WHEREAS, Judge James "Ben" McInturff, former Washington State Court of Appeals judge for more than 20 years, grew up in Spokane, Washington; and

      WHEREAS, Judge McInturff graduated from Gonzaga University, the University of Washington, and Gonzaga University School of Law; and

      WHEREAS, The crippling disease of polio was contracted by the persistent and strong-willed Judge McInturff during his patriotic service in the United States Marine Corps; and

      WHEREAS, Judge McInturff was appointed Spokane County District Judge in 1953 after several years of private law practice; and

      WHEREAS, With other attorneys, Judge McInturff created a program that provides legal assistance to those who cannot afford it; and

      WHEREAS, Judge McInturff received the notable titles of 1987 President of the Legal Foundation in Washington and the 1980 "Boss of the Year" award by the Spokane Legal Secretaries Association; and

      WHEREAS, According to an article in The Spokesman-Review, Judge McInturff, during a hospital visit in 1980, inspired quadriplegic Holly Caudill to "Get up and get on with life," and later had the pleasure of swearing her in as an Assistant United States Attorney; and

      WHEREAS, Judge McInturff strongly sponsored and promoted the March of Dimes and the Americans with Disabilities Act; and

      WHEREAS, Judge McInturff retired from the Court of Appeals in 1988, where he is remembered for his outstanding public service and judgment; and

      WHEREAS, Judge McInturff passed away on May 11, 2006, leaving behind his loving wife, Betty McInturff;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate commemorate Judge "Ben" McInturff's accomplishments and contributions to Washington state; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the Washington State Senate, Betty McInturff, the Washington State Court of Appeals, and The Spokesman-Review.

      Senators Brown and Marr spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8687.

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

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced members of the Judge James "Ben" McInturff’s family who were seated in the gallery.

MOTION

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

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1566, by House Committee on Finance (originally sponsored by Representatives VanDeWege, Ericks, McIntire, Ericksen, Ross, Warnick, Condotta, Kessler and McCune)

      Modifying the rural county tax credit.

      The measure was read the second time.

MOTION

      On motion of Senator Prentice, the rules were suspended, Substitute House Bill No. 1566 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.

MOTION

On motion of Senator Brandland, Senator Pflug was excused.

MOTION

On motion of Senator Regala, Senators Brown, Kauffman, Kohl-Welles and McAuliffe were excused.

      The President declared the question before the Senate to be the final passage of Substitute House Bill No. 1566.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1566 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

      Voting yea: Senators Benton, Berkey, Brandland, Carrell, Clements, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Holmquist, Honeyford, Jacobsen, Kastama, Keiser, Kilmer, Kline, Marr, McCaslin, Morton, Murray, Oemig, Parlette, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 44

      Excused: Senators Brown, Kauffman, Kohl-Welles, McAuliffe and Pflug - 5

      SUBSTITUTE HOUSE BILL NO. 1566, 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 HOUSE BILL NO. 1902, by Representatives Grant, Newhouse, Linville, Orcutt, Blake, Hailey, Walsh, P. Sullivan, Kristiansen, Dunn and Hinkle

      Concerning the sales and use taxation of repairs to farm machinery and equipment.

      The measure was read the second time.

MOTION

      Senator Prentice moved that the following committee striking amendment by the Committee on Ways & Means be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 82.08.855 and 2006 c 172 s 1 are each amended to read as follows:

      (1) The tax levied by RCW 82.08.020 does not apply to the sale to an eligible farmer of:

      (a) Replacement parts for qualifying farm machinery and equipment;

      (b) Labor and services rendered in respect to the installing of replacement parts; and

      (c) Labor and services rendered in respect to the repairing of qualifying farm machinery and equipment, provided that during the course of repairing no tangible personal property is installed, incorporated, or placed in, or becomes an ingredient or component of, the qualifying farm machinery and equipment other than replacement parts.

      (2)(a) Notwithstanding anything to the contrary in this chapter, if ((replacement parts are installed by the seller during the course of repairing, cleaning, altering, or improving qualifying farm machinery and equipment and the seller makes a separate charge for the parts, the tax levied by RCW 82.08.020 does not apply to the separately stated charge to an eligible farmer for replacement parts but only if the separately stated charge does not exceed either the seller's current publicly stated retail price for the parts or, if no separately stated retail price is available, the seller's cost for the parts. However, the exemption provided by this section shall not apply if replacement parts are installed by the seller during the course of repairing, cleaning, altering, or improving qualifying farm machinery and equipment and the seller makes a single nonitemized charge for providing the parts and service)) a single transaction involves services that are not exempt under this section and services that would be exempt under this section if provided separately, the exemptions provided in subsection (1)(b) and (c) of this section apply if: (i) The seller makes a separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section; and (ii) the separately itemized charge does not exceed the seller's usual and customary charge for such services.

      (b) If the requirements in (a)(i) and (ii) of this subsection (2) are met, the exemption provided in subsection (1)(b) or (c) of this section applies to the separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section.

      (3)(a) A person claiming an exemption under this section must keep records necessary for the department to verify eligibility under this section. An exemption is available only when the buyer provides the seller with an exemption certificate issued by the department containing such information as the department requires. The exemption certificate shall be in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.

      (b) The department shall provide an exemption certificate to an eligible farmer or renew an exemption certificate, upon application by that eligible farmer. The application must be in a form and manner prescribed by the department and shall contain the following information as required by the department:

      (i) The name and address of the applicant;

      (ii) The uniform business identifier or tax reporting account number of the applicant, if the applicant is required to be registered with the department;

      (iii) The type of farming engaged in;

      (iv) Either a copy of the applicant's information as provided in (b)(iv)(A) of this subsection or a declaration as provided in (b)(iv)(B) of this subsection, as elected by the applicant:

      (A) A copy of the applicant's Schedule F of Form 1040, Form 1120, or other applicable form filed with the internal revenue service indicating the applicant's gross sales or harvested value of agricultural products ((by the applicant in the calendar)) for the tax year ((immediately preceding the year that the application was made to the department)) covered by the return. If ((application is made before the due date of the applicant's)) the applicant has not filed a federal income tax return for the prior ((calendar)) tax year((,)) or ((any extension of the due date)) is not required to file a federal income tax return, the applicant shall provide ((a copy of the appropriate federal income tax form that was due for the second calendar year immediately preceding the year that the application is made to the department. If the applicant is not required to file federal income tax returns, the department may require the applicant to provide copies of other documents establishing the amount of the applicant's gross sales of agricultural products for the relevant calendar year)) copies of other documents establishing the amount of the applicant's gross sales or harvested value of agricultural products for the tax year immediately preceding the year in which an application for exemption under this section is submitted to the department;

      (B) A declaration signed under penalty of perjury as provided in RCW 9A.72.085 that the applicant is an eligible farmer as defined in subsection (4)(b) of this section. Any person who knowingly makes a materially false statement on an application submitted to the department under the provisions of this section shall be guilty of perjury in the second degree under chapter 9A.72 RCW. In addition, the person is liable for payment of any taxes for which an exemption under this section was claimed, with interest at the rate provided for delinquent taxes, retroactively to the date the exemption was claimed, and penalties as provided under chapter 82.32 RCW;

      (v) The name of the individual authorized to sign the certificate, printed in a legible fashion;

      (vi) The signature of the authorized individual; and

      (vii) Other information the department may require to verify the applicant's eligibility for the exemption.

      (c)(i) Except as otherwise provided in this section, exemption certificates take effect on the date issued by the department are not transferable and are valid for the remainder of the calendar year in which the certificate is issued and the following four calendar years. The department shall attempt to notify holders of exemption certificates of the impending expiration of the certificate at least sixty days before the certificate expires and shall provide an application for renewal of the certificate.

      (ii) When a certificate holder merely changes identity or form of ownership of an entity and there is no change in beneficial ownership, the exemption certificate shall be transferred to the new entity upon written notice to the department by the transferor or transferee.

      (d)(i) ((Exemption certificates issued to persons who are eligible farmers under subsection (4)(b)(iii) of this section are conditioned on the person making at least ten thousand dollars of gross sales of agricultural products grown, raised, or produced by that person in the first full calendar year that the person engages in business as a farmer)) A person who is an eligible farmer as defined in subsection (4)(b)(iii) of this section shall be issued a conditional exemption certificate. The exemption certificate is conditioned upon:

      (A) The eligible farmer having gross sales or a harvested value of agricultural products grown, raised, or produced by that person of at least ten thousand dollars in the first full tax year in which the person engages in business as a farmer; or

      (B) The eligible farmer, during the first full tax year in which that person engages in business as a farmer, growing, raising, or producing agricultural products having an estimated value at any time during that year of at least ten thousand dollars, if the person will not sell or harvest an agricultural product during the first full tax year in which the person engages in business as a farmer.

      (ii) ((A person who is issued a conditional exemption certificate must provide the department with a copy of the person's Schedule F of Form 1040, Form 1120, or other applicable form filed with the internal revenue service indicating the gross sales of agricultural products by the person in the first full calendar year that the person engaged in business as a farmer. If a person is not required to file federal income tax returns, the person shall provide copies of other documents establishing the amount of the person's gross sales of agricultural products for the first full calendar year that the person engaged in business as a farmer. The documentation required in this subsection (3)(d)(ii) is due no later than December 31st of the year immediately following the first full calendar year in which the person engaged in business as a farmer.

      (iii))) If a person fails to ((provide the required documentation to the department by the due date or any extension granted by the department, or if)) meet the condition provided in (d)(i)(A) or (B) of this subsection ((is not met)), the department shall revoke the exemption certificate. The department shall notify the person in writing of the revocation and the person's responsibility, and due date, for ((repayment)) payment of any taxes for which an exemption under this section was claimed. Any taxes for which an exemption under this section was claimed shall be due and payable within thirty days of the date of the notice revoking the certificate. The department shall assess interest on the taxes for which the exemption was claimed. Interest shall be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, retroactively to the date the exemption was claimed, and shall accrue until the taxes for which the exemption was claimed are ((repaid)) paid. Penalties shall not be imposed on any tax required to be ((repaid)) paid under this subsection (3)(d)(ii) if full payment is received by the due date. Nothing in this subsection (3)(d) prohibits a person from reapplying for an exemption certificate.

      (4) The definitions in this subsection apply to this section.

      (a) "Agricultural products" has the meaning provided in RCW 82.04.213.

      (b) "Eligible farmer" means:

      (i) A farmer as defined in RCW 82.04.213 whose gross ((proceeds of)) sales or harvested value of agricultural products grown, raised, or produced by that person is at least ten thousand dollars ((in)) for the ((calendar)) tax year immediately preceding the year in which ((a claim of exemption is made under this section)) an application for exemption under this section is submitted to the department;

      (ii) The transferee of an exemption certificate under subsection (3)(c)(ii) of this section where the transferred certificate expires before the transferee engages in farming operations for a full ((calendar)) tax year, if the combined gross ((proceeds of)) sales ((by)) or harvested value of agricultural products that the transferor and transferee ((of agricultural products that they)) have grown, raised, or produced meet the requirements of (b)(i) of this subsection;

      (iii) A farmer as defined in RCW 82.04.213, who does not meet the definition of "eligible farmer" in (b)(i) or (ii) of this subsection, and who did not engage in farming for the entire ((calendar)) tax year immediately preceding the year in which application for exemption under this section is ((made and who did not engage in farming in any other year)) submitted to the department, because the farmer is either new to farming or newly returned to farming; or

       (iv) Anyone who otherwise meets the definition of "eligible farmer" in this subsection except that they are not a "person" as defined in RCW 82.04.030.

      (c) "Farm vehicle" has the same meaning as in RCW 46.04.181.

      (d) "Harvested value" means the number of units of the agricultural product that were grown, raised, or produced, multiplied by the average sales price of the agricultural product. For purposes of this subsection (4)(d), "average sales price" means the average price per unit of agricultural product received by farmers in this state as reported by the United States department of agriculture's national agricultural statistics service for the twelve-month period that coincides with, or that ends closest to, the end of the relevant tax year, regardless of whether the prices are subject to revision. If the price per unit of an agricultural product received by farmers in this state is not available from the national agricultural statistics service, average sales price may be determined by using the average price per unit of agricultural product received by farmers in this state as reported by a recognized authority for the agricultural product.

      (e) "Qualifying farm machinery and equipment" means machinery and equipment used primarily by an eligible farmer for growing, raising, or producing agricultural products. "Qualifying farm machinery and equipment" does not include:

      (i) ((Farm vehicles and other)) Vehicles as ((those terms are defined in chapter 46.04 RCW, except)) defined in RCW 46.04.670, other than farm tractors as defined in RCW 46.04.180, farm vehicles, and other farm implements. For purposes of this subsection (4)(((c)))(e)(i), "farm implement" means machinery or equipment manufactured, designed, or reconstructed for agricultural purposes and used primarily by an eligible farmer to grow, raise, or produce agricultural products, but does not include lawn tractors and all-terrain vehicles;

      (ii) Aircraft;

      (iii) Hand tools and hand-powered tools; and

      (iv) Property with a useful life of less than one year.

      (((d))) (f)(i) "Replacement parts" means those parts that replace an existing part, or which are essential to maintain the working condition, of a piece of qualifying farm machinery or equipment. ((However, "replacement parts" shall not include paint, fuel, oil, grease, hydraulic fluids, antifreeze, and similar items))

(ii) Paint, fuel, oil, hydraulic fluids, antifreeze, and similar items are not replacement parts except when installed, incorporated, or placed in qualifying farm machinery and equipment during the course of installing replacement parts as defined in (f)(i) of this subsection or making repairs as described in subsection (1)(c) of this section.

      (g) "Tax year" means the period for which a person files its federal income tax return, irrespective of whether the period represents a calendar year, fiscal year, or some other consecutive twelve-month period. If a person is not required to file a federal income tax return, "tax year" means a calendar year.

      Sec. 2. RCW 82.12.855 and 2006 c 172 s 2 are each amended to read as follows:

      (1) The provisions of this chapter do not apply in respect to the use by an eligible farmer of:

      (a) Replacement parts for qualifying farm machinery and equipment;

      (b) Labor and services rendered in respect to the installing of replacement parts; and

      (c) Labor and services rendered in respect to the repairing of qualifying farm machinery and equipment, provided that during the course of repairing no tangible personal property is installed, incorporated, or placed in, or becomes a component of, the qualifying farm machinery and equipment other than replacement parts.

      (2)(a) Notwithstanding anything to the contrary in this chapter, if ((replacement parts are installed by the seller during the course of repairing, cleaning, altering, or improving qualifying farm machinery and equipment and the seller makes a separate charge for the parts, the tax imposed by this chapter does not apply to the separately stated charge to an eligible farmer for replacement parts but only if the separately stated charge does not exceed either the seller's current publicly stated retail price for the parts or, if no separately stated retail price is available, the seller's cost for the parts. However, the exemption provided by this section shall not apply if replacement parts are installed by the seller during the course of repairing, cleaning, altering, or improving qualifying farm machinery and equipment and the seller makes a single nonitemized charge for providing the parts and service)) a single transaction involves services that are not exempt under this section and services that would be exempt under this section if provided separately, the exemptions provided in subsection (1)(b) and (c) of this section apply if: (i) The seller makes a separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section; and (ii) the separately itemized charge does not exceed the seller's usual and customary charge for such services.

      (b) If the requirements in (a)(i) and (ii) of this subsection (2) are met, the exemption provided in subsection (1)(b) or (c) of this section applies to the separately itemized charge for labor and services described in subsection (1)(b) or (c) of this section.

      (3) The definitions and recordkeeping requirements in RCW 82.08.855, other than the exemption certificate requirement, apply to this section.

(4) If a person is an eligible farmer as defined in RCW 82.08.855(4)(b)(iii) who cannot prove income because the person is new to farming or newly returned to farming, the exemption under this section will apply only if one of the conditions in RCW 82.08.855(3)(d)(i)(A) or (B) is met. If the conditions are not met, any taxes for which an exemption under this section was claimed and interest on such taxes must be paid. Amounts due under this subsection shall be in accordance with RCW 82.08.855(3)(d)(ii), except that the due date for payment is January 31st of the year immediately following the first full tax year in which the person engaged in business as a farmer.

      (5) Except as provided in subsection (4) of this section, the department shall not assess the tax imposed under this chapter against a person who no longer qualifies as an eligible farmer with respect to the use of any articles or services exempt under subsection (1) of this section, if the person was an eligible farmer when the person first put the articles or services to use in this state."

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Ways & Means to Engrossed House Bill No. 1902.

      The motion by Senator Prentice carried and the committee 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 "equipment;" strike the remainder of the title and insert "amending RCW 82.08.855 and 82.12.855; and prescribing penalties."

MOTION

      On motion of Senator Prentice, the rules were suspended, Engrossed House Bill No. 1902 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 Prentice spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed House Bill No. 1902 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1902 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 32; Nays, 12; Absent, 1; Excused, 4.

      Voting yea: Senators Berkey, Brandland, Carrell, Clements, Delvin, Eide, Franklin, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Holmquist, Honeyford, Jacobsen, Kastama, Kilmer, Marr, McAuliffe, McCaslin, Morton, Parlette, Poulsen, Prentice, Rasmussen, Roach, Schoesler, Sheldon, Shin, Stevens, Swecker and Zarelli - 32

      Voting nay: Senators Fairley, Fraser, Keiser, Kline, Murray, Oemig, Pridemore, Regala, Rockefeller, Spanel, Tom and Weinstein - 12

      Absent: Senator Benton - 1

      Excused: Senators Brown, Kauffman, Kohl-Welles and Pflug - 4

      ENGROSSED HOUSE BILL NO. 1902 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

      HOUSE BILL NO. 2163, by Representatives Cody, Sommers, Kenney and Moeller

      Creating the public employees' benefits board medical benefits administration account.

      The measure was read the second time.

MOTION

      On motion of Senator Prentice, the rules were suspended, House Bill No. 2163 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.

MOTION

On motion of Senator Regala, Senator Kastama was excused.

      The President declared the question before the Senate to be the final passage of House Bill No. 2163.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2163 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

      Voting yea: Senators Benton, Berkey, Brandland, Carrell, Clements, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Honeyford, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 46

      Voting nay: Senator Holmquist - 1

      Excused: Senators Brown and Kohl-Welles - 2

      HOUSE BILL NO. 2163, 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 Zarelli: “Mr. President, I’m trying to locate the bills on calendar that are on this short list and I can’t seem to find them on any of the calendars that we have even the books they refer too. I’m trying to find out where we can read about the bills that are before us on this calendar.”

REPLY BY THE PRESIDENT

President Owen: “Let me see what I can find out for you... It is that calendar, the April 13^th calendar. Right, Senator Carrell? Is that the one you have there? What’s the date on that Senator Carrell? Thank you. No, No, the very last bill is on the April 13^th calendar that Senator Carrell has in his hand there...That bill could be found on the April 13th calendar. Not the supplemental calendar...”

SECOND READING

      HOUSE BILL NO. 1674, by Representatives Hunter, Conway, Dunn, Ormsby and Wood

      Authorizing the governor to enter into a cigarette tax contract with the Spokane Tribe.

      The measure was read the second time.

MOTION

      Senator Prentice moved that the following committee striking amendment by the Committee on Ways & Means be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 43.06.460 and 2005 c 208 s 1 are each amended to read as follows:

      (1) The governor is authorized to enter into cigarette tax contracts with the Squaxin Island Tribe, the Nisqually Tribe, Tulalip Tribes, the Muckleshoot Indian Tribe, the Quinault Nation, the Jamestown S'Klallam Indian Tribe, the Port Gamble S'Klallam Tribe, the Stillaguamish Tribe, the Sauk-Suiattle Tribe, the Skokomish Indian Tribe, the Yakama Nation, the Suquamish Tribe, the Nooksack Indian Tribe, the Lummi Nation, the Chehalis Confederated Tribes, the Upper Skagit Tribe, the Snoqualmie Tribe, the Swinomish Tribe, the Samish Indian Nation, the Quileute Tribe, the Kalispel Tribe, the Confederated Tribes of the Colville Reservation, the Cowlitz Indian Tribe, the Lower Elwha Klallam Tribe, ((and)) the Makah Tribe, the Hoh Tribe, and the Spokane Tribe. Each contract adopted under this section shall provide that the tribal cigarette tax rate be one hundred percent of the state cigarette and state and local sales and use taxes within three years of enacting the tribal tax and shall be set no lower than eighty percent of the state cigarette and state and local sales and use taxes during the three-year phase-in period. The three-year phase-in period shall be shortened by three months each quarter the number of cartons of nontribal manufactured cigarettes is at least ten percent or more than the quarterly average number of cartons of nontribal manufactured cigarettes from the six-month period preceding the imposition of the tribal tax under the contract. Sales at a retailer operation not in existence as of the date a tribal tax under this section is imposed are subject to the full rate of the tribal tax under the contract. The tribal cigarette tax is in lieu of the state cigarette and state and local sales and use taxes, as provided in RCW 43.06.455(3).

       (2) A cigarette tax contract under this section is subject to RCW 43.06.455.

      NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007."

MOTION

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

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

      "(3) The governor may not directly or indirectly accept a contribution from a party to an agreement that has been negotiated within the prior four years or is currently under negotiation, if the governor is authorized to negotiate with the party under subsection (1) of this section."

      Renumber the sections consecutively and correct any internal references accordingly.

      Senator Honeyford spoke in favor of adoption of the amendment to the committee striking amendment.

      Senator Prentice spoke against adoption of the amendment to the committee striking amendment.

The President declared the question before the Senate to be the adoption of the amendment by Senator Honeyford on page 2, after line 2 to the committee striking amendment to House Bill No. 1674.

The motion by Senator Honeyford failed and the amendment to the committee striking amendment was not adopted by voice vote.

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Ways & Means to House Bill No. 1674.

      The motion by Senator Prentice carried and the committee 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 "Tribe;" strike the remainder of the title and insert "amending RCW 43.06.460; providing an effective date; and declaring an emergency."

MOTION

      On motion of Senator Prentice, the rules were suspended, House Bill No. 1674 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 Prentice 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. 1674 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1674 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 45; Nays, 1; Absent, 1; Excused, 2.

      Voting yea: Senators Benton, Berkey, Brandland, Carrell, Clements, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Holmquist, Honeyford, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Sheldon, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 45

      Voting nay: Senator Schoesler - 1

      Absent: Senator McAuliffe - 1

      Excused: Senators Brown and Kohl-Welles - 2

      HOUSE BILL NO. 1674 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.

PARLIAMENTARY INQUIRY

Senator Schoesler: “We just received list number two of order of consideration with a number of bills that I believe the members probably have caucused on. For the members information, could we find out what books those pages are referenced because I believe they probably come from multiple books that the members need to be aware of what there voting on?”

REPLY BY THE PRESIDENT

President Owen: “Senator Schoesler, we will see what we can do. Senator Schoesler, these are new dispute calendars and concurrence calendars and they’re all on these two. Either the blue or the green dispute or concurring calendar.”

PARLIAMENTARY INQUIRY

Senator Schoesler: “Thank you Mr. President. What are the dates? Those are the April 20^th summaries?”

REPLY BY THE PRESIDENT

President Owen: “Both of them, yes.”

REMARKS BY THE PRESIDENT

      President Owen: "The President can't help but notice today that its another milestone in the lite of one of the Senators. Today celebrating his birthday is Senator McCaslin. Happy Birthday, Senator McCaslin."

MOTION

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

MESSAGE FROM THE HOUSE

April 19, 2007

MR. PRESIDENT:

      The House insists on its position regarding the Senate amendment(s) to HOUSE BILL NO. 1051 and again asks Senate to recede therefrom.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

      Senator McAuliffe moved that the Senate adhere to its position on House Bill No. 1051 and ask the House to concur.

      The President declared the question before the Senate to be motion by Senator McAuliffe that the Senate adhere to its position on House Bill No. 1051 and ask the House to concur.

      The motion by Senator McAuliffe carried and the Senate adhered to its position on House Bill No. 1051 and ask the House to concur.

MESSAGE FROM THE HOUSE

April 17, 2007

MR. PRESIDENT:

      The House refuses to concur in the Senate amendment(s) to ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1303 and asks Senate to recede therefrom.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Poulsen moved that the Senate insist on its position on the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1303 and ask the House to concur thereon.

      The President declared the question before the Senate to be motion by Senator Poulsen that the Senate insist on its position on the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1303 and ask the House to concur thereon.

The motion by Senator Poulsen carried and the Senate insisted on its position in the Senate amendment(s) to Engrossed Second Substitute House Bill No. 1303 and asked the House to concur thereon.

MESSAGE FROM THE HOUSE

April 18, 2007

MR. PRESIDENT:

      Under suspension of rules SUBSTITUTE SENATE BILL NO. 5340 was returned to second reading for purpose of an amendments: 5340-S AMH LANT H3591 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 the supreme court, in its opinion in McClarty v. Totem Electric, 157 Wn.2d 214, 137 P.3d 844 (2006), failed to recognize that the Law Against Discrimination affords to state residents protections that are wholly independent of those afforded by the federal Americans with Disabilities Act of 1990, and that the law against discrimination has provided such protections for many years prior to passage of the federal act.

      Sec. 2. RCW 49.60.040 and 2006 c 4 s 4 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Person" includes one or more individuals, partnerships, associations, organizations, corporations, cooperatives, legal representatives, trustees and receivers, or any group of persons; it includes any owner, lessee, proprietor, manager, agent, or employee, whether one or more natural persons; and further includes any political or civil subdivisions of the state and any agency or instrumentality of the state or of any political or civil subdivision thereof;

      (2) "Commission" means the Washington state human rights commission;

      (3) "Employer" includes any person acting in the interest of an employer, directly or indirectly, who employs eight or more persons, and does not include any religious or sectarian organization not organized for private profit;

      (4) "Employee" does not include any individual employed by his or her parents, spouse, or child, or in the domestic service of any person;

      (5) "Labor organization" includes any organization which exists for the purpose, in whole or in part, of dealing with employers concerning grievances or terms or conditions of employment, or for other mutual aid or protection in connection with employment;

      (6) "Employment agency" includes any person undertaking with or without compensation to recruit, procure, refer, or place employees for an employer;

      (7) "Marital status" means the legal status of being married, single, separated, divorced, or widowed;

      (8) "National origin" includes "ancestry";

      (9) "Full enjoyment of" includes the right to purchase any service, commodity, or article of personal property offered or sold on, or by, any establishment to the public, and the admission of any person to accommodations, advantages, facilities, or privileges of any place of public resort, accommodation, assemblage, or amusement, without acts directly or indirectly causing persons of any particular race, creed, color, sex, sexual orientation, national origin, or with any sensory, mental, or physical disability, or the use of a trained dog guide or service animal by a ((disabled)) person with a disability, to be treated as not welcome, accepted, desired, or solicited;

      (10) "Any place of public resort, accommodation, assemblage, or amusement" includes, but is not limited to, any place, licensed or unlicensed, kept for gain, hire, or reward, or where charges are made for admission, service, occupancy, or use of any property or facilities, whether conducted for the entertainment, housing, or lodging of transient guests, or for the benefit, use, or accommodation of those seeking health, recreation, or rest, or for the burial or other disposition of human remains, or for the sale of goods, merchandise, services, or personal property, or for the rendering of personal services, or for public conveyance or transportation on land, water, or in the air, including the stations and terminals thereof and the garaging of vehicles, or where food or beverages of any kind are sold for consumption on the premises, or where public amusement, entertainment, sports, or recreation of any kind is offered with or without charge, or where medical service or care is made available, or where the public gathers, congregates, or assembles for amusement, recreation, or public purposes, or public halls, public elevators, and public washrooms of buildings and structures occupied by two or more tenants, or by the owner and one or more tenants, or any public library or educational institution, or schools of special instruction, or nursery schools, or day care centers or children's camps: PROVIDED, That nothing contained in this definition shall be construed to include or apply to any institute, bona fide club, or place of accommodation, which is by its nature distinctly private, including fraternal organizations, though where public use is permitted that use shall be covered by this chapter; nor shall anything contained in this definition apply to any educational facility, columbarium, crematory, mausoleum, or cemetery operated or maintained by a bona fide religious or sectarian institution;

      (11) "Real property" includes buildings, structures, dwellings, real estate, lands, tenements, leaseholds, interests in real estate cooperatives, condominiums, and hereditaments, corporeal and incorporeal, or any interest therein;

      (12) "Real estate transaction" includes the sale, appraisal, brokering, exchange, purchase, rental, or lease of real property, transacting or applying for a real estate loan, or the provision of brokerage services;

      (13) "Dwelling" means any building, structure, or portion thereof that is occupied as, or designed or intended for occupancy as, a residence by one or more families, and any vacant land that is offered for sale or lease for the construction or location thereon of any such building, structure, or portion thereof;

      (14) "Sex" means gender;

      (15) "Sexual orientation" means heterosexuality, homosexuality, bisexuality, and gender expression or identity. As used in this definition, "gender expression or identity" means having or being perceived as having a gender identity, self-image, appearance, behavior, or expression, whether or not that gender identity, self-image, appearance, behavior, or expression is different from that traditionally associated with the sex assigned to that person at birth;

      (16) "Aggrieved person" means any person who: (a) Claims to have been injured by an unfair practice in a real estate transaction; or (b) believes that he or she will be injured by an unfair practice in a real estate transaction that is about to occur;

      (17) "Complainant" means the person who files a complaint in a real estate transaction;

      (18) "Respondent" means any person accused in a complaint or amended complaint of an unfair practice in a real estate transaction;

      (19) "Credit transaction" includes any open or closed end credit transaction, whether in the nature of a loan, retail installment transaction, credit card issue or charge, or otherwise, and whether for personal or for business purposes, in which a service, finance, or interest charge is imposed, or which provides for repayment in scheduled payments, when such credit is extended in the regular course of any trade or commerce, including but not limited to transactions by banks, savings and loan associations or other financial lending institutions of whatever nature, stock brokers, or by a merchant or mercantile establishment which as part of its ordinary business permits or provides that payment for purchases of property or service therefrom may be deferred;

      (20) "Families with children status" means one or more individuals who have not attained the age of eighteen years being domiciled with a parent or another person having legal custody of such individual or individuals, or with the designee of such parent or other person having such legal custody, with the written permission of such parent or other person. Families with children status also applies to any person who is pregnant or is in the process of securing legal custody of any individual who has not attained the age of eighteen years;

      (21) "Covered multifamily dwelling" means: (a) Buildings consisting of four or more dwelling units if such buildings have one or more elevators; and (b) ground floor dwelling units in other buildings consisting of four or more dwelling units;

      (22) "Premises" means the interior or exterior spaces, parts, components, or elements of a building, including individual dwelling units and the public and common use areas of a building;

      (23) "Dog guide" means a dog that is trained for the purpose of guiding blind persons or a dog that is trained for the purpose of assisting hearing impaired persons;

      (24) "Service animal" means an animal that is trained for the purpose of assisting or accommodating a ((disabled person's)) sensory, mental, or physical disability of a person with a disability;

      (25)(a) "Disability" means the presence of a sensory, mental, or physical impairment that:

      (i) Is medically cognizable or diagnosable; or

      (ii) Exists as a record or history; or

      (iii) Is perceived to exist whether or not it exists in fact.

      (b) A disability exists whether it is temporary or permanent, common or uncommon, mitigated or unmitigated, or whether or not it limits the ability to work generally or work at a particular job or whether or not it limits any other activity within the scope of this chapter.

      (c) For purposes of this definition, "impairment" includes, but is not limited to:

      (i) Any physiological disorder, or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: Neurological, musculoskeletal, special sense organs, respiratory, including speech organs, cardiovascular, reproductive, digestive, genitor-urinary, hemic and lymphatic, skin, and endocrine; or

      (ii) Any mental, developmental, traumatic, or psychological disorder, including but not limited to cognitive limitation, organic brain syndrome, emotional or mental illness, and specific learning disabilities.

      (d) Only for the purposes of qualifying for reasonable accommodation in employment, an impairment must be known or shown through an interactive process to exist in fact and:

      (i) The impairment must have a substantially limiting effect upon the individual's ability to perform his or her job, the individual's ability to apply or be considered for a job, or the individual's access to equal benefits, privileges, or terms or conditions of employment; or

      (ii) The employee must have put the employer on notice of the existence of an impairment, and medical documentation must establish a reasonable likelihood that engaging in job functions without an accommodation would aggravate the impairment to the extent that it would create a substantially limiting effect.

      (e) For purposes of (d) of this subsection, a limitation is not substantial if it has only a trivial effect.

      NEW SECTION. Sec. 3. This act is remedial and retroactive, and applies to all causes of action occurring before July 6, 2006, and to all causes of action occurring on or after the effective date of this act."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Kline moved that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5340.

      Senator Kline spoke in favor of the motion.

POINT OF INQUIRY

Senator Weinstein: “Would Senator Kline yield to a question? Senator Kline, in reading the new effective dates section of this bill, is it your intent to have this definition apply to all causes of action that occurred prior to the date of the McClarty decision, July 6, 2006, or will occur after the effective date of this act.”

Senator Kline: “Yes Senator. This effective date was negotiated with various stake holders, including the Governor’s office and the Department of Personnel. The intent is to have these provisions apply to causes of action that will arise based on actions that occurred prior to the McClarty decision on July 6, 2006 or based on actions that occur after the effective date of this bill. The provisions of the law will not apply to claims that arise solely based on actions that occurred between these two dates because some employers may have relied on the case to apply different policies and procedures during that time. Thank you.”

MOTION

The President declared the question before the Senate to be the motion by Senator Kline that the Senate concur in the House amendment(s) to Substitute Senate Bill No. 5340.

Senator Kline spoke in favor of the motion.

The motion by Senator Kline carried and the Senate concurred in the House amendment(s) to Substitute Senate Bill No. 5340 by voice vote.

      Senators McCaslin, Carrell and Brandland spoke against final passage.

      Senator Kline spoke in favor of final passage.

MOTION

Senator Hewitt moved that further consideration of Substitute Senate Bill No. 5340 be deferred and the bill it’s place on the third reading calendar.

MOTION

      Senator Schoesler demanded a roll call vote.

      The President declared that at least one-sixth of the members joined the demand and the demand was sustained.

The President declared the question before the Senate to be the motion by Senator Hewitt to defer further consideration of Substitute Senate Bill No. 5340.

      The Secretary called the roll on the motion by Senator Hewitt and the motion failed by the following vote: Yeas, 18; Nays, 30; Absent, 0; Excused, 1.

      Voting yea: Senators Benton, Brandland, Carrell, Clements, Delvin, Hewitt, Holmquist, Honeyford, McCaslin, Morton, Parlette, Pflug, Roach, Schoesler, Sheldon, Stevens, Swecker and Zarelli - 18.

      Voting nay: Senators Berkey, Brown, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hobbs, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, Murray, Oemig, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Shin, Spanel, Tom and Weinstein - 30.

      Excused: Senator Kohl-Welles - 1.

POINT OF INQUIRY

Senator Carrell: “Would the fair gentleman from the Thirty-Seventh District yield to a question? Senator Kline, there seems to be some disagreement as to the meaning of the wording in Senate Bill No. 5340 on page five where is sub iii, it is perceived to exist or is perceived to exist whether or not it exist in fact. Does this refer to perceived by the employer or the employee?"

Senator Kline: “There’s a very simple answer to that. That’s the employer. The person who is alledged to be discriminating based on an assumption which may or may not be true. That is perceived to exist whether or not it exist in fact. That’s typically an employment situation, the employer not the employee.”

Senator Carrell: “So this only refers to the employer's perception of the condition?”

Senator Kline: “Correct.”

The President declared the question before the Senate to be the final passage of Substitute Senate Bill No. 5340, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5340, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 46; Nays, 2; Absent, 0; Excused, 1.

      Voting yea: Senators Benton, Berkey, Brandland, Brown, Carrell, Clements, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 46

      Voting nay: Senators Holmquist and Honeyford - 2

      Excused: Senator Kohl-Welles - 1

SUBSTITUTE SENATE BILL NO. 5340, 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

April 18, 2007

MR. PRESIDENT:

      Under suspension of rules SECOND SUBSTITUTE SENATE BILL NO. 5955 was returned to second reading for purpose of an amendment: 5955-S2 AMH SULP MCLA 293, and passed the House as amended by the House.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 28A.415 RCW to read as follows:

      SCHOOL DISTRICT LEADERSHIP ACADEMY. (1) Research supports the value of quality school and school district leadership. Effective leadership is critical to improving student learning and transforming underperforming schools and school districts into world-class learning centers.

      (2) A public-private partnership is established to develop, pilot, and implement the Washington state leadership academy to focus on the development and enhancement of personal leadership characteristics and the teaching of effective practices and skills demonstrated by school and district administrators who are successful managers and instructional leaders. It is the goal of the academy to provide state-of-the-art programs and services across the state.

      (3) Academy partners include the state superintendent and principal professional associations, private nonprofit foundations, institutions of higher education with approved educator preparation programs, the professional educator standards board, the office of the superintendent of public instruction, educational service districts, the state school business officers' association, and other entities identified by the partners. The partners shall designate an independent organization to act as the fiscal agent for the academy and shall establish a board of directors to oversee and direct the academy's finances, services, and programs. The academy shall be supported by a national research institution with demonstrated expertise in educational leadership.

      (4) Initial development of academy course content and activities shall be supported by private funds. Initial tasks of the academy are to:

      (a) Finalize a comprehensive design of the academy and the development of the curriculum frameworks for a comprehensive leadership development program that includes coursework, practicum, mentoring, and evaluation components;

      (b) Develop curriculum for individual leadership topics;

      (c) Pilot the curriculum and all program components; and

      (d) Modify the comprehensive design, curriculum coursework, practicum, and mentoring programs based on the research results gained from pilot activities.

      (5) The board of directors shall report semiannually to the superintendent of public instruction on the financial contributions provided by foundations and other organizations to support the work of the academy. The board of directors shall report by December 31st each year to the superintendent of public instruction on the programs and services provided, numbers of participants in the various academy activities, evaluation activities regarding program and participant outcomes, and plans for the academy's future development.

      (6) The board of directors shall make recommendations for changes in superintendent and principal preparation programs, the administrator licensure system, and continuing education requirements.

      NEW SECTION. Sec. 2. PROFESSIONAL EDUCATOR STANDARDS BOARD DUTIES. (1) The purpose of the duties in this section for the professional educator standards board is to take the next steps in developing quality teaching knowledge and skill in the state's teaching ranks. The duties build upon the current teacher development foundation that requires demonstrated teaching competency, requires evidence of positive impact on student learning, and focuses on furthering state kindergarten through twelfth grade learning goals through instructional skill alignment.

      (2) The professional educator standards board shall:

      (a) By December 2007:

      (i) Adopt new knowledge and skill standards that prepare all individuals seeking residency teacher certification to integrate mathematics across all content areas; and

      (ii) Adopt new certification requirements for individuals seeking residency teacher certification as elementary education or middle level and secondary mathematics teachers to assure adequate content and instructional strategy preparation to teach to the kindergarten through twelfth grades state mathematics and science standards;

      (b) By June 2009:

      (i) Set performance standards and develop, pilot, and implement a uniform and externally administered professional-level certification assessment based on demonstrated teaching skill. In the development of this assessment, consideration shall be given to changes in professional certification program components such as the culminating seminar;

      (ii) Summarize its work in the development of the assessment in (b)(i) of this subsection in the annual reports required by RCW 28A.410.240; and

      (iii) Review and revise the standards for higher education teacher preparation programs to incorporate updated practices to enhance teacher success in a knowledge and skill-based performance system that emphasizes strong content, applied learning, and personal, meaningful connections with students; and

      (c) By December 2009, review and revise as needed teacher preparation standards and requirements to focus on diversity in cultural knowledge and respect.

      NEW SECTION. Sec. 3. A new section is added to chapter 28A.415 RCW to read as follows:

      MATH, SCIENCE, AND TARGETED SECONDARY READING INITIATIVE. Sections 3 through 6 of this act represent core components of a comprehensive initiative to improve mathematics, science, and targeted secondary reading education and achievement through educator professional development and support. The initiative focuses on:

      (1) A regional delivery system to provide professional development and support to schools and school districts through the educational service districts;

      (2) A tiered support system that provides resources, services, assistance, and intervention for schools and districts, depending on their levels of need;

      (3) Leveraging existing public and private resources and district-initiated activities; and

      (4) Accountability through outcome-oriented performance agreements, contracts, reporting, and data collection.

      NEW SECTION. Sec. 4. A new section is added to chapter 28A.415 RCW to read as follows:

      MATH, SCIENCE, AND TARGETED SECONDARY READING INITIATIVE. (1) Subject to funds appropriated for this purpose, the mathematics, science, and targeted secondary reading improvement initiative shall provide the capacity and resources for the superintendent of public instruction, educational service districts, school districts, and schools to conduct a broad range of activities, depending on the level of need and priority of the school or district. The focus of the initiative is on building and enhancing the quality of mathematics and science instruction.

      (2) Activities supported by the initiative include, but are not limited to:

      (a) Targeted professional development in content knowledge, content-specific pedagogy, differentiated instruction, effective teaching strategies, learning modules, and mathematics and science standards and curriculum;

      (b) Use and analysis of diagnostic assessments and other data on student achievement to improve instruction;

      (c) Curriculum alignment and development or purchase of supplemental materials;

      (d) Integration of technology; and

      (e) Mentors and instructional coaches.

      NEW SECTION. Sec. 5. A new section is added to chapter 28A.415 RCW to read as follows:

      MATH, SCIENCE, AND TARGETED SECONDARY READING INITIATIVE. (1) In support of the mathematics, science, and targeted secondary reading improvement initiative, the office of the superintendent of public instruction shall:

      (a) In collaboration with the educational service districts, develop a methodology for distributing funds appropriated for activities under the tiered support system in this section among the educational service districts and among the three tiers of support. The methodology shall take into account the anticipated demand and need for services by school districts in each tier and the size of those school districts. The methodology shall also reflect a higher priority and greater need for support and resources for schools and districts in tier three;

      (b) Develop guidelines for educational service districts in administering grants, developing district improvement agreements, and implementing intensive intervention and support services. The guidelines shall not require all educational service districts to follow the same procedures in all circumstances, but shall ensure general equity for school districts across the state in how the districts may access resources under the initiative and the activities and services that are provided by the educational service districts;

      (c) Identify the schools and school districts eligible for tier three intensive intervention and support, based on low student performance in mathematics and science. The superintendent shall consider whether the school has the capacity to feasibly integrate additional resources with any existing state or federal improvement funds. To the maximum extent possible, the identification of and the intensive intervention services provided to tier three schools and districts shall align with the accountability plan developed by the state board of education; and

      (d) In collaboration with the educational service districts, develop guidelines and a common reporting format for collecting data and information about the activities and outcomes under the initiative and designate one or more common diagnostic assessments for districts to use in reporting and monitoring student achievement.

      (2)(a) If funds are appropriated, resources for the mathematics, science, and targeted secondary reading improvement initiative shall be provided through the office of the superintendent of public instruction and educational service districts to schools and school districts based on a tiered support system. The legislature's intent is that resources from the mathematics, science, and targeted secondary reading improvement initiative are provided over a four-year period.

      (b) Tier one: Initiative grants. School districts may apply on a competitive basis to their educational service district for grants to support activities to improve mathematics, science, and secondary reading instruction. A district may contract with the educational service district for services, use the grant for district-initiated activities, or both. Tier one districts must demonstrate how district resources and resources from public-private partnerships shall be used to leverage the grant funds. Tier one grant recipients must identify measurable outcomes from the activities supported by the grant and report results in a prescribed format, including student achievement data from designated diagnostic assessments.

      (c) Tier two: Improvement agreements. School districts may work with the office of the superintendent of public instruction and educational service districts to plan, develop, and implement a mathematics, science, and targeted secondary reading improvement initiative tailored to the needs of the district. The office of the superintendent of public instruction, the educational service district, and the school district shall develop a joint agreement that identifies the services and support to be provided by the educational service district, the activities to be conducted by the district using improvement agreement funds, and the expected measurable outcomes from the activities. Recipients of funds under a tier two improvement agreement must report results of the activities supported by the agreement in a prescribed format, including student achievement data from designated diagnostic assessments.

      (d) Tier three: Intensive intervention and support. School districts and schools with low student performance in mathematics, science, and/or secondary reading as identified by the superintendent of public instruction under subsection (1) of this section are eligible for intensive intervention and support coordinated by the office of the superintendent of public instruction and/or the educational service district. School districts or individual schools may receive tier three support. Recipients of funds under tier three support must:

      (i) Participate in an audit of the mathematics, science, and secondary reading instructional delivery system, including policies and practices, curriculum alignment, teacher pedagogy and content knowledge, and assessment of overall climate and practice compared to best practices;

      (ii) Develop, with assistance from the educational service district, a school or district intervention plan that focuses on areas of highest need and provides intensive professional development in those areas;

      (iii) Participate in professional development using the services of a technical assistance team that includes a trained and experienced facilitator and mathematics, science, or reading instructional coaches to provide job-embedded professional development; and

      (iv) Identify measurable outcomes from the activities supported by the grant and report results in a prescribed format, including student achievement data from designated diagnostic assessments.

      NEW SECTION. Sec. 6. A new section is added to chapter 28A.415 RCW to read as follows:

      MATH, SCIENCE, AND TARGETED SECONDARY READING INITIATIVE. (1) Educational service districts shall coordinate with the superintendent of public instruction to develop and maintain the capacity to provide administrative, professional development, technical assistance, and intervention services under the mathematics, science, and targeted secondary reading improvement initiative to support school districts as required under section 5 of this act, including:

      (a) Administering, reviewing, and monitoring grants for tier one grant recipients and providing contracted services;

      (b) Developing, administering, and monitoring tier two improvement agreements and providing support and services under the terms of the agreements; and

      (c) Coordinating and providing the intensive intervention and support for tier three schools and districts, including the instructional audit, intervention plan, and intervention team.

      (2) Educational service districts shall also:

      (a) Develop public-private partnerships and seek external grants and funds to leverage the state resources provided to support the mathematics and science improvement initiative;

      (b) Collect, compile, and disseminate data and information about the activities and outcomes under the initiative, including student achievement data from designated diagnostic assessments; and

      (c) Develop appropriate reporting and monitoring procedures to ensure accountability for the use of funds distributed to school districts through the tiered support system and for the achievement of desired outcomes.

      NEW SECTION. Sec. 7. A new section is added to chapter 28A.415 RCW to read as follows:

      REGIONAL PROFESSIONAL DEVELOPMENT PARTNERSHIPS. The office of the superintendent of public instruction shall:

      (1) Create partnerships with the educational service districts or public or private institutions of higher education with approved educator preparation programs to develop and deliver professional development learning opportunities for educators that fulfill the goals and address the activities described in sections 3 through 6 and section 9 of this act. The partnerships shall:

      (a) Support school districts by providing professional development leadership, courses, and consultation services to school districts in their implementation of professional development activities, including the activities described in sections 3 through 6 and section 9 of this act; and

      (b) Support one another in the delivery of state-level and regional-level professional development activities such as state conferences and regional accountability institutes; and

      (2) Enter into a performance agreement with each educational service district to clearly articulate partner responsibilities and assure fidelity for the delivery of professional development initiatives including job-embedded practices. Components of such performance agreements shall include:

      (a) Participation in the development of various professional development workshops, programs, and activities;

      (b) Characteristics and qualifications of professional development staff supported by the program;

      (c) Methods to ensure consistent delivery of professional development services; and

      (d) Reporting responsibilities related to services provided, program participation, outcomes, and recommendations for service improvement.

      Sec. 8. RCW 28A.310.350 and 1977 ex.s. c 283 s 10 are each amended to read as follows:

      EDUCATIONAL SERVICE DISTRICTS. The basic core services and cost upon which educational service districts are budgeted shall include, but not be limited to, the following:

      (1) Educational service district administration and facilities such as office space, maintenance and utilities;

      (2) Cooperative administrative services such as assistance in carrying out procedures to abolish sex and race bias in school programs, fiscal services, grants management services, special education services and transportation services;

      (3) Personnel services such as certification/registration services;

      (4) Learning resource services such as audio visual aids;

      (5) Cooperative curriculum services such as health promotion and health education services, in-service training, workshops and assessment; ((and))

      (6) Professional development services identified by statute or the omnibus appropriations act; and

      (7) Special needs of local education agencies.

      NEW SECTION. Sec. 9. A new section is added to chapter 28A.415 RCW to read as follows:

      MATHEMATICS AND SCIENCE TEACHER PROFESSIONAL DEVELOPMENT. (1) Subject to funds appropriated for this purpose, targeted professional development programs, to be known as learning improvement days, are authorized to further the development of outstanding mathematics, science, and reading teaching and learning opportunities in the state of Washington. The intent of this section is to provide guidance for the learning improvement days in the omnibus appropriations act. The learning improvement days authorized in this section shall not be considered part of the definition of basic education.

      (2) The expected outcomes of these programs are:

      (a) Provision of meaningful, targeted professional development for all teachers in mathematics, science, or reading;

      (b) Increased knowledge and instructional skill for mathematics, science, or reading teachers;

      (c) Increased use of curriculum materials with supporting diagnostic and supplemental materials that align with state standards;

      (d) Skillful guidance for students participating in alternative assessment activities;

      (e) Increased rigor of course offerings especially in mathematics, science, and reading;

      (f) Increased student opportunities for focused, applied mathematics and science classes;

      (g) Increased student success on state achievement measures; and

      (h) Increased student appreciation of the value and uses of mathematics, science, and reading knowledge and exploration of related careers.

      (3) School districts receiving resources under this section shall submit reports to the superintendent of public instruction regarding the use of the funds; how the use of the funds is associated with measurable improvement in the expected outcomes described under subsection (2) of this section; and how other professional development resources and programs authorized in statute or in the omnibus appropriations act contribute to the expected outcomes. The superintendent of public instruction and the office of financial management shall collaborate on required report content and format.

      NEW SECTION. Sec. 10. A new section is added to chapter 28A.415 RCW to read as follows:

      RECRUITING WASHINGTON TEACHERS. (1) The recruiting Washington teachers program is established to recruit and provide training and support for high school students to enter the teaching profession, especially in teacher shortage areas and among under-represented groups and multilingual, multicultural students. The program shall be administered by the professional educator standards board.

      (2) The program shall consist of the following components:

      (a) Targeted recruitment of diverse students, including but not limited to students from under-represented groups and multilingual, multicultural students in grades nine through twelve through outreach and communication strategies. The focus of recruitment efforts shall be on encouraging students to consider and explore becoming future teachers in mathematics, science, bilingual education, special education, and English as a second language. Program enrollment is not limited to students from under-represented groups or multilingual, multicultural students;

      (b) A curriculum that provides future teachers with opportunities to observe classroom instruction at all grade levels; includes preteaching internships at all grade levels with a focus on shortage areas; and covers such topics as lesson planning, learning styles, student learning data and information, the achievement gap, cultural competency, and education policy;

      (c) Academic and community support services for students to help them overcome possible barriers to becoming future teachers, such as supplemental tutoring; advising on college readiness, applications, and financial aid processes; and mentoring; and

      (d) Future teacher camps held on college campuses where students can attend workshops and interact with college faculty and current teachers.

      (3) As part of its administration of the program, the professional educator standards board shall:

      (a) Develop the curriculum and program guidelines in consultation with an advisory group of teachers, representatives of teacher preparation programs, teacher candidates, students, and representatives of diverse communities;

      (b) Subject to funds appropriated for this purpose, allocate grant funds through a competitive process to partnerships of high schools, teacher preparation programs, and community-based organizations to design and deliver programs that include the components under subsection (2) of this section; and

      (c) Conduct an evaluation of the effectiveness of current strategies and programs for recruiting diverse teachers, especially multilingual, multicultural teachers, in Washington and in other states. The board shall use the findings from the evaluation to revise the recruiting Washington teachers program as necessary and make other recommendations to teacher preparation programs or the legislature.

      NEW SECTION. Sec. 11. The following acts or parts of acts are each repealed:

      (1) RCW 28A.300.350 (Excellence in mathematics training program) and 1999 c 347 s 2;

      (2) RCW 28A.415.200 (Minority teacher recruitment program--Intent) and 1989 c 146 s 1; and

      (3) RCW 28A.415.205 (Minority teacher recruitment program) and 2005 c 497 s 211, 1991 c 238 s 75, & 1989 c 146 s 2.

      NEW SECTION. Sec. 12. Captions used in this act are not any part of the law."

      Correct the title.

and the same are herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Tom moved that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 5955.

      Senator Tom spoke in favor of the motion.

      Senator Holmquist spoke against the motion.

MOTION

The President declared the question before the Senate to be the motion by Senator Tom that the Senate concur in the House amendment(s) to Second Substitute Senate Bill No. 5955.

The motion by Senator Tom carried and the Senate concurred in the House amendment(s) to Second Substitute Senate Bill No. 5955 by voice vote.

The President declared the question before the Senate to be the final passage of Second Substitute Senate Bill No. 5955, as amended by the House.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5955, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 34; Nays, 11; Absent, 3; Excused, 1.

      Voting yea: Senators Benton, Berkey, Carrell, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Hobbs, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Prentice, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Shin, Spanel, Tom and Weinstein - 34

      Voting nay: Senators Brandland, Clements, Delvin, Hatfield, Hewitt, Holmquist, Honeyford, Sheldon, Stevens, Swecker and Zarelli - 11

      Absent: Senators Brown, Poulsen and Pridemore - 3

      Excused: Senator Kohl-Welles - 1

SECOND SUBSTITUTE SENATE BILL NO. 5955, 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 Regala, Senators Brown, Poulsen and Pridemore were excused.

MESSAGE FROM THE HOUSE

April 18, 2007

MR. PRESIDENT:

      The House refuses to concur in the Senate amendment(s) to SECOND SUBSTITUTE HOUSE BILL NO. 1277 and asks Senate to recede therefrom.

and the same is herewith transmitted.

RICHARD NAFZIGER, Chief Clerk

MOTION

Senator Kilmer moved that the Senate recede from its position in the Senate amendment(s) to Second Substitute House Bill No. 1277.

      The President declared the question before the Senate to be motion by Senator Kilmer that the Senate recede from its position in the Senate amendment(s) to Second Substitute House Bill No. 1277.

The motion by Senator Kilmer carried and the Senate receded from its position in the Senate amendment(s) to Second Substitute House Bill No. 1277.

MOTION

On motion of Senator Kilmer, the rules were suspended and Second Substitute House Bill No. 1277 was returned to second reading for the purposes of amendment.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 1277, by House Committee on Finance (originally sponsored by Representatives Kelley, Simpson, Wood, P. Sullivan, Conway, Kenney, Ericks, Rolfes and Morrell)

      Expanding competitive local infrastructure financing tools projects.

      The measure was read the second time.

MOTION

      Senator Kilmer moved that the following striking amendment by Senator Prentice be adopted:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 39.102.020 and 2006 c 181 s 102 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Annual state contribution limit" means ((five)) seven million five hundred thousand dollars statewide per fiscal year.

      (2) "Assessed value" means the valuation of taxable real property as placed on the last completed assessment roll.

      (3) "Base year" means the first calendar year following the ((creation of a revenue development area. For a local government that meets the requirements of RCW 39.102.040(2), "base year" is the calendar year after it amends its ordinance as provided in RCW 39.102.040(2))) calendar year in which a sponsoring local government, and any cosponsoring local government, receives approval by the board for a project award, provided that the approval is granted before October 15th. If approval by the board is received on or after October 15th but on or before December 31st, the "base year" is the second calendar year following the calendar year in which a sponsoring local government, and any cosponsoring local government, receives approval by the board for a project award.

      (4) "Board" means the community economic revitalization board under chapter 43.160 RCW.

      (5) "Demonstration project" means one of the following projects:

      (a) Bellingham waterfront redevelopment project;

      (b) Spokane river district project at Liberty Lake; and

      (c) Vancouver riverwest project.

      (6) "Department" means the department of revenue.

       (7) "Fiscal year" means the twelve-month period beginning July 1st and ending the following June 30th.

      (8) "Local excise taxes" means local revenues derived from the imposition of sales and use taxes authorized in RCW 82.14.030 at the tax rate that was in effect at the time the revenue development area was ((created)) approved by the board, except that if a local government reduces the rate of such tax after the revenue development area was ((created)) approved by the board, "local excise taxes" means the local revenues derived from the imposition of the sales and use taxes authorized in RCW 82.14.030 at the lower tax rate.

      (9) "Local excise tax allocation revenue" means the amount of local excise taxes received by the local government during the measurement year from taxable activity within the revenue development area over and above the amount of local excise taxes received by the local government during the base year from taxable activity within the revenue development area, except that:

      (a) If a sponsoring local government ((creates)) adopts a revenue development area and reasonably determines that no activity subject to tax under chapters 82.08 and 82.12 RCW occurred within the boundaries of the revenue development area in the twelve months immediately preceding the ((creation)) approval of the revenue development area ((within the boundaries of the area that became the revenue development area)) by the board, "local excise tax allocation revenue" means the entire amount of local excise taxes received by the sponsoring local government during a calendar year period beginning with the calendar year immediately following the ((creation)) approval of the revenue development area by the board and continuing with each measurement year thereafter; and

      (b) For revenue development areas ((created)) approved by the board in calendar years 2006 and 2007 that do not meet the requirements in (a) of this subsection and if legislation is enacted in this state ((by July 1, 2006,)) during the 2007 legislative session that adopts the sourcing provisions of the streamlined sales and use tax agreement, "local excise tax allocation revenue" means the amount of local excise taxes received by the sponsoring local government during the measurement year from taxable activity within the revenue development area over and above an amount of local excise taxes received by the sponsoring local government during the 2007 or 2008 base year, as the case may be, adjusted by the department for any estimated impacts from retail sales and use tax sourcing changes effective ((July 1, 2007)) in 2008. The amount of base year adjustment determined by the department is final.

      (10) "Local government" means any city, town, county, port district, and any federally recognized Indian tribe.

      (11) "Local infrastructure financing" means the use of revenues received from local excise tax allocation revenues, local property tax allocation revenues, ((dedicated)) other revenues from local public sources, and revenues received from the local option sales and use tax authorized in RCW 82.14.475, dedicated to pay either the principal and interest on bonds authorized under RCW 39.102.150 or to pay public improvement costs on a pay-as-you-go basis subject to section 14 of this act, or both.

      (12) "Local property tax allocation revenue" means those tax revenues derived from the receipt of regular property taxes levied on the property tax allocation revenue value and used for local infrastructure financing.

      (13)(a) "Revenues from local public sources" means ((federal and private monetary contributions, amounts of local excise tax allocation revenues, and amounts of local property tax allocation revenues dedicated by participating taxing districts and participating local governments for local infrastructure financing)):

      (i) Amounts of local excise tax allocation revenues and local property tax allocation revenues, dedicated by sponsoring local governments, participating local governments, and participating taxing districts, for local infrastructure financing; and

      (ii) Any other local revenues, except as provided in (b) of this subsection, including revenues derived from federal and private sources.

      (b) Revenues from local public sources do not include any local funds derived from state grants, state loans, or any other state moneys including any local sales and use taxes credited against the state sales and use taxes imposed under chapter 82.08 or 82.12 RCW.

      (14) "Low-income housing" means residential housing for low-income persons or families who lack the means which is necessary to enable them, without financial assistance, to live in decent, safe, and sanitary dwellings, without overcrowding. For the purposes of this subsection, "low income" means income that does not exceed eighty percent of the median family income for the standard metropolitan statistical area in which the revenue development area is located.

      (15) "Measurement year" means a calendar year, beginning with the calendar year following the base year and each calendar year thereafter, that is used annually to measure state and local excise tax allocation revenues.

      (16) "Ordinance" means any appropriate method of taking legislative action by a local government.

      (17) "Participating local government" means a local government having a revenue development area within its geographic boundaries that has entered into a written agreement with a sponsoring local government as provided in RCW 39.102.080 to allow the use of all or some of its local excise tax allocation revenues or other revenues from local public sources dedicated for local infrastructure financing.

      (18) "Participating taxing district" means a local government having a revenue development area within its geographic boundaries that has entered into a written agreement with a sponsoring local government as provided in RCW 39.102.080 to allow the use of some or all of its local property tax allocation revenues or other revenues from local public sources dedicated for local infrastructure financing.

      (19)(a)(i) "Property tax allocation revenue value" means seventy-five percent of any increase in the assessed value of real property in a revenue development area resulting from:

      (A) The placement of new construction, improvements((, or both)) to property, or both, on the assessment roll((s after the revenue development area is created)), where the new construction ((or)) and improvements ((occur entirely after the revenue development area is created)) are initiated after the revenue development area is approved by the board;

      (B) The cost of new housing construction, conversion, and rehabilitation improvements, when such cost is treated as new construction for purposes of chapter 84.55 RCW as provided in RCW 84.14.020, and the new housing construction, conversion, and rehabilitation improvements are initiated after the revenue development area is approved by the board;

      (C) The cost of rehabilitation of historic property, when such cost is treated as new construction for purposes of chapter 84.55 RCW as provided in RCW 84.26.070, and the rehabilitation is initiated after the revenue development area is approved by the board.

      (ii) Increases in the assessed value of real property in a revenue development area resulting from (a)(i)(A) through (C) of this subsection are included in the property tax allocation revenue value in the initial year. These same amounts are also included in the property tax allocation revenue value in subsequent years unless the property becomes exempt from property taxation.

      (b) ((If any new construction added to the assessment rolls consists of entire buildings, "property tax allocation revenue value" includes seventy-five percent of any increase in the assessed value of the buildings in the years following their initial placement on the assessment rolls.

      (c) "Property tax allocation revenue value" does not include any increase in the assessed value of improvements to property or new construction that do not consist of an entire building, occurring after their initial placement on the assessment rolls)) "Property tax allocation revenue value" includes seventy-five percent of any increase in the assessed value of new construction consisting of an entire building in the years following the initial year, unless the building becomes exempt from property taxation.

      (c) Except as provided in (b) of this subsection, "property tax allocation revenue value" does not include any increase in the assessed value of real property after the initial year.

      (d) There is no property tax allocation revenue value if the assessed value of real property in a revenue development area has not increased ((due to new construction or improvements to property occurring after the revenue development area is created)) as a result of any of the reasons specified in (a)(i)(A) through (C) of this subsection.

      (e) For purposes of this subsection, "initial year" means:

      (i) For new construction and improvements to property added to the assessment roll, the year during which the new construction and improvements are initially placed on the assessment roll;

      (ii) For the cost of new housing construction, conversion, and rehabilitation improvements, when such cost is treated as new construction for purposes of chapter 84.55 RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year; and

      (iii) For the cost of rehabilitation of historic property, when such cost is treated as new construction for purposes of chapter 84.55 RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year.

      (20) "Taxing district" means a government entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved revenue development area.

      (21) "Public improvements" means:

      (a) Infrastructure improvements within the revenue development area that include:

      (i) Street, bridge, and road construction and maintenance, including highway interchange construction;

      (ii) Water and sewer system construction and improvements, including wastewater reuse facilities;

      (iii) Sidewalks, traffic controls, and streetlights;

      (iv) Parking, terminal, and dock facilities;

      (v) Park and ride facilities of a transit authority;

      (vi) Park facilities and recreational areas, including trails; and

      (vii) Storm water and drainage management systems;

      (b) Expenditures for facilities and improvements that support affordable housing as defined in RCW 43.63A.510.

      (22) "Public improvement costs" means the cost of: (a) Design, planning, acquisition including land acquisition, site preparation including land clearing, construction, reconstruction, rehabilitation, improvement, and installation of public improvements; (b) demolishing, relocating, maintaining, and operating property pending construction of public improvements; (c) the local government's portion of relocating utilities as a result of public improvements; (d) financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance public improvements, and any necessary reserves for general indebtedness; (e) assessments incurred in revaluing real property for the purpose of determining the property tax allocation revenue base value that are in excess of costs incurred by the assessor in accordance with the revaluation plan under chapter 84.41 RCW, and the costs of apportioning the taxes and complying with this chapter and other applicable law; ((and)) (f) administrative expenses and feasibility studies reasonably necessary and related to these costs((, including related)); and (g) any of the above-described costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of local infrastructure financing to fund the costs of the public improvements.

      (23) "Regular property taxes" means regular property taxes as defined in RCW 84.04.140, except: (a) Regular property taxes levied by public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; (b) regular property taxes levied by the state for the support of the common schools under RCW 84.52.065; and (c) regular property taxes authorized by RCW 84.55.050 that are limited to a specific purpose. "Regular property taxes" do not include excess property tax levies that are exempt from the aggregate limits for junior and senior taxing districts as provided in RCW 84.52.043.

      (24) "Property tax allocation revenue base value" means the assessed value of real property located within a revenue development area for taxes levied in the year in which the revenue development area is ((created)) adopted for collection in the following year, plus one hundred percent of any increase in the assessed value of real property located within a revenue development area that is placed on the assessment rolls after the revenue development area is ((created)) adopted, less the property tax allocation revenue value.

      (25) "Relocating a business" means the closing of a business and the reopening of that business, or the opening of a new business that engages in the same activities as the previous business, in a different location within a one-year period, when an individual or entity has an ownership interest in the business at the time of closure and at the time of opening or reopening. "Relocating a business" does not include the closing and reopening of a business in a new location where the business has been acquired and is under entirely new ownership at the new location, or the closing and reopening of a business in a new location as a result of the exercise of the power of eminent domain.

      (26) "Revenue development area" means the geographic area ((created)) adopted by a sponsoring local government and approved by the board, from which local excise and property tax allocation revenues are derived for local infrastructure financing.

      (27) "Small business" has the same meaning as provided in RCW 19.85.020.

      (28) "Sponsoring local government" means a city, town, or county, and for the purpose of this chapter a federally recognized Indian tribe or any combination thereof, that ((creates)) adopts a revenue development area and applies to the board to use local infrastructure financing.

      (29) "State contribution" means the lesser of:

      (a) One million dollars;

      (b) The state excise tax allocation revenue and state property tax allocation revenue received by the state during the preceding calendar year;

      (c) The total amount of local excise tax allocation revenues, local property tax allocation revenues, and other revenues from local public sources, that are dedicated by a sponsoring local government, any participating local governments, and participating taxing districts, in the preceding calendar year to the payment of principal and interest on bonds issued under RCW 39.102.150 or to pay public improvement costs on a pay-as-you-go basis subject to section 14 of this act, or both; or

      (d) The amount of project award granted by the board in the notice of approval to use local infrastructure financing under RCW 39.102.040.

      (30) "State excise taxes" means revenues derived from state retail sales and use taxes under chapters 82.08 and 82.12 RCW, less the amount of tax distributions from all local retail sales and use taxes, other than the local sales and use taxes authorized by RCW 82.14.475, imposed on the same taxable events that are credited against the state retail sales and use taxes under chapters 82.08 and 82.12 RCW.

      (31) "State excise tax allocation revenue" means the amount of state excise taxes received by the state during the measurement year from taxable activity within the revenue development area over and above the amount of state excise taxes received by the state during the base year from taxable activity within the revenue development area, except that:

      (a) If a sponsoring local government ((creates)) adopts a revenue development area and reasonably determines that no activity subject to tax under chapters 82.08 and 82.12 RCW occurred within the boundaries of the revenue development area in the twelve months immediately preceding the ((creation)) approval of the revenue development area ((within the boundaries of the area that became the revenue development area)) by the board, "state excise tax allocation revenue" means the entire amount of state excise taxes received by the state during a calendar year period beginning with the calendar year immediately following the ((creation)) approval of the revenue development area by the board and continuing with each measurement year thereafter; and

      (b) For revenue development areas ((created)) approved by the board in calendar years 2006 and 2007 that do not meet the requirements in (a) of this subsection and if legislation is enacted in this state ((by July 1, 2006,)) during the 2007 legislative session that adopts the sourcing provisions of the streamlined sales and use tax agreement, "state excise tax allocation revenue" means the amount of state excise taxes received by the state during the measurement year from taxable activity within the revenue development area over and above an amount of state excise taxes received by the state during the 2007 or 2008 base year, as the case may be, adjusted by the department for any estimated impacts from retail sales and use tax sourcing changes effective ((July 1, 2007)) in 2008. The amount of base year adjustment determined by the department is final.

      (32) "State property tax allocation revenue" means those tax revenues derived from the imposition of property taxes levied by the state for the support of common schools under RCW 84.52.065 on the property tax allocation revenue value.

(33) "Real property" has the same meaning as in RCW 84.04.090 and also includes any privately owned improvements located on publicly owned land that are subject to property taxation.

      Sec. 2. RCW 39.102.040 and 2006 c 181 s 202 are each amended to read as follows:

      (1) Prior to applying to the board to use local infrastructure financing, a sponsoring local government shall:

      (a) Designate a revenue development area within the limitations in RCW 39.102.060;

      (b) Certify that the conditions in RCW 39.102.070 are met;

      (c) Complete the process in RCW 39.102.080;

      (d) Provide public notice as required in RCW 39.102.100; and

       (e) Pass an ordinance adopting the revenue development area as required in RCW 39.102.090.

      (2) Any local government that has created an increment area under chapter 39.89 RCW ((that)) and has not issued bonds to finance any public improvement ((shall be)) may apply to the board and have its increment area considered for approval as a revenue development area under this chapter without ((creating)) adopting a new ((increment)) revenue development area under RCW 39.102.090 and 39.102.100 if it amends its ordinance to comply with RCW 39.102.090(1) and otherwise meets the conditions and limitations under this chapter.

      (3) As a condition to imposing a sales and use tax under RCW 82.14.475, a sponsoring local government, including any cosponsoring local government seeking authority to impose a sales and use tax under RCW 82.14.475, must apply to the board and be approved for a project award amount. The application shall be in a form and manner prescribed by the board and include but not be limited to information establishing that the applicant is an eligible candidate to impose the local sales and use tax under RCW 82.14.475, the anticipated effective date for imposing the tax, the estimated number of years that the tax will be imposed, and the estimated amount of tax revenue to be received in each fiscal year that the tax will be imposed. The board shall make available forms to be used for this purpose. As part of the application, each applicant must provide to the board a copy of the ordinance or ordinances creating the revenue development area as required in RCW 39.102.090. A notice of approval to use local infrastructure financing shall contain a project award that represents the maximum amount of state contribution that the applicant, including any cosponsoring local governments, can earn each year that local infrastructure financing is used. The total of all project awards shall not exceed the annual state contribution limit. The determination of a project award shall be made based on information contained in the application and the remaining amount of annual state contribution limit to be awarded. Determination of a project award by the board is final.

      (4)(a) Sponsoring local governments, and any cosponsoring local governments, applying in calendar year 2007 for a competitive project award, must submit completed applications to the board no later than July 1, 2007. By September 15, 2007, in consultation with the department of revenue and the department of community, trade, and economic development, the board shall approve ((qualified)) competitive project((s, up to the annual state contribution limit)) awards from competitive applications submitted by the 2007 deadline. No more than two million five hundred thousand dollars in competitive project awards shall be approved in 2007. For projects not approved by the board in 2007, sponsoring and cosponsoring local governments may apply again to the board in 2008 for approval of a project.

      (b) Sponsoring local governments, and any cosponsoring local governments, applying in calendar year 2008 for a competitive project award, must submit completed applications to the board no later than July 1, 2008. By September 18, 2008, in consultation with the department of revenue and the department of community, trade, and economic development, the board shall approve competitive project awards from competitive applications submitted by the 2008 deadline.

      (c) Except as provided in RCW 39.102.050(2), a total of no more than five million dollars in competitive project awards shall be approved for local infrastructure financing. ((Except as provided in RCW 39.102.050, approvals shall be based on the following criteria))

(d) The project selection criteria and weighting developed prior to the effective date of this act for the application evaluation and approval process shall apply to applications received prior to November 1, 2007. In evaluating applications for a competitive project award after November 1, 2007, the board shall, in consultation with the Washington state economic development commission, develop the relative weight to be assigned to the following criteria:

      (((a))) (i) The ((project)) project's potential to enhance the sponsoring local government's regional and/or international competitiveness;

      (((b))) (ii) The project's ability to encourage mixed use and transit-oriented development and the redevelopment of a geographic area;

      (((c))) (iii) Achieving an overall distribution of projects statewide that reflect geographic diversity;

      (((d))) (iv) The estimated wages and benefits for the project is greater than the average labor market area;

      (((e))) (v) The estimated state and local net employment change over the life of the project;

       (((f))) (vi) The current economic health and vitality of the proposed revenue development area and the contiguous community and the estimated impact of the proposed project on the proposed revenue development area and contiguous community;

      (vii) The estimated state and local net property tax change over the life of the project; ((and

      (g))) (viii) The estimated state and local sales and use tax increase over the life of the project;

      (ix) An analysis that shows that, over the life of the project, neither the local excise tax allocation revenues nor the local property tax allocation revenues will constitute more than eighty percent of the total local funds as described in RCW 39.102.020(29)(c); and

      (x) If a project is located within an urban growth area, evidence that the project utilizes existing urban infrastructure and that the transportation needs of the project will be adequately met through the use of local infrastructure financing or other sources.

      (e)(i) Except as provided in this subsection (4)(e), the board may not approve the use of local infrastructure financing within more than one revenue development area per county.

      (ii) In a county in which the board has approved the use of local infrastructure financing, the use of such financing in additional revenue development areas may be approved, subject to the following conditions:

      (A) The sponsoring local government is located in more than one county; and

      (B) The sponsoring local government designates a revenue development area that comprises portions of a county within which the use of local infrastructure financing has not yet been approved.

      (iii) In a county where the local infrastructure financing tool is authorized under RCW 39.102.050, the board may approve additional use of the local infrastructure financing tool.

      (5) ((A revenue development area is considered created when the sponsoring local government, including any cosponsoring local government, has adopted an ordinance creating the revenue development area and the board has approved the sponsoring local government to use local infrastructure financing. If a sponsoring local government receives approval from the board after the fifteenth day of October to use local infrastructure financing, the revenue development area is considered created in the calendar year following the approval.)) Once the board has approved the sponsoring local government, and any cosponsoring local governments, to use local infrastructure financing, notification ((shall)) must be sent by the board to the sponsoring local government, and any cosponsoring local governments, authorizing the sponsoring local government, and any cosponsoring local governments, to impose the local sales and use tax authorized under RCW 82.14.475, subject to the conditions in RCW 82.14.475.

      Sec. 3. RCW 39.102.050 and 2006 c 181 s 203 are each amended to read as follows:

(1) In addition to a competitive process, demonstration projects are provided to determine the feasibility of the local infrastructure financing tool. Notwithstanding RCW 39.102.040, the board shall approve each demonstration project ((before approving any other application)). Demonstration project applications must be received by the board no later than July 1, 2008. The Bellingham waterfront redevelopment project award shall not exceed one million dollars per year, the Spokane river district project award shall not exceed one million dollars per year, and the Vancouver riverwest project award shall not exceed five hundred thousand dollars per year. The board shall approve by September 15, 2007, demonstration project applications submitted no later than July 1, 2007. The board shall approve by September 18, 2008, demonstration project applications submitted by July 1, 2008.

      (2) If before board approval of the final competitive project award in 2008, a demonstration project has not received approval by the board, the state dollars set aside for the demonstration project in subsection (1) of this section shall be available for the competitive application process. If a demonstration project has received a partial award before the approval of the final competitive project award, the remaining state dollars set aside for the demonstration project in subsection (1) of this section shall be available for the competitive process.

      Sec. 4. RCW 39.102.060 and 2006 c 181 s 204 are each amended to read as follows:

      The designation of a revenue development area is subject to the following limitations:

      (1) The taxable real property within the revenue development area boundaries may not exceed one billion dollars in assessed value at the time the revenue development area is designated;

      (2) The average assessed value per square foot of taxable land within the revenue development area boundaries, as of January 1st of the year the application is submitted to the board under RCW 39.102.040, may not exceed seventy dollars at the time the revenue development area is designated;

      (3) ((No more than one revenue development area may be created in a county)) No revenue development area shall have within its geographic boundaries any part of a hospital benefit zone under chapter 39.100 RCW or any part of another revenue development area created under this chapter;

      (4) A revenue development area is limited to contiguous tracts, lots, pieces, or parcels of land without the creation of islands of property not included in the revenue development area;

      (5) The boundaries may not be drawn to purposely exclude parcels where economic growth is unlikely to occur;

      (6) The public improvements financed through local infrastructure financing must be located in the revenue development area;

      (7) A revenue development area cannot comprise an area containing more than twenty-five percent of the total assessed value of the taxable real property within the boundaries of the sponsoring local government, including any cosponsoring local government, at the time the revenue development area is designated;

      (8) The boundaries of the revenue development area shall not be changed for the time period that local infrastructure financing is used; and

      (9) A revenue development area cannot include any part of an increment area created under chapter 39.89 RCW, except those increment areas created prior to January 1, 2006.

      Sec. 5. RCW 39.102.090 and 2006 c 181 s 207 are each amended to read as follows:

      (1) To ((create)) adopt a revenue development area, a sponsoring local government, and any cosponsoring local government, must adopt an ordinance establishing the revenue development area that:

      (a) Describes the public improvements proposed to be made in the revenue development area;

      (b) Describes the boundaries of the revenue development area, subject to the limitations in RCW 39.102.060;

      (c) Estimates the cost of the proposed public improvements and the portion of these costs to be financed by local infrastructure financing;

      (d) Estimates the time during which local excise tax allocation revenues, local property tax allocation revenues, and other revenues from local public sources are to be used for local infrastructure financing;

      (e) Provides the date when the use of local excise tax allocation revenues and local property tax allocation revenues will commence; and

      (f) Finds that the conditions in RCW 39.102.070 are met and the findings in RCW 39.102.080 are complete.

      (2) The sponsoring local government, and any cosponsoring local government, must hold a public hearing on the proposed financing of the public improvements in whole or in part with local infrastructure financing ((at least thirty days)) before passage of the ordinance establishing the revenue development area. The public hearing may be held by either the governing body of the sponsoring local government and the governing body of any cosponsoring local government, or by a committee of those governing bodies that includes at least a majority of the whole governing body or bodies. The public hearing is subject to the notice requirements in RCW 39.102.100.

      (3) The sponsoring local government, and any cosponsoring local government, shall deliver a certified copy of the adopted ordinance to the county treasurer, the governing body of each participating local government and participating taxing district within which the revenue development area is located, the board, and the department.

      Sec. 6. RCW 39.102.110 and 2006 c 181 s 301 are each amended to read as follows:

      (1) A sponsoring local government or participating local government that has received approval by the board to use local infrastructure financing may use annually its local excise tax allocation revenues to finance public improvements in the revenue development area financed in whole or in part by local infrastructure financing. The use of local excise tax allocation revenues dedicated by participating local governments must cease ((when such allocation revenues are no longer necessary or obligated to pay bonds issued to finance the public improvements in the revenue development area)) on the date specified in the written agreement required in RCW 39.102.080(1), or if no date is specified then the date when the local tax under RCW 82.14.475 expires. Any participating local government is authorized to dedicate local excise tax allocation revenues to the sponsoring local government as authorized in RCW 39.102.080(1).

      (2) A sponsoring local government shall provide the board accurate information describing the geographical boundaries of the revenue development area at the time of application. The information shall be provided in an electronic format or manner as prescribed by the department. The sponsoring local government shall ensure that the boundary information provided to the board and department is kept current.

      (3) In the event a city annexes a county area located within a county-sponsored revenue development area, the city shall remit to the county the portion of the local excise tax allocation revenue that the county would have received had the area not been annexed to the county. The city shall remit such revenues until such time as the bonds issued under RCW 39.102.150 are retired.

      Sec. 7. RCW 39.102.120 and 2006 c 181 s 302 are each amended to read as follows:

      (1) Commencing in the second calendar year following ((the passage of the ordinance creating a revenue development area and authorizing the use of local infrastructure financing)) board approval of a revenue development area, the county treasurer shall distribute receipts from regular taxes imposed on real property located in the revenue development area as follows:

      (a) Each participating taxing district and the sponsoring local government shall receive that portion of its regular property taxes produced by the rate of tax levied by or for the taxing district on the property tax allocation revenue base value for that local infrastructure financing project in the taxing district, or upon the total assessed value of real property in the taxing district, whichever is smaller; and

      (b) The sponsoring local government shall receive an additional portion of the regular property taxes levied by it and by or for each participating taxing district upon the property tax allocation revenue value within the revenue development area. However, if there is no property tax allocation revenue value, the sponsoring local government shall not receive any additional regular property taxes under this subsection (1)(b). The sponsoring local government may agree to receive less than the full amount of the additional portion of regular property taxes under this subsection (1)(b) as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of these tax receipts shall be allocated to the participating taxing districts that levied regular property taxes, or have regular property taxes levied for them, in the revenue development area for collection that year in proportion to their regular tax levy rates for collection that year. The sponsoring local government may request that the treasurer transfer this additional portion of the property taxes to its designated agent. The portion of the tax receipts distributed to the sponsoring local government or its agent under this subsection (1)(b) may only be expended to finance public improvement costs associated with the public improvements financed in whole or in part by local infrastructure financing.

      (2) The county assessor shall allocate any increase in the assessed value of real property occurring in the revenue development area to the property tax allocation revenue value and property tax allocation revenue base value as appropriate. This section does not authorize revaluations of real property by the assessor for property taxation that are not made in accordance with the assessor's revaluation plan under chapter 84.41 RCW or under other authorized revaluation procedures.

      (3) The apportionment of increases in assessed valuation in a revenue development area, and the associated distribution to the sponsoring local government of receipts from regular property taxes that are imposed on the property tax allocation revenue value, must cease when property tax allocation revenues are no longer ((necessary or)) obligated to pay the costs of the public improvements. Any excess local property tax allocation revenues derived from regular property taxes and earnings on these tax allocation revenues, remaining at the time the allocation of tax receipts terminates, must be returned to the county treasurer and distributed to the participating taxing districts that imposed regular property taxes, or had regular property taxes imposed for it, in the revenue development area for collection that year, in proportion to the rates of their regular property tax levies for collection that year.

      (4) The allocation to the revenue development area of portions of the local regular property taxes levied by or for each taxing district upon the property tax allocation revenue value within that revenue development area is declared to be a public purpose of and benefit to each such taxing district.

      (5) The allocation of local property tax allocation revenues pursuant to this section shall not affect or be deemed to affect the rate of taxes levied by or within any taxing district or the consistency of any such levies with the uniformity requirement of Article VII, section 1 of the state Constitution.

      (6) This section does not apply to those revenue development areas that include any part of an increment area created under chapter 39.89 RCW.

      Sec. 8. RCW 82.14.475 and 2006 c 181 s 401 are each amended to read as follows:

      (1) A sponsoring local government, and any cosponsoring local government, that has been approved by the board to use local infrastructure financing may impose a sales and use tax in accordance with the terms of this chapter and subject to the criteria set forth in this section. Except as provided in this section, the tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing jurisdiction of the sponsoring local government or cosponsoring local government. The rate of tax shall not exceed the rate provided in RCW 82.08.020(1), less the aggregate rates of any other local sales and use taxes imposed on the same taxable events that are credited against the state sales and use taxes imposed under chapters 82.08 and 82.12 RCW. The rate of tax may be changed only on the first day of a fiscal year as needed. Notice of rate changes must be provided to the department on the first day of March to be effective on July 1st of the next fiscal year.

      (2) The tax authorized under subsection (1) of this section shall be credited against the state taxes imposed under chapter 82.08 or 82.12 RCW. The department shall perform the collection of such taxes on behalf of the sponsoring local government or cosponsoring local government at no cost to the sponsoring local government or cosponsoring local government and shall remit the taxes as provided in RCW 82.14.060.

      (3)(a) No tax may be imposed under the authority of this section:

      (i) Before July 1, 2008;

      (ii) Before approval by the board under RCW 39.102.040; and

      (iii) ((Except as provided in (b) of this subsection, unless)) Before the sponsoring local government has received ((and dedicated to the payment of bonds authorized in RCW 39.102.150, in whole or in part, both)) local excise tax allocation revenues ((and)), local property tax allocation revenues, or both, during the preceding calendar year.

      (b) ((The requirement to receive local property tax allocation revenues under (a) of this subsection is waived if the revenue development area coincides with or is contained entirely within the boundaries of an increment area adopted by a local government under the authority of chapter 39.89 RCW for the purposes of utilizing community revitalization financing.

      (c))) The tax imposed under this section shall expire when the bonds issued under the authority of RCW 39.102.150 are retired, but not more than twenty-five years after the tax is first imposed.

      (4) An ordinance adopted by the legislative authority of a sponsoring local government or cosponsoring local government imposing a tax under this section shall provide that:

      (a) The tax shall first be imposed on the first day of a fiscal year;

      (b) The cumulative amount of tax received by the sponsoring local government, and any cosponsoring local government, in any fiscal year shall not exceed the amount of the state contribution;

      (c) The tax shall cease to be distributed for the remainder of any fiscal year in which either:

       (i) The amount of tax received by the sponsoring local government, and any cosponsoring local government, equals the amount of the state contribution;

      (ii) The amount of revenue from taxes imposed under this section by all sponsoring and cosponsoring local governments equals the annual state contribution limit; or

      (iii) The amount of tax received by the sponsoring local government equals the amount of project award granted in the approval notice described in RCW 39.102.040;

      (d) ((Except when the requirement to receive local property tax allocation revenues is waived as provided in subsection (3)(b) of this section,)) Neither the local excise tax allocation revenues nor the local property tax allocation revenues ((can be)) may constitute more than eighty percent of the total local funds as described in RCW 39.102.020(29)(c). This requirement applies beginning January 1st of the fifth calendar year after the calendar year in which the sponsoring local government begins allocating local excise tax allocation revenues under RCW 39.102.110;

      (e) The tax shall be distributed again, should it cease to be distributed for any of the reasons provided in (c) of this subsection, at the beginning of the next fiscal year, subject to the restrictions in this section; and

      (f) Any revenue generated by the tax in excess of the amounts specified in (c) of this subsection shall belong to the state of Washington.

      (5) If a county and city cosponsor a revenue development area, the combined rates of the city and county tax shall not exceed the rate provided in RCW 82.08.020(1), less the aggregate rates of any other local sales and use taxes imposed on the same taxable events that are credited against the state sales and use taxes imposed under chapters 82.08 and 82.12 RCW. The combined amount of distributions received by both the city and county may not exceed the state contribution.

      (6) The department shall determine the amount of tax receipts distributed to each sponsoring local government, and any cosponsoring local government, imposing sales and use tax under this section and shall advise a sponsoring or cosponsoring local government when tax distributions for the fiscal year equal the amount of state contribution for that fiscal year as provided in subsection (8) of this section. Determinations by the department of the amount of tax distributions attributable to each sponsoring or cosponsoring local government are final and shall not be used to challenge the validity of any tax imposed under this section. The department shall remit any tax receipts in excess of the amounts specified in subsection (4)(c) of this section to the state treasurer who shall deposit the money in the general fund.

      (7) If a sponsoring or cosponsoring local government fails to comply with RCW 39.102.140, no tax may be distributed in the subsequent fiscal year until such time as the sponsoring or cosponsoring local government complies and the department calculates the state contribution amount for such fiscal year.

      (8) Each year, the amount of taxes approved by the department for distribution to a sponsoring or cosponsoring local government in the next fiscal year shall be equal to the state contribution and shall be no more than the total local funds as described in RCW 39.102.020(29)(c). The department shall consider information from reports described in RCW 39.102.140 when determining the amount of state contributions for each fiscal year. A sponsoring or cosponsoring local government shall not receive, in any fiscal year, more revenues from taxes imposed under the authority of this section than the amount approved annually by the department. The department shall not approve the receipt of more distributions of sales and use tax under this section to a sponsoring or cosponsoring local government than is authorized under subsection (4) of this section.

      (9) The amount of tax distributions received from taxes imposed under the authority of this section by all sponsoring and cosponsoring local governments is limited annually to not more than ((five)) seven million five hundred thousand dollars. ((The tax distributions shall be available to the sponsoring local government, and any cosponsoring local government, imposing a tax under this section only as long as the sponsoring local government has outstanding indebtedness under RCW 39.102.150.))

      (10) The definitions in RCW 39.102.020 apply to this section unless the context clearly requires otherwise.

      (11) If a sponsoring local government is a federally recognized Indian tribe, the distribution of the sales and use tax authorized under this section shall be authorized through an interlocal agreement pursuant to chapter 39.34 RCW.

(12) Subject to section 14 of this act, the tax imposed under the authority of this section may be applied either to provide for the payment of debt service on bonds issued under RCW 39.102.150 by the sponsoring local government or to pay public improvement costs on a pay-as-you-go basis, or both.

      (13) The tax imposed under the authority of this section shall cease to be imposed if the sponsoring local government or cosponsoring local government fails to issue bonds under the authority of RCW 39.102.150 by June 30th of the fifth fiscal year in which the local tax authorized under this section is imposed.

      Sec. 9. RCW 39.102.140 and 2006 c 181 s 403 are each amended to read as follows:

      (1) A sponsoring local government shall provide a report to the board and the department by March 1st of each year. The report shall contain the following information:

      (a) The amount of local excise tax allocation revenues, ((and)) local property tax allocation revenues, other revenues from local public sources, and taxes under RCW 82.14.475((, and revenues from local public sources)) received by the sponsoring local government during the preceding calendar year that were dedicated to pay the public improvements financed in whole or in part with local infrastructure financing, and a summary of how these revenues were expended;

      (b) The names of any businesses locating within the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing;

      (c) The total number of permanent jobs created in the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing;

      (d) The average wages and benefits received by all employees of businesses locating within the revenue development area as a result of the public improvements undertaken by the sponsoring local government and financed in whole or in part with local infrastructure financing; and

      (e) That the sponsoring local government is in compliance with RCW 39.102.070.

      (2) The board shall make a report available to the public and the legislature by June 1st of each year. The report shall include a list of public improvements undertaken by sponsoring local governments and financed in whole or in part with local infrastructure financing and it shall also include a summary of the information provided to the department by sponsoring local governments under subsection (1) of this section.

      Sec. 10. RCW 39.102.150 and 2006 c 181 s 501 are each amended to read as follows:

      (1) A sponsoring local government that has designated a revenue development area and been authorized the use of local infrastructure financing may incur general indebtedness, and issue general obligation bonds, to finance the public improvements and retire the indebtedness in whole or in part from local excise tax allocation revenues, local property tax allocation revenues, and sales and use taxes imposed under the authority of RCW 82.14.475 that it receives, subject to the following requirements:

      (a) The ordinance adopted by the sponsoring local government and authorizing the use of local infrastructure financing indicates an intent to incur this indebtedness and the maximum amount of this indebtedness that is contemplated; and

      (b) The sponsoring local government includes this statement of the intent in all notices required by RCW ((39.102.090)) 39.102.100.

      (2)(a) Except as provided in (b) of this subsection, the general indebtedness incurred under subsection (1) of this section may be payable from other tax revenues, the full faith and credit of the local government, and nontax income, revenues, fees, and rents from the public improvements, as well as contributions, grants, and nontax money available to the local government for payment of costs of the public improvements or associated debt service on the general indebtedness.

      (b) A sponsoring local government that issues bonds under this section shall not pledge any money received from the state of Washington for the payment of such bonds, other than the local sales and use taxes imposed under the authority of RCW 82.14.475 and collected by the department.

      (3) In addition to the requirements in subsection (1) of this section, a sponsoring local government designating a revenue development area and authorizing the use of local infrastructure financing may require the nonpublic participant to provide adequate security to protect the public investment in the public improvement within the revenue development area.

      (4) Bonds issued under this section shall be authorized by ordinance of the governing body of the sponsoring local government and may be issued in one or more series and shall bear such date or dates, be payable upon demand or mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in such form either coupon or registered as provided in RCW 39.46.030, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption with or without premium, be secured in such manner, and have such other characteristics, as may be provided by such ordinance or trust indenture or mortgage issued pursuant thereto.

      (5) The sponsoring local government may annually pay into a fund to be established for the benefit of bonds issued under this section a fixed proportion or a fixed amount of any local excise tax allocation revenues and local property tax allocation revenues derived from property or business activity within the revenue development area containing the public improvements funded by the bonds, such payment to continue until all bonds payable from the fund are paid in full. The local government may also annually pay into the fund established in this section a fixed proportion or a fixed amount of any revenues derived from taxes imposed under RCW 82.14.475, such payment to continue until all bonds payable from the fund are paid in full. Revenues derived from taxes imposed under RCW 82.14.475 are subject to the use restriction in RCW 39.102.130.

      (6) In case any of the public officials of the sponsoring local government whose signatures appear on any bonds or any coupons issued under this chapter shall cease to be such officials before the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such officials had remained in office until such delivery. Any provision of any law to the contrary notwithstanding, any bonds issued under this chapter are fully negotiable.

      (7) Notwithstanding subsections (4) through (6) of this section, bonds issued under this section may be issued and sold in accordance with chapter 39.46 RCW.

      Sec. 11. RCW 39.102.130 and 2006 c 181 s 402 are each amended to read as follows:

      Money collected from the taxes imposed under RCW 82.14.475 ((shall)) may be used only for the purpose of ((principal and interest payments on bonds issued under the authority of RCW 39.102.150)) paying debt service on bonds issued under the authority of RCW 39.102.150 or to pay public improvement costs on a pay-as-you-go basis as provided in section 14 of this act, or both.

      NEW SECTION. Sec. 12. RCW 39.102.180 (General indebtedness, general obligation bonds--Authority--Security) and 2006 c 181 s 504 are each repealed.

      NEW SECTION. Sec. 13. A new section is added to chapter 39.102 RCW to read as follows:

      The department of revenue and the community economic revitalization board may adopt any rules under chapter 34.05 RCW they consider necessary for the administration of this chapter.

      NEW SECTION. Sec. 14. A new section is added to chapter 39.102 RCW to read as follows:

      Local excise tax allocation revenues, local property tax allocation revenues, other revenues from local public sources, that are dedicated to local infrastructure financing, and revenues received from the local option sales and use tax authorized in RCW 82.14.475, may not be used to pay for public improvement costs on a pay-as-you-go basis after the date that the sponsoring local government that issued the bonds as provided in RCW 39.102.150 is required to begin paying debt service on those bonds.

      NEW SECTION. Sec. 15. This act applies retroactively as well as prospectively.

      NEW SECTION. Sec. 16. 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. 17. This act expires June 30, 2039."

      Senator Kilmer spoke in favor of the striking amendment.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senator Prentice to Second Substitute House Bill No. 1277.

      The motion by Senator Kilmer 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 "projects;" strike the remainder of the title and insert "amending RCW 39.102.020, 39.102.040, 39.102.050, 39.102.060, 39.102.090, 39.102.110, 39.102.120, 82.14.475, 39.102.140, 39.102.150, and 39.102.130; adding new sections to chapter 39.102 RCW; creating a new section; repealing RCW 39.102.180; and providing an expiration date."

MOTION

      On motion of Senator Kilmer, the rules were suspended, Second Substitute House Bill No. 1277 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 Kilmer 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. 1277 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 1277 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

      Voting yea: Senators Benton, Berkey, Brandland, Carrell, Clements, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Holmquist, Honeyford, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Prentice, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 45

      Excused: Senators Brown, Kohl-Welles, Poulsen and Pridemore - 4

      SECOND SUBSTITUTE HOUSE BILL NO. 1277 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

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

SECOND READING

      SENATE BILL NO. 6157, by Senator Prentice

      Relating to human services. Revised for 1st Substitute: Changing provisions affecting offenders who are leaving confinement.

MOTION

      On motion of Senator Hargrove, Substitute Senate Bill No. 6157 was substituted for Senate Bill No. 6157 and the substitute bill was placed on the second reading and read the second time.

MOTION

      Senator Hargrove moved that the following striking amendment by Senator Hargrove and others be adopted:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The people of the state of Washington expect to live in safe communities in which the threat of crime is minimized. Attempting to keep communities safe by building more prisons and paying the costs of incarceration has proven to be expensive to taxpayers. Incarceration is a necessary consequence for some offenders, however, the vast majority of those offenders will eventually return to their communities. Many of these former offenders will not have had the opportunity to address the deficiencies that may have contributed to their criminal behavior. Persons who do not have basic literacy and job skills, or who are ill-equipped to make the behavioral changes necessary to successfully function in the community, have a high risk of reoffense. Recidivism represents serious costs to victims, both financial and nonmonetary in nature, and also burdens state and local governments with those offenders who recycle through the criminal justice system.

      The legislature believes that recidivism can be reduced and a substantial cost savings can be realized by utilizing evidence-based, research-based, and promising programs to address offender deficits, developing and better coordinating the reentry efforts of state and local governments and local communities. Research shows that if quality assurances are adhered to, implementing an optimal portfolio of evidence-based programming options for offenders who are willing to take advantage of such programs can have a notable impact on recidivism.

      While the legislature recognizes that recidivism cannot be eliminated and that a significant number of offenders are unwilling or unable to work to develop the tools necessary to successfully reintegrate into society, the interests of the public overall are better served by better preparing offenders while incarcerated, and continuing those efforts for those recently released from prison or jail, for successful, productive, and healthy transitions to their communities. Educational, employment, and treatment opportunities should be designed to address individual deficits and ideally give offenders the ability to function in society. In order to foster reintegration, this act recognizes the importance of a strong partnership between the department of corrections, local governments, law enforcement, social service providers, and interested members of communities across our state.

PART I - COMMUNITY TRANSITION COORDINATION NETWORKS

      NEW SECTION. Sec. 101. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) A "community transition coordination network" is a system of coordination that facilitates partnerships between supervision and service providers. It is anticipated that an offender who is released to the community will be able to utilize a community transition coordination network to be connected directly to the supervision and/or services needed for successful reentry.

      (2) "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 in reducing recidivism for the population.

      (3) An "individual reentry plan" means the plan to prepare an offender for release into the community. A reentry plan is developed collaboratively between the supervising authority and the offender and based on an assessment of the offender using a standardized and comprehensive tool to identify the offenders' risks and needs. An individual reentry plan describes actions that should occur to prepare individual offenders for release from jail or prison and specifies the supervision and/or services he or she will experience in the community, taking into account no contact provisions of the judgment and sentence. An individual reentry plan should be updated throughout the period of an offender's incarceration and supervision to be relevant to the offender's current needs and risks.

       (4) "Local community policing and supervision programs" include probation, work release, jails, and other programs operated by local police, courts, or local correctional agencies.

      (5) "Promising practice" means a practice that presents, based on preliminary information, potential for becoming a research-based or consensus-based practice.

      (6) "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.

      (7) "Supervising authority" means the agency or entity that has the responsibility for supervising an offender.

      NEW SECTION. Sec. 102. (1) Each county or group of counties shall conduct an inventory of the services and resources available in the county or group of counties to assist offenders in reentering the community.

      (2) In conducting its inventory, the county or group of counties should consult with the following:

      (a) The department of corrections, including community corrections officers;

      (b) The department of social and health services in applicable program areas;

      (c) Representatives from county human services departments and, where applicable, multicounty regional support networks;

      (d) Local public health jurisdictions;

      (e) City and county law enforcement;

      (f) Local probation/supervision programs;

      (g) Local community and technical colleges;

      (h) The local worksource center operated under the statewide workforce investment system;

      (i) Faith-based and nonprofit organizations providing assistance to offenders;

      (j) Housing providers;

      (k) Crime victims service providers; and

      (l) Other community stakeholders interested in reentry efforts.

      (3) The inventory must include, but is not limited to:

      (a) A list of programs available through the entities listed in subsection (2) of this section and services currently available in the community for offenders including, but not limited to, housing assistance, employment assistance, education, vocational training, parenting education, financial literacy, treatment for substance abuse, mental health, anger management, life skills training, specialized treatment programs such as batterers treatment and sex offender treatment, and any other service or program that will assist the former offender to successfully transition into the community; and

      (b) An indication of the availability of community representatives or volunteers to assist the offender with his or her transition.

      (4) No later than January 1, 2008, each county or group of counties shall present its inventory to the policy advisory committee convened in section 103(8) of this act.

      NEW SECTION. Sec. 103. (1) The department of community, trade, and economic development shall establish a community transition coordination network pilot program for the purpose of awarding grants to counties or groups of counties for implementing coordinated reentry efforts for offenders returning to the community. Grant awards are subject to the availability of amounts appropriated for this specific purpose.

      (2) By September 1, 2007, the Washington state institute for public policy shall, in consultation with the department of community, trade, and economic development, develop criteria for the counties in conducting its evaluation as directed by subsection (6)(c) of this section.

      (3) Effective February 1, 2008, any county or group of counties may apply for participation in the community transition coordination network pilot program by submitting a proposal for a community transition coordination network.

      (4) A proposal for a community transition coordination network initiated under this section must be collaborative in nature and must seek locally appropriate evidence-based or research-based solutions and promising practices utilizing the participation of public and private entities or programs to support successful, community-based offender reentry.

      (5) In developing a proposal for a community transition coordination network, counties or groups of counties and the department of corrections shall collaborate in addressing:

       (a) Efficiencies that may be gained by sharing space or resources in the provision of reentry services to offenders;

      (b) Mechanisms for communication of information about offenders, including the feasibility of shared access to databases;

      (c) Partnerships to establish neighborhood corrections initiatives as defined in section 302 of this act.

      (6) A proposal for a community transition coordination network must include:

      (a) Descriptions of collaboration and coordination between local community policing and supervision programs and those agencies and entities identified in the inventory conducted pursuant to section 102 of this act to address the risks and needs of offenders under a participating county or city misdemeanant probation or other supervision program including:

      (i) A proposed method of assessing offenders to identify the offenders' risks and needs. Counties and cities are encouraged, where possible, to make use of assessment tools developed by the department of corrections in this regard;

      (ii) A proposal for developing and/or maintaining an individual reentry plan for offenders;

      (iii) Connecting offenders to services and resources that meet the offender's needs as identified in his or her individual reentry plan including the identification of community representatives or volunteers that may assist the offender with his or her transition; and

      (iv) The communication of assessment information, individual reentry plans, and service information between parties involved with offender's reentry;

      (b) Mechanisms to provide information to former offenders regarding services available to them in the community regardless of the length of time since the offender's release and regardless of whether the offender was released from prison or jail. Mechanisms shall, at a minimum, provide for:

      (i) Maintenance of the information gathered in section 102 of this act regarding services currently existing within the community that are available to offenders; and

      (ii) Coordination of access to existing services with community providers and provision of information to offenders regarding how to access the various type of services and resources that are available in the community; and

      (c) An evaluation of the county's or group of counties' readiness to implement a community transition coordination network including the social service needs of offenders in general, capacity of local facilities and resources to meet offenders' needs, and the cost to implement and maintain a community transition coordination network for the duration of the pilot project.

      (7) The department of community, trade, and economic development shall review county applications for funding through the community transition coordination network pilot program and, no later than April 1, 2008, shall select up to four counties or groups of counties. In selecting pilot counties or regions, the department shall consider the extent to which the proposal:

      (a) Addresses the requirements set out in subsection (6) of this section;

      (b) Proposes effective partnerships and coordination between local community policing and supervision programs, social service and treatment providers, and the department of corrections' community justice center, if a center is located in the county or region;

      (c) Focuses on measurable outcomes such as increased employment and income, treatment objectives, maintenance of stable housing, and reduced recidivism;

      (d) Contributes to the diversity of pilot programs, considering factors such as geographic location, size of county or region, and reentry services currently available. The department shall ensure that a grant is awarded to at least one rural county or group of counties and at least one county or group of counties where a community justice center operated by the department of corrections is located; and

      (e) Is feasible, given the evaluation of the social service needs of offenders, the existing capacity of local facilities and resources to meet offenders' needs, and the cost to implement a community transition coordination network in the county or group of counties.

      (8) The department of community, trade, and economic development shall convene a policy advisory committee composed of representatives from the senate, the house of representatives, the governor's office of financial management, the department of corrections, to include one representative who is a community corrections officer, the office of crime victims' advocacy, the Washington state association of counties, association of Washington cities, a nonprofit provider of reentry services, and an ex-offender who has discharged the terms of his or her sentence. The advisory committee shall meet no less than annually to receive status reports on the implementation of community transition coordination networks, review annual reports and the pilot project evaluations submitted pursuant to section 105 of this act, and identify evidence-based, research-based, and promising practices for other counties seeking to establish community transition coordination networks.

      (9) Pilot networks established under this section shall extend for a period of four fiscal years, beginning July 1, 2008, and ending June 30, 2012.

      (10) This section expires June 30, 2013.

      NEW SECTION. Sec. 104. (1) Nothing in section 103 of this act is intended to shift the supervising responsibility or sanctioning authority from one government entity to another or give a community transition coordination network oversight responsibility for those activities or allow imposition of civil liability where none existed previously.

      (2) An individual reentry plan may not be used as the basis of liability against local government entities, or its officers or employees.

      NEW SECTION. Sec. 105. (1) It is the intent of the legislature to provide funding for this project.

      (2) Counties receiving state funds must:

      (a) Demonstrate the funds allocated pursuant to this section will be used only for those purposes in establishing and maintaining a community transition coordination network;

      (b) Consult with the Washington state institute for public policy at the inception of the pilot project to refine appropriate outcome measures and data tracking systems;

      (c) Submit to the advisory committee established in section 103(8) of this act an annual progress report by June 30th of each year of the pilot project to report on identified outcome measures and identify evidence-based, research-based, or promising practices;

       (d) Cooperate with the Washington state institute for public policy at the completion of the pilot project to conduct an evaluation of the project.

      (3) The Washington state institute for public policy shall provide direction to counties in refining appropriate outcome measures for the pilot projects and establishing data tracking systems. At the completion of the pilot project, the institute shall conduct an evaluation of the projects including the benefit-cost ratio of service delivery through a community transition coordination network, associated reductions in recidivism, and identification of evidence-based, research-based, or promising practices. The institute shall report to the governor and the legislature with the results of its evaluation no later than December 31, 2012.

      (4) This section expires June 30, 2013.

      NEW SECTION. Sec. 106. (1) The community transition coordination network account is created in the state treasury. The account may receive legislative appropriations, gifts, and grants. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of section 103 of this act.

      (2) This section expires June 30, 2013.

      NEW SECTION. Sec. 107. Nothing in this act creates an entitlement for a county or group of counties to receive funding under the program created in section 103 of this act, nor an obligation for a county or group of counties to maintain a community transition coordination network established pursuant to section 103 of this act upon expiration of state funding.

      Sec. 108. RCW 72.09.300 and 1996 c 232 s 7 are each amended to read as follows:

      (1) Every county legislative authority shall by resolution or ordinance establish a local law and justice council. The county legislative authority shall determine the size and composition of the council, which shall include the county sheriff and a representative of the municipal police departments within the county, the county prosecutor and a representative of the municipal prosecutors within the county, a representative of the city legislative authorities within the county, a representative of the county's superior, juvenile, district, and municipal courts, the county jail administrator, the county clerk, the county risk manager, and the secretary of corrections and his or her designees. Officials designated may appoint representatives.

      (2) A combination of counties may establish a local law and justice council by intergovernmental agreement. The agreement shall comply with the requirements of this section.

      (3) The local law and justice council ((shall develop a local law and justice plan for the county. The council shall design the elements and scope of the plan, subject to final approval by the county legislative authority. The general intent of the plan shall include seeking means to maximize)) may address issues related to:

      (a) Maximizing local resources including personnel and facilities, ((reduce)) reducing duplication of services, and ((share)) sharing resources between local and state government in order to accomplish local efficiencies without diminishing effectiveness((. The plan shall also include a section on jail management. This section may include the following elements:

      (a) A description of current jail conditions, including whether the jail is overcrowded;

      (b) A description of potential alternatives to incarceration;

      (c) A description of current jail resources;

      (d) A description of the jail population as it presently exists and how it is projected to change in the future;

      (e) A description of projected future resource requirements;

      (f) A proposed action plan, which shall include recommendations to maximize resources, maximize the use of intermediate sanctions, minimize overcrowding, avoid duplication of services, and effectively manage the jail and the offender population;

      (g) A list of proposed advisory jail standards and methods to effect periodic quality assurance inspections of the jail;

      (h) A proposed plan to collect, synthesize, and disseminate technical information concerning local criminal justice activities, facilities, and procedures;

      (i) A description of existing and potential services for offenders including employment services, substance abuse treatment, mental health services, and housing referral services.

       (4) The council may propose other elements of the plan, which shall be subject to review and approval by the county legislative authority, prior to their inclusion into the plan.

      (5)));

      (b) Jail management;

      (c) Mechanisms for communication of information about offenders, including the feasibility of shared access to databases; and

      (d) Partnerships between the department and local community policing and supervision programs to facilitate supervision of offenders under the respective jurisdictions of each and timely response to an offender's failure to comply with the terms of supervision.

      (4) The county legislative authority may request technical assistance in ((developing or implementing the plan from)) coordinating services with other units or agencies of state or local government, which shall include the department, the office of financial management, and the Washington association of sheriffs and police chiefs.

      (((6))) (5) Upon receiving a request for assistance from a county, the department may provide the requested assistance.

      (((7))) (6) The secretary may adopt rules for the submittal, review, and approval of all requests for assistance made to the department. ((The secretary may also appoint an advisory committee of local and state government officials to recommend policies and procedures relating to the state and local correctional systems and to assist the department in providing technical assistance to local governments. The committee shall include representatives of the county sheriffs, the police chiefs, the county prosecuting attorneys, the county and city legislative authorities, and the jail administrators. The secretary may contract with other state and local agencies and provide funding in order to provide the assistance requested by counties.

      (8) The department shall establish a base level of state correctional services, which shall be determined and distributed in a consistent manner statewide. The department's contributions to any local government, approved pursuant to this section, shall not operate to reduce this base level of services.

      (9) The council shall establish an advisory committee on juvenile justice proportionality. The council shall appoint the county juvenile court administrator and at least five citizens as advisory committee members. The citizen advisory committee members shall be representative of the county's ethnic and geographic diversity. The advisory committee members shall serve two-year terms and may be reappointed. The duties of the advisory committee include:

      (a) Monitoring and reporting to the sentencing guidelines commission on the proportionality, effectiveness, and cultural relevance of:

      (i) The rehabilitative services offered by county and state institutions to juvenile offenders; and

      (ii) The rehabilitative services offered in conjunction with diversions, deferred dispositions, community supervision, and parole;

      (b) Reviewing citizen complaints regarding bias or disproportionality in that county's juvenile justice system;

      (c) By September 1 of each year, beginning with 1995, submit to the sentencing guidelines commission a report summarizing the advisory committee's findings under (a) and (b) of this subsection.))

      NEW SECTION. Sec. 109. Sections 101 through 107 of this act constitute a new chapter in Title 72 RCW.

PART II - INDIVIDUAL REENTRY PLAN

      NEW SECTION. Sec. 201. Individual reentry plans are intended to be a tool for the department of corrections to identify the needs of an offender. Individual reentry plans are meant to assist the department in targeting programming and services to offenders with the greatest need and to the extent that those services are funded and available. The state cannot meet every need that may have contributed to every offender's criminal proclivities. Further, an individual reentry plan, and the programming resulting from that plan, are not a guarantee that an offender will not recidivate. Rather, the legislature intends that by identifying offender needs and offering programs that have been proven to reduce the likelihood of reoffense, the state will benefit by an overall reduction in recidivism.

      Sec. 202. RCW 72.09.015 and 2004 c 167 s 6 are each amended to read as follows:

      The definitions in this section apply throughout this chapter.

      (1) "Adult basic education" means education or instruction designed to achieve general competence of skills in reading, writing, and oral communication, including English as a second language and preparation and testing services for obtaining a high school diploma or a general equivalency diploma.

      (2) "Base level of correctional services" means the minimum level of field services the department of corrections is required by statute to provide for the supervision and monitoring of offenders.

      (((2))) (3) "Contraband" means any object or communication the secretary determines shall not be allowed to be: (a) Brought into; (b) possessed while on the grounds of; or (c) sent from any institution under the control of the secretary.

      (((3))) (4) "County" means a county or combination of counties.

      (((4))) (5) "Department" means the department of corrections.

      (((5))) (6) "Earned early release" means earned release as authorized by RCW 9.94A.728.

      (((6))) (7) "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 in reducing recidivism for the population.

      (8) "Extended family visit" means an authorized visit between an inmate and a member of his or her immediate family that occurs in a private visiting unit located at the correctional facility where the inmate is confined.

      (((7))) (9) "Good conduct" means compliance with department rules and policies.

      (((8))) (10) "Good performance" means successful completion of a program required by the department, including an education, work, or other program.

      (((9))) (11) "Immediate family" means the inmate's children, stepchildren, grandchildren, great grandchildren, parents, stepparents, grandparents, great grandparents, siblings, and a person legally married to an inmate. "Immediate family" does not include an inmate adopted by another inmate or the immediate family of the adopted or adopting inmate.

      (((10))) (12) "Indigent inmate," "indigent," and "indigency" mean an inmate who has less than a ten-dollar balance of disposable income in his or her institutional account on the day a request is made to utilize funds and during the thirty days previous to the request.

      (((11))) (13) "Individual reentry plan" means the plan to prepare an offender for release into the community. It should be developed collaboratively between the department and the offender and based on an assessment of the offender using a standardized and comprehensive tool to identify the offenders' risks and needs. The individual reentry plan describes actions that should occur to prepare individual offenders for release from prison or jail, specifies the supervision and services they will experience in the community, and describes an offender's eventual discharge to aftercare upon successful completion of supervision. An individual reentry plan is updated throughout the period of an offender's incarceration and supervision to be relevant to the offender's current needs and risks.

      (14) "Inmate" means a person committed to the custody of the department, including but not limited to persons residing in a correctional institution or facility and persons released on furlough, work release, or community custody, and persons received from another state, state agency, county, or federal jurisdiction.

      (((12))) (15) "Privilege" means any goods or services, education or work programs, or earned early release days, the receipt of which are directly linked to an inmate's (a) good conduct; and (b) good performance. Privileges do not include any goods or services the department is required to provide under the state or federal Constitution or under state or federal law.

      (((13))) (16) "Promising practice" means a practice that presents, based on preliminary information, potential for becoming a research-based or consensus-based practice.

      (17) "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.

      (18) "Secretary" means the secretary of corrections or his or her designee.

      (((14))) (19) "Significant expansion" includes any expansion into a new product line or service to the class I business that results from an increase in benefits provided by the department, including a decrease in labor costs, rent, or utility rates (for water, sewer, electricity, and disposal), an increase in work program space, tax advantages, or other overhead costs.

      (((15))) (20) "Superintendent" means the superintendent of a correctional facility under the jurisdiction of the Washington state department of corrections, or his or her designee.

      (((16))) (21) "Unfair competition" means any net competitive advantage that a business may acquire as a result of a correctional industries contract, including labor costs, rent, tax advantages, utility rates (water, sewer, electricity, and disposal), and other overhead costs. To determine net competitive advantage, the correctional industries board shall review and quantify any expenses unique to operating a for-profit business inside a prison.

      (((17))) (22) "Vocational training" or "vocational education" means "vocational education" as defined in RCW 72.62.020.

      (23) "Washington business" means an in-state manufacturer or service provider subject to chapter 82.04 RCW existing on June 10, 2004.

      (((18))) (24) "Work programs" means all classes of correctional industries jobs authorized under RCW 72.09.100.

      NEW SECTION. Sec. 203. A new section is added to chapter 72.09 RCW to read as follows:

      (1) The department of corrections shall develop an individual reentry plan as defined in RCW 72.09.015 for every offender who is committed to the jurisdiction of the department except:

      (a) Offenders who are sentenced to life without the possibility of release or sentenced to death under chapter 10.95 RCW; and

      (b) Offenders who are subject to the provisions of 8 U.S.C. Sec. 1227.

      (2) The individual reentry plan may be one document, or may be a series of individual plans that combine to meet the requirements of this section.

      (3) In developing individual reentry plans, the department shall assess all offenders using standardized and comprehensive tools to identify the criminogenic risks, programmatic needs, and educational and vocational skill levels for each offender. The assessment tool should take into account demographic biases, such as culture, age, and gender, as well as the needs of the offender, including any learning disabilities, substance abuse or mental health issues, and social or behavior deficits.

      (4)(a) The initial assessment shall be conducted as early as sentencing, but, whenever possible, no later than forty-five days of being sentenced to the jurisdiction of the department of corrections.

      (b) The offender's individual reentry plan shall be developed as soon as possible after the initial assessment is conducted, but, whenever possible, no later than sixty days after completion of the assessment, and shall be periodically reviewed and updated as appropriate.

      (5) The individual reentry plan shall, at a minimum, include:

      (a) A plan to maintain contact with the inmate's children and family, if appropriate. The plan should determine whether parenting classes, or other services, are appropriate to facilitate successful reunification with the offender's children and family;

      (b) An individualized portfolio for each offender that includes the offender's education achievements, certifications, employment, work experience, skills, and any training received prior to and during incarceration; and

      (c) A plan for the offender during the period of incarceration through reentry into the community that addresses the needs of the offender including education, employment, substance abuse treatment, mental health treatment, family reunification, and other areas which are needed to facilitate a successful reintegration into the community.

      (6)(a) Prior to discharge of any offender, the department shall:

      (i) Evaluate the offender's needs and, to the extent possible, connect the offender with existing services and resources that meet those needs; and

      (ii) Connect the offender with a community justice center and/or community transition coordination network in the area in which the offender will be residing once released from the correctional system if one exists.

      (b) If the department recommends partial confinement in an offender's individual reentry plan, the department shall maximize the period of partial confinement for the offender as allowed pursuant to RCW 9.94A.728 to facilitate the offender's transition to the community.

       (7) The department shall establish mechanisms for sharing information from individual reentry plans to those persons involved with the offender's treatment, programming, and reentry, when deemed appropriate. When feasible, this information shall be shared electronically.

      (8)(a) In determining the county of discharge for an offender released to community custody or community placement, the department may not approve a residence location that is not in the offender's county of origin unless it is determined by the department that the offender's return to his or her county of origin would be inappropriate considering any court-ordered condition of the offender's sentence, victim safety concerns, negative influences on the offender in the community, or the location of family or other sponsoring persons or organizations that will support the offender.

      (b) If the offender is not returned to his or her county of origin, the department shall provide the law and justice council of the county in which the offender is placed with a written explanation.

      (c) For purposes of this section, the offender's county of origin means the county of the offender's first felony conviction in Washington.

      (9) Nothing in this section creates a vested right in programming, education, or other services.

PART III - PARTIAL CONFINEMENT AND SUPERVISION

      NEW SECTION. Sec. 301. (1) The legislature intends that Washington's work release centers be transformed into residential reentry centers with the capacity to provide or connect offenders with the full range of reentry services to achieve measurable outcomes. The Washington state institute for public policy shall conduct a comprehensive analysis and evaluation of residential reentry centers and work release facilities to identify evidence-based, research-based, and promising practices or programs for the state of Washington and the necessary performance measures that show the greatest quality, effectiveness, and efficiency of the program on key outcomes. The research should include an examination of reentry and work release practices in both urban and rural areas and both inside and outside of the state of Washington. The institute should identify what services or combination of services should be provided to participants of residential reentry centers and the length of time services should be provided to optimize the successful transition of an offender back into society.

      (2) By May 1, 2008, the secretary of the department of corrections, or the secretary's designee, shall convene and chair a work group to review current laws and policy regarding work release.

      (3) In addition to the secretary of the department of corrections, the following shall be members of the work group: A representative appointed by the governor, a community corrections officer, a representative of the Washington association of prosecuting attorneys, a representative of the superior court judges association, a member selected by the Washington association of sheriffs and police chiefs, a representative from the Washington state association of counties, a representative from the association of Washington cities, a representative from contract work release facilities in the state, a representative from state-run work release facilities in the state, a representative from a nonprofit organization that works with former offenders who have completed a work release program, a crime victims' advocate, and a representative from the department of community, trade, and economic development. The secretary may designate a person to serve in his or her place. Members of the work group shall serve without compensation.

      (4) In conducting its review, the work group must review and make recommendations for changes to corrections law and policies to ensure that:

      (a) Work release facilities are transformed into residential reentry centers so that participants are provided with a combination of reentry services that conform to evidence-based, research-based, or promising practices as identified by the institute;

      (b) Residential reentry centers lead to meaningful employment for offenders participating in the program;

      (c) A plan is identified to ensure that residential reentry centers are distributed throughout the state;

      (d) Residential reentry centers are of a size consistent with evidence-based, research-based, or promising practices and appropriate to the community in which they are located;

       (e) Communities are given meaningful avenues for ongoing consultation regarding the establishment and operation of residential reentry centers in their area;

      (f) Victim and community safety concerns are given priority when determining appropriate placement in residential reentry centers for individual offenders;

      (g) Eligibility time to participate in residential reentry centers is sufficient to make it a meaningful experience for offenders; and

      (h) Programs have the necessary performance measures needed to effectively monitor the quality, effectiveness, and efficiency of the programs.

      (5) To the extent practicable, the institute shall cooperate with the work group.

      (6)(a) The institute shall report its results and recommendations to the governor and the legislature no later than November 15, 2007.

      (b) The department of corrections shall report the results and recommendations of the work group to the governor and the legislature no later than November 15, 2008.

      NEW SECTION. Sec. 302. A new section is added to chapter 72.09 RCW to read as follows:

      (1) The department shall continue to establish community justice centers throughout the state for the purpose of providing comprehensive services and monitoring for offenders who are reentering the community.

      (2) For the purposes of this chapter, "community justice center" is defined as a nonresidential facility staffed primarily by the department in which recently released offenders may access services necessary to improve their successful reentry into the community. Such services may include but are not limited to, those listed in the individual reentry plan, mental health, chemical dependency, sex offender treatment, anger management, parenting education, financial literacy, housing assistance, and employment assistance.

      (3) At a minimum, the community justice center shall include:

      (a) A violator program to allow the department to utilize a range of available sanctions for offenders who violate conditions of their supervision;

      (b) An employment opportunity program to assist an offender in finding employment; and

       (c) Resources for connecting offenders with services such as treatment, transportation, training, family reunification, and community services.

      (4) In addition to any other programs or services offered by a community justice center, the department shall designate a transition coordinator to facilitate connections between the former offender and the community. The department may designate transition coordination services to be provided by a community transition coordination network pursuant to section 103 of this act if one has been established in the community where the community justice center is located and the department has entered into a memorandum of understanding with the county to share resources.

      (5) The transition coordinator shall provide information to former offenders regarding services available to them in the community regardless of the length of time since the offender's release from the correctional facility. The transition coordinator shall, at a minimum, be responsible for the following:

      (a) Gathering and maintaining information regarding services currently existing within the community that are available to offenders including, but not limited to:

      (i) Programs offered through the department of social and health services, the department of health, the department of licensing, housing authorities, local community and technical colleges, other state or federal entities which provide public benefits, and nonprofit entities;

      (ii) Services such as housing assistance, employment assistance, education, vocational training, parent education, financial literacy, treatment for substance abuse, mental health, anger management, and any other service or program that will assist the former offender to successfully transition into the community;

      (b) Coordinating access to the existing services with the community providers and provide offenders with information regarding how to access the various type of services and resources that are available in the community.

      (6)(a) A minimum of six community justice centers shall be operational by December 1, 2009. The six community justice centers include those in operation on the effective date of this section.

       (b) By December 1, 2011, the department shall establish a minimum of three additional community justice centers within the state.

      (7) In locating new centers, the department shall:

      (a) Give priority to the counties with the largest population of offenders who were under the jurisdiction of the department of corrections and that do not already have a community justice center;

      (b) Ensure that at least two centers are operational in eastern Washington; and

      (c) Comply with section 303 of this act and all applicable zoning laws and regulations.

      (8) Before beginning the siting or opening of the new community justice center, the department shall:

      (a) Notify the city, if applicable, and the county within which the community justice center is proposed. Such notice shall occur at least sixty days prior to selecting a specific location to provide the services listed in this section;

      (b) Consult with the community providers listed in subsection (5) of this section to determine if they have the capacity to provide services to offenders through the community justice center; and

      (c) Give due consideration to all comments received in response to the notice of the start of site selection and consultation with community providers.

      (9) The department shall make efforts to enter into memoranda of understanding or agreements with the local community policing and supervision programs as defined in section 101 of this act in which the community justice center is located to address:

      (a) Efficiencies that may be gained by sharing space or resources in the provision of reentry services to offenders, including services provided through a community transition coordination network established pursuant to section 103 of this act if a network has been established in the county;

      (b) Mechanisms for communication of information about offenders, including the feasibility of shared access to databases;

      (c) Partnerships to establish neighborhood corrections initiatives between the department of corrections and local police to supervise offenders.

      (i) A neighborhood corrections initiative includes shared mechanisms to facilitate supervision of offenders which may include activities such as joint emphasis patrols to monitor high-risk offenders, service of bench and secretary warrants and detainers, joint field visits, connecting offenders with services, and, where appropriate, directing offenders into sanction alternatives in lieu of incarceration.

      (ii) The agreement must address:

      (A) The roles and responsibilities of police officers and corrections staff participating in the partnership; and

      (B) The amount of corrections staff and police officer time that will be dedicated to partnership efforts.

      NEW SECTION. Sec. 303. A new section is added to chapter 72.09 RCW to read as follows:

      (1) No later than July 1, 2007, and every biennium thereafter starting with the biennium beginning July 1, 2009, the department shall prepare a list of counties and rural multicounty geographic areas in which work release facilities, community justice centers and other community-based correctional facilities are anticipated to be sited during the next three fiscal years and transmit the list to the office of financial management and the counties on the list. The list may be updated as needed.

      (2) In preparing the list, the department shall make substantial efforts to provide for the equitable distribution of work release, community justice centers, or other community-based correctional facilities among counties. The department shall give great weight to the following factors in determining equitable distribution:

      (a) The locations of existing residential facilities owned or operated by, or operated under contract with, the department in each county;

      (b) The number and proportion of adult offenders sentenced to the custody or supervision of the department by the courts of the county or rural multicounty geographic area; and

      (c) The number of adult registered sex offenders classified as level II or III and adult sex offenders registered per thousand persons residing in the county.

      (3) For purposes of this section, "equitable distribution" means siting or locating work release, community justice centers, or other community-based correctional facilities in a manner that reasonably reflects the proportion of offenders sentenced to the custody or supervision of the department by the courts of each county or rural multicounty geographic area designated by the department, and, to the extent practicable, the proportion of offenders residing in particular jurisdictions or communities within such counties or rural multicounty geographic areas. Equitable distribution is a policy goal, not a basis for any legal challenge to the siting, construction, occupancy, or operation of any facility anywhere in the state.

      Sec. 304. RCW 9.94A.728 and 2004 c 176 s 6 are each amended to read as follows:

      No person serving a sentence imposed pursuant to this chapter and committed to the custody of the department shall leave the confines of the correctional facility or be released prior to the expiration of the sentence except as follows:

      (1) Except as otherwise provided for in subsection (2) of this section, the term of the sentence of an offender committed to a correctional facility operated by the department may be reduced by earned release time in accordance with procedures that shall be developed and promulgated by the correctional agency having jurisdiction in which the offender is confined. The earned release time shall be for good behavior and good performance, as determined by the correctional agency having jurisdiction. The correctional agency shall not credit the offender with earned release credits in advance of the offender actually earning the credits. Any program established pursuant to this section shall allow an offender to earn early release credits for presentence incarceration. If an offender is transferred from a county jail to the department, the administrator of a county jail facility shall certify to the department the amount of time spent in custody at the facility and the amount of earned release time. An offender who has been convicted of a felony committed after July 23, 1995, that involves any applicable deadly weapon enhancements under RCW 9.94A.533 (3) or (4), or both, shall not receive any good time credits or earned release time for that portion of his or her sentence that results from any deadly weapon enhancements.

      (a) In the case of an offender convicted of a serious violent offense, or a sex offense that is a class A felony, committed on or after July 1, 1990, and before July 1, 2003, the aggregate earned release time may not exceed fifteen percent of the sentence. In the case of an offender convicted of a serious violent offense, or a sex offense that is a class A felony, committed on or after July 1, 2003, the aggregate earned release time may not exceed ten percent of the sentence.

      (b)(i) In the case of an offender who qualifies under (b)(ii) of this subsection, the aggregate earned release time may not exceed fifty percent of the sentence.

      (ii) An offender is qualified to earn up to fifty percent of aggregate earned release time under this subsection (1)(b) if he or she:

      (A) Is classified in one of the two lowest risk categories under (b)(iii) of this subsection;

      (B) Is not confined pursuant to a sentence for:

      (I) A sex offense;

      (II) A violent offense;

      (III) A crime against persons as defined in RCW 9.94A.411;

      (IV) A felony that is domestic violence as defined in RCW 10.99.020;

      (V) A violation of RCW 9A.52.025 (residential burglary);

      (VI) A violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.401 by manufacture or delivery or possession with intent to deliver methamphetamine; or

      (VII) A violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.406 (delivery of a controlled substance to a minor); ((and))

      (C) Has no prior conviction for:

      (I) A sex offense;

      (II) A violent offense;

      (III) A crime against persons as defined in RCW 9.94A.411;

      (IV) A felony that is domestic violence as defined in RCW 10.99.020;

      (V) A violation of RCW 9A.52.025 (residential burglary);

      (VI) A violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.401 by manufacture or delivery or possession with intent to deliver methamphetamine; or

      (VII) A violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.406 (delivery of a controlled substance to a minor);

       (D) Participates in programming or activities as directed by the offender's individual reentry plan as provided under section 203 of this act to the extent that such programming or activities are made available by the department; and

      (E) Has not committed a new felony after the effective date of this section while under community supervision, community placement, or community custody.

      (iii) For purposes of determining an offender's eligibility under this subsection (1)(b), the department shall perform a risk assessment of every offender committed to a correctional facility operated by the department who has no current or prior conviction for a sex offense, a violent offense, a crime against persons as defined in RCW 9.94A.411, a felony that is domestic violence as defined in RCW 10.99.020, a violation of RCW 9A.52.025 (residential burglary), a violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.401 by manufacture or delivery or possession with intent to deliver methamphetamine, or a violation of, or an attempt, solicitation, or conspiracy to violate, RCW 69.50.406 (delivery of a controlled substance to a minor). The department must classify each assessed offender in one of four risk categories between highest and lowest risk.

      (iv) The department shall recalculate the earned release time and reschedule the expected release dates for each qualified offender under this subsection (1)(b).

      (v) This subsection (1)(b) applies retroactively to eligible offenders serving terms of total confinement in a state correctional facility as of July 1, 2003.

      (vi) This subsection (1)(b) does not apply to offenders convicted after July 1, 2010.

      (c) In no other case shall the aggregate earned release time exceed one-third of the total sentence;

      (2)(a) A person convicted of a sex offense or an offense categorized as a serious violent offense, assault in the second degree, vehicular homicide, vehicular assault, assault of a child in the second degree, any crime against persons where it is determined in accordance with RCW 9.94A.602 that the offender or an accomplice was armed with a deadly weapon at the time of commission, or any felony offense under chapter 69.50 or 69.52 RCW, committed before July 1, 2000, may become eligible, in accordance with a program developed by the department, for transfer to community custody status in lieu of earned release time pursuant to subsection (1) of this section;

      (b) A person convicted of a sex offense, a violent offense, any crime against persons under RCW 9.94A.411(2), or a felony offense under chapter 69.50 or 69.52 RCW, committed on or after July 1, 2000, may become eligible, in accordance with a program developed by the department, for transfer to community custody status in lieu of earned release time pursuant to subsection (1) of this section;

      (c) The department shall, as a part of its program for release to the community in lieu of earned release, require the offender to propose a release plan that includes an approved residence and living arrangement. All offenders with community placement or community custody terms eligible for release to community custody status in lieu of earned release shall provide an approved residence and living arrangement prior to release to the community;

      (d) The department may deny transfer to community custody status in lieu of earned release time pursuant to subsection (1) of this section if the department determines an offender's release plan, including proposed residence location and living arrangements, may violate the conditions of the sentence or conditions of supervision, place the offender at risk to violate the conditions of the sentence, place the offender at risk to reoffend, or present a risk to victim safety or community safety. The department's authority under this section is independent of any court-ordered condition of sentence or statutory provision regarding conditions for community custody or community placement;

      (e) If the department denies transfer to community custody status in lieu of earned early release pursuant to (d) of this subsection, the department may transfer an offender to partial confinement in lieu of earned early release up to three months. The three months in partial confinement is in addition to that portion of the offender's term of confinement that may be served in partial confinement as provided in this section;

      (f) An offender serving a term of confinement imposed under RCW 9.94A.670(4)(a) is not eligible for earned release credits under this section;

       (3) An offender may leave a correctional facility pursuant to an authorized furlough or leave of absence. In addition, offenders may leave a correctional facility when in the custody of a corrections officer or officers;

      (4)(a) The secretary may authorize an extraordinary medical placement for an offender when all of the following conditions exist:

      (i) The offender has a medical condition that is serious enough to require costly care or treatment;

      (ii) The offender poses a low risk to the community because he or she is physically incapacitated due to age or the medical condition; and

      (iii) Granting the extraordinary medical placement will result in a cost savings to the state.

      (b) An offender sentenced to death or to life imprisonment without the possibility of release or parole is not eligible for an extraordinary medical placement.

      (c) The secretary shall require electronic monitoring for all offenders in extraordinary medical placement unless the electronic monitoring equipment interferes with the function of the offender's medical equipment or results in the loss of funding for the offender's medical care. The secretary shall specify who shall provide the monitoring services and the terms under which the monitoring shall be performed.

      (d) The secretary may revoke an extraordinary medical placement under this subsection at any time;

      (5) The governor, upon recommendation from the clemency and pardons board, may grant an extraordinary release for reasons of serious health problems, senility, advanced age, extraordinary meritorious acts, or other extraordinary circumstances;

      (6) No more than the final six months of the ((sentence)) offender's term of confinement may be served in partial confinement designed to aid the offender in finding work and reestablishing himself or herself in the community. This is in addition to that period of earned early release time that may be exchanged for partial confinement pursuant to subsection (2)(e) of this section;

      (7) The governor may pardon any offender;

      (8) The department may release an offender from confinement any time within ten days before a release date calculated under this section; and

      (9) An offender may leave a correctional facility prior to completion of his or her sentence if the sentence has been reduced as provided in RCW 9.94A.870.

      Notwithstanding any other provisions of this section, an offender sentenced for a felony crime listed in RCW 9.94A.540 as subject to a mandatory minimum sentence of total confinement shall not be released from total confinement before the completion of the listed mandatory minimum sentence for that felony crime of conviction unless allowed under RCW 9.94A.540, however persistent offenders are not eligible for extraordinary medical placement.

      Sec. 305. RCW 9.94A.737 and 2005 c 435 s 3 are each amended to read as follows:

      (1) If an offender violates any condition or requirement of community custody, the department may transfer the offender to a more restrictive confinement status to serve up to the remaining portion of the sentence, less credit for any period actually spent in community custody or in detention awaiting disposition of an alleged violation and subject to the limitations of subsection (((2))) (3) of this section.

      (2) If an offender has not completed his or her maximum term of total confinement and is subject to a third violation hearing for any violation of community custody and is found to have committed the violation, the department shall return the offender to total confinement in a state correctional facility to serve up to the remaining portion of his or her sentence, unless it is determined that returning the offender to a state correctional facility would substantially interfere with the offender's ability to maintain necessary community supports or to participate in necessary treatment or programming and would substantially increase the offender's likelihood of reoffending.

      (3)(a) For a sex offender sentenced to a term of community custody under RCW 9.94A.670 who violates any condition of community custody, the department may impose a sanction of up to sixty days' confinement in a local correctional facility for each violation. If the department imposes a sanction, the department shall submit within seventy-two hours a report to the court and the prosecuting attorney outlining the violation or violations and the sanctions imposed.

      (b) For a sex offender sentenced to a term of community custody under RCW 9.94A.710 who violates any condition of community custody after having completed his or her maximum term of total confinement, including time served on community custody in lieu of earned release, the department may impose a sanction of up to sixty days in a local correctional facility for each violation.

      (c) For an offender sentenced to a term of community custody under RCW 9.94A.505(2)(b), 9.94A.650, or 9.94A.715, or under RCW 9.94A.545, for a crime committed on or after July 1, 2000, who violates any condition of community custody after having completed his or her maximum term of total confinement, including time served on community custody in lieu of earned release, the department may impose a sanction of up to sixty days in total confinement for each violation. The department may impose sanctions such as work release, home detention with electronic monitoring, work crew, community restitution, inpatient treatment, daily reporting, curfew, educational or counseling sessions, supervision enhanced through electronic monitoring, or any other sanctions available in the community.

      (d) For an offender sentenced to a term of community placement under RCW 9.94A.705 who violates any condition of community placement after having completed his or her maximum term of total confinement, including time served on community custody in lieu of earned release, the department may impose a sanction of up to sixty days in total confinement for each violation. The department may impose sanctions such as work release, home detention with electronic monitoring, work crew, community restitution, inpatient treatment, daily reporting, curfew, educational or counseling sessions, supervision enhanced through electronic monitoring, or any other sanctions available in the community.

      (((3))) (4) If an offender has been arrested for a new felony offense while under community supervision, community custody, or community placement, the department shall hold the offender in total confinement until a hearing before the department as provided in this section or until the offender has been formally charged for the new felony offense, whichever is earlier. Nothing in this subsection shall be construed as to permit the department to hold an offender past his or her maximum term of total confinement if the offender has not completed the maximum term of total confinement or to permit the department to hold an offender past the offender's term of community supervision, community custody, or community placement.

      (5) The department shall be financially responsible for any portion of the sanctions authorized by this section that are served in a local correctional facility as the result of action by the department.

      (6) If an offender is accused of violating any condition or requirement of community custody, he or she is entitled to a hearing before the department prior to the imposition of sanctions. The hearing shall be considered as offender disciplinary proceedings and shall not be subject to chapter 34.05 RCW. The department shall develop hearing procedures and a structure of graduated sanctions.

      (((4))) (7) The hearing procedures required under subsection (((3))) (6) of this section shall be developed by rule and include the following:

      (a) Hearing officers shall report through a chain of command separate from that of community corrections officers;

      (b) The department shall provide the offender with written notice of the violation, the evidence relied upon, and the reasons the particular sanction was imposed. The notice shall include a statement of the rights specified in this subsection, and the offender's right to file a personal restraint petition under court rules after the final decision of the department;

      (c) The hearing shall be held unless waived by the offender, and shall be electronically recorded. For offenders not in total confinement, the hearing shall be held within fifteen working days, but not less than twenty-four hours, after notice of the violation. For offenders in total confinement, the hearing shall be held within five working days, but not less than twenty-four hours, after notice of the violation;

      (d) The offender shall have the right to: (i) Be present at the hearing; (ii) have the assistance of a person qualified to assist the offender in the hearing, appointed by the hearing officer if the offender has a language or communications barrier; (iii) testify or remain silent; (iv) call witnesses and present documentary evidence; and (v) question witnesses who appear and testify; and

       (e) The sanction shall take effect if affirmed by the hearing officer. Within seven days after the hearing officer's decision, the offender may appeal the decision to a panel of three reviewing officers designated by the secretary or by the secretary's designee. The sanction shall be reversed or modified if a majority of the panel finds that the sanction was not reasonably related to any of the following: (i) The crime of conviction; (ii) the violation committed; (iii) the offender's risk of reoffending; or (iv) the safety of the community.

      (((5))) (8) For purposes of this section, no finding of a violation of conditions may be based on unconfirmed or unconfirmable allegations.

      (((6))) (9) The department shall work with the Washington association of sheriffs and police chiefs to establish and operate an electronic monitoring program for low-risk offenders who violate the terms of their community custody. Between January 1, 2006, and December 31, 2006, the department shall endeavor to place at least one hundred low-risk community custody violators on the electronic monitoring program per day if there are at least that many low-risk offenders who qualify for the electronic monitoring program.

      (((7))) (10) Local governments, their subdivisions and employees, the department and its employees, and the Washington association of sheriffs and police chiefs and its employees shall be immune from civil liability for damages arising from incidents involving low-risk offenders who are placed on electronic monitoring unless it is shown that an employee acted with gross negligence or bad faith.

      NEW SECTION. Sec. 306. (1) A legislative task force on laws related to community custody and community supervision is established.

      (2) The task force shall be composed of fifteen members appointed in the following manner:

      (a) The president of the senate shall appoint one member from each of the two largest caucuses of the senate;

      (b) The speaker of the house of representatives shall appoint one member from each of the two largest caucuses of the house of representatives;

      (c) The governor shall appoint the chair of the task force and the following members:

      (i) A superior court judge;

      (ii) A representative of a prosecutor's association;

       (iii) A defense attorney or representative of an organization of defense attorneys;

      (iv) A representative of local elected officials;

      (v) A sheriff or representative of an organization of sheriffs;

      (vi) A police chief or representative of an organization of police chiefs;

      (vii) A community corrections officer;

      (viii) A crime victim or advocate;

      (d) The following agencies shall also be represented on the task force:

      (i) The attorney general, or the attorney general's designee; and

      (ii) The secretary of the department of corrections, or the secretary's designee.

      (3) The task force shall:

      (a) Convene at the call of the chair by August 1, 2007;

      (b) Review and analyze all statutes of the Revised Code of Washington related to community custody and community supervision of offenders;

      (c) Make specific recommendations, if any, related to sentencing laws that would allow the department of corrections and its community corrections officers to more easily identify statutory requirements associated with an offender's sentence;

      (d) Make specific recommendations, if any, related to community custody and community supervision laws that would allow the department of corrections and its community corrections officers to more easily identify statutory requirements associated with an offender's term of community custody or supervision;

      (e) Make specific recommendations, if any, related to the statutory requirements of the violation hearing process that would enable the department of corrections and its community corrections officers to respond to an offender's behavior by imposing appropriate and timely sanctions when necessary;

      (f) Make specific recommendations related to definitions and language used in the statutes, which would make the statutes easily readable and unambiguous;

      (g) Receive input from the public and interested stakeholders to assist in making suggested changes; and

       (h) Report its findings to the governor and legislature in the form of a final report to be submitted by November 1, 2007.

      (i) The report shall propose specific amendatory language wherever possible, when making recommendations;

      (ii) Each recommendation in the report shall, whenever possible, site to specific evidence-based programs or promising programs which support the recommended change;

      (iii) Each recommendation in the report shall, whenever possible, site to a specific study from the Washington institute for public policy, national institute for justice, bureau of justice assistance, or other academic study supporting the suggested change;

      (iv) The report shall contain a summary of public comment.

      (4) The task force shall use legislative facilities, and staff support shall be provided by the office of financial management, senate committee services, and house of representatives office of program research.

      (5) The Washington institute for public policy, the department of corrections, and the sentencing guidelines commission shall cooperate with the task force and provide all information and support reasonably requested by the task force.

      (6) Nonlegislative members of the task force shall serve without compensation, but shall be reimbursed for travel expenses as provided in RCW 43.03.050 and 43.03.060.

      (7) Legislative members of the task force shall be reimbursed for travel expenses in accordance with RCW 44.04.120.

      (8) This section expires December 31, 2007.

      NEW SECTION. Sec. 307. The department of corrections shall conduct an updated community corrections workload study and report the results of that study to the governor and the legislature on or before November 1, 2007.

PART IV - EDUCATION

      NEW SECTION. Sec. 401. Research and practice show that long-term success in helping offenders prepare for economic self-sufficiency requires strategies that address their education and employment needs. Recent research suggests that a solid academic foundation and employment- and career-focused programs can be cost-effective in reducing the likelihood of reoffense. To this end, the legislature intends that the state strive to provide every inmate with basic academic skills as well as educational and vocational training designed to meet the assessed needs of the offender.

      Nonetheless, it is vital that offenders engaged in educational or vocational training contribute to their own success. An offender should financially contribute to his or her education, particularly postsecondary educational pursuits. The legislature intends to provide more flexibility for offenders in obtaining postsecondary education by allowing third parties to make contributions to the offender's education without mandatory deductions and by creating a loan program. In developing the loan program, the department is encouraged to adopt rules and standards similar to those that apply to students in noninstitutional settings for issues such as applying for a loan, maintaining accountability, and accruing interest on the loan obligation.

      Sec. 402. RCW 72.09.460 and 2004 c 167 s 5 are each amended to read as follows:

      (1) The legislature intends that all inmates be required to participate in department-approved education programs, work programs, or both, unless exempted ((under subsection (4) of)) as specifically provided in this section. Eligible inmates who refuse to participate in available education or work programs available at no charge to the inmates shall lose privileges according to the system established under RCW 72.09.130. Eligible inmates who are required to contribute financially to an education or work program and refuse to contribute shall be placed in another work program. Refusal to contribute shall not result in a loss of privileges.

(2) The legislature recognizes more inmates may agree to participate in education and work programs than are available. The department must make every effort to achieve maximum public benefit by placing inmates in available and appropriate education and work programs.

      (((2) The department shall provide access to a program of education to all offenders who are under the age of eighteen and who have not met high school graduation or general equivalency diploma requirements in accordance with chapter 28A.193 RCW. The program of education established by the department and education provider under RCW 28A.193.020 for offenders under the age of eighteen must provide each offender a choice of curriculum that will assist the inmate in achieving a high school diploma or general equivalency diploma. The program of education may include but not be limited to basic education, prevocational training, work ethic skills, conflict resolution counseling, substance abuse intervention, and anger management counseling. The curriculum may balance these and other rehabilitation, work, and training components.))

      (3)(a) The department shall, to the extent possible and considering all available funds, prioritize its resources to meet the following goals for inmates in the order listed:

      (((a))) (i) Achievement of basic academic skills through obtaining a high school diploma or its equivalent ((and));

      (ii) Achievement of vocational skills necessary for purposes of work programs and for an inmate to qualify for work upon release;

      (((b) Additional work and education programs based on assessments and placements under subsection (5) of this section; and

      (c) Other work and education programs as appropriate.

      (4) The department shall establish, by rule, objective medical standards to determine when an inmate is physically or mentally unable to participate in available education or work programs. When the department determines an inmate is permanently unable to participate in any available education or work program due to a medical condition, the inmate is exempt from the requirement under subsection (1) of this section. When the department determines an inmate is temporarily unable to participate in an education or work program due to a medical condition, the inmate is exempt from the requirement of subsection (1) of this section for the period of time he or she is temporarily disabled. The department shall periodically review the medical condition of all temporarily disabled inmates to ensure the earliest possible entry or reentry by inmates into available programming.

      (5) The department shall establish, by rule, standards for participation in department-approved education and work programs. The standards shall address the following areas:

      (a) Assessment. The department shall assess all inmates for their basic academic skill levels using a professionally accepted method of scoring reading, math, and language skills as grade level equivalents. The department shall determine an inmate's education history, work history, and vocational or work skills. The initial assessment shall be conducted, whenever possible, within the first thirty days of an inmate's entry into the correctional system, except that initial assessments are not required for inmates who are sentenced to life without the possibility of release, assigned to an intensive management unit within the first thirty days after entry into the correctional system, are returning to the correctional system within one year of a prior release, or whose physical or mental condition renders them unable to complete the assessment process. The department shall track and record changes in the basic academic skill levels of all inmates reflected in any testing or assessment performed as part of their education programming;

      (b) Placement. The department shall follow the policies set forth in subsection (1) of this section in establishing criteria for placing inmates in education and work programs. The department shall, to the extent possible, place all inmates whose composite grade level score for basic academic skills is below the eighth grade level in a combined education and work program. The placement criteria shall include at least the following factors)) (iii) Additional work and education programs necessary for compliance with an offender's individual reentry plan under section 203 of this act with the exception of postsecondary education degree programs as provided in section 403 of this act; and

      (iv) Other appropriate vocational, work, or education programs that are not necessary for compliance with an offender's individual reentry plan under section 203 of this act with the exception of postsecondary education degree programs as provided in section 403 of this act.

      (b) If programming is provided pursuant to (a)(i) through (iii) of this subsection, the department shall pay the cost of such programming, including but not limited to books, materials, supplies, and postage costs related to correspondence courses.

      (c) If programming is provided pursuant to (a)(iv) of this subsection, inmates shall be required to pay all or a portion of the costs, including books, fees, and tuition, for participation in any vocational, work, or education program as provided in department policies. Department policies shall include a formula for determining how much an offender shall be required to pay. The formula shall include steps which correlate to an offender average monthly income or average available balance in a personal inmate savings account and which are correlated to a prorated portion or percent of the per credit fee for tuition, books, or other ancillary costs. The formula shall be reviewed every two years. A third party may pay directly to the department all or a portion of costs and tuition for any programming provided pursuant to (a)(iv) of this subsection on behalf of an inmate. Such payments shall not be subject to any of the deductions as provided in this chapter.

      (d) The department may accept any and all donations and grants of money, equipment, supplies, materials, and services from any third party, including but not limited to nonprofit entities, and may receive, utilize, and dispose of same to complete the purposes of this section.

      (e) Any funds collected by the department under (c) and (d) of this subsection and subsections (8) and (9) of this section shall be used solely for the creation, maintenance, or expansion of inmate educational and vocational programs.

      (4) The department shall provide access to a program of education to all offenders who are under the age of eighteen and who have not met high school graduation or general equivalency diploma requirements in accordance with chapter 28A.193 RCW. The program of education established by the department and education provider under RCW 28A.193.020 for offenders under the age of eighteen must provide each offender a choice of curriculum that will assist the inmate in achieving a high school diploma or general equivalency diploma. The program of education may include but not be limited to basic education, prevocational training, work ethic skills, conflict resolution counseling, substance abuse intervention, and anger management counseling. The curriculum may balance these and other rehabilitation, work, and training components.

      (5)(a) In addition to the policies set forth in this section, the department shall consider the following factors in establishing criteria for assessing the inclusion of education and work programs in an inmate's individual reentry plan and in placing inmates in education and work programs:

      (i) An inmate's release date and custody level. An inmate shall not be precluded from participating in an education or work program solely on the basis of his or her release date, except that inmates with a release date of more than one hundred twenty months in the future shall not comprise more than ten percent of inmates participating in a new class I correctional industry not in existence on June 10, 2004;

      (ii) An inmate's education history and basic academic skills;

      (iii) An inmate's work history and vocational or work skills;

      (iv) An inmate's economic circumstances, including but not limited to an inmate's family support obligations; and

      (v) Where applicable, an inmate's prior performance in department-approved education or work programs;

      (((c) Performance and goals.)) (b) The department shall establish, and periodically review, inmate behavior standards and program goals for all education and work programs. Inmates shall be notified of applicable behavior standards and program goals prior to placement in an education or work program and shall be removed from the education or work program if they consistently fail to meet the standards or goals((;

      (d) Financial responsibility. (i) The department shall establish a formula by which inmates, based on their ability to pay, shall pay all or a portion of the costs or tuition of certain programs. Inmates shall, based on the formula, pay a portion of the costs or tuition of participation in:

      (A) Second and subsequent vocational programs associated with an inmate's work programs; and

      (B) An associate of arts or baccalaureate degree program when placement in a degree program is the result of a placement made under this subsection;

      (ii) Inmates shall pay all costs and tuition for participation in:

      (A) Any postsecondary academic degree program which is entered independently of a placement decision made under this subsection; and

      (B) Second and subsequent vocational programs not associated with an inmate's work program.

      Enrollment in any program specified in (d)(ii) of this subsection shall only be allowed by correspondence or if there is an opening in an education or work program at the institution where an inmate is incarcerated and no other inmate who is placed in a program under this subsection will be displaced; and

       (e) Notwithstanding any other provision in this section, an inmate sentenced to life without the possibility of release:

      (i) Shall not be required to participate in education programming; and

      (ii) May receive not more than one postsecondary academic degree in a program offered by the department or its contracted providers.

      If an inmate sentenced to life without the possibility of release requires prevocational or vocational training for a work program, he or she may participate in the training subject to this section.

      (6) The department shall coordinate education and work programs among its institutions, to the greatest extent possible, to facilitate continuity of programming among inmates transferred between institutions. Before transferring an inmate enrolled in a program, the department shall consider the effect the transfer will have on the inmate's ability to continue or complete a program. This subsection shall not be used to delay or prohibit a transfer necessary for legitimate safety or security concerns.

      (7) Before construction of a new correctional institution or expansion of an existing correctional institution, the department shall adopt a plan demonstrating how cable, closed-circuit, and satellite television will be used for education and training purposes in the institution. The plan shall specify how the use of television in the education and training programs will improve inmates' preparedness for available work programs and job opportunities for which inmates may qualify upon release.

      (8) The department shall adopt a plan to reduce the per-pupil cost of instruction by, among other methods, increasing the use of volunteer instructors and implementing technological efficiencies. The plan shall be adopted by December 1996 and shall be transmitted to the legislature upon adoption. The department shall, in adoption of the plan, consider distance learning, satellite instruction, video tape usage, computer-aided instruction, and flexible scheduling of offender instruction.

      (9) Following completion of the review required by section 27(3), chapter 19, Laws of 1995 1st sp. sess. the department shall take all necessary steps to assure the vocation and education programs are relevant to work programs and skills necessary to enhance the employability of inmates upon release)).

(6) Eligible inmates who refuse to participate in available education or work programs available at no charge to the inmates shall lose privileges according to the system established under RCW 72.09.130. Eligible inmates who are required to contribute financially to an education or work program and refuse to contribute shall be placed in another work program. Refusal to contribute shall not result in a loss of privileges.

      (7) The department shall establish, by rule, objective medical standards to determine when an inmate is physically or mentally unable to participate in available education or work programs. When the department determines an inmate is permanently unable to participate in any available education or work program due to a health condition, the inmate is exempt from the requirement under subsection (1) of this section. When the department determines an inmate is temporarily unable to participate in an education or work program due to a medical condition, the inmate is exempt from the requirement of subsection (1) of this section for the period of time he or she is temporarily disabled. The department shall periodically review the medical condition of all inmates with temporary disabilities to ensure the earliest possible entry or reentry by inmates into available programming.

      (8) The department shall establish policies requiring an offender to pay all or a portion of the costs and tuition for any vocational training or postsecondary education program if the offender previously abandoned coursework related to education or vocational training without excuse as defined in rule by the department. Department policies shall include a formula for determining how much an offender shall be required to pay. The formula shall include steps which correlate to an offender average monthly income or average available balance in a personal inmate savings account and which are correlated to a prorated portion or percent of the per credit fee for tuition, books, or other ancillary costs. The formula shall be reviewed every two years. A third party may pay directly to the department all or a portion of costs and tuition for any program on behalf of an inmate under this subsection. Such payments shall not be subject to any of the deductions as provided in this chapter.

      (9) Notwithstanding any other provision in this section, an inmate sentenced to life without the possibility of release, sentenced to death under chapter 10.95 RCW, or subject to the provisions of 8 U.S.C. Sec. 1227:

      (a) Shall not be required to participate in education programming except as may be necessary for the maintenance of discipline and security;

      (b) May receive not more than one postsecondary academic degree in a program offered by the department or its contracted providers;

      (c) May participate in prevocational or vocational training that may be necessary to participate in a work program;

      (d) Shall be subject to the applicable provisions of this chapter relating to inmate financial responsibility for programming except the postsecondary education degree loan program as provided in section 403(3) of this act.

      NEW SECTION. Sec. 403. A new section is added to chapter 72.09 RCW to read as follows:

      (1) The department shall, if funds are appropriated for the specific purpose, implement postsecondary education degree programs within state correctional institutions, including the state correctional institution with the largest population of female inmates. The department shall consider for inclusion in any postsecondary education degree program, any postsecondary education degree program from an accredited community college, college, or university that is part of an associate of arts, baccalaureate, masters of arts, or other graduate degree program.

      (2) Except as provided in subsection (4) of this section, inmates shall be required to pay the costs for participation in any postsecondary education degree programs established under this subsection, including books, fees, tuition, or any other appropriate ancillary costs, by one or more of the following means:

      (a) The inmate who is participating in the postsecondary education degree program shall, during confinement, provide the required payment or payments to the department;

      (b) A third party shall provide the required payment or payments directly to the department on behalf of an inmate, and such payments shall not be subject to any of the deductions as provided in this chapter; or

       (c) The inmate who is participating in the postsecondary education degree program shall provide the required payment or payments to the department using loan funds obtained from the department's postsecondary education degree loan program created pursuant to subsection (3) of this section.

      (3) The department shall, if funds are appropriated for the specific purpose, establish by rule a postsecondary education degree loan program for inmates seeking to participate in available associate or two-year postsecondary education degree programs to prepare the inmate for employment. The department shall establish a process for awarding loans to inmates, including an application process and criteria for awarding loans. The department shall collect repayment as provided in RCW 72.09.450(4). A third party may pay directly to the department all or a portion of any loan on behalf of an inmate. Such payments shall not be subject to any of the deductions as provided in this chapter. Inmates under RCW 72.09.460(9) are not eligible to participate in the postsecondary education degree loan program.

      (4) The department may accept any and all donations and grants of money, equipment, supplies, materials, and services from any third party, including but not limited to nonprofit entities, and may receive, utilize, and dispose of same to provide postsecondary education to inmates.

      (5) Any funds collected by the department under this section and RCW 72.09.450(4) shall be used solely for the creation, maintenance, or expansion of inmate postsecondary education degree programs.

      Sec. 404. RCW 72.09.480 and 2003 c 271 s 3 are each amended to read as follows:

      (1) Unless the context clearly requires otherwise, the definitions in this section apply to this section.

      (a) "Cost of incarceration" means the cost of providing an inmate with shelter, food, clothing, transportation, supervision, and other services and supplies as may be necessary for the maintenance and support of the inmate while in the custody of the department, based on the average per inmate costs established by the department and the office of financial management.

      (b) "Minimum term of confinement" means the minimum amount of time an inmate will be confined in the custody of the department, considering the sentence imposed and adjusted for the total potential earned early release time available to the inmate.

      (c) "Program" means any series of courses or classes necessary to achieve a proficiency standard, certificate, or postsecondary degree.

      (2) When an inmate, except as provided in subsection (7) of this section, receives any funds in addition to his or her wages or gratuities, except settlements or awards resulting from legal action, the additional funds shall be subject to the following deductions and the priorities established in chapter 72.11 RCW:

      (a) Five percent to the public safety and education account for the purpose of crime victims' compensation;

      (b) Ten percent to a department personal inmate savings account;

      (c) Twenty percent to the department to contribute to the cost of incarceration;

      (d) Twenty percent for payment of legal financial obligations for all inmates who have legal financial obligations owing in any Washington state superior court; and

      (e) Fifteen percent for any child support owed under a support order.

      (3) When an inmate, except as provided in subsection (7) of this section, receives any funds from a settlement or award resulting from a legal action, the additional funds shall be subject to the deductions in RCW 72.09.111(1)(a) and the priorities established in chapter 72.11 RCW.

      (4) The amount deducted from an inmate's funds under subsection (2) of this section shall not exceed the department's total cost of incarceration for the inmate incurred during the inmate's minimum or actual term of confinement, whichever is longer.

      (5)(a) The deductions required under subsection (2) of this section shall not apply to funds received by the department from an offender or from a third party on behalf of an offender for payment of ((one fee-based)) education or vocational programs ((that is associated with an inmate's work program or a placement decision made by the department under RCW 72.09.460 to prepare an inmate for work upon release.

      An inmate may, prior to the completion of the fee-based education or vocational program authorized under this subsection, apply to a person designated by the secretary for permission to make a change in his or her program. The secretary, or his or her designee, may approve the application based solely on the following criteria: (a) The inmate has been transferred to another institution by the department for reasons unrelated to education or a change to a higher security classification and the offender's current program is unavailable in the offender's new placement; (b) the inmate entered an academic program as an undeclared major and wishes to declare a major. No inmate may apply for more than one change to his or her major and receive the exemption from deductions specified in this subsection; (c) the educational or vocational institution is terminating the inmate's current program; or (d) the offender's training or education has demonstrated that the current program is not the appropriate program to assist the offender to achieve a placement decision made by the department under RCW 72.09.460 to prepare the inmate for work upon release)) or postsecondary education degree programs as provided in RCW 72.09.460 and section 403 of this act.

(b) The deductions required under subsection (2) of this section shall not apply to funds received by the department from a third party, including but not limited to a nonprofit entity on behalf of the department's education, vocation, or postsecondary education degree programs.

      (6) The deductions required under subsection (2) of this section shall not apply to any money received by the department, on behalf of an inmate, from family or other outside sources for the payment of postage expenses. Money received under this subsection may only be used for the payment of postage expenses and may not be transferred to any other account or purpose. Money that remains unused in the inmate's postage fund at the time of release shall be subject to the deductions outlined in subsection (2) of this section.

      (7) When an inmate sentenced to life imprisonment without possibility of release or parole, or to death under chapter 10.95 RCW, receives any funds in addition to his or her gratuities, except settlements or awards resulting from legal action, the additional funds shall be subject to: Deductions of five percent to the public safety and education account for the purpose of crime victims' compensation, twenty percent to the department to contribute to the cost of incarceration, and fifteen percent to child support payments.

       (8) When an inmate sentenced to life imprisonment without possibility of release or parole, or to death under chapter 10.95 RCW, receives any funds from a settlement or award resulting from a legal action in addition to his or her gratuities, the additional funds shall be subject to: Deductions of five percent to the public safety and education account for the purpose of crime victims' compensation and twenty percent to the department to contribute to the cost of incarceration.

      (9) The interest earned on an inmate savings account created as a result of the plan in section 4, chapter 325, Laws of 1999 shall be exempt from the mandatory deductions under this section and RCW 72.09.111.

      (10) Nothing in this section shall limit the authority of the department of social and health services division of child support from taking collection action against an inmate's moneys, assets, or property pursuant to chapter 26.23, 74.20, or 74.20A RCW including, but not limited to, the collection of moneys received by the inmate from settlements or awards resulting from legal action.

      Sec. 405. RCW 72.09.450 and 1996 c 277 s 1 are each amended to read as follows:

      (1) An inmate shall not be denied access to services or supplies required by state or federal law solely on the basis of his or her inability to pay for them.

      (2) The department shall record all lawfully authorized assessments for services or supplies as a debt to the department. The department shall recoup the assessments when the inmate's institutional account exceeds the indigency standard, and may pursue other remedies to recoup the assessments after the period of incarceration.

      (3) The department shall record as a debt any costs assessed by a court against an inmate plaintiff where the state is providing defense pursuant to chapter 4.92 RCW. The department shall recoup the debt when the inmate's institutional account exceeds the indigency standard and may pursue other remedies to recoup the debt after the period of incarceration.

      (4) The department shall record as a debt any loan recorded against an inmate participating in the postsecondary education degree loan program as provided under section 403 of this act. The department shall attempt to recoup the debt not sooner than two years from an inmate's date of release from total or partial confinement. The loan shall accrue interest from the time of collection at a rate set by the department in rule. The department may pursue collection of the debt as provided in subsection (5) of this section.

      (5) In order to maximize the cost-efficient collection of unpaid offender debt existing after the period of an offender's incarceration, the department is authorized to use the following nonexclusive options: (a) Use the collection services available through the department of general administration, or (b) notwithstanding any provision of chapter 41.06 RCW, contract with collection agencies for collection of the debts. The costs for general administration or collection agency services shall be paid by the debtor. Any contract with a collection agency shall only be awarded after competitive bidding. Factors the department shall consider in awarding a collection contract include but are not limited to a collection agency's history and reputation in the community; and the agency's access to a local database that may increase the efficiency of its collections. The servicing of an unpaid obligation to the department does not constitute assignment of a debt, and no contract with a collection agency may remove the department's control over unpaid obligations owed to the department.

      NEW SECTION. Sec. 406. (1) The department of corrections and the state board for community and technical colleges, in cooperation with the unions representing academic employees in corrections education programs, shall investigate and review methods to optimize educational and vocational programming opportunities to meet the needs of each offender as identified in his or her individual reentry plan while an offender is under the jurisdiction of the department.

      (2) In conducting its review, the department and state board shall consider and make recommendations regarding:

      (a) Technological advances which could serve to expand educational programs and vocational training including, but not limited to, distance learning, satellite instruction, videotape usage, computer aided instruction, and flexible scheduling and also considering the infrastructure, resources, and security that would be needed to implement the program or training. These advances shall be assessed for their ability to provide the most cost-efficient and effective programming for offenders;

      (b) Methods to ensure that educational programs and vocational training are relevant to enhance the employability of offenders upon release; and

      (c) Long-term methods for maintaining channels of communication between the department, state board administration, academic employees, and students.

      (3) The department and state board shall report to the governor and the legislature no later than July 1, 2008.

      NEW SECTION. Sec. 407. (1) The Washington state institute for public policy shall conduct a comprehensive analysis and evaluation of evidence-based, research-based, and promising correctional education programs and the extent to which Washington's programs are in accord with these practices. In gathering data regarding correctional education programs, the institute may consult with academic employees from correctional education programs.

      (2) The institute shall report to the governor and the legislature no later than November 15, 2007.

PART V - EMPLOYMENT BARRIERS

      NEW SECTION. Sec. 501. On or before October 1, 2007, the department of corrections and the department of licensing shall enter into an agreement establishing expedited procedures to assist offenders in obtaining a driver's license or identification card upon their release from a department of corrections' institution.

      NEW SECTION. Sec. 502. (1) The director of the department of licensing, or the director's designee, shall, within existing resources, convene and chair a work group to review and recommend changes to occupational licensing laws and policies to encourage the employment of individuals with criminal convictions while ensuring the safety of the public.

      (2) In addition to the director of the department of licensing, the following shall be members of the work group: A representative from the employment security department, a representative from the department of corrections, a representative from the Washington state association of prosecuting attorneys, and up to five members appointed by the governor from state agencies that issue occupational licenses. The department shall also invite participation from victim service agencies, the state board for community and technical colleges, association of Washington business, nonprofit organizations providing workforce training to released offenders, and legislative staff who provide support to the human services and human services and corrections committees. Members of the work group shall serve without compensation.

      (3) In conducting its review, the work group must:

      (a) Review approaches used by other states and jurisdictions for awarding occupational licenses to those with criminal convictions;

      (b) Develop a process and standards by which the department of licensing and licensing agencies will determine whether a criminal conviction renders an applicant an unsuitable candidate for a license or whether a conviction warrants revocation or suspension of a license previously granted;

      (c) Develop guidelines for potential applicants that reflect the most common or well-known categories of crimes and their relation to specific license types;

      (d) Establish mechanisms for making information regarding the process and guidelines easily accessible to potential applicants with criminal histories.

      (4) The department of licensing shall present a report of its findings and recommendations to the governor and the appropriate committees of the legislature, including any proposed legislation, by November 15, 2008.

      (5) This section expires December 15, 2008.

PART VI - HOUSING

      NEW SECTION. Sec. 601. The legislature finds that, in order to improve the safety of our communities, more housing needs to be made available to offenders returning to the community. The legislature intends to increase the housing available to offenders by providing that landlords who rent to offenders shall be immune from civil liability for damages that may result from the criminal conduct of the tenant.

      NEW SECTION. Sec. 602. A new section is added to chapter 59.18 RCW to read as follows:

      A landlord who rents to an offender is not liable for civil damages arising from the criminal conduct of the tenant. In order for a landlord to be protected from liability as provided under this section, a landlord must:

      (1) Disclose to residents of the property that he or she rents or has a policy of renting to offenders; and

      (2) Take steps to report or halt criminal activity if the landlord has actual knowledge of criminal activity on the landlord's premises.

      NEW SECTION. Sec. 603. A new section is added to chapter 35.82 RCW to read as follows:

      The legislature recognizes that stable, habitable, and supportive housing is a critical factor that increases a previously incarcerated individual's access to treatment and services as well as the likelihood of success in the community. Housing authorities are therefore encouraged to formulate rental policies that are not unduly burdensome to previously incarcerated individuals attempting to reenter the community, particularly when the individual's family may already reside in government subsidized housing.

      NEW SECTION. Sec. 604. A new section is added to chapter 43.185C RCW to read as follows:

      (1) The department of community, trade, and economic development shall establish a pilot program to provide grants to eligible organizations, as described in RCW 43.185.060, to provide transitional housing assistance to offenders who are reentering the community and are in need of housing.

      (2) There shall be a minimum of two pilot programs established in two counties. The pilot programs shall be selected through a request for proposal process and in consultation with the department of corrections. The department shall select the pilot sites by January 1, 2008.

      (3) The pilot program shall:

       (a) Be operated in collaboration with the community justice center existing in the location of the pilot site;

      (b) Offer transitional supportive housing that includes individual support and mentoring available on an ongoing basis, life skills training, and close working relationships with community justice centers and community corrections officers. Supportive housing services can be provided directly by the housing operator, or in partnership with community-based organizations;

      (c) In providing assistance, give priority to offenders who are designated as high risk or high needs as well as those determined not to have a viable release plan by the department of corrections;

      (d) Optimize available funding by utilizing cost-effective community-based shared housing arrangements or other noninstitutional living arrangements; and

      (e) Provide housing assistance for a period of time not to exceed twelve months for a participating offender.

      (4) The department may also use up to twenty percent of the funding appropriated in the operating budget for this section to support the development of additional supportive housing resources for offenders who are reentering the community.

      (5) The department shall:

      (a) Collaborate with the department of corrections in developing criteria to determine who will qualify for housing assistance; and

      (b) Gather data, and report to the legislature by November 1, 2008, on the number of offenders seeking housing, the number of offenders eligible for housing, the number of offenders who receive the housing, and the number of offenders who commit new crimes while residing in the housing to the extent information is available.

      (6) The department of corrections shall collaborate with organizations receiving grant funds to:

      (a) Help identify appropriate housing solutions in the community for offenders;

      (b) Where possible, facilitate an offender's application for housing prior to discharge;

      (c) Identify enhancements to training provided to offenders prior to discharge that may assist an offender in effectively transitioning to the community;

       (d) Maintain communication between the organization receiving grant funds, the housing provider, and corrections staff supervising the offender; and

      (e) Assist the offender in accessing resources and services available through the department of corrections and a community justice center.

      (7) The state, department of community, trade, and economic development, department of corrections, local governments, local housing authorities, eligible organizations as described in RCW 43.185.060, and their employees are not liable for civil damages arising from the criminal conduct of an offender solely due to the placement of an offender in housing provided under this section or the provision of housing assistance.

      (8) Nothing in this section allows placement of an offender into housing without an analysis of the risk the offender may pose to that particular community or other residents.

      Sec. 605. RCW 72.09.111 and 2004 c 167 s 7 are each amended to read as follows:

      (1) The secretary shall deduct taxes and legal financial obligations from the gross wages, gratuities, or workers' compensation benefits payable directly to the inmate under chapter 51.32 RCW, of each inmate working in correctional industries work programs, or otherwise receiving such wages, gratuities, or benefits. The secretary shall also deduct child support payments from the gratuities of each inmate working in class II through class IV correctional industries work programs. The secretary shall develop a formula for the distribution of offender wages, gratuities, and benefits. The formula shall not reduce the inmate account below the indigency level, as defined in RCW 72.09.015.

      (a) The formula shall include the following minimum deductions from class I gross wages and from all others earning at least minimum wage:

      (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

      (ii) Ten percent to a department personal inmate savings account;

      (iii) Twenty percent to the department to contribute to the cost of incarceration; and

       (iv) Twenty percent for payment of legal financial obligations for all inmates who have legal financial obligations owing in any Washington state superior court.

      (b) The formula shall include the following minimum deductions from class II gross gratuities:

      (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

      (ii) Ten percent to a department personal inmate savings account;

      (iii) Fifteen percent to the department to contribute to the cost of incarceration;

      (iv) Twenty percent for payment of legal financial obligations for all inmates who have legal financial obligations owing in any Washington state superior court; and

      (v) Fifteen percent for any child support owed under a support order.

      (c) The formula shall include the following minimum deductions from any workers' compensation benefits paid pursuant to RCW 51.32.080:

      (i) Five percent to the public safety and education account for the purpose of crime victims' compensation;

      (ii) Ten percent to a department personal inmate savings account;

      (iii) Twenty percent to the department to contribute to the cost of incarceration; and

      (iv) An amount equal to any legal financial obligations owed by the inmate established by an order of any Washington state superior court up to the total amount of the award.

      (d) The formula shall include the following minimum deductions from class III gratuities:

      (i) Five percent for the purpose of crime victims' compensation; and

      (ii) Fifteen percent for any child support owed under a support order.

      (e) The formula shall include the following minimum deduction from class IV gross gratuities:

      (i) Five percent to the department to contribute to the cost of incarceration; and

      (ii) Fifteen percent for any child support owed under a support order.

       (2) Any person sentenced to life imprisonment without possibility of release or parole under chapter 10.95 RCW or sentenced to death shall be exempt from the requirement under subsection (1)(a)(ii), (b)(ii), or (c)(ii).

      (3)(a) The department personal inmate savings account, together with any accrued interest, shall only be available to an inmate at the following times:

      (i) The time of his or her release from confinement((, unless));

      (ii) Prior to his or her release from confinement in order to secure approved housing; or

      (iii) When the secretary determines that an emergency exists for the inmate((, at which time the funds can be)).

      (b) If funds are made available pursuant to (a)(ii) or (iii) of this subsection, the funds shall be made available to the inmate in an amount determined by the secretary.

(c) The management of classes I, II, and IV correctional industries may establish an incentive payment for offender workers based on productivity criteria. This incentive shall be paid separately from the hourly wage/gratuity rate and shall not be subject to the specified deduction for cost of incarceration.

      (4)(a) Subject to availability of funds for the correctional industries program, the expansion of inmate employment in class I and class II correctional industries shall be implemented according to the following schedule:

      (i) Not later than June 30, 2005, the secretary shall achieve a net increase of at least two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003;

      (ii) Not later than June 30, 2006, the secretary shall achieve a net increase of at least four hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003;

      (iii) Not later than June 30, 2007, the secretary shall achieve a net increase of at least six hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003;

      (iv) Not later than June 30, 2008, the secretary shall achieve a net increase of at least nine hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003;

      (v) Not later than June 30, 2009, the secretary shall achieve a net increase of at least one thousand two hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003;

      (vi) Not later than June 30, 2010, the secretary shall achieve a net increase of at least one thousand five hundred in the number of inmates employed in class I or class II correctional industries work programs above the number so employed on June 30, 2003.

      (b) Failure to comply with the schedule in this subsection does not create a private right of action.

      (5) In the event that the offender worker's wages, gratuity, or workers' compensation benefit is subject to garnishment for support enforcement, the crime victims' compensation, savings, and cost of incarceration deductions shall be calculated on the net wages after taxes, legal financial obligations, and garnishment.

      (6) The department shall explore other methods of recovering a portion of the cost of the inmate's incarceration and for encouraging participation in work programs, including development of incentive programs that offer inmates benefits and amenities paid for only from wages earned while working in a correctional industries work program.

      (7) The department shall develop the necessary administrative structure to recover inmates' wages and keep records of the amount inmates pay for the costs of incarceration and amenities. All funds deducted from inmate wages under subsection (1) of this section for the purpose of contributions to the cost of incarceration shall be deposited in a dedicated fund with the department and shall be used only for the purpose of enhancing and maintaining correctional industries work programs.

      (8) It shall be in the discretion of the secretary to apportion the inmates between class I and class II depending on available contracts and resources.

      (9) Nothing in this section shall limit the authority of the department of social and health services division of child support from taking collection action against an inmate's moneys, assets, or property pursuant to chapter 26.23, 74.20, or 74.20A RCW.

PART VII - MISCELLANEOUS

      NEW SECTION. Sec. 701. Part headings used in this act are not any part of the law.

      NEW SECTION. Sec. 702. 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."

MOTION

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

      On page 54, after line 7, insert the following:

      NEW SECTION. Sec. 703. (1) The sum of three hundred thousand dollars of the general fund--state appropriation for fiscal year 2008 and three hundred thousand dollars of the general fund--state appropriation for fiscal year 2009 are provided solely to the department of corrections for the purposes of section 305(2) and (4) of this act.

      (2) The sum of nine hundred thousand dollars of the general fund--state appropriation for fiscal year 2008 and nine hundred thousand dollars of the general fund--state appropriation for fiscal year 2009 are provided solely to the department of corrections for the purposes of section 304(1)(b)(ii)(D) and (E) of this act.

      (3) The sum of one hundred thousand dollars of the general fund--state appropriation for fiscal year 2008 and one hundred thousand dollars of the general fund--state appropriation for fiscal year 2009 are provided solely for the department of corrections for the purposes of section 307 of this act.

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

The President declared the question before the Senate to be the adoption of the amendment by Senator Hargrove and others on page 54, after line 7 to the striking amendment to Substitute Senate Bill No. 6157.

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

      The President declared the question before the Senate to be the adoption of the striking amendment by Senator Hargrove and others as amended to Substitute Senate Bill No. 6157.

      Senator Hargrove spoke in favor of the striking amendment as amended.

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

MOTION

      There being no objections, the following title amendments were adopted.

      On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "reducing offender recidivism by increasing access and coordination of offender services in communities through inventories of services and community transition coordination network pilot programs; by improving local law and justice councils to focus their efforts on effective use of correctional resources and coordination between state and local law enforcement and corrections agencies; by developing and implementing individual reentry plans that describe actions and services to prepare offenders for release from jail or prison and require an offender to participate in available programming directed in their plan in order to qualify for fifty percent earned early release; by excluding the use of an individual reentry plan as the basis in civil actions against local governments; by requiring an offender released to community supervision to be returned to the county of origin unless it is inappropriate due to matters of victim safety, lack of family or other supports for the offender in other locations, or negative influences on the offender in that community; by requiring the department of corrections to prepare a list of counties and rural multicounty areas for anticipated siting of work release, community justice centers and other community-based correctional facilities while making substantial efforts to provide for the equitable distribution of the facilities; by studying and identifying evidence-based practices for work release; by increasing the use of effective practices in residential and nonresidential transition facilities for offenders under the jurisdiction of the department of corrections; by permitting partial confinement in lieu of earned early release up to three months; by requiring, upon a finding at a third violation hearing that the offender committed a violation, the return of an offender to total confinement to serve up to the remaining portion of his or her sentence unless it is determined that returning the offender would interfere with the offender's ability to maintain community supports or participate in treatment and would increase the likelihood of reoffending; by requiring an offender arrested for a new felony while under community custody, community placement, or community supervision to be held in confinement until a hearing before the department or until a formal charge is filed, whichever is earlier; by prohibiting an offender under community custody, community placement, or community supervision who is found guilty of a new felony after the effective date of this act from qualifying for fifty percent earned early release; by creating a task force to study and review the current laws and policy regarding community custody and community supervision; by conducting a community corrections workload study; by improving educational opportunities; by providing liability protection for landlords who rent to former offenders and entities participating in the transitional housing program under certain conditions; by encouraging housing authorities to formulate rental policies not overly burdensome to previously incarcerated individuals; by establishing a transitional housing program for offenders in need of stable housing; by allowing funds to be disbursed from a personal inmate savings account in order to assist an offender to secure appropriate housing; by establishing expedited procedures for released offenders to obtain a driver's license or identification card; and by reviewing and recommending changes to occupational licensing laws; amending RCW 72.09.300, 72.09.015, 9.94A.728, 9.94A.737, 72.09.460, 72.09.480, 72.09.450, and 72.09.111; adding new sections to chapter 72.09 RCW; adding a new section to chapter 59.18 RCW; adding a new section to chapter 35.82 RCW; adding a new section to chapter 43.185C RCW; adding a new chapter to Title 72 RCW; creating new sections; and providing expiration dates."

      On page 55, line 33 of the title, after "licensing laws;", insert "by adding appropriations for sections 305(2) and (4), section 304(1)(b)(ii)(D) and (E), and section 307 of this act;"

MOTION

      On motion of Senator Hargrove, the rules were suspended, Engrossed Substitute Senate Bill No. 6157 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Hargrove, Carrell, Brown spoke in favor of passage of the bill.

MOTION

On motion of Senator Delvin, Senator Brandland was excused.

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

      Senator Sheldon spoke on final passage.

      The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6157.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6157 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 4; Absent, 0; Excused, 2.

      Voting yea: Senators Benton, Berkey, Brown, Carrell, Delvin, Eide, Fairley, Franklin, Fraser, Hargrove, Hatfield, Haugen, Hewitt, Hobbs, Jacobsen, Kastama, Kauffman, Keiser, Kilmer, Kline, Marr, McAuliffe, McCaslin, Morton, Murray, Oemig, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schoesler, Shin, Spanel, Stevens, Swecker, Tom, Weinstein and Zarelli - 43

      Voting nay: Senators Clements, Holmquist, Honeyford and Sheldon - 4

      Excused: Senators Brandland and Kohl-Welles - 2

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6157, 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 Prentice: “Thank you Mr. President. A couple of days ago the US Supreme Court struck a ban on partial birth abortion. Some people rejoiced and thought it was the right thing to do but I think I would like to relate to you something that I witnessed when I was a student nurse in a catholic hospital in Arizona. I was a student so, obviously, it was over fifty years ago but I’ve never forgotten it. I was in the delivery room and there was a woman who couldn’t have a baby. It was a baby that had hydrocephalus, which is too much fluid on the brain. It was a breech delivery so the body was already out. So, what had to happen was something had to be, they had to make it able so that could come through the birth canal. The doctor had to stick a needle into the baby's brain and withdraw some of the fluid and at the end the head had to be crushed. Now, for years when I have been asked how I stand on this issue, I’ve always said, ‘This is a decision that should be made by a woman together with her physician within her values.’ This should not ever be a political decision and that is just what happened. I think we need to watch out for this kind of erosion of everyone’s rights.”

MOTION

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

MOTION

      Senator Hargrove moved adoption of the following resolution:

SENATE RESOLUTION

8691

By Senator Hargrove