriation for fiscal year 2006 and $170,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to fund domestic violence legal advocacy, in recognition of reduced federal grant funding.

      (4) $28,875,000 of the general fund--state appropriation for fiscal year 2006 and $29,941,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for providing early childhood education assistance. Of these amounts, $1,497,000 in each fiscal year is provided solely to increase the number of children receiving education, and $1,052,000 in fiscal year 2006 and $2,146,000 in fiscal year 2007 are provided solely for a targeted vendor rate increase.

      (5) Repayments of outstanding loans granted under RCW 43.63A.600, the mortgage and rental assistance program, shall be remitted to the department, including any current revolving account balances. The department shall contract with a lender or contract collection agent to act as a collection agent of the state. The lender or contract collection agent shall collect payments on outstanding loans, and deposit them into an interest-bearing account. The funds collected shall be remitted to the department quarterly. Interest earned in the account may be retained by the lender or contract collection agent, and shall be considered a fee for processing payments on behalf of the state. Repayments of loans granted under this chapter shall be made to the lender or contract collection agent as long as the loan is outstanding, notwithstanding the repeal of the chapter.

      (6) $1,288,000 of the Washington housing trust account--state appropriation shall lapse if neither Engrossed House Bill No. 1074 nor Substitute Senate Bill No. 5108 (housing programs) are enacted by June 30, 2005.

      (7) $235,000 of the public works assistance account--state appropriation is provided solely for technical assistance to municipalities through the small communities initiative.

      (8) $725,000 of the general fund--state appropriation for fiscal year 2006 and $725,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for food banks to obtain and distribute additional nutritious food; and purchase equipment to transport and store perishable products.

      (9) $1,154,000 of the violence reduction and drug enforcement account appropriation is provided solely for the community mobilization program to provide grants and training to community organizations.

      (10) $2,000,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for the community services block grant program to replace federal funding.

      (11) $4,950,000 of the homeless housing account--state appropriation for fiscal year 2006 and $5,400,000 of the homeless housing account--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 2163 (homeless housing program). If House Bill No. 2163 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (12) $106,000 of the general fund--state appropriation for fiscal year 2006 and $261,000 of the mobile home investigations account--state appropriation for fiscal year 2006 are provided solely for the implementation of Engrossed Substitute House Bill No. 1640 (landlord and tenant disputes). If Engrossed Substitute House Bill No. 1640 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (13) $404,000 of the individual development account--state appropriation for fiscal year 2006 and $617,000 of the individual development account--state appropriation for fiscal year 2007 are provided solely for the implementation of Substitute House Bill No. 1408 (individual development account). If Substitute House Bill No. 1408 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (14) $215,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for matching funds for a federal economic development administration grant awarded to the city of Kent to conduct a feasibility study and economic analysis for the establishment of a center for advanced manufacturing.

      (15) $20,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the department to compile a report on housing stock in Washington state to identify areas of potentially high risk for child lead exposure. This report shall include an analysis of existing data regarding the ages of housing stock in specific regions and an analysis of data regarding actual lead poisoning cases, which shall be provided by the department of health's childhood lead poisoning surveillance program.

      (16) $150,000 of general fund--state appropriation for fiscal year 2006 is provided solely for the Cascade land conservancy to develop and implement a plan for regional conservation within King, Kittitas, Pierce, and Snohomish counties.

      (17) $50,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the support, including safety and security costs, of the America's freedom salute to be held in the Vancouver, Washington area.

      (18) $250,000 of the general fund--state appropriation for fiscal year 2006 and $250,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for Snohomish county for a law enforcement and treatment methamphetamine pilot program. $250,000 of the general fund--state appropriation for fiscal year 2006 and $250,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for Pierce county for the extension of treatment alternatives and targeting the identification, arrest, and prosecution of perpetrators of methamphetamine-related crimes.

      (19) $50,000 of the general fund--state appropriation is provided solely for one pilot project to promote the study and implementation of safe neighborhoods through community planning.

      (20) $287,000 of the general fund--state appropriation for fiscal year 2006 and $288,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for Walla Walla community college to establish the water and environmental studies center to provide workforce education and training, encourage innovative approaches and practices that address environmental and cultural issues, and facilitate the Walla Walla watershed alliance role in promoting communication leading to cooperative conservation efforts that effectively address urban and rural water and environmental issues.

      (21) $50,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for work with the northwest food processors association on the food processing cluster development project.

      (22) $300,000 of the general fund--state appropriation for fiscal year 2006 and $200,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the northwest agriculture incubator project, which will support small farms in economic development.

      (23) $150,000 of the general fund--state appropriation for fiscal year 2006 is provided solely to the department of community, trade, and economic development as the final appropriation for the youth assessment center in Pierce county for activities dedicated to reducing the rate of incarceration of juvenile offenders.

      (24) $170,000 of the general fund--state appropriation for fiscal year 2006 and $170,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Second Substitute House Bill No. 1815 (small business incubator). $250,000 must be distributed as grants and must be matched by an equal amount of private funds. If Second Substitute House Bill No. 1815 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (25) The department shall coordinate any efforts geared towards the 2010 Olympics with the regional effort being conducted by the Pacific northwest economic region, a statutory committee.

      (26) In addition to other funds available for this purpose, $140,000 of the public safety and education account--state appropriation is provided solely for the court-appointed special advocates program.

      NEW SECTION. Sec. 128. FOR THE ECONOMIC AND REVENUE FORECAST COUNCIL

General Fund--State Appropriation (FY 2006). . . . . . . . .$568,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$503,000

                           TOTAL APPROPRIATION. . . . . . . . $1,071,000

      NEW SECTION. Sec. 129. FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund--State Appropriation (FY 2006). . . . . . $17,004,000

General Fund--State Appropriation (FY 2007). . . . . . $15,622,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $23,510,000

Public Works Assistance Account--State Appropriation. .$200,000

Violence Reduction and Drug Enforcement Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$246,000

State Auditing Services Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000

                           TOTAL APPROPRIATION. . . . . . . $56,607,000

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

      (1) $200,000 of the public works assistance account appropriation is provided solely for an inventory and evaluation of the most effective way to organize the state public infrastructure programs and funds. The inventory and evaluation shall be delivered to the governor and the appropriate committees of the legislature by September 1, 2005.

      (2)(a) $182,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for an advisory council to study residential services for persons with developmental disabilities. The study shall identify a preferred system of services and a plan to implement the system within four years. By October 1, 2005, recommendations shall be provided on the services that best address client needs in different regions of the state, and by January 1, 2006, recommendations on the preferred system shall be complete. The advisory council may contract for specialized services to complete the study.

      (b) The advisory council shall consist of thirteen members. Members appointed by the governor, include one representative from each of the governor's office, the office of financial management, the department of social and health services, the Washington state disabilities council, a labor organization, the community residential care providers, residents of residential habilitation centers, individuals served by community residential programs, and individuals with developmental disabilities who reside or resided in residential habilitation centers. The advisory council shall also include two members of the house of representatives appointed by the speaker of the house of representatives representing the majority and minority caucuses and two members of the senate appointed by the president of the senate representing the majority and minority caucuses. Legislative members of the advisory group shall be reimbursed in accordance with RCW 44.04.120, and nonlegislative members in accordance with RCW 43.03.050 and 44.04.120. Staff support shall be provided by the department of social and health services, the developmental disabilities council, the office of financial management, the house of representatives office of program research, and senate committee services.

      (3) $1,041,000 of the general fund--state appropriation for fiscal year 2006 and $706,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for a study that will provide an in-depth review of the policy and funding issues facing Washington's education system and will provide recommendations in the areas of finance, governance, efficiency, and accountability. The steering committee will submit findings and final recommendations by November 15, 2006.

      (4) $127,000 of the general fund--state appropriation for fiscal year 2006 and $46,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1834 (performance measures). If Substitute House Bill No. 1834 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (5) $160,000 of the general fund--state appropriation for fiscal year 2006 and $79,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Engrossed House Bill No. 2257 (state contracts). If Engrossed House Bill No. 2257 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (6) $75,000 of the general fund--state appropriation for fiscal year 2006 is provided to the office of regulatory assistance and is subject to the following conditions and limitations:

      (a) This amount is provided solely for the enhanced planning and permit pilot program; and

      (b) Regulatory assistance is to select two local government planning and permitting offices to participate in an enhanced permit assistance pilot program. Such enhancement may include, but is not limited to:

      (i) Creation of local and state interagency planning and permit review teams;

      (ii) Use of advanced online planning and permit applications;

      (iii) Using loaned executives; and

      (iv) Additional technical assistance and guidance for permit applicants.

      (7) $303,000 of the general fund--state appropriation for fiscal year 2006 and $255,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Second Substitute House Bill No. 1970 (government management). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (8) $250,000 of the general fund--state appropriation for fiscal year 2006 and $250,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for implementation of Substitute Engrossed House Bill No. 1242 (budgeting outcomes and priorities). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (9) The department of ecology, the department of fish and wildlife, the department of natural resources, the conservation commission, and the interagency committee for outdoor recreation shall make recommendations to improve or eliminate monitoring activities related to salmon recovery and watershed health. The agencies shall coordinate with the governor's forum on monitoring and watershed health and consult with the office of financial management in determining the scope and contents of the report.

      The agencies shall prepare a report detailing all new activity and updating all previously identified activity within the comprehensive monitoring strategy. The report shall identify the monitoring activity being performed and include: The purpose of the monitoring activity, when the activity started, who uses the information, how often it is accessed, what costs are incurred by fund, what frequency is used to collect data, what geographic location is used to collect data, where the information is stored, and what is the current status and cost by fund source of the data storage systems.

      The agencies shall provide a status report summarizing progress to the governor's forum on monitoring and watershed health and the office of financial management by March 1, 2006. A final report to the governor's monitoring forum, the office of financial management, and the appropriate legislative fiscal committees shall be submitted no later than September 1, 2006.

      NEW SECTION. Sec. 130. FOR THE OFFICE OF ADMINISTRATIVE HEARINGS

Administrative Hearings Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$28,870,000

      The appropriation in this section is subject to the following conditions and limitations: $103,000 of the administrative hearing revolving account--state appropriation is provided solely to determine, in collaboration with other state agencies, the best mechanism of digital recording for the office of administrative hearings, the manner of conversion from tape recording to digital recording, and the purchase of digital recording devices.

      NEW SECTION. Sec. 131. FOR THE DEPARTMENT OF PERSONNEL

Department of Personnel Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$19,858,000

Higher Education Personnel Services Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,610,000

                           TOTAL APPROPRIATION. . . . . . . $21,468,000

      The appropriations in this section are subject to the following conditions and limitations: The department shall coordinate with the governor's office of Indian affairs on providing the government-to-government training sessions for federal, state, local, and tribal government employees. The training sessions shall cover tribal historical perspectives, legal issues, tribal sovereignty, and tribal governments. Costs of the training sessions shall be recouped through a fee charged to the participants of each session. The department shall be responsible for all of the administrative aspects of the training, including the billing and collection of the fees for the training.

      NEW SECTION. Sec. 132. FOR THE WASHINGTON STATE LOTTERY

Lottery Administrative Account--State Appropriation.$23,343,000

      NEW SECTION. Sec. 133. FOR THE COMMISSION ON HISPANIC AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . . .$296,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$308,000

                           TOTAL APPROPRIATION. . . . . . . . . .$604,000

      NEW SECTION. Sec. 134. FOR THE COMMISSION ON AFRICAN-AMERICAN AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . . .$301,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$295,000

                           TOTAL APPROPRIATION. . . . . . . . . .$596,000

      NEW SECTION. Sec. 135. FOR THE PERSONNEL APPEALS BOARD

Department of Personnel Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,006,000

      NEW SECTION. Sec. 136. FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

Dependent Care Administrative Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$404,000

Department of Retirement Systems Expense Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . $43,806,000

                           TOTAL APPROPRIATION. . . . . . . $44,210,000

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

      (1) $13,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1327 (purchasing service credit). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      (2) $10,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1269 (law enforcement officers' and fire fighters' retirement system plan 2 service credit purchase). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (3) $32,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1270 (law enforcement officers' and fire fighters' retirement system plan 2 postretirement employment). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (4) $26,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1319 (law enforcement officers' and fire fighters' retirement system plan 1 ex-spouse benefits). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (5) $46,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1325 (military service credit purchase). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (6) $99,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1326 (postretirement employment). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (7) $79,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1329 (law enforcement officers' and fire fighters' retirement system plan 1 reduced survivor benefit). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (8) $56,000 of the department of retirement systems expense account appropriation is provided solely to implement House Bill No. 1936 (emergency medical technician membership in law enforcement officers' and fire fighters' retirement system plan 2 service). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 137. FOR THE STATE INVESTMENT BOARD

State Investment Board Expense Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,725,000

      NEW SECTION. Sec. 138. FOR THE DEPARTMENT OF REVENUE

General Fund--State Appropriation (FY 2006). . . . . . $87,131,000

General Fund--State Appropriation (FY 2007). . . . . . $86,327,000

Timber Tax Distribution Account--State Appropriation$5,446,000

Waste Reduction/Recycling/Litter Control--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$104,000

State Toxics Control Account--State Appropriation. . . . . . $69,000

Oil Spill Prevention Account--State Appropriation. . . . . . $14,000

                           TOTAL APPROPRIATION. . . . . . $179,091,000

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

      (1) $135,000 of the general fund--state appropriation for fiscal year 2006 and $119,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1096 (tax expenditure reports). If House Bill No. 1096 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (2) $11,000 of the general fund--state appropriation for fiscal year 2006 and $11,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2163 (homeless housing program). If Engrossed Second Substitute House Bill No. 2163 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 139. FOR THE BOARD OF TAX APPEALS

General Fund--State Appropriation (FY 2006). . . . . . . $1,350,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,182,000

                           TOTAL APPROPRIATION. . . . . . . . $2,532,000

      NEW SECTION. Sec. 140. FOR THE MUNICIPAL RESEARCH COUNCIL

County Research Services Account--State Appropriation.$787,000

City and Town Research Services Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,134,000

                           TOTAL APPROPRIATION. . . . . . . . $4,921,000

      NEW SECTION. Sec. 141. FOR THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

OMWBE Enterprises Account--State Appropriation. . .$3,094,000

      The appropriation in this section is subject to the following conditions and limitations: $180,000 of the OMWBE enterprises account appropriation is provided solely for management of private sector grants and coordination of support services to small businesses in the state. It is the intent of the legislature that this amount be funded from new grant revenues and business fees.

      NEW SECTION. Sec. 142. FOR THE DEPARTMENT OF GENERAL ADMINISTRATION

General Fund--State Appropriation (FY 2006). . . . . . . . .$318,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$228,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $3,634,000

General Administration Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$30,559,000

                           TOTAL APPROPRIATION. . . . . . . $34,739,000

      The appropriations in this section are subject to the following conditions and limitations: $75,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the implementation of House Bill No. 1830 (alternative public works). If Engrossed Substitute House Bill No. 1830 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      NEW SECTION. Sec. 143. FOR THE DEPARTMENT OF INFORMATION SERVICES

Data Processing Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $3,552,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$684,000

                           TOTAL APPROPRIATION. . . . . . . . $4,236,000

      NEW SECTION. Sec. 144. FOR THE INSURANCE COMMISSIONER

General Fund--Federal Appropriation. . . . . . . . . . . . . . . .$655,000

Insurance Commissioners Regulatory Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$39,304,000

                           TOTAL APPROPRIATION. . . . . . . $39,959,000

      NEW SECTION. Sec. 145. FOR THE BOARD OF ACCOUNTANCY

Certified Public Accountants' Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,931,000

      NEW SECTION. Sec. 146. FOR THE FORENSIC INVESTIGATION COUNCIL

Death Investigations Account--State Appropriation. . . . .$282,000

      The appropriation in this section is subject to the following conditions and limitations: $250,000 of the death investigation account appropriation is provided solely for providing financial assistance to local jurisdictions in multiple death investigations. The forensic investigation council shall develop criteria for awarding these funds for multiple death investigations involving an unanticipated, extraordinary, and catastrophic event or those involving multiple jurisdictions.

      NEW SECTION. Sec. 147. FOR THE HORSE RACING COMMISSION

Horse Racing Commission Operating Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,878,000

      NEW SECTION. Sec. 148. FOR THE LIQUOR CONTROL BOARD

General Fund--State Appropriation (FY 2006). . . . . . . $1,528,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,521,000

Liquor Control Board Construction and Maintenance

      Account--State Appropriation. . . . . . . . . . . . . . . . $12,832,000

Liquor Revolving Account--State Appropriation. . . .$149,624,000

                           TOTAL APPROPRIATION. . . . . . $165,505,000

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

      (1) As authorized under RCW 66.16.010, the liquor control board shall add an equivalent surcharge of $0.42 per liter on all retail sales of spirits, excluding licensee, military and tribal sales, effective no later than July 1, 2005. The intent of this surcharge is to generate additional revenues for the state general fund in the 2005-07 biennium.

      (2) $154,000 of the liquor revolving account--state appropriation is provided solely for the lease of state vehicles from the department of general administration's motor pool.

      (3) $2,228,000 of the liquor revolving account--state appropriation is provided solely for costs associated with the installation of a wide area network that connects all of the state liquor stores and the liquor control board headquarters.

      (4) $2,261,000 of the liquor revolving account--state appropriation is provided solely for replacement of essential computer equipment, improvement of security measures, and improvement to the core information technology infrastructure.

      (5) $2,800,000 of the liquor control board construction and maintenance account--state appropriation is provided solely for the certificate of participation to fund the expansion of the liquor distribution center.

      (6) $3,233,000 of the liquor revolving account--state appropriation is provided solely for upgrades to material handling system and warehouse management system software and equipment, and associated staff to increase the liquor distribution center's shipping capacity.

      (7) $2,746,000 of the liquor revolving account--state appropriation is provided solely for additional state liquor store and retail business analysis staff. The additional liquor store staff will be deployed to those stores with the greatest potential for increased customer satisfaction and revenue growth. The liquor control board, using the new retail business analysis staff and, if needed, an independent consultant, will analyze the impact of additional staff on customer satisfaction and revenue growth and make recommendations that will increase the effectiveness and efficiency of all the liquor control board's retail-related activities. Using best practices and benchmarks from comparable retail organizations, the analysis will evaluate and make recommendations, at a minimum, on the following issues: Optimal staffing levels and store locations and numbers of stores (both state liquor stores and contract liquor stores); options for an improved retail organizational structure; strategies to increase the retail decision-making capacity; and resources required for enhanced internal organizational support of the retail activities. In support of this evaluation, a survey shall be employed to gauge customer satisfaction with state and contract liquor store services. A written evaluation with recommendations shall be submitted to the governor and the legislative fiscal committees by October 1, 2006.

      (8) $715,000 of the liquor revolving account--state appropriation for fiscal year 2006 and $720,000 of the liquor revolving account--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1379 (liquor retail business plan). If House Bill No. 1379 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 149. FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Public Service Revolving Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$27,787,000

Pipeline Safety Account--State Appropriation. . . . . . . .$2,827,000

Pipeline Safety Account--Federal Appropriation. . . . . .$1,476,000

                           TOTAL APPROPRIATION. . . . . . . $32,090,000

      NEW SECTION. Sec. 150. FOR THE BOARD FOR VOLUNTEER FIREFIGHTERS

Volunteer Firefighters' and Reserve Officers'

      Administrative Account--State Appropriation. . . . . . $750,000

      NEW SECTION. Sec. 151. FOR THE MILITARY DEPARTMENT

General Fund--State Appropriation (FY 2006). . . . . . . $9,071,000

General Fund--State Appropriation (FY 2007). . . . . . . $9,024,000

General Fund--Federal Appropriation. . . . . . . . . . . . $165,137,000

Enhanced 911 Account--State Appropriation. . . . . . . .$34,705,000

Disaster Response Account--State Appropriation. . . . . $2,277,000

Disaster Response Account--Federal Appropriation. . $11,008,000

Worker and Community Right-to-Know Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$302,000

Nisqually Earthquake Account--State Appropriation. . .$6,687,000

Nisqually Earthquake Account--Federal Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$29,052,000

Military Department Rental and Lease Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$378,000

                           TOTAL APPROPRIATION. . . . . . $267,641,000

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

      (1) $2,277,000 of the disaster response account--state appropriation and $11,008,000 of the disaster response account--federal appropriation may be spent only on disasters declared by the governor and with the approval of the office of financial management. The military department shall submit a report quarterly to the office of financial management and the legislative fiscal committees detailing information on the disaster response account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2005-07 biennium based on current revenue and expenditure patterns.

      (2) $6,687,000 of the Nisqually earthquake account--state appropriation and $29,052,000 of the Nisqually earthquake account--federal appropriation are provided solely for response and recovery costs associated with the February 28, 2001, earthquake. The military department shall submit a report quarterly to the office of financial management and the legislative fiscal committees detailing earthquake recovery costs, including: (a) Estimates of total costs; (b) incremental changes from the previous estimate; (c) actual expenditures; (d) estimates of total remaining costs to be paid; and (e) estimates of future payments by biennium. This information shall be displayed by fund, by type of assistance, and by amount paid on behalf of state agencies or local organizations. The military department shall also submit a report quarterly to the office of financial management and the legislative fiscal committees detailing information on the Nisqually earthquake account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2005-07 biennium based on current revenue and expenditure patterns.

      (3) $127,586,000 of the general fund--federal appropriation is provided solely for homeland security, subject to the following conditions:

      (a) Any communications equipment purchased by local jurisdictions or state agencies shall be consistent with standards set by the Washington state interoperability executive committee;

      (b) This amount shall not be allotted until a spending plan is reviewed by the governor's domestic security advisory group and approved by the office of financial management;

      (c) The department shall submit a quarterly report to the office of financial management and the legislative fiscal committees detailing the governor's domestic security advisory group recommendations; homeland security revenues and expenditures, including estimates of total federal funding for the state; incremental changes from the previous estimate, planned and actual homeland security expenditures by the state and local governments with this federal funding; and matching or accompanying state or local expenditures; and

      (d) The department shall submit a report by December 1st of each year to the office of financial management and the legislative fiscal committees detailing homeland security revenues and expenditures for the previous fiscal year by county and legislative district.

      (4) $31,000 of the general fund--state appropriation for fiscal year 2006 and $31,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1850 (volunteer medical worker). If House Bill No. 1850 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (5) $216,000 of the general fund--state appropriation for fiscal year 2006 and $216,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1343 (National Guard life insurance). If House Bill No. 1343 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

      (6) No funds from sources other than fees from voice over internet protocol (VOIP) providers may be used to integrate VOIP 911 with E-911. Instead, any funds used for the purpose of integrating VOIP 911 with E-911 shall be collected from an appropriate fee charged to VOIP providers.

      NEW SECTION. Sec. 152. FOR THE PUBLIC EMPLOYMENT RELATIONS COMMISSION

General Fund--State Appropriation (FY 2006). . . . . . . $2,572,000

General Fund--State Appropriation (FY 2007). . . . . . . $2,574,000

Department of Personnel Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,704,000

                           TOTAL APPROPRIATION. . . . . . . . $7,850,000

      NEW SECTION. Sec. 153. FOR THE GROWTH PLANNING HEARINGS BOARD

General Fund--State Appropriation (FY 2006). . . . . . . $1,567,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,559,000

                           TOTAL APPROPRIATION. . . . . . . . $3,126,000

      The appropriations in this section are subject to the following conditions and limitations: $9,000 of the general fund--state appropriation for fiscal year 2006 and $9,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the Western Board to relocate. If the Western Board does not relocate by June 30, 2006, the amounts provided in this subsection shall lapse.

      NEW SECTION. Sec. 154. FOR THE STATE CONVENTION AND TRADE CENTER

State Convention and Trade Center Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$30,512,000

State Convention and Trade Center Operating

      Account--State Appropriation. . . . . . . . . . . . . . . . $45,983,000

                           TOTAL APPROPRIATION

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $76,495,000(End of part)

PART II

HUMAN SERVICES

    NEW SECTION. Sec. 201. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES. (1) Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

   (2) The department of social and health services shall not initiate any services that require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

   (3) The department is authorized to develop an integrated health care program designed to slow the progression of illness and disability and better manage Medicaid expenditures for the aged and disabled population. Under this Washington medicaid integration partnership (WMIP) the department may combine and transfer such Medicaid funds appropriated under sections 204, 206, 208, and 209 of this act as may be necessary to finance a unified health care plan for the WMIP program enrollment. The WMIP pilot projects shall not exceed a daily enrollment of 6,000 persons during the 2005-2007 biennium. The amount of funding assigned to the pilot projects from each program may not exceed the average per capita cost assumed in this act for individuals covered by that program, actuarially adjusted for the health condition of persons enrolled in the pilot, times the number of clients enrolled in the pilot. In implementing the WMIP pilot projects, the department may: (a) Withhold from calculations of "available resources" as set forth in RCW 71.24.025 a sum equal to the capitated rate for individuals enrolled in the pilots; and (b) employ capitation financing and risk-sharing arrangements in collaboration with health care service contractors licensed by the office of the insurance commissioner and qualified to participate in both the medicaid and medicare programs. The department shall conduct an evaluation of the WMIP, measuring changes in participant health outcomes, changes in patterns of service utilization, participant satisfaction, participant access to services, and the state fiscal impact.

   (4) In accordance with RCW 74.39A.300, the appropriations to the department of social and health services in this act are sufficient to implement the compensation and fringe benefits of the collective bargaining agreement reached between the governor and the exclusive bargaining representative of individual providers of home care services.

   NEW SECTION. Sec. 202. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--CHILDREN AND FAMILY SERVICES PROGRAM

General Fund--State Appropriation (FY 2006). . . . . $249,100,000

General Fund--State Appropriation (FY 2007). . . . . $260,089,000

General Fund--Federal Appropriation. . . . . . . . . . . . $423,111,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $400,000

Public Safety and Education Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12,461,000

Violence Reduction and Drug Enforcement Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,510,000

                   TOTAL APPROPRIATION. . . . . . . . . . $946,671,000

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

    (1) $375,000 of the general fund--state fiscal year 2006 appropriation, $375,000 of the general fund--state fiscal year 2007 appropriation, and $322,000 of the general fund--federal appropriation are provided for up to three nonfacility-based programs for the training, consultation, support, and recruitment of biological, foster, and adoptive parents of children through age three in need of special care as a result of substance abuse by their mothers, except that each program may serve up to three medically fragile nonsubstance-abuse-affected children. In selecting nonfacility-based programs, preference shall be given to programs whose federal or private funding sources have expired or that have successfully performed under the existing pediatric interim care program.

    (2) $125,000 of the general fund--state appropriation for fiscal year 2004 and $125,000 of the general fund--state appropriation for fiscal year 2005 are provided solely for a foster parent retention program. This program is directed at foster parents caring for children who act out sexually.

    (3) The providers for the 31 HOPE beds shall be paid a $1,000 base payment per bed per month, and reimbursed for the remainder of the bed cost only when the beds are occupied.

    (4) Within amounts provided for the foster care and adoption support programs, the department shall control reimbursement decisions for foster care and adoption support cases such that the aggregate average cost per case for foster care and for adoption support does not exceed the amounts assumed in the projected caseload expenditures. The department shall adjust adoption support benefits to account for the availability of the new federal adoption support tax credit for special needs children. The department shall report annually by October 1st to the appropriate committees of the legislature on the specific efforts taken to contain costs.

    (5) $4,135,000 of the general fund--state appropriation for fiscal year 2006, $5,665,000 of the general fund--state appropriation for fiscal year 2007, and $3,557,000 of the general fund--federal appropriation are provided solely for reforms to the child protective services and child welfare services programs, including 30-day face-to-face contact for children in out-of-home care, improved timeliness of child protective services investigations, an enhanced in-home child welfare services program, and education specialist services. The department shall report by December 1st of each year on the implementation status of the enhancements, including the hiring of new staff, and the outcomes of the reform efforts. The information provided shall include a progress report on items in the child and family services review program improvement plan and areas identified for improvement in the Brame lawsuit settlement.

    (6) Within amounts appropriated in this section, priority shall be given to proven intervention models, including evidence-based prevention and early intervention programs identified by the Washington institute for public policy and the department. The department shall include information on the number, type, and outcomes of the evidence-based programs being implemented in its reports on child welfare reform efforts.

    (7) $5,282,000 of the general fund--state appropriation for fiscal year 2007 and $3,521,000 of the general fund--federal appropriation are provided solely for the design, development, and initial implementation of a new automated child welfare information system to replace the existing case and management information system.

    NEW SECTION. Sec. 203. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--JUVENILE REHABILITATION PROGRAM

General Fund--State Appropriation (FY 2006). . . . . . $75,899,000

General Fund--State Appropriation (FY 2007). . . . . . $76,215,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $5,879,000

General Fund--Private/Local Appropriation. . . . . . . . . .$1,098,000

Violence Reduction and Drug Enforcement Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$37,967,000

Juvenile Accountability Incentive Account--Federal

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$5,528,000

Reinvesting in Youth Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $997,000

                   TOTAL APPROPRIATION. . . . . . . . . . $203,583,000

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

   (1) $706,000 of the violence reduction and drug enforcement account appropriation is provided solely for deposit in the county criminal justice assistance account for costs to the criminal justice system associated with the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county adult court costs associated with the implementation of chapter 338, Laws of 1997 and shall be distributed in accordance with RCW 82.14.310.

   (2) $6,156,000 of the violence reduction and drug enforcement account appropriation is provided solely for the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county impacts associated with the implementation of chapter 338, Laws of 1997 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula.

   (3) $1,186,000 of the general fund--state appropriation for fiscal year 2006, $1,197,000 of the general fund--state appropriation for fiscal year 2007, and $5,208,000 of the violence reduction and drug enforcement account appropriation are provided solely to implement community juvenile accountability grants pursuant to chapter 338, Laws of 1997 (juvenile code revisions). Funds provided in this subsection may be used solely for community juvenile accountability grants, administration of the grants, and evaluations of programs funded by the grants.

   (4) $2,518,000 of the violence reduction and drug enforcement account appropriation is provided solely to implement alcohol and substance abuse treatment programs for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that submitted a plan for the provision of services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

   (5) For the purposes of a pilot project, the juvenile rehabilitation administration shall provide a block grant, rather than categorical funding, for consolidated juvenile services, community juvenile accountability act grants, the chemically dependent disposition alternative, and the special sex offender disposition alternative to the Pierce county juvenile court. To evaluate the effect of decategorizing funding for youth services, the juvenile court shall do the following:

   (a) Develop intermediate client outcomes according to the risk assessment tool (RAT) currently used by juvenile courts and in coordination with the juvenile rehabilitation administration;

   (b) Track the number of youth participating in each type of service, intermediate outcomes, and the incidence of recidivism within twenty-four months of completion of services;

   (c) Track similar data as in (b) of this subsection with an appropriate comparison group, selected in coordination with the juvenile rehabilitation administration and the family policy council;

   (d) Document the process for managing block grant funds on a quarterly basis, and provide this report to the juvenile rehabilitation administration and the family policy council; and

   (e) Provide a process evaluation to the juvenile rehabilitation administration and the family policy council by June 20, 2006, and a concluding report by June 30, 2007. The court shall develop this evaluation in consultation with the juvenile rehabilitation administration, the family policy council, and the Washington state institute for public policy.

    (6) $997,000 of the reinvesting in youth account--state appropriation is provided solely for the implementation of Second Substitute House Bill No. 1483 (investing in youth program). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (7) $16,000 of the general fund--state appropriation for fiscal year 2006 and $16,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of chapter 167, Laws of 1999 (firearms on school property). The amounts provided in this subsection are intended to provide funding for county impacts associated with the implementation of chapter 167, Laws of 1999, and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula.

    NEW SECTION. Sec. 204. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MENTAL HEALTH PROGRAM

    (1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund--State Appropriation (FY 2006). . . . . $254,899,000

General Fund--State Appropriation (FY 2007). . . . . $260,942,000

General Fund--Federal Appropriation. . . . . . . . . . . . $331,584,000

General Fund--Private/Local Appropriation. . . . . . . . . .$1,970,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$849,395,000

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

    (a) From the general fund--state appropriations in this subsection, the secretary of social and health services shall assure that regional support networks reimburse the aging and disability services administration for the general fund--state cost of medicaid personal care services that enrolled regional support network consumers use because of their psychiatric disability.

    (b) Within amounts appropriated in this subsection, the department shall contract with the Clark county regional support network for development and operation of a project demonstrating collaborative methods for providing intensive mental health services in the school setting for severely emotionally disturbed children who are medicaid eligible. Project services shall be delivered by teachers and teaching assistants who qualify as, or who are under the supervision of, mental health professionals meeting the requirements of chapter 275-57 WAC. The department shall increase medicaid payments to the regional support network by the amount necessary to cover the necessary and allowable costs of the demonstration, not to exceed the upper payment limit specified for the regional support network in the department's medicaid waiver agreement with the federal government after meeting all other medicaid spending requirements assumed in this subsection. The regional support network shall provide the required nonfederal share of the increased medicaid payment provided for operation of this project.

    (c) $3,100,000 of the general fund--state appropriation for fiscal year 2006 and $3,375,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to establish a base community psychiatric hospitalization payment rate. The base payment rate shall be $400 per indigent patient day at hospitals that accept commitments under the involuntary treatment act, and $550 per medicaid patient day at free-standing psychiatric hospitals that accept commitments under the involuntary treatment act. The department shall allocate these funds among the regional support networks to reflect projected expenditures at the enhanced payment level by hospital and region.

    (d) At least $902,000 of the federal block grant funding appropriated in this subsection shall be used for the continued operation of the mentally ill offender pilot program.

    (e) $2,146,000 of the general fund--state appropriation for fiscal year 2006, $4,408,000 of the general fund--state appropriation for fiscal year 2007, and $4,559,000 of the general fund--federal appropriation are provided solely for a vendor rate increase to regional support networks for medicaid and nonmedicaid services, to the extent that: Amounts provided in this subsection (1) to serve medicaid clients through regional support networks are sufficient to ensure compliance with federally approved actuarially sound medicaid rate ranges in every rate category. If such amounts are not sufficient to ensure compliance, funds provided in this subsection (1)(e) shall first be applied to address any noncompliant rate category; remaining amounts shall be allocated among the regional support networks by applying a uniform percentage of increase across regional support networks.

   (f) $104,500,000 of the general fund--state appropriation for fiscal year 2006 and $104,500,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for persons and services not covered by the medicaid program, contingent upon the enactment of House Bill No. 1290 (community mental health). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse. Of these amounts:

   (i) $ 7,500,000 of the general fund--state appropriation for fiscal year 2006 and $7,500,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for mental health services for mentally ill offenders while confined in a county or city jail, and for access to programs that offer mental health services upon mentally ill offenders' release from confinement. These amounts shall supplement, and not supplant, local or other funding or in-kind resources currently being used for these purposes.

   (ii) $2,500,000 of the general fund--state appropriation for fiscal year 2006 and $2,500,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for grants for innovative mental health service delivery projects. Such projects may include, but are not limited to, clubhouse programs and projects for integrated health care and behavioral health services for general assistance recipients. These amounts shall supplement, and not supplant, local or other funding currently being used for activities funded under the projects authorized in this subsection.

   (iii) $550,000 of the general fund--state appropriation for fiscal year 2006 and $150,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for a pilot project to provide integrated care through a long-term rehabilitation facility that specializes in caring for people with chronic mental illness.

   (iv) Consistent with RCW 71.24.035(13), the department shall distribute the remaining amounts among the regional support networks as follows:

   (A) The department shall determine the level of spending in each regional support network for the fiscal year 2003 and fiscal year 2004 for services in institutes for mental disease and community inpatient hospital, intensive residential, and other licensed residential facilities. Funds shall be distributed in a manner that assures continuation of previous levels of these services in each regional support network area; and

   (B) Funds remaining following the distribution in (f)(iv)(A) of this subsection shall be distributed based upon a formula that incorporates each regional support network's percentage of the state's population.

   (v) To ensure that a consistent level of services are available to nonmedicaid clients across regional support networks, the department and the regional support networks shall utilize medicaid access to care standards for the nonmedicaid client population beginning November 1, 2005.

   (2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2006). . . . . . $99,819,000

General Fund--State Appropriation (FY 2007). . . . . . $99,459,000

General Fund--Federal Appropriation. . . . . . . . . . . . $148,250,000

General Fund--Private/Local Appropriation. . . . . . . . .$29,850,000

                   TOTAL APPROPRIATION. . . . . . . . . . $377,378,000

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

   (a) The state mental hospitals may use funds appropriated in this subsection to purchase goods and supplies through hospital group purchasing organizations when it is cost-effective to do so.

    (b) $3,541,000 of the general fund--state appropriation for fiscal year 2006 and $3,410,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to operate at least one more forensic ward at western state hospital than was operational in December 2004, and to employ professional staff in addition to those assigned in December 2004 to conduct outpatient evaluations of competency to stand trial.

    (c) $45,000 of the general fund--state appropriation for fiscal year 2006 and $45,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for payment to the city of Lakewood on September 1 of each year for police services provided by the city at western state hospital and adjacent areas.

    (3) CIVIL COMMITMENT

General Fund--State Appropriation (FY 2006). . . . . . $42,791,000

General Fund--State Appropriation (FY 2007). . . . . . $45,269,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . $88,060,000

    (4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 2006). . . . . . . . .$464,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$769,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $2,865,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . .$4,098,000

    The appropriations in this subsection are subject to the following conditions and limitations: $75,000 of the general fund--state appropriation for fiscal year 2006, $75,000 of the general fund--state appropriation for fiscal year 2007, and $40,000 of the general fund--federal appropriation are provided solely to implement the request for proposal process required by House Bill No. 1290 (community mental health). If House Bill No. 1290 is not enacted by June 30, 2005, these amounts shall lapse.

    (5) PROGRAM SUPPORT

General Fund--State Appropriation (FY 2006). . . . . . . $3,553,000

General Fund--State Appropriation (FY 2007). . . . . . . $3,431,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $6,529,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . $13,513,000

    The appropriations in this subsection are subject to the following conditions and limitations: $125,000 of the general fund--state appropriation for fiscal year 2006, $125,000 of the general fund--state appropriation for fiscal year 2007, and $164,000 of the general fund--federal appropriation are provided solely for the institute for public policy to continue the longitudinal analysis directed in chapter 334, Laws of 2001 (mental health performance audit), and, to the extent funds are available within these amounts, to build upon the evaluation of the impacts of chapter 214, Laws of 1999 (mentally ill offenders).

    NEW SECTION. Sec. 205. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--DEVELOPMENTAL DISABILITIES PROGRAM

    (1) COMMUNITY SERVICES

General Fund--State Appropriation (FY 2006). . . . . $298,786,000

General Fund--State Appropriation (FY 2007). . . . . $311,505,000

General Fund--Federal Appropriation. . . . . . . . . . . . $504,612,000

Health Services Account--State Appropriation. . . . . . . . .$904,000

                 TOTAL APPROPRIATION. . . . . . . . . $1,115,807,000

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

    (a) $213,000 of the general fund--state appropriation for fiscal year 2006, $422,000 of the general fund--state appropriation for fiscal year 2007, and $600,000 of the general fund--federal appropriation are provided solely to increase compensation for direct care workers employed by home care agencies by 27 cents per hour on July 1, 2005, and by an additional 23 cents per hour on July 1, 2006. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

    (b) The entire health services account appropriation and $904,000 of the general fund--federal appropriation are provided solely for health care benefits for agency home care workers who are employed through state contracts for at least twenty hours a week.

   (i) For the period of July 1, 2005, through December 31, 2005, home care agencies may obtain coverage either through the basic health plan or through an alternative plan that provides substantially equivalent benefits.

   (ii) The department, in consultation with the health care authority, shall establish a health benefits purchasing cooperative for agency home care workers. The health benefits offered through the cooperative shall provide substantially equivalent benefits to the 2003 basic health plan benefits package. The cooperative shall offer coverage beginning January 1, 2006.

   (iii) Beginning January 1, 2006, home care agencies must obtain coverage either through the basic health plan, the health benefits purchasing cooperative established in (b)(ii) of this subsection, or the Taft Hartley trust established in accordance with the collective bargaining agreement for individual providers of home care services.

   (c) Individuals receiving family support or high school transition payments as supplemental security income (SSI) state supplemental payments shall not become eligible for medical assistance under RCW 74.09.510 due solely to the receipt of SSI state supplemental payments.

   (d) $712,000 of the general fund--state appropriation for fiscal year 2006, $1,955,000 of the general fund--state appropriation for fiscal year 2007, and $2,667,000 of the general fund--federal appropriation are provided solely for community residential and support services. Funding in this subsection shall be prioritized for (i) residents of residential habilitation centers who are able to be adequately cared for in community settings and who choose to live in those community settings; (ii) clients without residential services who are at immediate risk of institutionalization or in crisis; (iii) children who are aging out of other state services; (iv) children who require an out-of-home placement because of the intense level of support required to care for them in the home; and (v) current home and community-based waiver program clients who have been assessed as having an immediate need for increased services. The department shall ensure that the average cost per day for all program services other than start-up costs shall not exceed $300. In order to maximize the number of clients served and ensure the cost-effectiveness of the waiver programs, the department will strive to limit new client placement expenditures to 90 percent of the budgeted daily rate. If this can be accomplished, additional clients may be served with excess funds provided the total projected carry-forward expenditures do not exceed the amounts estimated. The department shall electronically report to the appropriate committees of the legislature, within 45 days following each fiscal year quarter, the number of persons served with these additional community services, where they were residing, what kinds of services they were receiving prior to placement, and the actual expenditures for all community services to support these clients.

   (e) $579,000 of the general fund--state appropriation for fiscal year 2006, $1,531,000 of the general fund--state appropriation for fiscal year 2007, and $2,110,000 of the general fund--federal appropriation are provided solely for expanded community services for persons with developmental disabilities who also have community protection issues. Funding in this subsection shall be prioritized for (i) clients being diverted or discharged from the state psychiatric hospitals; (ii) clients participating in the dangerous mentally ill offender program; (iii) clients participating in the community protection program; and (iv) mental health crisis diversion outplacements. The department shall ensure that the average cost per day for all program services other than start-up costs shall not exceed $300. In order to maximize the number of clients served and ensure the cost-effectiveness of the waiver programs, the department will strive to limit new client placement expenditures to 90 percent of the budgeted daily rate. If this can be accomplished, additional clients may be served with excess funds if the total projected carry-forward expenditures do not exceed the amounts estimated. The department shall implement the four new waiver programs such that decisions about enrollment levels and the amount, duration, and scope of services maintain expenditures within appropriations. The department shall electronically report to the appropriate committees of the legislature, within 45 days following each fiscal year quarter, the number of persons served with these additional community services, where they were residing, what kinds of services they were receiving prior to placement, and the actual expenditures for all community services to support these clients.

    (f) $900,000 of the general fund--state appropriation for fiscal year 2006 and $2,000,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of a flexible family support pilot program for families who are providing care and support for family members with developmental disabilities. The program shall provide funding for support services such as respite care, training and counseling, assistive technologies, transition services, and assistance with extraordinary household expenses.

    (i) To receive funding, an individual must: (A) Be eligible for services from the division of developmental disabilities; (B) live with his or her family; (C) not live independently or with a spouse; (D) not receive paid services through the division, including medicaid personal care and medicaid waiver services; and (E) have gross household income of less than or equal to four hundred percent of the federal poverty level.

    (ii) The department shall determine individual funding awards based on the following criteria: (A) Documented need for services, with priority given to individuals in crisis or at immediate risk of needing institutional services, individuals who transition from high school without employment or day program opportunities, individuals cared for by a single parent, and individuals with multiple disabilities; (B) number and ages of family members and their relation to the individual with developmental disabilities; (C) gross annual household income; and (D) availability of state funds.

    Funding awards may be made as one-time awards or on a renewable basis. Renewable awards shall be for a period of twelve months for the biennium. Awards shall be based upon the criteria provided in this subsection, but shall be within the following limits: Maximum of $4,000 per year for an individual whose gross annual household income is up to 100 percent of the federal poverty level; maximum of $3,000 per year for an individual whose gross annual household income is up to 200 percent of the federal poverty level; maximum of $2,000 per year for an individual whose gross annual household income is up to 300 percent of the federal poverty level; and maximum of $1,000 per year for an individual whose gross annual household income is up to 400 percent of the federal poverty level. Of the amounts provided in this subsection, $150,000 of the general fund--state appropriation for fiscal year 2006 and $300,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for one-time awards.

    (iii) Eligibility for, and the amount of, renewable awards and one-time awards shall be redetermined annually and shall correspond with the application of the department's mini-assessment tool. At the end of each award period, the department must redetermine eligibility for funding, including increases or reductions in the level of funding, as appropriate.

    (iv) By November 1, 2006, the department shall provide recommendations to the appropriate policy and fiscal committees of the legislature on strategies for integrating state-funded family support programs, including, if appropriate, the flexible family support pilot program, into a single program. The department shall also provide a status report on the flexible family support pilot program, which shall include the following information: The number of applicants for funding; the total number of awards; the number and amount of both annual and one-time awards, broken down by household income levels; and the purpose of the awards.

   (v) The department shall manage enrollment and award levels so as to not exceed the amounts appropriated for this purpose.

   (g) $840,000 of the general fund--state appropriation for fiscal year 2006, $1,979,000 of the general fund--state appropriation for fiscal year 2007, and $1,219,000 of the general fund--federal appropriation are provided solely for employment and day services. Priority consideration for this new funding shall be young adults with developmental disabilities living with their family who need employment opportunities and assistance after high school graduation. Services shall be provided for both waiver and nonwaiver clients.

   (h) $1,000,000 of the general fund--state appropriation for fiscal year 2006, $1,000,000 of the general fund--state appropriation for fiscal year 2007, and $2,000,000 of the general fund--federal appropriation are provided for implementation of the administrative rate standardization. These amounts are in addition to any vendor rate increase adopted by the legislature.

   (i) $100,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for services to community clients provided by licensed professionals at the state residential habilitation centers. The division shall submit claims for reimbursement for services provided to clients living in the community with medical assistance or third-party health coverage, as appropriate, and shall implement a system for billing clients without coverage. The department shall provide a report by December 1, 2006, to the appropriate committees of the legislature on the number of clients served, services provided, and expenditures and revenues associated with those services.

   (j) $65,000 of the general fund--state appropriation for fiscal year 2006, $65,000 of the general fund--state appropriation for fiscal year 2007, and $130,000 of the general fund--federal appropriation are provided solely for supplemental compensation increases for direct care workers employed by home care agencies in recognition of higher labor market cost pressures experienced by agencies subject to collective bargaining obligations. In order for a specific home care agency to be eligible for such increases, home care agencies shall submit the following to the department:

   (i) Proof of a legally binding, written commitment to increase the compensation of agency home care workers; and

   (ii) Proof of the existence of a method of enforcement of the commitment, such as arbitration, that is available to the employees or their representative, and proof that such a method is expeditious, uses a neutral decision maker, and is economical for the employees.

   (2) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2006). . . . . . $73,857,000

General Fund--State Appropriation (FY 2007). . . . . . $73,780,000

General Fund--Federal Appropriation. . . . . . . . . . . . $146,082,000

General Fund--Private/Local Appropriation. . . . . . . . .$12,000,000

                   TOTAL APPROPRIATION. . . . . . . . . . $305,719,000

   The appropriations in this subsection are subject to the following conditions and limitations: The developmental disabilities program is authorized to use funds appropriated in this section to purchase goods and supplies through direct contracting with vendors when the program determines it is cost-effective to do so.

   (3) PROGRAM SUPPORT

General Fund--State Appropriation (FY 2006). . . . . . . $2,398,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,963,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $2,931,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $7,292,000

   The appropriations in this subsection are subject to the following conditions and limitations: $578,000 of the general fund--state appropriation for fiscal year 2006 and $578,000 of the general fund--federal appropriation are provided solely for the purpose of developing and implementing a consistent needs assessment instrument for use on all clients with developmental disabilities. In developing the instrument, the department shall develop a process for collecting data on family income for minor children with developmental disabilities and all individuals who are receiving state-only funded services. The department shall ensure that this information is captured as part of the client assessment process.

    (4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 2006). . . . . . . . . . .$6,000

General Fund--State Appropriation (FY 2007). . . . . . . . . . .$2,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $16,597,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . $16,605,000

    NEW SECTION. Sec. 206. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--AGING AND ADULT SERVICES PROGRAM

General Fund--State Appropriation (FY 2006). . . . . $605,974,000

General Fund--State Appropriation (FY 2007). . . . . $618,528,000

General Fund--Federal Appropriation. . . . . . . . . . .$1,262,121,000

General Fund--Private/Local Appropriation. . . . . . . . .$18,779,000

Health Services Account--State Appropriation. . . . . . . $4,888,000

                 TOTAL APPROPRIATION. . . . . . . . . $2,510,290,000

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

    (1) The entire health services account appropriation, $610,000 of the general fund--state appropriation for fiscal year 2006, $610,000 of the general fund--state appropriation for fiscal year 2007, and $5,552,000 of the general fund--federal appropriation are provided solely for health care benefits for agency home care workers who are employed through state contracts for at least twenty hours a week.

    (a) For the period of July 1, 2005 through December 31, 2005, home care agencies may obtain coverage either through the basic health plan or through an alternative plan that provides substantially equivalent benefits.

    (b) The department, in consultation with the health care authority, shall establish a health benefits purchasing cooperative for agency home care workers. The health benefits offered through the cooperative shall provide substantially equivalent benefits to the 2003 basic health plan benefits package. The cooperative shall offer coverage beginning January 1, 2006.

    (c) Beginning January 1, 2006, home care agencies must obtain coverage either through the basic health plan, the health benefits purchasing cooperative established in (b) of this subsection, or the Taft Hartley trust established in accordance with the collective bargaining agreement for individual providers of home care services.

    (2) For purposes of implementing chapter 74.46 RCW, the weighted average nursing facility payment rate shall not exceed $150.55 for fiscal year 2006 and shall not exceed $153.17 for fiscal year 2007.

    (3) In accordance with chapter 74.46 RCW, the department shall issue certificates of capital authorization that result in up to $16 million of increased asset value completed and ready for occupancy in fiscal year 2006; up to $16 million of increased asset value completed and ready for occupancy in fiscal year 2007; and up to $16 million of increased asset value completed and ready for occupancy in fiscal year 2008.

    (4) Adult day health services shall not be considered a duplication of services for persons receiving care in long-term care settings licensed under chapter 18.20, 72.36, or 70.128 RCW.

    (5) In accordance with chapter 74.39 RCW, the department may implement two medicaid waiver programs for persons who do not qualify for such services as categorically needy, subject to federal approval and the following conditions and limitations:

    (a) One waiver program shall include coverage of care in community residential facilities. Enrollment in the waiver shall not exceed 600 persons at any time.

    (b) The second waiver program shall include coverage of in-home care. Enrollment in this second waiver shall not exceed 200 persons at any time.

    (c) The department shall identify the number of medically needy nursing home residents, and enrollment and expenditures on each of the two medically needy waivers, on monthly management reports.

   (d) If it is necessary to establish a waiting list for either waiver because the budgeted number of enrollment opportunities has been reached, the department shall track how the long-term care needs of applicants assigned to the waiting list are met.

   (6) $1,413,000 of the general fund--state appropriation for fiscal year 2006, $2,887,000 of the general fund--state appropriation for fiscal year 2007, and $4,305,000 of the general fund--federal appropriation are provided solely to increase compensation for direct care workers employed by home care agencies by 27 cents per hour on July 1, 2005, and by an additional 23 cents per hour on July 1, 2006. The amounts in this subsection also include the funds needed for the employer share of unemployment and social security taxes on the amount of the increase.

   (7) $1,786,000 of the general fund--state appropriation for fiscal year 2006 and $1,804,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for operation of the volunteer chore services program.

   (8) The department shall establish waiting lists to the extent necessary to assure that annual expenditures on the community options program entry systems (COPES) program do not exceed appropriated levels. In establishing and managing any such waiting list, the department shall assure priority access to persons with the greatest unmet needs, as determined by department assessment processes.

   (9) $93,000 of the general fund--state appropriation for fiscal year 2006, $8,000 of the general fund--state appropriation for fiscal year 2007, and $101,000 of the general fund--federal appropriation are provided solely to expand the number of boarding homes that receive exceptional care rates for persons with Alzheimer's disease and related dementias who might otherwise require nursing home care. The department may expand the number of licensed boarding home facilities that specialize in caring for such conditions by up to 85 beds in fiscal year 2006 and up to 150 beds in fiscal year 2007.

   (10) $305,000 of the general fund--state appropriation for fiscal year 2006 and $377,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the senior farmer's market nutrition program.

   (11) Within amounts appropriated in this section, the department shall develop and implement a pilot program that authorizes assisted living facilities to offer dual-occupancy accommodations to publicly-funded residents who would otherwise be placed in a skilled nursing facility or adult family home. The pilot shall include contracted assisted living facilities that are ineligible to receive capital add-on payments and whose Medicaid occupancy rates exceeded 50 percent as of December 31, 2004.

   (12) $109,000 of the general fund--state appropriation for fiscal year 2006, $90,000 of the general fund--state appropriation for fiscal year 2007, and $198,000 of the general fund--federal appropriation are provided solely for the implementation of Second Substitute House Bill No. 1220 (long-term care financing). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   (13) $150,000 of the general fund--state appropriation for fiscal year 2006 and $150,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for area agencies on aging, or entities with which area agencies on aging contract, to provide a kinship navigator for grandparents and other kinship caregivers of children in both western and eastern Washington.

   (a) Kinship navigator services shall include but not be limited to assisting kinship caregivers with understanding and navigating the system of services for children in out-of-home care while reducing barriers faced by kinship caregivers when accessing services.

   (b) In providing kinship navigator services, area agencies on aging shall give priority to helping kinship caregivers maintain their caregiving role by helping them access existing services and supports, thus keeping children from entering foster care.

    (14) $435,000 of the general fund--state appropriation for fiscal year 2006, $435,000 of the general fund--state appropriation for fiscal year 2007, and $870,000 of the general fund--federal appropriation are provided solely for supplemental compensation increases for direct care workers employed by home care agencies in recognition of higher labor market cost pressures experienced by agencies subject to collective bargaining obligations. In order for a specific home care agency to be eligible for such increases, home care agencies shall submit the following to the department:

    (i) Proof of a legally binding, written commitment to increase the compensation of agency home care workers; and

    (ii) Proof of the existence of a method of enforcement of the commitment, such as arbitration, that is available to the employees or their representative, and proof that such a method is expeditious, uses a neutral decision maker, and is economical for the employees.

    NEW SECTION. Sec. 207. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ECONOMIC SERVICES PROGRAM

General Fund--State Appropriation (FY 2006). . . . . $474,763,000

General Fund--State Appropriation (FY 2007). . . . . $479,411,000

General Fund--Federal Appropriation. . . . . . . . . . .$1,238,190,000

General Fund--Private/Local Appropriation. . . . . . . . .$31,466,000

                 TOTAL APPROPRIATION. . . . . . . . . $2,223,830,000

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

    (1) $273,333,000 of the general fund--state appropriation for fiscal year 2006, $273,333,000 of the general fund--state appropriation for fiscal year 2007, and $1,020,292,000 of the general fund--federal appropriation are provided solely for all components of the WorkFirst program. Within the amounts provided for the WorkFirst program, the department shall:

    (a) Continue to implement WorkFirst program improvements that are designed to achieve progress against outcome measures specified in RCW 74.08A.410. Outcome data regarding job retention and wage progression shall be reported quarterly to appropriate fiscal and policy committees of the legislature for families who leave assistance, measured after 12 months, 24 months, and 36 months. The department shall also report the percentage of families who have returned to temporary assistance for needy families after 12 months, 24 months, and 36 months; and

    (b) Submit a report by October 1, 2005, to the fiscal committees of the legislature containing a spending plan for the WorkFirst program. The plan shall identify how spending levels in the 2005-2007 biennium will be adjusted to stay within available federal grant levels and the appropriated state-fund levels.

    (2) $75,833,000 of the general fund--state appropriation for fiscal year 2006 and $74,358,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for cash assistance and other services to recipients in the general assistance--unemployable program. Within these amounts:

    (a) The department may expend funds for services that assist recipients to obtain employment and reduce their dependence on public assistance, provided that expenditures for these services and cash assistance do not exceed the funds provided. Mental health, substance abuse, and vocational rehabilitation services may be provided to recipients whose incapacity is not severe enough to qualify for services through a regional support network, the alcoholism and drug addiction treatment and support act, or the division of vocational rehabilitation to the extent that those services are necessary to eliminate or minimize barriers to employment;

    (b) The department shall review the general assistance caseload to identify recipients that would benefit from assistance in becoming naturalized citizens, and thus be eligible to receive federal supplemental security income benefits. Those cases shall be given high priority for naturalization funding through the department; and

   (c) The department shall identify general assistance recipients who are or may be eligible to receive health care coverage or services through the federal veteran's administration and assist recipients in obtaining access to those benefits.

   (3) Within amounts appropriated in this section, the department shall increase the state supplemental payment by $10 per month for SSI clients who reside in nursing facilities, residential habilitation centers, or state hospitals and who receive a personal needs allowance and decrease other state supplemental payments.

   NEW SECTION. Sec. 208. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund--State Appropriation (FY 2006). . . . . . $51,834,000

General Fund--State Appropriation (FY 2007). . . . . . $59,746,000

General Fund--Federal Appropriation. . . . . . . . . . . . $108,545,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $626,000

Criminal Justice Treatment Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$16,500,000

Violence Reduction and Drug Enforcement Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $48,842,000

Problem Gambling Treatment Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,500,000

Public Safety and Education Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,077,000

                   TOTAL APPROPRIATION. . . . . . . . . . $289,670,000

   The appropriations in this section are subject to the following conditions and limitations: $1,500,000 of the problem gambling treatment account appropriation is provided solely for the program established in Engrossed Substitute House Bill No. 1031 (problem gambling). If legislation creating the account is not enacted by June 30, 2005, this amount shall lapse.

   NEW SECTION. Sec. 209. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--MEDICAL ASSISTANCE PROGRAM

General Fund--State Appropriation (FY 2006). . . .$1,478,101,000

General Fund--State Appropriation (FY 2007). . . .$1,589,133,000

General Fund--Federal Appropriation. . . . . . . . . . .$4,027,385,000

General Fund--Private/Local Appropriation. . . . . . . . . .$2,000,000

Emergency Medical Services and Trauma Care Systems

   Trust Account--State Appropriation. . . . . . . . . . . . . $15,500,000

Health Services Account--State Appropriation. . . . . $637,441,000

                   TOTAL APPROPRIATION. . . . . . . . .$7,749,560,000

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

   (1) Based on quarterly expenditure reports and caseload forecasts, if the department estimates that expenditures for the medical assistance program will exceed the appropriations, the department shall take steps including but not limited to reduction of rates or elimination of optional services to reduce expenditures so that total program costs do not exceed the annual appropriation authority.

   (2) The department shall continue to extend medicaid eligibility to children through age 18 residing in households with incomes below 200 percent of the federal poverty level.

   (3) In determining financial eligibility for medicaid-funded services, the department is authorized to disregard recoveries by Holocaust survivors of insurance proceeds or other assets, as defined in RCW 48.104.030.

   (4) Sufficient amounts are appropriated in this section for the department to continue podiatry services for medicaid-eligible adults.

   (5) Sufficient amounts are appropriated in this section for the department to provide an adult dental benefit that is equivalent to the benefit provided in the 2003-05 biennium.

   (6) In accordance with RCW 74.46.625, $6,000,000 of the general fund--federal appropriation is provided solely for supplemental payments to nursing homes operated by public hospital districts. The public hospital district shall be responsible for providing the required nonfederal match for the supplemental payment, and the payments shall not exceed the maximum allowable under federal rules. It is the legislature's intent that the payments shall be supplemental to and shall not in any way offset or reduce the payments calculated and provided in accordance with part E of chapter 74.46 RCW. It is the legislature's further intent that costs otherwise allowable for rate-setting and settlement against payments under chapter 74.46 RCW shall not be disallowed solely because such costs have been paid by revenues retained by the nursing home from these supplemental payments.

    (7) $1,660,000 of the health services account appropriation, $4,361,000 of the general fund--federal appropriation, $1,350,000 of the general fund--state appropriation for fiscal year 2006, and $1,351,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for grants to rural hospitals. The department shall distribute the funds under a formula that provides a relatively larger share of the available funding to hospitals that (a) serve a disproportionate share of low-income and medically indigent patients and (b) have relatively smaller net financial margins, to the extent allowed by the federal medicaid program.

    (8) $22,081,000 of the health services account appropriation and $20,714,000 of the general fund--federal appropriation are provided solely for grants to nonrural hospitals. The department shall distribute the funds under a formula that provides a relatively larger share of the available funding to hospitals that (a) serve a disproportionate share of low-income and medically indigent patients and (b) have relatively smaller net financial margins, to the extent allowed by the federal medicaid program.

    (9) In response to the federal directive to eliminate intergovernmental transfer transactions effective June 30, 2005, the department is directed to implement the inpatient hospital certified public expenditures program for the 2005-07 biennium. The program shall apply to all public hospitals, including those owned or operated by the state, except those classified as critical access hospitals or state psychiatric institutions. Hospitals in the program shall be paid and shall retain (a) one hundred percent of the federal portion of each medicaid inpatient fee-for-service claim payable by the medical assistance administration; and (b) one hundred percent of the federal portion of the maximum disproportionate share hospital payment allowable under federal regulations. Medicaid fee-for-service claim amounts shall be established by applying the department's ratio of costs to charges payment methodology. The department shall provide participating hospitals with the information needed by the hospital to certify the public expenditures required to qualify for the federal portions of both the medicaid inpatient fee-for-service payments and the disproportionate share hospital payments. The legislature intends that hospitals in the program receive no less in combined state and federal payments than they would have received under the methodology that was in place during fiscal year 2005. In the event that any part of the program including, but not limited to, allowable certified public expenditures, is disallowed by the federal government, the department shall not seek recoupment of payments from the hospitals, provided the hospitals have complied with the directions of the department for participation in the program. The department shall therefore make additional grant payments, not to exceed the amounts provided in this subsection, to hospitals whose total payments under the program would otherwise be less than the total state and federal payments they would have received under the methodology in effect during fiscal year 2005. $37,034,000 of the general fund--state appropriation for fiscal year 2006, $37,552,000 of the general fund--state appropriation for fiscal year 2007, $8,300,000 of the emergency medical services and trauma care systems trust account--state appropriation, and $45,450,000 of the general fund--federal appropriation are provided solely for new state grant and upper payment limit programs for the participating hospitals.

   (10) $4,372,000 of the general fund--state appropriation for fiscal year 2006, $4,014,000 of the general fund--state appropriation for fiscal year 2007, and $65,112,000 of the general fund--federal appropriation are provided solely for development and implementation of a replacement system for the existing medicaid management information system.

   (11) $150,000 of the general fund--state appropriation for fiscal year 2006, $75,000 of the general fund--state appropriation for fiscal year 2007, and $225,000 of the general fund--federal appropriation are provided solely for the department to contract for an independent analysis of the medical assistance administration's current system for establishing hospital inpatient payment rates, and for recommendations on a new or updated system. The department shall submit an interim report of study findings by December 1, 2005, and a final report by November 15, 2006. The interim report shall include a comparison of the strengths and weaknesses of the current rate-setting system relative to those used by other state, federal, and private payers, including states with all-payer hospital rate setting systems. The final report shall include recommendations on the design and implementation of a new or updated system that will promote equity among hospitals, access to quality care and improved health outcomes for patients, and cost-control and efficiency for taxpayers. The study should make use of complete and current cost data from a wide variety of hospitals, recognize unique aspects of hospital service delivery structures and medicaid payment systems in Washington, recognize impacts on productivity and quality of care that may result from hospital compensation, recruitment, and retention policies, and provide opportunities for comment and participation by key interest groups in the identification and assessment of alternatives.

   (12) Payment rates for hospital inpatient and outpatient services shall be increased by an average of 1.5 percent effective July 1, 2005, and by an average of an additional 1.5 percent effective July 1, 2006. The increases shall be provided only on the portion of a hospital's rate that excludes medical education and outlier costs, and shall be allocated so that hospitals with lower costs of care (excluding medical education and outlier costs) receive larger percentage increases than those with higher costs of care. The increases shall be allocated in three percentage increments, with the lowest-cost hospitals receiving the largest percentage rate increase, highest-cost hospitals receiving the smallest percentage increase, and medium-cost hospitals receiving the average of the highest and the lowest percentage rate increase. Increases shall not be provided to those hospitals that are certified as critical access. Sufficient funds are appropriated in this section for Healthy Options contractors to increase hospital payment rates commensurate with the increases in fee-for-service payment rates.

   (13) When a person is ineligible for medicaid solely by reason of residence in an institution for mental diseases, the department shall provide the person with the same benefits as he or she would receive if eligible for medicaid, using state-only funds to the extent necessary.

   (14) The medical assistance administration is authorized to use funds appropriated in this section to purchase goods and supplies through direct contracting with vendors when the administration determines it is cost-effective to do so.

   (15) The legislature affirms that it is in the state's interest for Harborview medical center to remain an economically viable component of the state's health care system.

   (16) By October 1, 2005, the department shall recommend to the governor and legislature at least two pilot project designs which seem likely to reduce avoidable emergency room utilization at no net cost to the state within the projects' first eighteen months of operation.

   (17) $69,000 of the general fund--state appropriation for fiscal year 2006, $137,000 of the general fund--state appropriation for fiscal year 2007, and $207,000 of the general fund--federal appropriation are provided solely for participation in the health technology assessment program required in section 214(6) of this act.

    (18) The department is also required to participate in the joint health purchasing project described in section 214(7) of this act.

    (19) The department shall, within available resources, continue operation of the medical care services care management pilot project for clients receiving general assistance benefits in King and Pierce counties. The project may use a full or partial capitation model that includes a mechanism for shared savings. To the extent that experience with the pilot project indicates progress toward the goals of maximizing care coordination, high-risk medical management, and chronic care management to achieve better health outcomes, the department may expand the pilot project to additional counties.

    (20) The department will begin voluntary enrollment of SSI and other eligible medicaid elderly and disabled persons into managed care pilots by March 2006.

    (21) Within the funding provided in section 207(2) of this act, the medical assistance administration and the economic services administration may implement a time-limited transitional prescription drug benefit for general assistance unemployable recipients who obtain employment and who have no other source of health insurance coverage. The benefit shall be limited to coverage of prescription drugs and medication management. The benefit shall be limited to one year. The department shall implement a premium schedule for the benefits under this subsection that is related to the participant's income. The minimum premium shall be twenty dollars per month. Recipients of this transitional benefit shall not be considered part of the general assistance caseload unless eligibility is established under standard reapplication procedures.

    NEW SECTION. Sec. 210. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--VOCATIONAL REHABILITATION PROGRAM

General Fund--State Appropriation (FY 2006). . . . . . $11,097,000

General Fund--State Appropriation (FY 2007). . . . . . $11,074,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $85,662,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $440,000

Telecommunications Devices for the Hearing and

    Speech Impaired--State Appropriation. . . . . . . . . . . $1,786,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$110,059,000

    The appropriations in this section are subject to the following conditions and limitations: The division of vocational rehabilitation shall maintain support for existing clubhouse programs at the 2003-2005 level.

    NEW SECTION. Sec. 211. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund--State Appropriation (FY 2006). . . . . . $31,347,000

General Fund--State Appropriation (FY 2007). . . . . . $27,597,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $50,360,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $810,000

Public Safety and Education Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000

Violence Reduction and Drug Enforcement Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$6,000,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$110,140,000

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

    (1) $500,000 of the general fund--state appropriation for fiscal year 2006 and $500,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for funding of the teamchild project through the governor's juvenile justice advisory committee.

    (2) $13,000 of the general fund--state appropriation for fiscal year 2006 and $12,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the Washington council for the prevention of child abuse and neglect to conduct a public information and outreach campaign concerning the significance, signs, and treatment of postpartum depression.

   (3) $3,195,000 of the general fund--state appropriation for fiscal year 2006, $639,000 of the general fund--state appropriation for fiscal year 2007, and $3,833,000 of the general--fund federal appropriation are provided solely to implement the 2005-07 home care worker collective bargaining agreement.

   NEW SECTION. Sec. 212. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund--State Appropriation (FY 2006). . . . . . $46,381,000

General Fund--State Appropriation (FY 2007). . . . . . $46,380,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $45,103,000

                   TOTAL APPROPRIATION. . . . . . . . . . $137,864,000

   NEW SECTION. Sec. 213. FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES--INFORMATION SERVICES SYSTEM

General Fund--State Appropriation (FY 2006). . . . . . . . .$274,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$274,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . . .$548,000

   NEW SECTION. Sec. 214. FOR THE STATE HEALTH CARE AUTHORITY

General Fund--Federal Appropriation. . . . . . . . . . . . . . $2,766,000

State Health Care Authority Administrative Account--

   State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . $29,392,000

Medical Aid Account--State Appropriation. . . . . . . . . . . .$171,000

Health Services Account--State Appropriation. . . . . $457,340,000

                   TOTAL APPROPRIATION. . . . . . . . . . $489,669,000

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

   (1) Within amounts appropriated in this section and sections 205 and 206 of this act, the health care authority shall continue to provide an enhanced basic health plan subsidy for foster parents licensed under chapter 74.15 RCW and workers in state-funded home care programs. Under this enhanced subsidy option, foster parents and home care workers with family incomes below 200 percent of the federal poverty level shall be allowed to enroll in the basic health plan at the minimum premium amount charged to enrollees with incomes below sixty-five percent of the federal poverty level.

   (2) The health care authority shall require organizations and individuals which are paid to deliver basic health plan services and which choose to sponsor enrollment in the subsidized basic health plan to pay 133 percent of the premium amount which would otherwise be due from the sponsored enrollees.

   (3) The administrator shall take at least the following actions to assure that persons participating in the basic health plan are eligible for the level of assistance they receive: (a) Require submission of (i) income tax returns, and recent pay history, from all applicants, or (ii) other verifiable evidence of earned and unearned income from those persons not required to file income tax returns; (b) check employment security payroll records at least once every twelve months on all enrollees; (c) require enrollees whose income as indicated by payroll records exceeds that upon which their subsidy is based to document their current income as a condition of continued eligibility; (d) require enrollees for whom employment security payroll records cannot be obtained to document their current income at least once every six months; (e) not reduce gross family income for self-employed persons by noncash-flow expenses such as, but not limited to, depreciation, amortization, and home office deductions, as defined by the United States internal revenue service; and (f) pursue repayment and civil penalties from persons who have received excessive subsidies, as provided in RCW 70.47.060(9).

   (4) $19,108,000 of the health services account--state appropriation is provided solely for funding for health care services provided through local community clinics.

   (5) $391,000 of the health services account appropriation is provided solely for implementation of House Bill No. 1219 (drug purchasing consortium). If House Bill No. 1219 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (6) $221,000 of the health services account--state appropriation is provided solely for a health technology assessment to evaluate scientific evidence regarding current and evolving health care procedures, services and technology. The pilot shall be a joint effort of the departments of social and health services, labor and industries, corrections, and veteran's affairs and the health care authority. Upon completion of assessment of a procedure, service or technology, the agencies shall make every effort, consistent with federal and state law, to jointly decide: (a) On coverage of the procedure, service or technology by each agency, and (b) if covered, the guidelines or criteria that will be applied to medical necessity decisions.

    (7) The departments of social and health services, labor and industries and the health care authority, in collaboration with affected health care providers, facilities, and contracted health plans, shall design and implement a joint health purchasing project that links payment to health care provider or facility performance, particularly where such performance is expected to improve patient outcomes or where there are wide variations in clinical practice used to treat a condition or illness. The purchasing effort shall utilize evidence-based performance measures that are designed to improve quality of care and yield measurable and significant savings. The project shall include payment mechanisms that create incentives to improve quality of care. On or before December 1, 2006, the agencies shall report to relevant policy and fiscal committees of the legislature on the status of the purchasing project, including actual and anticipated savings.

    (8) $630,000 of the health services account appropriation is provided solely for implementation of House Bill No. 2069 (small business assistance program). If House Bill No. 2069 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (9) $750,000 of the health services account appropriation is provided solely for implementation of House Bill No. 1689 (dental residency program). If House Bill No. 1689 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (10) $403,000 of the health services account appropriation is provided solely for implementation of House Bill No. 2060 (non-subsidized basic health plan). If House Bill No. 2060 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (11) $250,000 of the health services account appropriation is provided solely for implementation of House Bill No. 1688 (certificate of need program). If House Bill No. 1688 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (12) $50,000 of the health services account--state appropriation is provided solely for a study of the feasibility of the health care authority establishing a consumer driven health plan pilot for subsidized BHP enrollees. This pilot shall provide subsidized BHP enrollees with the option of receiving a subsidy to purchase a health insurance plan that consists of a health savings plan and a high-deductible health plan from a regulated insurance carrier in the private market. The health savings account shall conform to section 223, Part VII of subchapter B of chapter 1 of the internal revenue code of 1986. The high deductible health plans shall provide preventative care outside of the health plan deductible and a wellness program. This study shall identify: (a) Health savings accounts and high deductible plans offered by regulated insurance carriers in the private market; (b) the required premiums and health savings account contribution requirements for these plans; (c) the schedule of covered health care services in the high deductible health plan, including preventative and wellness services; (d) proposed subsidy scale based upon gross family income, giving appropriate consideration to family size and the ages of all family members; (e) process used to select participants of the pilot program; and (d) proposed state funding plan for the pilot. On or before December 1, 2005, the agency shall report to relevant policy and fiscal committees of the legislature on the results of the study.

   NEW SECTION. Sec. 215. FOR THE HUMAN RIGHTS COMMISSION

General Fund--State Appropriation (FY 2006). . . . . . . $2,654,000

General Fund--State Appropriation (FY 2007). . . . . . . $2,616,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $1,672,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $6,942,000

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

   (1) The commission shall submit a report by December 1st of each year to the office of financial management and the legislative fiscal committees detailing any changes in existing federal revenues for the remainder of the current fiscal year and changes in projections of federal revenue for the upcoming fiscal year.

   (2) $85,000 of the general fund--state appropriation for fiscal year 2006 and $67,000 of the general fund state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1515 (expanding the jurisdiction of the human rights commission). If House Bill No. 1515 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   NEW SECTION. Sec. 216. FOR THE BOARD OF INDUSTRIAL INSURANCE APPEALS

Worker and Community Right-to-Know Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000

Accident Account--State Appropriation. . . . . . . . . . . .$15,895,000

Medical Aid Account--State Appropriation. . . . . . . . .$15,894,000

                   TOTAL APPROPRIATION. . . . . . . . . . . $31,809,000

   NEW SECTION. Sec. 217. FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

Public Safety and Education Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,076,000

Death Investigations Account--State Appropriation. . . . .$148,000

Municipal Criminal Justice Assistance Account--

   Private/Local Appropriation. . . . . . . . . . . . . . . . . . . . . .$460,000

                   TOTAL APPROPRIATION. . . . . . . . . . . $19,684,000

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

   (1) During the 2005-2007 biennium, the criminal justice training commission is authorized to raise existing fees charged for firearms certification for security guards in excess of the fiscal growth factor established pursuant to RCW 43.135.055, if necessary, to meet the actual costs of conducting the certification programs and the appropriation levels in this section.

   (2) $100,000 of the public safety and education account--state appropriation is provided solely for support of the coalition of small police agencies major crimes task force. The purpose of this task force is to pool its resources and to establish an efficient and cooperative approach in addressing major violent crimes.

   (3) $25,000 of the public safety and education account appropriation is provided solely to increase payment rates for the criminal justice training commission's contract with the Washington association of sheriffs and police chiefs.

   (4) $11,000 of the public safety and education account appropriation is provided solely to increase payment rates for the criminal justice training commission's contracted food service provider.

   NEW SECTION. Sec. 218. FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund--State Appropriation (FY 2006). . . . . . . $7,230,000

General Fund--State Appropriation (FY 2007). . . . . . . $7,145,000

Public Safety and Education Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $26,832,000

Public Safety and Education Account--Federal

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

Asbestos Account--State Appropriation. . . . . . . . . . . . . . $782,000

Electrical License Account--State Appropriation. . . . .$32,269,000

Farm Labor Revolving Account--Private/Local

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $28,000

Worker and Community Right-to-Know Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,732,000

Public Works Administration Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,041,000

Accident Account--State Appropriation. . . . . . . . . . .$197,792,000

Accident Account--Federal Appropriation. . . . . . . . . .$13,616,000

Medical Aid Account--State Appropriation. . . . . . . . $196,473,000

Medical Aid Account--Federal Appropriation. . . . . . . . $3,180,000

Plumbing Certificate Account--State Appropriation. . . $1,560,000

Pressure Systems Safety Account--State Appropriation.$3,089,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$504,769,000

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

    (1) $700,000 of the accident account--state appropriation and $699,000 of the medical aid account--state appropriation are provided solely for the construction of a computer system to collect data from self-insured employers and are contingent on the passage of Substitute House Bill No. 1310 (workers compensation reporting) on mandatory electronic data reporting by self-insured employers. If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (2) $26,831,000 of the public safety and education account--state appropriation and $10,000,000 of the public safety and education account--federal appropriation are provided solely for the crime victims' compensation program. If the department estimates that expenditures for crime victims' compensation will exceed the appropriation, the department shall take steps, including but not limited to reduction of rates or elimination of optional services, to reduce expenditures so that total program costs do not exceed the annual appropriation authority.

    (3) $200,000 of the medical aid account--state appropriation is provided solely to reimburse the department of agriculture for the agricultural worker pesticide handling and application training program.

    (4) $71,000 of the medical aid account--state appropriation and $71,000 of the accident account--state appropriation for the fiscal year 2007 are provided solely for the review of payment of medical bills and authorization for medical procedures by self-insurers.

    (5) The department is required to participate in the health technology assessment program required in section 214(6) of this act.

    (6) The department is also required to participate in the joint health purchasing project described in section 214(7) of this act.

    (7) $110,000 of the general fund--state appropriation for fiscal year 2006 and $84,000 of the general fund--state appropriation for fiscal year 2007 are provided for the implementation of Substitute House Bill No. 1393 (older mobile homes). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (8) $182,000 of the accident account--state appropriation and $182,000 of the medical aid account--state appropriation are provided solely to expand the Spokane center of occupational health and education to include Yakima county. The Spokane center of occupational health will recruit and train approximately one hundred sixty physicians in Yakima county on best practices for occupational medicine and work with labor and business to improve quality and outcomes of medical care provided to injured workers.

    (9) $158,000 of the accident account--state appropriation and $158,000 of the medical aid account--state appropriation are provided solely to implement Substitute House Bill No. 1856 (annual audits of the state industrial insurance fund). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   NEW SECTION. Sec. 219. FOR THE INDETERMINATE SENTENCE REVIEW BOARD

General Fund--State Appropriation (FY 2006). . . . . . . $1,060,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,055,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $2,115,000

   NEW SECTION. Sec. 220. FOR THE DEPARTMENT OF VETERANS AFFAIRS

   (1) HEADQUARTERS

General Fund--State Appropriation (FY 2006). . . . . . . $1,803,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,737,000

Charitable, Educational, Penal, and Reformatory

   Institutions Account--State Appropriation. . . . . . . . . . . .$10,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $3,550,000

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

   (a) The department shall participate in the health technology assessment program required in section 214(6) of this act.

   (b) The department shall participate in the joint health purchasing project described in section 214(7) of this act.

   (c) $25,000 of the general fund--state appropriation for fiscal year 2006 is provided for the department to conduct a feasibility study of a veterans' cemetery in eastern Washington. The study shall include location, acquisition costs, projection of continued operations costs, and revenue sources for acquisition and operations. A final report of the findings shall be submitted no later than December 15, 2005.

   (2) FIELD SERVICES

General Fund--State Appropriation (FY 2006). . . . . . . $2,750,000

General Fund--State Appropriation (FY 2007). . . . . . . $2,726,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . . .$318,000

General Fund--Private/Local Appropriation. . . . . . . . . .$1,943,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $7,737,000

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

   (a) $25,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the development of a public service announcement outreach campaign directed at returning veterans from Operation Iraqi Freedom and Operation Enduring Freedom.

   (b) $75,000 of the general fund--state appropriation for fiscal year 2006 and $95,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the posttraumatic stress counseling program expansion to address the needs of veterans returning from Iraq and Afghanistan.

   (3) INSTITUTIONAL SERVICES

General Fund--State Appropriation (FY 2006). . . . . . . $7,099,000

General Fund--State Appropriation (FY 2007). . . . . . . $6,208,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $31,799,000

General Fund--Private/Local Appropriation. . . . . . . . .$26,454,000

                   TOTAL APPROPRIATION. . . . . . . . . . . $71,560,000

   NEW SECTION. Sec. 221. FOR THE HOME CARE QUALITY AUTHORITY

General Fund--State Appropriation (FY 2006). . . . . . . $1,408,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,576,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $1,034,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $4,018,000

   The appropriations in this section are subject to the following conditions and limitations: The legislature encourages the home care quality authority to move forward with implementation of a statewide referral registry system by use of any existing and future agency administrative moneys and by seeking other means of funding, including grants and additional funding resources.

   NEW SECTION. Sec. 222. FOR THE DEPARTMENT OF HEALTH

General Fund--State Appropriation (FY 2006). . . . . . $63,669,000

General Fund--State Appropriation (FY 2007). . . . . . $63,434,000

General Fund--Federal Appropriation. . . . . . . . . . . . $452,484,000

General Fund--Private/Local Appropriation. . . . . . . . .$99,739,000

Hospital Commission Account--State Appropriation. . .$2,553,000

Health Professions Account--State Appropriation. . . .$49,943,000

Aquatic Lands Enhancement Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000

Emergency Medical Services and Trauma Care Systems

     Trust Account--State Appropriation. . . . . . . . . . . .$12,567,000

Safe Drinking Water Account--State Appropriation. . . $2,838,000

Drinking Water Assistance Account--Federal

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$15,969,000

Waterworks Operator Certification--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,083,000

Drinking Water Assistance Administrative Account--

    State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . .$326,000

Water Quality Account--State Appropriation. . . . . . . . .$3,502,000

State Toxics Control Account--State Appropriation. . . $2,756,000

Medical Test Site Licensure Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,752,000

Youth Tobacco Prevention Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,806,000

Public Health Supplemental Account--Private/Local

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$3,306,000

Accident Account--State Appropriation. . . . . . . . . . . . . . $266,000

Medical Aid Account--State Appropriation. . . . . . . . . . . . $46,000

Health Services Account--State Appropriation. . . . . . $38,083,000

Tobacco Prevention and Control Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$52,621,000

Patient Safety Account--State Appropriation. . . . . . . . . . $641,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$869,984,000

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

    (1) The department or any successor agency is authorized to raise existing fees charged for the clandestine drug lab program, the drinking water program, radioactive materials license fees, X-ray facility registration fees, shellfish commercial paralytic shellfish poisoning fees, the water recreation program, the wastewater management program, newborn specialty clinic fees, and the midwifery program, in excess of the fiscal growth factor pursuant to RCW 43.135.055, if necessary, to meet the actual costs of conducting business and the appropriation levels in this section. However, the department may not raise existing fees charged for the midwifery program by more than twenty percent over the biennium.

    (2) $1,363,000 of the general fund--state fiscal year 2006 appropriation, $1,363,000 of the general fund--state fiscal year 2007 appropriation, and $676,000 of the general fund--local appropriation are provided solely for the implementation of the Puget Sound conservation and recovery plan and agency action items, DOH-01, DOH-02, DOH-03, and DOH-04.

    (3) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

    (4) $383,000 of the general fund--state appropriation for fiscal year 2006, $317,000 of the general fund--state appropriation for fiscal year 2007, and $600,000 of the aquatic lands enhancement account appropriation are provided solely for the implementation of House Bill No. 1458 (on-site sewage/marine areas). The funds are provided to assist counties in marine areas complete on-site sewage system management plans and electronic data bases to inventory on-site sewage systems. If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   (5) $60,000 of the health professions account appropriation is provided solely for implementation of House Bill No. 1316 (prescription importation). If House Bill No. 1316 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (6) $474,000 of the health professions account appropriation is provided solely for implementation of House Bill No. 2266 (precursor drugs). If House Bill No. 2266 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (7) $125,000 of the health professions account appropriation is provided solely for implementation of House Bill No. 1850 (volunteer medical worker). If House Bill No. 1850 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (8) $82,000 of the health professions account appropriation is provided solely for implementation of House Bill No. 1194 (prescription drug reimportation). If House Bill No. 1194 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (9) $42,000 of the health professions account appropriation is provided solely for implementation of House Bill No. 1168 (prescription reimportation). If House Bill No. 1168 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (10) $90,000 of the general fund--state appropriation for fiscal year 2006 and $65,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for implementation of House Bill No. 1516 (health services for children). If House Bill No. 1516 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (11) $641,000 of the patient safety account appropriation is provided solely for implementation of House Bill No. 1291 (patient safety practices). If House Bill No. 1291 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

   (12) $179,000 of the general fund--state appropriation for fiscal year 2006 and $144,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for implementation of House Bill No. 1268 (stem cell research). If House Bill No. 1268 is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   (13) $100,000 of the general fund--state appropriation for fiscal year 2006 and $200,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the department to implement a multi-year pilot project covering Adams, Chelan, Douglas, Grant and Franklin counties for persons with household income at or below 200 percent of the federal poverty level who are ineligible for family planning services through the medicaid program. Individuals who will be served under the pilot program include women who have never been pregnant, are not currently pregnant, or are beyond the family planning extension period allowed for first steps program eligibility. It is anticipated that the pilot program will serve approximately 500 women annually. The department will provide a preliminary report to the appropriate committees of the legislature by January 1, 2006, and a final report by January 1, 2007.

   (14) $168,000 of the health services account--state appropriation for fiscal year 2006 is provided solely for the department to offer parents and providers a choice between newly available combination vaccines and corresponding single-antigen equivalents currently purchased by the department. The department shall offer the choice on a phased-in basis.

   (15) $462,000 of the general fund--private/local appropriation is provided solely to support specialty clinics that provide treatment services to children that are identified with one of the five heritable or metabolic disorders added to the newborn screening panel by the state board of health in 2003.

    (16) Within the amounts provided in this section, the department shall implement Substitute House Bill No. 1282 (healthy youth act).

    (17) $125,000 of the general fund--state appropriation for fiscal year 2006 and $125,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the farmers' market nutrition program of the special supplemental nutrition program for women, infants and children. It is anticipated that these funds will enable the department to expand 2004 participation levels by 8,000 persons annually.

    (18) The department of health shall develop, in consultation with the department of revenue, the department of social and health services, and the health care authority, a program to provide business and occupation tax credits for physicians who serve uninsured, medicare, and medicaid patients in a private practice or a reduced fee access program for the uninsured and shall submit proposed legislation to the legislature by December 15, 2005. The program must relate the amount of any tax credit to the extent to which a provider serves uninsured, medicare, and medicaid patients, such that providers who serve the greatest number of uninsured, medicare, and medicaid patients receive the greatest tax credit. The program also should recommend a minimum threshold of uninsured, medicare, or medicaid patients that a provider must serve in order to qualify for the tax credit.

    (19) $100,000 of the general fund--state appropriation for fiscal year 2006 and $100,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the infertility prevention project to implement effective prevention strategies designed to reduce the prevalence of chlamydia and gonorrhea and their potentially debilitating complications.

    NEW SECTION. Sec. 223. FOR THE DEPARTMENT OF CORRECTIONS

    (1) ADMINISTRATION AND SUPPORT SERVICES

General Fund--State Appropriation (FY 2006). . . . . . $51,563,000

General Fund--State Appropriation (FY 2007). . . . . . $51,191,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $1,022,000

Violence Reduction and Drug Enforcement Account--

    State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . .$26,000

Public Safety and Education Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,656,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$106,458,000

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

    (a) $11,250,000 of the general fund--state appropriation for fiscal year 2006 and $11,250,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for phase three of the department's offender-based tracking system replacement project. These amounts are conditioned on the department satisfying the requirements of section 902 of this act.

    (b) $562,000 of the general fund--state appropriation for fiscal year 2006 and $384,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 2016 (drug offender confinement). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (c) $26,000 of the general fund--state appropriation for fiscal year 2006 and $44,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Substitute House Bill No. 1402 (offender travel or transfer). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (2) CORRECTIONAL OPERATIONS

General Fund--State Appropriation (FY 2006). . . . . $495,418,000

General Fund--State Appropriation (FY 2007). . . . . $492,954,000

General Fund--Federal Appropriation. . . . . . . . . . . . . . $4,422,000

Violence Reduction and Drug Enforcement Account--

    State Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . $2,984,000

                   TOTAL APPROPRIATION. . . . . . . . . . $995,778,000

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

   (a) For the acquisition of properties and facilities, the department of corrections is authorized to enter into financial contracts, paid for from operating resources, for the purposes indicated and in not more than the principal amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW. This authority applies to the following: Lease-develop with the option to purchase or lease-purchase work release beds in facilities throughout the state for $8,561,000.

   (b) The department may expend funds generated by contractual agreements entered into for mitigation of severe overcrowding in local jails. Any funds generated in excess of actual costs shall be deposited in the state general fund. Expenditures shall not exceed revenue generated by such agreements and shall be treated as recovery of costs.

   (c) The department shall provide funding for the pet partnership program at the Washington corrections center for women at a level at least equal to that provided in the 1995-97 biennium.

   (d) The department shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

   (e) During the 2005-07 biennium, when contracts are established or renewed for offender pay phone and other telephone services provided to inmates, the department shall select the contractor or contractors primarily based on the following factors: (i) The lowest rate charged to both the inmate and the person paying for the telephone call; and (ii) the lowest commission rates paid to the department, while providing reasonable compensation to cover the costs of the department to provide the telephone services to inmates and provide sufficient revenues for the activities funded from the institutional welfare betterment account.

   (f) $14,000 of the general fund--state appropriation for fiscal year 2006 and $27,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for participation in the health technology assessment program required in section 214(6) of this act. The department shall also participate in the joint health purchasing project described in section 214(7) of this act.

   (g) $21,000 of the general fund--state appropriation for fiscal year 2006 and $322,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1966 (identity theft). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

   (h) The Harborview medical center shall provide inpatient and outpatient hospital services to offenders confined in department of corrections facilities at a rate no greater than the average rate that the department has negotiated with other community hospitals in Washington state.

   (3) COMMUNITY SUPERVISION

General Fund--State Appropriation (FY 2006). . . . . . $83,766,000

General Fund--State Appropriation (FY 2007). . . . . . $83,435,000

Public Safety and Education Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,989,000

                   TOTAL APPROPRIATION. . . . . . . . . . $183,190,000

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

   (a) The department shall accomplish personnel reductions with the least possible impact on correctional custody staff, community custody staff, and correctional industries. For the purposes of this subsection, correctional custody staff means employees responsible for the direct supervision of offenders.

   (b) $268,000 of the general fund--state appropriation for fiscal year 2006 and $484,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of Substitute House Bill No. 1402 (offender travel or transfer). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (c) $3,048,000 of the general fund--state appropriation for fiscal year 2006 and $5,533,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 2016 (drug offender confinement). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (d) $122,000 of the general fund--state appropriation for fiscal year 2006 and $82,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1136 (electronic monitoring system). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (e) $16,000 of the general fund--state appropriation for fiscal year 2006 and $232,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the implementation of House Bill No. 1966 (identity theft). If the bill is not enacted by June 30, 2005, the amounts provided in this subsection shall lapse.

    (f) $75,000 of the general fund--state appropriation for fiscal year 2006 and $75,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the department of corrections to contract with the institute for public policy for responsibilities assigned in chapter 196, Laws of 1999 (offender accountability act) and sections 7 through 12 of chapter 197, Laws of 1999 (drug offender sentencing).

    (4) CORRECTIONAL INDUSTRIES

General Fund--State Appropriation (FY 2006). . . . . . . . .$831,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$867,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . .$1,698,000

    The appropriations in this subsection are subject to the following conditions and limitations: $110,000 of the general fund--state appropriation for fiscal year 2006 and $110,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for transfer to the jail industries board. The board shall use the amounts provided only for administrative expenses, equipment purchases, and technical assistance associated with advising cities and counties in developing, promoting, and implementing consistent, safe, and efficient offender work programs.

    (5) INTERAGENCY PAYMENTS

General Fund--State Appropriation (FY 2006). . . . . . $33,839,000

General Fund--State Appropriation (FY 2007). . . . . . $33,838,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . $67,677,000

    NEW SECTION. Sec. 224. FOR THE DEPARTMENT OF SERVICES FOR THE BLIND

General Fund--State Appropriation (FY 2006). . . . . . . $1,872,000

General Fund--State Appropriation (FY 2007). . . . . . . $1,898,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $15,076,000

General Fund--Private/Local Appropriation. . . . . . . . . . . . $80,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . $18,926,000

    NEW SECTION. Sec. 225. FOR THE SENTENCING GUIDELINES COMMISSION

General Fund--State Appropriation (FY 2006). . . . . . . . .$846,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$835,000

                 TOTAL APPROPRIATION. . . . . . . . . . . . .$1,681,000

    NEW SECTION. Sec. 226. FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund--State Appropriation (FY 2006). . . . . . . . . .$60,000

General Fund--State Appropriation (FY 2007). . . . . . . . . .$60,000

General Fund--Federal Appropriation. . . . . . . . . . . . $257,246,000

General Fund--Private/Local Appropriation. . . . . . . . .$30,964,000

Unemployment Compensation Administration Account--

    Federal Appropriation. . . . . . . . . . . . . . . . . . . . . . $189,223,000

Administrative Contingency Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$14,629,000

Employment Service Administrative Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$23,830,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$516,012,000

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

   (1) $2,087,000 of the unemployment compensation administration account--federal appropriation is provided from amounts made available to the state by section 903(d) of the Social Security Act (Reed Act). This amount is provided to replace obsolete information technology infrastructure.

   (2) $12,735,000 of the unemployment compensation administration account--federal appropriation is provided from amounts made available to the state by section 903(d) of the Social Security Act (Reed Act). This amount is authorized for state choice administrative functions. The department shall submit recommendations by September 1, 2007, to the office of financial management and the legislative fiscal committees for options reducing the costs of the state choice administrative functions for the 2007-2009 biennium. If these options require any statutory changes, the department shall submit agency request legislation to the appropriate legislative policy committees and fiscal committees by December 15, 2007.

   (3) $2,300,000 of the unemployment compensation administration account--federal appropriation is provided from amounts made available to the state by section 903(d) of the Social Security Act (Reed Act). This amount is authorized to continue implementation of chapter 4, Laws of 2003 2nd sp. sess. and for implementation costs relating to Engrossed House Bill No. 2255 (unemployment insurance).(End of part)

PART III

NATURAL RESOURCES

   NEW SECTION. Sec. 301. FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund--State Appropriation (FY 2006). . . . . . . . .$466,000

General Fund--State Appropriation (FY 2007). . . . . . . . .$469,000

General Fund--Private/Local Appropriation. . . . . . . . . . . $845,000

                   TOTAL APPROPRIATION. . . . . . . . . . . . $1,780,000

   NEW SECTION. Sec. 302. FOR THE DEPARTMENT OF ECOLOGY

General Fund--State Appropriation (FY 2006). . . . . . $40,136,000

General Fund--State Appropriation (FY 2007). . . . . . $38,922,000

General Fund--Federal Appropriation. . . . . . . . . . . . . $72,286,000

General Fund--Private/Local Appropriation. . . . . . . . .$13,225,000

Special Grass Seed Burning Research

   Account--State Appropriation. . . . . . . . . . . . . . . . . . . . . .$14,000

Reclamation Account--State Appropriation. . . . . . . . . . $2,531,000

Flood Control Assistance Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,042,000

State Emergency Water Projects Revolving

   Account--State Appropriation. . . . . . . . . . . . . . . . . . .$2,531,000

Waste Reduction/Recycling/Litter Control--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $14,789,000

State Drought Preparedness Account--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $157,000

State and Local Improvements Revolving

   Account (Water Supply Facilities)--State

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $342,000

Vessel Response Account--State Appropriation. . . . . . $2,876,000

Site Closure Account--State Appropriation. . . . . . . . . . . .$725,000

Water Quality Account--State Appropriation. . . . . . . .$27,530,000

Wood Stove Education and Enforcement

   Account--State Appropriation. . . . . . . . . . . . . . . . . . . . $357,000

Worker and Community Right-to-Know

   Account--State Appropriation. . . . . . . . . . . . . . . . . . .$2,053,000

State Toxics Control Account--State Appropriation. . $80,849,000

State Toxics Control Account--Private/Local

   Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $363,000

Local Toxics Control Account--State Appropriation. . .$5,089,000

Water Quality Permit Account--State Appropriation. .$30,783,000

Underground Storage Tank Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,794,000

Environmental Excellence Account--State Appropriation$504,000

Biosolids Permit Account--State Appropriation. . . . . . . . $815,000

Hazardous Waste Assistance Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$4,963,000

Air Pollution Control Account--State Appropriation. .$11,103,000

Oil Spill Prevention Account--State Appropriation. . . .$9,885,000

Air Operating Permit Account--State Appropriation. . .$2,507,000

Freshwater Aquatic Weeds Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$2,519,000

Oil Spill Response Account--State Appropriation. . . . .$7,078,000

Metals Mining Account--State Appropriation. . . . . . . . . . .$14,000

Water Pollution Control Revolving Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $393,000

Water Pollution Control Revolving Account--Federal

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$1,913,000

Commercial Passenger Vessel Enforcement Account--State

    Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $124,000

                 TOTAL APPROPRIATION. . . . . . . . . . .$382,212,000

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

    (1) $2,526,196 of the general fund--state appropriation for fiscal year 2006, $2,526,195 of the general fund--state appropriation for fiscal year 2007, $366,000 of the general fund--federal appropriation, $2,581,000 of the state toxics account--state appropriation, $540,806 of the water quality account--state appropriation, $3,748,220 of the water quality permit account--state appropriation, and $705,000 of the oil spill prevention account are provided solely for the implementation of the Puget Sound conservation and recovery plan and agency action items DOE-01, DOE-02, DOE-04, DOE-06, DOE-07, DOE-08, and DOE-09.

    (2) $375,000 of the general fund--state appropriation for fiscal year 2006 and $375,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to negotiate agreements to secure water as part of the Columbia river initiative program. Of this amount, $210,000 is provided to the department of fish and wildlife to determine impacts on fish from changes in water storage at Lake Roosevelt.

    (3) $661,000 of the reclamation account--state appropriation is provided solely to implement House Bill No. 1939 (well construction). If the bill is enacted by June 30, 2005, $150,000 from the general fund--state appropriation for fiscal year 2006 and $150,000 from the general fund--state appropriation for fiscal year 2007 provided in this section shall lapse. If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

    (4) $1,403,000 of the state toxics control account--state appropriation is provided solely to complete the polybrominated diphenyl ether (PBDE) chemical action plan and to reduce persistent bioaccumulative toxics from the environment. Upon completion of the PBDE chemical action plan, the department may request funding to implement the plan.

    (5) $200,000 of the water quality account--state appropriation is provided solely for the department to contract with the state conservation commission to provide statewide coordination and support for coordinated resource management.

    (6) $156,000 of the general fund--state appropriation for fiscal year 2006 and $144,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to expand the department's pilot program for processing 401 water quality certification projects to a statewide process and timeline to meet improved permit processing accountability and timelines, which will result in 90 percent of routine certifications occurring within 90 days of application, and acknowledgement of receipt of the application being sent within 10 days.

    (7) $250,000 of the state toxics control account--state appropriation is provided solely to implement Engrossed Second Substitute House Bill No. 1605 (soil contamination). If the bill is not enacted by June 30, 2005, the amount in this subsection shall lapse.

   (8) $147,000 of the general fund--state appropriation for fiscal year 2006 and $146,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to implement Engrossed Second Substitute House Bill No. 1415 (commercial passenger vessels). If the bill is not enacted by June 30, 2005, the amounts in this subsection shall lapse.

   (9) As described in section 129(9) of this act, the department shall make recommendations and report on monitoring activities related to salmon recovery.

   (10) $4,054,000 of the state toxics control account appropriation is provided solely for methamphetamine lab clean-up activities.

   (11) $170,000 of the oil spill prevention account appropriation is provided solely for implementation of the Puget Sound conservation and recovery plan action item UW-02 through a contract with the University of Washington's sea grant program to continue an educational program targeted to small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

   (12) $2,500,000 of the general fund--state appropriation for fiscal year 2006 and $2,000,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for shoreline grants to local governments to implement Substitute Senate Bill No. 6012 (shoreline management), chapter 262, Laws of 2003.

   (13) Fees approved by the department of ecology in the 2005-07 biennium are authorized to exceed the fiscal growth factor under RCW 43.135.055.