WHEREAS, In 1976, Terry Lee Wilson graduated from Indiana University School of Law, where he learned the fine art of bill drafting from the legendary Professor Reed Dickerson; he hasn't stopped drafting bills since; and

      WHEREAS, After graduating from law school and seeking to flee the rust belt of Indiana, Mr. Wilson packed his 'Bread' albums in the back of his silver Chevrolet Chevette and drove west; and

      WHEREAS, Like the explorers Lewis and Clark, Mr. Wilson didn't stop until he hit the Pacific Ocean ... at Olympia, Washington; he was impressed by the mild weather, beautiful landscapes, and generous retirement systems; and

      WHEREAS, Shortly after arriving in Olympia, Mr. Wilson landed his first job as a temporary session attorney at the Code Reviser's Office where he honed his legislative drafting skills by mastering the exotic and arcane details of excise taxation and the Interstate Commerce Clause; and

      WHEREAS, Laboring in relative obscurity for more than 12 years in the Code Reviser's Office, Mr. Wilson silently worked toward his lifelong goal: Personally rewriting the entire state tax code; and

      WHEREAS, Recognizing his unique talents, Mr. Wilson was hired by the Senate as Tax Counsel for the Senate Ways and Means Committee, which allowed him to pursue his lifelong goal at an even faster rate; and

      WHEREAS, After mastering computer programming, Mr. Wilson created a unique legislative bill-drafting software that is used throughout the Legislature; and

      WHEREAS, In 1997, Mr. Wilson's obscurity as a wizard bill drafter came to an abrupt halt after gaining great notoriety by drafting Referendum 47, an artful scheme to reduce property taxes that was overwhelmingly approved by the voters ... and overwhelmingly declared to be unconstitutional by the Washington State Supreme Court in a very close vote of 9 to 0; and

      WHEREAS, Mr. Wilson has seen every version of the old saying, "Don't tax me, don't tax thee; tax that fellow behind the tree"; and

      WHEREAS, Mr. Wilson's mind is like a Rubik's Cube of tax law: You can ask him to twist and bend it in every complicated direction, but in the end, he always knows how to solve the puzzle and make things come out right; and

      WHEREAS, There are rumors that his set of RCW's is gathering dust: He knows all sections of the tax law so well, he never has to look anything up; and

      WHEREAS, We've all heard the saying, "Taxation without representation is tyranny," but perhaps Mr. Wilson has observed that taxation with representation is not so good either; and

      WHEREAS, The Senate wishes Mr. Wilson all the best, as he enters retirement, free to pursue one of his favorite hobbies: Computer programming; and

      WHEREAS, Mr. Wilson's amazing productivity will be missed by the three employees who will be hired to replace him;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate recognize Terry Wilson's legal expertise and wise counsel, valued by many political generations of senators, representatives, and legislative staff; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to Terry Wilson.

      Senators Prentice, Hewitt, Brown, Pflug, Fraser, Parlette, Thibaudeau, Zarelli, Spanel, Rockefeller and Kohl-Welles spoke in favor of adoption of the resolution.

      The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8741.

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

REMARKS BY PRESIDENT PRO TEMPORE

      Senator Franklin: "I would just like to say to Mr. Wilson that I'm sure that maybe he will be glad to get rid of me because I kept sending the same message; 'What about that review of the, that came from the Gates Commission, would you redraft that and keep redrafting it?' He won't have to do that anymore. Thank you for being there."

MOTION

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

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to ENGROSSED HOUSE BILL NO. 3261 and asks Senate to recede therefrom.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Kline moved that the Senate recede from its position and pass Engrossed House Bill No. 3261 without the Senate amendment(s).

      Senator Kline spoke in favor of the motion.

MOTION

On motion of Senator Schoesler, Senators Delvin, Hewitt, Deccio and McCaslin were excused.

MOTION

On motion of Senator Regala, Senator Hargrove was excused.

      The President Pro Tempore declared the question before the Senate to be motion by Senator Kline that the Senate recede from its position and pass Engrossed House Bill No. 3261 without Senate amendment(s).

The motion by Senator Kline carried and the Senate receded from its position on Engrossed House Bill No. 3261.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 3261, without the Senate amendment(s), and the bill passed the Senate by the following vote: Yeas, 40; Nays, 0; Absent, 4; Excused, 5.

      Voting yea: Senators Benton, Berkey, Brandland, Brown, Carrell, Delvin, Doumit, Eide, Esser, Fairley, Franklin, Fraser, Haugen, Honeyford, Jacobsen, Kastama, Kline, Kohl-Welles, McAuliffe, Morton, Mulliken, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 40

      Absent: Senators Benson, Finkbeiner, Johnson and Keiser - 4

      Excused: Senators Deccio, Hargrove, Hewitt, McCaslin and Oke - 5

ENGROSSED HOUSE BILL NO. 3261, without Senate amendment(s), 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

      At 12:37 p.m., on motion of Senator Eide, the Senate was at ease subject to the call of the President.

AFTERNOON SESSION

      The Senate was called to order at 1:45 p.m. by President Owen.

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

The House has passed the following bill{s}:

      ENGROSSED HOUSE BILL NO. 2716

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MESSAGE FROM THE HOUSE

March 8, 2006

MR. PRESIDENT:

The House has passed the following bill{s}:

      SENATE BILL NO. 6368,

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

The House insists on its position to House amendments to ENGROSSED SENATE BILL NO. 5330 and asks Senate to concur therein.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Shin moved that the Senate concur in the House amendment(s) to Engrossed Senate Bill No. 5330.

      Senators Shin and Pflug spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Shin that the Senate concur in the House amendment(s) to Engrossed Senate Bill No. 5330.

MOTION

On motion of Senator Schoesler, Senators Johnson, Zarelli and Deccio were excused.

The motion by Senator Shin carried and the Senate concurred in the House amendment(s) to Engrossed Senate Bill No. 5330 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Senate Bill No. 5330, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5330, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 2; Absent, 1; Excused, 2.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Honeyford, Jacobsen, Kastama, Keiser, Kohl-Welles, McAuliffe, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 44

      Voting nay: Senators McCaslin and Morton - 2

      Absent: Senator Kline - 1

      Excused: Senators Hewitt and Johnson - 2

ENGROSSED SENATE BILL NO. 5330, as amended by the House, 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.

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

The House insists in its amendment to SUBSTITUTE SENATE BILL NO. 6330 and asks Senate to concur therein.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Shin moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6330.

      Senators Shin and Pflug spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Shin that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6330.

MOTION

On motion of Senator Regala, Senator Doumit was excused.

MOTION

On motion of Senator Pflug, Senator Parlette was excused.

The motion by Senator Shin carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6330 by voice vote.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6330, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6330, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 2; Absent, 1; Excused, 2.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Honeyford, Jacobsen, Kastama, Keiser, Kohl-Welles, McAuliffe, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 44

      Voting nay: Senators McCaslin and Morton - 2

      Absent: Senator Kline - 1

      Excused: Senators Hewitt and Johnson - 2

SUBSTITUTE SENATE BILL NO. 6330, as amended by the House, 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.

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

Under suspension of rules SUBSTITUTE SENATE BILL NO. 6362 was returned to second reading for purpose of an amendment: The House adopted 6362-S AMH NIXON LEAT 095, and passed the House as amended by the House.

      On page 4, line 27, after "attorney" strike all material through "day" on line 28 and insert "at any time"

      On page 4, line 29, after "day" insert "regarding a voter who presents himself or herself to vote at the poll site"

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Kohl-Welles moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6362.

      Senators Kohl-Welles and Roach spoke in favor of passage of the motion.

MOTION

      On motion of Senator Schoesler, Senator Parlette was excused.

MOTION

The President declared the question before the Senate to be the motion by Senator Kohl-Welles that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6362.

The motion by Senator Kohl-Welles carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6362 by voice vote.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6362, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6362, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

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

      Voting nay: Senator Zarelli - 1

      Excused: Senator Parlette - 1

SUBSTITUTE SENATE BILL NO. 6362, as amended by the House, 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.

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

Under suspension of rules ENGROSSED SUBSTITUTE SENATE BILL NO. 5305 was returned to second reading for purpose of an amendment. The House adopted 5305-S.E AMH CODY BLAC 195, and passed the House as amended by the House.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that vaccinations and immunizations are among the most important public health innovations of the last one hundred years. The centers for disease control and prevention placed vaccinations at the top of its list of the ten greatest public health achievements of the twentieth century. In its efforts to improve public health in the world's poorest countries, the Bill and Melinda Gates foundation has identified childhood immunization as a cost-effective method of improving public health and saving the lives of millions of children around the world.

      Fortunately, in Washington, safe and cost-effective vaccinations against childhood diseases are widely available through both public and private resources. The vaccines that the Washington state department of health provides to meet the requirements for the recommended childhood vaccination schedule through its universal childhood vaccine program are screened for thimerosal and preference is given toward the purchase of thimerosal-free products. The department of health currently provides thimerosal-free products for all routinely recommended childhood vaccines. Regardless of the absence of thimerosal in childhood vaccines in Washington, scientifically reputable organizations such as the centers for disease control and prevention, the national institute of medicine, the American academy of pediatrics, the food and drug administration, and the world health organization have all determined that there is no credible evidence that the use of thimerosal in vaccines poses a threat to the health and safety of children.

      Notwithstanding these assurances of the safety of the vaccine supply, the legislature finds that where there is public concern over the safety of vaccines, vaccination rates may be reduced to the point that deadly, vaccine-preventable, childhood diseases return. This measure is being enacted to maintain public confidence in vaccine programs, so that the public will continue to seek vaccinations and their health benefits may continue to protect the people of Washington.

      NEW SECTION. Sec. 2. A new section is added to chapter 70.95M RCW to read as follows:

      (1) Beginning July 1, 2007, a person who is known to be pregnant or who is under three years of age shall not be vaccinated with a mercury-containing vaccine or injected with a mercury-containing product that contains more than 0.5 micrograms of mercury per 0.5 milliliter dose.

      (2) Notwithstanding subsection (1) of this section, an influenza vaccine may contain up to 1.0 micrograms of mercury per 0.5 milliliter dose.

      (3) The secretary of the department of health may, upon declaration of a public health emergency, suspend the requirements of this section for the duration of the emergency.

      (4) All vaccines and products referenced under this section must meet food and drug administration licensing requirements."

and the same are herewith transmitted.

MOTION

Senator Rasmussen moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5305.

      Senator Rasmussen spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Rasmussen that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5305.

The motion by Senator Rasmussen carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 5305 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 5305, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5305, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

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

      Absent: Senator Kohl-Welles - 1

      Excused: Senator Parlette - 1

ENGROSSED SUBSTITUTE SENATE BILL NO. 5305, as amended by the House, 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.

PERSONAL PRIVILEGE

Senator Finkbeiner: “Senator Esser also represents Kirkland and he’s happy to see you (residents and staff of the Kirkland Senior Center) here too today. Thank you.”

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

Under suspension of rules SUBSTITUTE SENATE BILL NO. 6325 was returned to second reading for purpose of an amendment: 6325-S AMH CLEM MORI 060, and passed the House as amended by the House.

      On page 1, line 5, after "Sec. 1." insert "(1)"

      On page 1, line 8, after "subject matter." insert "The state preemption created in this section applies to all rules, regulations, codes, statutes, and ordinances pertaining to residency restrictions for persons convicted of any sex offense at any time."

      On page 1, after line 8, insert:

      "(2) This section does not apply to rules, regulations, codes, statutes, or ordinances adopted by cities, counties, municipalities, or local agencies prior to March 1, 2006, except as required by an order issued by a court of competent jurisdiction pursuant to litigation regarding the rules, regulations, codes, statutes, or ordinances.

      (3) This section expires one year after the effective date of this act."

      On page 1, after line 12, insert:

      "NEW SECTION. Sec. 3. (1) The association of Washington cities, working with the cities and towns of Washington state, shall develop statewide standards for cities and towns to consider when determining whether to impose residency restrictions on sex offenders within their jurisdiction.

      (2) The association of Washington cities shall be encouraged to work in consultation with a representative from each of the following agencies and organizations:

      (a) The attorney general of Washington;

      (b) The Washington state association of counties;

      (c) The department of community, trade, and economic development;

      (d) The department of corrections;

      (e) The Washington association of sheriffs and police chiefs; and

      (f) Any other agencies and organizations as deemed appropriate by the association of Washington cities, such as the Washington association of prosecuting attorneys, the juvenile rehabilitation administration of the department of social and health services, the indeterminate sentence review board, the Washington association for the treatment of sexual abusers, and the Washington coalition of sexual assault programs.

      (3) The statewide standards for whether to impose residency restrictions on sex offenders should consider the following elements:

      (a) An identification of areas in which sex offenders should not reside due to concerns regarding public safety and welfare;

      (b) An identification of areas in which sex offenders may reside, taking into consideration factors such as:

      (i) How many housing units must reasonably be available in order to accommodate registered sex offenders in a city or town;

      (ii) The average response time of emergency services to the areas;

      (iii) The proximity of risk potential activities to the areas; and

      (iv) The proximity of medical care, mental health care providers, and sex offender treatment providers to the areas;

      (c) A prohibition against completely precluding sex offender residences within a city or town, implicating a sex offender's right to travel, or enacting a criminal regulatory measure;

      (d) Appropriate civil remedies for violations of a local ordinance; and

      (e) Unique local conditions that should be given due deference, such as proximity to state facilities that house or treat sex offenders.

      (4) The association of Washington cities, on behalf of the cities and towns in Washington, shall present the statewide standards, along with any recommendations and proposed legislation, to the governor and the legislature no later than December 31, 2006."

Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Regala moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6325.

      Senators Regala and Stevens spoke in favor of passage of the motion.

MOTION

On motion of Senator Eide, Senator Kohl-Welles was excused.

MOTION

On motion of Senator Finkbeiner, Senator McCaslin was excused.

MOTION

The President declared the question before the Senate to be the motion by Senator Regala that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6325.

The motion by Senator Regala carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6325 by voice vote.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6325, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6325, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

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

      Absent: Senator Brandland - 1

      Excused: Senators Kohl-Welles, McCaslin and Parlette - 3

SUBSTITUTE SENATE BILL NO. 6325, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

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

SECOND READING

      ENGROSSED HOUSE BILL NO. 2716, by Representatives Fromhold, Kessler, Skinner, Haigh, Strow, Moeller, Armstrong, Conway, Curtis, Murray, Buri, Green, Ericksen, Serben, McDermott, Morrell, McIntire, Appleton, Kenney, P. Sullivan, Ormsby and Linville

      Modifying provisions relating to nursing facility medicaid payment systems.

      The measure was read the second time.

MOTION

      On motion of Senator Doumit, the rules were suspended, Engrossed House Bill No. 2716 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Doumit and Zarelli spoke in favor of passage of the bill.

MOTION

On motion of Senator Regala, Senator McAuliffe was excused.

      The President declared the question before the Senate to be the final passage of Engrossed House Bill No. 2716.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 2716 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      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, McCaslin, Morton, Mulliken, Oke, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Excused: Senators McAuliffe and Parlette - 2

      ENGROSSED HOUSE BILL NO. 2716, 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.

SECOND READING

      SENATE BILL NO. 6581, by Senators Poulsen and Delvin

      Regarding water resource management in the Columbia river basin.

MOTION

      On motion of Senator Fraser, Second Substitute Senate Bill No. 6581 was substituted for Senate Bill No. 6581 and the second substitute bill was placed on the second reading and read the second time.

MOTION

      Senator Fraser moved that the following striking amendment by Senators Fraser, Morton and Poulsen be adopted:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. 2005 c 488 s 330 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

      Watershed Plan Implementation and Flow Achievement (06-2-003)

      The appropriation in this section is subject to the following conditions and limitations: $12,000,000 of the appropriation is provided solely for projects and water right acquisitions to support watershed planning efforts and achieving instream flows subject to the following project types, conditions, and limitations:

      (1) Up to $1,353,172 of the appropriation is provided to improve irrigation efficiency and to achieve associated flow improvements in the Twisp and Methow rivers by providing for cleaning and lining and/or piping of 30,943 linear feet of the irrigation canal within the lower (downstream) seven miles of the Methow Valley irrigation district's west canal. Of this amount, up to $100,000 is provided for a neutral independent consultant to provide management assistance to the Methow Valley irrigation district for purposes of identifying structural and operational improvements to increase overall system water use efficiency.

      (2) Up to $200,000 of the appropriation is provided for a portion of the costs of the project level environmental impact statement for the Ahtanum creek watershed restoration program, including construction of the Pine Hollow reservoir, provided there is agreement among the Yakama nation, Ahtanum irrigation district, and other jurisdictional federal, state, and local agencies and entities to proceed with the environmental impact statement.

      (3) Up to $75,000 of the appropriation is provided to formalize the Ahtanum creek watershed restoration program, including identification of site specific habitat improvement projects and determination of the most appropriate restoration program alternative to implement.

      (4) Up to $1,500,000 of the appropriation is provided to reduce diversions from the Dungeness river through pipeline projects identified in the Dungeness river comprehensive irrigation district management plan. For at least one year from the effective date of this section, while the parties seek resolution of the court action filed in Thurston county superior court, No. 04-2-00078-2, none of these funds may be allocated to any projects in the Dungeness river basin that are within the area that is the zone of contribution for ground and surface water infiltration to the existing Graysmarsh wetland.

      (5) $100,000 of the appropriation is provided solely to the city of Normandy Park to implement the basin plan for the Miller/Walker and Salmon creek basins.

      (6) Water storage grants for the development of plans, engineering and financing reports, acquiring lands and facilities, and other preconstruction activities associated with the development of water storage and groundwater storage and recovery projects. Proposed projects should be consistent with the recommendations of the water storage task force. The department of ecology would issue grants in consultation with the departments of agriculture and fish and wildlife.

      (7) Infrastructure improvement projects and other water management actions that benefit stream flows and enhance water supply to resolve conflicts among water needs for municipal water supply, agriculture water supply, and fish restoration. The stream flow improvements and other public benefits secured from these projects should be commensurate with the investment of state funds.

      (8) Projects for planning, acquisition, construction, and improvement of agriculture water supply facilities and achieving water conservation and water use efficiency improvements.

      (9) Financial assistance to purchase and install water measuring devices at points of diversion and withdrawal. Preference would be given to fish-critical basins, to areas participating in the department of fish and wildlife fish screening and cooperative compliance programs, and to basins where watershed planning has determined additional water diversion and withdrawal information is needed.

       (10) Funding for acquisition of either water or water rights, or both, for instream flow achievement and establishment of water accounts. The appropriation is provided for either the purchase or lease, or both, of water rights. It is also provided for the purpose of improving stream and river flows in fish critical basins under the trust water rights program under chapters 90.42 and 90.38 RCW.

      (11) The department shall provide small grants to watershed councils that have completed watershed plans. The grants are intended to support periodic meetings of the councils so that they can monitor the implementation of watershed plans.

(12) $250,000 of the state building construction account--state appropriation for fiscal year 2007 is provided solely to the department of ecology to work with interested parties to study instream flows in the Hanford Reach and their impact on the ecological condition of the Hanford Reach especially as it relates to the needs of salmon and steelhead in the Hanford Reach. The department shall submit to the office of the governor and to the appropriate fiscal and policy committees of the legislature a report of its findings by July 1, 2007.

Appropriation:

      State Building Construction Account--State. . . .$12,000,000

      Prior Biennia (Expenditures). . . . . . . . . . . . . . . . . . . . . . . .$0

      Future Biennia (Projected Costs). . . . . . . . . . . . $48,000,000

                           TOTAL. . . . . . . . . . . . . . . . . . . . .$60,000,000"

      Senators Fraser and Morton spoke in favor of adoption of the striking amendment.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senators Fraser, Morton and Poulsen to Second Substitute Senate Bill No. 6581.

      The motion by Senator Fraser 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 "Relating to" strike the remainder of the title and insert "a study of the instream flows of the Hanford Reach; and amending 2005 c 488 s 330 (uncodified)."

MOTION

      On motion of Senator Fraser, the rules were suspended, Engrossed Second Substitute Senate Bill No. 6581 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President declared the question before the Senate to be the final passage of Engrossed Second Substitute Senate Bill No. 6581.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute Senate Bill No. 6581 and the bill passed the Senate 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

      ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6581, 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.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2569, by House Committee on Finance (originally sponsored by Representatives Morrell, Roach, Campbell, Williams, Kilmer, Clibborn, Conway, Blake, Eickmeyer, Flannigan, Wallace, Roberts, Upthegrove, McCoy, McDonald, Green, Dickerson, Lantz and Springer)

      Lowering the interest rate for the property tax deferral program.

      The measure was read the second time.

MOTION

      On motion of Senator Prentice, the rules were suspended, Substitute House Bill No. 2569 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Prentice and Zarelli spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute House Bill No. 2569.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2569 and the bill passed the Senate 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

      SUBSTITUTE HOUSE BILL NO. 2569, 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.

SECOND READING

      SENATE CONCURRENT RESOLUTION NO. 8423, by Senator Fairley

      Creating a homeowners' association act committee.

      The measure was read the second time.

MOTION

      On motion of Senator Fairley, the rules were suspended, Senate Concurrent Resolution No. 8423 was advanced to third reading, the second reading considered the third and the resolution was placed on final passage.

      Senators Fairley and Benton spoke in favor of passage of the resolution.

      The President declared the question before the Senate to be the final passage of Senate Concurrent Resolution No. 8423.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Concurrent Resolution No. 8423 and the resolution passed the Senate by the following vote: Yeas, 47; Nays, 2; 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, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Voting nay: Senators Mulliken and Roach - 2

      SENATE CONCURRENT RESOLUTION NO. 8423, having received the constitutional majority, was declared passed.

MOTION

On motion of Senator Eide, Senate Concurrent Resolution No. 8423 was immediately transmitted to the House of Representatives.

SECOND READING

      HOUSE BILL NO. 2612, by Representatives Kagi, O'Brien, Darneille, Rodne, Kenney, Schual-Berke, Morrell and Springer

      Including failure to secure a load in the first degree as a compensable crime under the crime victims' compensation program.

      The measure was read the second time.

MOTION

      On motion of Senator Hargrove, the rules were suspended, House Bill No. 2612 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Hargrove and Esser spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of House Bill No. 2612.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2612 and the bill passed the Senate 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

      HOUSE BILL NO. 2612, 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.

SECOND READING

      SENATE BILL NO. 6652, by Senators Kohl-Welles, Kline, Fraser, Keiser and McAuliffe

      Protecting victims of human trafficking.

MOTIONS

      On motion of Senator Hargrove, Substitute Senate Bill No. 6652 was substituted for Senate Bill No. 6652 and the substitute bill was placed on the second reading and read the second time.

      On motion of Senator Hargrove, the rules were suspended, Substitute Senate Bill No. 6652 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Hargrove and Stevens spoke in favor of passage of the bill.

MOTION

On motion of Senator Regala, Senator Kline was excused.

      The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6652.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6652 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, 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 Brown - 1

      Excused: Senator Kline - 1

      SUBSTITUTE SENATE BILL NO. 6652, 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.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 2799, by House Committee on Finance (originally sponsored by Representatives Chase, Morris, Crouse, Eickmeyer, Clibborn, P. Sullivan, Hunt, McCoy, Miloscia, Grant, Sells, Williams, McCune, Moeller, Conway, Upthegrove, Morrell, Simpson, Kilmer, Kagi, Hudgins, Dunn and Darneille)

      Providing tax exemptions for solar hot water equipment. Revised for 2nd Substitute: Providing tax exemptions for solar water heating equipment.

      The measure was read the second time.

MOTION

      On motion of Senator Poulsen, the rules were suspended, Second Substitute House Bill No. 2799 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Poulsen and Morton spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Second Substitute House Bill No. 2799.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 2799 and the bill passed the Senate 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, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, 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 Deccio - 1

      Excused: Senator Kline - 1

      SECOND SUBSTITUTE HOUSE BILL NO. 2799, 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.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2925, by House Committee on Appropriations (originally sponsored by Representatives Santos, Morrell, Bailey, Cody, Hinkle, Pettigrew, Linville and Schual-Berke)

      Concerning assisted living facility medicaid minimum occupancy of fifty percent or greater.

      The measure was read the second time.

MOTION

      Senator Keiser moved that the following committee striking amendment by the Committee on Ways & Means be not adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 74.39A RCW to read as follows:

      (1) To the extent funds are appropriated for this purpose, the department shall establish a capital add-on rate, not less than the July 1, 2005, capital add-on rate established by the department, for those assisted living facilities contracting with the department that have a medicaid occupancy percentage of sixty percent or greater.

      (2) Effective January 1, 2006, the department shall use July 1, 2005, through December 31, 2005, medicaid resident days divided by the product of all its licensed boarding home beds irrespective of use, times calendar days for the six-month period, to determine the assisted living facility's medicaid occupancy percentage. Effective with July 1, 2007, and for each July 1st rate-setting period thereafter, the department shall determine the facility's medicaid occupancy percentage using the last six months' medicaid resident days from the preceding calendar year divided by the product of all its licensed boarding home beds irrespective of use, times calendar days for the six-month period. For the purposes of this section, medicaid resident days include those clients who are enrolled in a medicaid managed long-term care program, including but not limited to the program for all inclusive care and the medicaid integration project.

      (3) The medicaid occupancy percentage established beginning on January 1, 2006, and July 1, 2007, and for each July 1st thereafter, shall be used to determine whether an assisted living facility qualifies for the capital add-on rate under this section. Those facilities that qualify for the capital add-on rate shall receive the capital add-on rate throughout the applicable fiscal year, except that the rates established on January 1, 2006, shall be in effect until June 30, 2007."

      On page 1, line 2 of the title, after "greater;" strike the remainder of the title and insert "and adding a new section to chapter 74.39A RCW."

      The President declared the question before the Senate to be the motion by Senator Keiser to not adopt the committee striking amendment by the Committee on Ways & Means to Engrossed Substitute House Bill No. 2925.

      The motion by Senator Keiser carried and the committee striking amendment was not adopted by voice vote.

MOTION

      Senator Keiser moved that the following striking amendment by Senators Keiser and Prentice be adopted:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 2. A new section is added to chapter 74.39A RCW to read as follows:

      (1) To the extent funds are appropriated for this purpose, the department shall establish a capital add-on rate, not less than the July 1, 2005, capital add-on rate established by the department, for those assisted living facilities contracting with the department that have a medicaid occupancy percentage of sixty percent or greater.

      (2) Effective for July 1, 2006, and for each July 1st rate-setting period thereafter, the department shall determine the facility's medicaid occupancy percentage using the last six months' medicaid resident days from the preceding calendar year divided by the product of all its licensed boarding home beds irrespective of use, times calendar days for the six-month period. For the purposes of this section, medicaid resident days include those clients who are enrolled in a medicaid managed long-term care program, including but not limited to the program for all inclusive care and the medicaid integration project.

      (3) The medicaid occupancy percentage established beginning on July 1, 2006, and for each July 1st thereafter, shall be used to determine whether an assisted living facility qualifies for the capital add-on rate under this section. Those facilities that qualify for the capital add-on rate shall receive the capital add-on rate throughout the applicable fiscal year.

      NEW SECTION. Sec. 3. This act takes effect July 1, 2006."

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

      The President declared the question before the Senate to be the adoption of the striking amendment by Senators Keiser and Prentice to Engrossed Substitute House Bill No. 2925.

      The motion by Senator Keiser 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 2 of the title, after "greater;" strike the remainder of the title and insert "adding a new section to chapter 74.39A RCW; and providing an effective date."

MOTION

      On motion of Senator Keiser, the rules were suspended, Engrossed Substitute House Bill No. 2925 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 Keiser 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. 2925 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2925 as amended by the Senate and the bill passed the Senate 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

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2925 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.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2640, by House Committee on Finance (originally sponsored by Representatives B. Sullivan, McCoy, O'Brien, Haler, Sells, Morris, Ericks, Strow and Dunn)

      Providing biotechnology product and medical device manufacturing tax incentives.

      The measure was read the second time.

MOTION

      On motion of Senator Shin, the rules were suspended, Substitute House Bill No. 2640 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Shin and Pflug spoke in favor of passage of the bill.

MOTION

On motion of Senator Mulliken, Senator Oke was excused.

MOTION

On motion of Senator Regala, Senators Thibaudeau and Jacobsen were excused.

      The President declared the question before the Senate to be the final passage of Substitute House Bill No. 2640.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2640 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 3; Absent, 0; Excused, 3.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Finkbeiner, Franklin, Hargrove, Haugen, Hewitt, Honeyford, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Weinstein and Zarelli - 43

      Voting nay: Senators Fairley, Fraser and Kline - 3

      Excused: Senators Jacobsen, Oke and Thibaudeau - 3

      SUBSTITUTE HOUSE BILL NO. 2640, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Eide, Engrossed Substitute House Bill No. 2925 was immediately transmitted to the House of Representatives.

MOTION

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

MESSAGE FROM THE HOUSE

March 8, 2006

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6533, with the following amendments{s} 6533-s AMH ERIM PETE 102.

      On page 1, line 10, strike "fifty percent" and insert "twenty-five percent from July 1, 2006 through June 30, 2007, fifty percent from July 1, 2007 through June 30, 2008, seventy-five percent from July 1, 2008 through June 30, 2009 and one-hundred percent after June 30, 2009"

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Prentice moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6533.

      Senator Prentice spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Prentice that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6533.

The motion by Senator Prentice carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6533 by voice vote.

MOTION

On motion of Senator Schoesler, Senators Johnson and Honeyford were excused.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6533, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6533, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 41; Nays, 5; Absent, 0; Excused, 3.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Finkbeiner, Franklin, Hargrove, Haugen, Hewitt, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Stevens, Swecker, Weinstein and Zarelli - 41

      Voting nay: Senators Fairley, Fraser, Kline, Spanel and Thibaudeau - 5

      Excused: Senators Honeyford, Jacobsen and Oke - 3

SUBSTITUTE SENATE BILL NO. 6533, as amended by the House, 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.

MESSAGE FROM THE HOUSE

March 8, 2006

MR. PRESIDENT:

The House has passed SECOND SUBSTITUTE SENATE BILL NO. 6793, with the following amendments{s} 6793-S2 AMH .... H5514.7.

      Strike everything after the enacting clause and insert the following:

"PART I

REGIONAL SUPPORT NETWORKS

      NEW SECTION. Sec. 101 (1) The legislature finds that ambiguities have been identified regarding the appropriation and allocation of federal and state funds, and the responsibilities of the department of social and health services and the regional support networks with regard to the provision of inpatient mental health services under the community mental health services act, chapter 71.24 RCW, and the involuntary treatment act, chapter 71.05 RCW. The purpose of this 2006 act is to make retroactive, remedial, curative, and technical amendments in order to resolve such ambiguities.

      (2) In enacting the community mental health services act, the legislature intended the relationship between the state and the regional support networks to be governed solely by the terms of the regional support network contracts and did not intend these relationships to create statutory causes of action not expressly provided for in the contracts. Therefore, the legislature's intent is that, except to the extent expressly provided in contracts entered after the effective date of this section, the department of social and health services and regional support networks shall resolve existing and future disagreements regarding the subject matter identified in sections 103 and 301 of this act through nonjudicial means.

      Sec. 102 RCW 71.24.016 and 2001 c 323 s 4 are each amended to read as follows:

      (1) The legislature intends that eastern and western state hospitals shall operate as clinical centers for handling the most complicated long-term care needs of patients with a primary diagnosis of mental disorder. It is further the intent of the legislature that the community mental health service delivery system focus on maintaining mentally ill individuals in the community. The program shall be evaluated and managed through a limited number of performance measures designed to hold each regional support network accountable for program success.

      (2) The legislature intends to address the needs of people with mental disorders with a targeted, coordinated, and comprehensive set of evidence-based practices that are effective in serving individuals in their community and will reduce the need for placements in state mental hospitals. The legislature further intends to explicitly hold regional support networks accountable for serving people with mental disorders within their geographic boundaries and for not exceeding their allocation of state hospital beds. Within funds appropriated by the legislature for this purpose, regional support networks shall develop the means to serve the needs of people with mental disorders within their geographic boundaries. Elements of the program may include:

      (a) Crisis triage;

      (b) Evaluation and treatment and community hospital beds;

      (c) Residential beds;

      (d) Programs for community treatment teams; and

      (e) Outpatient services.

      (3) The regional support network shall have the flexibility, within the funds appropriated by the legislature for this purpose, to design the mix of services that will be most effective within their service area of meeting the needs of people with mental disorders and avoiding placement of such individuals at the state mental hospital. Regional support networks are encouraged to maximize the use of evidence-based practices and alternative resources with the goal of substantially reducing and potentially eliminating the use of institutions for mental diseases.

      NEW SECTION. Sec. 103 A new section is added to chapter 71.24 RCW to read as follows:

      (1) Except for monetary damage claims which have been reduced to final judgment by a superior court, this section applies to all claims against the state, state agencies, state officials, or state employees that exist on or arise after the effective date of this section.

      (2) Except as expressly provided in contracts entered into between the department and the regional support networks after the effective date of this section, the entities identified in subsection (3) of this section shall have no claim for declaratory relief, injunctive relief, judicial review under chapter 34.05 RCW, or civil liability against the state or state agencies for actions or inactions performed pursuant to the administration of this chapter with regard to the following: (a) The allocation or payment of federal or state funds; (b) the use or allocation of state hospital beds; or (c) financial responsibility for the provision of inpatient mental health care.

      (3) This section applies to counties, regional support networks, and entities which contract to provide regional support network services and their subcontractors, agents, or employees.

      Sec. 104 RCW 71.24.025 and 2005 c 504 s 105 and 2005 c 503 s 2 are each reenacted and amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Acutely mentally ill" means a condition which is limited to a short-term severe crisis episode of:

      (a) A mental disorder as defined in RCW 71.05.020 or, in the case of a child, as defined in RCW 71.34.020;

      (b) Being gravely disabled as defined in RCW 71.05.020 or, in the case of a child, a gravely disabled minor as defined in RCW 71.34.020; or

      (c) Presenting a likelihood of serious harm as defined in RCW 71.05.020 or, in the case of a child, as defined in RCW 71.34.020.

      (2) "Available resources" means funds appropriated for the purpose of providing community mental health programs, federal funds, except those provided according to Title XIX of the Social Security Act, and state funds appropriated under this chapter or chapter 71.05 RCW by the legislature during any biennium for the purpose of providing residential services, resource management services, community support services, and other mental health services. This does not include funds appropriated for the purpose of operating and administering the state psychiatric hospitals((, except as negotiated according to RCW 71.24.300(1)(d))).

      (3) "Child" means a person under the age of eighteen years.
(4) "Chronically mentally ill adult" means an adult who has a mental disorder and meets at least one of the following criteria:

      (a) Has undergone two or more episodes of hospital care for a mental disorder within the preceding two years; or

      (b) Has experienced a continuous psychiatric hospitalization or residential treatment exceeding six months' duration within the preceding year; or

      (c) Has been unable to engage in any substantial gainful activity by reason of any mental disorder which has lasted for a continuous period of not less than twelve months. "Substantial gainful activity" shall be defined by the department by rule consistent with Public Law 92-603, as amended.

      (5) "Community mental health program" means all mental health services, activities, or programs using available resources.

      (6) "Community mental health service delivery system" means public or private agencies that provide services specifically to persons with mental disorders as defined under RCW 71.05.020 and receive funding from public sources.

      (7) "Community support services" means services authorized, planned, and coordinated through resource management services including, at a minimum, assessment, diagnosis, emergency crisis intervention available twenty-four hours, seven days a week, prescreening determinations for mentally ill persons being considered for placement in nursing homes as required by federal law, screening for patients being considered for admission to residential services, diagnosis and treatment for acutely mentally ill and severely emotionally disturbed children discovered under screening through the federal Title XIX early and periodic screening, diagnosis, and treatment program, investigation, legal, and other nonresidential services under chapter 71.05 RCW, case management services, psychiatric treatment including medication supervision, counseling, psychotherapy, assuring transfer of relevant patient information between service providers, recovery services, and other services determined by regional support networks.

      (8) "Consensus-based" means a program or practice that has general support among treatment providers and experts, based on experience or professional literature, and may have anecdotal or case study support, or that is agreed but not possible to perform studies with random assignment and controlled groups.

      (9) "County authority" means the board of county commissioners, county council, or county executive having authority to establish a community mental health program, or two or more of the county authorities specified in this subsection which have entered into an agreement to provide a community mental health program.

      (10) "Department" means the department of social and health services.

      (11) "Designated mental health professional" means a mental health professional designated by the county or other authority authorized in rule to perform the duties specified in this chapter.

      (12) "Emerging best practice" or "promising practice" means a practice that presents, based on preliminary information, potential for becoming a research-based or consensus-based practice.

      (13) "Evidence-based" means a program or practice that has had multiple site random controlled trials across heterogeneous populations demonstrating that the program or practice is effective for the population.

      (14) "Licensed service provider" means an entity licensed according to this chapter or chapter 71.05 RCW or an entity deemed to meet state minimum standards as a result of accreditation by a recognized behavioral health accrediting body recognized and having a current agreement with the department, that meets state minimum standards or persons licensed under chapter 18.57, 18.71, 18.83, or 18.79 RCW, as it applies to registered nurses and advanced registered nurse practitioners.

      (15) "Long-term inpatient care" means inpatient services for persons committed for, or voluntarily receiving intensive treatment for, periods of ninety days or greater under chapter 71.05 RCW. "Long-term inpatient care" as used in this chapter does not include: (a) Services for individuals committed under chapter 71.05 RCW who are receiving services pursuant to a conditional release or a court-ordered less restrictive alternative to detention; or (b) services for individuals voluntarily receiving less restrictive alternative treatment on the grounds of the state hospital.

      (16) "Mental health services" means all services provided by regional support networks and other services provided by the state for the mentally ill.

      (((16))) (17) "Mentally ill persons" and "the mentally ill" mean persons and conditions defined in subsections (1), (4), (((25))) (26), and (((26))) (27) of this section.

      (((17))) (18) "Recovery" means the process in which people are able to live, work, learn, and participate fully in their communities.

      (((18))) (19) "Regional support network" means a county authority or group of county authorities or other nonprofit entity recognized by the secretary in contract in a defined region.

      (((19))) (20) "Registration records" include all the records of the department, regional support networks, treatment facilities, and other persons providing services to the department, county departments, or facilities which identify persons who are receiving or who at any time have received services for mental illness.

      (((20))) (21) "Residential services" means a complete range of residences and supports authorized by resource management services and which may involve a facility, a distinct part thereof, or services which support community living, for acutely mentally ill persons, chronically mentally ill adults, severely emotionally disturbed children, or seriously disturbed adults determined by the regional support network to be at risk of becoming acutely or chronically mentally ill. The services shall include at least evaluation and treatment services as defined in chapter 71.05 RCW, acute crisis respite care, long-term adaptive and rehabilitative care, and supervised and supported living services, and shall also include any residential services developed to service mentally ill persons in nursing homes, boarding homes, and adult family homes, and may include outpatient services provided as an element in a package of services in a supported housing model. Residential services for children in out-of-home placements related to their mental disorder shall not include the costs of food and shelter, except for children's long-term residential facilities existing prior to January 1, 1991.

(((21))) (22) "Research-based" means a program or practice that has some research demonstrating effectiveness, but that does not yet meet the standard of evidence-based practices.

(((22))) (23) "Resilience" means the personal and community qualities that enable individuals to rebound from adversity, trauma, tragedy, threats, or other stresses, and to live productive lives.

(((23))) (24) "Resource management services" mean the planning, coordination, and authorization of residential services and community support services administered pursuant to an individual service plan for: (a) Acutely mentally ill adults and children; (b) chronically mentally ill adults; (c) severely emotionally disturbed children; or (d) seriously disturbed adults determined solely by a regional support network to be at risk of becoming acutely or chronically mentally ill. Such planning, coordination, and authorization shall include mental health screening for children eligible under the federal Title XIX early and periodic screening, diagnosis, and treatment program. Resource management services include seven day a week, twenty-four hour a day availability of information regarding mentally ill adults' and children's enrollment in services and their individual service plan to designated mental health professionals, evaluation and treatment facilities, and others as determined by the regional support network.

      (((24))) (25) "Secretary" means the secretary of social and health services.

      (((25))) (26) "Seriously disturbed person" means a person who:

      (a) Is gravely disabled or presents a likelihood of serious harm to himself or herself or others, or to the property of others, as a result of a mental disorder as defined in chapter 71.05 RCW;

      (b) Has been on conditional release status, or under a less restrictive alternative order, at some time during the preceding two years from an evaluation and treatment facility or a state mental health hospital;

      (c) Has a mental disorder which causes major impairment in several areas of daily living;

      (d) Exhibits suicidal preoccupation or attempts; or

      (e) Is a child diagnosed by a mental health professional, as defined in chapter 71.34 RCW, as experiencing a mental disorder which is clearly interfering with the child's functioning in family or school or with peers or is clearly interfering with the child's personality development and learning.

      (((26))) (27) "Severely emotionally disturbed child" means a child who has been determined by the regional support network to be experiencing a mental disorder as defined in chapter 71.34 RCW, including those mental disorders that result in a behavioral or conduct disorder, that is clearly interfering with the child's functioning in family or school or with peers and who meets at least one of the following criteria:

      (a) Has undergone inpatient treatment or placement outside of the home related to a mental disorder within the last two years;

      (b) Has undergone involuntary treatment under chapter 71.34 RCW within the last two years;

      (c) Is currently served by at least one of the following child-serving systems: Juvenile justice, child-protection/welfare, special education, or developmental disabilities;

      (d) Is at risk of escalating maladjustment due to:

      (i) Chronic family dysfunction involving a mentally ill or inadequate caretaker;
(ii) Changes in custodial adult;

      (iii) Going to, residing in, or returning from any placement outside of the home, for example, psychiatric hospital, short-term inpatient, residential treatment, group or foster home, or a correctional facility;

      (iv) Subject to repeated physical abuse or neglect;

      (v) Drug or alcohol abuse; or

      (vi) Homelessness.

      (((27))) (28) "State minimum standards" means minimum requirements established by rules adopted by the secretary and necessary to implement this chapter for: (a) Delivery of mental health services; (b) licensed service providers for the provision of mental health services; (c) residential services; and (d) community support services and resource management services.

      (((28))) (29) "Treatment records" include registration and all other records concerning persons who are receiving or who at any time have received services for mental illness, which are maintained by the department, by regional support networks and their staffs, and by treatment facilities. Treatment records do not include notes or records maintained for personal use by a person providing treatment services for the department, regional support networks, or a treatment facility if the notes or records are not available to others.

      (((29))) (30) "Tribal authority," for the purposes of this section and RCW 71.24.300 only, means: The federally recognized Indian tribes and the major Indian organizations recognized by the secretary insofar as these organizations do not have a financial relationship with any regional support network that would present a conflict of interest.

      Sec. 105 RCW 71.24.045 and 2005 c 503 s 8 are each amended to read as follows:

      The regional support network shall:

      (1) Contract as needed with licensed service providers. The regional support network may, in the absence of a licensed service provider entity, become a licensed service provider entity pursuant to minimum standards required for licensing by the department for the purpose of providing services not available from licensed service providers;

      (2) Operate as a licensed service provider if it deems that doing so is more efficient and cost effective than contracting for services. When doing so, the regional support network shall comply with rules promulgated by the secretary that shall provide measurements to determine when a regional support network provided service is more efficient and cost effective;

      (3) Monitor and perform biennial fiscal audits of licensed service providers who have contracted with the regional support network to provide services required by this chapter. The monitoring and audits shall be performed by means of a formal process which insures that the licensed service providers and professionals designated in this subsection meet the terms of their contracts;

      (4) Assure that the special needs of minorities, the elderly, disabled, children, and low-income persons are met within the priorities established in this chapter;

      (5) Maintain patient tracking information in a central location as required for resource management services and the department's information system;

      (6) ((Use not more than two percent of state-appropriated community mental health funds, which shall not include federal funds, to administer community mental health programs under RCW 71.24.155: PROVIDED, That county authorities serving a county or combination of counties whose population is one hundred twenty-five thousand or more may be entitled to sufficient state-appropriated community mental health funds to employ up to one full-time employee or the equivalent thereof in addition to the two percent limit established in this subsection when such employee is providing staff services to a county mental health advisory board;

      (7))) Collaborate to ensure that policies do not result in an adverse shift of mentally ill persons into state and local correctional facilities;

      (((8))) (7) Work with the department to expedite the enrollment or re-enrollment of eligible persons leaving state or local correctional facilities and institutions for mental diseases;

      (((9))) (8) If a regional support network is not operated by the county, work closely with the county designated mental health professional or county designated crisis responder to maximize appropriate placement of persons into community services; and

      (((10))) (9) Coordinate services for individuals who have received services through the community mental health system and who become patients at a state mental hospital to ensure they are transitioned into the community in accordance with mutually agreed upon discharge plans and upon determination by the medical director of the state mental hospital that they no longer need intensive inpatient care.

      Sec. 106 RCW 71.24.300 and 2005 c 503 s 11 are each amended to read as follows:

      (1) Upon the request of a tribal authority or authorities within a regional support network the joint operating agreement or the county authority shall allow for the inclusion of the tribal authority to be represented as a party to the regional support network.

      (2) The roles and responsibilities of the county and tribal authorities shall be determined by the terms of that agreement including a determination of membership on the governing board and advisory committees, the number of tribal representatives to be party to the agreement, and the provisions of law and shall assure the provision of culturally competent services to the tribes served.

      (3) The state mental health authority may not determine the roles and responsibilities of county authorities as to each other under regional support networks by rule, except to assure that all duties required of regional support networks are assigned and that counties and the regional support network do not duplicate functions and that a single authority has final responsibility for all available resources and performance under the regional support network's contract with the secretary.

      (4) If a regional support network is a private nonprofit entity, the department shall allow for the inclusion of the tribal authority to be represented as a party to the regional support network.

      (5) The roles and responsibilities of the private nonprofit entity and the tribal authorities shall be determined by the department, through negotiation with the tribal authority.

      (((1))) (6) Regional support networks shall submit an overall six-year operating and capital plan, timeline, and budget and submit progress reports and an updated two-year plan biennially thereafter, to assume within available resources all of the following duties:

      (a) Administer and provide for the availability of all resource management services, residential services, and community support services.

      (b) Administer and provide for the availability of all investigation, transportation, court-related, and other services provided by the state or counties pursuant to chapter 71.05 RCW.

      (c) Provide within the boundaries of each regional support network evaluation and treatment services for at least ((eighty-five)) ninetypercent of persons detained or committed for periods up to seventeen days according to chapter 71.05 RCW. Regional support networks ((with populations of less than one hundred fifty thousand)) may contract to purchase evaluation and treatment services from other networks if they are unable to provide for appropriate resources within their boundaries. Insofar as the original intent of serving persons in the community is maintained, the secretary is authorized to approve exceptions on a case-by-case basis to the requirement to provide evaluation and treatment services within the boundaries of each regional support network. Such exceptions are limited to:

      (i) Contracts with neighboring or contiguous regions; or

      (ii) Individuals detained or committed for periods up to seventeen days at the state hospitals at the discretion of the secretary.

      (d) ((Administer a portion of funds appropriated by the legislature to house mentally ill persons in state institutions from counties within the boundaries of any regional support network, with the exception of persons currently confined at, or under the supervision of, a state mental hospital pursuant to chapter 10.77 RCW, and provide for the care of all persons needing evaluation and treatment services for periods up to seventeen days according to chapter 71.05 RCW in appropriate residential services, which may include state institutions. The regional support networks shall reimburse the state for use of state institutions at a rate equal to that assumed by the legislature when appropriating funds for such care at state institutions during the biennium when reimbursement occurs. The secretary shall submit a report to the appropriate committees of the senate and house of representatives on the efforts to implement this section by October 1, 2002. The duty of a state hospital to accept persons for evaluation and treatment under chapter 71.05 RCW is limited by the responsibilities assigned to regional support networks under this section.

      (e))) Administer and provide for the availability of all other mental health services, which shall include patient counseling, day treatment, consultation, education services, employment services as defined in RCW 71.24.035, and mental health services to children.

      (((f))) (e) Establish standards and procedures for reviewing individual service plans and determining when that person may be discharged from resource management services.

      (((2))) (7) A regional support network may request that any state-owned land, building, facility, or other capital asset which was ever purchased, deeded, given, or placed in trust for the care of the mentally ill and which is within the boundaries of a regional support network be made available to support the operations of the regional support network. State agencies managing such capital assets shall give first priority to requests for their use pursuant to this chapter.

      (((3))) (8) Each regional support network shall appoint a mental health advisory board which shall review and provide comments on plans and policies developed under this chapter, provide local oversight regarding the activities of the regional support network, and work with the regional support network to resolve significant concerns regarding service delivery and outcomes. The department shall establish statewide procedures for the operation of regional advisory committees including mechanisms for advisory board feedback to the department regarding regional support network performance. The composition of the board shall be broadly representative of the demographic character of the region and shall include, but not be limited to, representatives of consumers and families, law enforcement, and where the county is not the regional support network, county elected officials. Composition and length of terms of board members may differ between regional support networks but shall be included in each regional support network's contract and approved by the secretary.

      (((4))) (9) Regional support networks shall assume all duties specified in their plans and joint operating agreements through biennial contractual agreements with the secretary.

      (((5))) (10) Regional support networks may receive technical assistance from the housing trust fund and may identify and submit projects for housing and housing support services to the housing trust fund established under chapter 43.185 RCW. Projects identified or submitted under this subsection must be fully integrated with the regional support network six-year operating and capital plan, timeline, and budget required by subsection (((1))) (6) of this section.

      Sec. 107 RCW 71.24.310 and 1989 c 205 s 6 are each amended to read as follows:

      The legislature finds that administration of chapter 71.05 RCW and this chapter can be most efficiently and effectively implemented as part of the regional support network defined in RCW 71.24.025. For this reason, the legislature intends that ((any enhanced program funding for implementation of)) the department and the regional support networks shall work together to implement chapter 71.05 RCW ((or this chapter, except for funds allocated for implementation of mandatory statewide programs as required by federal statute, be made available primarily to those counties participating in regional support networks)) as follows:

      (1) By June 1, 2006, regional support networks shall recommend to the department the number of state hospital beds that should be allocated for use by each regional support network. The statewide total allocation shall not exceed the number of state hospital beds offering long-term inpatient care, as defined in this chapter, for which funding is provided in the biennial appropriations act.

      (2) If there is consensus among the regional support networks regarding the number of state hospital beds that should be allocated for use by each regional support network, the department shall contract with each regional support network accordingly.

      (3) If there is not consensus among the regional support networks regarding the number of beds that should be allocated for use by each regional support network, the department shall establish by emergency rule the number of state hospital beds that are available for use by each regional support network. The emergency rule shall be effective September 1, 2006. The primary factor used in the allocation shall be the estimated number of acutely and chronically mentally ill adults in each regional support network area, based upon population-adjusted incidence and utilization.

      (4) The allocation formula shall be updated at least every three years to reflect demographic changes, and new evidence regarding the incidence of acute and chronic mental illness and the need for long-term inpatient care. In the updates, the statewide total allocation shall include (a) all state hospital beds offering long-term inpatient care for which funding is provided in the biennial appropriations act; plus (b) the estimated equivalent number of beds or comparable diversion services contracted in accordance with subsection (5) of this section.

      (5) The department is encouraged to enter performance-based contracts with regional support networks to provide some or all of the regional support network's allocated long-term inpatient treatment capacity in the community, rather than in the state hospital. The performance contracts shall specify the number of patient days of care available for use by the regional support network in the state hospital.

      (6) If a regional support network uses more state hospital patient days of care than it has been allocated under subsection (3) or (4) of this section, or than it has contracted to use under subsection (5) of this section, whichever is less, it shall reimburse the department for that care. The reimbursement rate per day shall be the hospital's total annual budget for long-term inpatient care, divided by the total patient days of care assumed in development of that budget.

      (7) One-half of any reimbursements received pursuant to subsection (6) of this section shall be used to support the cost of operating the state hospital. The department shall distribute the remaining half of such reimbursements among regional support networks that have used less than their allocated or contracted patient days of care at that hospital, proportional to the number of patient days of care not used.

PART II

MENTAL HEALTH AUTHORITY

      Sec. 201 RCW 71.24.035 and 2005 c 504 s 715 and 2005 c 503 s 7 are each reenacted and amended to read as follows:

      (1) The department is designated as the state mental health authority.

      (2) The secretary shall provide for public, client, and licensed service provider participation in developing the state mental health program, developing contracts with regional support networks, and any waiver request to the federal government under medicaid.

      (3) The secretary shall provide for participation in developing the state mental health program for children and other underserved populations, by including representatives on any committee established to provide oversight to the state mental health program.

      (4) The secretary shall be designated as the regional support network if the regional support network fails to meet state minimum standards or refuses to exercise responsibilities under RCW 71.24.045.

      (5) The secretary shall:

      (a) Develop a biennial state mental health program that incorporates regional biennial needs assessments and regional mental health service plans and state services for mentally ill adults and children. The secretary shall also develop a six-year state mental health plan;

      (b) Assure that any regional or county community mental health program provides access to treatment for the region's residents in the following order of priority: (i) The acutely mentally ill; (ii) chronically mentally ill adults and severely emotionally disturbed children; and (iii) the seriously disturbed. Such programs shall provide:

      (A) Outpatient services;

      (B) Emergency care services for twenty-four hours per day;

      (C) Day treatment for mentally ill persons which includes training in basic living and social skills, supported work, vocational rehabilitation, and day activities. Such services may include therapeutic treatment. In the case of a child, day treatment includes age-appropriate basic living and social skills, educational and prevocational services, day activities, and therapeutic treatment;

      (D) Screening for patients being considered for admission to state mental health facilities to determine the appropriateness of admission;

      (E) Employment services, which may include supported employment, transitional work, placement in competitive employment, and other work-related services, that result in mentally ill persons becoming engaged in meaningful and gainful full or part-time work. Other sources of funding such as the division of vocational rehabilitation may be utilized by the secretary to maximize federal funding and provide for integration of services;

      (F) Consultation and education services; and

      (G) Community support services;

      (c) Develop and adopt rules establishing state minimum standards for the delivery of mental health services pursuant to RCW 71.24.037 including, but not limited to:

      (i) Licensed service providers. These rules shall permit a county-operated mental health program to be licensed as a service provider subject to compliance with applicable statutes and rules. The secretary shall provide for deeming of compliance with state minimum standards for those entities accredited by recognized behavioral health accrediting bodies recognized and having a current agreement with the department;

      (ii) Regional support networks; and

      (iii) Inpatient services, evaluation and treatment services and facilities under chapter 71.05 RCW, resource management services, and community support services;

      (d) Assure that the special needs of minorities, the elderly, disabled, children, and low-income persons are met within the priorities established in this section;

      (e) Establish a standard contract or contracts, consistent with state minimum standards and RCW 71.24.320 ((and)), 71.24.330, and 71.24.3201, which shall be used in contracting with regional support networks. The standard contract shall include a maximum fund balance, which shall be consistent with that required by federal regulations or waiver stipulations;

      (f) Establish, to the extent possible, a standardized auditing procedure which minimizes paperwork requirements of regional support networks and licensed service providers. The audit procedure shall focus on the outcomes of service and not the processes for accomplishing them;

      (g) Develop and maintain an information system to be used by the state and regional support networks that includes a tracking method which allows the department and regional support networks to identify mental health clients' participation in any mental health service or public program on an immediate basis. The information system shall not include individual patient's case history files. Confidentiality of client information and records shall be maintained as provided in this chapter and in RCW 71.05.390, 71.05.420, and 71.05.440;

      (h) License service providers who meet state minimum standards;

      (i) Certify regional support networks that meet state minimum standards;

      (j) Periodically monitor the compliance of certified regional support networks and their network of licensed service providers for compliance with the contract between the department, the regional support network, and federal and state rules at reasonable times and in a reasonable manner;

      (k) Fix fees to be paid by evaluation and treatment centers to the secretary for the required inspections;

      (l) Monitor and audit regional support networks and licensed service providers as needed to assure compliance with contractual agreements authorized by this chapter;

      (m) Adopt such rules as are necessary to implement the department's responsibilities under this chapter; and

      (n) Assure the availability of an appropriate amount, as determined by the legislature in the operating budget by amounts appropriated for this specific purpose, of community-based, geographically distributed residential services.

      (6) The secretary shall use available resources only for regional support networks, except to the extent authorized, and in accordance with any priorities or conditions specified, in the biennial appropriations act.

      (7) Each certified regional support network and licensed service provider shall file with the secretary, on request, such data, statistics, schedules, and information as the secretary reasonably requires. A certified regional support network or licensed service provider which, without good cause, fails to furnish any data, statistics, schedules, or information as requested, or files fraudulent reports thereof, may have its certification or license revoked or suspended.

      (8) The secretary may suspend, revoke, limit, or restrict a certification or license, or refuse to grant a certification or license for failure to conform to: (a) The law; (b) applicable rules and regulations; (c) applicable standards; or (d) state minimum standards.

      (9) The superior court may restrain any regional support network or service provider from operating without certification or a license or any other violation of this section. The court may also review, pursuant to procedures contained in chapter 34.05 RCW, any denial, suspension, limitation, restriction, or revocation of certification or license, and grant other relief required to enforce the provisions of this chapter.

      (10) Upon petition by the secretary, and after hearing held upon reasonable notice to the facility, the superior court may issue a warrant to an officer or employee of the secretary authorizing him or her to enter at reasonable times, and examine the records, books, and accounts of any regional support network or service provider refusing to consent to inspection or examination by the authority.

      (11) Notwithstanding the existence or pursuit of any other remedy, the secretary may file an action for an injunction or other process against any person or governmental unit to restrain or prevent the establishment, conduct, or operation of a regional support network or service provider without certification or a license under this chapter.

      (12) The standards for certification of evaluation and treatment facilities shall include standards relating to maintenance of good physical and mental health and other services to be afforded persons pursuant to this chapter and chapters 71.05 and 71.34 RCW, and shall otherwise assure the effectuation of the purposes of these chapters.

      (13)(((a) The department, in consultation with affected parties, shall establish a distribution formula that reflects regional needs assessments based on the number of persons who are acutely mentally ill, chronically mentally ill, severely emotionally disturbed children, and seriously disturbed. The formula shall take into consideration the impact on regions of demographic factors which result in concentrations of priority populations as set forth in subsection (5)(b) of this section. These factors shall include the population concentrations resulting from commitments under chapters 71.05 and 71.34 RCW to state psychiatric hospitals, as well as concentration in urban areas, at border crossings at state boundaries, and other significant demographic and workload factors.

      (b) The formula shall also include a projection of the funding allocations that will result for each region, which specifies allocations according to priority populations, including the allocation for services to children and other underserved populations.

      (c) After July 1, 2003, the department may allocate up to two percent of total funds to be distributed to the regional support networks for incentive payments to reward the achievement of superior outcomes, or significantly improved outcomes, as measured by a statewide performance measurement system consistent with the framework recommended in the joint legislative audit and review committee's performance audit of the mental health system. The department shall annually report to the legislature on its criteria and allocation of the incentives provided under this subsection.)) The department shall distribute appropriated state and federal funds in accordance with any priorities, terms, or conditions specified in the appropriations act.

      (14) The secretary shall assume all duties assigned to the nonparticipating regional support networks under chapters 71.05, 71.34, and 71.24 RCW. Such responsibilities shall include those which would have been assigned to the nonparticipating counties in regions where there are not participating regional support networks.

      The regional support networks, or the secretary's assumption of all responsibilities under chapters 71.05, 71.34, and 71.24 RCW, shall be included in all state and federal plans affecting the state mental health program including at least those required by this chapter, the medicaid program, and P.L. 99-660. Nothing in these plans shall be inconsistent with the intent and requirements of this chapter.

      (15) The secretary shall:

      (a) Disburse funds for the regional support networks within sixty days of approval of the biennial contract. The department must either approve or reject the biennial contract within sixty days of receipt.

      (b) Enter into biennial contracts with regional support networks. The contracts shall be consistent with available resources. No contract shall be approved that does not include progress toward meeting the goals of this chapter by taking responsibility for: (i) Short-term commitments; (ii) residential care; and (iii) emergency response systems.

      (c) Notify regional support networks of their allocation of available resources at least sixty days prior to the start of a new biennial contract period.

      (d) Deny all or part of the funding allocations to regional support networks based solely upon formal findings of noncompliance with the terms of the regional support network's contract with the department. ((Written notice and at least thirty days for corrective action must precede any such action. In such cases, regional support networks shall have full rights to appeal under chapter 34.05 RCW.)) Regional support networks disputing the decision of the secretary to withhold funding allocations are limited to the remedies provided in the department's contracts with the regional support networks.

      (16) The department, in cooperation with the state congressional delegation, shall actively seek waivers of federal requirements and such modifications of federal regulations as are necessary to allow federal medicaid reimbursement for services provided by free-standing evaluation and treatment facilities certified under chapter 71.05 RCW. The department shall periodically report its efforts to the appropriate committees of the senate and the house of representatives.

      Sec. 202 RCW 71.24.320 and 2005 c 503 s 4 are each amended to read as follows:

      (1) The secretary shall initiate a procurement process for regional support networks in 2005. In the first step of the procurement process, existing regional support networks may respond to a request for qualifications developed by the department. The secretary shall issue the request for qualifications not later than October 1, 2005. The request for qualifications shall be based on cost-effectiveness, adequate residential and service capabilities, effective collaboration with criminal justice agencies and the chemical dependency treatment system, and the ability to provide the full array of services as stated in the mental health state plan, and shall meet all applicable federal and state regulations and standards. An existing regional support network shall be awarded the contract with the department if it substantially meets the requirements of the request for qualifications developed by the department.

      (2)(a) If an existing regional support network chooses not to respond to the request for qualifications, or is unable to substantially meet the requirements of the request for qualifications, the department shall utilize a procurement process in which other entities recognized by the secretary may bid to serve as the regional support network in that region. The procurement process shall begin with a request for proposals issued March 1, 2006.

      (i) The request for proposal shall include a scoring factor for proposals that include additional financial resources beyond that provided by state appropriation or allocation.

      (ii) Regional support networks that substantially met the requirements of the request for qualifications may bid to serve as the regional support network for other regions of the state that are subject to the request for proposal process. The proposal shall be evaluated on whether the bid meets the threshold requirement for the new region and shall not subject the regional support networks' original region to the request for proposal.

      (b) Prior to final evaluation and scoring of the proposals all respondents will be provided with an opportunity for a detailed briefing by the department regarding the deficiencies in the proposal and shall be provided an opportunity to clarify information previously submitted.

      Sec. 203 RCW 71.24.330 and 2005 c 503 s 6 are each amended to read as follows:

      (1) Contracts between a regional support network and the department shall include mechanisms for monitoring performance under the contract and remedies for failure to substantially comply with the requirements of the contract including, but not limited to, financial penalties, termination of the contract, and reprocurement of the contract.

      (2) The procurement process shall encourage the preservation of infrastructure previously purchased by the community mental health service delivery system, the maintenance of linkages between other services and delivery systems, and maximization of the use of available funds for services versus profits. The procurement process shall provide that public funds appropriated by the legislature shall not be used to promote or deter, encourage, or discourage employees from exercising their rights under Title 29, chapter 7, subchapter II, United States Code or chapter 41.56 RCW.

      (3) In addition to the requirements of RCW 71.24.035, contracts shall:

      (a) Define administrative costs and ensure that the regional support network does not exceed an administrative cost of ten percent of available funds;

      (b) Require effective collaboration with law enforcement, criminal justice agencies, and the chemical dependency treatment system;

      (c) Require substantial implementation of department adopted integrated screening and assessment process and matrix of best practices; ((and))

      (d) Maintain the decision-making independence of designated mental health professionals;

      (e) Except at the discretion of the secretary or as specified in the biennial budget, require regional support networks to pay the state for the costs associated with individuals who are being served on the grounds of the state hospitals and who are not receiving long-term inpatient care as defined in RCW 71.24.025; and

      (f) Include a negotiated alternative dispute resolution clause.

      Sec. 204 RCW 72.23.025 and 1998 c 245 s 141 are each amended to read as follows:

      (1) It is the intent of the legislature to improve the quality of service at state hospitals, eliminate overcrowding, and more specifically define the role of the state hospitals. The legislature intends that eastern and western state hospitals shall become clinical centers for handling the most complicated long-term care needs of patients with a primary diagnosis of mental disorder. ((Over the next six years, their involvement in providing short-term, acute care, and less complicated long-term care shall be diminished in accordance with the revised responsibilities for mental health care under chapter 71.24 RCW.)) To this end, the legislature intends that funds appropriated for mental health programs, including funds for regional support networks and the state hospitals be used for persons with primary diagnosis of mental disorder. The legislature finds that establishment of the eastern state hospital board, the western state hospital board, and institutes for the study and treatment of mental disorders at both eastern state hospital and western state hospital will be instrumental in implementing the legislative intent.

      (2)(a) The eastern state hospital board and the western state hospital board are each established. Members of the boards shall be appointed by the governor with the consent of the senate. Each board shall include:

      (i) The director of the institute for the study and treatment of mental disorders established at the hospital;

      (ii) One family member of a current or recent hospital resident;

      (iii) One consumer of services;

      (iv) One community mental health service provider;

      (v) Two citizens with no financial or professional interest in mental health services;

      (vi) One representative of the regional support network in which the hospital is located;

      (vii) One representative from the staff who is a physician;

      (viii) One representative from the nursing staff;

      (ix) One representative from the other professional staff;

      (x) One representative from the nonprofessional staff; and

      (xi) One representative of a minority community.

      (b) At least one representative listed in (a)(viii), (ix), or (x) of this subsection shall be a union member.

      (c) Members shall serve four-year terms. Members of the board shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060 and shall receive compensation as provided in RCW 43.03.240.

      (3) The boards established under this section shall:

      (a) Monitor the operation and activities of the hospital;

      (b) Review and advise on the hospital budget;

      (c) Make recommendations to the governor and the legislature for improving the quality of service provided by the hospital;

      (d) Monitor and review the activities of the hospital in implementing the intent of the legislature set forth in this section; and

      (e) Consult with the secretary regarding persons the secretary may select as the superintendent of the hospital whenever a vacancy occurs.

      (4)(a) There is established at eastern state hospital and western state hospital, institutes for the study and treatment of mental disorders. The institutes shall be operated by joint operating agreements between state colleges and universities and the department of social and health services. The institutes are intended to conduct training, research, and clinical program development activities that will directly benefit mentally ill persons receiving treatment in Washington state by performing the following activities:

      (i) Promote recruitment and retention of highly qualified professionals at the state hospitals and community mental health programs;

      (ii) Improve clinical care by exploring new, innovative, and scientifically based treatment models for persons presenting particularly difficult and complicated clinical syndromes;

      (iii) Provide expanded training opportunities for existing staff at the state hospitals and community mental health programs;

      (iv) Promote bilateral understanding of treatment orientation, possibilities, and challenges between state hospital professionals and community mental health professionals.

      (b) To accomplish these purposes the institutes may, within funds appropriated for this purpose:

      (i) Enter joint operating agreements with state universities or other institutions of higher education to accomplish the placement and training of students and faculty in psychiatry, psychology, social work, occupational therapy, nursing, and other relevant professions at the state hospitals and community mental health programs;

      (ii) Design and implement clinical research projects to improve the quality and effectiveness of state hospital services and operations;

      (iii) Enter into agreements with community mental health service providers to accomplish the exchange of professional staff between the state hospitals and community mental health service providers;

      (iv) Establish a student loan forgiveness and conditional scholarship program to retain qualified professionals at the state hospitals and community mental health providers when the secretary has determined a shortage of such professionals exists.

      (c) Notwithstanding any other provisions of law to the contrary, the institutes may enter into agreements with the department or the state hospitals which may involve changes in staffing necessary to implement improved patient care programs contemplated by this section.

      (d) The institutes are authorized to seek and accept public or private gifts, grants, contracts, or donations to accomplish their purposes under this section.

PART III

INVOLUNTARY TREATMENT

      NEW SECTION. Sec. 301 A new section is added to chapter 71.05 RCW to read as follows:

      (1) Except for monetary damage claims which have been reduced to final judgment by a superior court, this section applies to all claims against the state, state agencies, state officials, or state employees that exist on or arise after the effective date of this section.

      (2) Except as expressly provided in contracts entered into between the department and the regional support networks after the effective date of this section, the entities identified in subsection (3) of this section shall have no claim for declaratory relief, injunctive relief, judicial review under chapter 34.05 RCW, or civil liability against the state or state agencies for actions or inactions performed pursuant to the administration of this chapter with regard to the following: (a) The allocation or payment of federal or state funds; (b) the use or allocation of state hospital beds; or (c) financial responsibility for the provision of inpatient mental health care.

      (3) This section applies to counties, regional support networks, and entities which contract to provide regional support network services and their subcontractors, agents, or employees.

      Sec. 302 RCW 71.05.230 and 1998 c 297 s 13 are each amended to read as follows:

      A person detained for seventy-two hour evaluation and treatment may be detained for not more than fourteen additional days of involuntary intensive treatment or ninety additional days of a less restrictive alternative to involuntary intensive treatment. There shall be no fee for filing petitions for fourteen days of involuntary intensive treatment. A petition may only be filed if the following conditions are met:

      (1) The professional staff of the agency or facility providing evaluation services has analyzed the person's condition and finds that the condition is caused by mental disorder and either results in a likelihood of serious harm, or results in the detained person being gravely disabled and are prepared to testify those conditions are met; and

      (2) The person has been advised of the need for voluntary treatment and the professional staff of the facility has evidence that he or she has not in good faith volunteered; and

      (3) The facility providing intensive treatment is certified to provide such treatment by the department; and

      (4) The professional staff of the agency or facility or the ((county)) designated mental health professional has filed a petition for fourteen day involuntary detention or a ninety day less restrictive alternative with the court. The petition must be signed either by two physicians or by one physician and a mental health professional who have examined the person. If involuntary detention is sought the petition shall state facts that support the finding that such person, as a result of mental disorder, presents a likelihood of serious harm, or is gravely disabled and that there are no less restrictive alternatives to detention in the best interest of such person or others. The petition shall state specifically that less restrictive alternative treatment was considered and specify why treatment less restrictive than detention is not appropriate. If an involuntary less restrictive alternative is sought, the petition shall state facts that support the finding that such person, as a result of mental disorder, presents a likelihood of serious harm, or is gravely disabled and shall set forth the less restrictive alternative proposed by the facility; and

      (5) A copy of the petition has been served on the detained person, his or her attorney and his or her guardian or conservator, if any, prior to the probable cause hearing; and

      (6) The court at the time the petition was filed and before the probable cause hearing has appointed counsel to represent such person if no other counsel has appeared; and

      (7) The court has ordered a fourteen day involuntary intensive treatment or a ninety day less restrictive alternative treatment after a probable cause hearing has been held pursuant to RCW 71.05.240; and

      (8) At the conclusion of the initial commitment period, the professional staff of the agency or facility or the ((county)) designated mental health professional may petition for an additional period of either ninety days of less restrictive alternative treatment or ninety days of involuntary intensive treatment as provided in RCW 71.05.290; and

      (9) If the hospital or facility designated to provide outpatient treatment is other than the facility providing involuntary treatment, the outpatient facility so designated has agreed to assume such responsibility.

      Sec. 303 RCW 71.05.300 and 1998 c 297 s 17 are each amended to read as follows:

      (1) The petition for ninety day treatment shall be filed with the clerk of the superior court at least three days before expiration of the fourteen-day period of intensive treatment. At the time of filing such petition, the clerk shall set a time for the person to come before the court on the next judicial day after the day of filing unless such appearance is waived by the person's attorney, and the clerk shall notify the ((county)) designated mental health professional. The ((county)) designated mental health professional shall immediately notify the person detained, his or her attorney, if any, and his or her guardian or conservator, if any, ((and)) the prosecuting attorney, and the regional support network administrator, and provide a copy of the petition to such persons as soon as possible. The regional support network administrator or designee may review the petition and may appear and testify at the full hearing on the petition.

      (2) At the time set for appearance the detained person shall be brought before the court, unless such appearance has been waived and the court shall advise him or her of his or her right to be represented by an attorney and of his or her right to a jury trial. If the detained person is not represented by an attorney, or is indigent or is unwilling to retain an attorney, the court shall immediately appoint an attorney to represent him or her. The court shall, if requested, appoint a reasonably available licensed physician, psychologist, or psychiatrist, designated by the detained person to examine and testify on behalf of the detained person.

      (3) The court may, if requested, also appoint a professional person as defined in RCW 71.05.020 to seek less restrictive alternative courses of treatment and to testify on behalf of the detained person. In the case of a developmentally disabled person who has been determined to be incompetent pursuant to RCW 10.77.090(4), then the appointed professional person under this section shall be a developmental disabilities professional.

      (4) The court shall also set a date for a full hearing on the petition as provided in RCW 71.05.310.

      Sec. 304 RCW 71.05.320 and 1999 c 13 s 7 are each amended to read as follows:

      (1) If the court or jury finds that grounds set forth in RCW 71.05.280 have been proven and that the best interests of the person or others will not be served by a less restrictive treatment which is an alternative to detention, the court shall remand him or her to the custody of the department or to a facility certified for ninety day treatment by the department for a further period of intensive treatment not to exceed ninety days from the date of judgment: PROVIDED, That

      (a) If the grounds set forth in RCW 71.05.280(3) are the basis of commitment, then the period of treatment may be up to but not exceed one hundred eighty days from the date of judgment in a facility certified for one hundred eighty day treatment by the department.

      (b) If the committed person is developmentally disabled and has been determined incompetent pursuant to RCW 10.77.090(4), and the best interests of the person or others will not be served by a less-restrictive treatment which is an alternative to detention, the court shall remand him or her to the custody of the department or to a facility certified for one hundred eighty-day treatment by the department. When appropriate and subject to available funds, treatment and training of such persons must be provided in a program specifically reserved for the treatment and training of developmentally disabled persons. A person so committed shall receive habilitation services pursuant to an individualized service plan specifically developed to treat the behavior which was the subject of the criminal proceedings. The treatment program shall be administered by developmental disabilities professionals and others trained specifically in the needs of developmentally disabled persons. The department may limit admissions to this specialized program in order to ensure that expenditures for services do not exceed amounts appropriated by the legislature and allocated by the department for such services. The department may establish admission priorities in the event that the number of eligible persons exceeds the limits set by the department. An order for treatment less restrictive than involuntary detention may include conditions, and if such conditions are not adhered to, the designated mental health professional or developmental disabilities professional may order the person apprehended under the terms and conditions of RCW 71.05.340.

      (2) If the court or jury finds that grounds set forth in RCW 71.05.280 have been proven, but finds that treatment less restrictive than detention will be in the best interest of the person or others, then the court shall remand him or her to the custody of the department or to a facility certified for ninety day treatment by the department or to a less restrictive alternative for a further period of less restrictive treatment not to exceed ninety days from the date of judgment: PROVIDED, That if the grounds set forth in RCW 71.05.280(3) are the basis of commitment, then the period of treatment may be up to but not exceed one hundred eighty days from the date of judgment.

      (((2))) (3) The person shall be released from involuntary treatment at the expiration of the period of commitment imposed under subsection (1) or (2) of this section unless the superintendent or professional person in charge of the facility in which he or she is confined, or in the event of a less restrictive alternative, the designated mental health professional or developmental disabilities professional, files a new petition for involuntary treatment on the grounds that the committed person;

      (a) During the current period of court ordered treatment: (i) Has threatened, attempted, or inflicted physical harm upon the person of another, or substantial damage upon the property of another, and (ii) as a result of mental disorder or developmental disability presents a likelihood of serious harm; or

      (b) Was taken into custody as a result of conduct in which he or she attempted or inflicted serious physical harm upon the person of another, and continues to present, as a result of mental disorder or developmental disability a likelihood of serious harm; or

      (c) Is in custody pursuant to RCW 71.05.280(3) and as a result of mental disorder or developmental disability presents a substantial likelihood of repeating similar acts considering the charged criminal behavior, life history, progress in treatment, and the public safety; or

      (d) Continues to be gravely disabled.

      If the conduct required to be proven in (b) and (c) of this subsection was found by a judge or jury in a prior trial under this chapter, it shall not be necessary to reprove that element. Such new petition for involuntary treatment shall be filed and heard in the superior court of the county of the facility which is filing the new petition for involuntary treatment unless good cause is shown for a change of venue. The cost of the proceedings shall be borne by the state.

      The hearing shall be held as provided in RCW 71.05.310, and if the court or jury finds that the grounds for additional confinement as set forth in this subsection are present, the court may order the committed person returned for an additional period of treatment not to exceed one hundred eighty days from the date of judgment. At the end of the one hundred eighty day period of commitment, the committed person shall be released unless a petition for another one hundred eighty day period of continued treatment is filed and heard in the same manner as provided in this subsection. Successive one hundred eighty day commitments are permissible on the same grounds and pursuant to the same procedures as the original one hundred eighty day commitment.

      (((3))) (4) No person committed as provided in this section may be detained unless a valid order of commitment is in effect. No order of commitment can exceed one hundred eighty days in length.

PART IV

MISCELLANEOUS PROVISIONS

      NEW SECTION. Sec. 401 RCW 71.05.550 (Recognition of county financial necessities) and 2005 c 504 s 218 & 1973 1st ex.s. c 142 s 60 are each repealed.

      NEW SECTION. Sec. 402 If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

      NEW SECTION. Sec. 403 Part headings used in this act are not part of the law.

      NEW SECTION. Sec. 404 This act takes effect July 1, 2006, except that sections 101 through 103, 107, 202, and 301 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect immediately."

       Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Hargrove moved that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 6793.

      Senators Hargrove and Stevens spoke in favor of passage of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Hargrove that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 6793.

The motion by Senator Hargrove carried and the Senate concurred in the House amendment(s) to Second Substitute Senate Bill No. 6793 by voice vote.

The President declared the question before the Senate to be the final passage of Second Substitute Senate Bill No. 6793, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 6793, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 46

      Excused: Senators Honeyford, Jacobsen and Oke - 3

SECOND SUBSTITUTE SENATE BILL NO. 6793, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

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

MOTION

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

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

The House has passed SUBSTITUTE SENATE BILL NO. 6874, with the following amendments{s} 6874-S AMH .... H5510.6.

Strike everything after the enacting clause and insert the following:

      "Sec. 1 RCW 82.04.260 and 2005 c 513 s 2 and 2005 c 443 s 4 are each reenacted and amended to read as follows:

      (1) Upon every person engaging within this state in the business of manufacturing:

      (a) Wheat into flour, barley into pearl barley, soybeans into soybean oil, canola into canola oil, canola meal, or canola byproducts, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business shall be equal to the value of the flour, pearl barley, oil, canola meal, or canola byproduct manufactured, multiplied by the rate of 0.138 percent;

      (b) Seafood products which remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured, multiplied by the rate of 0.138 percent;

      (c) Dairy products that as of September 20, 2001, are identified in 21 C.F.R., chapter 1, parts 131, 133, and 135, including byproducts from the manufacturing of the dairy products such as whey and casein; or selling the same to purchasers who transport in the ordinary course of business the goods out of state; as to such persons the tax imposed shall be equal to the value of the products manufactured multiplied by the rate of 0.138 percent. As proof of sale to a person who transports in the ordinary course of business goods out of this state, the seller shall annually provide a statement in a form prescribed by the department and retain the statement as a business record;

      (d) Until July 1, 2009, alcohol fuel, biodiesel fuel, or biodiesel feedstock, as those terms are defined in RCW 82.29A.135; as to such persons the amount of tax with respect to the business shall be equal to the value of alcohol fuel, biodiesel fuel, or biodiesel feedstock manufactured, multiplied by the rate of 0.138 percent; and

      (e) Alcohol fuel or wood biomass fuel, as those terms are defined in RCW 82.29A.135; as to such persons the amount of tax with respect to the business shall be equal to the value of alcohol fuel or wood biomass fuel manufactured, multiplied by the rate of 0.138 percent.

      (2) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business shall be equal to the value of the peas split or processed, multiplied by the rate of 0.138 percent.

      (3) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.484 percent.

      (4) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of 0.138 percent.

      (5) Upon every person engaging within this state in the business of acting as a travel agent or tour operator; as to such persons the amount of the tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

      (6) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities shall be equal to the gross income derived from such activities multiplied by the rate of 0.275 percent.

      (7) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds derived from such activities multiplied by the rate of 0.275 percent. Persons subject to taxation under this subsection shall be exempt from payment of taxes imposed by chapter 82.16 RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.

      (8) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 43.145.010; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business, excluding any fees imposed under chapter 43.200 RCW, multiplied by the rate of 3.3 percent.

      If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state shall be determined in accordance with the methods of apportionment required under RCW 82.04.460.

      (9) Upon every person engaging within this state as an insurance agent, insurance broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such persons, the amount of the tax with respect to such licensed activities shall be equal to the gross income of such business multiplied by the rate of 0.484 percent.

      (10) Upon every person engaging within this state in business as a hospital, as defined in chapter 70.41 RCW, that is operated as a nonprofit corporation or by the state or any of its political subdivisions, as to such persons, the amount of tax with respect to such activities shall be equal to the gross income of the business multiplied by the rate of 0.75 percent through June 30, 1995, and 1.5 percent thereafter. The moneys collected under this subsection shall be deposited in the health services account created under RCW 43.72.900.

      (11)(a) Beginning October 1, 2005, upon every person engaging within this state in the business of manufacturing commercial airplanes, or components of such airplanes, as to such persons the amount of tax with respect to such business shall, in the case of manufacturers, be equal to the value of the product manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of:

      (i) 0.4235 percent from October 1, 2005, through the later of June 30, 2007, or the day preceding the date final assembly of a superefficient airplane begins in Washington state, as determined under RCW 82.32.550; and

      (ii) 0.2904 percent beginning on the later of July 1, 2007, or the date final assembly of a superefficient airplane begins in Washington state, as determined under RCW 82.32.550.

      (b) Beginning October 1, 2005, upon every person engaging within this state in the business of making sales, at retail or wholesale, of commercial airplanes, or components of such airplanes, manufactured by that person, as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the airplanes or components multiplied by the rate of:

      (i) 0.4235 percent from October 1, 2005, through the later of June 30, 2007, or the day preceding the date final assembly of a superefficient airplane begins in Washington state, as determined under RCW 82.32.550; and

      (ii) 0.2904 percent beginning on the later of July 1, 2007, or the date final assembly of a superefficient airplane begins in Washington state, as determined under RCW 82.32.550.

      (c) For the purposes of this subsection (11), "commercial airplane," "component," and "final assembly of a superefficient airplane" have the meanings given in RCW 82.32.550.

      (d) In addition to all other requirements under this title, a person eligible for the tax rate under this subsection (11) must report as required under RCW 82.32.545.

      (e) This subsection (11) does not apply after the earlier of: July 1, 2024; or December 31, 2007, if assembly of a superefficient airplane does not begin by December 31, 2007, as determined under RCW 82.32.550.

      (12)(a) Until July 1, 2024, upon every person engaging within this state in the business of extracting timber or extracting for hire timber; as to such persons the amount of tax with respect to the business shall, in the case of extractors, be equal to the value of products, including byproducts, extracted, or in the case of extractors for hire, be equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2024.

      (b) Until July 1, 2024, upon every person engaging within this state in the business of manufacturing or processing for hire: (i) Timber into timber products or wood products; or (ii) timber products into other timber products or wood products; as to such persons the amount of the tax with respect to the business shall, in the case of manufacturers, be equal to the value of products, including byproducts, manufactured, or in the case of processors for hire, be equal to the gross income of the business, multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2024.

      (c) Until July 1, 2024, upon every person engaging within this state in the business of selling at wholesale: (i) Timber extracted by that person; (ii) timber products manufactured by that person from timber or other timber products; or (iii) wood products manufactured by that person from timber or timber products; as to such persons the amount of the tax with respect to the business shall be equal to the gross proceeds of sales of the timber, timber products, or wood products multiplied by the rate of 0.4235 percent from July 1, 2006, through June 30, 2007, and 0.2904 percent from July 1, 2007, through June 30, 2024.

      (d) For purposes of this subsection, the following definitions apply:

      (i) "Timber products" means logs, wood chips, sawdust, wood waste, and similar products obtained wholly from the processing of timber; pulp; and recycled paper products.

      (ii) "Wood products" means paper and paper products; dimensional lumber; engineered wood products such as particleboard, oriented strand board, medium density fiberboard, and plywood; wood doors; and wood windows.

      NEW SECTION. Sec. 2 A new section is added to chapter 82.04 RCW to be codified between RCW 82.04.260 and 82.04.263 to read as follows:

      (1) In addition to the taxes imposed under RCW 82.04.260(12), a surcharge is imposed on those persons who are subject to any of the taxes imposed under RCW 82.04.260(12). Except as otherwise provided in this section, the surcharge is equal to 0.052 percent added to the rates provided in RCW 82.04.260(12) (a), (b), and (c).

      (2) All receipts from the surcharge imposed under this section shall be deposited into the forest and fish support account created in section 3 of this act.

      (3)(a) The surcharge imposed under this section shall be suspended if:

      (i) Receipts from the surcharge total at least eight million dollars during any fiscal biennium; or

      (ii) The office of financial management certifies to the department that the federal government has appropriated at least two million dollars for participation in forest and fish report-related activities by federally recognized Indian tribes located within the geographical boundaries of the state of Washington for any federal fiscal year.

      (b)(i) The suspension of the surcharge under (a)(i) of this subsection (3) shall take effect on the first day of the calendar month that is at least thirty days after the end of the month during which the department determines that receipts from the surcharge total at least eight million dollars during the fiscal biennium. The surcharge shall be imposed again at the beginning of the following fiscal biennium.

      (ii) The suspension of the surcharge under (a)(ii) of this subsection (3) shall take effect on the later of the first day of October of any federal fiscal year for which the federal government appropriates at least two million dollars for participation in forest and fish report-related activities by federally recognized Indian tribes located within the geographical boundaries of the state of Washington, or the first day of a calendar month that is at least thirty days following the date that the office of financial management makes a certification to the department under subsection (5) of this section. The surcharge shall be imposed again on the first day of the following July.

      (4)(a) If, by October 1st of any federal fiscal year, the office of financial management certifies to the department that the federal government has appropriated funds for participation in forest and fish report-related activities by federally recognized Indian tribes located within the geographical boundaries of the state of Washington but the amount of the appropriation is less than two million dollars, the department shall adjust the surcharge in accordance with this subsection.

      (b) The department shall adjust the surcharge by an amount that the department estimates will cause the amount of funds deposited into the forest and fish support account for the state fiscal year that begins July 1st and that includes the beginning of the federal fiscal year for which the federal appropriation is made, to be reduced by twice the amount of the federal appropriation for participation in forest and fish report-related activities by federally recognized Indian tribes located within the geographical boundaries of the state of Washington.

      (c) Any adjustment in the surcharge shall take effect at the beginning of a calendar month that is at least thirty days after the date that the office of financial management makes the certification under subsection (5) of this section.

      (d) The surcharge shall be imposed again at the rate provided in subsection (1) of this section on the first day of the following state fiscal year unless the surcharge is suspended under subsection (3) of this section or adjusted for that fiscal year under this subsection.

      (e) Adjustments of the amount of the surcharge by the department are final and shall not be used to challenge the validity of the surcharge imposed under this section.(f) The department shall provide timely notice to affected taxpayers of the suspension of the surcharge or an adjustment of the surcharge.

      (5) The office of financial management shall make the certification to the department as to the status of federal appropriations for tribal participation in forest and fish report-related activities.

      NEW SECTION. Sec. 3 A new section is added to chapter 76.09 RCW to read as follows:

      The forest and fish support account is hereby created in the state treasury. Receipts from appropriations, the surcharge imposed under RCW 82.04.260(12), and other sources must be deposited into the account. Expenditures from the account shall be used for activities pursuant to the state's implementation of the forests and fish report as defined in chapter 76.09 RCW and related activities, including, but not limited to, adaptive management, monitoring, and participation grants to tribes, state and local agencies, and not-for-profit public interest organizations. Expenditures from the account may be made only after appropriation by the legislature.

      Sec. 4 RCW 34.05.030 and 2002 c 354 s 225 are each amended to read as follows:

      (1) This chapter shall not apply to:

      (a) The state militia, or

      (b) The board of clemency and pardons, or

      (c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.

      (2) The provisions of RCW 34.05.410 through 34.05.598 shall not apply:

      (a) To adjudicative proceedings of the board of industrial insurance appeals except as provided in RCW 7.68.110 and 51.48.131;

      (b) Except for actions pursuant to chapter 46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;

      (c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;

      (d) To actions of the Washington personnel resources board or the director of personnel; ((or))

      (e) To adjustments by the department of revenue of the amount of the surcharge imposed under section 2 of this act; or

      (f) To the extent they are inconsistent with any provisions of chapter 43.43 RCW.

      (3) Unless a party makes an election for a formal hearing pursuant to RCW 82.03.140 or 82.03.190, RCW 34.05.410 through 34.05.598 do not apply to a review hearing conducted by the board of tax appeals.

      (4) The rule-making provisions of this chapter do not apply to:

      (a) Reimbursement unit values, fee schedules, arithmetic conversion factors, and similar arithmetic factors used to determine payment rates that apply to goods and services purchased under contract for clients eligible under chapter 74.09 RCW; and

      (b) Adjustments by the department of revenue of the amount of the surcharge imposed under section 2 of this act.

      (5) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the Administrative Procedure Act, shall be subject to the entire act.

      Sec. 5 RCW 82.04.230 and 1993 sp.s. c 25 s 101 are each amended to read as follows:

      Upon every person engaging within this state in business as an extractor, except persons taxable as an extractor under any other provision in this chapter; as to such persons the amount of the tax with respect to such business shall be equal to the value of the products, including byproducts, extracted for sale or for commercial or industrial use, multiplied by the rate of 0.484 percent.

      The measure of the tax is the value of the products, including byproducts, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the state.

      Sec. 6 RCW 82.04.280 and 2004 c 24 s 6 are each amended to read as follows:

      Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire, except persons taxable as extractors for hire or processors for hire under another section of this chapter; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.

      As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.

      As used in this section, "storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under RCW 82.04.272 is conducted.

      As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.

      Sec. 7 RCW 82.04.280 and 2003 c 149 s 4 are each amended to read as follows:

      Upon every person engaging within this state in the business of: (1) Printing, and of publishing newspapers, periodicals, or magazines; (2) building, repairing or improving any street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or political subdivision of the state or by the United States and which is used or to be used, primarily for foot or vehicular traffic including mass transportation vehicles of any kind and including any readjustment, reconstruction or relocation of the facilities of any public, private or cooperatively owned utility or railroad in the course of such building, repairing or improving, the cost of which readjustment, reconstruction, or relocation, is the responsibility of the public authority whose street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, tunnel, or trestle is being built, repaired or improved; (3) extracting for hire or processing for hire, except persons taxable as extractors for hire or processors for hire under another section of this chapter; (4) operating a cold storage warehouse or storage warehouse, but not including the rental of cold storage lockers; (5) representing and performing services for fire or casualty insurance companies as an independent resident managing general agent licensed under the provisions of RCW 48.05.310; (6) radio and television broadcasting, excluding network, national and regional advertising computed as a standard deduction based on the national average thereof as annually reported by the Federal Communications Commission, or in lieu thereof by itemization by the individual broadcasting station, and excluding that portion of revenue represented by the out-of-state audience computed as a ratio to the station's total audience as measured by the 100 micro-volt signal strength and delivery by wire, if any; (7) engaging in activities which bring a person within the definition of consumer contained in RCW 82.04.190(6); as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of 0.484 percent.

      As used in this section, "cold storage warehouse" means a storage warehouse used to store fresh and/or frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any combination thereof, at a desired temperature to maintain the quality of the product for orderly marketing.

      As used in this section, "storage warehouse" means a building or structure, or any part thereof, in which goods, wares, or merchandise are received for storage for compensation, except field warehouses, fruit warehouses, fruit packing plants, warehouses licensed under chapter 22.09 RCW, public garages storing automobiles, railroad freight sheds, docks and wharves, and "self-storage" or "mini storage" facilities whereby customers have direct access to individual storage areas by separate entrance. "Storage warehouse" does not include a building or structure, or that part of such building or structure, in which an activity taxable under RCW 82.04.272 is conducted.

      As used in this section, "periodical or magazine" means a printed publication, other than a newspaper, issued regularly at stated intervals at least once every three months, including any supplement or special edition of the publication.

      Sec. 8 RCW 82.04.440 and 2005 c 301 s 3 are each amended to read as follows:

      (1) Every person engaged in activities which are within the purview of the provisions of two or more of sections RCW 82.04.230 to 82.04.298, inclusive, shall be taxable under each paragraph applicable to the activities engaged in.

      (2) Persons taxable under RCW 82.04.2909(2), 82.04.250, 82.04.270, 82.04.294(2), or 82.04.260 (4) ((or (13))), (11), or (12) with respect to selling products in this state, including those persons who are also taxable under section 2 of this act, shall be allowed a credit against those taxes for any (a) manufacturing taxes paid with respect to the manufacturing of products so sold in this state, and/or (b) extracting taxes paid with respect to the extracting of products so sold in this state or ingredients of products so sold in this state. Extracting taxes taken as credit under subsection (3) of this section may also be taken under this subsection, if otherwise allowable under this subsection. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the sale of those products.

      (3) Persons taxable as manufacturers under RCW 82.04.240 or 82.04.260 (1)(b) or (12), including those persons who are also taxable under section 2 of this act, shall be allowed a credit against those taxes for any extracting taxes paid with respect to extracting the ingredients of the products so manufactured in this state. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the manufacturing of those products.

      (4) Persons taxable under RCW 82.04.230, 82.04.240, 82.04.2909(1), 82.04.294(1), or 82.04.260 (1), (2), (4), (((6), or (13))) (11), or (12), including those persons who are also taxable under section 2 of this act, with respect to extracting or manufacturing products in this state shall be allowed a credit against those taxes for any (i) gross receipts taxes paid to another state with respect to the sales of the products so extracted or manufactured in this state, (ii) manufacturing taxes paid with respect to the manufacturing of products using ingredients so extracted in this state, or (iii) manufacturing taxes paid with respect to manufacturing activities completed in another state for products so manufactured in this state. The amount of the credit shall not exceed the tax liability arising under this chapter with respect to the extraction or manufacturing of those products.

      (5) For the purpose of this section:

      (a) "Gross receipts tax" means a tax:

      (i) Which is imposed on or measured by the gross volume of business, in terms of gross receipts or in other terms, and in the determination of which the deductions allowed would not constitute the tax an income tax or value added tax; and

      (ii) Which is also not, pursuant to law or custom, separately stated from the sales price.

      (b) "State" means (i) the state of Washington, (ii) a state of the United States other than Washington, or any political subdivision of such other state, (iii) the District of Columbia, and (iv) any foreign country or political subdivision thereof.

      (c) "Manufacturing tax" means a gross receipts tax imposed on the act or privilege of engaging in business as a manufacturer, and includes (i) the taxes imposed in RCW 82.04.240, 82.04.2909(1), 82.04.260 (1), (2), (4), ((and (13))) (11), and (12), and 82.04.294(1); ((and)) (ii) the tax imposed under section 2 of this act on persons who are engaged in business as a manufacturer; and (iii) similar gross receipts taxes paid to other states.

      (d) "Extracting tax" means a gross receipts tax imposed on the act or privilege of engaging in business as an extractor, and includes (i)the tax imposed on extractors in RCW 82.04.230 and 82.04.260(12); (ii) the tax imposed under section 2 of this act on persons who are engaged in business as an extractor; and (iii) similar gross receipts taxes paid to other states.

      (e) "Business", "manufacturer", "extractor", and other terms used in this section have the meanings given in RCW 82.04.020 through 82.04.212, notwithstanding the use of those terms in the context of describing taxes imposed by other states.

      NEW SECTION. Sec. 9 A new section is added to chapter 82.32 RCW to read as follows:

      (1) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources, the legislature needs information on how a tax incentive is used.

      (2)(a) A person who reports taxes under RCW 82.04.260(12) shall file a complete annual survey with the department. The survey is due by March 31st following any year in which a person reports taxes under RCW 82.04.260(12). The department may extend the due date for timely filing of annual surveys under this section as provided in RCW 82.32.590. The survey shall include the amount of tax reduced under the preferential rate in RCW 82.04.260(12). The survey shall also include the following information for employment positions in Washington:

      (i) The number of total employment positions;

      (ii) Full-time, part-time, and temporary employment positions as a percent of total employment;

      (iii) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and

      (iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.

      (b) The first survey filed under this subsection shall include employment, wage, and benefit information for the twelve-month period immediately before first use of a preferential tax rate under RCW 82.04.260(12).

      (c) As part of the annual survey, the department may request additional information, including the amount of investment in equipment used in the activities taxable under the preferential rate in RCW 82.04.260(12), necessary to measure the results of, or determine eligibility for, the preferential tax rate in RCW 82.04.260(12).

      (d) All information collected under this section, except the amount of the tax reduced under the preferential rate in RCW 82.04.260(12), is deemed taxpayer information under RCW 82.32.330. Information on the amount of tax reduced is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request, except as provided in (e) of this subsection. If the amount of the tax reduced as reported on the survey is different than the amount actually reduced based on the taxpayer's excise tax returns or otherwise allowed by the department, the amount actually reduced may be disclosed.

      (e) Persons for whom the actual amount of the tax reduction is less than ten thousand dollars during the period covered by the survey may request the department to treat the amount of the tax reduction as confidential under RCW 82.32.330.

      (3) If a person fails to submit a complete annual survey under subsection (2) of this section by the due date or any extension under RCW 82.32.590, the department shall declare the amount of taxes reduced under the preferential rate in RCW 82.04.260(12) for the period covered by the survey to be immediately due and payable. The department shall assess interest, but not penalties, on the taxes. Interest shall be assessed at the rate provided for delinquent excise taxes under this chapter, retroactively to the date the reduced taxes were due, and shall accrue until the amount of the reduced taxes is repaid.

      (4) The department shall use the information from the annual survey required under subsection (2) of this section to prepare summary descriptive statistics by category. The department shall report these statistics to the legislature each year by September 1st. The requirement to prepare and report summary descriptive statistics shall cease after September 1, 2025.

      (5) By November 1, 2011, and November 1, 2023, the fiscal committees of the house of representatives and the senate, in consultation with the department, shall report to the legislature on the effectiveness of the preferential tax rate provided in RCW 82.04.260(12). The report shall measure the effect of the preferential tax rate provided in RCW 82.04.260(12) on job retention, net jobs created for Washington residents, company growth, and other factors as the committees select. The report shall include a discussion of principles to apply in evaluating whether the legislature should continue the preferential tax rate provided in RCW 82.04.260(12).

      Sec. 10 RCW 82.32.590 and 2005 c 514 s 1001 are each amended to read as follows:

      (1) If the department finds that the failure of a taxpayer to file an annual survey under RCW 82.04.4452 or section 9 of this act by the due date was the result of circumstances beyond the control of the taxpayer, the department shall extend the time for filing the survey. Such extension shall be for a period of thirty days from the date the department issues its written notification to the taxpayer that it qualifies for an extension under this section. The department may grant additional extensions as it deems proper.

      (2) In making a determination whether the failure of a taxpayer to file an annual survey by the due date was the result of circumstances beyond the control of the taxpayer, the department shall be guided by rules adopted by the department for the waiver or cancellation of penalties when the underpayment or untimely payment of any tax was due to circumstances beyond the control of the taxpayer.

      Sec. 11 RCW 82.32.600 and 2005 c 514 s 1002 are each amended to read as follows:

      (1) Persons required to file surveys under RCW 82.04.4452 or section 9 of this act must electronically file with the department all surveys, returns, and any other forms or information the department requires in an electronic format as provided or approved by the department((, unless the department grants relief under subsection (2) of this section)). As used in this section, "returns" has the same meaning as "return" in RCW 82.32.050.

      (2) ((Upon request, the department may relieve a person of the obligations in subsection (1) of this section if the person's taxes have been reduced a cumulative total of less than one thousand dollars from all of the credits, exemptions, or preferential business and occupation tax rates, for which a person is required to file an annual survey under RCW 82.04.4452, 82.32.535, 82.32.545, 82.32.570, 82.32.560, 82.60.070, or 82.63.020.

      (3) Persons who no longer qualify for relief under subsection (2) of this section will be notified in writing by the department and must comply with subsection (1) of this section by the date provided in the notice.

      (4))) Any survey, return, or any other form or information required to be filed in an electronic format under subsection (1) of this section is not filed until received by the department in an electronic format.

      Sec. 12 2003 c 149 s 12 (uncodified) is amended to read as follows:

      (1)(a) This act ((is)) and section 7, chapter . . ., Laws of 2006 (section 7 of this act) are contingent upon the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.

      (b) For the purposes of this section:

      (i) "Commercial operation" means the same as "commencement of commercial production" as used in RCW 82.08.965.

      (ii) "Semiconductor microchip fabrication" means "manufacturing semiconductor microchips" as defined in RCW 82.04.426.

      (iii) "Significant" means the combined investment of new buildings and new machinery and equipment in the buildings, at the commencement of commercial production, will be at least one billion dollars.

      (2) This act takes effect the first day of the month in which a contract for the construction of a significant semiconductor fabrication facility is signed, as determined by the director of the department of revenue.

      (3)(a) The department of revenue shall provide notice of the effective date of this act to affected taxpayers, the legislature, and others as deemed appropriate by the department.

      (b) If, after making a determination that a contract has been signed and this act is effective, the department discovers that commencement of commercial production did not take place within three years of the date the contract was signed, the department shall make a determination that this act is no longer effective, and all taxes that would have been otherwise due shall be deemed deferred taxes and are immediately assessed and payable from any person reporting tax under RCW 82.04.240(2) or claiming an exemption or credit under section 2 or 5 through 10 of this act. The department is not authorized to make a second determination regarding the effective date of this act.

      NEW SECTION. Sec. 13 (1) Sections 1, 3, 4 through 6, and 8 through 12 of this act take effect July 1, 2006.

      (2) Section 2 of this act takes effect July 1, 2007.

      (3) Section 7 of this act takes effect if the contingency in section 12 of this act occurs.

      NEW SECTION. Sec. 14 Section 6 of this act expires on the date that section 7 of this act takes effect."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Doumit moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6874.

      Senators Doumit and Hargrove spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Doumit that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6874.

MOTION

On motion of Senator Weinstein, Senator Pridemore was excused.

The motion by Senator Doumit carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6874 by voice vote.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6874, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6874, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 40; Nays, 5; Absent, 0; Excused, 4.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Finkbeiner, Franklin, Hargrove, Haugen, Hewitt, Johnson, Kastama, Keiser, Kline, McAuliffe, McCaslin, Morton, Mulliken, Parlette, Pflug, Poulsen, Prentice, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker and Zarelli - 40

      Voting nay: Senators Fairley, Fraser, Kohl-Welles, Thibaudeau and Weinstein - 5

      Excused: Senators Honeyford, Jacobsen, Oke and Pridemore - 4

SUBSTITUTE SENATE BILL NO. 6874, as amended by the House, 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.

MESSAGE FROM THE HOUSE

March 7, 2006

MR. PRESIDENT:

Under suspension of rules SUBSTITUTE SENATE BILL NO. 6257 was returned to second reading for purpose of an amendment: adopted 6257-S AMH HUDG H5502.1, and passed the House as amended by the House.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 18.170.020 and 1991 c 334 s 2 are each amended to read as follows:

      The requirements of this chapter do not apply to:

      (1) A person who is employed exclusively or regularly by one employer and performs the functions of a private security guard solely in connection with the affairs of that employer, if the employer is not a private security company;

      (2) A sworn peace officer while engaged in the performance of the officer's official duties; ((or))

      (3) A sworn peace officer while employed by any person to engage in off-duty employment as a private security guard, but only if the employment is approved by the chief law enforcement officer of the jurisdiction where the employment takes place and the sworn peace officer does not employ, contract with, or broker for profit other persons to assist him or her in performing the duties related to his or her private employer; or

      (4) Guest services or crowd management employees who do not perform the duties of a private security guard."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Delvin moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6257.

      Senator Delvin spoke in favor of the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Delvin that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 6257.

The motion by Senator Delvin carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 6257 by voice vote.

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 6257, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 6257, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, 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 - 48

      Excused: Senator Honeyford - 1

SUBSTITUTE SENATE BILL NO. 6257, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

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

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1672, by House Committee on Commerce & Labor (originally sponsored by Representatives Conway, Hudgins, Green, Cody, Appleton, Morrell, Wood, McCoy, Kenney, Moeller and Chase)

      Requiring hospitals to establish a safe patient handling committee.

      The measure was read the second time.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, Engrossed Substitute House Bill No. 1672 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Kohl-Welles, Deccio and Esser 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. 1672.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1672 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, 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 - 48

      Excused: Senator Honeyford - 1

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1672, 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.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2880, by House Committee on Finance (originally sponsored by Representative McIntire)

      Regarding insurance premiums tax. Revised for 1st Substitute: Clarifying the taxation of insurers.

      The measure was read the second time.

MOTION

      On motion of Senator Prentice, the rules were suspended, Substitute House Bill No. 2880 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Prentice spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Substitute House Bill No. 2880.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2880 and the bill passed the Senate by the following vote: Yeas, 40; Nays, 7; Absent, 1; Excused, 1.

      Voting yea: Senators Benson, Berkey, Brandland, Brown, Carrell, Deccio, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Hewitt, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Swecker, Thibaudeau, Weinstein and Zarelli - 40

      Voting nay: Senators Benton, Delvin, Johnson, McCaslin, Morton, Roach and Stevens - 7

      Absent: Senator Haugen - 1

      Excused: Senator Honeyford - 1

      SUBSTITUTE HOUSE BILL NO. 2880, 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.

PARLIAMENTARY INQUIRY

Senator Benton: “Thank you Mr. President. On our desk we have the first supplement which listed a number of House bills that we’ve been voting on and as we refer to this book, we look and there is no indication in the book of testimony in the House on these bills. It tells you the summary of the bill, it tells you what the votes are in the House; but it doesn't tell you the testimony. The testimony for or against. Normally, when we discuss bills whether they be Senate or House bills, the bill reports include the actual testimony. Now, there is one bill here in this book that does include testimony and that’s the last one listed but none of the others include that description and, I might point out Mr. President, that information is important to members of the Senate in terms of helping us understand the bill, what it does, who is for it and who is against it. Could you ask the Secretary of the Senate to supply us with the testimony of these bills please?”

REPLY BY THE PRESIDENT

President Owen: “Senator Benton, I would suggest that you take that up with your leadership and talk with the Secretary of the Senate yourself. There is no rule that I am aware of that states what should or should not be in that informational document. In other words, the President can not direct the Secretary of the Senate to do that.”

PARLIAMENTARY INQUIRY

Senator Benton: “Mr. President, I was under the impression that there is a rule that the bill reports must be on our desk before we’re asked to vote on legislation. Is that not the case?

REPLY BY THE PRESIDENT

President Owen: “Senator Benton, you were talking about the specifics of testimony for and against.”

PARLIAMENTARY INQUIRY

Senator Benton: “Which is typically part of a bill report, Mr. President.”

REPLY BY THE PRESIDENT

President Owen: “As I suggested you, you should talk to your leadership about that and possibly the Secretary of the Senate.”

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 2583, by House Committee on Appropriations (originally sponsored by Representatives Kenney, Cox, Conway, Hasegawa, Roberts, Appleton, Upthegrove, Morrell, Linville, Hunt, Dickerson and Ormsby)

      Regarding community and technical college part-time academic employee health benefits.

      The measure was read the second time.

MOTION

      Senator Kohl-Welles moved that the following committee striking amendment by the Committee on Labor, Commerce, Research & Development be not adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1 Part-time academic employees at community and technical colleges are currently eligible for full health care benefits beginning the second consecutive quarter of employment, at half-time or more of an academic workload, as defined in RCW 28B.50.489. They are also eligible for health benefits through the summer even if they receive no work at all that quarter, if they have worked half-time or more of an academic workload in each of the three preceding quarters. However, workload fluctuations below these thresholds may result in the loss of employer contributions for health care benefits. It is the intent of the legislature to provide for continuous health care eligibility for part-time academic employees based on averaging workload gained during the two preceding academic years.

      NEW SECTION. Sec. 2 A new section is added to chapter 41.05 RCW to read as follows:

      (1) Part-time academic employees, as defined in RCW 28B.50.489, who have established eligibility as determined from the payroll records of the employing community or technical college districts, for employer contributions for benefits under this chapter and who have worked an average of half-time or more in each of the two preceding academic years, through employment at one or more community or technical college districts, are eligible for continuation of employer contributions for the subsequent summer quarter period including the break between summer and fall quarters.

      (2) Once a part-time academic employee meets the criteria in subsection (1) of this section, the employee shall continue to receive uninterrupted employer contributions for benefits if the employee works at least two of the three quarters of the academic year with an average academic year workload of half-time or more. Benefits provided under this section cease if this criteria is not met. Continuous benefits shall be reinstated once the employee reestablishes eligibility under subsection (1) of this section.

      (3) As used in this section, "academic year" means fall, winter, and spring quarters.

      (4) This section does not modify rules in existence on the effective date of this section adopted under this chapter regarding the initial establishment of eligibility for benefits.

      (5) This section does not preclude individuals from being eligible for benefits under other laws or rules that may apply or for which they may be eligible.

      (6) The employer must notify part-time academic employees of their potential right to benefits under this section.

      (7) To be eligible for maintenance of benefits through averaging, part-time academic employees must notify their employers of their potential eligibility. The state board for community and technical colleges shall report back to the legislature by November 15, 2009, on the feasibility of eliminating the self-reporting requirement for employees.

      NEW SECTION. Sec. 3 A new section is added to chapter 28B.50 RCW to read as follows:

      Health care benefits for part-time academic employees are governed by section 2 of this act.

      NEW SECTION. Sec. 4 This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

       On page 1, line 2 of the title, after "benefits;" strike the remainder of the title and insert "adding a new section to chapter 41.05 RCW; adding a new section to chapter 28B.50 RCW; creating a new section; and declaring an emergency."

      The President declared the question before the Senate to be the motion by Senator Kohl-Welles to not adopt the committee striking amendment by the Committee on Labor, Commerce, Research & Development to Second Substitute House Bill No. 2583.

      The motion by Senator Kohl-Welles carried and the committee striking amendment was not adopted by voice vote.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, Second Substitute House Bill No. 2583 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Pridemore and Parlette spoke in favor of passage of the bill.

MOTION

On motion of Senator Regala, Senator Haugen was excused.

      The President declared the question before the Senate to be the final passage of Second Substitute House Bill No. 2583.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 2583 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Benson, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Hewitt, 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 - 46

      Absent: Senator Benton - 1

      Excused: Senators Haugen and Honeyford - 2

      SECOND SUBSTITUTE HOUSE BILL NO. 2583, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

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

MESSAGE FROM THE HOUSE

March 8, 2006

MR. PRESIDENT:

The House has adopted the report of Conference Committee on ENGROSSED SUBSTITUTE SENATE BILL 6386, and has passed the bill as recommended by the Conference Committee.

      Strike everything after the enacting clause and insert the following:

"PART I

GENERAL GOVERNMENT

      Sec. 101. 2005 c 518 s 101 (uncodified) is amended to read as follows:

FOR THE HOUSE OF REPRESENTATIVES

General Fund--State Appropriation (FY 2006). . (($30,411,000))

$30,244,000

General Fund--State Appropriation (FY 2007). . (($30,900,000))

$30,951,000

Pension Funding Stabilization Account Appropriation$167,000

                           TOTAL APPROPRIATION. . .(($61,311,000))

$61,362,000

      The appropriations in this section are subject to the following conditions and limitations: (((2) $25,000)) $8,000 of the general fund--state appropriation for fiscal year 2006 ((is)) and $17,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the children's and family services task force established in Engrossed Substitute Senate Bill No. 5872 (family/children's department). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      Sec. 102. 2005 c 518 s 102 (uncodified) is amended to read as follows:

FOR THE SENATE

General Fund--State Appropriation (FY 2006). . (($23,253,000))

$23,236,000

General Fund--State Appropriation (FY 2007). . (($25,368,000))

$25,412,000

Pension Funding Stabilization Account Appropriation$125,000

                           TOTAL APPROPRIATION. . .(($48,621,000))

$48,773,000

      The appropriations in this section are subject to the following conditions and limitations: (($25,000)) $8,000 of the general fund--state appropriation for fiscal year 2006 ((is)) and $17,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the children's and family services task force established in Engrossed Substitute Senate Bill No. 5872 (family/children's department). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

      Sec. 103. 2005 c 518 s 103 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW

 COMMITTEE

General Fund--State Appropriation (FY 2006). . . (($2,531,000))

$2,294,000

General Fund--State Appropriation (FY 2007). . . (($1,953,000))

$2,921,000

Pension Funding Stabilization Account Appropriation$9,000

                           TOTAL APPROPRIATION. . . .(($4,484,000))

$5,224,000

      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)(a) $100,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for a study of the basic health plan. Part 1 of the study shall examine the extent to which basic health plan policies and procedures promote or discourage the provision of appropriate, high-quality, cost-effective care to basic health plan enrollees. Issues to be addressed include, but are not limited to, whether (i) enrollees are encouraged to engage in wellness activities and receive preventative services; (ii) evidence-based treatment strategies are identified and promoted; (iii) enrollees are encouraged to use high-quality providers; (iv) enrollees with chronic or other high-cost conditions are identified and provided with appropriate interventions; and (v) innovative health care service delivery methods are encouraged. Part 1 of the study report shall be completed by December 2005.

      (b) Part 2 of the study shall examine the characteristics of individuals enrolled in the basic health plan, and their use of health care services, including, but not limited to, (i) enrollee longevity on the basic health plan; (ii) circumstances that led to basic health plan enrollment; (iii) how enrollees obtained health care prior to basic health plan enrollment; (iv) health care coverage of other household members; (v) service utilization patterns; and (vi) employment status and by whom basic health plan enrollees are employed. Part 2 of the study must be completed by July, 2006.

      (3) (($188,000)) $37,000 of the general fund--state appropriation for fiscal year 2006 ((is)) and $151,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for the public infrastructure study and 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.

      (4) $100,000 of the general fund--state appropriation for fiscal year 2006 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.

      (5) $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.

      (6) 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.

      (7) $100,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the consultant costs related to the study identified in section 505 of Engrossed Second Substitute Senate Bill No. 5763 (mental disorders treatment). If this section is not enacted by June 30, 2005, these amounts shall lapse.

      (8) $86,000 of the general fund--state appropriation for fiscal year ((2006)) 2007 is provided solely to implement the provisions of Engrossed Substitute House Bill No. 1064 (government performance). If Engrossed Substitute House Bill No. 1064 is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

(9) $190,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for purposes of legislative hearings and reporting requirements under Initiative Measure No. 900 (chapter 1, Laws of 2006; performance audits).

      (10) $375,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for the review of tax preferences and to staff the citizen commission for performance measurement of tax preferences required in Engrossed House Bill No. 1069 (audits of tax preferences). If Engrossed House Bill No. 1069 is not enacted by June 30, 2006, the amount provided in this subsection shall lapse.

      (11) $14,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for the cost of conducting a review of the staffing levels for department of health investigators and attorneys involved in the health professions disciplinary process required by Substitute House Bill No. 2974 (health profession discipline). If Substitute House Bill No. 2974 is not enacted by June 30, 2006, the amount provided in this subsection shall lapse.

      (12) $50,000 of the general fund--state appropriation for fiscal year 2007 is for a review of the state's policy on state funding and tax preferences for business incubators. The review shall examine types, costs, and performance outcomes of business incubators, inventory the business incubators in this state, and describe their purposes, state financial and tax support, number of businesses and jobs created, survival rate, criteria for state support, and the policies for reducing or terminating state support. The committee shall consult with the department of revenue and other state, federal, and local agencies involved with business incubators. The committee shall make recommendations on whether the proposals create a public or private benefit and the impact of state-supported business incubators on existing businesses in the state. The review shall be completed and submitted to the appropriate committees of the legislature by June 30, 2007.

      (13) $100,000 of the general fund--state appropriation for fiscal year 2007 is provided solely to conduct a review of how the department of social and health services division of developmental disabilities prioritizes and allocates services.

      Sec. 104. 2005 c 518 s 104 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . .$1,737,000

General Fund--State Appropriation (FY 2007). . . (($1,921,000))

$1,924,000

Pension Funding Stabilization Account Appropriation$10,000

                           TOTAL APPROPRIATION. . . .(($3,658,000))

$3,671,000

      Sec. 105. 2005 c 518 s 106 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . .$7,288,000

General Fund--State Appropriation (FY 2007). . . (($7,248,000))

$7,252,000

Pension Funding Stabilization Account Appropriation$25,000

                           TOTAL APPROPRIATION. . .(($14,536,000))

$14,565,000

      Sec. 106. 2005 c 518 s 107 (uncodified) is amended to read as follows:

FOR THE STATUTE LAW COMMITTEE

General Fund--State Appropriation (FY 2006). . . . . .$4,112,000

General Fund--State Appropriation (FY 2007). . . (($4,398,000))

$4,401,000

Pension Funding Stabilization Account Appropriation$20,000

                           TOTAL APPROPRIATION. . . .(($8,510,000))

$8,533,000

      Sec. 107. 2005 c 518 s 105 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE STATE ACTUARY

Department of Retirement Systems Expense Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . (($3,013,000))

$3,022,000

      The appropriation in this section is subject to the following conditions and limitations: By December 1, 2005, the state actuary shall conduct an actuarial analysis that quantifies, to the greatest extent permissible from available experience data, the fiscal impact of the retire-rehire program for plan 1 of the public employees' retirement system and the teachers' retirement system enacted by chapter 10, Laws of 2001 and chapter 412, Laws of 2003. In addition to the actuarial analysis, the state actuary shall present a range of legislative alternatives to the plan 1 retire-rehire program, including an actuarial analysis of the fiscal impact of proposals to increase the maximum retirement allowance beyond sixty percent of average final compensation. The analysis shall be submitted to the select committee on pension policy, the senate committee on ways and means, and the house of representatives committee on appropriations.

      Sec. 108. 2005 c 518 s 109 (uncodified) is amended to read as follows:

FOR THE SUPREME COURT

General Fund--State Appropriation (FY 2006). . . (($6,085,000))

$6,095,000

General Fund--State Appropriation (FY 2007). . . (($6,346,000))

$6,397,000

Pension Funding Stabilization Account Appropriation$37,000

                           TOTAL APPROPRIATION. . .(($12,431,000))

$12,529,000

      Sec. 109. 2005 c 518 s 112 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund--State Appropriation (FY 2006). . . . . .$1,055,000

General Fund--State Appropriation (FY 2007). . . (($1,107,000))

$1,109,000

Pension Funding Stabilization Account Appropriation$5,000

                           TOTAL APPROPRIATION. . . .(($2,162,000))

$2,169,000

      Sec. 110. 2005 c 518 s 110 (uncodified) is amended to read as follows:

FOR THE LAW LIBRARY

General Fund--State Appropriation (FY 2006). . . (($2,011,000))

$2,013,000

General Fund--State Appropriation (FY 2007). . . (($2,020,000))

$2,024,000

Pension Funding Stabilization Account Appropriation$5,000

                           TOTAL APPROPRIATION. . . .(($4,031,000))

$4,042,000

      Sec. 111. 2005 c 518 s 111 (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund--State Appropriation (FY 2006). . (($13,866,000))

$13,916,000

General Fund--State Appropriation (FY 2007). . (($14,358,000))

$14,393,000

Pension Funding Stabilization Account Appropriation$80,000

                           TOTAL APPROPRIATION. . .(($28,224,000))

$28,389,000

      Sec. 112. 2005 c 518 s 113 (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund--State Appropriation (FY 2006). . (($19,657,000))

$19,834,000

General Fund--State Appropriation (FY 2007). . (($20,081,000))

$21,298,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($50,106,000))

$50,277,000

Judicial Information Systems Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($25,641,000))

$26,051,000Pension Funding Stabilization Account Appropriation$96,000

                           TOTAL APPROPRIATION. .(($115,485,000))

$117,556,000

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

      (1) $900,000 of the general fund--state appropriation for fiscal year 2006 and $900,000 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, after consulting with the association of juvenile court administrators and the association of court-appointed special advocate/guardian ad litem programs, shall distribute the funds to volunteer court-appointed special advocate/guardian ad litem programs. The distribution of funding shall be based on the number of children who need volunteer court-appointed special advocate representation and shall be equally accessible to all volunteer court-appointed special advocate/guardian ad litem programs. The administrator for the courts shall not retain more than six percent of total funding to cover administrative or any other agency costs.

      (2) $3,000,000 of the public safety and education account appropriation is provided solely for school district petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. The office of the administrator for the courts shall develop an interagency agreement with the office of the superintendent of public instruction to allocate the funding provided in this subsection. Allocation of this money to school districts shall be based on the number of petitions filed.

      (3) $13,224,000 of the public safety and education account appropriation is provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The office of the administrator for the courts shall not retain any portion of these funds to cover administrative costs. The office of the administrator for the courts, in conjunction with the juvenile court administrators, shall develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per-petition processing costs nor shall it penalize counties with lower than average per-petition processing costs.

      (4) The distributions made under subsection (3) of this section and distributions from the county criminal justice assistance account made pursuant to section 801 of this act constitute appropriate reimbursement for costs for any new programs or increased level of service for purposes of RCW 43.135.060.

      (5) Each fiscal year during the 2005-07 fiscal biennium, each county shall report the number of petitions processed and the total actual costs of processing truancy, children in need of services, and at-risk youth petitions. Counties shall submit the reports to the administrator for the courts no later than 45 days after the end of the fiscal year. The administrator for the courts shall electronically transmit this information to the chairs and ranking minority members of the house of representatives appropriations committee and the senate ways and means committee no later than 60 days after a fiscal year ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

      (6) $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.

      (7) $75,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the implementation of Substitute House Bill No. 1854 (driving privilege) and Engrossed Second Substitute Senate Bill No. 5454 (court operations). If neither bill is enacted by June 30, 2005, the amount in this subsection shall lapse.

(8) $569,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for the juror pay pilot and research project.

      Sec. 113. 2005 c 518 s 114 (uncodified) is amended to read as follows:

FOR THE OFFICE OF PUBLIC DEFENSE

General Fund--State Appropriation (FY 2006). . . (($1,490,000))

$1,565,000

General Fund--State Appropriation (FY 2007). . . (($2,078,000))

$9,928,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($13,175,000))

$13,181,000

                           TOTAL APPROPRIATION. . .(($16,743,000))

$24,674,000

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

      (1) $800,000 of the general fund--state appropriation for fiscal year 2006 and (($1,000,000)) $4,500,000 of the general fund--state appropriation for fiscal year 2007 are provided solely to expand the parent representation project in dependency and termination cases.

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

      (3) Within amounts appropriated in this section and in Engrossed Second Substitute Senate Bill No. 5454, the office may, at its discretion, implement Second Substitute House Bill No. 1542 (indigent defense services).

      Sec. 114. 2005 c 518 s 115 (uncodified) is amended to read as follows:

FOR THE OFFICE OF CIVIL LEGAL AID

General Fund--State Appropriation (FY 2006). . . (($2,883,000))

$3,083,000

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

$3,232,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,705,000

Violence Reduction and Drug Enforcement Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . . .$2,987,000

                           TOTAL APPROPRIATION. . .(($13,407,000))

$14,007,000

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

      (1) $2,783,000 of the general fund--state appropriation for fiscal year 2006, $2,732,000 of the general fund--state appropriation for fiscal year 2007, $4,705,000 of the public safety and education account--state appropriation, and $2,987,000 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) $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.))

      Sec. 115. 2005 c 518 s 116 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund--State Appropriation (FY 2006). . . . . .$5,600,000

General Fund--State Appropriation (FY 2007). . . (($5,279,000))

$5,583,000

General Fund--Federal Appropriation. . . . . . . . . . (($1,364,000))

$1,366,000

Oil Spill Prevention Account Appropriation. . . . . . . . . $508,000

Water Quality Account--State Appropriation. . . . (($4,184,000))

$4,193,000

Salmon Recovery Account Appropriation

. . . . . . . . . . .$160,000Economic Development Strategic Reserve

      Account Appropriation

. . . . . . . . . . . $4,000,000Pension Funding Stabilization Account Appropriation$24,000

                           TOTAL APPROPRIATION. . .(($16,935,000))

$21,434,000

      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(7) of this act, the Puget Sound water quality action team shall make recommendations and report on monitoring activities related to salmon recovery.

      (4) $250,000 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 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 as a grant to the Hood Canal Coordinating Council 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.))

      (7) $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 a review of ocean policy issues in cooperation with individuals with appropriate expertise and the departments of ecology, fish and wildlife, and natural resources. By December 31, 2005, the governor's office shall identify the recommendations of the U.S. commission on ocean policy appropriate for immediate implementation. By December 31, 2006, the governor's office shall provide a report: (a) Summarizing the condition of the state's ocean resources and their contribution to the state's character, quality of life, and economic viability; (b) recommending improvements in coordination among state agencies and other jurisdictions; (c) recommending measures to protect and manage ocean resources; (d) recommending measures to finance ocean protection, management, and development programs; and (e) recommending legislation regarding ocean resources or policy.

      (8) $508,000 of the oil spill prevention account appropriation is provided solely for the oil spill advisory council established in Engrossed Substitute Senate Bill No. 5432 (oil spill oversight council). If the bill is not enacted by June 30, 2005, the amount provided in this subsection shall lapse.

(9) The economic development strategic reserve account appropriation is provided solely for the purpose of implementing chapter 427, Laws of 2005 (2SSB 5370).

      (10)(a) $297,000 of the general fund--state appropriation for fiscal year 2007 is provided solely for the Puget Sound action team in coordination with the Hood Canal coordinating council to contract for the initial phase of a two-part study in the Hood Canal to: (i) Improve data and knowledge of the loading of nitrogen from on-site sewage systems to ground water; (ii) determine the local scale efficiency of nitrogen removal from on-site sewage systems; and (iii) improve data and knowledge of the loading of nitrogen from all ground water sources to Hood Canal.

      (b) The study shall: (i) Locate representative on-site sewage systems distributed within the Hood Canal drainage basin for use in the study; (ii) collect water levels and samples from the areas around a number of on-site sewage systems under a variety of water table, soil, and geologic conditions; (iii) test samples for nitrogen, phosphorous, carbon, and other pertinent chemistry; (iv) consider water levels and samples from monitoring wells both up gradient and down gradient from on-site sewage systems; (v) collect data from drain fields to test on-site sewage system efficiency; and (vi) collect water level, nutrient, and other chemical data from a number of existing wells in the watershed to test how much nitrogen is reaching Hood Canal. The study shall be coordinated with other studies being conducted in Hood Canal through the Hood Canal dissolved oxygen program. The Puget Sound action team and the Hood Canal coordinating council shall report their finding and recommendations to the appropriate committees of the legislature by December 1, 2007.

      Sec. 116. 2005 c 518 s 117 (uncodified) is amended to read as follows:

FOR THE LIEUTENANT GOVERNOR

General Fund--State Appropriation (FY 2006). . . . . . . $752,000

General Fund--State Appropriation (FY 2007). . . . .(($766,000))

$768,000

((General Fund--Local Appropriation. . . . . . . . . . . . . . . $1,000))

Pension Funding Stabilization Account Appropriation. . .$3,000

                           TOTAL APPROPRIATION. . . .(($1,519,000))

$1,523,000

      Sec. 117. 2005 c 518 s 118 (uncodified) is amended to read as follows:

FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund--State Appropriation (FY 2006). . . (($1,989,000))

$1,999,000

General Fund--State Appropriation (FY 2007). . . (($2,009,000))

$2,069,000Pension Funding Stabilization Account Appropriation$10,000

                           TOTAL APPROPRIATION. . . .(($3,998,000))

$4,078,000

The appropriations in this section are subject to the following conditions and limitations: $10,000 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 Third Substitute House Bill No. 1226 (campaign contribution limits). If Third Substitute House Bill No. 1226 is not enacted by June 30, 2006, the amounts provided in this subsection shall lapse.

      Sec. 118. 2005 c 518 s 119 (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund--State Appropriation (FY 2006). . (($19,102,000))

$21,593,000

General Fund--State Appropriation (FY 2007). . (($17,323,000))

$18,473,000

General Fund--Federal Appropriation. . . . . . . . . . (($7,092,000))

$7,099,000

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

$207,000

Archives and Records Management Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($8,127,000))

$8,210,000

Department of Personnel Services Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . (($719,000))

$721,000

Local Government Archives Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($12,138,000))

$12,398,000

Election Account--Federal Appropriation. . . . . . (($47,009,000))

$53,010,000Pension Funding Stabilization Account Appropriation$66,000

                           TOTAL APPROPRIATION. .(($111,635,000))

$121,777,000

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

      (1) (($2,296,000)) $3,472,000 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)) $2,441,000 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)) $2,382,772 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.

(6) $110,000 of the general fund--state appropriation for fiscal year 2006 is provided solely for the purposes of settling all claims in Washington State Democratic Party, et al. v. Sam S. Reed, et al., United States District Court Western District of Washington at Tacoma Cause No. C00-5419FDB and related appeal. The expenditure of this appropriation is contingent on the release of all claims in the case and related appeal, and total settlement costs shall not exceed the appropriation in this subsection.

      (7) $131,000 of the general fund--state appropriation for fiscal year 2006 and $196,000 of the general fund--state appropriation for fiscal year 2007 are provided solely for expenditures related to the Farrakhan v. Locke litigation.

      Sec. 119. 2005 c 518 s 120 (uncodified) is amended to read as follows:

FOR THE GOVERNOR'S OFFICE OF INDIAN AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . $277,000

General Fund--State Appropriation (FY 2007). . . . .(($289,000))

$292,000Pension Funding Stabilization Account--State

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

                           TOTAL APPROPRIATION. . . . . (($566,000))

$570,000

      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.

      Sec. 120. 2005 c 518 s 121 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON ASIAN-PACIFIC-AMERICAN AFFAIRS

General Fund--State Appropriation (FY 2006). . . . . . . $235,000

General Fund--State Appropriation (FY 2007). . . . .(($238,000))

$264,000Pension Funding Stabilization Account Appropriation$1,000

                           TOTAL APPROPRIATION. . . . . (($473,000))

$500,000

      Sec. 121. 2005 c 518 s 122 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER

State Treasurer's Service Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($14,124,000))

$14,174,000

      Sec. 122. 2005 c 518 s 123 (uncodified) is amended to read as follows:

FOR THE STATE AUDITOR

General Fund--State Appropriation (FY 2006). . . (($1,884,000))

$1,258,000

General Fund--State Appropriation (FY 2007). . . (($2,441,000))

$351,000

State Auditing Services Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($13,952,000))

$14,011,000

Pension Funding Stabilization Account Appropriation. . .$4,000

                           TOTAL APPROPRIATION. . .(($18,277,000))

$15,624,000

      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) (($1,130,000)) $100,000 of the general fund--state appropriation for fiscal year 2006((, $1,695,000 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)) is 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.

      Sec. 123. 2005 c 518 s 124 (uncodified) is amended to read as follows:

FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund--State Appropriation (FY 2006). . . . . . . $137,000

General Fund--State Appropriation (FY 2007). . . . .(($206,000))

$207,000

                           TOTAL APPROPRIATION. . . . . (($343,000))

$344,000

      Sec. 124. 2005 c 518 s 125 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund--State Appropriation (FY 2006). . . (($5,223,000))

$5,724,000

General Fund--State Appropriation (FY 2007). . . (($5,156,000))

$5,844,000

General Fund--Federal Appropriation. . . . . . . . . . (($2,973,000))

$3,428,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($2,303,000))

$2,307,000

New Motor Vehicle Arbitration Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($1,313,000))

$1,315,000

Legal Services Revolving Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . .(($185,970,000))

$191,627,000

Tobacco Prevention and Control Account--State

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

Pension Funding Stabilization Account Appropriation. . $21,000

                           TOTAL APPROPRIATION. .(($203,208,000))

$210,536,000

      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.

      Sec. 125. 2005 c 518 s 126 (uncodified) is amended to read as follows:

FOR THE CASELOAD FORECAST COUNCIL

General Fund--State Appropriation (FY 2006). . . . . . . $719,000

General Fund--State Appropriation (FY 2007). . . . .(($714,000))

$716,000Pension Funding Stabilization Account Appropriation$4,000

                           TOTAL APPROPRIATION. . . .(($1,433,000))

$1,439,000

      Sec. 126. 2005 c 518 s 127 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMUNITY, TRADE, AND ECONOMIC DEVELOPMENT

General Fund--State Appropriation (FY 2006). . (($66,123,000))

$67,758,000

General Fund--State Appropriation (FY 2007). . (($67,151,000))

$60,229,000

General Fund--Federal Appropriation. . . . . . . . (($246,886,000))

$258,085,000

General Fund--Private/Local Appropriation. . . . (($12,229,000))

$12,422,000

Public Safety and Education Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($5,439,000))

$5,443,000

Public Works Assistance Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($3,395,000))

$3,430,000

Tourism Development and Promotion Account

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

Drinking Water Assistance Administrative Account--

      State Appropriation. . . . . . . . . . . . . . . . . . . . . . .(($213,000))

$345,000

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

Building Code Council Account--State Appropriation

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (($1,130,000))

$1,133,000

Administrative Contingency Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($1,808,000))

$1,809,000

Low-Income Weatherization Assistance Account--State

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

Violence Reduction and Drug Enforcement Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . .(($7,231,000))

$7,234,000

Manufactured Home Installation Training Account--State

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

Community and Economic Development Fee Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,570,000

Washington Housing Trust Account--State

      Appropriation. . . . . . . . . . . . . . . . . . . . . . . . .(($19,009,000))

$33,536,000

Homeless Families Services Account--State

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

Public Facility Construction Loan Revolving

      Account--State Appropriation. . . . . . . . . . . . . . .(($614,000))

$616,000Pension Funding Stabilization Account Appropriation$87,000

                           TOTAL APPROPRIATION. .(($442,006,000))

$462,905,000

      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 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) $3,600,000 of the general fund--federal appropriation is provided solely for the justice assistance grant program, to be distributed in state fiscal year 2007 as follows:

      (a) $2,013,000 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;