SIXTIETH LEGISLATURE - REGULAR SESSION
SIXTY EIGHTH DAY
House Chamber, Olympia, Friday, March 16, 2007
The House was called to order at 10:00 a.m. by the Speaker (Representative Lovick presiding). The Clerk called the roll and a quorum was present.
The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Alexandra Webster and Matt Luedtke. The Speaker (Representative Lovick presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Bishop Carlos Sevilla, Diocese of Yakima.
Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.
RESOLUTION
HOUSE RESOLUTION NO. 2007-4645, by Representatives Dickerson, Sommers, Dunshee, Darneille, Haigh, Ormsby, Takko, Roberts, Conway, Hunt and Flannigan
WHEREAS, Citizens of character, intelligence, courage, initiative, and compassion have made significant contributions to the growth and development of the State of Washington; and
WHEREAS, Walt C. Crowley is representative of these qualities and contributions; and
WHEREAS, Walt C. Crowley, of Seattle, is cofounder, President, and Executive Director of HistoryLink and HistoryLink.org, the free online encyclopedia of Washington state history and the nation's first encyclopedia of community history created expressly for the Internet; and
WHEREAS, HistoryLink now serves more than two million annual visitors, one-third of whom are K-12 teachers and students, and has earned a National Certificate of Commendation from the American Association for State and Local History, the State Historic Preservation Officer's award, and numerous other national, regional, and local honors; and
WHEREAS, Walt C. Crowley is the author of more than fifteen books on local and regional history and earned the Pacific Northwest Historians Guild 2007 Northwest History Award for HistoryLink and his personal scholarship; and
WHEREAS, Walt C. Crowley was named "Citizen of the Year 2007" by the Municipal League of King County; and
WHEREAS, Walt C. Crowley served the State of Washington in an exemplary manner as a major contributor to the community and the political life of the Northwest Region; and
WHEREAS, Now is an appropriate time to recognize the contributions of Walt C. Crowley and the trustees and staff of HistoryLink in Washington State;
NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize and honor Walt C. Crowley's and HistoryLink's contributions to Washington State; and
BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to Walt C. Crowley and to HistoryLink.
HOUSE RESOLUTION NO. 4645 was adopted.
Representative Strow: "Mr. Speaker, yesterday in the early afternoon, my friend and former boss – I think we all know that when you say friend and boss in the same sentence it is not always the case – Jack Metcalf, former Congressman, former State Senator and former State Representative passed away.
I would like to share just a moment about why I am here and how he was related to that and then a little bit about his career. I am here because as a student at The Evergreen State College in 1990 I was selected for the State Senate Intern Program. At least according to the Senate Intern Coordinator at the time I was the first Evergreen student who checked the Republican only box for whom they wanted to work for. Apparently none of the Senators particularly wanted an Evergreen student at that time except for my home district Senator and it was their policy at the time not to place people with their home district Senators in case they had to get rid of them. Jack Metcalf wanted an Evergreen student and that was how I first got to know him.
A public school teacher for thirty years, a state Representative for four years, a state Senator for twenty years and by the way all three of those were in contiguous districts, the 38th District and the only member of his party since the Great Depression to serve in the House from that district. The 21st District, he was a state Senator for eight years and for twelve years, he was state Senator from the 10th District – the district I represent today. He served in Congress from 1994 until 2000. He was a champion of fiscal conservatism, environmental stewardship and conservation but probably more than anything he was known as 'Gentleman Jack' for his decency and civility in the way he treated people inside the legislative process. And that is something I have always tried very hard to keep to that lesson. I watched him when he was in Congress in the House Banking Committee, rise and go sit with his two best friends on that committee, Bernie Sanders and Maxine Waters and cook up amendments to banking bills that made all the majority party nervous. I watched him author legislation with Dennis Kucinich – one of his great friends in Congress which again made many people very nervous. The ability to poke institutions and power and yet maintain his conservative principles at the time were things that I thought were great because at times everyone needs to be held accountable to understand that we are merely equals in this institution in the way we represent our constituents. I also found him to be forward looking – many said he was "the nineteenth century politician" and yet the issues he championed often did not come to fruition until ten or fifteen years later.
So with that I would like to say thank you for listening today about my dear friend. I will close with one last story because in someway it captures the humanity of the man more than any other. In his first or second year as a public school teacher in the Everett School District, Jack and Norma did not have quite enough money to make ends meet and Jack said he was going to take on a second job selling pots and pans door to door. After two days, Norma made him quit. Well, that's what he said. The reason was he had given away three sets to needy families but had sold absolutely none. That was who Jack was – he would proverbially give you the shirt off his back, he was that decent a human being. I hope we remember him for his humanity. I hope we remember him for all the issues he championed and with that thank you."
Representative Sells: "Thank you, Mr. Speaker. I do not think I can do as nice a job as the gentleman from the 10th District has done but I can tell you after thirty years of working with Congressman Metcalf – my politics and his politics were obviously very different – I always felt treated with civility and respect by the Congressman. In fact, Congressman Metcalf or whether he was a state Senator or Representative, always went out of his way when I was working the labor movement to call and say 'I would like to come talk to you' even though he might have voted against you the day before or been against you on a particular issue, he went out of his way to come and talk. He was unafraid to do that kind of thing. During election time, he would call up and say 'Mike, when are you guys having interviews down at the Labor Movement; I want to come and talk to you.' Jack never sought out just the comfort of those that might have been like-minded. He challenged himself and he challenged those around him on a variety of issues and it made him a true maverick in so many different ways. I don't know how many of you know he pushed an initiative to cap interest rates in this State much to the chagrin I think of probably of his own party caucus at that time. Jack stood up in Congress for unions' right for payroll deductions. Jack practiced a form of populism we know simply as 'looking out for the little guy.' He once said to me 'I'm concerned about the amount of power of corporations in this country and we need something to balance that out.' It was Jack's prime directive to stand up for the little person.
I would like to leave you with just one little note. I keep thinking of a line from a movie – I don't often use movies as anecdotes – 1776 in which Dickinson had been arguing long and hard against John Adams around the issue of independence. Dickinson being the conservative, Adams being the radical in this case. In the end, he walks out of the Continental Congress because he wouldn't sign the Declaration but he made extremely powerful arguments. Adams immediately stands up and says 'gentlemen of the Continental Congress, I give you John Dickinson' and everyone stood up and said 'here, here'.
I don't know if I can get the 'here, here' but ladies and gentlemen of this House, I give you Jack Metcalf."
The Chamber: "Here, here."
Representative Pearson: "Mr. Speaker, for six years I had the privilege and honor – I was very blessed – to work for Congressman Jack Metcalf. In my position, I was Jack's Special Assistant which meant I worked the District for Jack. When he came home, I'd pick him up at the airport and we would go to meetings all throughout the State. I will never forget a lot of the times Jack shared with me his vision and he shared with me stories that happened here in the Capitol – a lot of institutional memories. But what I was most impressed with about Jack and especially watching him with people, was how civil Jack was. Being a congressman, never went to Jack's head, he just liked being called Jack. He was a common man but he was much more. He was a great man. He had a very tender heart towards people. He was a man who grew up during the Great Depression and he told me a story about one time his father, at the dinner table, pulled up a nickel and said 'this is our last nickel, kids.' This was in the depths of the depression. But what Jack learned from that was that the family pulled together through such a difficult time.
Jack was a school teacher for many years. He served in the Everett School District for about thirty one years. I used to get a kick out of town hall meetings when these people would come up to Jack – people who looked really a lot older than Jack – and say 'Mr. Metcalf, remember me – I was in your Junior High class at North Middle School.' We would take off and Jack would say to me 'Boy, I feel old looking at those folks.'
He had a true heart for the people. I've never heard him say anything nasty about anyone. So all I can say is that people like Jack are last of a generation of great people who served here in the Capitol, very civil, great statesman and I know someday I'll be seeing him.
So God bless you, Jack."
Representative B. Sullivan: "Mr. Speaker, of course I go actually way back with the Metcalf family. The family had settled in Mukilteo in the early sixties. I was raised and went to school with Bev Metcalf, Jack's daughter. Norma, Jack's wife was the school secretary in my junior high school. I was one of the geeks who were always going to the Principal's Office to talk about volunteering or doing some recycling program. Norma and I chatted every day so I've known Jack Metcalf and the family all my life. Jack had actually been in and out of my life for many years, of course, when I was very young in grade school, junior and high schools.
When I went to work for Senator Vognild in the early eighties I sat in the gallery and watched Jack Metcalf give one of the best floor speeches opposed to gambling. It happened to be the Washington State Lottery. He spoke very eloquently about his beliefs and family, friends and his belief in God and the evils of gambling. It was quite a moving speech. Of course, he lost that vote unfortunately for him. Nonetheless, a great representative.
Then I was elected the mayor of Mukilteo. We had many federal issues related to Mukilteo – federal tank farm properties, some of you are familiar with – and I couldn't get my city council to give me an airline ticket so I paid my own way to Washington DC and spent many days in Jack Metcalf's office where I received an incredible amount of help in moving the Federal Government. It was a service plus organization – that the best I can say. Jack hired the best people. That where I formed a very strong bond and relationship with the gentleman from the 10th and the gentleman from the 39th who I have known for many years. I can honestly say Jack was a great man who served his community well. In Congress, Jack voted his conscience and he voted his district, and then maybe he voted his party. But a great man. A great loss to not only our State but to our nation
Thank you, Mr. Speaker for allowing me to speak."
Mr. Speaker (Representative Lovick presiding): "The Speaker would like to thank the members for their kind remarks."
There being no objection, the House advanced to the sixth order of business.
SECOND READING
SUBSTITUTE SENATE BILL NO. 5089, by Senate Committee on Ways & Means (originally sponsored by Senators Regala, Zarelli, Eide, Shin, Franklin, Keiser, Rockefeller, Weinstein, Pridemore, Marr, Hobbs, Rasmussen, Murray, Prentice, Fairley, Fraser, Spanel, Berkey, Tom, Kohl-Welles, McAuliffe and Kline; by request of Governor Gregoire)
Conforming Washington's tax structure to the streamlined sales and use tax agreement.
The bill was read the second time.
Representative Orcutt moved the adoption of amendment (442):
Beginning on page 64, line 25, strike all of sections 1103 and 1104
Correct any internal references accordingly and correct the title.
Representative Orcutt spoke in favor of the adoption of the amendment.
Representative Hunter spoke against the adoption of the amendment.
The amendment was not adopted.
Representative Orcutt moved the adoption of amendment (443):
On page 75, after line 38, insert the following:
"Sec. 1303. RCW 82.08.020 and 2006 c 1 s 3 are each amended to read as follows:
(1)(a) There is levied and there shall be collected a tax on each retail sale in this state equal to ((six and five-tenths percent of)) the selling price multiplied by the rate determined under this subsection.
(b) The rate of tax under this subsection for taxable events occurring during a calendar year is six and five-tenths percent multiplied by a fraction. The numerator of the fraction is the baseline sales and use tax collections for the previous fiscal year. The denominator of the fraction is all sales and use tax collections for the previous fiscal year. The rate shall be rounded down to the nearest tenth of a percent. The department shall calculate the rate in effect for each calendar year by the preceding October 1.
(c) The following definitions apply for the purposes of this subsection.
(i) "Baseline sales and use tax collections" means all sales and use tax collections, less the amount of sales and use tax collections attributable to remote sellers.
(ii) "Sales and use tax collections" means revenues, penalties, and interest actually collected for credit to the fiscal year under this subsection (1) and RCW 82.12.020.
(iii) "Previous fiscal year" means the year ending on the June 30 preceding the date the rate is calculated.
(2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
(3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
(4) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.
(5) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section shall be dedicated to funding comprehensive performance audits required under RCW 43.09.470. The revenue identified in this subsection shall be deposited in the performance audits of government account created in RCW 43.09.475.
(6) The taxes imposed under this chapter shall apply to successive retail sales of the same property.
(7) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.
NEW SECTION. Sec. 1304. A new section is added to chapter 82.14 RCW to read as follows:
Any local jurisdiction that imposes a tax under this chapter or under RCW 81.104.170 must adjust the tax rate on January 1 of each year by multiplying the rate that is otherwise imposed by the jurisdiction but for the limitations of this section by the fraction described in RCW 82.08.020(1)(b). The department must publish the fraction on its web site as of the preceding October 1. The local jurisdiction must round down the adjusted rate to the nearest tenth of a percent."
On page 90, line 13, after "1302" insert "through 1304"
Correct the title.
Representative Orcutt spoke in favor of the adoption of the amendment.
Representative McIntire spoke against the adoption of the amendment.
The amendment was not adopted.
Representative Orcutt moved the adoption of amendment (444):
On page 90, after line 9, strike all of sections 1704 through 1707 and insert the following:
"NEW SECTION. Sec. 1704. Sections 101 through 105, 201, 202, 401, 501 through 503, 601, 701 through 703, 801, 802, 901 through 905, 1001, 1002, 1004, 1005, 1007 through 1013, 1015 through 1017, 1019 through 1024, 1101 through 1104, 1201 through 1203, 1302, 1401 through 1403, 1501, 1502, and 1601 of this act take effect when Oregon ceases to impose income tax on Washington residents.
NEW SECTION. Sec. 1705. (1) Section 302 of this act takes effect on the date that is the latter of the dates described in (a) and (b) of this subsection.
(a) Oregon ceases to impose income tax on Washington residents; and
(b)(i) The United States congress grants individual states the authority to impose sales and use tax collection duties on remote sellers; or
(ii) It is determined by a court of competent jurisdiction, in a judgment not subject to review, that a state can impose sales and use tax collection duties on remote sellers.
(2) The department of revenue shall provide notice to affected taxpayers, the legislature, and others as deemed appropriate by the department, if either of the contingencies in this section occurs.
NEW SECTION. Sec. 1706. Section 1301 of this act expires July 1, 2008.
NEW SECTION. Sec. 1707. Sections 1003, 1006, 1014, and 1018 of this act take effect the later of: The date chapter 67, Laws of 2002, becomes null and void; or July 1, 2008; or the date Oregon ceases to impose income tax on Washington residents."
Correct the title.
Representative Orcutt spoke in favor of the adoption of the amendment.
Representative McIntire spoke against the adoption of the amendment.
The amendment was not adopted.
Representative Orcutt moved the adoption of amendment (445):
On page 90, after line 9, strike all of sections 1704 through 1707 and insert the following:
"NEW SECTION. Sec. 1704. Sections 101 through 105, 201, 202, 401, 501 through 503, 601, 701 through 703, 801, 802, 901 through 905, 1001, 1002, 1004, 1005, 1007 through 1013, 1015 through 1017, 1019 through 1024, 1101 through 1104, 1201 through 1203, 1302, 1401 through 1403, 1501, 1502, and 1601 of this act take effect when Oregon, Idaho, and California become member states of the streamlined sales and use tax agreement.
NEW SECTION. Sec. 1705. (1) Section 302 of this act takes effect on the date that is the latter of the dates described in (a) and (b) of this subsection.
(a) Oregon, Idaho, and California become member states of the streamlined sales and use tax agreement; and
(b)(i) The United States congress grants individual states the authority to impose sales and use tax collection duties on remote sellers; or
(ii) It is determined by a court of competent jurisdiction, in a judgment not subject to review, that a state can impose sales and use tax collection duties on remote sellers.
(2) The department of revenue shall provide notice to affected taxpayers, the legislature, and others as deemed appropriate by the department, if either of the contingencies in this section occurs.
NEW SECTION. Sec. 1706. Section 1301 of this act expires on the date that section 1302 of this act takes effect.
NEW SECTION. Sec. 1707. Sections 1003, 1006, 1014, and 1018 of this act take effect the later of: The date chapter 67, Laws of 2002, becomes null and void; or July 1, 2008; or the date Oregon, Idaho, and California become member states of the streamlined sales and use tax agreement."
Correct the title.
Representative Orcutt spoke in favor of the adoption of the amendment.
Representative Hunter spoke against the adoption of the amendment.
The amendment was not adopted.
There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.
Representatives McIntire, Ericks, Condotta and Hunter spoke in favor of passage of the bill.
Representatives Orcutt, Roach and Dunn spoke against the passage of the bill.
The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute Senate Bill No. 5089.
ROLL CALL
The Clerk called the roll on the final passage of Substitute Senate Bill No. 5089 and the bill passed the House by the following vote: Yeas - 76, Nays - 15, Absent - 0, Excused - 7.
Voting yea: Representatives Alexander, Anderson, Appleton, Armstrong, Bailey, Blake, Buri, Chase, Clibborn, Cody, Condotta, Conway, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Eickmeyer, Ericks, Ericksen, Flannigan, Fromhold, Goodman, Grant, Haigh, Hailey, Haler, Hankins, Hasegawa, Hinkle, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Newhouse, O'Brien, Pedersen, Pettigrew, Priest, Quall, Roberts, Rodne, Rolfes, Ross, Santos, Schual-Berke, Sells, Simpson, Skinner, Sommers, Springer, Strow, B. Sullivan, P. Sullivan, Takko, Upthegrove, Van De Wege, Wallace, Walsh, Warnick, Williams, Wood and Mr. Speaker - 76.
Voting nay: Representatives Ahern, Barlow, Campbell, Chandler, Dunn, Green, Hurst, Kelley, Kretz, Kristiansen, McCune, Orcutt, Pearson, Roach and Seaquist - 15.
Excused: Representatives Crouse, Curtis, Kenney, Morris, Ormsby, Schindler and Sump - 7.
SUBSTITUTE SENATE BILL NO. 5089, having received the necessary constitutional majority, was declared passed.
Representative Hunter: "Thank you, Mr. Speaker. With your permission, I would like to thank the nonpartisan staff who had worked on this bill, several of whom who have numerous children in the time they have been working on this bill. Rick Peterson, Mark Matteson and Jeff Mitchell from our nonpartisan staff and Greg Potegal from the Department of Revenue have worked on this bill and I would urge the members' appreciation of their quality work."
There being no objection, the House advanced to the eleventh order of business.
There being no objection, the House adjourned until 10:00 a.m., March 19, 2007, the 71st Day of the Regular Session.
FRANK CHOPP, Speaker
RICHARD NAFZIGER, Chief Clerk