MORNING SESSION

Senate Chamber, Olympia, Wednesday, March 12, 2014

The Senate was called to order at 9:00 a.m. by the President Pro Tempore. The Secretary called the roll and announced to the President Pro Tempore that all Senators were present with the exception of Senators Hargrove and Ranker.

The Sergeant at Arms Color Guard consisting of Pages Avery Noland and Ahrif McKee, presented the Colors. Prosper Ndabishuriye from Bujumbura, Burundi offered the prayer.

MOTION

On motion of Senator Fain, the reading of the Journal of the previous day was dispensed with and it was approved.

MOTION

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

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House concurred in the Senate amendments to the following bills and passed the bills as amended by the Senate:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2023,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2493,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2519,

SECOND SUBSTITUTE HOUSE BILL NO. 2616,

ENGROSSED HOUSE BILL NO. 2789,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2519 and passed the bill as amended by the Senate.

and the same is herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House has passed:

ENGROSSED SUBSTITUTE SENATE BILL NO. 6570,

and the same is herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House receded from its amendment to SUBSTITUTE SENATE BILL NO. 6129 and passed the bill without the House amendment.

and the same is herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House receded from its amendment to ENGROSSED SUBSTITUTE SENATE BILL NO. 5045 and passed the bill without the House amendment.

and the same is herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House concurred in the Senate amendments to the following bills and passed the bills as amended by the Senate:

SECOND ENGROSSED SUBSTITUTE HOUSE BILL NO. 1117,

SECOND SUBSTITUTE HOUSE BILL NO. 1651,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2580,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2626,

SECOND SUBSTITUTE HOUSE BILL NO. 2627,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The Speaker has signed:

SENATE BILL NO. 5310,

SUBSTITUTE SENATE BILL NO. 5360,

SENATE BILL NO. 5956,

SECOND SUBSTITUTE SENATE BILL NO. 5958,

ENGROSSED SENATE BILL NO. 5964,

SUBSTITUTE SENATE BILL NO. 5969,

SENATE BILL NO. 5999,

SENATE BILL NO. 6035,

SUBSTITUTE SENATE BILL NO. 6046,

SUBSTITUTE SENATE BILL NO. 6074,

SENATE BILL NO. 6093,

SENATE BILL NO. 6115,

SUBSTITUTE SENATE BILL NO. 6124,

SENATE BILL NO. 6201,

SUBSTITUTE SENATE BILL NO. 6216,

SENATE BILL NO. 6219,

SUBSTITUTE SENATE BILL NO. 6226,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6272,

SUBSTITUTE SENATE BILL NO. 6273,

SENATE BILL NO. 6284,

SENATE BILL NO. 6321,

SENATE BILL NO. 6328,

SUBSTITUTE SENATE BILL NO. 6333,

SENATE BILL NO. 6405,

SUBSTITUTE SENATE BILL NO. 6442,

SUBSTITUTE SENATE BILL NO. 6446,

SENATE BILL NO. 6514,

SENATE BILL NO. 6522,

SUBSTITUTE SENATE JOINT MEMORIAL NO. 8007,

SENATE CONCURRENT RESOLUTION NO. 8409,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The Speaker has signed:

SUBSTITUTE HOUSE BILL NO. 1254,

SUBSTITUTE HOUSE BILL NO. 1292,

HOUSE BILL NO. 1360,

SUBSTITUTE HOUSE BILL NO. 1669,

HOUSE BILL NO. 1724,

SECOND SUBSTITUTE HOUSE BILL NO. 1773,

HOUSE BILL NO. 2099,

SUBSTITUTE HOUSE BILL NO. 2102,

HOUSE BILL NO. 2115,

SUBSTITUTE HOUSE BILL NO. 2125,

HOUSE BILL NO. 2130,

SUBSTITUTE HOUSE BILL NO. 2146,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2151,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2155,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2164,

SUBSTITUTE HOUSE BILL NO. 2171,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2246,

HOUSE BILL NO. 2276,

HOUSE BILL NO. 2296,

SUBSTITUTE HOUSE BILL NO. 2310,

SUBSTITUTE HOUSE BILL NO. 2318,

HOUSE BILL NO. 2359,

SUBSTITUTE HOUSE BILL NO. 2363,

HOUSE BILL NO. 2398,

SUBSTITUTE HOUSE BILL NO. 2430,

SUBSTITUTE HOUSE BILL NO. 2433,

SUBSTITUTE HOUSE BILL NO. 2454,

HOUSE BILL NO. 2575,

HOUSE BILL NO. 2700,

HOUSE BILL NO. 2708,

HOUSE BILL NO. 2723,

SUBSTITUTE HOUSE BILL NO. 2739,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

On motion of Senator Fain, the Senate advanced to the fifth order of business.

INTRODUCTION AND FIRST READING

SB 6583 by Senator Baumgartner

AN ACT Relating to intercollegiate sports; adding a new section to chapter 28B.20 RCW; and creating a new section.

Referred to Committee on Higher Education.

SB 6584 by Senators Mullet, Frockt, Hobbs and Liias

AN ACT Relating to authorized health care providers prescribing epinephrine autoinjectors in the name of authorized entities; and adding a new section to chapter 70.54 RCW.

Referred to Committee on Health Care.

MOTION

On motion of Senator Fain, all measures listed on the Introduction and First Reading report were referred to the committees as designated.

MOTION

On motion of Senator Fain, the Senate advanced to the eighth order of business.

The President assumed the chair.

MOTION

Senator O'Ban moved adoption of the following resolution:

SENATE RESOLUTION
8713

By Senators O'Ban, Nelson, Mullet, Dammeier, Hasegawa, Fraser, Conway, Darneille, Hatfield, Eide, Billig, Hewitt, Holmquist Newbry, Honeyford, Kohl-Welles, McCoy, Roach, Cleveland, Keiser, Chase, Schoesler, Rolfes, Rivers, Parlette, Brown, Braun, Ericksen, Liias, Frockt, Pedersen, Angel, King, Hobbs, and Padden

WHEREAS, Medal of Honor and Purple Heart recipient, Staff Sergeant Ty Michael Carter, began his distinguished military career by enlisting in the United States Marine Corps in October 1998; and

WHEREAS, In January 2008, Sergeant Ty Michael Carter continued his military service by enlisting in the United States Army as a cavalry scout, receiving his training at Fort Knox, Kentucky; and

WHEREAS, Beginning in May 2009, Sergeant Carter spent a year stationed in Afghanistan as a soldier in the 3rd Squadron, 61st Cavalry Regiment, 4th Infantry Division; and

WHEREAS, On October 3, 2009, while serving in the Kamdesh district of the Nuristan Province, Sergeant Carter was forced to think on his feet while responding to a barrage of enemy fire, making difficult decisions while under attack during the Battle of Kamdesh; and

WHEREAS, During the attack, more than 300 enemy combatants opened fire, prompting Sergeant Carter to move 100 meters across open ground from his station to a Humvee located at the south battle position, then turn around and run back to retrieve machine gun oil and ammunition and — once more — traverse the distance to gain access to additional supplies; and

WHEREAS, Despite sustaining wounds and facing incalculable odds against hundreds of enemy fighters, Sergeant Carter returned fire using his excellent marksmanship skills to force out the individuals who continued to attack Sergeant Carter and his squadron; and

WHEREAS, Sergeant Carter skillfully maneuvered under the camp's perimeter fence to retrieve additional weapons and ammunition to bring back to his station, then traveled an additional 30 meters to help treat the wounds of a fallen soldier and carry him back to the Humvee. During the remainder of the battle, which lasted late into the evening, Sergeant Carter remained calm through the extreme stress of discovering the bodies of fallen soldiers, while searching for a radio in order to signal for help, and finally returning to the Humvee to seek cover; and

WHEREAS, With the assistance of a fellow soldier, Sergeant Carter carried a wounded soldier a 100-meter distance to a first-aid station and helped to keep his comrade alive until reinforcements arrived to assist in evacuation efforts; and

WHEREAS, As a result of his bravery, Sergeant Carter was awarded the Medal of Honor on August 26, 2013, and was instated into the Pentagon Hall of Heroes on August 27th; and

WHEREAS, Sergeant Carter was stationed at Joint Base Lewis-McChord, in his home state of Washington, in October 2010, becoming assigned to the position of Stryker gunner with the 8th Squadron, 1st Cavalry Regiment, 2nd Stryker Combat Team, 2nd Infantry Division. Sergeant Carter received a second deployment to Afghanistan in October 2012, before returning to Joint Base Lewis-McChord where he continues to serve today; and

WHEREAS, In addition to displays of heroism and gallantry in the United States Army, Sergeant Carter has worked with dedication and a profound sense of hope toward providing further understanding of Posttraumatic Stress Disorder and is working toward greater public understanding of the condition in honor of those who fought bravely in the military and face PTSD-related issues every day;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate offer its sincere gratitude and appreciation to Medal of Honor recipient, Staff Sergeant Ty Michael Carter, who bravely risked his life and fought with unwavering gallantry and fortitude, and give him thanks for his continued service and dedication to the United States of America; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to United States Army Staff Sergeant Ty Michael Carter.

Senators O'Ban and Hobbs spoke in favor of adoption of the resolution.

The President declared the question before the Senate to be the adoption of Senate Resolution No. 8713.

The motion by Senator O'Ban carried and the resolution was adopted by voice vote.

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Staff Sergeant Ty Michael Carter, 7^th Infantry Division, Joint Base Lewis-McChord, U. S. Army who was seated at the rostrum.

With permission of the Senate, business was suspended to allow Staff Sgt. Carter to address the Senate.

REMARKS BY STAFF SERGEANT TY MICHAEL CARTER

Staff Sgt. Ty Michael Carter: “Thank you. Well, I appreciate the kind words of the two gentlemen that spoke today and I thank everyone here for allowing myself and of course my comrades to show up. I am still active duty and because I can’t really carry a rifle anymore one of my primary goals has been to educate not only the services but the American people on the unseen wounds of war. Part of that is also removing the stigma from the military and of course any type of organization that would see somebody seeking help for difficulties in their life as a weakness. What I try to do is remove that. One of the things that has been a big deal for me is, in the education is removing the ‘D’ from post-traumatic stress disorder. And when I normally speak about it I comment that post-traumatic stress is an instinctive reflexive reaction of our body and mind to recall the traumatic incident so you can avoid repeating it. And the simple fact is the most common form of post-traumatic stress is a car accident. So, it’s not a soldier thing, it’s not a man thing, it’s not a woman thing, it’s a people thing. The sooner we understand this the sooner we can allow ourselves to believe it is okay to talk to a friend, talk to a family member, talk to a professional, if we are having difficulty in our lives. The sooner we can get this into our heads and educate ourselves and everybody around us the sooner we can reduce the possibility of suicide, we can increase the product ability of our professional organization, be it the military or a corporation and the sooner we can all actually improve the quality of life of our own lives. So, I’m actually asking in a way that anytime you hear about the post-traumatic stress being a disorder or anytime you see somebody that may need assistance, speak up about it and hopefully we can change the way that not only our services see what’s going but also the entire United State of America. So, for that I say thank you.”

INTRODUCTION OF SPECIAL GUESTS

The President welcomed and introduced Captain R. Cynthia Maluta, 7^th Infantry Division., Joint Base Lewis-McChord; U. S. Army; Sergeant First Class Chad Smith, 7^th Infantry Division, Joint Base Lewis-McChord, U. S. Army; and Ms. Alfie Alvarado-Ramos, Director, Washington State Department of Veteran Affairs who were present in the gallery and recognized by the Senate.

MOTION

On motion of Senator Fain, the Senate reverted to the seventh order of business.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Bailey moved that Elizabeth Chen, Gubernatorial Appointment No. 9251, be confirmed as a member of the State Board for Community and Technical Colleges.

Senators Bailey and Keiser spoke in favor of passage of the motion.

MOTION

On motion of Senator Billig, Senators Hargrove and Ranker were excused.

APPOINTMENT OF ELIZABETH CHEN

The President declared the question before the Senate to be the confirmation of Elizabeth Chen, Gubernatorial Appointment No. 9251, as a member of the State Board for Community and Technical Colleges.

The Secretary called the roll on the confirmation of Elizabeth Chen, Gubernatorial Appointment No. 9251, as a member of the State Board for Community and Technical Colleges and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Excused: Senators Hargrove and Ranker

Elizabeth Chen, Gubernatorial Appointment No. 9251, having received the constitutional majority was declared confirmed as a member of the State Board for Community and Technical Colleges.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Fraser moved that Alberta B Clarkson, Gubernatorial Appointment No. 9253, be confirmed as a member of the Board of Trustees, South Puget Sound Community College District No. 24.

Senator Fraser spoke in favor of the motion.

APPOINTMENT OF ALBERTA B CLARKSON

The President declared the question before the Senate to be the confirmation of Alberta B Clarkson, Gubernatorial Appointment No. 9253, as a member of the Board of Trustees, South Puget Sound Community College District No. 24.

The Secretary called the roll on the confirmation of Alberta B Clarkson, Gubernatorial Appointment No. 9253, as a member of the Board of Trustees, South Puget Sound Community College District No. 24 and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Excused: Senators Hargrove and Ranker

Alberta B Clarkson, Gubernatorial Appointment No. 9253, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, South Puget Sound Community College District No. 24.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Kohl-Welles moved that Carmen W Gayton, Gubernatorial Appointment No. 9268, be confirmed as a member of the Board of Trustees, Seattle, South Seattle, and North Seattle Community Colleges District No. 6.

Senator Kohl-Welles spoke in favor of the motion.

APPOINTMENT OF CARMEN W GAYTON

The President declared the question before the Senate to be the confirmation of Carmen W Gayton, Gubernatorial Appointment No. 9268, as a member of the Board of Trustees, Seattle, South Seattle, and North Seattle Community Colleges District No. 6.

The Secretary called the roll on the confirmation of Carmen W Gayton, Gubernatorial Appointment No. 9268, as a member of the Board of Trustees, Seattle, South Seattle, and North Seattle Community Colleges District No. 6 and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Excused: Senators Hargrove and Ranker

Carmen W Gayton, Gubernatorial Appointment No. 9268, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Seattle, South Seattle, and North Seattle Community Colleges District No. 6.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator McAuliffe moved that Anne Hamilton, Gubernatorial Appointment No. 9271, be confirmed as a member of the Board of Trustees, Lake Washington Institute of Technology Technical College District No. 26.

Senator McAuliffe spoke in favor of the motion.

APPOINTMENT OF ANNE HAMILTON

The President declared the question before the Senate to be the confirmation of Anne Hamilton, Gubernatorial Appointment No. 9271, as a member of the Board of Trustees, Lake Washington Institute of Technology Technical College District No. 26.

The Secretary called the roll on the confirmation of Anne Hamilton, Gubernatorial Appointment No. 9271, as a member of the Board of Trustees, Lake Washington Institute of Technology Technical College District No. 26 and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Excused: Senators Hargrove and Ranker

Anne Hamilton, Gubernatorial Appointment No. 9271, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Lake Washington Institute of Technology Technical College District No. 26.

SIGNED BY THE PRESIDENT

Pursuant to Article 2, Section 32 of the State Constitution and Senate Rule 1(5), the President announced the signing of and thereupon did sign in open session:

SUBSTITUTE HOUSE BILL NO. 1254,

SUBSTITUTE HOUSE BILL NO. 1292,

HOUSE BILL NO. 1360,

SUBSTITUTE HOUSE BILL NO. 1669,

HOUSE BILL NO. 1724,

SECOND SUBSTITUTE HOUSE BILL NO. 1773,

HOUSE BILL NO. 2099,

SUBSTITUTE HOUSE BILL NO. 2102,

HOUSE BILL NO. 2115,

SUBSTITUTE HOUSE BILL NO. 2125,

HOUSE BILL NO. 2130,

SUBSTITUTE HOUSE BILL NO. 2146,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2151,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2155,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2164,

SUBSTITUTE HOUSE BILL NO. 2171,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2246,

HOUSE BILL NO. 2276,

HOUSE BILL NO. 2296,

SUBSTITUTE HOUSE BILL NO. 2310,

SUBSTITUTE HOUSE BILL NO. 2318,

HOUSE BILL NO. 2359,

SUBSTITUTE HOUSE BILL NO. 2363,

HOUSE BILL NO. 2398,

SUBSTITUTE HOUSE BILL NO. 2430,

SUBSTITUTE HOUSE BILL NO. 2433,

SUBSTITUTE HOUSE BILL NO. 2454,

HOUSE BILL NO. 2575,

HOUSE BILL NO. 2700,

HOUSE BILL NO. 2708,

HOUSE BILL NO. 2723,

SUBSTITUTE HOUSE BILL NO. 2739.

SIGNED BY THE PRESIDENT

Pursuant to Article 2, Section 32 of the State Constitution and Senate Rule 1(5), the President announced the signing of and thereupon did sign in open session:

SECOND SUBSTITUTE SENATE BILL NO. 5064,

SENATE BILL NO. 5141,

SENATE BILL NO. 5775,

SUBSTITUTE SENATE BILL NO. 5859,

SUBSTITUTE SENATE BILL NO. 5977,

SUBSTITUTE SENATE BILL NO. 6014,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6016,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6041,

SUBSTITUTE SENATE BILL NO. 6054,

SUBSTITUTE SENATE BILL NO. 6095,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6126,

SENATE BILL NO. 6128,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6137,

SUBSTITUTE SENATE BILL NO. 6145,

SECOND SUBSTITUTE SENATE BILL NO. 6163,

SUBSTITUTE SENATE BILL NO. 6199,

SENATE BILL NO. 6208,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6228,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6242,

SUBSTITUTE SENATE BILL NO. 6279,

SENATE BILL NO. 6413,

SENATE BILL NO. 6415,

SENATE BILL NO. 6424,

SUBSTITUTE SENATE BILL NO. 6431,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6436,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6479,

ENGROSSED SENATE BILL NO. 6501,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6517,

ENGROSSED SENATE BILL NO. 6553.

SIGNED BY THE PRESIDENT

Pursuant to Article 2, Section 32 of the State Constitution and Senate Rule 1(5), the President announced the signing of and thereupon did sign in open session:

ENGROSSED SENATE BILL NO. 5048,

SUBSTITUTE SENATE BILL NO. 5467,

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5785,

ENGROSSED SENATE BILL NO. 6031,

ENGROSSED SENATE BILL NO. 6034,

SECOND SUBSTITUTE SENATE BILL NO. 6062,

SENATE BILL NO. 6065,

SECOND SUBSTITUTE SENATE BILL NO. 6330,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6511.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Conway moved that Mary B Moss, Gubernatorial Appointment No. 9299, be confirmed as a member of the Board of Trustees, Clover Park Technical College District No. 29.

Senator Conway spoke in favor of the motion.

APPOINTMENT OF MARY B MOSS

The President declared the question before the Senate to be the confirmation of Mary B Moss, Gubernatorial Appointment No. 9299, as a member of the Board of Trustees, Clover Park Technical College District No. 29.

The Secretary called the roll on the confirmation of Mary B Moss, Gubernatorial Appointment No. 9299, as a member of the Board of Trustees, Clover Park Technical College District No. 29 and the appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Angel, Bailey, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Absent: Senator Baumgartner

Excused: Senators Hargrove and Ranker

Mary B Moss, Gubernatorial Appointment No. 9299, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Clover Park Technical College District No. 29.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator King moved that Robert Ozuna, Gubernatorial Appointment No. 9303, be confirmed as a member of the Board of Trustees, Yakima Valley Community College District No. 16.

Senator King spoke in favor of the motion.

APPOINTMENT OF ROBERT OZUNA

The President declared the question before the Senate to be the confirmation of Robert Ozuna, Gubernatorial Appointment No. 9303, as a member of the Board of Trustees, Yakima Valley Community College District No. 16.

The Secretary called the roll on the confirmation of Robert Ozuna, Gubernatorial Appointment No. 9303, as a member of the Board of Trustees, Yakima Valley Community College District No. 16 and the appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

Excused: Senators Hargrove and Ranker

Robert Ozuna, Gubernatorial Appointment No. 9303, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Yakima Valley Community College District No. 16.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Parlette moved that Philip G Rasmussen, Gubernatorial Appointment No. 9308, be confirmed as a member of the Board of Trustees, Wenatchee Valley Community College District No. 15.

Senator Parlette spoke in favor of the motion.

APPOINTMENT OF PHILIP G RASMUSSEN

The President declared the question before the Senate to be the confirmation of Philip G Rasmussen, Gubernatorial Appointment No. 9308, as a member of the Board of Trustees, Wenatchee Valley Community College District No. 15.

The Secretary called the roll on the confirmation of Philip G Rasmussen, Gubernatorial Appointment No. 9308, as a member of the Board of Trustees, Wenatchee Valley Community College District No. 15 and the appointment was confirmed by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hasegawa, Hatfield, Hewitt, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Absent: Senator Hill

Excused: Senators Hargrove and Ranker

Philip G Rasmussen, Gubernatorial Appointment No. 9308, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Wenatchee Valley Community College District No. 15.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Frockt moved that Kiana M Scott, Gubernatorial Appointment No. 9321, be confirmed as a member of the Board of Regents, University of Washington.

Senator Frockt spoke in favor of the motion.

APPOINTMENT OF KIANA M SCOTT

The President declared the question before the Senate to be the confirmation of Kiana M Scott, Gubernatorial Appointment No. 9321, as a member of the Board of Regents, University of Washington.

The Secretary called the roll on the confirmation of Kiana M Scott, Gubernatorial Appointment No. 9321, as a member of the Board of Regents, University of Washington and the appointment was confirmed by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Excused: Senator Hargrove

Kiana M Scott, Gubernatorial Appointment No. 9321, having received the constitutional majority was declared confirmed as a member of the Board of Regents, University of Washington.

MOTION

At 10:08 a.m., on motion of Senator Fain, the Senate was declared to be at ease subject to the call of the President.

AFTERNOON SESSION

The Senate was called to order at 12:04 p.m. by the President Pro Tempore, Senator Sheldon presiding.

MOTION

On motion of Senator Fain, Senate Rule 20 was suspended for the remainder of the day to allow consideration of additional floor resolutions.

EDITOR’S NOTE: Senate Rule 20 limits consideration of floor resolutions not essential to the operation of the Senate to one per day during regular daily sessions.

MOTION

On motion of Senator Fain, the Senate advanced to the eighth order of business.

MOTION

Senator Fain moved adoption of the following resolution:

SENATE RESOLUTION
8695

By Senator Schoesler

WHEREAS, Restless Legs Syndrome is a neurological disorder characterized by unpleasant sensations in the legs and a distressing, irresistible urge to move them; and

WHEREAS, An estimated 10 million adults in the United States—3 percent of our country—and millions of others worldwide have been affected by Restless Legs Syndrome, a disease for which there is no known cure; and

WHEREAS, The diagnostic accuracy of Restless Legs Syndrome is an issue among clinicians; of those meeting the criteria for Restless Legs Syndrome in the Restless Legs Syndrome Epidemiology, Symptoms, and Treatment study, only 6.2 percent of patients received a diagnosis of Restless Legs Syndrome; and

WHEREAS, Symptoms typically include an urge to move the legs caused by uncomfortable and unpleasant sensations in the legs, presenting or worsening in the evening or night, and as daytime symptoms of Restless Legs Syndrome have been established; and

WHEREAS, Restless Legs Syndrome has an impact on sleep, concentration, and work productivity; with 68.6 percent of patients needing more than 30 minutes (generally regarded as pathologic) to initiate sleep and 60.1 percent waking 3 or more times per night; with 49.7 percent of patients reporting that symptoms adversely affect next day concentration; and with patients with moderate-to-severe Restless Legs Syndrome having an overall mean loss of workplace productivity of 1 day per 40-hour work week; and

WHEREAS, Increased awareness and expanded knowledge of the realities of life with Restless Legs Syndrome will allow the community at large to better support people who struggle with the challenges of this condition; and

WHEREAS, The Restless Legs Syndrome Foundation is a nonprofit organization; and

WHEREAS, The Restless Legs Syndrome Foundation and other groups around our country have joined together to promote Restless Legs Syndrome awareness and support—including improved education, diagnosis, research, and treatment; and

WHEREAS, The Restless Legs Syndrome Foundation is urging patients and their supporters, health care providers, and the general public to demonstrate their caring by sharing the road patients walk, the facts about Restless Legs Syndrome, and ever-growing awareness about the etiology of this disorder and treatments; and

WHEREAS, The community's focus on Restless Legs Syndrome and its impact on patients' lives will help give hope for a better future for people with Restless Legs Syndrome;

NOW, THEREFORE, BE IT RESOLVED, That the Senate recognize the needs of these chronically ill people and urge all of our citizens to support the search for a cure and assist those individuals and families who deal with this condition on a daily basis.

The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8695.

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

MOTION

Senator O'Ban moved adoption of the following resolution:

SENATE RESOLUTION
8714

WHEREAS, For selfless acts and going above and beyond the call of duty, Sergeant Leroy Arthur Petry was awarded the Medal of Honor in 2011; and

WHEREAS, Sergeant Leroy Arthur Petry enlisted in the United States Army in 1999 and remains on active duty. During his time in the military, he has won such prestigious honors as a Purple Heart, the Bronze Star Medal, the Army Good Conduct Medal with four Good Conduct Loops, the Global War on Terrorism Service Medal, and many others for his noble service; and

WHEREAS, Sergeant Leroy Arthur Petry was educated in the military at the Basic Airborne Course, Combat Lifesaver Course, Warrior Leader Course, Jumpmaster Course, Advanced Leader Course, Senior Leader Course, and Combative Level One Course. During his training, Sergeant Petry displayed commitment, loyalty, and expertise in defending the United States of America; and

WHEREAS, Sergeant Petry was stationed at Joint Base Lewis-McChord where he was assigned to the 2nd Battalion, 75th Ranger Regiment, and then undertook eight deployments - two in Iraq during Operation Iraqi Freedom and six in Afghanistan during Operation Enduring Freedom. His positions in the battle included grenadier, squad automatic rifleman, fire-team leader, squad leader, operations sergeant, and weapons squad leader. In total, he spent more than two years deployed in both Iraq and Afghanistan; and

WHEREAS, On May 26, 2008, then Staff Sergeant Petry and his unit were in the Paktia Province of Afghanistan on a mission to capture a target from the Taliban. Sergeant Petry's mission was to serve as a senior noncommissioned officer at that site for the rest of the mission, but after landing at the site, Sergeant Petry's unit came under fire and he was forced to use his instincts and combat skills to fight against members of the Taliban; and

WHEREAS, Despite nearly insurmountable obstacles, Sergeant Petry remained quick on his feet, moving strategically to help clear the courtyard of the building he and his team had been assigned to enter. He and Private First Class Lucas Robinson bravely fought with members of the Taliban and Sergeant Petry was wounded in the legs while Robinson was targeted and fired upon from the side; and

WHEREAS, Continuing to think quickly and displaying acts of courage and heroism, Sergeant Petry helped move PFC Robinson away from the site of the attack until they were joined by Sergeant Daniel Higgins who helped treat their wounds; and

WHEREAS, While Sergeant Petry and the rest of his unit resisted the continued attacks against them, a Taliban fighter threw a grenade at them which detonated just 10 meters from their unit. Sergeant Higgins and PFC Robinson suffered additional wounds from the explosion. Sensing the danger to their fellow soldiers, Staff Sergeant James Roberts and Specialist Christopher Gathercole moved in to assist the members of their unit; and

WHEREAS, As Sergeant Petry's unit attempted to strategize their next move, members of the Taliban seized the opportunity to throw another grenade in their direction. With little regard for his own safety, the courageous and heroic Sergeant Petry moved in, picked up the grenade, and attempted to throw it out of the area where he and his fellow fighters had sought refuge. As Sergeant Petry picked up the grenade, it exploded in his hand; and

WHEREAS, As a result of his acts of valor and heroism and courageously risking his life, Sergeant Petry helped shield his fellow soldiers, saving the lives of his team. His efforts also provided his team with the opportunity to return fire at the enemy fighters while safely withdrawing from the combat area; and

WHEREAS, Sergeant Petry was treated for his wounds at an Army hospital in Germany and later transferred to the Carl R. Darnall Army Medical Center in Fort Hood, Texas. Despite receiving a prosthetic limb to replace his right hand, Sergeant Petry then redeployed to Afghanistan. As a result of his bravery, Sergeant Petry was recommended for the Medal of Honor and later promoted to the rank of Sergeant First Class; and

WHEREAS, Sergeant Petry received the Medal of Honor on July 12, 2011, from President Obama. The following year a statue was built of Sergeant Petry in Pojaque, New Mexico, honoring his sacrifices. Sergeant Petry still has the names of his fallen comrades engraved on his prosthetic hand to honor and remember their dedication and bravery; and

WHEREAS, Sergeant Petry currently resides in Washington State, where he is stationed at Joint Base Lewis-McChord and serves as a liaison officer for United States Special Operations Command's Care Coalition Northwest Region. He works with sick and injured Army Rangers and their families. Sergeant Petry and Staff Sergeant Ty Carter are the only Medal of Honor Recipients still on active duty;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate gratefully pay tribute to Sergeant Petry for his service and sacrifice to the United States of America. He and his fellow soldiers continue to display acts of kindness, bravery, and valor on a daily basis. With sincere thanks and humility, we offer recognition of his fifteen years of service to the United States; and

BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to United States Army Sergeant Leroy Arthur Petry.

Senator O'Ban spoke in favor of adoption of the resolution.

The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8714.

The motion by Senator O'Ban carried and the resolution was adopted by voice vote.

MOTION

Senator Kohl-Welles moved adoption of the following resolution:

SENATE RESOLUTION
8720

By Senators Kohl-Welles, Pedersen, Frockt, Nelson, Kline, Hasegawa, Fraser, Chase, Bailey, Roach, Hill, Parlette, Brown, Tom, and Keiser

WHEREAS, Washington State is blessed with a vibrant arts and cultural heritage that entertains, challenges, and uplifts our community and helps define Washington's character and attraction; and

WHEREAS, Ben Moore established himself as an outstanding leader and organizer in the arts and cultural community, his genuine passion for the arts and artists and his spirit of camaraderie and continual encouragement influencing over two generations of his colleagues in Washington and across the country; and

WHEREAS, Ben Moore operated Seattle Repertory Theatre with no accumulated deficit in 26 of 27 years as Managing Director and spearheaded an endowment campaign which eventually raised over 15 million dollars, making it one of the most consistently financially stable arts organizations in the country and allowing it to sustain artistic excellence through challenging economic times, including the Great Recession; and

WHEREAS, Ben Moore also lead Seattle Repertory Theatre through compliance for a National Arts Stabilization grant, two Wallace Foundation grants, and the fund-raising for and construction of the Leo Kreielsheimer Theatre, a $10 million, 282-seat second theatre space; and

WHEREAS, Under Ben Moore's leadership, the Seattle Repertory Theatre received the Tony Award for Outstanding Regional Theatre, awarded to an arts organization that has displayed a continuous level of artistic achievement contributing to the growth of theatre nationally; and

WHEREAS, Ben Moore has established himself as an exceptional collaborator, having led a consortium of Seattle theatres in producing Peter Brook's Hamlet, organized a consortium of five local theatres to develop technological advances in customer relationship management, and been instrumental in the building of the Cultural Resource Collective, a community database that aggregates patrons from more than two dozen arts and cultural organizations; and

WHEREAS, Ben Moore has served two terms on the Washington State Arts Commission and served as the chair of the Seattle Arts Commission, a member of the boards of the Theatre Communications Group and the Seattle Chamber of Commerce, a peer panelist and evaluator for the NEA, and a consultant for The Bush Foundation in Minneapolis. He is also a member of the Executive Committee for the Cultural Access Fund Coalition, and was honored with an award for Outstanding Achievement in the Arts at ArtsFund's 25th Annual Celebration;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate commend Ben Moore for his outstanding accomplishments as managing director of the Seattle Repertory Theatre, his contributions to the arts, and his dedication to promoting high ideals and excellence in his community.

Senator Kohl-Welles spoke in favor of adoption of the resolution.

The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8720.

The motion by Senator Kohl-Welles carried and the resolution was adopted by voice vote.

MOTION

Senator O'Ban moved adoption of the following resolution:

SENATE RESOLUTION
8721

By Senators O'Ban and Dammeier

WHEREAS, Jermaine Kearse was born on February 6, 1990, in Lakewood, Washington, and is the only member of the 2013-2014 Seattle Seahawks team to call the great state of Washington home; and

WHEREAS, Jermaine Kearse attended high school in Lakewood where teacher Darrellene Canada – a self-described nonsports fan who still remembers him fondly – watched the Super Bowl game on Sunday, February 2, 2014, if only to see her former student, Kearse, make her and his alma mater proud; and

WHEREAS, Kearse attended the University of Washington – indeed, where else would he attend if he hoped to receive a solid education? – and played for a fine football program; and

WHEREAS, Because of Jermaine Kearse's dedication to the game and to his education, working tirelessly to achieve success, he is considered a role model to countless individuals; and

WHEREAS, Jermaine Kearse was signed by the Seattle Seahawks on April 28, 2012, as a free agent, and since that time has continued to help propel the Seahawks to victory after victory during the 2013-2014 season; and

WHEREAS, Jermaine Kearse helped lead the Seattle Seahawks to a Super Bowl win by making four catches totaling 65 yards, including a 23-yard catch in the third quarter of the game, in which he cleverly eluded numerous Bronco defenders through a series of brilliant spin moves that made more than a few Broncos look just plain silly; and

WHEREAS, At the young age of 23, Kearse is already a Super Bowl Champion and he will undoubtedly enjoy a marvelously successful career in the NFL; and

WHEREAS, We celebrate today the success of Lakewood, Washington football champion Jermaine Kearse with hopes that he has many more successful years playing in Super Bowl games with the Seattle Seahawks;

NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate honor and recognize Jermaine Kearse for the outstanding young man, competitive athlete, and hometown hero that he is.

Senator O'Ban spoke in favor of adoption of the resolution.

The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8721.

The motion by Senator O'Ban carried and the resolution was adopted by voice vote.

PERSONAL PRIVILEGE

Senator Fain: “I was just going to ask the President who his assistant was up there today? He’s doing such a magnificent job.”

REPLY BY THE PRESIDENT PRO TEMPORE

President Pro Tempore: “A distinguished gentleman, who has provided great assistant. And we’ve had an interesting conversation. It is your father, Senator.” [Mr. Dick Fain, Sr., was present at the rostrum.]”

MOTION

At 12:16 p.m., on motion of Senator Fain, the Senate was declared to be at ease subject to the call of the President.

The Senate was called to order at 4:27 p.m. by President Owen.

MOTION

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

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The Speaker has signed:

ENGROSSED SENATE BILL NO. 5048,

SUBSTITUTE SENATE BILL NO. 5123,

SUBSTITUTE SENATE BILL NO. 5467,

SECOND ENGROSSED SUBSTITUTE SENATE BILL NO. 5785,

ENGROSSED SENATE BILL NO. 6031,

ENGROSSED SENATE BILL NO. 6034,

SECOND SUBSTITUTE SENATE BILL NO. 6062,

SENATE BILL NO. 6065,

SECOND SUBSTITUTE SENATE BILL NO. 6330,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6511,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The Speaker has signed:

SECOND SUBSTITUTE SENATE BILL NO. 5064,

SENATE BILL NO. 5141,

SENATE BILL NO. 5775,

SUBSTITUTE SENATE BILL NO. 5859,

SUBSTITUTE SENATE BILL NO. 5977,

SUBSTITUTE SENATE BILL NO. 6014,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6016,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6041,

SUBSTITUTE SENATE BILL NO. 6054,

SUBSTITUTE SENATE BILL NO. 6095,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6126,

SENATE BILL NO. 6128,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6137,

SUBSTITUTE SENATE BILL NO. 6145,

SECOND SUBSTITUTE SENATE BILL NO. 6163,

SUBSTITUTE SENATE BILL NO. 6199,

SENATE BILL NO. 6208,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6228,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6242,

SUBSTITUTE SENATE BILL NO. 6279,

SENATE BILL NO. 6413,

SENATE BILL NO. 6415,

SENATE BILL NO. 6424,

SUBSTITUTE SENATE BILL NO. 6431,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6436,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6479,

ENGROSSED SENATE BILL NO. 6501,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6517,

ENGROSSED SENATE BILL NO. 6553,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The Speaker has signed:

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2023,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2493,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2519,

SUBSTITUTE HOUSE BILL NO. 2613,

SECOND SUBSTITUTE HOUSE BILL NO. 2616,

ENGROSSED HOUSE BILL NO. 2789,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The Speaker has signed:

SECOND ENGROSSED SUBSTITUTE HOUSE BILL NO. 1117,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1129,

SECOND SUBSTITUTE HOUSE BILL NO. 1651,

SECOND SUBSTITUTE HOUSE BILL NO. 1709,

SUBSTITUTE HOUSE BILL NO. 1791,

ENGROSSED HOUSE BILL NO. 2108,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2111,

SECOND SUBSTITUTE HOUSE BILL NO. 2163,

SECOND SUBSTITUTE HOUSE BILL NO. 2251,

HOUSE BILL NO. 2253,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2315,

SECOND SUBSTITUTE HOUSE BILL NO. 2457,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2463,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2569,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2580,

SUBSTITUTE HOUSE BILL NO. 2612,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2626,

SECOND SUBSTITUTE HOUSE BILL NO. 2627,

SUBSTITUTE HOUSE BILL NO. 2724,

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

SIGNED BY THE PRESIDENT

Pursuant to Article 2, Section 32 of the State Constitution and Senate Rule 1(5), the President announced the signing of and thereupon did sign in open session:

ENGROSSED SUBSTITUTE SENATE BILL NO. 5045,

SUBSTITUTE SENATE BILL NO. 5173,

SUBSTITUTE SENATE BILL NO. 6086,

SUBSTITUTE SENATE BILL NO. 6129,

SENATE BILL NO. 6141,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6388,

ENGROSSED SENATE BILL NO. 6458,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6570.

MESSAGE FROM THE HOUSE

March 4, 2014

MR. PRESIDENT:

The House passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6002 with the following amendment(s): 6002-S.E AMH ENGR H4473.E

0.Strike everything after the enacting clause and insert the following:

"PART I
GENERAL GOVERNMENT

Sec. 101. 2013 2nd sp.s. c 4 s 101 (uncodified) is amended to read as follows:

FOR THE HOUSE OF REPRESENTATIVES

General Fund‑-State Appropriation (FY 2014)

.............................................................................. (($30,789,000))

................................................................................... $30,923,000

General Fund‑-State Appropriation (FY 2015)

.............................................................................. (($31,075,000))

................................................................................... $31,207,000

Motor Vehicle Account‑-State Appropriation

..................................................................................... $1,765,000

TOTAL APPROPRIATION.................................. (($63,629,000))

................................................................................... $63,895,000

Sec. 102. 2013 2nd sp.s. c 4 s 102 (uncodified) is amended to read as follows:

FOR THE SENATE

General Fund‑-State Appropriation (FY 2014)

.............................................................................. (($21,150,000))

................................................................................... $21,240,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($23,405,000))

................................................................................... $23,495,000

Motor Vehicle Account‑-State Appropriation..................................

..................................................................................... $1,514,000

TOTAL APPROPRIATION.................................. (($46,069,000))

................................................................................... $46,249,000

Sec. 103. 2013 2nd sp.s. c 4 s 103 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE

General Fund--State Appropriation (FY 2014)

.......................................................................................... $62,000

General Fund--State Appropriation (FY 2015)

................................................................................... (($111,000))

........................................................................................ $113,000

Performance Audits of Government Account--State

Appropriation............................................................... $5,641,000

Medical Aid Account--State Appropriation

........................................................................................ $332,000

Accident Account--State Appropriation

........................................................................................ $332,000

TOTAL APPROPRIATION.................................... (($6,478,000))

..................................................................................... $6,480,000

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

(1) Notwithstanding the provisions of this section, the joint legislative audit and review committee may adjust the due dates for projects included on the committee's 2013-15 work plan as necessary to efficiently manage workload.

(2) $332,000 of the medical aid account--state appropriation and $332,000 of the accident account--state appropriation are provided for the purposes of chapter 37, Laws of 2011 (workers' compensation).

(3) $323,000 of the performance audits of government account--state appropriation is provided for consultant and staff costs related to the economic analysis of tax preferences as directed by chapter 43.136 RCW.

(4) The joint legislative audit and review committee shall conduct an audit of Washington's state research universities. The purpose of the audit is to identify cost and profit centers within, and in partnership with, the research universities. The audit must focus on public funds; student fees, in particular tuition; and auxiliary enterprises, which for the purposes of the audit at the University of Washington includes University of Washington medical center, the internal lending program, the W fund, and the center for commercialization. The audit at each university much achieve the following:

(a) Assess the university's policies and practices for tracking per-student expenditures for instruction and identify the average amount per student that the university has spent on instruction for undergraduate students in each of the past five fiscal years;

(b) Obtain the university's definition of auxiliary enterprises and determine the number of auxiliary enterprises, including the University of Washington medical center, the University of Washington internal lending program, the W fund, and the center for commercialization, that exist in the university system, the methods the university uses to track revenue and expenditures of auxiliary enterprises, and the policies and practices the university has in place to ensure that state funding is not used to supplement or guarantee projects or programs authorized by auxiliary enterprises;

(c) Identify how much money is being spent on undergraduate education and to what extent undergraduate education is subsidizing graduate education; and

(d) Determine how tuition funds are being used and to what extent they are being used to fund the University of Washington medical center, the University of Washington internal lending program, the W fund, and the center for commercialization and to back bonds authorized by the university.

(5) The committee shall conduct a study of the current methods of collecting legal financial obligations and compare those methods with other debt collection methods, including contracting for debt collection of legal financial obligations. The study shall include analysis of the costs and revenues of current methods and compare those to alternatives, and include analysis of the impact of current methods and alternatives to revenues received by the state. Included shall be an examination of costs and revenue generation before and after the implementation of chapter 379, Laws of 2003 (SSB 5990) and chapter 362, Laws of 2005 (SSB 5256) and analysis of whether these changes met the legislative goals of reducing costs and increasing collections. A report on the results of the analysis shall be presented to the appropriate committees of the legislature by December 2014.

(6) The committee shall conduct a study of economic development programs and projects supported by the state general fund in the department of commerce. The study shall first review the extent to which these programs: (a) Included specific economic development targets; (b) monitored economic development targets; (c) required for programs which provided support or services through contracts, whether the contracts were structured such that if economic development targets were not met, contracts were reviewed or revised; and (d) changed the economic development targets of associate development organizations relative to funding increases since 2007. The study will include the feasibility of determining how to isolate other factors, such as general economic trends, from the impacts of economic development programs. The costs and options for conducting future analysis of the outcomes specific to economic development programs shall be included and a briefing report shall be provided to the appropriate committees of the legislature by December 1, 2013. A complete report with study data and conclusions shall be provided to the appropriate committees of the legislature by December 1, 2014.

(7) The committee shall analyze the incidence and level of taxation and business incentives available to the financial services industry in Washington State, and identify the relative differences in taxes and business incentives compared to California. A report shall be provided to the appropriate committees of the legislature by December 1, 2014.

(8) The committee shall conduct an analysis of how school districts use school days. The analysis must include:

(a) How school districts define classroom time, nonclassroom time, instructional time, noninstructional time, and any other definitions of how the school day is divided or used;

(b) Estimates of time in each category;

(d) When noninstructional hours occur;

(e) How noninstructional hours are used, including how much noninstructional time is devoted to professional development for the purposes of teacher and principal evaluation training or common core state standards training; and

(f) The extent to which the use of each category of time is identified or defined in collective bargaining agreements.

To the extent data is not available at the statewide level, the committee may use case studies or other methods to conduct the analysis. The committee shall submit a report of its findings to the education committees of the legislature by December 1, 2014.

(9) The committee shall review funding enhancement formulas that provide minimum staffing unit funding to small school districts and districts with school plants that have been judged by the state board of education to be remote and necessary. The committee will make an assessment of the current formulas and report any recommended adjustments to the legislative fiscal committees of the senate and the house of representatives by November 1, 2014. In assessing the current formulas, the committee may consider: Enhancements being made to basic education funding in the 2013-2015 omnibus appropriations act and committed to under Engrossed Substitute House Bill No. 2261 (chapter 548, Laws of 2009) and Substitute House Bill No. 2776 (chapter 236, Laws of 2010); developments in technology or educational service delivery since the formulas were established; practices in other states; districts' ability to provide students with access to a program of education; and inter-district equity.

((~~(12)~~)) (10) In carrying out the report required by RCW 44.28.157, the committee shall include by December 2014, an analysis of the impacts of using the Washington health benefit exchange established in chapter 43.71 RCW as a mechanism for providing health insurance for part-time certificated and classified K-12 public school employees. The analysis shall be conducted in coordination with the health care authority and shall include a review of how the exchange, federal health premium tax credits and subsidies for out-of-pocket expenses administered through the exchange, and Medicaid expansion have impacted, or could impact, health care costs for individuals, school districts, and the state. The analysis shall also include a review of the cost of stand-alone dental plans.

(11) Within the appropriations in this section, the joint legislative audit and review committee shall review the tax exemption provided under Engrossed House Bill No. 2447 (small business incubators) and its actual fiscal impact on state revenues to determine if the fiscal impact to state revenues reasonably conforms to the fiscal estimate in the fiscal note for this legislation.

Sec. 104. 2013 2nd sp.s. c 4 s 104 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

General Fund--State Appropriation (FY 2014)

..................................................................................... $1,653,000

General Fund--State Appropriation (FY 2015)................................

................................................................................ (($1,811,000))

..................................................................................... $1,812,000

TOTAL APPROPRIATION.................................... (($3,464,000))

..................................................................................... $3,465,000

.......................................................................................................

Sec. 105. 2013 2nd sp.s. c 4 s 105 (uncodified) is amended to read as follows:

FOR THE JOINT LEGISLATIVE SYSTEMS COMMITTEE

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($8,004,000))

..................................................................................... $8,126,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($7,973,000))

..................................................................................... $8,095,000

TOTAL APPROPRIATION.................................. (($15,977,000))

................................................................................... $16,221,000

Sec. 106. 2013 2nd sp.s. c 4 s 106 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE STATE ACTUARY

Department of Retirement Systems Expense

Account‑-State Appropriation.................................. (($3,529,000))

..................................................................................... $3,543,000

Sec. 107. 2013 2nd sp.s. c 4 s 107 (uncodified) is amended to read as follows:

FOR THE STATUTE LAW COMMITTEE

General Fund‑-State Appropriation (FY 2014)................................

................................................................................ (($3,895,000))

..................................................................................... $3,903,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($4,102,000))

..................................................................................... $4,110,000

TOTAL APPROPRIATION.................................... (($7,997,000))

..................................................................................... $8,013,000

Sec. 108. 2013 2nd sp.s. c 4 s 108 (uncodified) is amended to read as follows:

FOR THE OFFICE OF LEGISLATIVE SUPPORT SERVICES

General Fund--State Appropriation (FY 2014)................................

................................................................................ (($3,686,000))

..................................................................................... $3,708,000

General Fund--State Appropriation (FY 2015)................................

................................................................................ (($3,684,000))

..................................................................................... $3,708,000

TOTAL APPROPRIATION.................................... (($7,370,000))

..................................................................................... $7,416,000

Sec. 109. 2013 2nd sp.s. c 4 s 110 (uncodified) is amended to read as follows:

FOR THE SUPREME COURT

General Fund‑-State Appropriation (FY 2014)................................

................................................................................ (($6,911,000))

..................................................................................... $7,048,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($6,836,000))

..................................................................................... $6,970,000

TOTAL APPROPRIATION.................................. (($13,747,000))

................................................................................... $14,018,000

Sec. 110. 2013 2nd sp.s. c 4 s 111 (uncodified) is amended to read as follows:

FOR THE LAW LIBRARY

General Fund‑-State Appropriation (FY 2014)................................

................................................................................ (($1,481,000))

..................................................................................... $1,484,000

General Fund--State Appropriation (FY 2015)................................

................................................................................ (($1,468,000))

..................................................................................... $1,474,000

TOTAL APPROPRIATION.................................... (($2,949,000))

..................................................................................... $2,958,000

Sec. 111. 2013 2nd sp.s. c 4 s 112 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON JUDICIAL CONDUCT

General Fund‑-State Appropriation (FY 2014)................................

................................................................................ (($1,068,000))

..................................................................................... $1,071,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................... (($994,000))

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

TOTAL APPROPRIATION.................................... (($2,062,000))

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

Sec. 112. 2013 2nd sp.s. c 4 s 113 (uncodified) is amended to read as follows:

FOR THE COURT OF APPEALS

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($15,691,000))

................................................................................... $15,865,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($15,685,000))

................................................................................... $15,980,000

TOTAL APPROPRIATION.................................. (($31,376,000))

................................................................................... $31,845,000

Sec. 113. 2013 2nd sp.s. c 4 s 114 (uncodified) is amended to read as follows:

FOR THE ADMINISTRATOR FOR THE COURTS

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($51,085,000))

................................................................................... $51,542,000

General Fund‑-State Appropriation (FY 2015)

.............................................................................. (($50,771,000))

................................................................................... $51,747,000

General Fund--Federal Appropriation........................... $2,125,000

General Fund--Private/Local Appropriation....................................

........................................................................................ $658,000

Judicial Information Systems Account‑-State

Appropriation........................................................ (($46,611,000))

................................................................................... $53,634,000

Judicial Stabilization Trust Account--State

Appropriation............................................................... $6,691,000

TOTAL APPROPRIATION................................ (($157,941,000))

................................................................................. $166,397,000

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

(1) $1,500,000 of the judicial information systems account--state appropriation is provided solely for development and implementation of the information network hub project.

(2) $2,138,000 of the judicial information systems account--state appropriation is provided solely for replacement of computer equipment, including servers, routers, and storage system upgrades.

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

((~~(5)~~)) (4) $1,199,000 of the judicial information systems account--state appropriation is provided solely for replacing computer equipment at state courts and state judicial agencies.

((~~(6)~~)) (5) ((~~$108,000 of the general fund--state appropriation for fiscal year 2014 and~~)) $108,000 of the general fund--state appropriation for fiscal year 2015 ((~~are~~)) is provided solely for the implementation of chapter 210, Laws of 2013 (Senate Bill No. 5052) (superior court judges Whatcom county). The funds provided in this subsection shall be expended only if the fourth superior court judge position in Whatcom county is appointed and serving on the bench.

((~~(7)~~)) (6) ((~~$108,000 of the general fund--state appropriation for fiscal year 2014 and~~)) $108,000 of the general fund--state appropriation for fiscal year 2015 ((~~are~~)) is provided solely for the implementation of chapter 142, Laws of 2013 (House Bill No. 1175) (superior court judges Benton/Franklin counties). The funds provided in this subsection shall be expended only if the seventh superior court judge position in Benton and Franklin counties jointly is appointed and serving on the bench.

(((8) $11,300,000 of the judicial information systems account--state appropriation is provided solely for continued implementation of the superior court case management system project. The administrative office of the courts, in consultation with the judicial information systems committee, the superior court case management system project steering committee, and the office of the chief information officer shall develop a revised charter to implement the next phases of the superior court case management system. The revised charter shall insure that the superior court case management system project steering committee continues to provide contract oversight, in collaboration with the judicial information system committee, through the implementation period and various phases of the project. Oversight responsibilities throughout the various phases of the project must include, but are not limited to, vendor management, contract and deliverable management, and assuring satisfaction of the business and technical needs at the local level. The superior court case management system project steering committee may solicit input from user groups as deemed appropriate. The revised charter shall be approved by the judicial information systems committee)) (7) $16,606,000 of the judicial information systems account--state appropriation is provided solely for continued implementation of the superior court case management system project. The administrative office of the courts, in consultation with the judicial information systems committee and the office of the chief information officer shall develop a revised superior court case management steering committee charter to implement the next phases of the superior court case management system. The steering committee members shall be appointed by the judicial information systems committee and shall consist of two members representing each of the following groups: Court administrators, superior court judges, county clerks, and the administrative office of the courts. The revised charter shall insure that voting members of the steering committee represent the administrative office of the courts and those courts that have implemented, or have committed to implement, the statewide superior court vendor solution as selected by the judicial information systems committee. The revised charter shall also insure that the superior court case management system project steering committee continues to provide contract oversight in collaboration with the judicial information system committee through the implementation period. Oversight responsibilities of the steering committee throughout the various phases of the project must include, but are not limited to, vendor management, contract and deliverable management, assuring reasonable satisfaction of the business and technical needs at the local level, receipt of stakeholder feedback, and communication between the various stakeholder groups and the judicial information systems committee. Issues of significant scope, schedule or budget changes, and risk mitigation strategies must be escalated to the judicial information systems committee for consideration. In the event that a majority of the steering committee members cannot reach a decision, the issue must be escalated to the judicial information systems committee for consideration. The superior court case management system project steering committee may solicit input from user groups as deemed appropriate. The revised charter shall be approved by the judicial information systems committee.

((~~(9)~~)) (8) $1,399,000 of the general fund--state appropriation for fiscal year 2014 and $1,399,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for school districts for petitions to juvenile court for truant students as provided in RCW 28A.225.030 and 28A.225.035. The administrator for the courts shall develop an interagency agreement with the superintendent of public instruction to allocate the funding provided in this subsection. Allocation of this money to school districts shall be based on the number of petitions filed. This funding includes amounts school districts may expend on the cost of serving petitions filed under RCW 28A.225.030 by certified mail or by personal service or for the performance of service of process for any hearing associated with RCW 28A.225.030.

((~~(10)~~)) (9)(a) $7,313,000 of the general fund--state appropriation for fiscal year 2014 and $7,313,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for distribution to county juvenile court administrators to fund the costs of processing truancy, children in need of services, and at-risk youth petitions. The administrator for the courts, in conjunction with the juvenile court administrators, shall develop an equitable funding distribution formula. The formula shall neither reward counties with higher than average per-petition processing costs nor shall it penalize counties with lower than average per-petition processing costs.

(b) Each fiscal year during the 2013-2015 fiscal biennium, each county shall report the number of petitions processed and the total actual costs of processing truancy, children in need of services, and at-risk youth petitions. Counties shall submit the reports to the administrator for the courts no later than 45 days after the end of the fiscal year. The administrator for the courts shall electronically transmit this information to the chairs and ranking minority members of the house of representatives and senate fiscal committees no later than 60 days after a fiscal year ends. These reports are deemed informational in nature and are not for the purpose of distributing funds.

((~~(11)~~)) (10) $274,000 of the general fund--state appropriation for fiscal year 2014 and $274,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the office of public guardianship to continue guardianship services for those low-income incapacitated persons who were receiving services on June 30, 2013.

((~~(12) $333,000~~)) (11) $1,426,000 of the judicial information systems account--state appropriation is provided solely for the content management system for the appellate courts.

(12) The administrative office of the courts and the judicial information systems committee shall develop statewide superior court data collection and exchange standards. Upon implementation, these standards must be met by each superior court in order to continue to receive judicial information systems account funding or equipment and services funded by the account. For those courts that do not use the statewide superior court vendor solution as chosen by the judicial information systems committee, judicial information systems account funds may not be allocated for (a) the costs to meet the data collection and exchange standards developed by administrative office of the courts and judicial information systems committee, and (b) the costs to develop and implement local court case management systems.

Sec. 114. 2013 2nd sp.s. c 4 s 115 (uncodified) is amended to read as follows:

FOR THE OFFICE OF PUBLIC DEFENSE

General Fund‑-State Appropriation (FY 2014)

.............................................................................. (($30,410,000))

................................................................................... $30,662,000

General Fund‑-State Appropriation (FY 2015)

.............................................................................. (($33,719,000))

................................................................................... $33,722,000

Judicial Stabilization Trust Account--State

Appropriation............................................................... $3,648,000

General Fund--Federal Appropriation.............................................

................................................................................... (($152,000))

........................................................................................ $304,000

TOTAL APPROPRIATION.................................. (($67,929,000))

................................................................................... $68,336,000

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

(1) The amounts provided include funding for expert and investigative services in death penalty personal restraint petitions.

(2) $3,378,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to expand the parents representation program into Asotin, Columbia, Garfield, King, Whatcom, and Whitman counties.

Sec. 115. 2013 2nd sp.s. c 4 s 116 (uncodified) is amended to read as follows:

FOR THE OFFICE OF CIVIL LEGAL AID

General Fund‑-State Appropriation (FY 2014)................................

................................................................................... $10,862,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($10,870,000))

................................................................................... $11,149,000

Judicial Stabilization Trust Account--State

Appropriation............................................................... $1,454,000

TOTAL APPROPRIATION.................................. (($23,186,000))

................................................................................... $23,465,000

The appropriations in this section are subject to the following conditions and limitations: An amount not to exceed $40,000 of the general fund--state appropriation for fiscal year 2014 and an amount not to exceed $40,000 of the general fund--state appropriation for fiscal year 2015 may be used to provide telephonic legal advice and assistance to otherwise eligible persons who are sixty years of age or older on matters authorized by RCW 2.53.030(2) (a) through (k) regardless of household income or asset level.

Sec. 116. 2013 2nd sp.s. c 4 s 117 (uncodified) is amended to read as follows:

FOR THE OFFICE OF THE GOVERNOR

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($5,509,000))

..................................................................................... $5,565,000

General Fund‑-State Appropriation (FY 2015)

................................................................................ (($5,217,000))

..................................................................................... $5,277,000

Economic Development Strategic Reserve Account--State

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

TOTAL APPROPRIATION.................................. (($14,726,000))

................................................................................... $14,842,000

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

(1) $4,000,000 of the economic development strategic reserve account appropriation is provided solely for efforts to assist with currently active industrial recruitment efforts that will bring new jobs to the state or will retain headquarter locations of major companies currently housed in the state.

(2) $684,000 of the general fund--state appropriation for fiscal year 2014 and $684,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the office of the education ombudsman.

(3) $258,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of Engrossed Second Substitute Senate Bill No. 5802 (greenhouse gas emissions). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(4) $35,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the implementation of Second Substitute House Bill No. 1709 (foreign language interpreters). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
(5) $50,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the office of the education ombuds to provide special education ombuds services. Beginning in fiscal year 2015, the superintendent of public instruction must enter into an interagency agreement with the office of the education ombuds to provide support for additional special education ombuds services.
(6) Within appropriated funds, the office of the education ombuds shall develop a scope of work and proposed plan for a task force on success for students with special needs that will: (a) Define and assess barriers that students placed or qualified to be placed in special education and students with a plan for accommodation under section 504 of the federal rehabilitation act of 1973 face in earning a high school diploma and fully accessing the educational program provided by the public schools; and (b) outline recommendations for systemic changes and successful models for education and service delivery, including improved coordination of early learning through postsecondary education and career preparation. With input from interested parents, educators, state agencies, and organizations representing students placed or qualified to be placed in special education and students with a section 504 plan, the office of the education ombuds shall invite representative individuals to participate in the task force. The office of the education ombuds shall submit the scope of work and proposed task force plan to the education and fiscal committees of the legislature by December 1, 2014, along with a request for additional funds necessary to implement the plan. To the extent possible within appropriated funds, the office of the education ombuds may convene the task force and commence its work before June 30, 2015.

Sec. 117. 2013 2nd sp.s. c 4 s 118 (uncodified) is amended to read as follows:

FOR THE LIEUTENANT GOVERNOR

General Fund‑-State Appropriation (FY 2014)................................

........................................................................................ $654,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................... (($658,000))

........................................................................................ $665,000

General Fund‑-Private/Local Appropriation....................................

.......................................................................................... $90,000

TOTAL APPROPRIATION.................................... (($1,402,000))

..................................................................................... $1,409,000

Sec. 118. 2013 2nd sp.s. c 4 s 119 (uncodified) is amended to read as follows:

FOR THE PUBLIC DISCLOSURE COMMISSION

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($2,082,000))

..................................................................................... $2,087,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($2,015,000))

..................................................................................... $2,189,000

TOTAL APPROPRIATION.................................... (($4,097,000))

..................................................................................... $4,276,000

The appropriations in this section are subject to the following conditions and limitations: $100,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the implementation of Engrossed Third Substitute House Bill No. 1005 (campaign report filing). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 119. 2013 2nd sp.s. c 4 s 120 (uncodified) is amended to read as follows:

FOR THE SECRETARY OF STATE

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($11,356,000))

................................................................................... $11,827,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($9,535,000))

..................................................................................... $9,628,000

General Fund‑-Federal Appropriation.............................................

................................................................................ (($7,419,000))

..................................................................................... $7,450,000
General Fund--Private/Local Appropriation....................................

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

Public Records Efficiency, Preservation, and Access

Account‑-State Appropriation.................................. (($7,361,000))

..................................................................................... $7,538,000

Charitable Organization Education Account--State

Appropriation.................................................................. $364,000

Local Government Archives Account‑-State

Appropriation.......................................................... (($8,467,000))

..................................................................................... $8,510,000

Election Account‑-Federal Appropriation.......................................

................................................................................... $12,016,000

Washington State Heritage Center Account--State

Appropriation............................................................... $8,860,000

TOTAL APPROPRIATION.................................. (($65,378,000))

................................................................................... $66,213,000

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

(1) ((~~$3,301,000~~)) $3,767,000 of the general fund‑-state appropriation for fiscal year 2014 is provided solely to reimburse counties for the state's share of primary and general election costs and the costs of conducting mandatory recounts on state measures. Counties shall be reimbursed only for those odd-year election costs that the secretary of state validates as eligible for reimbursement.

(2)(a) $1,847,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,926,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for contracting with a nonprofit organization to produce gavel-to-gavel television coverage of state government deliberations and other events of statewide significance during the 2013-2015 fiscal biennium. The funding level for each year of the contract shall be based on the amount provided in this subsection. The nonprofit organization shall be required to raise contributions or commitments to make contributions, in cash or in kind, in an amount equal to forty percent of the state contribution. The office of the secretary of state may make full or partial payment once all criteria in this subsection have been satisfactorily documented.

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

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

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

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

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

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

(3) Any reductions to funding for the Washington talking book and Braille library may not exceed in proportion any reductions taken to the funding for the library as a whole.

(4) It is the intent of the legislature to consider during the 2014 legislative session funding for the publication and distribution of a primary election voters pamphlet.

(5) $771,000 of the general fund--state appropriation for fiscal year 2014 and $772,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the state library to purchase statewide on-line access to the information technology academy to allow public access to on-line courses and learning resources through public libraries.

      (6) $44,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Substitute House Bill No. 2552 (signature gathering). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (7) The legislature finds that the volume of state records retained in paper format continues to grow, increasing the records storage costs for the state. The secretary of state shall convene a work group to study methods for retaining records in electronic formats and for shorter periods of time, with the goal of reducing the volume of stored paper records by ten percent by the end of 2016, and an additional ten percent by the end of 2018. The following state agencies shall participate in the work group, which shall report back to the appropriate committees of the legislature by December 31, 2014, and December 31, 2015:
      (a) Office of the secretary of state;
      (b) Office of the attorney general;
      (c) Office of the state auditor;
      (d) Office of financial management;
      (e) Department of corrections;
      (f) Department of social and health services;
      (g) Department of health; and
      (h) Department of transportation.

Sec. 120. 2013 2nd sp.s. c 4 s 121 (uncodified) is amended to read as follows:

FOR THE GOVERNOR'S OFFICE OF INDIAN AFFAIRS

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($253,000))

........................................................................................ $249,000

General Fund‑-State Appropriation (FY 2015)

................................................................................... (($248,000))

........................................................................................ $255,000

TOTAL APPROPRIATION....................................... (($501,000))

........................................................................................ $504,000

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

Sec. 121. 2013 2nd sp.s. c 4 s 122 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON ASIAN PACIFIC AMERICAN AFFAIRS

General Fund‑-State Appropriation (FY 2014)................................

................................................................................... (($213,000))

........................................................................................ $210,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................... (($207,000))

........................................................................................ $213,000

TOTAL APPROPRIATION....................................... (($420,000))

........................................................................................ $423,000

Sec. 122. 2013 2nd sp.s. c 4 s 123 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER

State Treasurer's Service Account‑-State

Appropriation........................................................ (($14,924,000))

................................................................................... $14,945,000

The appropriation in this section is subject to the following conditions and limitations: $150,000 of the state treasurer's service account--state appropriation is provided solely for legal fees related to additional legal assistance due to changes in federal financial regulations and an increase in complex and high profile litigation.

Sec. 123. 2013 2nd sp.s. c 4 s 124 (uncodified) is amended to read as follows:

FOR THE STATE AUDITOR

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($728,000))

........................................................................................ $755,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................... (($733,000))

........................................................................................ $763,000

State Auditing Services Revolving Account‑-State

Appropriation.......................................................... (($9,573,000))

..................................................................................... $9,580,000

((Performance Audits of Government Account--State
Appropriation.................................................................. $56,000))

TOTAL APPROPRIATION.................................. (($11,090,000))

................................................................................... $11,098,000

The appropriations in this section are subject to the following conditions and limitations: ((~~(1) $728,000~~)) $755,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$733,000~~)) $763,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for staff and related costs to verify the accuracy of reported school district data submitted for state funding purposes; conduct school district program audits of state funded public school programs; establish the specific amount of state funding adjustments whenever audit exceptions occur and the amount is not firmly established in the course of regular public school audits; and to assist the state special education safety net committee when requested.

Sec. 124. 2013 2nd sp.s. c 4 s 125 (uncodified) is amended to read as follows:

FOR THE CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($141,000))

........................................................................................ $138,000

General Fund‑-State Appropriation (FY 2015)

................................................................................... (($171,000))

........................................................................................ $175,000

TOTAL APPROPRIATION....................................... (($312,000))

........................................................................................ $313,000

Sec. 125. 2013 2nd sp.s. c 4 s 126 (uncodified) is amended to read as follows:

FOR THE ATTORNEY GENERAL

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($10,456,000))

................................................................................... $11,019,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($10,132,000))

................................................................................... $10,764,000

General Fund‑-Federal Appropriation........................... $7,114,000

New Motor Vehicle Arbitration Account‑-State

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

Legal Services Revolving Account‑-State

Appropriation...................................................... (($191,286,000))

................................................................................. $199,707,000

Tobacco Prevention and Control Account‑-State

Appropriation.................................................................. $271,000

Medicaid Fraud Penalty Account--State Appropriation. $2,279,000

Public Services Revolving Account--State

Appropriation............................................................... $2,093,000

TOTAL APPROPRIATION................................ (($224,628,000))

................................................................................. $234,244,000

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

(1) The attorney general shall report each fiscal year on actual legal services expenditures and actual attorney staffing levels for each agency receiving legal services. The report shall be submitted to the office of financial management and the fiscal committees of the senate and house of representatives no later than ninety days after the end of each fiscal year. As part of its by agency report to the legislative fiscal committees and the office of financial management, the office of the attorney general shall include information detailing the agency's expenditures for its agency-wide overhead and a breakdown by division of division administration expenses.

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

(3) The attorney general shall annually report to the fiscal committees of the legislature all new cy pres awards and settlements and all new accounts, disclosing their intended uses, balances, the nature of the claim or account, proposals, and intended timeframes for the expenditure of each amount. The report shall be distributed electronically and posted on the attorney general's web site. The report shall not be printed on paper or distributed physically.

(4) The executive ethics board shall: (a) Develop a statewide plan, with performance measures, to provide overall direction and accountability in all executive branch agencies and statewide elected offices; (b) coordinate and work with the commission on judicial conduct and the legislative ethics board; (c) assess and evaluate each agency's ethical culture through employee and stakeholder surveys, review Washington state quality award feedback reports, and publish an annual report on the results to the public; and (d) solicit outside evaluations, studies, and recommendations for improvements from academics, nonprofit organizations, the public disclosure commission, or other entities with expertise in ethics, integrity, and the public sector.

(5) $424,000 of the legal services revolving account--state appropriation is provided solely for replacement of a portion of the agency's personal computers. The amount provided in this subsection is conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer and section 945 of this act, personal computer acquisition and replacement.

(6) $609,000 of the legal services revolving account--state appropriation is provided solely for upgrades to software programs. The amount provided in this subsection is conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(7) $150,000 of the legal services revolving account--state appropriation is provided solely for the implementation of Engrossed Second Substitute Senate Bill No. 5405 (extended foster care). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(8) $50,000 of the general fund--state appropriation for fiscal year 2014 and $50,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the implementation of Engrossed Substitute House Bill No. 1341 (wrongful imprisonment). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(9) $189,000 of the legal services revolving account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1420 (transportation improvement projects). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(10) $2,093,000 of the public service revolving account--state appropriation is provided solely for the work of the public counsel section of the office of the attorney general.

(11) $353,000 of the general fund--state appropriation for fiscal year 2014 and $353,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a grant to the Washington coalition of crime victim advocates to provide training, certification, and technical assistance for crime victim service center advocates.

(12) $69,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Substitute House Bill No. 2171 (veterans, military personnel). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (13) $141,000 of the legal services revolving account--state appropriation is provided solely for implementation of Substitute House Bill No. 2331 (public works payroll records). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (14) $120,000 of the legal services revolving account--state appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 2149 (medical marijuana). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (15) $259,000 of the legal services revolving account--state appropriation is provided solely for implementation of Substitute House Bill No. 2146 (labor and industries appeal bonds). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 126. 2013 2nd sp.s. c 4 s 127 (uncodified) is amended to read as follows:

FOR THE CASELOAD FORECAST COUNCIL

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($1,260,000))

..................................................................................... $1,211,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($1,230,000))

..................................................................................... $1,216,000

TOTAL APPROPRIATION.................................... (($2,490,000))

..................................................................................... $2,427,000

Sec. 127. 2013 2nd sp.s. c 4 s 128 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF COMMERCE

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($63,076,000))

................................................................................... $61,549,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($60,151,000))

................................................................................... $63,485,000

General Fund‑-Federal Appropriation.............................................

............................................................................ (($265,004,000))

................................................................................. $266,894,000

General Fund‑-Private/Local Appropriation....................................

................................................................................ (($5,638,000))

..................................................................................... $5,620,000

Public Works Assistance Account‑-State

Appropriation.......................................................... (($3,036,000))

..................................................................................... $3,136,000

Drinking Water Assistance Administrative.....................................

Account‑-State Appropriation..................................... (($445,000))

........................................................................................ $443,000

Lead Paint Account‑-State Appropriation......................................

........................................................................................ $147,000

Building Code Council Account‑-State Appropriation....... $13,000

Home Security Fund Account‑-State Appropriation (($25,452,000))

................................................................................... $25,468,000

Affordable Housing for All Account‑-State

Appropriation........................................................ (($11,915,000))

................................................................................... $11,910,000

Financial Fraud and Identity Theft Crimes Investigation and Prosecution Account—

State Appropriation..................................................... (($969,000))

..................................................................................... $1,166,000

Low-Income Weatherization Assistance Account‑-State.................

Appropriation.......................................................... (($1,882,000))

..................................................................................... $1,879,000

Community and Economic Development Fee Account‑-State

Appropriation.......................................................... (($5,303,000))

..................................................................................... $5,300,000

Washington Housing Trust Account‑-State

Appropriation........................................................ (($19,592,000))

................................................................................... $18,633,000

Prostitution Prevention and Intervention Account--State Appropriation.......................................................................................... $98,000

Public Facility Construction Loan Revolving

Account‑-State Appropriation..................................... (($758,000))

........................................................................................ $773,000

Washington Community Technology Opportunity Account--

Private/Local Appropriation............................................... $10,000

Liquor Revolving Account--State Appropriation

..................................................................................... $5,605,000

TOTAL APPROPRIATION................................ (($469,094,000))

................................................................................. $472,129,000

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

(1) Repayments of outstanding mortgage and rental assistance program loans administered by the department under RCW 43.63A.640 shall be remitted to the department, including any current revolving account balances. The department shall collect payments on outstanding loans, and deposit them into the state general fund. Repayments of funds owed under the program shall be remitted to the department according to the terms included in the original loan agreements.

(2) $500,000 of the general fund--state appropriation for fiscal year 2014 and $500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a grant to resolution Washington to building statewide capacity for alternative dispute resolution centers and dispute resolution programs that guarantee that citizens have access to low-cost resolution as an alternative to litigation.

(3) $306,000 of the general fund--state appropriation for fiscal year 2014 and $306,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a grant to the retired senior volunteer program.

(4) The department shall administer its growth management act technical assistance and pass-through grants so that smaller cities and counties receive proportionately more assistance than larger cities or counties.

(5) $375,000 of the general fund--state appropriation for fiscal year 2014 and $375,000 of the general fund--state appropriation for fiscal year 2015 are provided solely as pass-through funding to Walla Walla Community College for its water and environmental center.

(6) $1,800,000 of the home security fund--state appropriation is provided for transitional housing assistance or partial payments for rental assistance under the independent youth housing program.

(7) $5,000,000 of the home security fund--state appropriation is for the operation, repair, and staffing of shelters in the homeless family shelter program.

(8) $198,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$198,000~~)) $398,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the Washington new Americans program.

(9) $2,949,000 of the general fund--state appropriation for fiscal year 2014 and $2,949,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for associate development organizations. During the 2013-2015 fiscal biennium, the department shall consider an associate development organization's total resources when making contracting and fund allocation decisions, in addition to the schedule provided in RCW 43.330.086.

(10) $234,000 of the general fund--state appropriation for fiscal year 2014 and $233,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the Washington asset building coalitions.

(11) $5,605,000 of the liquor revolving account--state appropriation is provided solely for the department to contract with the municipal research and services center of Washington.

(12) $500,000 of the general fund--state appropriation for fiscal year 2014 and $500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the purposes of purchasing contracted services to expand and promote the tourism industry in the state of Washington.

(a) The department must contract with the Washington tourism alliance. Expenditure of state moneys is contingent upon the contractor providing a dollar for dollar cash or in-kind match. Funding must be provided for the following services:

(i) Serving as a central point of contact through developing and maintaining a web portal for Washington tourism, operating a call center, and mailing travel guides;

(ii) Promoting Washington as a tourism destination to national and international markets, with emphasis on markets in Europe and Asia;

(iii) Providing information to businesses and local communities on tourism opportunities that could expand local revenues; and

(iv) Conducting tourism-related research, including market research and measuring the return on investment of funded activities.

(b) The department may not use more than 4 percent of the funds to administer, monitor, and report the outcomes of the services. The department must electronically submit performance metrics by January 1, 2014, and report the outcomes of the services by January 1, 2015, to the economic development committees of the legislature.

(c) The department has the authority to designate one or more alternative contractors if necessary due to performance or other significant issues. Such change must only be made after consultation with the Washington tourism alliance, the governor's office, and the chairs and ranking members of the economic development committees of the legislature.

(13) $72,000 of the prostitution prevention and intervention account is provided solely for implementation of Engrossed Substitute House Bill No. 1291 (sex trade victims). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(14) $49,000 of the general fund--state appropriation for fiscal year 2014 and $49,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of House Bill No. 1818 (business and government streamlining). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(15) $36,000 of the general fund--state appropriation for fiscal year 2014 and $37,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to develop an economic cluster strategy to leverage the state's unique maritime assets, geography, history, and infrastructure. Goals include growing employment, targeted economic activity, environmental considerations, tax revenue to state and local governments, and quality of life associated with the maritime sector by working with the industry to understand workforce needs, parity considerations with Oregon and British Columbia, and tax structure and regulatory barriers. The department will report its findings to the appropriate committees of the legislature no later than December 1, 2014.

(16) $2,000,000 of the Washington housing trust account--state appropriation is provided solely for the department of commerce for services to homeless families through the Washington families fund.

(17) $5,000,000 of the home security account--state appropriation is provided solely for the department of commerce to provide emergency assistance to homeless families in the temporary assistance for needy families program.

(18) $75,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the economic development commission to retain one current administrative position. The department shall convene a work group, chaired by the current chair of the economic development commission, of representatives of associate development organizations and the economic development commission to recommend: (1) Changes to the economic development commission's purpose and source and amount of funding; (2) objective benchmarks and outcome-based performance measures for evaluating state investments in economic development; (3) high priority regulatory reforms to foster a favorable business climate for long-term private sector job creation and competitiveness; and (4) organizational roles responsibilities and structures to strengthen cohesive planning, streamline execution, and improve outcomes. The work group shall be comprised of representatives from no less than eight associate development organizations representing both urban and rural counties and counties on both sides of the Cascade range. The department shall submit a report of the work group's recommendation to the fiscal and economic development policy committees of the legislature by December 15, 2013.

(19) ((~~$4,000,000~~)) $2,515,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$850,000~~)) $3,779,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for purposes of creating and operating a community health care and education and innovation center at the Pacific Medical Center in Seattle. Amounts provided in this subsection must be used for lease, maintenance, operations, and other required related expenses for Seattle community colleges allied health programs and other related uses identified by the department of commerce. The department is authorized to enter into a thirty-year lease for the Pacific Medical Center property.

(20) Within the appropriations in this section, the department shall, by December 1, 2013, develop a comprehensive start-up Washington strategy to facilitate the growth of start-ups and enhance the state's competitiveness in recruiting and retaining businesses that start up in Washington. This shall include but is not limited to: Business and occupation tax relief, capital investment, regulatory burdens, workforce and infrastructure needs and support. Start-up businesses interactions with state government and other public entities as a customer shall also be considered.

(21) $700,000 of the general fund--state appropriation for fiscal year 2014 and $700,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to identify and invest in strategic growth areas, support key sectors, and align existing economic development programs and priorities. The department must consider Washington's position as the most trade dependent state when identifying priority investments. The department must engage states and provinces in the northwest as well as associate development organizations, small business development centers, chambers of commerce, ports, and other partners to leverage the funds provided. For each dollar expended the department must receive a one hundred percent match. The match may be provided by the department through nongeneral fund sources, or any partnering governments or organizations. The department must develop performance metrics and milestones. The department must electronically submit the performance metrics and performance-to-date by January 1, 2014, to the economic development committees of the legislature.

(22) The department is authorized to suspend issuing any nonstatutorily required grants or contracts of an amount less than $1,000,000 per year.

(23) The department is authorized to require an applicant to pay an application fee to cover the cost of reviewing the project and preparing an advisory opinion on whether a proposed electric generation project or conservation resource qualifies to meet mandatory conservation targets.

(24) $25,000 of the general fund--state appropriation for fiscal year 2014 and $25,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the economic impact and infrastructure cost study for Covington town center.

(25) The department is directed to work with innovation partnership zone administrators to review the existing grant program, including the criteria for designation as an innovation partnership zone and the grant funding criteria. The department shall submit its report to the legislature by December 1, 2013.

(26) $250,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the implementation of Second Substitute House Bill No. 1072 (agricultural labor skills and safety). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (27) $26,000 of the home security fund account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2415 (homeless status certify). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (28) $67,000 of the general fund--federal appropriation, $111,000 of the public works assistance account--state appropriation, $129,000 of the Washington housing trust account--state appropriation, and $18,000 of the public facility construction loan revolving account--state appropriation are provided solely for the implementation of Substitute House Bill No. 2331 (public works payroll records). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (29) $466,000 of the Washington housing trust account--state appropriation is provided solely for the department to provide one-time funding to the Tacoma housing authority to offset expenses associated with remediating units of low-income housing that have been contaminated by the manufacture or use of methamphetamine. The Tacoma housing authority must be required to provide sufficient documentation to verify the costs associated with remediating units of low-income housing that have been contaminated by the manufacture or use of methamphetamine for which they request support. The department may make full or partial payment once sufficient documentation has been provided.
      (30) If Engrossed Substitute House Bill No. 2368 (homeless housing surcharge) is not enacted by June 30, 2014, the department must, within the amounts appropriated in this section, conduct a study on the impacts in the 2015-2017 and 2017-2019 fiscal biennia of the scheduled reduction of the local homeless housing and assistance document surcharge from $40 in the current biennium to $30 in 2015, and to $10 in 2017. The study must look at a variety of areas including but not limited to estimated impacts on local housing programs, rates of homelessness, criminal justice systems, and private rental markets. The department must submit a report on the findings of this study, to the extent it is required in this subsection, by December 1, 2014.

Sec. 128. 2013 2nd sp.s. c 4 s 129 (uncodified) is amended to read as follows:

FOR THE ECONOMIC AND REVENUE FORECAST COUNCIL

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($764,000))

........................................................................................ $758,000

General Fund‑-State Appropriation (FY 2015)

................................................................................... (($802,000))

........................................................................................ $818,000

Lottery Administrative Account--State Appropriation........ $50,000

TOTAL APPROPRIATION.................................... (($1,616,000))

..................................................................................... $1,626,000

Sec. 129. 2013 2nd sp.s. c 4 s 130 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

General Fund‑-State Appropriation (FY 2014)................................

.............................................................................. (($18,414,000))

................................................................................... $17,949,000

General Fund‑-State Appropriation (FY 2015)................................

.............................................................................. (($17,542,000))

................................................................................... $18,054,000

General Fund‑-Federal Appropriation.............................................

.............................................................................. (($31,340,000))

................................................................................... $34,340,000

General Fund‑-Private/Local Appropriation....................................

........................................................................................ $370,000

Economic Development Strategic Reserve Account--State

Appropriation.................................................................. $289,000

Personnel Service Fund--State Appropriation

................................................................................ (($8,656,000))

..................................................................................... $8,642,000

Data Processing Revolving Account--State

Appropriation.......................................................... (($6,015,000))

..................................................................................... $6,580,000

Higher Education Personnel Services Account--State

Appropriation............................................................... $1,497,000

Performance Audits of Government Account--State

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

TOTAL APPROPRIATION.................................. (($88,123,000))

................................................................................... $91,721,000

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

(1) The office of financial management shall prepare a report outlining alternative methods of procuring health benefits for home care workers, including individual providers and agency providers. In preparing the report, the office of financial management shall consult with the department of social and health services, representatives of individual home care providers, and agency home care providers.

Along with a summary of the current method of providing benefits, the report must include an analysis of the policy and fiscal implications of accessing health benefits through the Washington health benefits exchange. The report must also provide an analysis of a medicaid section 1115 waiver with the federal centers for medicare and medicaid services that would provide additional medicaid matching funds for individual provider home care workers who are provided with health care benefits through a collective bargaining agreement negotiated with the state under chapter 74.39A RCW, but would otherwise be eligible for medicaid under the federal expanded eligibility provisions that take effect January 1, 2014.

The report must be submitted to the appropriate fiscal committees of the legislature by January 6, 2014.

(2) $350,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of Engrossed Second Substitute Senate Bill No. 5802 (greenhouse gas emissions). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(3) $536,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for a study of the state's medical and public assistance eligibility systems and infrastructure with the goal of simplifying procedures, improving customer service, and reducing state expenditures. The study must also examine which state entities play various roles in the eligibility and data verification processes in order to determine if eligibility processes can be further streamlined in light of changes related to the federal affordable care act. The study must identify how costs will be allocated between state and federal funding sources and options for maximizing federal participation. The office of financial management shall provide a report on its findings and recommendations to the relevant policy and fiscal committees of the legislature by January 1, 2014.

(4)(a) The legislature finds that the state's nationally recognized student achievement initiative has led to significant improvements at two-year institutions of higher education. With the goal of creating such efficiencies within the four-year institutions of higher education, the office of financial management shall convene, in coordination with the joint committee on higher education and the student achievement council, a technical incentive funding model task force to propose an incentive funding model for the four-year institutions of higher education. The model will provide new incentive funding to four-year institutions of higher education that demonstrate improvement on existing performance measures and control resident undergraduate tuition growth. Participation in the program is voluntary; however, funding appropriated for this program shall only be available to those institutions that have chosen to participate in the program.

(b) The task force must include the following members:

(i) One representative from the student achievement council;

(ii) One representative from the education data center created in RCW 43.41.400; and

(iii) One representative from each of the four-year institutions of higher education.

(i) A system for allocating new incentive funding to participating institutions based on an institution's:

(A) Performance in specific metrics;

(B) Control and reduction where possible of resident undergraduate and graduate tuition; and

(ii) A methodology for allocating funding for performance as specified in (c)(i)(A) of this subsection that is based on performance metrics reported in the accountability monitoring and reporting system established in RCW 28B.77.090 and that recognizes each institution's unique mission by measuring each institution's performance in these metrics against its past performance;

(iii) A methodology for investing any unallocated incentive funds to the state need grant program created in chapter 28B.92 RCW to expand access to low-income and underserved student populations; and

(iv) A methodology for establishing a baseline level of state funding that:

(A) Fully supports the state's need for an increasing portion of its citizens to gain post-secondary education and qualifications;

(B) Recognizes the acute need of the state's high-technology economy for a sufficient number of graduates in high employer demand programs of study;

(D) Provides for funding enhancements based on demonstrated improvements in institutional performance within the educational achievement and tuition reduction incentive program.

(d) The workgroup shall submit a final report containing an incentive funding model to the governor and higher education and fiscal committees of the legislature by December 31, 2013.

       (5) $121,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the implementation of Substitute House Bill No. 2651 (higher education transparency) and Substitute House Bill No. 2336 (higher education department budgets). If neither of the bills is enacted by June 30, 2014, the amount provided in this subsection shall lapse.
       (6) $37,000 of the data processing revolving account--state appropriation is provided solely for the implementation of Engrossed Second Substitute House Bill No. 2192 (state agency permitting). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
       (7) $262,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the implementation of Substitute House Bill No. 2739 (student success in schools). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
       (8) $300,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for an analysis of statewide jail needs and how operational costs are incurred among local governments. The analysis must examine, among other things, how regional capacity is currently being utilized at the state and local level and the financial impact to counties of providing felon and juvenile detention. A report of findings must be provided to the governor and legislative fiscal committees by November 1, 2014.
       (9) The office of the chief information officer shall survey and review agency security policies and standards including, but not limited to, compliance with employee information technology security training policies and agency standards and policies for decommissioning personal computers. The office must report to the legislature by December 1, 2014 with findings and recommendations from the survey and review.
       (10) The office of financial management and the office of the chief information officer shall survey and review agency policies and standards for hardware, software, and information technology equipment recycle or replacement. The review will include information on the frequency of replacement, financing methods, extent that funds used to recycle/refresh equipment are in the base budgets for agencies, and the extent that agencies are meeting their policies and standards. The office of financial management and the office of the chief information officer must report to the legislature with findings and recommendations from the review by December 1, 2014.
       (11) The office of financial management shall direct state agencies to include an information technology request summary table with each agency budget submission. The table must provide summary information on each budget request that has an information technology component, and must include: The agency's priority ranking of the request among all the agency's information technology requests; the amount of funding being requested in the budget; the estimated total costs and time to complete the item; and a categorization of the request as high, medium, or low priority.
       (12) $300,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for an evidence-based comprehensive study and progress report of staffing ratios and safety assessments in department of corrections facilities. For the purposes of this study, "department of corrections facilities" means facilities operated by the department of corrections to house persons convicted of a criminal offense who are in full confinement.
       (a) The office of financial management shall contract with consultants with expertise related to the subject matters included in this study. The office of financial management and the consultants shall consult with (i) the department of corrections, (ii) stakeholder groups that represent the people served in these institutions, (iii) labor organizations that represent employees who work in these institutions; and (iv) other persons or entities with expertise in the areas being studied.
       (b) In conducting this study, the consultants shall consider the following factors as appropriate: (i) The number and type of staff at each of the department of corrections facilities; (ii) the adequacy and costs of current staffing at department of corrections facilities; (iii) the need, availability, and costs of improving staffing at department of corrections facilities; (iv) the geographic factors associated with staffing department of corrections facilities, including the impact of staffing on the local economy and the economic impact of reducing or increasing staffing at department of corrections facilities; (v) the safety of employees at department of corrections facilities including all reported incidents of assault or other crimes committed against such employees; (vi) a review of all the security-related policies and procedures at department of corrections facilities; (vii) the implementation and consistent application of policy recommendations resulting from the national institute of corrections review of prison safety and the statewide security advisory committee regarding security issues in department of corrections facilities as provided for in chapter 252 Laws of 2011, (ESB 5907).
       (c) The office of financial management shall submit a final report to the governor, the house of representatives and the appropriate policy and fiscal committees of the legislature by December 1, 2014. The report shall provide any recommendations and a plan, if necessary, to improve staffing ratios and employee safety at department of corrections facilities. The report shall include an individual assessment of staffing and safety at each department of corrections facility, and any costs or savings associated with each recommendation. The office of financial management shall submit a report on the progress by the department of corrections of implementing the recommendations and plan to the same committees of the legislature no later than December 1, 2015.

Sec. 130. 2013 2nd sp.s. c 4 s 131 (uncodified) is amended to read as follows:

FOR THE OFFICE OF ADMINISTRATIVE HEARINGS

Administrative Hearings Revolving Account‑-State

Appropriation........................................................ (($37,772,000))

................................................................................... $38,212,000

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

(1) $151,000 of the administrative hearings revolving account--state appropriation is provided solely for replacement of computer equipment, including servers, routers, and storage system upgrades. The amount provided in this subsection is conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(2) $93,000 of the administrative hearings revolving account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2146 (labor and industries appeal bonds). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 131. 2013 2nd sp.s. c 4 s 132 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE LOTTERY

Lottery Administrative Account‑-State

Appropriation........................................................ (($25,696,000))

................................................................................... $25,782,000

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

(1) $596,000 of the lottery administrative account--state appropriation is provided solely for the replacement of the lottery's gaming systems vendor contract.

(2) No portion of this appropriation may be used for acquisition of gaming system capabilities that violates state law.

Sec. 132. 2013 2nd sp.s. c 4 s 133 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON HISPANIC AFFAIRS

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($238,000))

........................................................................................ $235,000

General Fund‑-State Appropriation (FY 2015)

................................................................................... (($235,000))

........................................................................................ $243,000

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

........................................................................................ $478,000

Sec. 133. 2013 2nd sp.s. c 4 s 134 (uncodified) is amended to read as follows:

FOR THE COMMISSION ON AFRICAN-AMERICAN AFFAIRS

General Fund‑-State Appropriation (FY 2014)

................................................................................... (($233,000))

........................................................................................ $238,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................... (($224,000))

........................................................................................ $238,000

TOTAL APPROPRIATION....................................... (($457,000))

........................................................................................ $476,000

Sec. 134. 2013 2nd sp.s. c 4 s 135 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS

General Fund--State Appropriation (FY 2015)

........................................................................................ $594,000

Department of Retirement Systems Expense

Account‑-State Appropriation................................ (($50,728,000))

................................................................................... $50,889,000

TOTAL APPROPRIATION....................................... $51,483,000

The appropriations in this section are subject to the following conditions and limitations:
      (1) $250,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the department of retirement systems to investigate options for private sector retirement accounts. The department of retirement systems is authorized to explore alternatives for retirement savings accounts for employees of private sector and nonprofit organizations, especially workers in small and medium-sized firms. This may include work to develop a plan or plans for submittal to the United States internal revenue service for approval under the tax code. In developing plans, the department shall minimize financial and other liability to the state, as well as the cost of the plan. The department of retirement systems may: (a) Consult with service organizations that promote retirement savings; and (b) partner with any other state, local, or federal agencies engaged in similar efforts to develop retirement savings programs for employees of private and nonprofit sector organizations. The department shall inform the office of financial management of the results of its work under this section by June 30, 2015. The department shall not implement or accept enrollments in any state-run or sponsored retirement savings plan under this subsection without prior legislative approval.
      (2) $344,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of House Bill No. 2474 (save toward retirement plan). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (3) $71,000 of the department of retirement systems expense account--state appropriation is provided solely to implement House Bill No. 2018 (individual employer contribution rates). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 135. 2013 2nd sp.s. c 4 s 136 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF REVENUE

General Fund‑-State Appropriation (FY 2014)

............................................................................ (($107,985,000))

................................................................................. $108,332,000

General Fund‑-State Appropriation (FY 2015)................................

............................................................................ (($106,301,000))

................................................................................. $107,152,000

Timber Tax Distribution Account‑-State

Appropriation.......................................................... (($6,102,000))

..................................................................................... $6,113,000

Waste Reduction/Recycling/Litter Control‑-State

Appropriation.................................................................. $132,000

State Toxics Control Account‑-State Appropriation........... $93,000

((Master License Fund--State Appropriation...................................

................................................................................. $17,082,000))

Business License Account Appropriation........................................

................................................................................... $17,103,000

Data Processing Revolving Account--State Appropriation..............

..................................................................................... $6,751,000

TOTAL APPROPRIATION................................ (($244,446,000))

................................................................................. $245,676,000

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

(1) The department of revenue is authorized to increase the master application fee to nineteen dollars and the renewal fee to eleven dollars consistent with RCW 19.02.075.

(2) $6,751,000 of the data processing revolving account--state appropriation and $4,853,000 of the master license fund--state appropriation are provided solely for the replacement of the department's legacy business systems. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(3) $495,000 of the general fund--state appropriation for fiscal year 2014 and $431,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the implementation of House Bill No. 1971 or Senate Bill No. 5873 (communications services reform). If neither bill is enacted by June 30, 2013, the amounts provided in the subsection shall lapse.

(4) $641,000 of the general fund--state appropriation for fiscal year 2014 and $297,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the implementation of Senate Bill No. 5882 or House Bill No. 2081 (tax preferences and transparency). If neither bill is enacted by June 30, 2013, the amounts provided in the subsection shall lapse.

(5) $65,000 of the general fund--state appropriation for fiscal year 2014 and $93,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Second Substitute House Bill No. 1170 (property tax relief programs). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (6) $292,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Substitute House Bill No. 2201 (state tax preference). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (7) $78,000 of the general fund--state appropriation for fiscal year 2014 and $262,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Second Engrossed Substitute House Bill No. 1467 (unpaid wage collection). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (8) $6,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of Engrossed Substitute House Bill No. 2306 (farm and agricultural land/current use). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (9) $8,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of Second Engrossed Second Substitute House Bill No. 2493 (land use/horticulture). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (10) $14,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Engrossed Substitute House Bill No. 1287 (Indian tribes/property tax). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (11) $25,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Substitute House Bill No. 1634 (property tax levy limit). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (12) The department must consult with counties it determines to be directly affected by the United States open golf championship held in June 2015 in Washington state for the purpose of establishing metrics to estimate the additional state sales tax revenue attributable to that event. The department must report the additional state sales tax revenue attributable to the United States open golf championship to the fiscal committees of the legislature not later than December 1, 2015.

Sec. 136. 2013 2nd sp.s. c 4 s 137 (uncodified) is amended to read as follows:

FOR THE BOARD OF TAX APPEALS

General Fund-‑State Appropriation (FY 2014)

................................................................................ (($1,217,000))

..................................................................................... $1,203,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($1,178,000))

..................................................................................... $1,201,000

TOTAL APPROPRIATION.................................... (($2,395,000))

..................................................................................... $2,404,000

Sec. 137. 2013 2nd sp.s. c 4 s 138 (uncodified) is amended to read as follows:

FOR THE OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES

OMWBE Enterprises Account‑-State Appropriation (($4,077,000))

..................................................................................... $3,500,000

The appropriation in this section is subject to the following conditions and limitations: (($200,000 of the minority and women's business enterprises account--state appropriation is provided for implementation of a certification program for small business enterprises.)) The agency will collaborate with the department of transportation to certify small businesses as small business enterprises. Funding for this work is provided through interagency agreement with the state department of transportation.

Sec. 138. 2013 2nd sp.s. c 4 s 139 (uncodified) is amended to read as follows:

FOR THE INSURANCE COMMISSIONER

General Fund‑-State Appropriation (FY 2014)

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

General Fund--State Appropriation (FY 2015)................................

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

General Fund‑-Federal Appropriation........................... $4,495,000

Health Benefit Exchange Account--State Appropriation.. $676,000

Insurance Commissioners Regulatory Account‑-State

Appropriation........................................................ (($49,555,000))

................................................................................... $50,183,000

TOTAL APPROPRIATION.................................. (($55,126,000))

................................................................................... $55,754,000

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

(1) $676,000 of the health benefit exchange account--state appropriation is provided solely to implement Engrossed Substitute House Bill No. 1947 (Washington health benefit exchange). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(2) The office of the insurance commissioner shall not curtail functions relating to solvency, rates and forms, and consumer protection.

(3) $498,000 of the insurance commissioners regulatory account--state appropriation is provided solely for the implementation of Substitute House Bill No. 2461 (insurance company solvency). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 139. 2013 2nd sp.s. c 4 s 140 (uncodified) is amended to read as follows:

FOR THE STATE INVESTMENT BOARD

State Investment Board Expense Account‑-State

Appropriation........................................................ (($36,035,000))

................................................................................... $36,059,000

Sec. 140. 2013 2nd sp.s. c 4 s 141 (uncodified) is amended to read as follows:

FOR THE LIQUOR CONTROL BOARD

Dedicated Marijuana Fund--State Appropriation

..................................................................................... $7,726,000

Liquor Revolving Account‑-State Appropriation.............................

.............................................................................. (($65,146,000))

................................................................................... $55,951,000

General Fund--Federal Appropriation.............................. $945,000

General Fund--Private/Local Appropriation....................................

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

TOTAL APPROPRIATION.................................. (($66,116,000))

................................................................................... $64,647,000

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

(1) (($2,494,000 of the liquor revolving account--state appropriation is provided solely for the liquor control board to implement Initiative Measure No. 502.
(2)))(a) The liquor control board must work with the department of health and the department of revenue to develop recommendations for the legislature regarding the interaction of medical marijuana regulations and the provisions of Initiative Measure No. 502. At a minimum, the recommendations must include provisions addressing the following:

(i) Age limits;

(ii) Authorizing requirements for medical marijuana;

(iii) Regulations regarding health care professionals;

(iv) Collective gardens;

(v) Possession amounts;

(vi) Location requirements;

(vii) Requirements for medical marijuana producing, processing, and retail licensing;

(viii) Taxation of medical marijuana in relation to recreational marijuana; and

(ix) The state agency that should be the regulatory body for medical cannabis.

(b) The board must submit its recommendations to the appropriate committees of the legislature by January 1, 2014.

(2) For the purposes of RCW 43.88.110(7), any initial cash deficit in the dedicated marijuana fund must be liquidated over the remainder of the 2013-2015 fiscal biennium.
(3) $376,000 of the dedicated marijuana fund--state appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 2149 (medical marijuana). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 141. 2013 2nd sp.s. c 4 s 142 (uncodified) is amended to read as follows:

FOR THE UTILITIES AND TRANSPORTATION COMMISSION

General Fund--Federal Appropriation.............................. $150,000

General Fund--Private/Local Appropriation....................................

.............................................................................. (($11,228,000))

................................................................................... $11,230,000

Public Service Revolving Account‑-State

Appropriation........................................................ (($29,893,000))

................................................................................... $29,946,000

Pipeline Safety Account‑-State Appropriation.................................

................................................................................ (($4,411,000))

..................................................................................... $4,414,000

Pipeline Safety Account‑-Federal Appropriation.............................

..................................................................................... $1,938,000

TOTAL APPROPRIATION.................................. (($47,620,000))

................................................................................... $47,678,000

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

(1) The commission shall work with the Idaho public utilities commission and the public utility commission of Oregon to identify common regulatory functions that can be performed jointly, with the goal of formalizing an agreement that protects essential services while increasing regulatory effectiveness and efficiencies through economies of scale. The commission is authorized to enter into an agreement with such other state public utility commissions to work jointly in administering specified respective regulatory functions.

(2) Up to $200,000 of the total appropriation is provided for the commission to continue to evaluate the regulatory processes for energy companies and identify and implement administrative actions to improve those processes. The commission shall develop and adopt a schedule for such administrative actions.

Sec. 142. 2013 2nd sp.s. c 4 s 143 (uncodified) is amended to read as follows:

FOR THE MILITARY DEPARTMENT

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($1,880,000))

..................................................................................... $1,862,000

General Fund‑-State Appropriation (FY 2015)..............................

................................................................................ (($1,846,000))

..................................................................................... $1,839,000

General Fund‑-Federal Appropriation.............................................

............................................................................ (($140,135,000))

................................................................................. $140,213,000

Enhanced 911 Account‑-State Appropriation..................................

.............................................................................. (($58,514,000))

................................................................................... $58,397,000

Disaster Response Account‑-State Appropriation............................

.............................................................................. (($14,531,000))

................................................................................... $20,292,000

Disaster Response Account‑-Federal Appropriation (($53,253,000))

................................................................................... $69,625,000

Military Department Rent and Lease Account‑-State

Appropriation.................................................................. $615,000

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

Appropriation............................................................... $2,794,000

TOTAL APPROPRIATION................................ (($273,568,000))

................................................................................. $295,637,000

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

(1) ((~~$14,531,000~~)) $20,292,000 of the disaster response account‑-state appropriation and ((~~$53,253,000~~)) $69,625,000 of the disaster response account--federal appropriation may be spent only on disasters declared by the governor and with the approval of the office of financial management. The military department shall submit a report to the office of financial management and the legislative fiscal committees on October 1st and February 1st of each year detailing information on the disaster response account, including: (a) The amount and type of deposits into the account; (b) the current available fund balance as of the reporting date; and (c) the projected fund balance at the end of the 2014-2015 biennium based on current revenue and expenditure patterns.

(2) ((~~$75,000,000~~)) $60,000,000 of the general fund‑-federal appropriation is provided solely for homeland security, subject to the following conditions:

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

(b) The department shall submit an annual report to the office of financial management and the legislative fiscal committees detailing the governor's domestic security advisory group recommendations; homeland security revenues and expenditures, including estimates of total federal funding for the state; and incremental changes from the previous estimate.

(3) $7,000 of the general fund--state appropriation for fiscal year 2014 and $30,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Engrossed Second Substitute House Bill No. 2347 (oil transportation safety). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
(4) $160,000 of the general fund--federal appropriation is provided solely for a grant to the Spokane regional health district for operation of the biosafety level three laboratory in fiscal year 2015.

Sec. 143. 2013 2nd sp.s. c 4 s 144 (uncodified) is amended to read as follows:

FOR THE PUBLIC EMPLOYMENT RELATIONS COMMISSION

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($1,977,000))

..................................................................................... $1,993,000

General Fund‑-State Appropriation (FY 2015)................................

................................................................................ (($2,036,000))

..................................................................................... $2,079,000

Higher Education Personnel Services Account--State

Appropriation............................................................. (($521,000))

........................................................................................ $522,000

Personnel Service Account‑-State Appropriation............................

................................................................................ (($3,300,000))

..................................................................................... $3,334,000

TOTAL APPROPRIATION.................................... (($7,834,000))

..................................................................................... $7,928,000

Sec.144. 2013 2nd sp.s. c 4 s 145 (uncodified) is amended to read as follows:

FOR THE BOARD OF ACCOUNTANCY

Certified Public Accountants' Account‑-State

Appropriation.......................................................... (($2,699,000))

..................................................................................... $2,705,000

Sec. 145. 2013 2nd sp.s. c 4 s 147 (uncodified) is amended to read as follows:

FOR THE HORSE RACING COMMISSION

Horse Racing Commission Operating Account‑-State

Appropriation.......................................................... (($3,552,000))

..................................................................................... $3,475,000

The appropriation in this section is subject to the following conditions and limitations: Pursuant to RCW 43.135.055, the commission is authorized to increase licensing fees by up to five percent in fiscal year 2014 and up to five percent in fiscal year 2015; and background check fees by up to one dollar in fiscal year 2014, and up to one dollar in fiscal year 2015.

Sec. 146. 2013 2nd sp.s. c 4 s 148 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ENTERPRISE SERVICES

General Fund--State Appropriation (FY 2014)

................................................................................ (($3,654,000))

..................................................................................... $3,661,000

General Fund--State Appropriation (FY 2015)................................

................................................................................ (($3,628,000))

..................................................................................... $3,637,000

Building Code Council Account--State Appropriation....................

................................................................................ (($1,227,000))

..................................................................................... $1,228,000

Data Processing Revolving Account--State
Appropriation............................................................... $7,062,000
Enterprise Services Account--State Appropriation..........................

..................................................................................... $2,400,000

TOTAL APPROPRIATION.................................... (($8,509,000))

................................................................................... $17,988,000

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

(1) $3,287,000 of the general fund--state appropriation for fiscal year 2014 and $3,286,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the payment of facilities and services charges, utilities and contracts charges, public and historic facilities charges, and capital projects surcharges allocable to the senate, house of representatives, statute law committee, and joint legislative systems committee. The department shall allocate charges attributable to these agencies among the affected revolving funds. The department shall maintain an interagency agreement with these agencies to establish performance standards, prioritization of preservation and capital improvement projects, and quality assurance provisions for the delivery of services under this subsection. The legislative agencies named in this subsection shall continue to enjoy all of the same rights of occupancy and space use on the capitol campus as historically established.

(2) In accordance with RCW 46.08.172 and 43.135.055, the department is authorized to increase parking fees in fiscal years 2014 and 2015 as necessary to meet the actual costs of conducting business.

(3) The building code council account appropriation is provided solely for the operation of the state building code council as required by statute and modified by the standards established by executive order 10-06. The council shall not consider any proposed code amendment or take any other action not authorized by statute or in compliance with the standards established in executive order 10-06. No member of the council may receive compensation, per diem, or reimbursement for activities other than physical attendance at those meetings of the state building code council or the council's designated committees, at which the opportunity for public comment is provided generally and on all agenda items upon which the council proposes to take action. The building code council shall comply with chapter 19.85 RCW, known as the regulatory fairness act, by including with all proposed substantial code amendments an analysis addressing cost effectiveness, net benefits, payback periods, and life-cycle costs.

((~~(5)~~)) (4) The department of enterprise services shall purchase flags needed for ceremonial occasions on the capitol campus in order to fully represent the countries that have an international consulate in Washington state.

((~~(6)~~)) (5) Before any agency may purchase a passenger motor vehicle as defined in RCW 43.19.560, the agency must have written approval from the director of the department of enterprise services.

((~~(7)~~)) (6) $2,400,000 of the ((~~data processing revolving account~~)) enterprise services account--state appropriation is provided solely for the implementation of a pilot program to implement a strategy and action plan to modernize the state's enterprise financial and administrative systems. The department, the office of financial management, and the office of the chief information officer, will lead the planning effort and establish advisory committees composed of key stakeholders. The plan will include an assessment of the readiness of state government to conduct a business transformation and system replacement project of this scale. The plan shall incorporate the objectives of lean management and should include recommendations on: Project scope, phasing and timeline, expected outcomes and measures of success, product strategy, budget and financing strategy options, risk mitigation, staffing and organization, and strategies to close readiness gaps. The department shall submit the implementation plan to the fiscal committees of the legislature by December 15, ((~~2013~~)) 2014.

The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

((~~(8) $8,013,000~~)) (7) $7,062,000 of the data processing revolving account--state appropriation is provided solely for the implementation of a pilot program to implement a time, leave, and attendance enterprise system. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

((~~(9)~~)) (8) From the fee charged to master contract vendors, the department shall transfer to the office of minority and women's business enterprises in equal monthly installments $2,039,000 in fiscal year 2014 and $2,038,000 in fiscal year 2015.

((~~(10)~~)) (9) The legislature intends to review for purchase parcel number one and surrounding property on McNeil Island. The department shall coordinate with the federal government to obtain an appraisal determining the fair market value and shall provide an estimate to the legislative fiscal committees by October 1, 2013.

(10) Pursuant to chapter 39.94 RCW, the department is authorized to enter into a financing contract for up to $69,000,000 plus financing expenses and required reserves to construct a new office building at 1063 Capitol Way South, Olympia.

Sec. 147. 2013 2nd sp.s. c 4 s 149 (uncodified) is amended to read as follows:

FOR THE BOARD FOR VOLUNTEER FIREFIGHTERS

Volunteer Firefighters' and Reserve Officers'

Administrative Account--State Appropriation

................................................................................ (($1,044,000))

........................................................................................ $967,000

Sec. 148. 2013 2nd sp.s. c 4 s 150 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION

General Fund‑-State Appropriation (FY 2014)

................................................................................ (($1,293,000))

..................................................................................... $1,271,000

General Fund‑-State Appropriation (FY 2015)

................................................................................ (($1,242,000))

..................................................................................... $1,452,000

General Fund--Federal Appropriation........................... $1,950,000

General Fund--Private/Local Appropriation....................................

.......................................................................................... $14,000

TOTAL APPROPRIATION.................................... (($4,499,000))

..................................................................................... $4,687,000

The appropriations in this section are subject to the following conditions and limitations: $120,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for costs associated with the relocation of the department's operations from 1063 Capitol Way to the Lord mansion in Olympia.

NEW SECTION. Sec. 149. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE GAMBLING COMMISSION

Pursuant to RCW 43.135.055, the commission is authorized to increase license fees by up to five percent in fiscal year 2015.

(End of part)

PART II
HUMAN SERVICES

Sec. 201. 2013 2nd sp.s. c 4 s 201 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES

(1) The appropriations to the department of social and health services in this act shall be expended for the programs and in the amounts specified in this act. Appropriations made in this act to the department of social and health services shall initially be allotted as required by this act. Subsequent allotment modifications shall not include transfers of moneys between sections of this act except as expressly provided in this act, nor shall allotment modifications permit moneys that are provided solely for a specified purpose to be used for other than that purpose.

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

(3)(a) The health care authority and the department are authorized to develop an integrated health care program designed to slow the progression of illness and disability and better manage medicaid expenditures for the aged and disabled population. Under the Washington medicaid integration partnership (WMIP) and the medicare integrated care project (MICP), the health care authority and the department may combine and transfer such medicaid funds appropriated under sections 204, 206, 208, and 213 of this act as may be necessary to finance a unified health care plan for the WMIP and the MICP program enrollment. The WMIP pilot projects shall not exceed a daily enrollment of 6,000 persons, nor expand beyond one county during the 2013-2015 fiscal biennium. The amount of funding assigned from each program may not exceed the average per capita cost assumed in this act for individuals covered by that program, actuarially adjusted for the health condition of persons enrolled, times the number of clients enrolled. In implementing the WMIP and the MICP, the health care authority and the department may: (i) Withhold from calculations of "available resources" as set forth in RCW 71.24.025 a sum equal to the capitated rate for enrolled individuals; and (ii) employ capitation financing and risk-sharing arrangements in collaboration with health care service contractors licensed by the office of the insurance commissioner and qualified to participate in both the medicaid and medicare programs.

(b) If Washington has been selected to participate in phase two of the federal demonstration project for persons dually-eligible for both medicare and medicaid, the department and the authority may initiate the MICP. Participation in the project shall be limited to persons who are eligible for both medicare and medicaid and to counties in which the county legislative authority has agreed to the terms and conditions under which it will operate. The purpose of the project shall be to demonstrate and evaluate ways to improve care while reducing state expenditures for persons enrolled both in medicare and medicaid. To that end, prior to initiating the project, the department and the authority shall assure that state expenditures shall be no greater on either a per person or total basis than the state would otherwise incur. Individuals who are solely eligible for medicaid may also participate if their participation is agreed to by the health care authority, the department, and the county legislative authority.

(4) The legislature finds that medicaid payment rates, as calculated by the department pursuant to the appropriations in this act, bear a reasonable relationship to the costs incurred by efficiently and economically operated facilities for providing quality services and will be sufficient to enlist enough providers so that care and services are available to the extent that such care and services are available to the general population in the geographic area. The legislature finds that cost reports, payment data from the federal government, historical utilization, economic data, and clinical input constitute reliable data upon which to determine the payment rates.

(5) The department shall to the maximum extent practicable use the same system for delivery of spoken-language interpreter services for social services appointments as the one established for medical appointments in section 213 of this act. When contracting directly with an individual to deliver spoken language interpreter services, the department shall only contract with language access providers who are working at a location in the state and who are state-certified or state-authorized, except that when such a provider is not available, the department may use a language access provider who meets other certifications or standards deemed to meet state standards, including interpreters in other states.

(6) The department shall facilitate enrollment under the medicaid expansion for clients applying for or receiving state funded services from the department and its contractors. Prior to open enrollment, the department shall coordinate with the health care authority to provide referrals to the Washington health benefit exchange for clients that will be ineligible for the medicaid expansion but are enrolled in coverage that will be eliminated in the transition to the medicaid expansion.

(7)(a) The appropriations to the department of social and health services in this act shall be expended for the programs and in the amounts specified in this act. However, after May 1, 2014, unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 2014 among programs after approval by the director of financial management. However, the department shall not transfer state moneys that are provided solely for a specified purpose except as expressly provided in (b) of this subsection.
(b) To the extent that transfers under (a) of this subsection are insufficient to fund actual expenditures in excess of fiscal year 2014 caseload forecasts and utilization assumptions in the long-term care, foster care, adoptions support, medicaid personal care, and child support programs, the department may transfer state moneys that are provided solely for a specified purpose. The department shall not transfer funds, and the director of financial management shall not approve the transfer, unless the transfer is consistent with the objective of conserving, to the maximum extent possible, the expenditure of state funds. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing seven days prior to approving any allotment modifications or transfers under this subsection. The written notification shall include a narrative explanation and justification of the changes, along with expenditures and allotments by budget unit and appropriation, both before and after any allotment modifications or transfers.

Sec. 202. 2013 2nd sp.s. c 4 s 202 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-CHILDREN AND FAMILY SERVICES PROGRAM

General Fund‑-State Appropriation (FY 2014)..... (($296,676,000))

................................................................................. $297,587,000

General Fund‑-State Appropriation (FY 2015)..... (($297,641,000))

................................................................................. $298,458,000

General Fund‑-Federal Appropriation.................. (($489,939,000))

................................................................................. $493,990,000

General Fund‑-Private/Local Appropriation $1,354,000

Home Security Fund Account--State Appropriation $10,741,000

Domestic Violence Prevention Account--State

Appropriation............................................................... $1,240,000

Child and Family Reinvestment Account--State

Appropriation.......................................................... (($6,491,000))

..................................................................................... $2,647,000
Education Legacy Trust Account--State Appropriation.... $446,000

TOTAL APPROPRIATION............................. (($1,104,082,000))

............................................................................... $1,106,463,000

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

(1) Within amounts provided for the foster care and adoption support programs, the department shall control reimbursement decisions for foster care and adoption support cases such that the aggregate average cost per case for foster care and for adoption support does not exceed the amounts assumed in the projected caseload expenditures.

(2) $668,000 of the general fund--state appropriation for fiscal year 2014 and $668,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to contract for the operation of one pediatric interim care center. The center shall provide residential care for up to thirteen children through two years of age. Seventy-five percent of the children served by the center must be in need of special care as a result of substance abuse by their mothers. The center shall also provide on-site training to biological, adoptive, or foster parents. The center shall provide at least three months of consultation and support to the parents accepting placement of children from the center. The center may recruit new and current foster and adoptive parents for infants served by the center. The department shall not require case management as a condition of the contract.

(3) $538,500 of the general fund--state appropriation for fiscal year 2014, $539,500 of the general fund--state appropriation for fiscal year 2015, $656,000 of the general fund--private/local appropriation, and $253,000 of the general fund--federal appropriation are provided solely for children's administration to contract with an educational advocacy provider with expertise in foster care educational outreach. The amounts in this subsection are provided solely for contracted education coordinators to assist foster children in succeeding in K-12 and higher education systems and to assure a focus on education during the transition to performance based contracts. Funding shall be prioritized to regions with high numbers of foster care youth and/or regions where backlogs of youth that have formerly requested educational outreach services exist. The department shall utilize private matching funds to maintain educational advocacy services.

(4) $10,741,000 of the home security fund--state appropriation is provided solely for the department to contract for services pursuant to RCW 13.32A.030 and 74.15.220. The department shall contract and collaborate with service providers in a manner that maintains the availability and geographic representation of secure and semi-secure crisis residential centers and HOPE centers. To achieve efficiencies and increase utilization, the department shall allow the co-location of these centers, except that a youth may not be placed in a secure facility or the secure portion of a co-located facility except as specifically authorized by chapter 13.32A RCW. The reductions to appropriations in this subsection related to semi-secure crisis residential centers reflect a reduction to the number of beds for semi-secure crisis residential centers and not a reduction in rates. Any secure crisis residential center or semi-secure crisis residential center bed reduction shall not be based solely upon bed utilization. The department is to exercise its discretion in reducing the number of beds but to do so in a manner that maintains availability and geographic representation of semi-secure and secure crisis residential centers.

(5) $125,000 of the general fund--state appropriation for fiscal year 2014 and $125,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a community-based organization that has innovated, developed, and replicated a foster care delivery model that includes a licensed hub home. The community-based organization will provide training and technical assistance to the children's administration to develop five hub home models in region 2 that will improve child outcomes, support foster parents, and encourage the least restrictive community placements for children.

(6) $73,000 of the general fund--state appropriation for fiscal year 2014, $20,000 of the general fund--state appropriation for fiscal year 2015, and $31,000 of the general fund--federal appropriation are provided solely for implementation of Second Substitute House Bill No. 1566 (youth in out-of-home care). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(7) $88,000 of the general fund--state appropriation for fiscal year 2014, $2,000 of the general fund--state appropriation for fiscal year 2015, and $28,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed Substitute House Bill No. 1774 (child welfare system). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(8) $1,698,000 of the general fund--state appropriation for fiscal year 2014, $2,788,000 of the general fund--state appropriation for fiscal year 2015, and $1,894,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed Second Substitute Senate Bill No. 5405 (extended foster care). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(9) $579,000 of the general fund--state appropriation for fiscal year 2014, $579,000 of the general fund--state appropriation for fiscal year 2015, and $109,000 of the general fund--federal appropriation are provided solely for a receiving care center east of the Cascade mountains.

(10)(a) $446,000 of the general fund--state appropriation for fiscal year 2014 and $446,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a contract with a nongovernmental entity or entities to establish one demonstration site in a school district or group of school districts in western Washington.

(b) The children's administration and the nongovernmental entity or entities shall collaboratively select the demonstration site. The demonstration site should be a school district or group of school districts with a significant number of students who are dependent pursuant to chapter 13.34 RCW.

(d) The purpose of the demonstration site is to improve the educational outcomes of students who are dependent pursuant to chapter 13.34 RCW by providing individualized education services and monitoring and supporting dependent youths' completion of educational milestones, remediation needs, and special education needs.

(e) The demonstration site established under this subsection must facilitate the educational progress and graduation of dependent youth. The contract must be performance-based with a stated goal of improving the graduation rates of foster youth by two percent per year over five school year periods, starting with the 2014-15 school year and ending with the 2019-20 school year. The demonstration site must develop and provide services aimed at improving the educational outcomes of foster youth. These services must include:

(i) Direct advocacy for foster youth to eliminate barriers to educational access and success;

(ii) Consultation with department of social and health services case workers to develop educational plans for and with participating youth;

(iii) Monitoring education progress of participating youth;

(iv) Providing participating youth with school and local resources that may assist in educational access and success; and

(v) Coaching youth, caregivers, and social workers to advocate for dependent youth in the educational system.

(f) The contracted nongovernmental entity or entities must report demonstration site outcomes to the department of social and health services and the office of public instruction by June 30, 2014, for the 2013-14 school year, and by June 30, 2015, for the 2014-15 school year.

(g) The children's administration must proactively refer all students fifteen years or older, within the demonstration site area, to the selected nongovernmental entity for educational services.

(h) The children's administration must report quarterly to the legislature on the number of eligible youth and number of youth referred for services beginning at the close of the second quarter of fiscal year 2014 and through the final quarter of fiscal year 2015.

(i) The contracted nongovernmental entity or entities shall report to the legislature by June 30, 2015, on the effectiveness of the demonstration site in increasing graduation rates for dependent youth.

(11) $50,000 of the general fund--state appropriation for fiscal year 2014, and $50,000 of the general fund--state appropriation for fiscal year 2015, and $256,000 of the general fund--federal appropriation are provided solely for implementation of Substitute Senate Bill No. 5315 (Powell fatality team). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(12) $670,000 of the general fund--state appropriation for fiscal year 2014 and $670,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for services provided through children's advocacy centers.

(13)(a) $22,695,000 of the general fund--state appropriation for fiscal year 2014, $22,695,000 of the general fund--state appropriation for fiscal year 2015, and $28,450,000 of the general fund--federal appropriation are provided solely for services for children and families. Prior to approval of contract services pursuant to RCW 74.13B.020, the amounts provided in this section shall be allotted on a monthly basis and expenditures shall not exceed allotments based on a three-month rolling average without approval of the office of financial management following notification to the legislative fiscal committees.

(b) The department shall provide these services to safely reduce the number of children in out-of-home care, the time spent in out-of-home care prior to achieving permanency, and the number of children returning to out-of-home care following permanency.

(14) $244,000 of the general fund--state appropriation for fiscal year 2014, ((~~$1,783,000~~)) $5,832,000 of the general fund--state appropriation for fiscal year 2015, ((~~$6,491,000~~)) $2,647,000 of the child and family reinvestment account--state appropriation, and $8,274,000 of the general fund--federal appropriation, are provided solely for the implementation and operations of the family assessment response program.

      (15) $100,000 of the general fund--state appropriation for fiscal year 2015 and $60,000 of the general fund--federal appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 1675 (adoption process). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (16) $15,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to implement Second Substitute House Bill No. 2616 (parents with developmental disabilities). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (17) $150,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for training, technical assistance, and fidelity oversight for an open source parenting program developed by a university-based child welfare research entity. Expenditure of the amount provided in this subsection is contingent upon the availability of private funds necessary for the research entity to develop the open source parenting curriculum. The children's administration must make the open source parenting program available to parents with an open child welfare case beginning in the last six months of fiscal year 2015.
      (18) Effective January 2015, in addition to the youth eligible for extended foster care services under RCW 13.34.267 and 74.13.031, the department is authorized to provide extended foster care services to nonminor dependents who are engaged in employment for eighty hours or more per month. $83,000 of the general fund--state appropriation for fiscal year 2015 and $23,000 of the general fund--federal appropriation are provided solely for such services.
      (19) Within amounts appropriated in this section, the advisory committee convened by the department in RCW 74.13.096 shall consult with the governor's office of Indian affairs, the Washington state commission on African-American affairs, the Washington state commission on Asian Pacific American affairs, and the Washington state commission on Hispanic affairs to develop membership rules by August 1, 2014. The membership rules must be included in the annual secretary's report required under RCW 74.13.096(6).
      (20) $446,000 of the education legacy trust account--state appropriation and $65,000 of the general fund--federal appropriation are provided solely for implementation of Engrossed Second Substitute House Bill No. 2377 (early care and education). This funding is provided for costs related to the 2 percent quality payments and tiered reimbursement rate increases.

Sec. 203. 2013 2nd sp.s. c 4 s 203 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-JUVENILE REHABILITATION PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($89,967,000))

................................................................................... $89,982,000

General Fund‑-State Appropriation (FY 2015)....... (($90,255,000))

................................................................................... $89,889,000

General Fund‑-Federal Appropriation........................... $3,464,000

General Fund‑-Private/Local Appropriation.................. $1,981,000

Washington Auto Theft Prevention Authority Account--

State Appropriation.......................................................... $196,000

Reinvesting in Youth--State Appropriation...................... $383,000

Juvenile Accountability Incentive Account‑-Federal

Appropriation............................................................... $2,801,000

TOTAL APPROPRIATION................................ (($189,047,000))

................................................................................. $188,696,000

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

(1) $331,000 of the general fund--state appropriation for fiscal year 2014 and $331,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for deposit in the county criminal justice assistance account for costs to the criminal justice system associated with the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county adult court costs associated with the implementation of chapter 338, Laws of 1997 and shall be distributed in accordance with RCW 82.14.310.

(2) $2,716,000 of the general fund--state appropriation for fiscal year 2014 and $2,716,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the implementation of chapter 338, Laws of 1997 (juvenile code revisions). The amounts provided in this subsection are intended to provide funding for county impacts associated with the implementation of chapter 338, Laws of 1997 and shall be distributed to counties as prescribed in the current consolidated juvenile services (CJS) formula.

(3) $3,482,000 of the general fund--state appropriation for fiscal year 2014 and $3,482,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to implement community juvenile accountability grants pursuant to chapter 338, Laws of 1997 (juvenile code revisions). Funds provided in this subsection may be used solely for community juvenile accountability grants, administration of the grants, and evaluations of programs funded by the grants.

(4) $1,130,000 of the general fund--state appropriation for fiscal year 2014 and $1,130,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to implement alcohol and substance abuse treatment programs for locally committed offenders. The juvenile rehabilitation administration shall award these moneys on a competitive basis to counties that submitted a plan for the provision of services approved by the division of alcohol and substance abuse. The juvenile rehabilitation administration shall develop criteria for evaluation of plans submitted and a timeline for awarding funding and shall assist counties in creating and submitting plans for evaluation.

(5) $3,123,000 of the general fund--state appropriation for fiscal year 2014 and $3,123,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for grants to county juvenile courts for the following programs identified by the Washington state institute for public policy (institute) in its October 2006 report: "Evidence-Based Public Policy Options to Reduce Future Prison Construction, Criminal Justice Costs and Crime Rates": Functional family therapy, multi-systemic therapy, aggression replacement training and interagency coordination programs, or other programs with a positive benefit-cost finding in the institute's report. County juvenile courts shall apply to the juvenile rehabilitation administration for funding for program-specific participation and the administration shall provide grants to the courts consistent with the per-participant treatment costs identified by the institute.

(6) $1,537,000 of the general fund--state appropriation for fiscal year 2014 and $1,537,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for expansion of the following treatments and therapies in juvenile rehabilitation administration programs identified by the Washington state institute for public policy in its October 2006 report: "Evidence-Based Public Policy Options to Reduce Future Prison Construction, Criminal Justice Costs and Crime Rates": Multidimensional treatment foster care, family integrated transitions, and aggression replacement training, or other programs with a positive benefit-cost finding in the institute's report. The administration may concentrate delivery of these treatments and therapies at a limited number of programs to deliver the treatments in a cost-effective manner.

(7)(a) The juvenile rehabilitation administration shall administer a block grant, rather than categorical funding, of consolidated juvenile service funds, community juvenile accountability act grants, the chemical dependency disposition alternative funds, the mental health disposition alternative, and the sentencing disposition alternative for the purpose of serving youth adjudicated in the juvenile justice system. In making the block grant, the juvenile rehabilitation administration shall follow the following formula and will prioritize evidence-based programs and disposition alternatives and take into account juvenile courts program-eligible youth in conjunction with the number of youth served in each approved evidence-based program or disposition alternative: (i) Thirty-seven and one-half percent for the at-risk population of youth ten to seventeen years old; (ii) fifteen percent for moderate and high-risk youth; (iii) twenty-five percent for evidence-based program participation; (iv) seventeen and one-half percent for minority populations; (v) three percent for the chemical dependency disposition alternative; and (vi) two percent for the mental health and sentencing dispositional alternatives. Funding for the special sex offender disposition alternative (SSODA) shall not be included in the block grant, but allocated on the average daily population in juvenile courts. Funding for the evidence-based expansion grants shall be excluded from the block grant formula. Funds may be used for promising practices when approved by the juvenile rehabilitation administration and juvenile courts, through the community juvenile accountability act committee, based on the criteria established in consultation with Washington state institute for public policy and the juvenile courts.

(b) The juvenile rehabilitation administration and the juvenile courts shall establish a block grant funding formula oversight committee with equal representation from the juvenile rehabilitation administration and the juvenile courts. The purpose of this committee is to assess the ongoing implementation of the block grant funding formula, utilizing data-driven decision making and the most current available information. The committee will be cochaired by the juvenile rehabilitation administration and the juvenile courts, who will also have the ability to change members of the committee as needed to achieve its purpose. Initial members will include one juvenile court representative from the finance committee, the community juvenile accountability act committee, the risk assessment quality assurance committee, the executive board of the Washington association of juvenile court administrators, the Washington state center for court research, and a representative of the superior court judges association; two representatives from the juvenile rehabilitation administration headquarters program oversight staff, two representatives of the juvenile rehabilitation administration regional office staff, one representative of the juvenile rehabilitation administration fiscal staff and a juvenile rehabilitation administration division director. The committee may make changes to the formula categories other than the evidence-based program and disposition alternative categories if it is determined the changes will increase statewide service delivery or effectiveness of evidence-based program or disposition alternative resulting in increased cost benefit savings to the state. Long-term cost benefit must be considered. Percentage changes may occur in the evidence-based program or disposition alternative categories of the formula should it be determined the changes will increase evidence-based program or disposition alternative delivery and increase the cost benefit to the state. These outcomes will also be considered in determining when evidence-based expansion or special sex offender disposition alternative funds should be included in the block grant or left separate.

(c) The juvenile courts and administrative office of the courts shall be responsible for collecting and distributing information and providing access to the data systems to the juvenile rehabilitation administration and the Washington state institute for public policy related to program and outcome data. The juvenile rehabilitation administration and the juvenile courts will work collaboratively to develop program outcomes that reinforce the greatest cost benefit to the state in the implementation of evidence-based practices and disposition alternatives.

(8) The juvenile courts and administrative office of the courts shall collect and distribute information related to program outcome and provide access to these data systems to the juvenile rehabilitation administration and Washington state institute for public policy. The agreements between administrative office of the courts, the juvenile courts, and the juvenile rehabilitation administration shall be executed to ensure that the juvenile rehabilitation administration receives the data that the juvenile rehabilitation administration identifies as needed to comply with this subsection. This includes, but is not limited to, information by program at the statewide aggregate level, individual court level, and individual client level for the purpose of the juvenile rehabilitation administration providing quality assurance and oversight for the locally committed youth block grant and associated funds and at times as specified by the juvenile rehabilitation administration as necessary to carry out these functions. The data shall be provided in a manner that reflects the collaborative work the juvenile rehabilitation administration and juvenile courts have developed regarding program outcomes that reinforce the greatest cost benefit to the state in the implementation of evidence-based practices and disposition alternatives.

(9) $445,000 of the general fund--state appropriation for fiscal year 2014 and $445,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for funding of the teamchild project.

(10) $178,000 of the general fund--state appropriation for fiscal year 2014 and $178,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the juvenile detention alternatives initiative.

(11) $250,000 of the general fund--state appropriation for fiscal year 2014 and $250,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a grant program focused on criminal street gang prevention and intervention. The Washington state partnership council on juvenile justice may award grants under this subsection. The council shall give priority to applicants who have demonstrated the greatest problems with criminal street gangs. Applicants composed of, at a minimum, one or more local governmental entities and one or more nonprofit, nongovernmental organizations that have a documented history of creating and administering effective criminal street gang prevention and intervention programs may apply for funding under this subsection.

(12) $100,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to implement Engrossed Substitute House Bill No. 2164 (juvenile firearms offenders). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
(13) $500,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for competitive grants to community-based organizations to provide at-risk youth intervention services, including but not limited to, case management, employment services, educational services, and street outreach intervention programs. Projects funded should focus on preventing, intervening, and suppressing behavioral problems and violence while linking at-risk youth to pro-social activities. The costs of administration may not exceed four percent of appropriated funding for each grant recipient. Each entity receiving funds must report to the juvenile rehabilitation administration on the number and types of youth served, the services provided, and the impact of those services upon the youth and the community.

Sec. 204. 2013 2nd sp.s. c 4 s 204 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-MENTAL HEALTH PROGRAM

(1) COMMUNITY SERVICES/REGIONAL SUPPORT NETWORKS

General Fund‑-State Appropriation (FY 2014)..... (($327,467,000))

................................................................................. $328,527,000

General Fund‑-State Appropriation (FY 2015)..... (($308,723,000))

................................................................................. $329,211,000

General Fund‑-Federal Appropriation.................. (($561,394,000))

................................................................................. $666,113,000

General Fund‑-Private/Local Appropriation................ $17,864,000

TOTAL APPROPRIATION............................. (($1,215,448,000))

............................................................................... $1,341,715,000

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

(a) $104,999,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$85,895,000~~)) $88,895,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for persons and services not covered by the medicaid program. To the extent possible, levels of regional support network spending shall be maintained in the following priority order: Crisis and commitment services; community inpatient services; and residential care services, including personal care and emergency housing assistance. This is a reduction in flexible nonmedicaid funding of $4,343,000 for fiscal year 2014 and ((~~$23,446,000~~)) $20,446,000 for fiscal year 2015. This reduction reflects offsets in state funding related to services that will now be funded with federal dollars through the affordable care act medicaid expansion. This reduction shall be distributed ((~~as follows:~~
~~(i) The $4,343,000 reduction in fiscal year 2014 and $11,723,000 of the reduction in fiscal year 2015 must be distributed~~)) among regional support networks based on a formula that equally weights each regional support networks proportion of individuals who become newly eligible and enroll in medicaid under the expansion provisions of the affordable care act ((~~in fiscal year 2014~~)) and each regional support network's spending of flexible nonmedicaid funding on services that would be reimbursable for federal medicaid matching funds if provided to medicaid enrollees in the 2011-2013 fiscal biennium.

(((ii) The remaining $11,723,000 reduction in fiscal year 2015 must be distributed among regional support networks based on each regional support network's proportion of individuals who become newly eligible and enroll in medicaid under the expansion provisions of the affordable care act through fiscal year 2015.))

(b) $6,590,000 of the general fund--state appropriation for fiscal year 2014, $6,590,000 of the general fund--state appropriation for fiscal year 2015, and $7,620,000 of the general fund--federal appropriation are provided solely for the department and regional support networks to continue to contract for implementation of high-intensity programs for assertive community treatment (PACT) teams. In determining the proportion of medicaid and nonmedicaid funding provided to regional support networks with PACT teams, the department shall consider the differences between regional support networks in the percentages of services and other costs associated with the teams that are not reimbursable under medicaid. The department may allow regional support networks which have nonmedicaid reimbursable costs that are higher than the nonmedicaid allocation they receive under this section to supplement these funds with local dollars or funds received under section 204(1)(a) of this act. The department and regional support networks shall maintain consistency with all essential elements of the PACT evidence-based practice model in programs funded under this section.

(c) $5,850,000 of the general fund--state appropriation for fiscal year 2014, $5,850,000 of the general fund--state appropriation for fiscal year 2015, and $1,300,000 of the general fund--federal appropriation are provided solely for the western Washington regional support networks to provide either community- or hospital campus-based services for persons who require the level of care previously provided by the program for adaptive living skills (PALS) at western state hospital.

(d) The number of nonforensic beds allocated for use by regional support networks at eastern state hospital shall be 192 per day. The number of nonforensic beds allocated for use by regional support networks at western state hospital shall be 557 per day.

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

(f) The department is authorized to continue to contract directly, rather than through contracts with regional support networks, for children's long-term inpatient facility services.

(g) $750,000 of the general fund--state appropriation for fiscal year 2014 and $750,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to continue performance-based incentive contracts to provide appropriate community support services for individuals with severe mental illness who were discharged from the state hospitals as part of the expanding community services initiative. These funds will be used to enhance community residential and support services provided by regional support networks through other state and federal funding.

(h) $1,125,000 of the general fund--state appropriation for fiscal year 2014 and $1,125,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the Spokane regional support network to implement services to reduce utilization and the census at eastern state hospital. Such services shall include:

(i) High intensity treatment team for persons who are high utilizers of psychiatric inpatient services, including those with co-occurring disorders and other special needs;

(ii) Crisis outreach and diversion services to stabilize in the community individuals in crisis who are at risk of requiring inpatient care or jail services;

(iii) Mental health services provided in nursing facilities to individuals with dementia, and consultation to facility staff treating those individuals; and

(iv) Services at the sixteen-bed evaluation and treatment facility.

At least annually, the Spokane regional support network shall assess the effectiveness of these services in reducing utilization at eastern state hospital, identify services that are not optimally effective, and modify those services to improve their effectiveness.

(i) $1,529,000 of the general fund--state appropriation for fiscal year 2014 and $1,529,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to reimburse Pierce and Spokane counties for the cost of conducting 180-day commitment hearings at the state psychiatric hospitals.

(j) Regional support networks may use local funds to earn additional federal medicaid match, provided the locally matched rate does not exceed the upper-bound of their federally allowable rate range, and provided that the enhanced funding is used only to provide medicaid state plan or waiver services to medicaid clients. Additionally, regional support networks may use a portion of the state funds allocated in accordance with (a) of this subsection to earn additional medicaid match, but only to the extent that the application of such funds to medicaid services does not diminish the level of crisis and commitment, community inpatient, residential care, and outpatient services presently available to persons not eligible for medicaid.

(k) $3,436,000 of the general fund--state appropriation for fiscal year 2014 and $2,291,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for mental health services for mentally ill offenders while confined in a county or city jail and for facilitating access to programs that offer mental health services upon release from confinement.

(l) $523,000 of the general fund--state appropriation for fiscal year 2014, $775,000 of the general fund--state appropriation for fiscal year 2015, and $854,000 of the general fund--federal appropriation are provided solely for implementation of sections 3 through 5 of chapter 289, Laws of 2013 (E2SHB 1114). Regional support networks must use this funding for the development of intensive community programs that allow individuals to be diverted or transitioned from the state hospitals in accordance with plans approved by the department.

(m) $5,986,000 of the general fund--state appropriation for fiscal year 2014, $11,592,000 of the general fund--state appropriation for fiscal year 2015, and $10,160,000 of the general fund--federal appropriation are provided solely for implementation of chapter 335, Laws of 2013 (ESSB 5480). Regional support networks must use this funding for the development of intensive community programs that allow individuals to be diverted or transitioned from the state hospitals in accordance with plans approved by the department.

(n) Due to recent approval of federal medicaid matching funds for the disability lifeline and the alcohol and drug abuse treatment support act programs, the department shall charge regional support networks for only the state share rather than the total cost of community psychiatric hospitalization for persons enrolled in those programs.

(o) The legislature finds that the circumstances of the Chelan-Douglas regional support network (CD-RSN) make it necessary for CD-RSN to undergo restructuring in order to provide mental health services essential to the health and wellness of the citizens within its service area. The legislature intends to provide additional temporary financial relief to the CD-RSN while it undergoes internal restructuring or negotiates a merger with another regional support network.

The department shall negotiate relief for outstanding fiscal year 2013 reimbursements owed by CD-RSN to the state provided that the CD-RSN has a plan in place that is approved by the department by August 1, 2013, that demonstrates how CD-RSN will maintain financial viability and stability or will merge with another regional support network.

For the period of July 1, 2013, through December 31, 2013, the department may alter collection of reimbursement from CD-RSN for overuse of state hospital beds. To receive a reduction to the required reimbursement for overuse of state hospital beds, CD-RSN must continue to prioritize services that reduce its utilization and census at eastern state hospital and be actively implementing an approved plan to maintain financial viability or pursuing a future merger with another regional support network. Up to $298,000 of the general fund--state appropriation for fiscal year 2014 is for the department to provide payments to regional support networks in eastern Washington which have used less than their allocated or contracted patient days of care at the state hospital to replace the share of the reimbursements from CD-RSN that the regional support networks would have received under RCW 71.24.320.

(p) $266,000 of the general fund--state appropriation for fiscal year 2014 ((is)) and $1,500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to maintain services for the King county regional support network as it works to transition services to settings that are eligible for federal participation for individuals covered under the medicaid program.

(q) Within the amounts appropriated in this section, funding is provided for the department to develop and phase in intensive mental health services for high needs youth consistent with the settlement agreement in T.R. v. Dreyfus and Porter.
(r) $7,281,000 of the general fund--state appropriation for fiscal year 2015 and $4,589,000 of the general fund--federal appropriation are provided solely for implementation of Substitute House Bill No. 2725 (involuntary commitment) and enhancement of community mental health services. The department must contract these funds for the operation of the following community programs that allow individuals to be diverted or transitioned from the state hospitals: (i) Community hospital or free standing evaluation and treatment services providing short-term detention and commitment services under the involuntary treatment act to be located in the geographic areas of the King regional support network, the Spokane regional support network outside of Spokane county, and the Thurston Mason regional support network; (ii) one new full program of an assertive community treatment team in the King regional support network and two new half programs of assertive community treatment teams in the Spokane regional support network and the Pierce regional support network; and (iii) three new recovery support services programs in the Grays Harbor regional support network, the Greater Columbia regional support network, and the North Sound regional support network. In contracting for community evaluation and treatment services, the department may not use these resources in facilities that meet the criteria to be classified under federal law as institutions for mental diseases. If the department is unable to come to a contract agreement with a designated regional support network for any of the services identified above, it may consider contracting for that service in another regional support network that has the need for such service.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 2014)..... (($135,246,000))

................................................................................. $141,113,000

General Fund‑-State Appropriation (FY 2015)..... (($131,863,000))

................................................................................. $130,819,000

General Fund‑-Federal Appropriation.................. (($150,863,000))

................................................................................. $159,324,000

General Fund‑-Private/Local Appropriation........... (($63,097,000))

................................................................................... $58,848,000

TOTAL APPROPRIATION................................ (($481,069,000))

................................................................................. $490,104,000

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

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

(b) $231,000 of the general fund--state appropriation for fiscal year 2014 and $231,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a community partnership between western state hospital and the city of Lakewood to support community policing efforts in the Lakewood community surrounding western state hospital. The amounts provided in this subsection (2)(b) are for the salaries, benefits, supplies, and equipment for one full-time investigator, one full-time police officer, and one full-time community service officer at the city of Lakewood.

(c) $45,000 of the general fund--state appropriation for fiscal year 2014 and $45,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for payment to the city of Lakewood for police services provided by the city at western state hospital and adjacent areas.

(d) $20,000,000 of the general fund--state appropriation for fiscal year 2014 and $20,000,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to maintain staffed capacity to serve an average daily census in forensic wards at western state hospital of 270 patients per day.

(e) ((~~$2,068,000~~)) $6,194,000 of the general fund--state appropriation for fiscal year 2014, $2,066,000 of the general fund--state appropriation for fiscal year 2015, and $240,000 of the general fund--federal appropriation are provided solely for the state psychiatric hospitals to plan, procure, and implement the core elements of an electronic medical record system that is compliant with the international classification of diseases (ICD-10) by October 1, 2014. These funds must only be used for an electronic medical record system that meets federal criteria for electronic sharing of patient information and clinical care summaries with doctors' offices, hospitals, and health systems which use federally certified electronic health record systems. The procurement and implementation shall be conducted to allow for these services to be expanded to the department of corrections. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(3) SPECIAL PROJECTS

General Fund‑-State Appropriation (FY 2014)......... (($1,609,000))

..................................................................................... $1,612,000

General Fund‑-State Appropriation (FY 2015)......... (($1,610,000))

..................................................................................... $1,613,000

General Fund‑-Federal Appropriation........................... $6,286,000

TOTAL APPROPRIATION.................................... (($9,505,000))

..................................................................................... $9,511,000

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

(a) $1,161,000 of the general fund--state appropriation for fiscal year 2014 and $1,161,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for children's evidence-based mental health services.

(b) $446,000 of the general fund--state appropriation for fiscal year 2014, $446,000 of the general fund--state appropriation for fiscal year 2015, and $178,000 of the general fund--federal appropriation are provided solely for the University of Washington's evidence-based practice institute which supports the identification, evaluation, and implementation of evidence-based or promising practices. The institute must work with the department to develop a plan to seek private, federal, or other grant funding in order to reduce the need for state general funds. The institute and the department must submit this plan to the office of financial management and the fiscal committees of the legislature by December 1, 2013.

(4) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 2014)......... (($5,287,000))

..................................................................................... $6,153,000

General Fund‑-State Appropriation (FY 2015)......... (($4,777,000))

..................................................................................... $7,486,000

General Fund‑-Federal Appropriation...................... (($7,711,000))

..................................................................................... $9,443,000

General Fund--Private/Local Appropriation..................... $502,000

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

................................................................................... $23,584,000

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

(a) In accordance with RCW 43.20B.110, 43.135.055, and 71.24.035, the department is authorized to adopt license and certification fees in fiscal years 2014 and 2015 to support the costs of the regulatory program. The department's fee schedule shall have differential rates for providers with proof of accreditation from organizations that the department has determined to have substantially equivalent standards to those of the department, including but not limited to the joint commission on accreditation of health care organizations, the commission on accreditation of rehabilitation facilities, and the council on accreditation. To reflect the reduced costs associated with regulation of accredited programs, the department's fees for organizations with such proof of accreditation must reflect the lower costs of licensing for these programs than for other organizations which are not accredited.

(b) $74,000 of the general fund--state appropriation for fiscal year 2014, $74,000 of the general fund--state appropriation for fiscal year 2015, and $78,000 of the general fund--federal appropriation are provided solely for implementation of chapter 335, Laws of 2013 (ESSB 5480).

(c) $160,000 of the general fund--state appropriation for fiscal year 2014 and $80,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of chapter 284, Laws of 2013 (ESSB 5551).

(d) In developing the new medicaid managed care rates under which the public mental health managed care system will operate, the department must seek to estimate the reasonable and necessary cost of efficiently and effectively providing a comparable set of medically necessary mental health benefits to persons of different acuity levels regardless of where in the state they live. The department must report to the office of financial management and to the relevant fiscal and policy committees of the legislature on its proposed new mental health managed care rate-setting approach by August 1, 2013, and again at least sixty days prior to implementation of new capitation rates.

(e) $349,000 of the general fund--state appropriation for fiscal year 2014, $212,000 of the general fund--state appropriation for fiscal year 2015, and $302,000 of the general fund--federal appropriation are provided solely to implement chapter 320, Laws of 2013 (ESHB 1519) and chapter 338, Laws of 2013 (2SSB 5732).

(f) The department shall work cooperatively with the health care authority to explore the feasibility of incentivizing small, rural hospitals to convert, in part or fully, some of their beds to psychiatric treatment beds. No later than December 31, 2014, the department shall report to the appropriate fiscal committees of the legislature on the feasibility of such conversion. The report shall consider rate enhancements and the ability to claim federal medicaid matching funds on converted beds.

(g) $75,000 of the general fund--state appropriation for fiscal year 2014 and $21,000 of the general fund--federal appropriation are provided for implementation of section 9, chapter 197, Laws of 2013 (ESHB 1336). The department must utilize these funds for mental health first aid training targeted at teachers and educational staff in accordance with the training model developed by the department of psychology in Melbourne, Australia.

(h) Within the amounts appropriated in this section, funding is provided for the department to continue to develop the child adolescent needs and strengths assessment tool and build workforce capacity to provide evidence based wraparound services for children, consistent with the ((~~anticipated~~)) settlement agreement in T.R. v. Dreyfus and Porter.

(i) $610,000 of the general fund--state appropriation for fiscal year 2014, $1,193,000 of the general fund--state appropriation for fiscal year 2015, and $971,000 of the general fund--federal appropriation are provided solely for the implementation of Engrossed Second Substitute House Bill No. 2639 (mental health, chemical dependency) and Engrossed Substitute House Bill No. 2315 (suicide prevention). If Second Substitute House Bill No. 2639 (mental health, chemical dependency) is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
(j) $70,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the department to contract with the criminal justice training commission for training officers on working with individuals with mental health issues.

Sec. 205. 2013 2nd sp.s. c 4 s 205 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-DEVELOPMENTAL DISABILITIES PROGRAM

(1) COMMUNITY SERVICES

General Fund‑-State Appropriation (FY 2014)..... (($439,963,000))

................................................................................. $445,988,000

General Fund‑-State Appropriation (FY 2015)..... (($458,131,000))

................................................................................. $474,995,000

General Fund‑-Federal Appropriation.................. (($820,769,000))

................................................................................. $838,228,000

General Fund--Private/Local Appropriation.................. (($21,000))

........................................................................................ $776,000

TOTAL APPROPRIATION............................. (($1,718,884,000))

............................................................................... $1,759,987,000

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

(a) Individuals receiving services as supplemental security income (SSI) state supplemental payments shall not become eligible for medical assistance under RCW 74.09.510 due solely to the receipt of SSI state supplemental payments.

(b) In accordance with RCW 18.51.050, 18.20.050, 70.128.060, and 43.135.055, the department is authorized to increase nursing facility, assisted living facility, and adult family home fees as necessary to fully support the actual costs of conducting the licensure, inspection, and regulatory programs. The license fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the license fee attributed to medicaid clients.

(i) The current annual renewal license fee for adult family homes shall be increased to $225 per bed beginning in fiscal year 2014 and $225 per bed beginning in fiscal year 2015. A processing fee of $2,750 shall be charged to each adult family home when the home is initially licensed. This fee is nonrefundable.

(ii) The current annual renewal license fee for assisted living facilities shall be increased to $106 per bed beginning in fiscal year 2014 and $106 per bed beginning in fiscal year 2015.

(iii) The current annual renewal license fee for nursing facilities shall be increased to $359 per bed beginning in fiscal year 2014 and $359 per bed beginning in fiscal year 2015.

(c) ((~~$13,301,000~~)) $13,267,000 of the general fund--state appropriation for fiscal year 2014, ((~~$20,607,000~~)) $20,754,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$33,910,000~~)) $34,024,000 of the general fund federal appropriation are provided solely for the implementation of the agreement reached between the governor and the service employees international union healthcare 775nw through an interest arbitration decision under the provisions of chapters 74.39A and 41.56 RCW for the 2013-2015 fiscal biennium.

(d) $6,244,000 of the general fund--state appropriation for fiscal year 2014 and $6,244,000 of the general fund--state appropriation for fiscal year 2015 are appropriated solely for the individual and family support program. Within these amounts, the department shall expand the current number of clients receiving services and focus on extending services to individuals with developmental disabilities who are not otherwise receiving paid services from the department.

((~~(f) $1,547,000~~)) (e) $774,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$4,790,000~~)) $2,395,000 of the general fund--federal appropriation are provided solely for a payment system that satisfies medicaid requirements regarding time reporting for W-2 providers. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

((~~(g)~~)) (f) $1,707,000 of the general fund--state appropriation for fiscal year 2014, $2,670,000 of the general fund--state appropriation for fiscal year 2015, and $4,376,000 of the general fund--federal appropriation are provided solely for the homecare agency parity impacts of the service employees international union healthcare 775nw arbitration award.

((~~(h)~~)) (g) The department is authorized to establish limited exemption criteria in rule to address RCW 74.39A.325 when a landline phone is not available to the employee.

(h) $242,000 of the general fund--federal appropriation and $241,000 of the general fund--local appropriation are provided solely to implement Second Substitute House Bill No. 1574 (residential services and supports). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse. In accordance with Second Substitute House Bill No. 1574, the department is authorized to increase supported living fees as necessary to support the actual costs of conducting the certification, inspection, and regulatory programs. The certification fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the certification fee attributed to medicaid clients. The annual certification fee for supported living shall be $128 per client beginning in fiscal year 2015.
      (i) $91,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to implement Substitute House Bill No. 2310 (provider safety equipment). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (j) The department may authorize a one-time waiver of all or any portion of the licensing and processing fees required under RCW 70.128.060 in any case in which the department determines that an adult family home is being relicensed because of exceptional circumstances, such as death or incapacity of a provider, and that to require the full payment of the licensing and processing fees would present a hardship to the applicant.
      (k) The department of social and health services shall increase the benchmark rates for community residential service businesses providing supported living, group home, and licensed staff residential services for people with developmental disabilities by thirty cents starting July 1, 2014.
      (l) It is the intent of the legislature to use savings from the community first choice option to make needed investments in home and community-based services for seniors and people with disabilities, including potential investments recommended by the joint legislative executive committee on aging and disability and a development and implementation council that the department of social and health services must convene prior to submitting the proposed community first choice option to the centers for medicare and medicaid services. At a minimum, the final report to the legislature from the joint legislative executive committee on aging and disability must explore the cost and benefit of rate enhancements for providers of long-term services and supports, restoration of hours for in-home clients, additional investment in the family caregiver support program, and additional investment in the individual and family services program or other medicaid services to support individuals with developmental disabilities.

(2) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 2014)....... (($85,261,000))

................................................................................... $85,962,000

General Fund‑-State Appropriation (FY 2015)....... (($84,980,000))

................................................................................... $85,812,000

General Fund‑-Federal Appropriation.................. (($160,021,000))

................................................................................. $161,630,000

General Fund‑-Private/Local Appropriation................ $23,041,000

TOTAL APPROPRIATION................................ (($353,303,000))

................................................................................. $356,445,000

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

(b) $721,000 of the general fund--state appropriation for fiscal year 2014 and $721,000 of the general fund--state appropriation for fiscal year 2015 are for the department to fulfill its contracts with the school districts under chapter 28A.190 RCW to provide transportation, building space, and other support services as are reasonably necessary to support the educational programs of students living in residential habilitation centers.

(3) PROGRAM SUPPORT

General Fund‑-State Appropriation (FY 2014)......... (($1,943,000))

..................................................................................... $1,975,000

General Fund‑-State Appropriation (FY 2015)....... (($1,993,000))

..................................................................................... $2,025,000

General Fund‑-Federal Appropriation...................... (($1,957,000))

..................................................................................... $2,068,000

TOTAL APPROPRIATION.................................... (($5,893,000))

..................................................................................... $6,068,000

.............................................................. (4) SPECIAL PROJECTS

General Fund--State Appropriation (FY 2014)......... (($1,400,000))

..................................................................................... $1,403,000

General Fund--State Appropriation (FY 2015)......... (($1,400,000))

..................................................................................... $1,403,000

General Fund--Federal Appropriation...................... (($1,200,000))

..................................................................................... $1,206,000

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

..................................................................................... $4,012,000

Sec. 206. 2013 2nd sp.s. c 4 s 206 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-AGING AND ADULT SERVICES PROGRAM

General Fund‑-State Appropriation (FY 2014)..... (($869,628,000))

................................................................................. $860,212,000

General Fund‑-State Appropriation (FY 2015)..... (($923,218,000))

................................................................................. $915,709,000

General Fund‑-Federal Appropriation................ (($1,934,089,000))

............................................................................... $1,902,764,000

General Fund‑-Private/Local Appropriation........... (($30,122,000))

................................................................................... $33,707,000

Traumatic Brain Injury Account‑-State Appropriation... $3,393,000

Skilled Nursing Facility Safety Net Trust Account--State

Appropriation........................................................ (($88,000,000))

................................................................................. $110,681,000

TOTAL APPROPRIATION............................. (($3,848,450,000))

............................................................................... $3,826,466,000

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

(1) For purposes of implementing chapter 74.46 RCW, the weighted average nursing facility payment rate shall not exceed $171.35 for fiscal year 2014 and shall not exceed ((~~$171.58~~)) $178.82 for fiscal year 2015, including the rate add-ons described in (a) ((~~and~~)) (b), (g), (h), and (i) of this subsection. However, if the waiver requested from the federal centers for medicare and medicaid services in relation to the safety net assessment is for any reason disapproved, the weighted average nursing facility payment rate shall not exceed $162.43 for fiscal year 2014 and shall not exceed $163.58 for fiscal year 2015. There will be no adjustments for economic trends and conditions in fiscal years 2014 and 2015. The economic trends and conditions factor or factors defined in the biennial appropriations act shall not be compounded with the economic trends and conditions factor or factors defined in any other biennial appropriations acts before applying it to the component rate allocations established in accordance with chapter 74.46 RCW. When no economic trends and conditions factor for either fiscal year is defined in a biennial appropriations act, no economic trends and conditions factor or factors defined in any earlier biennial appropriations act shall be applied solely or compounded to the component rate allocations established in accordance with chapter 74.46 RCW.

(a) For fiscal year 2014 within the funds provided, the department shall continue to provide an add-on per medicaid resident day per facility not to exceed $1.57. The add-on shall be used to increase wages, benefits, and/or staffing levels for certified nurse aides; or to increase wages and/or benefits for dietary aides, housekeepers, laundry aides, or any other category of worker whose statewide average dollars-per-hour wage was less than $15 in calendar year 2008, according to cost report data. The add-on may also be used to address resulting wage compression for related job classes immediately affected by wage increases to low-wage workers. For fiscal year 2015 within funds provided, the department shall continue to provide an add-on per medicaid resident day per facility not to exceed the industry weighted average rate of $4.22. The add-on shall be used to increase wages, benefits, and/or staffing levels for certified nurse aides; or to increase wages and/or benefits for dietary aides, housekeepers, laundry aides, or any other category of worker whose statewide average dollars-per-hour wage was less than $17 in calendar year 2012, according to cost report data. The department shall continue reporting requirements and a settlement process to ensure that the funds are spent according to this subsection.

(b) The department shall do a comparative analysis of the facility-based payment rates calculated on July 1, 2013, using the payment methodology defined in chapter 74.46 RCW and as funded in the omnibus appropriations act, excluding the low wage worker add-on, the direct care add-on found in subsection (1)(g) of this section, the support services add-on found in subsection (1)(h) of this section, the therapy care add-on found in subsection (1)(i) of this section, the comparative add-on, acuity add-on, and safety net reimbursement, to the facility-based payment rates in effect June 30, 2010. If the facility-based payment rate calculated on July 1, 2013, is smaller than the facility-based payment rate on June 30, 2010, then the difference shall be provided to the individual nursing facilities as an add-on payment per medicaid resident day.

(c) During the comparative analysis performed in subsection (b) of this section, if it is found that the direct care rate for any facility calculated using the payment methodology defined in chapter 74.46 RCW and as funded in the omnibus appropriations act, excluding the low wage worker add-on, the direct care add-on found in subsection (1)(g) of this section, the support services add-on found in subsection (1)(h) of this section, the therapy care add-on found in subsection (1)(i) of this section, the comparative add-on, acuity add-on, and safety net reimbursement, is greater than the direct care rate in effect on June 30, 2010, then the facility shall receive a ten percent direct care rate add-on to compensate that facility for taking on more acute clients than they have in the past.

(d) The department shall provide a medicaid rate add-on to reimburse the medicaid share of the skilled nursing facility safety net assessment as a medicaid allowable cost. The nursing facility safety net rate add-on may not be included in the calculation of the annual statewide weighted average nursing facility payment rate.

(e) The rate add-on provided in (c) of this subsection is subject to the reconciliation and settlement process provided in RCW 74.46.022(6).

(f) If the waiver requested from the federal centers for medicare and medicaid services in relation to the safety net assessment is for any reason disapproved, (b), (c), ((~~and~~)) (d), (g), (h), and (i) of this subsection do not apply.

      (g) For fiscal year 2015, the department shall provide a direct care rate add-on of $3.63 per patient day. This subsection (g) is subject to the reconciliation and settlement process provided in RCW 74.46.022(6).
      (h) For fiscal year 2015, the department shall provide a support services rate add-on of $0.85 per patient day. This subsection (h) is subject to the reconciliation and settlement process provided in RCW 74.46.022(6).
      (i) For fiscal year 2015, the department shall provide a therapy care rate add-on of $0.05 per patient day. This subsection (i) is subject to the reconciliation and settlement process provided in RCW 74.46.022(6).

(2) In accordance with chapter 74.46 RCW, the department shall issue no additional certificates of capital authorization for fiscal year 2014 and no new certificates of capital authorization for fiscal year 2015 and shall grant no rate add-ons to payment rates for capital improvements not requiring a certificate of need and a certificate of capital authorization for fiscal years 2014 and 2015.

(3) In accordance with RCW 18.51.050, 18.20.050, 70.128.060, and 43.135.055, the department is authorized to increase nursing facility, assisted living facility, and adult family home fees as necessary to fully support the actual costs of conducting the licensure, inspection, and regulatory programs. The license fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the license fee attributed to medicaid clients.

(a) The current annual renewal license fee for adult family homes shall be increased to $225 per bed beginning in fiscal year 2014 and $225 per bed beginning in fiscal year 2015. A processing fee of $2,750 shall be charged to each adult family home when the home is initially licensed. This fee is nonrefundable.

(b) The current annual renewal license fee for assisted living facilities shall be increased to $106 per bed beginning in fiscal year 2014 and $106 per bed beginning in fiscal year 2015.

(c) The current annual renewal license fee for nursing facilities shall be increased to $359 per bed beginning in fiscal year 2014 and $359 per bed beginning in fiscal year 2015.

(4) The department is authorized to place long-term care clients residing in nursing homes and paid for with state only funds into less restrictive community care settings while continuing to meet the client's care needs.

(5) ((~~$30,640,000~~)) $29,996,000 of the general fund--state appropriation for fiscal year 2014, ((~~$48,633,000~~)) $49,061,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$79,273,000~~)) $79,058,000 of the general fund--federal appropriation are provided solely for the implementation of the agreement reached between the governor and the service employees international union healthcare 775nw through an interest arbitration decision under the provisions of chapters 74.39A and 41.56 RCW for the 2013-2015 fiscal biennium.

(6) $1,840,000 of the general fund--state appropriation for fiscal year 2014 and $1,877,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for operation of the volunteer services program. Funding shall be prioritized towards serving populations traditionally served by long-term care services to include senior citizens and persons with disabilities.

(7) ((~~$4,894,000~~)) $2,447,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$15,150,000~~)) $7,575,000 of the general fund--federal appropriation are provided solely for a payment system that satisfies medicaid requirements regarding time reporting for W-2 providers. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(8) The department is authorized to establish limited exemption criteria in rule to address RCW 74.39A.325 when a landline phone is not available to the employee.

(9) Within the amounts appropriated in this section, in a report to the appropriate fiscal committees of the legislature that must be submitted by December 1, 2013, the department of social and health services must describe the process for establishing medicaid rates for assisted living and adult family homes. The report must include information about licensing and physical plant standards, contracting provisions, and per capita and biennial expenditures for assisted living and adult family homes.

(10) $10,800,000 of the general fund--state appropriation for fiscal year 2014, $17,768,000 of the general fund--state appropriation for fiscal year 2015, and $28,567,000 of the general fund--federal appropriation are provided solely for the homecare agency parity impacts of the service employees international union healthcare 775nw arbitration award.

(11) $33,000 of the general fund--state appropriation for fiscal year 2014, $17,000 of the general fund--state appropriation for fiscal year 2015, and $50,000 of the general fund--federal appropriation are provided solely for staffing and other expenses associated with the work of the joint legislative executive committee on planning for aging and disability issues that is established by this subsection.

(a) A joint legislative executive committee on aging and disability is established, with members as provided in this subsection.

(i) Four members of the senate, with the leaders of the two largest caucuses each appointing two members. Four members of the house of representatives, with the leaders of the two largest caucuses each appointing two members;

(ii) A member from the office of the governor, appointed by the governor;

(iii) The secretary of the department of social and health services or his or her designee;

(iv) The director of the health care authority or his or her designee; and

(v) The director of the department of retirement systems or his or her designee.

(b) The committee must convene by September 1, 2013. At the first meeting, the committee will select cochairs from among its members who are legislators. All meetings of the committee are open to the public.

(c) The purpose of the committee is to identify key strategic actions to prepare for the aging of the population in Washington, including state budget and policy options, by conducting at least, but not limited to, the following tasks:

(i) Establish a profile of Washington's current population of older people and people with disabilities and a projection of population growth through 2030;

(ii) Establish an inventory of services and supports currently available to older people and people with disabilities from the health care and long-term services and support systems and other community resources such as housing, transportation, income support, and protection for vulnerable adults;

(iii) Identify state budget and policy options to more effectively use state, federal and private resources to, over time, reduce the growth rate in state expenditures that would otherwise occur by continuing current policy in light of significant population growth;

(iv) Identify strategies to better serve the health care needs of an aging population and people with disabilities, and promote healthy living;

(v) Identify policy options to create financing mechanisms for long-term services and supports that will promote additional private responsibility for individuals and families to meet their needs for service;

(vi) Identify policies to promote financial security in retirement, support people who wish to stay in the workplace longer, and expand the availability of workplace retirement savings plans; and

(vii) Identify policy options to help communities adapt to the aging demographic in planning for housing, land use and transportation.

(d) The committee shall consult with the office of the insurance commissioner, the caseload forecast council, health care authority, and other appropriate entities with specialized knowledge of the needs and growth trends of the aging population and people with disabilities.

(e) Staff support for the committee shall be provided by the office of program research, senate committee services, the office of financial management, and the department of social and health services.

(f) Within existing appropriations, the cost of meetings must be paid jointly by the senate, house of representatives, and the office of financial management. Joint committee expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees. The joint committee members may be reimbursed for travel expenses as authorized under RCW 43.03.050 and 43.03.060, and chapter 44.04 RCW as appropriate. Advisory committee members may not receive compensation or reimbursement for travel and expenses.

(g) The committee shall issue an interim report to the legislature by December 10, 2013, and issue final recommendations to the governor and relevant standing committees of the legislature by December 10, 2014.

(12) $240,000 of the general fund--state appropriation for fiscal year 2014, $1,342,000 of the general fund--state appropriation for fiscal year 2015, and $1,468,000 of the general fund--federal appropriation are provided solely to implement chapter 320, Laws of 2013 (ESHB 1519) and chapter 338, Laws of 2013 (2SSB 5732).

(13) The department shall review the capital add-on rate established by RCW 74.39A.320 for effectiveness in incentivizing assisted living facilities to serve Medicaid eligible clients. Upon completing its review, the department shall submit its findings along with recommendations for alternatives to the office of financial management and the fiscal committees of the legislature by December 1, 2013. The department is encouraged to engage stakeholders in developing alternatives.

(14) $239,000 of the general fund--state appropriation for fiscal year 2014, $160,000 of the general fund--state appropriation for fiscal year 2015, and $398,000 of the general fund--federal appropriation are provided solely to implement chapter 300, Laws of 2013 (SSB 5630).

      (15) $237,000 of the general fund--federal appropriation and $236,000 of the general fund--local appropriation are provided solely to implement Second Substitute House Bill No. 1574 (residential services and supports). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse. In accordance with Second Substitute House Bill No. 1574, the department is authorized to increase supported living fees as necessary to support the actual costs of conducting the certification, inspection, and regulatory programs. The certification fees may not exceed the department's annual licensing and oversight activity costs and shall include the department's cost of paying providers for the amount of the certification fee attributed to medicaid clients. The annual certification fee for supported living shall be $128 per client beginning in fiscal year 2015.
      (16) $3,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to implement Substitute House Bill No. 2310 (provider safety equipment). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (17) $296,000 of the general fund--state appropriation for fiscal year 2015, and $296,000 of the general fund--federal appropriation are provided solely to implement Engrossed Substitute House Bill No. 2746 (medicaid personal care). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (18) $500,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the department to contract for an independent feasibility study and actuarial modeling of public and private options for leveraging private resources to help individuals prepare for long-term services and supports needs. The study should model at least three options, including a public long-term care insurance benefit funded through a payroll deduction that would provide a time-limited long-term care insurance benefit, regulatory changes necessary to encourage the development and growth of new products on the market that combine features of life insurance, long-term care insurance and annuities or medicaid life settlements, and a public-private option such as facilitating a new marketplace through the Washington health plan finder for private long-term care insurance policies that would provide a time-limited benefit, an age defined individual mandate for purchasing these policies and subsidies to ensure affordability for lower-income individuals. The report should include an evaluation of each option based on (a) the expected costs and benefits for participants, (b) the total anticipated number of participants, and (c) the projected savings to the state medicaid program. The aging and disability joint legislative executive committee shall provide oversight and direction for this analysis and will convene interested stakeholders to provide input on the study design. The department shall provide a report on its findings and recommendations to the relevant policy and fiscal committees of the legislature by November 1, 2014.
      (19) $15,000 of the general fund--state appropriation for fiscal year 2015 and $15,000 of the general fund--federal appropriation are provided solely to implement Substitute House Bill No. 2634 (residential enforcement standards). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (20) $5,094,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for services and support to individuals who are deaf, hard of hearing, or deaf-blind.
      (21) The department may authorize a one-time waiver of all or any portion of the licensing and processing fees required under RCW 70.128.060 in any case in which the department determines that an adult family home is being relicensed because of exceptional circumstances, such as death or incapacity of a provider, and that to require the full payment of the licensing and processing fees would present a hardship to the applicant.
      (22) It is the intent of the legislature to use savings from the community first choice option to make needed investments in home and community-based services for seniors and people with disabilities, including potential investments recommended by the joint legislative executive committee on aging and disability and the development and implementation council that the department of social and health services must convene prior to submitting the proposed community first choice option to the centers for medicare and medicaid services. At a minimum, the final report to the legislature from the joint legislative executive committee on aging and disability must explore the cost and benefit of rate enhancements for providers of long-term services and supports, restoration of hours for in-home clients, additional investment in the family caregiver support program, and additional investment in the individual and family services program or other medicaid services to support individuals with developmental disabilities.

Sec. 207. 2013 2nd sp.s. c 4 s 207 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ECONOMIC SERVICES PROGRAM

General Fund‑-State Appropriation (FY 2014)..... (($402,504,000))

................................................................................. $377,188,000

General Fund‑-State Appropriation (FY 2015)..... (($405,019,000))

................................................................................. $392,445,000

General Fund‑-Federal Appropriation................ (($1,211,774,000))

............................................................................... $1,235,336,000

General Fund‑-Private/Local Appropriation........... (($30,594,000))

................................................................................... $36,450,000
Education Legacy Trust Account--State Appropriation. $4,996,000

TOTAL APPROPRIATION............................. (($2,049,891,000))

............................................................................... $2,046,415,000

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

(1)(a) ((~~$178,757,000~~)) $154,439,000 of the general fund--state appropriation for fiscal year 2014, ((~~$172,999,000~~)) $154,241,000 of the general fund--state appropriation for fiscal year 2015, $4,996,000 of the education legacy trust account appropriation, and ((~~$732,881,000~~)) $771,147,000 of the general fund--federal appropriation are provided solely for all components of the WorkFirst program. Within the amounts provided for the WorkFirst program, the department may provide assistance using state-only funds for families eligible for temporary assistance for needy families. The department must create a WorkFirst budget structure that allows for transparent tracking of budget units and subunits of expenditures where these units and subunits are mutually exclusive from other department budget units. The budget structure must include budget units for the following: Cash assistance, child care, WorkFirst activities, and administration of the program. Within these budget units, the department must develop program index codes for specific activities and develop allotments and track expenditures using these codes. The department shall report to the office of financial management and the relevant fiscal and policy committees of the legislature prior to adopting the new structure. The secretary of the department of social and health services, working with WorkFirst partner agencies and in collaboration with the WorkFirst oversight task force, shall develop a plan for maximizing the following outcomes and shall report back to the legislature by November 1, 2013. The outcomes to be measured are: (i) Increased employment; (ii) completion of education or post-secondary training; (iii) completion of barrier removal activity including drug and alcohol or mental health treatment; (iv) housing stability; (v) child care or education stability for the children of temporary assistance for needy families recipients; (vi) reduced rate of return after exit from the WorkFirst program; and (vii) work participation requirements.

(b) ((~~$406,818,000~~)) $374,937,000 of the amounts in (a) of this subsection are provided solely for assistance to clients, including grants, diversion cash assistance, and additional diversion emergency assistance including but not limited to assistance authorized under RCW 74.08A.210. The department may use state funds to provide support to working families that are eligible for temporary assistance for needy families but otherwise not receiving cash assistance. Within these amounts, funding is for implementation of House Bill No. 2585 (TANF benefits for a child).

(c) ((~~$168,019,000~~)) $179,529,000 of the amounts in (a) of this subsection are provided solely for WorkFirst job search, education and training activities, barrier removal services, limited English proficiency services, and tribal assistance under RCW 74.08A.040. The department must allocate this funding based on client outcomes and cost effectiveness measures.

(d) ((~~$367,676,000~~)) $358,992,000 of the amounts in (a) of this subsection are provided solely for the working connections child care program under RCW 43.215.135. The working connections child care program is capped at 30,000 households per month. $4,632,000 of the education legacy trust account--state appropriation in subsection (1)(a) is provided solely for implementation of Engrossed Second Substitute House Bill No. 2377 (early care and education).

(e) ((~~$142,124,000~~)) $171,363,000 of the amounts in (a) of this subsection are provided solely for WorkFirst and working connections child care administration and overhead. $364,000 of the education legacy trust account appropriation in (a) of this subsection is provided solely for implementation of Engrossed Second Substitute House Bill No. 2377 (early care and education).

(f) The amounts in (b) through (d) of this subsection shall be expended for the programs and in the amounts specified. However, the department may transfer up to 10 percent of funding between (b) through (d) of this subsection, but only if the funding is available or necessary to transfer solely due to utilization, caseload changes, or underperformance in terms of client outcomes. The department shall provide notification prior to any transfer to the office of financial management and to the appropriate legislative committees and the legislative-executive WorkFirst oversight task force. The approval of the director of financial management is required prior to any transfer under this subsection.

(2) $1,657,000 of the general fund--state appropriation for fiscal year 2014 and $1,657,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for naturalization services.

(3) $2,366,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for employment services for refugees and immigrants, of which $1,774,000 is provided solely for the department to pass through to statewide refugee and immigrant assistance organizations for limited English proficiency pathway services; and $2,366,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for employment services for refugees and immigrants, of which $1,774,000 is provided solely for the department to pass through to statewide refugee and immigrant assistance organizations for limited English proficiency pathway services.

(4) On December 1, 2013, and annually thereafter, the department must report to the legislature on all sources of funding available for both refugee and immigrant services and naturalization services during the current fiscal year and the amounts expended to date by service type and funding source. The report must also include the number of clients served and outcome data for the clients.

(5) To ensure expenditures remain within available funds appropriated in this section, the legislature establishes the benefit under the state food assistance program, pursuant to RCW 74.08A.120, to be no less than seventy-five percent of the federal supplemental nutrition assistance program benefit amount.

(6) $18,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of section 1, chapter 337, Laws of 2013 (2SSB 5595).

(7) $4,729,000 of the general fund--state appropriation for fiscal year 2014 and $4,729,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of the telephone assistance program and the Washington information network 211 organization pursuant to Substitute House Bill No. 1971 (communication services). Of these funds, $500,000 of the general fund--state appropriation for fiscal year 2014 and $500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for operational support of the Washington information network 211 organization. If Substitute House Bill No. 1971 (communication services) is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(8) The department shall review clients receiving services through the aged, blind, or disabled assistance program, to determine whether they would benefit from assistance in becoming naturalized citizens, and thus be eligible to receive federal supplemental security income benefits. Those cases shall be given high priority for naturalization funding through the department.

(9) The department shall continue the interagency agreement with the department of veterans' affairs to establish a process for referral of veterans who may be eligible for veterans' services. This agreement must include out-stationing department of veterans' affairs staff in selected community service office locations in King and Pierce counties to facilitate applications for veterans' services.

(10) $500,000 of the general fund--state appropriation for fiscal year 2014 and $1,500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Substitute House Bill No. 2069 (safety net benefits). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(11) $65,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for 211 call system networks in the eastern Washington region and the peninsula region.

Sec. 208. 2013 2nd sp.s. c 4 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ALCOHOL AND SUBSTANCE ABUSE PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($72,650,000))

................................................................................... $73,021,000

General Fund‑-State Appropriation (FY 2015)....... (($61,855,000))

................................................................................... $63,567,000

General Fund‑-Federal Appropriation.................. (($277,248,000))

................................................................................. $279,072,000

General Fund‑-Private/Local Appropriation........... (($13,554,000))

................................................................................... $16,316,000

Criminal Justice Treatment Account‑-State

Appropriation........................................................ (($14,568,000))

................................................................................... $14,285,000

Problem Gambling Account‑-State Appropriation......... $1,450,000

TOTAL APPROPRIATION................................ (($441,325,000))

................................................................................. $447,711,000

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

(1) Within the amounts appropriated in this section, the department may contract with the University of Washington and community-based providers for the provision of the parent-child assistance program or other specialized chemical dependency case management providers for pregnant, post-partum, and parenting women. For all contractors: (a) Service and other outcome data must be provided to the department by request; (b) program modifications needed to maximize access to federal medicaid matching funds will be phased in over the course of the 2013-2015 fiscal biennium; and (c) indirect charges for administering the program shall not exceed ten percent of the total contract amount.

(2) Within the amounts appropriated in this section, the department shall continue to provide for chemical dependency treatment services for adult medicaid eligible, pregnant and parenting women, disability lifeline, and alcoholism and drug addiction treatment and support act, and medical care services clients.

(3) In accordance with RCW 70.96A.090 and 43.135.055, the department is authorized to adopt fees for the review and approval of treatment programs in fiscal years 2014 and 2015 as necessary to support the costs of the regulatory program. The department's fee schedule shall have differential rates for providers with proof of accreditation from organizations that the department has determined to have substantially equivalent standards to those of the department, including but not limited to the joint commission on accreditation of health care organizations, the commission on accreditation of rehabilitation facilities, and the council on accreditation. To reflect the reduced costs associated with regulation of accredited programs, the department's fees for organizations with such proof of accreditation must reflect the lower cost of licensing for these programs than for other organizations which are not accredited.

(4) $3,500,000 of the general fund--federal appropriation (from the substance abuse prevention and treatment federal block grant) is provided solely for the continued funding of existing county drug and alcohol use prevention programs.

(5) $2,600,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the department to transition 128 beds from settings that are considered institutions for mental diseases to facilities with no more than 16 beds that are able to claim federal match for services provided to medicaid clients or individuals covered under the department's section 1115 medicaid waiver. The department may conduct a request for proposal process to fulfill this requirement and adopt rates that are comparable to the pilot projects implemented in the 2011-13 fiscal biennium. The department may use these funds to assist with the costs of providers in setting up or converting to 16-bed facilities. This funding may also be used for providers that are developing new capacity for clients who will become eligible for services under the affordable care act medicaid expansion. The number of beds available for pregnant and parenting women must not be reduced.

(6) $283,000 of the ((~~criminal justice treatment account~~)) general fund--state appropriation is provided solely for transitional funding for the family drug court in Pierce county.

(7) Within the amounts appropriated in this section, the department shall review differential rates paid for alcohol and substance abuse assessment and treatment services for medicaid and nonmedicaid clients and the impact to providers as previously uninsured clients become eligible for services through the medicaid expansion under the federal patient protection and affordable care act. By December 1, 2014, the department must submit a report to the legislature which provides: (a) The estimated impact on providers for each type of medicaid reimbursable service as newly eligible clients shift from nonmedicaid to medicaid rates; (b) identification of which types of providers will be most significantly impacted by these shifts; (c) identification of the estimated annual costs for increasing rates for each level of service; and (d) a summary of federal requirements that must be considered in determining how any future rate increase must be implemented.

Sec. 209. 2013 2nd sp.s. c 4 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-VOCATIONAL REHABILITATION PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($16,478,000))

................................................................................... $16,568,000

General Fund‑-State Appropriation (FY 2015)....... (($16,459,000))

................................................................................... $11,477,000

General Fund‑-Federal Appropriation.................... (($99,413,000))

................................................................................... $99,397,000

TOTAL APPROPRIATION................................ (($132,350,000))

................................................................................. $127,442,000

The appropriations in this section are subject to the following conditions and limitations: $5,006,000 of the general fund--state appropriation for fiscal year 2014 ((~~and $5,094,000 of the general fund--state appropriation for fiscal year 2015 are~~)) is provided solely for services and support to individuals who are deaf, hard of hearing, or deaf-blind.

Sec. 210. 2013 2nd sp.s. c 4 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-SPECIAL COMMITMENT PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($36,420,000))

................................................................................... $37,796,000

General Fund‑-State Appropriation (FY 2015)....... (($35,813,000))

................................................................................... $37,017,000

TOTAL APPROPRIATION.................................. (($72,233,000))

................................................................................... $74,813,000

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

(1) The department of social and health services shall transfer the stewardship of McNeil Island to the department of corrections industries program, effective September 1, 2013. The transferred responsibilities shall include marine operations, waste water treatment, water treatment, road maintenance, and any other general island maintenance that is not site specific to the operations of the special commitment center or the Pierce county secure community transition facility. Facility maintenance within the perimeter of the special commitment center shall remain the responsibility of the department of social and health services. Capital repairs and maintenance necessary to maintain the special commitment center on McNeil Island shall be managed by the department of social and health services. The legislature directs both departments to enter into an interagency agreement by August 1, 2013. The office of financial management shall oversee the negotiations of the interagency agreement. The interagency agreement must describe equipment that will transfer between the departments, warehouse space that will be shared by the departments, and occupancy requirements for any shops outside the perimeter of the special commitment center. The office of financial management will make the final determination on any disagreements between the departments on the details of the interagency agreement.

(2) ((~~$3,120,000~~)) $3,042,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$3,120,000~~)) $3,024,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for operational costs specific to island operations of the special commitment center and the Pierce county secure community transition facility. The department shall establish an accounting structure that enables it to track and report on costs specific to island operations.

(3) All employees of the department of social and health services engaged in performing the powers, functions, and duties transferred to the department of corrections industries program under this subsection, are transferred to the department of corrections.

(4) All classified employees of the department of social and health services assigned to the department of corrections under this subsection whose positions are within an existing bargaining unit description at the department of corrections shall become a part of the existing bargaining unit at the department of corrections and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

(5) By November 1, 2014, the department of social and health services shall provide a report to the office of financial management and the appropriate fiscal and policy committees of the legislature that evaluates the department's costs for certain medical and pharmacy costs for its residents within the special commitment center. The department as part of its evaluation shall consult with the health care authority, the health benefits exchange, and the department of corrections. At a minimum, the report should look at the following items: (a) Obtaining medicaid eligibility for residents; (b) feasibility of obtaining insurance for residents through the health benefit exchange; (c) utilizing multistate consortiums for the purchase of pharmaceuticals to reduce costs; and (d) consolidating contracts for medical inpatient and outpatient services with western state hospital.

Sec. 211. 2013 2nd sp.s. c 4 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-ADMINISTRATION AND SUPPORTING SERVICES PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($30,127,000))

................................................................................... $29,773,000

General Fund‑-State Appropriation (FY 2015)....... (($29,333,000))

................................................................................... $28,989,000

General Fund‑-Federal Appropriation.................... (($37,150,000))

................................................................................... $37,157,000

General Fund‑-Private/Local Appropriation..................... $654,000

TOTAL APPROPRIATION.................................. (($97,264,000))

................................................................................... $96,573,000

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

(1) $395,000 of the general fund--state appropriation for fiscal year 2014, $228,000 of the general fund--state appropriation for fiscal year 2015, and $335,000 of the general fund--federal appropriation are provided solely to implement chapter 320, Laws of 2013 (ESHB 1519) and chapter 338, Laws of 2013 (2SSB 5732).

(2) $300,000 of the general fund--state appropriation for fiscal year 2014 and $300,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the Washington state mentors program to continue its public-private partnerships to provide technical assistance and training to mentoring programs that serve at-risk youth.

(3) $82,000 of the general fund--state appropriation for fiscal year 2014, $44,000 of the general fund--state appropriation for fiscal year 2015, and $28,000 of the general fund--federal appropriation are provided solely to develop a report on state efforts to prevent and control diabetes. The department, the health care authority, and the department of health shall submit a coordinated report to the governor and the appropriate committees of the legislature by December 31, 2014, on the following:

(a) The financial impacts and reach that diabetes of all types and undiagnosed gestational diabetes are having on the programs administered by each agency and individuals, including children with mothers with undiagnosed gestational diabetes, enrolled in those programs. Items in this assessment must include: (i) The number of lives with diabetes and undiagnosed gestational diabetes impacted or covered by the programs administered by each agency; (ii) the number of lives with diabetes, or at risk for diabetes, and family members impacted by prevention and diabetes control programs implemented by each agency; (iii) the financial toll or impact diabetes and its complications, and undiagnosed gestational diabetes and the complications experienced during labor to children of mothers with gestational diabetes places on these programs in comparison to other chronic diseases and conditions; and (iv) the financial toll or impact diabetes and its complications, and diagnosed gestational diabetes and the complications experienced during labor to children of mothers with gestational diabetes places on these programs;

(b) An assessment of the benefits of implemented and existing programs and activities aimed at controlling all types of diabetes and preventing the disease. This assessment must also document the amount and source for any funding directed to each agency for the programs and activities aimed at reaching those with diabetes of all types;

(c) A description of the level of coordination existing between the agencies on activities, programmatic activities, and messaging on managing, treating, or preventing all types of diabetes and its complications;

(d) The development or revision of detailed policy-related action plans and budget recommendations for battling diabetes and undiagnosed gestational diabetes that includes a range of actionable items for consideration by the legislature. The plans and budget recommendations must identify proposed action steps to reduce the impact of diabetes, prediabetes, related diabetes complications, and undiagnosed gestational diabetes. The plans and budget recommendations must also identify expected outcomes of the action steps proposed in the following biennium while also establishing benchmarks for controlling and preventing all types of diabetes; and

(e) An estimate of savings, efficiencies, costs, and budgetary savings and resources required to implement the plans and budget recommendations identified in (d) of this subsection (5).

Sec. 212. 2013 2nd sp.s. c 4 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SOCIAL AND HEALTH SERVICES‑-PAYMENTS TO OTHER AGENCIES PROGRAM

General Fund‑-State Appropriation (FY 2014)....... (($60,470,000))

................................................................................... $62,399,000

General Fund‑-State Appropriation (FY 2015)....... (($60,511,000))

................................................................................... $63,540,000

General Fund‑-Federal Appropriation.................... (($55,264,000))

................................................................................... $57,061,000

TOTAL APPROPRIATION................................ (($176,245,000))

................................................................................. $183,000,000

Sec. 213. 2013 2nd sp.s. c 4 s 213 (uncodified) is amended to read as follows:

FOR THE STATE HEALTH CARE AUTHORITY

General Fund‑-State Appropriation (FY 2014).. (($2,131,026,000))

............................................................................... $2,145,141,000

General Fund‑-State Appropriation (FY 2015).. (($2,114,731,000))

............................................................................... $2,168,224,000

General Fund‑-Federal Appropriation................ (($7,245,749,000))

............................................................................... $7,909,707,000

General Fund--Private/Local Appropriation........... (($57,780,000))

................................................................................... $56,407,000

Emergency Medical Services and Trauma Care Systems

Trust Account--State Appropriation............................ $15,082,000

Hospital Safety Net Assessment Fund--State

Appropriation............................................................ $669,381,000

Health Benefit Exchange Account--State Appropriation

.............................................................................. (($17,277,000))

................................................................................... $16,207,000

State Health Care Authority Administration Account‑-

State Appropriation................................................ (($34,809,000))

................................................................................... $31,463,000

Medical Aid Account‑-State Appropriation...................... $528,000

Medicaid Fraud Penalty Account--State Appropriation $21,206,000

TOTAL APPROPRIATION........................... (($12,307,569,000))

............................................................................. $13,033,346,000

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

(1) ((~~$1,143,994,000~~)) $1,900,484,000 of the general fund--federal appropriation is provided solely to implement the medicaid expansion as defined in the social security act, section 1902(a)(10)(A)(i)(VIII), subject to the conditions and limitations in this subsection. If the federal medical assistance percentage for the medicaid expansion falls below the percentages in section 1905(y) of the social security act as of July 1, 2013, the authority shall ensure that the state does not incur any additional state costs above what would have been incurred had the federal medical assistance percentages remained at the percentages in section 1905(y) as of July 1, 2013. The director is authorized to make any necessary program adjustments to comply with this requirement, including adding or adjusting premiums, modifying benefits, or reducing optional programs. To the extent a waiver is needed to accomplish this, the director shall promptly apply for such waiver. If a necessary waiver is not approved, the medicaid expansion program shall be terminated upon appropriate notification to the legislature and enrollees.

(2) The requirements of this subsection apply to the basic health plan. This subsection is null and void and has no further effect upon implementation of the medicaid expansion under subsection (1) of this section.

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

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

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

(d) Enrollment in the subsidized basic health plan shall be limited to only include persons who qualify as subsidized enrollees as defined in RCW 70.47.020 and who (a) qualify for services under 1115 medicaid demonstration project number 11-W-00254/10; or (b) are foster parents licensed under chapter 74.15 RCW.

(3) The legislature finds that medicaid payment rates, as calculated by the health care authority pursuant to the appropriations in this act, bear a reasonable relationship to the costs incurred by efficiently and economically operated facilities for providing quality services and will be sufficient to enlist enough providers so that care and services are available to the extent that such care and services are available to the general population in the geographic area. The legislature finds that the cost reports, payment data from the federal government, historical utilization, economic data, and clinical input constitute reliable data upon which to determine the payment rates.

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

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

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

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

(8) $4,261,000 of the general fund--state appropriation for fiscal year 2014, $4,261,000 of the general fund--state appropriation for fiscal year 2015, and $8,522,000 of the general fund--federal appropriation are provided solely for low-income disproportionate share hospital payments.

(9) $400,000 of the general fund--state appropriation for fiscal year 2014, ((~~$400,000~~)) $200,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$800,000~~)) $600,000 of the general fund--federal appropriation are provided solely for disproportionate share hospital payments to rural hospitals certified by the centers for medicare and medicaid services as sole community hospitals as of January 1, 2013, with less than one hundred fifty acute care licensed beds in fiscal year 2011 that do not participate in the certified public expenditures program. The authority shall discontinue these payments on January 1, 2015.

(10) $100,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$100,000~~)) $50,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for grants to rural hospitals in Clallam county that were certified by the centers for medicare and medicaid services as sole community hospitals as of January 1, 2013, with less than one hundred fifty acute care licensed beds in fiscal year 2011. The authority shall discontinue these payments on January 1, 2015.

(11) Within the amounts appropriated in this section, the health care authority shall provide disproportionate share hospital payments to hospitals that provide services to children in the children's health program who are not eligible for services under Title XIX or XXI of the federal social security act due to their citizenship status.

(12) $6,000,000 of the general fund‑-federal appropriation is provided solely for supplemental payments to nursing homes operated by public hospital districts. The public hospital district shall be responsible for providing the required nonfederal match for the supplemental payment, and the payments shall not exceed the maximum allowable under federal rules. It is the legislature's intent that the payments shall be supplemental to and shall not in any way offset or reduce the payments calculated and provided in accordance with part E of chapter 74.46 RCW. It is the legislature's further intent that costs otherwise allowable for rate-setting and settlement against payments under chapter 74.46 RCW shall not be disallowed solely because such costs have been paid by revenues retained by the nursing home from these supplemental payments. The supplemental payments are subject to retrospective interim and final cost settlements based on the nursing homes' as-filed and final medicare cost reports. The timing of the interim and final cost settlements shall be at the health care authority's discretion. During either the interim cost settlement or the final cost settlement, the health care authority shall recoup from the public hospital districts the supplemental payments that exceed the medicaid cost limit and/or the medicare upper payment limit. The health care authority shall apply federal rules for identifying the eligible incurred medicaid costs and the medicare upper payment limit.

(13) The health care authority shall continue the inpatient hospital certified public expenditures program for the 2013-2015 fiscal biennium. The program shall apply to all public hospitals, including those owned or operated by the state, except those classified as critical access hospitals or state psychiatric institutions. The health care authority shall submit reports to the governor and legislature by November 1, 2013, and by November 1, 2014, that evaluate whether savings continue to exceed costs for this program. If the certified public expenditures (CPE) program in its current form is no longer cost-effective to maintain, the health care authority shall submit a report to the governor and legislature detailing cost-effective alternative uses of local, state, and federal resources as a replacement for this program. During fiscal year 2014 and fiscal year 2015, hospitals in the program shall be paid and shall retain one hundred percent of the federal portion of the allowable hospital cost for each medicaid inpatient fee-for-service claim payable by medical assistance and one hundred percent of the federal portion of the maximum disproportionate share hospital payment allowable under federal regulations. Inpatient medicaid payments shall be established using an allowable methodology that approximates the cost of claims submitted by the hospitals. Payments made to each hospital in the program in each fiscal year of the biennium shall be compared to a baseline amount. The baseline amount will be determined by the total of (a) the inpatient claim payment amounts that would have been paid during the fiscal year had the hospital not been in the CPE program based on the reimbursement rates developed, implemented, and consistent with policies approved in the 2013-2015 biennial operating appropriations act and in effect on July 1, 2013, (b) one-half of the indigent assistance disproportionate share hospital payment amounts paid to and retained by each hospital during fiscal year 2005, and (c) all of the other disproportionate share hospital payment amounts paid to and retained by each hospital during fiscal year 2005 to the extent the same disproportionate share hospital programs exist in the 2013-2015 fiscal biennium. If payments during the fiscal year exceed the hospital's baseline amount, no additional payments will be made to the hospital except the federal portion of allowable disproportionate share hospital payments for which the hospital can certify allowable match. If payments during the fiscal year are less than the baseline amount, the hospital will be paid a state grant equal to the difference between payments during the fiscal year and the applicable baseline amount. Payment of the state grant shall be made in the applicable fiscal year and distributed in monthly payments. The grants will be recalculated and redistributed as the baseline is updated during the fiscal year. The grant payments are subject to an interim settlement within eleven months after the end of the fiscal year. A final settlement shall be performed. To the extent that either settlement determines that a hospital has received funds in excess of what it would have received as described in this subsection, the hospital must repay the excess amounts to the state when requested. ((~~$3,860,000~~)) $11,928,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$1,137,000~~)) $14,821,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for state grants for the participating hospitals.

(14) The health care authority shall seek public-private partnerships and federal funds that are or may become available to provide on-going support for outreach and education efforts under the federal children's health insurance program reauthorization act of 2009.

(15) The health care authority shall target funding for maternity support services towards pregnant women with factors that lead to higher rates of poor birth outcomes, including hypertension, a preterm or low birth weight birth in the most recent previous birth, a cognitive deficit or developmental disability, substance abuse, severe mental illness, unhealthy weight or failure to gain weight, tobacco use, or African American or Native American race. The health care authority shall prioritize evidence-based practices for delivery of maternity support services. To the extent practicable, the health care authority shall develop a mechanism to increase federal funding for maternity support services by leveraging local public funding for those services.

(16) $170,000 of the general fund--state appropriation for fiscal year 2014, $121,000 of the general fund--state appropriation for fiscal year 2015, and $292,000 of the general fund--federal appropriation are provided solely to implement Engrossed Substitute House Bill No. 1519 (service coordination organizations) and Second Substitute Senate Bill No. 5732 (behavioral health services). If neither of the bills is enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(17) $57,000 of the general fund--state appropriation for fiscal year 2014, $40,000 of the general fund--state appropriation for fiscal year 2015, and $55,000 of the general fund--federal appropriation are provided solely to develop a report on state efforts to prevent and control diabetes. The authority, the department of social and health services, and the department of health shall submit a coordinated report to the governor and the appropriate committees of the legislature by December 31, 2014, on the following:

(e) An estimate of savings, efficiencies, costs, and budgetary savings and resources required to implement the plans and budget recommendations identified in (d) of this subsection (17).

(18) Within the amounts appropriated in this section, the authority shall identify strategies to improve patient adherence to treatment plans for diabetes and implement these strategies as a pilot through one health home program to be identified by the authority. The authority shall report to the governor and the legislature in December 2014 on the progress of strategy implementation. The authority shall report to the governor and legislature in December 2015 on patient outcomes and cost savings derived from new adherence strategies in the health home model and make recommendations for improving the strategies.

(19) Effective January 1, 2014, managed care contracts must incorporate accountability measures that monitor patient health and improved health outcomes, and shall include an expectation that each patient receive a wellness examination that documents the baseline health status and allows for monitoring of health improvements and outcome measures.

(20) $25,000 of the general fund--state appropriation for fiscal year 2014 and $25,000 of the general fund--federal appropriation are provided solely for the development of recommendations for funding integrated school nursing and outreach services. The authority shall collaborate with the office of the superintendent of public instruction to develop recommendations for increasing federal financial participation for providing nursing services in schools with the goals of integrating nursing and outreach services and supporting one nurse for every four hundred fifty students in elementary schools and one nurse for every seven hundred fifty students in secondary schools. In developing these recommendations, the authority shall inquire with the federal centers for medicare and medicaid services about state plan amendment or waiver options for receiving additional federal matching funds for school nursing services provided to children enrolled in apple health for kids. The recommendations shall include proposals for funding training and reimbursement for nurses that provide outreach services to help eligible students enroll in apple health for kids and other social services programs. The authority and the office of the superintendent of public instruction shall provide these recommendations to the governor and the legislature by December 1, 2013.

(21) $430,000 of the general fund--state appropriation for fiscal year 2014 and $500,000 of the general fund--federal appropriation are provided solely to complete grant requirements for the health information exchange.

(22) $143,000 of the medicaid fraud penalty account--state appropriation and $423,000 of the general fund--federal appropriation are provided solely for the rebasing of outpatient and inpatient payment methods.

(23) $1,163,000 of the medicaid fraud penalty account--state appropriation and $9,710,000 of the general fund--federal appropriation are provided solely to implement the conversion to the tenth version of the world health organization's international classification of diseases.

(24) $111,000 of the general fund--state appropriation for fiscal year 2014, $35,000 of the general fund--state appropriation for fiscal year 2015, and $359,000 of the general fund--federal appropriation are provided solely to update the medicaid information technology architecture state self-assessment and to develop the five year road map for the medicaid information technology architecture architect.

(25) $62,000 of the general fund--state appropriation for fiscal year 2014, $62,000 of the general fund--state appropriation for fiscal year 2015, and $126,000 of the general fund--federal appropriation are provided solely to support the Robert Bree collaborative's efforts to disseminate evidence-based best practices for preventing and treating health problems.

(26) Within the amounts appropriated in this section, the authority shall increase reimbursement rates for primary care services provided by independent nurse practitioners to medicare levels for the period from July 1, 2013, to December 31, 2014.

(27) The authority shall seek a medicaid state plan amendment to create a professional services supplemental payment managed care program for professional services delivered to managed care recipients by University of Washington medicine and other public professional providers. This program shall be effective as soon as administratively possible and shall operate concurrently with the existing professional services supplemental payment program. The authority shall apply federal rules for identifying the difference between average commercial rates and fee-for-service medicaid payments. This difference will be multiplied by the number of managed care encounters and incorporated into the managed care plan capitation rates by a certified actuary. The managed care plans will pay the providers the difference attributable to the increased capitation rate. Participating providers shall be solely responsible for providing the local funds required to obtain federal matching funds. Any incremental costs incurred by the authority in the development, implementation, and maintenance of this program shall be the responsibility of the participating providers. Participating providers shall retain the full amount of supplemental payments provided under this program, net of any costs related to the program that are disallowed due to audits or litigation against the state.

(28) Sufficient amounts are appropriated in this section for the authority to provide an adult dental benefit beginning January 1, 2014.

(29) To the extent allowed under federal law, the authority shall require an adult client to enroll in full medicaid coverage instead of family planning-only coverage unless the client is at risk of domestic violence.

(30) The authority shall facilitate enrollment under the medicaid expansion for clients applying for or receiving state funded services from the authority and its contractors. Prior to open enrollment, the authority shall coordinate with the department of social and health services to provide referrals to the Washington health benefit exchange for clients that will be ineligible for the medicaid expansion but are enrolled in coverage that will be eliminated in the transition to the medicaid expansion.

(31) $90,000 of the general fund--state appropriation for fiscal year 2014, $90,000 of the general fund--state appropriation for fiscal year 2015, and $180,000 of the general fund--federal appropriation are provided solely to continue operation by a nonprofit organization of a toll-free hotline that assists families to learn about and enroll in the apple health for kids program.

(32) Within the amounts appropriated in this section, the authority shall reduce premiums for children with family incomes above 200 percent of the federal poverty level in the state-funded children's health program who are not eligible for coverage under the federal children's health insurance program. Premiums in the state and federal children's health insurance program shall be equal.

(33) The appropriations in this section reflect savings and efficiencies by transferring children receiving medical care provided through fee-for-service to medical care provided through managed care.

(34) $150,000 of the general fund--state appropriation for fiscal year 2014, $436,000 of the general fund--state appropriation for fiscal year 2015, and $170,561,000 of the general fund--federal appropriation are provided solely for the provider incentive program and other initiatives related to the health information technology medicaid plan.

((~~(37) $1,531,000~~)) (35) $1,528,000 of the general fund--state appropriation for fiscal year 2014, ((~~$280,000~~)) $2,206,000 of the general fund--state appropriation for fiscal year 2015, and ((~~$10,803,000~~)) $17,912,000 of the general fund--federal appropriation are provided solely to implement phase two of the project to create a single provider payment system that consolidates medicaid medical and social services payments and replaces the social service payment system. The amounts provided in this subsection are conditioned on the authority satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

((~~(38)~~)) (36) Within the amounts appropriated in this section, the health care authority and the department of social and health services shall implement the state option to provide health homes for enrollees with chronic conditions under section 2703 of the federal affordable care act. The total state match for enrollees who are dually-eligible for both medicare and medicaid and not enrolled in managed care shall be no more than the net savings to the state from the enhanced match rate for its medicaid-only managed care enrollees under section 2703.

((~~(39)~~)) (37) The health care authority shall not initiate any services that require expenditure of state general fund moneys unless expressly authorized in this act or other law. The health care authority may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the health care authority receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation providing appropriation authority, and an equal amount of appropriated state general fund moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

((~~(40)~~)) (38) Within the amounts appropriated in this section, the authority shall reimburse for primary care services provided by naturopathic physicians.

((~~(41)~~)) (39) Within amounts appropriated, the health care authority shall conduct a review of its management and staffing structure to identify efficiencies and opportunities to reduce full time equivalent employees and other administrative costs. A report summarizing the review and the authority's recommendations to reduce costs and full time equivalent employees must be submitted to the governor and legislature by November 1, 2013.

((~~(42) $17,279,000~~)) (40) $16,209,000 of the health benefit exchange account--state appropriation and ((~~$2,721,000~~)) $3,791,000 of the general fund--federal appropriation are provided solely to support the operations of the Washington health benefit exchange from January 1, 2015, to June 30, 2015. The Washington state health insurance pool administrator shall transfer $20,838,000 of pool contributions to the treasurer for deposit into the health benefit exchange account in calendar year 2014. The receipt and use of medicaid funds provided to the health benefit exchange from the health care authority are subject to compliance with state and federal regulations and policies governing the Washington apple health programs, including timely and proper application, eligibility, and enrollment procedures.

((~~(43)~~)) (41) Within the amounts appropriated in this section, the authority shall continue to provide coverage after December 31, 2013, for pregnant teens that qualify under existing pregnancy medical programs, but whose eligibility for pregnancy related services would otherwise end due to the application of the new modified adjusted gross income eligibility standard.

(((44))) (42) ((Upon implementation of the medicaid expansion under subsection (1) of this section, the breast and cervical cancer treatment program is eliminated. To maintain continuity of coverage, the authority shall offer the option to stay in a fee-for-service program to clients that are already enrolled in the breast and cervical cancer treatment program and will be transitioned into the new adult group upon implementation of the medicaid expansion. The authority will continue to provide coverage to clients that are already enrolled in the breast and cervical cancer treatment program at the time of program elimination until their courses of treatment are completed)) Sufficient amounts are appropriated in this section to restore medicaid coverage under the breast and cervical cancer treatment program.

((~~(45)~~)) (43) $40,000 of the general fund--state appropriation for fiscal year 2014 and $40,000 of the general fund--federal appropriation are provided solely for the authority to create a new position to provide adequate oversight and assistance to managed care organizations, rural health clinics, and federally qualified health centers under a new administratively streamlined payment methodology. Effective July 1, 2013, or upon obtaining any necessary federal approval, but in no case during the first quarter of a calendar year, the authority shall implement an administratively streamlined payment methodology for federally qualified health centers and rural health clinics. The authority's payments to managed care organizations shall include the full encounter payment comprised of both the standard and enhancement payments for federally qualified health centers and rural health clinics as defined in the medicaid state plan and in accordance with section 1902(bb) of the social security act (42 U.S.C. 1396a(bb)). At no time will a managed care organization be at risk for or have any claim to the supplemental payment portion of the rate which will be reconciled to ensure accurate payment and full pass through of the obligated funds. For any services eligible for encounter payments, as defined in the medicaid state plan, managed care organizations shall be required to pay at least the full published encounter rates directly to each clinic or center, and payments will be reconciled on at least an annual basis between the managed care organization and the authority, with final review and approval by the authority. At the option of any clinic, the enhancement payment can be received from the managed care organization on a per member per month basis for all assigned managed care enrollees in an amount prescribed by the authority. Nothing in this section is intended to disrupt mutually agreeable contractual arrangements between managed care organizations and clinics that impact how the standard payment for services is paid. The authority will require participating managed care organizations to reimburse federally qualified health centers and rural health clinics for clean claims in strict adherence to the timeliness of payment standards established under contract and specified for the medicaid fee-for-service program in section 1902(a)(37) of the social security act (42 U.S.C. 1396a(a)(37)), 42 C.F.R. Sec. 447.46, and specified for health carriers in WAC 284-43-321. The authority shall exercise all necessary options under its existing sanctions policy to enforce timely payment of claims. The authority shall ensure necessary staff and resources are identified to actively monitor and enforce the timeliness and accuracy of payments to federally qualified health centers and rural health clinics. By January 1, 2014, and after collaboration with federally qualified health centers, rural health clinics, managed care plans, and the centers for medicare and medicaid services, the authority will produce a report that provides options for a new payment methodology that rewards innovation and outcomes over volume of services delivered, and which maintains the integrity of the rural health clinic and federally qualified health center programs as outlined under federal law. The report will detail necessary federal authority for implementation and provide the benefits and drawbacks of each option.

((~~(46)~~)) (44) $3,605,000 of the general fund--state appropriation for fiscal year 2014 is provided solely to proportionally reduce the amounts that rural health clinics owe the state under the calendar year 2009 recoupment.

((~~(47)~~)) (45) Sufficient amounts are appropriated in this section to remove the mental health visit limit and to provide the shingles vaccine and screening, brief intervention, and referral to treatment benefits that are available in the medicaid alternative benefit plan in the current medicaid benefit plan beginning January 1, 2014. ((The authority shall monitor the costs of the habilitative benefit as part of the forecasting process but shall not provide this benefit in the current medicaid benefit plan without a direct appropriation in the omnibus appropriations act.
~~(48)~~)) (46) The appropriations in this section reflect savings and efficiencies achieved by modifying dispensing methods of contraceptive drugs. The authority must make arrangements for all medicaid programs offered through managed care plans or fee-for-service programs to require dispensing of contraceptive drugs with a one-year supply provided at one time unless a patient requests a smaller supply or the prescribing physician instructs that the patient must receive a smaller supply. Contracts with managed care plans must allow on-site dispensing of the prescribed contraceptive drugs at family planning clinics. Dispensing practices must follow clinical guidelines for appropriate prescribing and dispensing to ensure the health of the patient while maximizing access to effective contraceptive drugs.

((~~(49)~~)) (47)(a) $75,000 of the general fund--state appropriation for fiscal year 2014 and $75,000 of the general fund--federal appropriation are provided solely for preparing options with an expert consultant for possible implementation of a targeted premium assistance program and possible implementation of the federal basic health option. $75,000 of the amounts appropriated in this subsection is provided solely for the development of options related to the targeted premium assistance program. The authority shall develop options for a waiver request to the federal centers for medicare and medicaid services to implement a targeted premium assistance program for the expansion adults, identified in section 1902(a)(10)(A)(i)(VIII) of the social security act, with incomes above one hundred percent of the federal poverty level, and for children covered in the children's health insurance program with incomes above two hundred percent of the federal poverty level, with a goal of providing seamless coverage through the health benefit exchange and improving opportunities for families to be covered in the same health plans. The options must include the possibility of applying premiums for individuals and cost-sharing that may exceed the five percent of family income cap under federal law, and the options must include recommendations to make the targeted premium assistance program cost neutral. The authority shall submit a report on the options to the legislature and the governor by January 1, 2014. The authority is encouraged to be creative, use subject matter experts, and exhaust all possible options to achieve cost neutrality. The report shall also include a detailed plan and timeline. $75,000 of the amounts appropriated in this subsection is provided solely for the development of options related to the federal basic health option. The authority shall prepare options for implementing the federal basic health option as federal guidance becomes available. The authority shall submit a report on the options to the legislature and the governor by January 1, 2014, or ninety days following the release of federal guidance. The report must include a comparison of the premiums and cost-sharing under the federal basic health option with the premium assistance options described in this subsection, options for implementing the federal basic health option in combination with a premium assistance program, a detailed fiscal analysis for each coverage approach, including the estimated costs for system design and implementation, and information about impacted populations.

(b) Where possible, the authority shall leverage the same expert consultants to review each proposal and compare and contrast the approaches to ensure seamless coordination with the health benefit exchange.

(c) The authority shall collaborate with the joint select committee on health care oversight in the development of these options.

      (48) $229,000 of the general fund--state appropriation for fiscal year 2015 and $195,000 of the general fund--federal appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 2639 (mental health, chemical dependency) and Engrossed Second Substitute House Bill No. 2315 (suicide prevention). If Engrossed Second Substitute House Bill No. 2639 (mental health, chemical dependency) is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (49) $500,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to begin the necessary econometric modeling of the federal basic health program option to analyze the program enrollment, and the costs and impacts to the state, the enrollees, health care provider and facility reimbursement, and the insurance marketplace. By December 31, 2014, the authority shall publish a report on the findings of the econometric modeling. The report shall include impacts on:
      (a) Reimbursement levels affecting provider participation and its relationship to network adequacy in the program;
      (b) The financial stability of the Washington health benefit exchange, including enrollment, risk profile, and fees for operational sustainability; and
      (c) Continuity of care, access, and affordability of coverage for potential enrollees in the federal basic health program compared to the insurance marketplace.
      (50) $604,000 of the general fund--state appropriation for fiscal year 2014, $597,000 of the general fund--state appropriation for fiscal year 2015, and $18,320,000 of the general fund--federal appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 2572 (health care purchasing, delivery). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (51) $306,000 of the general fund--state appropriation for fiscal year 2015 and $306,000 of the general fund--federal appropriation are provided solely to implement Substitute House Bill No. 2310 (provider safety equipment). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (52) The health care authority may contract with any managed health care system to provide medicaid services to the extent that minimum contracting requirements defined by the authority are met for a given region. The authority shall respond to any request to contract from a managed health care system with a written explanation of the preliminary decision within ninety days, with a final decision contingent on successful completion of an onsite readiness review process conducted by the authority. New managed health care systems will only be considered for inclusion during annual contract renewal periods, and requests must be submitted no later than June 1 to be considered for the next contract year. The authority must heavily weigh the benefit of medicaid-exchange alignment in reaching its decision.
      (53) The appropriations to the authority in this act shall be expended for the purposes and in the amounts specified in this act. To the extent that appropriations in this section are insufficient to fund actual expenditures in excess of caseload forecasts and utilization assumptions, the authority, after May 1, 2014, may transfer general fund--state appropriations for fiscal year 2014 that are provided solely for a specified purpose. The authority shall not transfer funds, and the director of financial management shall not approve the transfer, unless the transfer is consistent with the objective of conserving, to the maximum extent possible, the expenditure of state funds. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing seven days prior to approving any allotment modifications or transfers under this subsection. The written notification shall include a narrative explanation and justification of changes, along with expenditures and allotments by budget unit and appropriation, both before and after any allotment modifications or transfers.
      (54) By January 1, 2015, the authority shall increase the fee-for-service reimbursement rates for private duty nursing services for medically fragile children, increase fee-for-service rates for home health care services, and add licensed clinical medical social services as covered home health services only to the extent that the authority determines that the provider rate increases and the additional covered services will not increase payment rates under healthy options managed care contracts.

Sec. 214. 2013 2nd sp.s. c 4 s 214 (uncodified) is amended to read as follows:

FOR THE HUMAN RIGHTS COMMISSION

General Fund‑-State Appropriation (FY 2014)......... (($2,077,000))

..................................................................................... $2,059,000

General Fund‑-State Appropriation (FY 2015)......... (($1,996,000))

..................................................................................... $2,073,000

General Fund‑-Federal Appropriation........................... $2,185,000

TOTAL APPROPRIATION.................................... (($6,258,000))

..................................................................................... $6,317,000

The appropriations in this section are subject to the following conditions and limitations: $218,000 of the general fund--federal appropriation is provided for additional financial resources from the U.S. department of housing and urban development for the investigation of discrimination cases involving service animals.

Sec. 215. 2013 2nd sp.s. c 4 s 215 (uncodified) is amended to read as follows:

FOR THE BOARD OF INDUSTRIAL INSURANCE APPEALS

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

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

Accident Account‑-State Appropriation................. (($19,763,000))

................................................................................... $19,775,000

Medical Aid Account‑-State Appropriation............ (($19,763,000))

................................................................................... $19,775,000

TOTAL APPROPRIATION.................................. (($39,536,000))

................................................................................... $39,560,000

Sec. 216. 2013 2nd sp.s. c 4 s 216 (uncodified) is amended to read as follows:

FOR THE CRIMINAL JUSTICE TRAINING COMMISSION

General Fund‑-State Appropriation (FY 2014)....... (($14,257,000))

................................................................................... $14,538,000

General Fund‑-State Appropriation (FY 2015)....... (($14,159,000))

................................................................................... $14,178,000

General Fund--Private/Local Appropriation............. (($3,059,000))

..................................................................................... $4,201,000

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

Municipal Criminal Justice Assistance Account‑-

State Appropriation.......................................................... $460,000

Washington Auto Theft Prevention Authority Account‑-

State Appropriation....................................................... $8,597,000

TOTAL APPROPRIATION.................................. (($40,680,000))

................................................................................... $42,122,000

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

(1) $5,000,000 of the general fund--state appropriation for fiscal year 2014 and $5,000,000 of the general fund--state appropriation for fiscal year 2015, are provided to the Washington association of sheriffs and police chiefs solely to verify the address and residency of registered sex offenders and kidnapping offenders under RCW 9A.44.130.

(2) ((~~$340,000~~)) $378,000 of the general fund--local appropriation is provided solely to purchase ammunition for the basic law enforcement academy. Jurisdictions shall reimburse to the criminal justice training commission the costs of ammunition, based on the average cost of ammunition per cadet, for cadets that they enroll in the basic law enforcement academy.

(3) The criminal justice training commission may not run a basic law enforcement academy class of fewer than 30 students.

(4) $100,000 of the general fund--state appropriation for fiscal year 2014 and $100,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a school safety program. The commission, in collaboration with the school safety center advisory committee, shall provide the school safety training for all school administrators and school safety personnel hired after the effective date of this section.

(5) $96,000 of the general fund--state appropriation for fiscal year 2014 and $96,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the school safety center within the commission. The safety center shall act as an information dissemination and resource center when an incident occurs in a school district in Washington or in another state, coordinate activities relating to school safety, and review and approve manuals and curricula used for school safety models and training. Through an interagency agreement, the commission shall provide funding for the office of the superintendent of public instruction to continue to develop and maintain a school safety information web site. The school safety center advisory committee shall develop and revise the training program, using the best practices in school safety, for all school safety personnel. The commission shall provide research-related programs in school safety and security issues beneficial to both law enforcement and schools.

(6) $123,000 of the general fund--state appropriation for fiscal year 2014 and $123,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the costs of providing statewide advanced driving training with the use of a driving simulator.

(7) $165,000 of the general fund--state appropriation for fiscal year 2014 and $165,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for crisis intervention training for peace officers. The commission shall incorporate eight hours of crisis intervention curriculum into its basic law enforcement academy and shall offer an eight-hour in-service crisis intervention training course.

(8) $35,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for a study to collect data on the number of reserve officers statewide. By December 31, 2014, the commission shall report to the legislature on the number of reserve peace officers who are employed at each local law enforcement agency in Washington.

Sec. 217. 2013 2nd sp.s. c 4 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

General Fund‑-State Appropriation (FY 2014)....... (($17,158,000))

................................................................................... $17,234,000

General Fund‑-State Appropriation (FY 2015)....... (($17,733,000))

................................................................................... $18,228,000

General Fund‑-Federal Appropriation......................... $11,876,000

Asbestos Account‑-State Appropriation........................... $366,000

Electrical License Account‑-State Appropriation.... (($37,124,000))

................................................................................... $40,274,000

Farm Labor Contractor Account‑-State Appropriation....... $28,000

Worker and Community Right-to-Know Account‑-

State Appropriation.......................................................... $903,000

Public Works Administration Account‑-State

Appropriation.......................................................... (($6,252,000))

..................................................................................... $7,860,000

Manufactured Home Installation Training Account‑-

State Appropriation.......................................................... $353,000

Accident Account‑-State Appropriation............... (($258,440,000))

................................................................................. $259,475,000

Accident Account‑-Federal Appropriation................... $13,626,000

Medical Aid Account‑-State Appropriation.......... (($278,697,000))

................................................................................. $279,711,000

Medical Aid Account‑-Federal Appropriation............... $3,186,000

Plumbing Certificate Account‑-State Appropriation. (($1,732,000))

..................................................................................... $1,746,000

Pressure Systems Safety Account‑-State

Appropriation............................................................... $4,193,000

TOTAL APPROPRIATION................................ (($651,667,000))

................................................................................. $659,059,000

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

(1) Pursuant to RCW 43.135.055, the department is authorized to increase elevator fees by up to 13.1 percent during the 2013-2015 fiscal biennium. This increase is necessary to support expenditures authorized in this section, consistent with chapter 70.87 RCW.

(2) $1,336,000 of the medical aid account--state appropriation is provided solely for implementation of Substitute Senate Bill No. 5362 (workers' compensation/vocational rehabilitation). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(3) $279,000 of the public works administration account--state appropriation, $4,000 of the medical aid account--state appropriation, and $4,000 of the accident account--state appropriation are provided solely for implementation of Substitute House Bill No. 1420 (transportation improvement projects). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(4) $104,000 of the general fund--state appropriation for fiscal year 2014 and $104,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to implement Substitute Senate Bill No. 5123 (farm internships). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(6)~~)) (5) $210,000 of the medical aid account--state appropriation and $630,000 of the accident account--state appropriation are provided solely for the contract costs and one staff position at the department for the purpose of implementing the logging safety initiative in an effort to reduce the frequency and severity of injuries in manual, or nonmechanized, logging. The department shall reduce $840,000 of workers compensation funding used for the safety and health investment project to maintain cost neutrality. Additional costs for the implementation of the logging safety initiative shall be accomplished by the department within existing resources to include the assignment of two full-time auditors specifically for this purpose. The department is directed to include $420,000 of these costs in its calculation of workers' compensation premiums for the forest products industry for 2014, 2015, and 2016 rates. The department shall report to the legislature by December 31, 2014, an approach for using a third party safety certification vendor, accomplishments of the taskforce, accomplishments on this effort to-date, and future plans. The report must identify options for future funding and make recommendations for permanent funding for this program.

(6) $132,000 of the accident account--state appropriation and $130,000 of the medical aid account--state appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 1467 (unpaid wages collection). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (7) $399,000 of the general fund--state appropriation for fiscal year 2015 and $21,000 of the electrical license account--state appropriation are provided solely to implement Substitute House Bill No. 2146 (labor and industries appeal bonds). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (8) $457,000 of the public works administration account--state appropriation is provided solely to implement Substitute House Bill No. 2331 (public works payroll records). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (9) $129,000 of the accident account--state appropriation and $130,000 of the medical aid account--state appropriation are provided solely to implement Substitute House Bill No. 2333 (employee antiretaliation act). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (10) $330,000 of the accident account--state appropriation and $330,000 of the medical aid account--state appropriation are provided solely to implement House Bill No. 2334 (employee status). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (11) $33,000 of the medical aid account--state appropriation is provided solely to implement Engrossed House Bill No. 2617 (interpreter services). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (12) $15,000 of the general fund--state appropriation for fiscal year 2014, and $35,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department of labor and industries to convene and provide support to a work group on agricultural and agricultural labor-related issues. The goals of the work group are to educate participants on relevant areas of regulation and business practices of the agricultural industry and to foster substantive, respectful, problem-solving oriented communication between multiple state agencies and those in and affected by the agricultural industry. The work group must strive to identify mutual points of interest and concern, and collaborate to find administrative solutions to issues affecting agriculture, including but not limited to, housing, workplace standards, and agricultural labor supply.
      (a) The work group must consist of ten members appointed by the governor with balanced and diverse representation that must include representatives from growers, agricultural industries, farmworker advocates, and labor.
      (b) State agencies including the department of agriculture, the employment security department, the department of labor and industries, the department of health, and the commission on Hispanic affairs must each identify a representative to participate on the work group as an ex officio member. The work group may invite other agencies to participate as needed.
      (c) The department of labor and industries must provide a facilitator and coordinate no more than six meetings in 2014 with the final number of meetings to be determined by the work group.
      (d) The facilitator, who may be an employee or contractor identified by the department of labor and industries, must assist work group members to identify a list of issues that may be implemented administratively for consideration by the work group and develop a work
plan for implementation.
      (e) The department of labor and industries must submit a report by December 1, 2014, to the office of financial management and to the appropriate fiscal and policy committees of the legislature. The report must include the following:
      (i) The list of work group members;
      (ii) The list of all issues identified by the work group that may be implemented administratively, including those that are agreed to by the entire work group and those that are supported by some members of the work group but not all; and
      (iii) The agreed upon work plan of administrative actions to be taken, including progress made, status as of the date of the report, and next steps.
      (f) Work group members are entitled to be reimbursed for travel expenses under RCW 43.03.050, 43.03.060, and 43.03.049.

Sec. 218. 2013 2nd sp.s. c 4 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF VETERANS AFFAIRS

(1) HEADQUARTERS

General Fund‑-State Appropriation (FY 2014).............. $1,996,000

General Fund‑-State Appropriation (FY 2015)......... (($1,900,000))

..................................................................................... $1,902,000

Charitable, Educational, Penal, and Reformatory

Institutions Account‑-State Appropriation.......................... $10,000

TOTAL APPROPRIATION.................................... (($3,906,000))

..................................................................................... $3,908,000

................................................................... (2) FIELD SERVICES

General Fund‑-State Appropriation (FY 2014)......... (($5,340,000))

..................................................................................... $5,348,000

General Fund‑-State Appropriation (FY 2015)......... (($5,316,000))

..................................................................................... $5,322,000

General Fund‑-Federal Appropriation...................... (($3,455,000))

..................................................................................... $3,460,000

General Fund‑-Private/Local Appropriation............. (($4,418,000))

..................................................................................... $4,550,000

Veteran Estate Management Account--Private/Local

Appropriation............................................................... $1,104,000

TOTAL APPROPRIATION.................................. (($19,633,000))

................................................................................... $19,784,000

The appropriations in this subsection are subject to the following conditions and limitations: $300,000 of the general fund--state appropriation for fiscal year 2014 and $300,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to provide crisis and emergency relief and education, training, and employment assistance to veterans and their families in their communities through the veterans innovation program.

(3) INSTITUTIONAL SERVICES

General Fund‑-State Appropriation (FY 2014) ((~~$102,000~~))

........................................................................................ $239,000

General Fund--State Appropriation (FY 2015).............. (($20,000))

........................................................................................ $156,000

General Fund‑-Federal Appropriation.................... (($68,981,000))

................................................................................... $69,622,000

General Fund‑-Private/Local Appropriation........... (($39,355,000))

................................................................................... $25,656,000

TOTAL APPROPRIATION................................ (($108,458,000))

................................................................................... $95,673,000

Sec. 219. 2013 2nd sp.s. c 4 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF HEALTH

General Fund‑-State Appropriation (FY 2014)....... (($60,230,000))

................................................................................... $60,103,000

General Fund‑-State Appropriation (FY 2015)....... (($59,198,000))

................................................................................... $64,363,000

General Fund‑-Federal Appropriation.................. (($536,074,000))

................................................................................. $535,692,000

General Fund‑-Private/Local Appropriation......... (($139,455,000))

................................................................................. $139,290,000

Hospital Data Collection Account‑-State Appropriation... $222,000

Health Professions Account‑-State Appropriation (($104,722,000))

................................................................................. $104,898,000

Aquatic Lands Enhancement Account‑-State Appropriation............

........................................................................................ $604,000

Emergency Medical Services and Trauma Care Systems

Trust Account‑-State Appropriation....................... (($12,319,000))

................................................................................... $11,198,000

Safe Drinking Water Account‑-State Appropriation. (($5,267,000))

..................................................................................... $5,255,000

Drinking Water Assistance Account‑-Federal

Appropriation........................................................ (($14,806,000))

................................................................................... $14,747,000

Waterworks Operator Certification‑-State

Appropriation............................................................... $1,560,000

Drinking Water Assistance Administrative Account‑-

State Appropriation.......................................................... $339,000

Site Closure Account--State Appropriation.................... $159,000

Biotoxin Account--State Appropriation......................... $1,323,000

State Toxics Control Account‑-State Appropriation.. (($3,949,000))

..................................................................................... $3,935,000

Medical Test Site Licensure Account‑-State

Appropriation.......................................................... (($4,737,000))

..................................................................................... $4,730,000

Youth Tobacco Prevention Account‑-State Appropriation...............

..................................................................................... $1,512,000

Public Health Supplemental Account‑-Private/Local

Appropriation............................................................... $3,236,000

Accident Account‑-State Appropriation........................... $304,000

Medical Aid Account‑-State Appropriation........................ $50,000

Medicaid Fraud Penalty Account--State

Appropriation.................................................................. $987,000

TOTAL APPROPRIATION................................ (($951,053,000))

................................................................................. $954,507,000

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

(1)(a) The department of health shall not initiate any services that will require expenditure of state general fund moneys unless expressly authorized in this act or other law. The department of health and the state board of health shall not implement any new or amended rules pertaining to primary and secondary school facilities until the rules and a final cost estimate have been presented to the legislature, and the legislature has formally funded implementation of the rules through the omnibus appropriations act or by statute. The department may seek, receive, and spend, under RCW 43.79.260 through 43.79.282, federal moneys not anticipated in this act as long as the federal funding does not require expenditure of state moneys for the program in excess of amounts anticipated in this act. If the department receives unanticipated unrestricted federal moneys, those moneys shall be spent for services authorized in this act or in any other legislation that provides appropriation authority, and an equal amount of appropriated state moneys shall lapse. Upon the lapsing of any moneys under this subsection, the office of financial management shall notify the legislative fiscal committees. As used in this subsection, "unrestricted federal moneys" includes block grants and other funds that federal law does not require to be spent on specifically defined projects or matched on a formula basis by state funds.

(b) The joint administrative rules review committee shall review the new or amended rules pertaining to primary and secondary school facilities under (a) of this subsection. The review committee shall determine whether (i) the rules are within the intent of the legislature as expressed by the statute that the rule implements, (ii) the rule has been adopted in accordance with all applicable provisions of law, or (iii) that the agency is using a policy or interpretive statement in place of a rule. The rules review committee shall report to the appropriate policy and fiscal committees of the legislature the results of committee's review and any recommendations that the committee deems advisable.

(2) In accordance with RCW 43.70.250 and 43.135.055, the department is authorized to establish and raise fees in fiscal year 2014 as necessary to meet the actual costs of conducting business and the appropriation levels in this section. This authorization applies to fees required for newborn screening, and fees associated with the following professions: Agency affiliated counselors; certified counselors; and certified advisors.

(3) $150,000 of the state toxics control account--state appropriation is provided solely to provide water filtration systems for low-income households with individuals at high public health risk from nitrate-contaminated wells in the lower Yakima basin.

(4)(a) $64,000 of the medicaid fraud penalty account--state appropriation is provided solely for the department to integrate the prescription monitoring program into the coordinated care electronic tracking program developed in response to section 213, chapter 7, Laws of 2012, 2nd sp. sess., commonly referred to as the seven best practices in emergency medicine.

(b) The integration must provide prescription monitoring program data to emergency department personnel when the patient registers in the emergency department. Such exchange may be a private or public joint venture, including the use of the state health information exchange.

(c) As part of the integration, the department shall request insurers and third-party administrators that provide coverage to residents of Washington state to provide the following to the coordinated care electronic tracking program:

(i) Any available information regarding the assigned primary care provider, and the primary care provider's telephone and fax numbers. This information is to be used for real-time communication to an emergency department provider when caring for a patient; and

(ii) Information regarding any available care plans or treatment plans for patients with higher utilization of services on a regular basis. This information is to be provided to the treating provider.

(5) $270,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the Washington autism alliance to assist autistic individuals and families with autistic children during the transition to federal health reform.

(6) $6,000 of the general fund--state appropriation for fiscal year 2014 and $5,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to convene a work group to study and recommend language for standardized clinical affiliation agreements for clinical placements associated with the education and training of physicians licensed under chapter 18.71 RCW, osteopathic physicians and surgeons licensed under chapter 18.57 RCW, and nurses licensed under chapter 18.79 RCW. The work group shall develop one recommended standardized clinical affiliation agreement for each profession or one recommended standardized clinical affiliation agreement for all three professions.

(a) When choosing members of the work group, the department shall consult with the health care personnel shortage task force and shall attempt to ensure that the membership of the work group is geographically diverse. The work group must, at a minimum, include representatives of the following:

(i) Two-year institutions of higher education;

(ii) Four-year institutions of higher education;

(iii) The University of Washington medical school;

(iv) The college of osteopathic medicine at the Pacific Northwest University of Health Sciences;

(v) The health care personnel shortage task force;

(vi) Statewide organizations representing hospitals and other facilities that accept clinical placements;

(vii) A statewide organization representing physicians;

(viii) A statewide organization representing osteopathic physicians and surgeons;

(ix) A statewide organization representing nurses;

(x) A labor organization representing nurses; and

(xi) Any other groups deemed appropriate by the department in consultation with the health care personnel shortage task force.

(b) The work group shall report its findings to the governor and the appropriate standing committees of the legislature no later than November 15, 2014.

(7) $65,000 of the general fund--state appropriation for fiscal year 2014 and $65,000 of the general fund--state appropriation for fiscal year 2015 are for the midwifery licensure and regulatory program to supplement revenue from fees. The department shall charge no more than five hundred twenty-five dollars annually for new or renewed licenses for the midwifery program.

(8) During the 2013-2015 fiscal biennium, each person subject to RCW 43.70.110(3)(c) is required to pay only one surcharge of up to twenty-five dollars annually for the purposes of RCW 43.70.112, regardless of how many professional licenses the person holds.

(9) $654,000 of the health professions account--state appropriation is provided solely for the implementation of Engrossed Senate Bill No. 5206 (health sciences library). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(10) $35,000 of the health professions account--state appropriation is provided solely for the implementation of House Bill No. 1003 (health professions licensees). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(11) $10,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1270 (board of denturists). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(12) $10,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1271 (denturism). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(13) $11,000 of the health professions account--state appropriation is provided solely for the implementation of House Bill No. 1330 (dental hygienists, assistants). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(14) (($1,008,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1343 (nurses surcharge). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.
(15))) $34,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1376 (suicide assessment training). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(16)~~)) (15) $10,000 of the health professions account--state appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1515 (medical assistants). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(17)~~)) (16) $2,185,000 of the health professions account--state appropriation is provided solely for the implementation of Second Substitute House Bill No. 1518 (disciplinary authorities). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(18)~~)) (17) $141,000 of the general fund--private/local appropriation is provided solely for the implementation of Substitute House Bill No. 1525 (birth certificates). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(19)~~)) (18) $220,000 of the health professions account--state appropriation is provided solely for the implementation of House Bill No. 1534 (impaired dentist program). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(20)~~)) (19) $51,000 of the health professions account--state appropriation is provided solely for the implementation of House Bill No. 1609 (board of pharmacy). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(21)~~)) (20) $12,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1629 (home care aide continuing education). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(22)~~)) (21) $18,000 of the health professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1737 (physician assistants). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(23)~~)) (22) $77,000 of the general fund--state appropriation for fiscal year 2014 and $38,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to develop a report on state efforts to prevent and control diabetes. The department, the health care authority, and the department of social and health services shall submit a coordinated report to the governor and the appropriate committees of the legislature by December 31, 2014, on the following:

(e) An estimate of savings, efficiencies, costs, and budgetary savings and resources required to implement the plans and budget recommendations identified in (d) of this subsection (23).

((~~(24)~~)) (23) Within the general fund--state amounts appropriated in this section, the department of health will develop and administer the certified home care aide examination translated into at least seven languages in addition to the languages in which the examination is available on the effective date of this act. The purpose of offering the examination in additional languages is to encourage an adequate supply of certified home care aides to meet diverse long-term care client needs.

      (24) $350,000 of the general fund--state appropriation for fiscal year 2015 is provided solely to implement Second Substitute House Bill No. 2643 (healthiest next generation). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (25) $2,950,000 of the general fund--state appropriation for fiscal year 2015 and $78,000 of the health professions account--state appropriation are provided solely to implement Engrossed Second Substitute House Bill No. 2149 (medical marijuana). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (26) $68,000 of the health professions account--state appropriation is provided solely to implement Engrossed Substitute House Bill No. 2160 (physical therapists). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (27) $251,000 of the health professions account--state appropriation is provided solely to implement Engrossed Substitute House Bill No. 2315 (suicide prevention). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (28)(a) Within the appropriations provided in this section, the department shall update its hepatitis C strategic plan for the state to include recommended actions pertaining to, at a minimum:
      (i) Using prevalence data to determine the number of undiagnosed hepatitis C patients in the state;
      (ii) How to best reach undiagnosed patients, with special consideration to people born between 1945 and 1965, and new infections;
      (iii) The status of the more than sixty thousand state residents who have already been diagnosed with hepatitis C;
      (iv) A framework for improving hepatitis C testing and linkage to medical care; and
      (v) A framework for the prevention of hepatitis C.
      (b) The department of health shall present its updated strategic hepatitis C plan to the appropriate committees of the legislature by September 15, 2014.

Sec. 220. 2013 2nd sp.s. c 4 s 220 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF CORRECTIONS

The appropriations to the department of corrections in this act must be expended for the programs and in the amounts specified in this section. However, after May 1, 2014, after approval by the director of financial management and unless specifically prohibited by this act, the department may transfer general fund--state appropriations for fiscal year 2014 between programs. The department may not transfer funds, and the director of financial management may not approve the transfer, unless the transfer is consistent with the objective of conserving, to the maximum extent possible, the expenditure of state funds. The director of financial management shall notify the appropriate fiscal committees of the senate and house of representatives in writing seven days prior to approving any deviations from appropriation levels. The written notification must include a narrative explanation and justification of the changes, along with expenditures and allotments by budget unit and appropriation, both before and after any allotment modifications or transfers.

(1) ADMINISTRATION AND SUPPORT SERVICES

General Fund‑-State Appropriation (FY 2014)....... (($56,437,000))

................................................................................... $56,357,000

General Fund‑-State Appropriation (FY 2015)....... (($54,779,000))

................................................................................... $55,197,000

Data Processing Revolving Account--State

Appropriation............................................................... $1,249,000

TOTAL APPROPRIATION................................ (($112,465,000))

................................................................................. $112,803,000

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

(a) $35,000 of the general fund--state appropriation for fiscal year 2014 and $35,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the support of a statewide council on mentally ill offenders that includes as its members representatives of community-based mental health treatment programs, current or former judicial officers, and directors and commanders of city and county jails and state prison facilities. The council will investigate and promote cost-effective approaches to meeting the long-term needs of adults and juveniles with mental disorders who have a history of offending or who are at-risk of offending, including their mental health, physiological, housing, employment, and job training needs.

(b) $150,000 of the general fund--state appropriation for fiscal year 2014 and $75,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to contract with a consultant who can facilitate and provide project expertise on the implementation of community and prison based offender programming that follows the risk-needs-responsivity model.

(i) By September 1, 2013, the department shall provide to the consultant an inventory of all existing programming both in prisons and in community operations. The department shall consult with the Washington state institute for public policy (WSIPP) to determine whether programs are evidence-based or research-based using definitions provided by WSIPP and shall include this information on the inventory.

(ii) By ((~~October 1, 2013~~)) March 1, 2014, the consultant shall report to the department, the office of financial management, and legislative fiscal committees on the department's current plans and processes for managing offender programming including processes for phasing-out ineffective programs and implementing evidence-based or research-based programs. All department programs should be considered by the consultant regardless of whether they are included on the most recent list of WSIPP approved identifiable evidence-based practices in (b)(i) of this subsection.

(iii) The WSIPP, in consultation with the department, shall systematically review selected programs to determine the effectiveness of these programs at reducing recidivism or other outcomes. The WSIPP shall conduct a benefit-cost analysis of these programs when feasible and shall report to the legislature by December 1, 2013.

(iv) Based on the report provided by the consultant and the WSIPP review of programs, the department shall work collaboratively with the consultant to develop and complete a written comprehensive implementation plan by ((~~January 15, 2014~~)) June 30, 2014. The implementation plan must clearly identify the types of programs to be included, the recommended locations where the programs will be sited, an implementation timeline, and a phasing of the projected number of participants needed to meet the threshold of available program funds.

(v) Using the written implementation plan as a guide, the department must have programs in place and fully phased-in no later than ((~~June 30, 2015~~)) January 1, 2016.

(vi) The department shall hold the consultant on retainer to assist the department as needed throughout the implementation process. The consultant shall review quarterly the actual implementation compared to the written implementation plan and shall provide a report to the secretary of the department. The department shall provide reports to the office of financial management and legislative fiscal committees as follows:

(A) The written comprehensive implementation plan shall be provided by January 15, 2014; and

(B) Written progress updates shall be provided by July 1, 2014, and by December 1, 2014.

(2) CORRECTIONAL OPERATIONS

General Fund‑-State Appropriation (FY 2014)..... (($605,039,000))

................................................................................. $599,248,000

General Fund‑-State Appropriation (FY 2015)..... (($604,704,000))

................................................................................. $601,804,000

General Fund‑-Federal Appropriation...................... (($3,322,000))

..................................................................................... $3,356,000

Washington Auto Theft Prevention Authority Account--

State Appropriation....................................................... $7,585,000

Environmental Legacy Stewardship Account--State

Appropriation.................................................................. $105,000

County Criminal Justice Assistance Account--State

Appropriation.................................................................. $390,000

TOTAL APPROPRIATION............................. (($1,221,145,000))

............................................................................... $1,212,488,000

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

(a) During the 2013-2015 fiscal biennium, when contracts are established or renewed for offender pay phone and other telephone services provided to inmates, the department shall select the contractor or contractors primarily based on the following factors: (i) The lowest rate charged to both the inmate and the person paying for the telephone call; and (ii) the lowest commission rates paid to the department, while providing reasonable compensation to cover the costs of the department to provide the telephone services to inmates and provide sufficient revenues for the activities funded from the institutional welfare betterment account.

(b) $501,000 of the general fund--state appropriation for fiscal year 2014 and $501,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to maintain the facility, property, and assets at the institution formerly known as the maple lane school in Rochester. The department may not house incarcerated offenders at the maple lane site until specifically directed to do so by the legislature.

(c) By ((~~December 1, 2013~~)) March 31, 2014, the department of corrections shall provide a report to the office of financial management and the appropriate fiscal and policy committees of the legislature that evaluates the department's inmate intake processes and expenditures and makes recommendations for improvements. The evaluation must include an analysis of lean management processes that, if adopted, could improve the efficiency and cost effectiveness of inmate intake.

(d) By December 1, 2013, the department of corrections shall provide a report to the office of financial management and the appropriate fiscal and policy committees of the legislature that evaluates the department's use of partial confinement and work release programs and makes recommendations for improving public safety and decreasing recidivism through increasing participation in partial confinement re-entry and work release programs. In making its recommendations, the department shall identify:

(i) Options for increasing the capacity of work release beds to meet the number of eligible offenders;

(ii) Potential cost savings to the state through contracting for or building new work release capacity;

(iii) Options for expanding eligibility for partial confinement, including creation of a structured re-entry program that includes stable housing, mandatory participation in evidence-based programs, and intensive supervision; and

(iv) Potential cost savings to the state from creation of a structured re-entry program.

(e) By December 1, 2013, the department of corrections shall provide a report to the office of financial management and the appropriate fiscal and policy committees of the legislature that evaluates the department's community parenting alternative program, and makes recommendations for increasing participation in the program with the goals of increasing public safety and decreasing recidivism. The evaluation shall include recommendations for increasing the placement of eligible offenders into the program and increasing eligibility to other populations. In making its recommendations, the department shall identify the percent of the eligible population currently entering the program, outcomes to-date for program participants, and potential cost savings from increasing placement of offenders into the program.

(f) The department of corrections shall contract with local and tribal governments for the provision of jail capacity to house offenders who violate the terms of their community supervision. A contract shall not have a cost of incarceration in excess of $85 per day per offender. A contract shall not have a year-to-year increase in excess of three percent per year. The contracts may include rates for the medical care of offenders which exceed the daily cost of incarceration and the limitation on year-to-year increase, provided that medical payments conform to the department's offender health plan, pharmacy formulary, and all off-site medical expenses are preapproved by department utilization management staff.

(g)(i) The legislature finds that it has taken several steps to mitigate the demand for prison capacity including funding evidence-based programming for offenders which is proven to reduce recidivism, funding evidence-based treatment alternatives to incarceration for drug-addicted offenders, standardizing inconsistencies in the drug sentencing grid, and authorizing the department to rent local jail beds. These steps will also assist the department's implementation of additional operational efficiencies by reducing costs related to offender intake, processing, and transportation.

(ii) Up to $1,119,000 of the general fund--state appropriation for fiscal year 2014 and up to $1,322,000 of the general fund--state appropriation for fiscal year 2015 may be used by the department to rent jail capacity for short-term offenders. In contracting for jail beds for short-term offenders, the department shall rent capacity from local and tribal governments to house offenders with an earned release date of less than one hundred twenty days remaining on his or her sentence at the time the offender would otherwise be transferred to a state correctional facility. The contracted daily costs for these offenders shall not exceed $70 per offender including medical costs.

(h) The department of corrections shall issue a competitive solicitation by August 1, 2013, to contract with local jurisdictions for the use of inmate bed capacity in lieu of prison beds operated by the state. The department may contract for up to 300 beds statewide to the extent that it is at no net cost to the department. The department shall calculate and report the average cost per offender per day, inclusive of all services, on an annual basis for a facility that is representative of average medium or lower offender costs. The duration of the contracts may be for up to four years. The department shall not pay a rate greater than $65 per day per offender for all costs associated with the offender while in the local correctional facility to include programming and health care costs, or the equivalent of $65 per day per bed including programming and health care costs for full units. The capacity provided at local correctional facilities must be for offenders whom the department of corrections defines as medium or lower security offenders. Programming provided for inmates held in local jurisdictions is included in the rate, and details regarding the type and amount of programming, and any conditions regarding transferring offenders will be negotiated with the department as part of any contract. Local jurisdictions must provide health care to offenders that meet standards set by the department. The local jail will provide all medical care including unexpected emergent care. The department must utilize a screening process to ensure that offenders with existing extraordinary medical/mental health needs are not transferred to local jail facilities. If extraordinary medical conditions develop for an inmate while at a jail facility the jail may transfer the offender back to the department, subject to terms of the negotiated agreement. Health care costs incurred prior to transfer will be the responsibility of the jail. The department will report to legislative fiscal committees and the office of financial management by November 1, 2013, to provide a status update on implementation.

(i) The department shall convene a work group to develop health care cost containment strategies at local jail facilities. The work group shall identify cost containment strategies in place at the department and at local jail facilities, identify the costs and benefits of implementing strategies in jail health-care facilities, and make recommendations on implementing beneficial strategies. The work group shall submit a report on its findings and recommendations to the fiscal committees of the legislature by October 1, 2013. The work group shall include jail administrators, representatives from health care facilities at the local jail level and the state prisons level, and other representatives as deemed necessary.

(j) $1,026,000 of the general fund--state appropriation for fiscal year 2014 and $781,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to expand the piloted risk-needs-responsivity model to include the use of cognitive behavioral therapy with evidence-based programming at two minimum security prison facilities and at the Monroe correctional complex.

(k) $23,653,000 of the general fund--state appropriation for fiscal year 2014 and $24,919,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for offender programming. Pursuant to section 220(1) of this act, the department shall develop and implement a written comprehensive plan for offender programming that prioritizes programs which follow the risk-needs-responsivity model, are evidence-based, and have measurable outcomes. The department is authorized to discontinue ineffective programs and to repurpose underspent funds according to the priorities in the written plan.

(l) $36,000 of the general fund--state appropriation for fiscal year 2014 and $36,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Engrossed Senate Bill No. 5484 (assault in the third-degree). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(m) $48,000 of the general fund--state appropriation for fiscal year 2014 and $48,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Engrossed Substitute House Bill No. 1383 (stalking protection orders). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(n) $36,000 of the general fund--state appropriation for fiscal year 2014 and $36,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Senate Bill No. 5149 (crimes against pharmacies). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(o) $24,000 of the general fund--state appropriation for fiscal year 2014 and $24,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Engrossed Substitute Senate Bill No. 5669 (trafficking). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(p) $24,000 of the general fund--state appropriation for fiscal year 2014 and $24,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Engrossed Senate Bill No. 5053 (vehicle prowling). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(q) $96,000 of the county criminal justice assistance--state appropriation is provided solely for implementation of Engrossed Senate Bill No. 5105 (rental vouchers for offenders). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(r) $239,000 of the general fund--state appropriation for fiscal year 2014, and $1,431,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to contract with Yakima county for the use of inmate bed capacity in lieu of prison beds operated by the state. The contract must conform to the provisions of subsection (h) of this section.
(s) $50,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the department to evaluate the provision of post-secondary education to offenders in the prison system and prepare a report of the findings. The report is due to the office of financial management and the appropriate policy and fiscal committees of the legislature by December 1, 2014. The report must include an evaluation of the need for post-secondary education for the offender population, the opportunities that exist to provide this program, the available curriculum, the cost per participant, the impact on recidivism, prison safety and public safety, and the options available after the offender's release to assist with the reentry and the continuation of education for program participants.
(t) The department shall assess possible uses for the Yakima county jail facility, including but not limited to, housing for short-term offenders; housing for community supervision violators or absconders; housing for offenders with special program needs such as offenders with mental health issues; and housing for older or infirm offenders. The department shall report to the appropriate policy and fiscal committees of the legislature by December 1, 2014, with findings, cost estimates, and recommendations for the use of the facility.

(3) COMMUNITY SUPERVISION

General Fund‑-State Appropriation (FY 2014)..... (($130,568,000))

................................................................................. $149,938,000

General Fund‑-State Appropriation (FY 2015)..... (($131,973,000))

................................................................................. $153,322,000
General Fund--Federal Appropriation.............................. $750,000

County Criminal Justice Assistance Account--State...... $2,249,000

Ignition Interlock Device Revolving Account--State..... $2,200,000

TOTAL APPROPRIATION................................ (($266,990,000))

................................................................................. $308,459,000

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

(a) $1,906,000 of the county criminal justice assistance account--state appropriation and $2,200,000 of the ignition interlock device revolving account--state appropriation are provided solely for the department to contract for additional residential drug offender sentencing alternative treatment slots. By December 1, 2013, the department shall provide a report to the appropriate fiscal committees of the house of representatives and the senate on the use of the additional treatment slots.

(b) $4,186,000 of the general fund--state appropriation for fiscal year 2014 and $6,362,000 of the general fund--state appropriation for fiscal year 2015 must be expended on evidence-based programs that follow the risk-needs-responsivity model. The department is authorized to use up to ten percent of these funds as necessary to secure physical space as needed to maximize program delivery of evidence-based treatment to all high-risk, high-need offenders in community supervision. Funding may be prioritized by the department to any program recognized as evidence-based for adult offenders by the Washington state institute for public policy.

(c) $16,513,000 of the general fund--state appropriation for fiscal year 2014 and $16,527,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for offender programming. Pursuant to section 220 (1) of this act, the department shall develop and implement a written comprehensive plan for offender programming that prioritizes programs which follow the risk-needs-responsivity model, are evidence-based, and have measurable outcomes. The department is authorized to discontinue ineffective programs and to repurpose underspent funds according to the priorities in the written plan.

(d) $107,000 of the county criminal justice--state appropriation is provided solely for implementation of Engrossed Senate Bill No. 5105 (rental vouchers for offenders). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(e) $250,000 of the general fund--state appropriation for fiscal year 2015 and $750,000 of the general fund--federal appropriation are provided solely for the second chance reentry grant demonstration project.

(4) CORRECTIONAL INDUSTRIES

General Fund‑-State Appropriation (FY 2014)......... (($6,780,000))

..................................................................................... $6,830,000

General Fund‑-State Appropriation (FY 2015).............. $7,182,000

TOTAL APPROPRIATION.................................. (($13,962,000))

................................................................................... $14,012,000

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

(a) $3,293,000 of the general fund--state appropriation for fiscal year 2014 and $3,707,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the stewardship of McNeil island. The department shall assume responsibility of all island maintenance excluding site specific maintenance operations for the special commitment center and the Pierce county secure transitional facility. The department shall as part of its industries program provide job skills to offenders while providing the minimum maintenance and preservation necessary for the state to remain in compliance with the federal deed for McNeil island. The department shall report on efficiencies and potential cost reductions to the office of financial management and legislative fiscal committees by December 15, 2013.

(b)(i) The department of social and health services shall transfer the stewardship of McNeil Island to the department of corrections industries program, effective September 1, 2013. The transferred responsibilities shall include marine operations, waste water treatment, water treatment, road maintenance, and any other general island maintenance that is not site specific to the operations of the special commitment center or the Pierce county secure community transition facility. Facility maintenance within the perimeter of the special commitment center shall remain the responsibility of the department of social and health services. Capital repairs and maintenance necessary to maintain the special commitment center on McNeil Island shall be managed by the department of social and health services. The legislature directs both departments to enter into an interagency agreement by August 1, 2013. The office of financial management shall oversee the negotiations of the interagency agreement. The interagency agreement must describe equipment that will transfer between the departments, warehouse space that will be shared by the departments, and occupancy requirements for any shops outside the perimeter of the special commitment center. The office of financial management will make the final determination on any disagreements between the departments on the details of the interagency agreement.

(ii) All employees of the department of social and health services engaged in performing the powers, functions, and duties transferred to the department of corrections industries program under this subsection, are transferred to the department of corrections.

(iii) All classified employees of department of social and health services assigned to the department of corrections under this subsection whose positions are within an existing bargaining unit description at the department of corrections shall become a part of the existing bargaining unit at the department of corrections and shall be considered an appropriate inclusion or modification of the existing bargaining unit under the provisions of chapter 41.80 RCW.

(5) INTERAGENCY PAYMENTS

General Fund‑-State Appropriation (FY 2014)....... (($35,345,000))

................................................................................... $41,726,000

General Fund‑-State Appropriation (FY 2015)....... (($32,115,000))

................................................................................... $38,111,000

TOTAL APPROPRIATION.................................. (($67,460,000))

................................................................................... $79,837,000

The appropriations in this subsection are subject to the following conditions and limitations: The state prison medical facilities may use funds appropriated in this subsection to purchase goods and supplies through hospital or other group purchasing organizations when it is cost effective to do so.

Sec. 221. 2013 2nd sp.s. c 4 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF SERVICES FOR THE BLIND

General Fund‑-State Appropriation (FY 2014)......... (($2,242,000))

..................................................................................... $2,227,000

General Fund‑-State Appropriation (FY 2015)......... (($2,197,000))

..................................................................................... $2,217,000

General Fund‑-Federal Appropriation.................... (($21,060,000))

................................................................................... $21,078,000

General Fund‑-Private/Local Appropriation....................... $60,000

TOTAL APPROPRIATION.................................. (($25,559,000))

................................................................................... $25,582,000

Sec. 222. 2013 2nd sp.s. c 4 s 222 (uncodified) is amended to read as follows:

FOR THE EMPLOYMENT SECURITY DEPARTMENT

General Fund‑-Federal Appropriation.................. ((~~$269,977,000~~))

................................................................................. $269,835,000

General Fund‑-Private/Local Appropriation........... (($34,206,000))

................................................................................... $34,177,000

Unemployment Compensation Administration Account‑-

Federal Appropriation.......................................... (($320,006,000))

................................................................................. $332,472,000

Administrative Contingency Account‑-State

Appropriation........................................................ (($22,728,000))

................................................................................... $22,484,000

Employment Service Administrative Account‑-State

Appropriation........................................................ (($35,567,000))

................................................................................... $36,548,000

TOTAL APPROPRIATION................................ (($682,484,000))

................................................................................. $695,516,000

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

(1) $5,000,000 of the unemployment compensation administration account‑-federal appropriation is from amounts made available to the state by section 903(g) of the social security act (Reed act). This amount is provided solely for continuing current unemployment insurance functions and department services to employers and job seekers.

(2) ((~~$12,386,000~~)) $23,585,000 of the unemployment compensation administration account‑-federal appropriation is from amounts made available to the state by section 903(g) of the social security act (Reed act). This amount is provided solely for the replacement of the unemployment insurance tax information system for the employment security department. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(3) $3,735,000 of the unemployment compensation account--federal appropriation is from amounts made available to the state by section 903(g) of the social security act (Reed act). This amount is provided solely for the replacement of call center technology to improve the integration of the telephone and computing systems to increase efficiency and improve customer service.

(4) $182,000 of the employment services administrative account--state appropriation is provided for costs associated with the second stage of the review and evaluation of the training benefits program as directed in section 15(2), chapter 4, Laws of 2011 (unemployment insurance program). This second stage shall be developed and conducted by the joint legislative audit and review committee and shall consist of further work on the process study and net-impact/cost-benefit analysis components of the evaluation.

(5) $240,000 of the administrative contingency account--state appropriation is provided solely for the employment security department to contract with a center for workers in King county. The amount appropriated in this subsection shall be used by the contracted center for workers to support initiatives that generate high-skill, high-wage jobs; improve workforce and training systems; improve service delivery for dislocated workers; and build alliances with community and environmental organizations.

(6) The department is prohibited from expending amounts appropriated in this section for implementation of chapter 49.86 RCW.

      (7) The employment security department shall collaborate with the workforce training and education coordinating board, the state board for community and technical colleges, the economic service administration, and the local workforce development councils to coordinate a comprehensive report on short-term and long-term workforce programs outcomes and funding. The employment security department shall compile a single report and submit it to the governor and appropriate committees of the legislature by December 1, 2014. Specifically:
      (a) The state board for community and technical colleges, in coordination with the economic services administration, shall report on short-term and long-term training outcomes for WorkFirst funded programs by activity (basic education, vocational education iBest, life skills, and any other related activities that are provided for WorkFirst students), including but not limited to:
      (i) The number and percent of individuals that complete educational activities;
      (ii) The number and percent of individuals employed within one quarter after program completion and their average wage;
      (iii) The number and percent of individuals employed within three quarters after program completion and their average wage;
      (iv) The number of students enrolled in short-term certificate programs by certificate type;
      (v) The number and percent of students who earn short-term certificates by certificate type;
      (vi) The number of students who accumulate at least forty-five credits and an industry recognized credential; and
      (vii) The amount of WorkFirst funds spent.
      The report shall also include recommendations for improving student retention and completion rates and any other system improvement recommendations.
      (b) The employment security department shall work with the workforce training and education coordinating board, the state board for community and technical colleges, and the local workforce development councils to map the flow of federal workforce investment act funds from initial receipt by the employment security department to final expenditure. The report shall include:
      (i) The total amount spent on direct training provided by the community and technical colleges from workforce investment act funds;
      (ii) The total amount spent by the employment security department on direct service provision;
      (iii) The number of students who enroll in short-term certificate programs;
      (iv) The number and percent of students who earn short-term certificates; and
      (v) The number and percent of students who accumulate at least forty-five credits and an industry recognized credential.
      (8) $3,809,000 of the unemployment compensation administration account--federal appropriation is from amounts made available to the state by section 903(g) of the social security act (Reed act). This amount is provided solely for the replacement of the unemployment insurance benefit system for the employment security department. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(End of part)

PART III
NATURAL RESOURCES

Sec. 301. 2013 2nd sp.s. c 4 s 301 (uncodified) is amended to read as follows:

FOR THE COLUMBIA RIVER GORGE COMMISSION

General Fund‑-State Appropriation (FY 2014)............ (($445,000))

........................................................................................ $442,000

General Fund‑-State Appropriation (FY 2015)............ (($446,000))

........................................................................................ $458,000

General Fund‑-Federal Appropriation................................ $31,000

General Fund‑-Private/Local Appropriation................ (($874,000))

........................................................................................ $883,000

TOTAL APPROPRIATION.................................... (($1,796,000))

..................................................................................... $1,814,000

Sec. 302. 2013 2nd sp.s. c 4 s 302 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ECOLOGY

General Fund‑-State Appropriation (FY 2014)....... (($25,929,000))

................................................................................... $25,983,000

General Fund‑-State Appropriation (FY 2015)....... (($25,506,000))

................................................................................... $25,524,000

General Fund‑-Federal Appropriation.................. (($105,230,000))

................................................................................. $103,230,000

General Fund‑-Private/Local Appropriation................ $16,912,000

Reclamation Account‑-State Appropriation.............. (($3,735,000))

..................................................................................... $3,998,000

Flood Control Assistance Account‑-State Appropriation $1,985,000

State Emergency Water Projects Revolving

Account‑-State Appropriation............................................ $40,000

Waste Reduction/Recycling/Litter Control‑-State

Appropriation.......................................................... (($9,722,000))

..................................................................................... $9,726,000

State Drought Preparedness Account‑-State Appropriation $204,000

State and Local Improvements Revolving Account

(Water Supply Facilities)‑-State Appropriation................ $426,000

Environmental Legacy Stewardship Account--State

Appropriation........................................................ (($43,748,000))

................................................................................... $44,384,000

Aquatic Algae Control Account‑-State Appropriation...... $513,000

Water Rights Tracking System Account‑-State

Appropriation.................................................................... $46,000

Site Closure Account‑-State Appropriation...................... $556,000

Wood Stove Education and Enforcement Account‑-State

Appropriation.................................................................. $612,000

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

Appropriation............................................................... $1,701,000

Water Rights Processing Account‑-State Appropriation... $135,000

State Toxics Control Account‑-State Appropriation (($124,238,000))

................................................................................. $124,377,000

State Toxics Control Account‑-Private/Local

Appropriation.................................................................. $979,000

Local Toxics Control Account‑-State Appropriation (($3,774,000))

..................................................................................... $3,779,000

Water Quality Permit Account‑-State Appropriation

.............................................................................. (($40,982,000))

................................................................................... $41,845,000

Underground Storage Tank Account‑-State

Appropriation.......................................................... (($3,347,000))

..................................................................................... $3,351,000

Biosolids Permit Account‑-State Appropriation........ (($1,848,000))

..................................................................................... $2,147,000

Hazardous Waste Assistance Account‑-State

Appropriation.......................................................... (($6,037,000))

..................................................................................... $6,040,000

Air Pollution Control Account‑-State Appropriation (($3,128,000))

..................................................................................... $3,133,000

Oil Spill Prevention Account‑-State Appropriation... (($5,684,000))

..................................................................................... $6,496,000

Air Operating Permit Account‑-State Appropriation. (($3,132,000))

..................................................................................... $3,149,000

Freshwater Aquatic Weeds Account‑-State Appropriation..............

..................................................................................... $1,409,000

Oil Spill Response Account‑-State Appropriation......... $7,076,000

Water Pollution Control Revolving Account‑-State

Appropriation.................................................................. $356,000

Water Pollution Control Revolving Account‑-Federal

Appropriation............................................................... $1,505,000

Water Pollution Control Revolving Administration

Account‑-State Appropriation....................................... $1,021,000

Radioactive Mixed Waste Account--State

Appropriation........................................................ (($13,800,000))

................................................................................... $14,336,000

TOTAL APPROPRIATION................................ (($455,316,000))

................................................................................. $456,974,000

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

(1) $170,000 of the oil spill prevention account‑-state appropriation is provided solely for a contract with the University of Washington's sea grant program to continue an educational program targeted to small spills from commercial fishing vessels, ferries, cruise ships, ports, and marinas.

(2) Pursuant to RCW 43.135.055, the department is authorized to increase the following fees as necessary to meet the actual costs of conducting business and the appropriation levels in this section: Wastewater discharge permit, not more than 4.55 percent in fiscal year 2014 and 4.63 percent in fiscal year 2015; mixed waste management service charge authorized in RCW 70.105.280, not more than 1.82 percent in fiscal year 2014 and 0.62 percent in fiscal year 2015; and reasonably available control technology fee.

(3) $1,981,000 of the state toxics control account‑-state appropriation is for the department to provide training regarding the benefits of low-impact development including, but not limited to, when the use of low-impact development is appropriate and feasible, and the design, installation, maintenance, and best practices of low-impact development. The department will consult with Washington State University extension low-impact development technical center and others in the development of the low-impact technical training. As appropriate, the department may contract with the Washington State University extension low-impact development technical center, private sector vendors, associations, and others to deliver the technical training. The training must be provided free of cost to phase I and phase II permittees and the private development community including builders, engineers, and other industry professionals. The training must be sequenced geographically and provided in time for local jurisdictions to comply with RCW 90.48.260 and 36.70A.130(5). By August 1, 2013, the department of ecology shall provide the governor and appropriate legislative committees a plan for how low-impact development training funds will be spent during fiscal years 2014 through 2017.

(4) $440,000 of the state toxics control account--state appropriation is provided solely for administering the water pollution control facilities financial assistance program authorized in chapter 90.50A RCW.

(5) $350,000 of the state toxics control account--state appropriation is provided solely for the Spokane river regional toxics task force to support their efforts to address elevated levels of polychlorinated biphenyls in the Spokane river. Funding will be used to determine the extent of the cleanup required, implement cleanup actions to meet applicable water quality standards, and prevent recontamination.

(6) $516,000 of the state toxics control account--state appropriation is provided solely for the department to support an ultrafine particulate study to determine how, if at all, the biomass cogeneration facilities in Port Townsend and Port Angeles may impact air quality and the health of citizens in the region.

(7) $65,000 of the water quality permit account--state appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1245 (derelict and abandoned vessels). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

((~~(9)~~)) (8) The department shall collaborate with the middle snake river watershed, WRIA 35 planning unit in implementing its watershed plan.

((~~(10)~~)) (9)(a) $14,000,000 of the general fund--state appropriation for fiscal year 2014 and $14,000,000 of the general fund--state appropriation for fiscal year 2015 are for activities within the water resources program.

(b) Of the amounts provided in (a) of this subsection, $500,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for processing water right permit applications only if the department of ecology issues at least five hundred water right decisions in fiscal year 2014, and if the department of ecology does not issue at least five hundred water right decisions in fiscal year 2014 the amount provided in this subsection shall lapse and remain unexpended. Permit decisions for the Columbia river basin count toward the five hundred water rights decisions under this subsection. The department of ecology shall submit a report to the office of financial management and the state treasurer by June 30, 2014, that documents whether five hundred water right decisions were issued in fiscal year 2014. For the purposes of this subsection, applications that are voluntarily withdrawn by an applicant do not count towards the five hundred water right decision requirement. For the purposes of water budget-neutral requests under chapter 173-539A WAC, multiple domestic connections authorized within a single water budget-neutral decision are considered one decision for the purposes of this subsection.

((~~(11)~~)) (10) The department of ecology, in consultation with the office of financial management, shall prepare a facilities plan to reduce the agency's facilities obligation and the agency's cost per FTE for its facilities by 2017 to align with comparable state agencies. The plan must be submitted to the office of financial management and the appropriate legislative fiscal committees by November 1, 2013. The plan must include: (a) An inventory of all currently owned and leased buildings, consistent with the data provided through the state's facilities inventory process prescribed by the office of financial management annually by September 1st; (b) a list of facilities solutions that will reduce costs with an emphasis on consolidation, collocation, and alternative space solutions such as shared workspace and mobile work; and (c) a department-wide coordinated process and plan for regularly evaluating facility needs.

(11) $157,000 of the oil spill prevention account--state appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 2347 (oil transportation safety). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 303. 2013 2nd sp.s. c 4 s 303 (uncodified) is amended to read as follows:

FOR THE STATE PARKS AND RECREATION COMMISSION

General Fund‑-State Appropriation (FY 2014)......... (($4,254,000))

..................................................................................... $4,308,000

General Fund‑-State Appropriation (FY 2015)......... (($4,254,000))

..................................................................................... $4,430,000

General Fund‑-Federal Appropriation........................... $6,014,000

Winter Recreation Program Account‑-State

Appropriation.......................................................... (($2,065,000))

..................................................................................... $2,465,000

ORV and Nonhighway Vehicle Account‑-State Appropriation

........................................................................................ $215,000

Snowmobile Account‑-State Appropriation................... $4,859,000

Aquatic Lands Enhancement Account‑-State Appropriation............

........................................................................................ $363,000

Parks Renewal and Stewardship Account‑-State

Appropriation...................................................... (($103,065,000))

................................................................................. $105,935,000

Parks Renewal and Stewardship Account‑-Private/Local

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

Waste Reduction/Recycling/Litter Control Account--State

Appropriation............................................................... $1,700,000

TOTAL APPROPRIATION................................ (($127,089,000))

................................................................................. $130,589,000

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

(1) $79,000 of the general fund‑-state appropriation for fiscal year 2014 and $79,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for a grant for the operation of the Northwest weather and avalanche center.

(2) Prior to closing any state park, the commission must notify all affected local governments and relevant nonprofit organizations of the intended closure and provide an opportunity for the notified local governments and nonprofit organizations to elect to acquire, or enter into, a maintenance and operating contract with the commission that would allow the park to remain open.

(3) The commission shall prepare a report on its efforts to increase revenue from all sources, including the discover pass. The report shall also include a status update on the fiscal health of the state parks system, and shall be submitted to the office of financial management and the appropriate committees of the legislature by October 28, 2013.

(4) $54,000 of the general fund--state appropriation for fiscal year 2014 and $51,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of Substitute House Bill No. 2331 (public works payroll records). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
(5) $25,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Engrossed Second Substitute House Bill No. 2192 (state agency permitting). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 304. 2013 2nd sp.s. c 4 s 304 (uncodified) is amended to read as follows:

FOR THE RECREATION AND CONSERVATION FUNDING BOARD

General Fund‑-State Appropriation (FY 2014)............ (($823,000))

........................................................................................ $896,000

General Fund‑-State Appropriation (FY 2015)............ (($815,000))

........................................................................................ $902,000

General Fund‑-Federal Appropriation........................... $3,425,000

General Fund‑-Private/Local Appropriation.................. (($24,000))

........................................................................................ $124,000

Aquatic Lands Enhancement Account‑-State Appropriation............

........................................................................................ $480,000

Firearms Range Account‑-State Appropriation................... $37,000

Recreation Resources Account‑-State Appropriation (($3,086,000))

..................................................................................... $3,165,000

NOVA Program Account‑-State Appropriation................ $964,000

TOTAL APPROPRIATION.................................... (($9,654,000))

..................................................................................... $9,993,000

Sec. 305. 2013 2nd sp.s. c 4 s 305 (uncodified) is amended to read as follows:

FOR THE ENVIRONMENTAL AND LAND USE HEARINGS OFFICE

General Fund‑-State Appropriation (FY 2014)......... (($2,227,000))

..................................................................................... $2,210,000

General Fund‑-State Appropriation (FY 2015)......... (($2,147,000))

..................................................................................... $2,192,000

TOTAL APPROPRIATION.................................... (($4,374,000))

..................................................................................... $4,402,000

Sec. 306. 2013 2nd sp.s. c 4 s 306 (uncodified) is amended to read as follows:

FOR THE CONSERVATION COMMISSION

General Fund‑-State Appropriation (FY 2014) ((~~$6,841,000~~))

$6,819,000

General Fund‑-State Appropriation (FY 2015)......... (($6,738,000))

..................................................................................... $6,760,000

General Fund‑-Federal Appropriation........................... $2,301,000

State Toxics Control Account--State Appropriation....... $1,000,000

TOTAL APPROPRIATION....................................... $16,880,000

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

(1) Within the amounts appropriated in this section, the conservation commission, in consultation with conservation districts, must submit to the office of financial management and legislative fiscal committees by December 10, 2013, a report outlining opportunities to minimize districts' overhead costs, including consolidation of conservation districts within counties in which there is more than one district. The report must include details on the anticipated future savings that could be expected from implementing these efficiencies starting on July 1, 2014.

(2) $300,000 of the general fund--state appropriation for fiscal year 2014 and $246,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to implement the voluntary stewardship program in Thurston and Chelan counties. These amounts may not be used to fund agency indirect and administrative expenses.

(3) $1,000,000 of the general fund--federal appropriation is provided solely to implement the voluntary stewardship program statewide. The commission shall place the appropriation in this subsection in unallotted status, and may not allot any of these funds until the federal government has provided funding to the commission for the purpose of implementing the voluntary stewardship program.

(4) The conservation commission must evaluate the current system for the election of conservation district board supervisors and recommend improvements to ensure the highest degree of public involvement in these elections. The commission must engage with stakeholder groups and conservation districts to gather a set of options for improvement to district elections, which must include an option aligning district elections with state and local general elections. The commission must submit a report detailing the options to the office of financial management and appropriate committees of the legislature by December 10, 2013.

(5) $975,000 of the general fund--state appropriation for fiscal year 2014 and $975,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for state conservation commission category one funding distribution to conservation districts in the amount of $25,000 in fiscal year 2014 and $25,000 in fiscal year 2015 for each county. If a county contains only one conservation district, the county may receive more funding at the discretion of the state conservation commission.
(6) The state conservation commission may provide additional funding to a conservation district if the conservation district conducts elections at such times as and consistent with the general election law, chapter 29A.04 RCW.

Sec. 307. 2013 2nd sp.s. c 4 s 307 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF FISH AND WILDLIFE

General Fund‑-State Appropriation (FY 2014)....... (($30,321,000))

................................................................................... $30,732,000

General Fund‑-State Appropriation (FY 2015)....... (($28,999,000))

................................................................................... $30,291,000

General Fund‑-Federal Appropriation.................. (($107,585,000))

................................................................................. $107,914,000

General Fund‑-Private/Local Appropriation........... (($58,784,000))

................................................................................... $58,680,000

ORV and Nonhighway Vehicle Account‑-State Appropriation........

........................................................................................ $397,000

Aquatic Lands Enhancement Account‑-State

Appropriation........................................................ (($15,919,000))

................................................................................... $15,941,000

Recreational Fisheries Enhancement‑-State

Appropriation.......................................................... (($2,590,000))

..................................................................................... $2,617,000

Environmental Legacy Stewardship Account--State

Appropriation............................................................... $1,224,000

Warm Water Game Fish Account‑-State Appropriation

................................................................................ (($2,507,000))

..................................................................................... $2,509,000

Eastern Washington Pheasant Enhancement Account‑-State

Appropriation.................................................................. $849,000

Aquatic Invasive Species Enforcement Account‑-State

Appropriation.................................................................. $209,000

Aquatic Invasive Species Prevention Account‑-State

Appropriation.................................................................. $737,000

State Wildlife Account‑-State Appropriation........ (($103,460,000))

................................................................................. $103,522,000

Special Wildlife Account‑-State Appropriation............. $2,405,000

Special Wildlife Account‑-Federal Appropriation............ $500,000

Special Wildlife Account‑-Private/Local Appropriation $3,446,000

Wildlife Rehabilitation Account‑-State Appropriation...... $259,000

Hydraulic Project Approval Account‑-State

Appropriation............................................................. (($674,000))

........................................................................................ $966,000

Regional Fisheries Enhancement Salmonid Recovery

Account‑-Federal Appropriation................................... $5,001,000

Oil Spill Prevention Account‑-State Appropriation..... (($917,000))

........................................................................................ $941,000

Oyster Reserve Land Account‑-State Appropriation......... $773,000

TOTAL APPROPRIATION................................ (($367,556,000))

................................................................................. $369,913,000

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

(1) ((~~$130,000~~)) $675,000 of the general fund--state appropriation for fiscal year 2014 and $130,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to pay for emergency fire suppression costs. These amounts may not be used to fund agency indirect and administrative expenses.

(2) Prior to submitting its 2015-2017 biennial operating and capital budget request related to state fish hatcheries to the office of financial management, the department shall contract with the hatchery scientific review group (HSRG) to review this request. This review shall: (a) Determine if the proposed requests are consistent with HSRG recommendations; (b) prioritize the components of the requests based on their contributions to protecting wild salmonid stocks and meeting the recommendations of the HSRG; and (c) evaluate whether the proposed requests are being made in the most cost effective manner. The department shall provide a copy of the HSRG review to the office of financial management with their agency budget proposal.

(3) $400,000 of the general fund‑-state appropriation for fiscal year 2014 and $400,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for a state match to support the Puget Sound nearshore partnership between the department and the U.S. army corps of engineers.

(4) Within the amounts appropriated in this section, the department shall identify additional opportunities for partnerships in order to keep fish hatcheries operational. Such partnerships shall aim to maintain fish production and salmon recovery with less reliance on state operating funds.

(5) During the 2013-2015 fiscal biennium, the department must retain ownership and continue to occupy the downtown Olympia office building at 600 Capitol Way.

(6) $1,000,000 of the state wildlife account--state appropriation is provided solely to the department for resources that serve to promote and engage nonlethal deterrence methods relating to wolf and livestock interaction with a priority given to funding cooperative agreements with livestock producers, and of this amount, $250,000 in fiscal year 2014 is provided solely for compensation for injury or loss of livestock caused by wolves as prescribed in chapter 77.36 RCW.

(7) $100,000 of the state wildlife account--state appropriation is provided solely for the transfer of trout from the Clarks creek hatchery to the Lakewood hatchery.

(8) $100,000 of the general fund--state appropriation for fiscal year 2014 and $100,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the production of steelhead, coho, and Chinook salmon at the Clarks creek hatchery.

(9) $200,000 of the state wildlife account--state appropriation, $50,000 of the general fund--state appropriation for fiscal year 2014, and $50,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the department to increase production of juvenile fall Chinook on the Cowlitz river. The funds provided may be used to match or leverage funds from private or public sources for the same purpose.

(10) $596,000 of the general fund--state appropriation for fiscal year 2014 and $596,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for weed assessments and for payments in lieu of real property taxes to counties that elect to receive the payments for department owned game lands within the county.

(11) $10,000 of the aquatic lands enhancement account--state appropriation is provided solely for development of an aquatic invasive species passport program to improve the efficiency and effectiveness of watercraft inspections by expediting aquatic invasive species watercraft inspections for watercraft at low risk of transmitting invasive species and prioritizing the use of available resources for the inspection of high risk vessels.

(12) Within the amounts appropriated in this section, the department must deploy additional wildlife conflict specialists to provide landowner assistance and address wildlife conflicts, with at least one additional specialist primarily assigned to each of the following areas: Administrative region six of the department; Okanogan and Chelan counties in administrative region two of the department; and Whatcom and Skagit counties in administrative region four of the department.

(13) $25,000 of the general fund--state appropriation for fiscal year 2014 and $25,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of House Bill No. 1112 (science and public policy). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(14) Within the amounts appropriated in this section the department shall work with the regional fisheries enhancement groups to identify a revenue source or sources capable of providing long-term funding to support the community-based salmon restoration work of regional fisheries enhancement groups. The department shall work with the regional fisheries enhancement group coalition to submit a report to the office of financial management and the appropriate legislative committees by December 1, 2013, with the outcomes and recommendations.

(15) $24,000 of the oil spill prevention account--state appropriation is provided solely for implementation of Engrossed Second Substitute House Bill No. 2347 (oil transportation safety). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 308. 2013 2nd sp.s. c 4 s 308 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF NATURAL RESOURCES

General Fund‑-State Appropriation (FY 2014)....... (($42,515,000))

................................................................................... $51,674,000

General Fund‑-State Appropriation (FY 2015)....... (($45,092,000))

................................................................................... $45,073,000

General Fund‑-Federal Appropriation......................... $26,963,000

General Fund‑-Private/Local Appropriation.................. $2,372,000

Forest Development Account‑-State Appropriation (($49,054,000))

................................................................................... $50,687,000

ORV and Nonhighway Vehicle Account‑-State Appropriation........

..................................................................................... $4,494,000

Surveys and Maps Account‑-State Appropriation..... (($2,170,000))

..................................................................................... $1,680,000

Aquatic Lands Enhancement Account‑-State

Appropriation.......................................................... (($3,634,000))

..................................................................................... $3,628,000

Snowmobile Account--State Appropriation...................... $100,000

Environmental Legacy Stewardship Account--State

Appropriation............................................................... $3,948,000

Resources Management Cost Account‑-State

Appropriation...................................................... (($111,073,000))

................................................................................. $116,498,000

Surface Mining Reclamation Account‑-State

Appropriation.......................................................... (($3,972,000))

..................................................................................... $3,969,000

Disaster Response Account‑-State Appropriation.......... $5,000,000

Forest and Fish Support Account‑-State Appropriation $11,759,000

Aquatic Land Dredged Material Disposal Site

Account‑-State Appropriation..................................... (($843,000))

........................................................................................ $463,000

Natural Resources Conservation Areas Stewardship

Account‑-State Appropriation............................................ $34,000

Marine Resources Stewardship Trust Account--State

Appropriation............................................................... $3,700,000

State Toxics Control Account‑-State Appropriation........... $80,000

Forest Practices Application Account‑-State

Appropriation............................................................... $1,697,000

Air Pollution Control Account‑-State Appropriation........ $785,000

NOVA Program Account‑-State Appropriation................ $950,000

Derelict Vessel Removal Account‑-State Appropriation $1,770,000

Agricultural College Trust Management Account‑-State

Appropriation............................................................... $2,712,000

TOTAL APPROPRIATION................................ (($324,717,000))

................................................................................. $340,036,000

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

(1) $1,389,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,323,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for deposit into the agricultural college trust management account and are provided solely to manage approximately 70,700 acres of Washington State University's agricultural college trust lands.

(2) ((~~$19,099,000~~)) $28,271,000 of the general fund‑-state appropriation for fiscal year 2014, $19,099,000 of the general fund‑-state appropriation for fiscal year 2015, and $5,000,000 of the disaster response account‑-state appropriation are provided solely for emergency fire suppression. None of the general fund and disaster response account amounts provided in this subsection may be used to fund agency indirect and administrative expenses. Agency indirect and administrative costs shall be allocated among the agency's remaining accounts and appropriations. The department of natural resources shall submit a quarterly report to the office of financial management and the legislative fiscal committees detailing information on current and planned expenditures from the disaster response account. This work shall be done in coordination with the military department.

(3) $5,000,000 of the forest and fish support account‑-state appropriation is provided solely for outcome-based, performance contracts with tribes to participate in the implementation of the forest practices program. Contracts awarded may only contain indirect costs set at or below the rate in the contracting tribe's indirect cost agreement with the federal government. If federal funding for this purpose is reinstated, the amount provided in this subsection shall lapse.

(4) $518,000 of the forest and fish support account‑-state appropriation is provided solely for outcome-based performance contracts with nongovernmental organizations to participate in the implementation of the forest practices program. Contracts awarded may only contain indirect cost set at or below a rate of eighteen percent.

(5) $717,000 of the forest and fish support account‑-state appropriation is provided solely to fund interagency agreements with the department of ecology and the department of fish and wildlife as part of the adaptive management process.

(6) $440,000 of the state general fund‑-state appropriation for fiscal year 2014 and $440,000 of the state general fund‑-state appropriation for fiscal year 2015 are provided solely for forest work crews that support correctional camps and are contingent upon continuing operations of Naselle youth camp.

(7) $2,382,000 of the resource management cost account--state appropriation is for addressing the growing backlog of expired aquatic leases and new aquatic lease applications. The department shall implement a Lean process to improve the lease review process and further reduce the backlog, and submit a report on its progress in addressing the backlog and implementation of the Lean process to the governor and the appropriate committees of the legislature by October 1, 2013.

(8) $1,948,000 of the environmental legacy stewardship account--state appropriation is provided solely for the department to pay a portion of the costs to complete remedial investigation work at Whitmarsh landfill and Mill site A and perform final-year maintenance of the Olympic view triangle site in Commencement Bay.

(9) $265,000 of the resources management cost account--state appropriation is provided solely for implementation of Second Substitute House Bill No. 1764 (geoduck diver licenses). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(10) $425,000 of the derelict vessel removal account--state appropriation is provided solely for implementation of Engrossed Substitute House Bill No. 1245 (derelict and abandoned vessels). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(11) $3,700,000 of the marine resources stewardship trust account--state appropriation is provided solely for implementation of priority marine management planning efforts including mapping activities, ecological assessment, data tools, stakeholder engagement, and all other work identified in Engrossed Senate Bill No. 5603 (marine advisory councils) during the 2013-2015 fiscal biennium.

Sec. 309. 2013 2nd sp.s. c 4 s 309 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

General Fund‑-State Appropriation (FY 2014)....... (($15,300,000))

................................................................................... $15,274,000

General Fund‑-State Appropriation (FY 2015)....... (($15,294,000))

................................................................................... $16,333,000

General Fund‑-Federal Appropriation.................... (($23,098,000))

................................................................................... $23,054,000

General Fund‑-Private/Local Appropriation..................... $192,000

Aquatic Lands Enhancement Account‑-State

Appropriation.......................................................... (($2,837,000))

..................................................................................... $2,839,000

State Toxics Control Account‑-State Appropriation.. ((~~$5,203,000~~))

..................................................................................... $5,206,000

Water Quality Permit Account‑-State Appropriation..... (($70,000))

.......................................................................................... $73,000

TOTAL APPROPRIATION.................................. (($61,994,000))

................................................................................... $62,971,000

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

(1) $5,308,445 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$5,302,905~~)) $6,302,905 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for implementing the food assistance program as defined in RCW 43.23.290.

(2) Pursuant to RCW 43.135.055 and 16.57.220, the department is authorized to institute livestock inspection fees in the 2013-2015 fiscal biennium for calves less than thirty days old.

(3) Pursuant to RCW 43.135.055 and 16.36.150, the department is authorized to establish a fee for the sole purpose of purchasing and operating a database and any other technology or software needed to administer animal disease traceability activities for cattle sold or slaughtered in the state or transported out of the state.

(4) Within the amounts appropriated in this section, the department of agriculture must convene and facilitate a work group with appropriate stakeholders to review fees supporting programs within the department that are also supported with state general fund. In developing strategies to make the program work more self-supporting, the workgroup will consider, at minimum, the length of time since the last fee increase, similar fees that exist in neighboring states, and fee increases that will ensure reasonable competitiveness in the respective industries. The workgroup must submit a report containing recommendations that will make each of the fee supported programs within the department less reliant on state general fund to the office of financial management and legislative fiscal committees by December 1, 2013.

(5) $72,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of House Bill No. 2405 (hemp/commercial animal feed). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

Sec. 310. 2013 2nd sp.s. c 4 s 310 (uncodified) is amended to read as follows:

FOR THE WASHINGTON POLLUTION LIABILITY INSURANCE PROGRAM

Pollution Liability Insurance Program Trust

Account‑-State Appropriation..................................... (($987,000))

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

Sec. 311. 2013 2nd sp.s. c 4 s 311 (uncodified) is amended to read as follows:

FOR THE PUGET SOUND PARTNERSHIP

General Fund‑-State Appropriation (FY 2014)......... (($2,416,000))

..................................................................................... $2,398,000

General Fund‑-State Appropriation (FY 2015)......... (($2,318,000))

..................................................................................... $2,403,000

General Fund‑-Federal Appropriation.................... (($11,570,000))

................................................................................... $11,630,000

Aquatic Lands Enhancement Account‑-State Appropriation............

..................................................................................... $1,920,000

State Toxics Control Account‑-State Appropriation.... (($676,000))

........................................................................................ $682,000

TOTAL APPROPRIATION.................................. (($18,900,000))

................................................................................... $19,033,000

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

(1) $788,000 of the aquatic lands enhancement account--state appropriation is provided solely for coordinating a study of Puget Sound juvenile steelhead marine survival conducted by the department of fish and wildlife and based on a study plan developed in cooperation with federal, tribal, and nongovernmental entities.

(2) By October 1, 2014, the Puget Sound partnership shall provide the governor a single, prioritized list of state agency 2015-2017 capital and operating budget requests related to Puget Sound restoration.

(End of part)

PART IV
TRANSPORTATION

Sec. 401. 2013 2nd sp.s. c 4 s 401 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

General Fund‑-State Appropriation (FY 2014)......... (($1,103,000))

..................................................................................... $1,106,000

General Fund‑-State Appropriation (FY 2015)......... (($1,341,000))

..................................................................................... $1,374,000

Architects' License Account‑-State Appropriation............ $902,000

Professional Engineers' Account‑-State

Appropriation.......................................................... (($3,558,000))

..................................................................................... $3,545,000

Real Estate Commission Account‑-State Appropriation..................

................................................................................ (($9,929,000))

..................................................................................... $9,935,000

Uniform Commercial Code Account‑-State

Appropriation.......................................................... (($3,154,000))

..................................................................................... $3,145,000

Real Estate Education Account‑-State Appropriation....... $276,000

Real Estate Appraiser Commission Account‑-State

Appropriation.......................................................... (($1,703,000))

..................................................................................... $1,705,000

Business and Professions Account‑-State

Appropriation........................................................ (($17,454,000))

................................................................................... $17,596,000

Funeral and Cemetery Account--State Appropriation........... $5,000

Landscape Architects' License Account--State Appropriation $4,000

Appraisal Management Company Account--State

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

Real Estate Research Account‑-State Appropriation......... $415,000

Wildlife Account--State Appropriation.............................. $32,000

Geologists' Account‑-State Appropriation.......................... $52,000

Derelict Vessel Removal Account‑-State Appropriation..... $31,000

TOTAL APPROPRIATION.................................. (($39,963,000))

................................................................................... $40,127,000

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

(1) $566,000 of the business and professions account--state appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 1552 (scrap metal theft reduction). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(2) $166,000 of the business and professions account--state appropriation in fiscal year 2014 only is provided solely for the implementation of Substitute House Bill No. 1779 (esthetics). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(3) $592,000 of the business and professions account--state appropriation is provided solely for the implementation of Substitute House Bill No. 1822 (debt collection practices). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(4) $32,000 of the state wildlife account--state appropriation is provided solely for the implementation of Engrossed Second Substitute Senate Bill No. 5193 (wolf conflict management). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

      (5) $112,000 of the business and professions account--state appropriation is provided solely for the implementation of Engrossed Substitute House Bill No. 2512 (cosmetology, hair design, etc.). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.
      (6) $19,000 of the general fund--state appropriation for fiscal year 2014 and $48,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for a pilot identicard program to assist and prepare offenders for release from prison and reentry into the community. The goal of the pilot identicard program is to provide proper state identification to offenders to facilitate access to services, employment, housing, and various other opportunities upon release to the community. By September 1, 2014, the department of licensing, working in conjunction with the department of corrections, must implement the pilot identicard program in accordance with the following:
      (a) The pilot program must provide an original, renewal, or replacement identicard to offenders that: (i) Prove their identity as required by RCW 46.20.035; (ii) are under the custody of the department of corrections; (iii) have been sentenced to an incarceration period exceeding one year and one day; and (iv) are incarcerated within the Monroe correctional complex and within two months or less of release.
      (b) For purposes of verifying an offender's identity and eligibility for the program, a valid identification card issued by the department of corrections serves as sufficient proof of identity and residency for an offender to apply for and obtain a Washington state identicard.
      (c) For the purposes of the pilot program, and notwithstanding the provisions of chapter 46.20.117 RCW, the department of licensing must (i) waive the requirement that the offender not hold a valid Washington driver's license in order to receive an identicard; (ii) set an expiration date for an identicard issued under the pilot program for the first anniversary of the offender's birthdate after issuance; and (iii) not charge any fee to an applicant for an identicard issued as part of the pilot program.
      (d) The department of licensing, in consultation with the department of corrections, must report to the governor and the appropriate committees of the legislature on the results of the pilot identicard program and any recommendations for improvement by June 30, 2015.

Sec. 402. 2013 2nd sp.s. c 4 s 402 (uncodified) is amended to read as follows:

FOR THE STATE PATROL

General Fund‑-State Appropriation (FY 2014)....... (($34,653,000))

................................................................................... $35,679,000

General Fund‑-State Appropriation (FY 2015)....... (($32,485,000))

................................................................................... $34,407,000

General Fund‑-Federal Appropriation.................... (($16,189,000))

................................................................................... $15,882,000

General Fund‑-Private/Local Appropriation.................. $3,020,000

Death Investigations Account‑-State Appropriation.. (($9,956,000))

..................................................................................... $9,960,000

Enhanced 911 Account--State Appropriation................ $3,480,000

County Criminal Justice Assistance Account‑-State

Appropriation............................................................... $3,332,000

Municipal Criminal Justice Assistance Account‑-State

Appropriation............................................................... $1,351,000

Fire Service Trust Account‑-State Appropriation............. $131,000

Disaster Response Account‑-State Appropriation.......... $8,000,000

Fire Service Training Account‑-State Appropriation..... $9,797,000

Aquatic Invasive Species Enforcement Account‑-State

Appropriation.................................................................... $54,000

State Toxics Control Account‑-State Appropriation......... $516,000

Fingerprint Identification Account‑-State

Appropriation........................................................ (($10,747,000))

................................................................................... $10,841,000

Vehicle License Fraud Account--State Appropriation. (($447,000))

........................................................................................ $337,000

TOTAL APPROPRIATION................................ (($134,158,000))

................................................................................. $136,787,000

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

(1) $200,000 of the fire service training account‑-state appropriation is provided solely for two FTEs in the office of the state director of fire protection to exclusively review K-12 construction documents for fire and life safety in accordance with the state building code. It is the intent of this appropriation to provide these services only to those districts that are located in counties without qualified review capabilities.

(2) $8,000,000 of the disaster response account--state appropriation is provided solely for Washington state fire service resource mobilization costs incurred in response to an emergency or disaster authorized under RCW 43.43.960 through 43.43.964. The state patrol shall submit a report quarterly to the office of financial management and the legislative fiscal committees detailing information on current and planned expenditures from this account. This work shall be done in coordination with the military department.

(3) $700,000 of the fire service training account--state appropriation is provided solely for the firefighter apprenticeship training program.

(4) $3,480,000 of the enhanced 911 account--state appropriation is provided solely for upgrades to the Washington state identification system and the Washington crime information center. Amounts provided in this subsection may not be expended until the office of the chief information officer approves a plan to move the Washington state patrol's servers and data center equipment into the state data center in the 1500 Jefferson building, and the office of the chief information officer certifies that the Washington state patrol has begun the move. The amounts provided in this subsection are conditioned on the department satisfying the requirements of the project management oversight standards and policies established by the office of the chief information officer.

(5) $154,000 of the fingerprint identification account--state appropriation is provided solely for implementation of Substitute House Bill No. 1612 (firearms offenders). If the bill is not enacted by June 30, 2013, the amount provided in this subsection shall lapse.

(6) $94,000 of the fingerprint identification account--state appropriation is provided solely for implementation of House Bill No. 2534 (fingerprint background checks). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

(End of part)

PART V
EDUCATION

Sec. 501. 2013 2nd sp.s. c 4 s 501 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION

General Fund‑-State Appropriation (FY 2014)....... (($27,264,000))

................................................................................... $27,325,000

General Fund‑-State Appropriation (FY 2015)....... (($26,041,000))

................................................................................... $27,544,000

General Fund‑-Federal Appropriation.................... (($63,826,000))

................................................................................... $71,064,000

General Fund‑-Private/Local Appropriation.................. $4,005,000

Performance Audits of Government Account--State

Appropriation.................................................................. $200,000

TOTAL APPROPRIATION................................ (($121,336,000))

................................................................................. $130,138,000

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

(1) A maximum of ((~~$16,881,000~~)) $17,048,000 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$16,602,000~~)) $17,745,000 of the general fund‑-state appropriation for fiscal year 2015 is for state agency operations.

(a) ((~~$8,846,000~~)) $9,013,000 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$8,910,000~~)) $8,838,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the operation and expenses of the office of the superintendent of public instruction.

(i) Within the amounts provided in this subsection (1)(a), the superintendent shall recognize the extraordinary accomplishments of four students who have demonstrated a strong understanding of the civics essential learning requirements to receive the Daniel J. Evans civic education award.

(ii) Districts shall report to the office of the superintendent of public instruction daily student unexcused absence data by school, using a uniform definition of unexcused absence as established by the superintendent.

(iii) By September of each year, the office of the superintendent of public instruction shall produce an annual status report of the budget provisos in sections 501 and 513 of this act. The status report of each proviso shall include, but not be limited to, the following information: Purpose and objective, number of staff, number of contractors, status of proviso implementation, number of beneficiaries by year, list of beneficiaries, and proviso outcomes and achievements.

(iv) The superintendent of public instruction shall update the program prepared and distributed under RCW 28A.230.150 for the observation of temperance and good citizenship day to include providing an opportunity for eligible students to register to vote at school.

(((vi) Appropriations in this section are sufficient for the office of the superintendent of public instruction to conduct ongoing consolidated program reviews of alternative learning experience programs and dropout reengagement programs established under chapter 20, Laws of 2010. The office of the superintendent of public instruction shall include alternative learning education and dropout reengagement programs in their ongoing consolidated program reviews, as well as provide outreach and training to school districts regarding implementation of the programs. Findings from the program reviews will be used to support and prioritize office of the superintendent outreach and education efforts that assist school districts in implementing the programs in accordance with statute and legislative intent, as well as to support financial and performance audit work conducted by the office of the state auditor.))

(b) $1,017,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,017,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for activities associated with the implementation of new school finance systems required by chapter 236, Laws of 2010 (K-12 education funding) and chapter 548, Laws of 2009 (state's education system), including technical staff, systems reprogramming, and workgroup deliberations, including the quality education council and the data governance working group.

(c) $1,012,000 of the general fund--state appropriation for fiscal year 2014 and $1,012,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the operation and expenses of the state board of education, including basic education assistance activities. Of these amounts, $161,000 of the general fund--state appropriation for fiscal year 2014 and $161,000 of the general fund--state appropriation for fiscal year 2015 are provided for implementation of Initiative Measure No. 1240 (charter schools).

(d) $1,325,000 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$1,325,000~~)) $1,642,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely to the professional educator standards board for the following:

(i) $1,050,000 in fiscal year 2014 and $1,050,000 in fiscal year 2015 are for the operation and expenses of the Washington professional educator standards board;

(ii) $250,000 of the general fund‑-state appropriation for fiscal year 2014 and $250,000 of the general fund‑-state appropriation for fiscal year 2015 are for mentor stipends provided through the alternative routes to certification program administered by the professional educator standards board, including the pipeline for paraeducators program and the retooling to teach conditional loan programs. Funding within this subsection (1)(d)(ii) is also provided for the recruiting Washington teachers program; ((~~and~~))

      (iii) $25,000 of the general fund‑-state appropriation for fiscal year 2014 and $25,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the professional educator standards board to develop educator interpreter standards and identify interpreter assessments that are available to school districts. Interpreter assessments should meet the following criteria: (A) Include both written assessment and performance assessment; (B) be offered by a national organization of professional sign language interpreters and transliterators; and (C) be designed to assess performance in more than one sign system or sign language. The board shall establish a performance standard, defining what constitutes a minimum assessment result, for each educational interpreter assessment identified. The board shall publicize the standards and assessments for school district use;
      (iv) $24,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the professional educator standards board to: (A) Disseminate information about principles of language acquisition as a critical knowledge and skill for educators in support of instruction for English language learners; and (B) in conjunction with the office of the superintendent of public instruction, revise the model framework and curriculum for high school career and technical education courses related to careers in education to incorporate standards of cultural competence, new research on educator preparation, and curriculum and activities from the recruiting Washington teacher program; and
      (v) $293,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Substitute House Bill No. 2365 (paraeducator development). If the bill is not enacted by June 30, 2014, the amount provided in this subsection shall lapse.

(e) $133,000 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$133,000~~)) $266,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the implementation of chapter 240, Laws of 2010, including staffing the office of equity and civil rights.

(f) $50,000 of the general fund‑-state appropriation for fiscal year 2014 and $50,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the ongoing work of the education opportunity gap oversight and accountability committee.

(g) $45,000 of the general fund‑-state appropriation for fiscal year 2014 and $45,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the implementation of chapter 380, Laws of 2009 (enacting the interstate compact on educational opportunity for military children).

(h) $131,000 of the general fund‑-state appropriation for fiscal year 2014 and $131,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the implementation of Initiative Measure No. 1240 (charter schools).

(i) $1,826,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,802,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for implementing a comprehensive data system to include financial, student, and educator data, including development and maintenance of the comprehensive education data and research system (CEDARS).

(j) $25,000 of the general fund‑-state appropriation for fiscal year 2014 and $25,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for project citizen, a program sponsored by the national conference of state legislatures and the center for civic education to promote participation in government by middle school students.

(k) $1,500,000 of the general fund--state appropriation for fiscal year 2014 and $1,500,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for collaborative schools for innovation and success authorized under chapter 53, Laws of 2012. The office of the superintendent of public instruction shall award $500,000 per year in funding for each collaborative school for innovation and success selected for participation in the pilot program during 2012.

(l) $123,000 of the general fund--state appropriation for fiscal year 2014 and $123,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of chapter 163, Laws of 2012 (foster care outcomes). The office of the superintendent of public instruction shall annually report each December on the implementation of the state's plan of cross-system collaboration to promote educational stability and improve education outcomes of foster youth.

(m) $250,000 of the general fund--state appropriation for fiscal year 2014 and $250,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of chapter 178, Laws of 2012 (open K-12 education resources).

(n) $93,000 of the general fund--state appropriation for fiscal year 2014 and $93,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for chapter 185, Laws of 2011 (bullying prevention, which requires the office of the superintendent of public instruction to convene an ongoing workgroup on school bullying and harassment prevention. Within the amounts provided, $140,000 is for youth suicide prevention activities.

(o) $138,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of House Bill No. 1336 (troubled youth in school). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(p) $68,000 of the general fund--state appropriation for fiscal year 2014 and $14,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for implementation of House Bill No. 1134 (state-tribal education compacts). If the bill is not enacted by June 30, 2013, the amounts provided in this subsection shall lapse.

(q) $62,000 of the general fund--state appropriation for fiscal year 2014 and $62,000 of the general fund--state appropriation for fiscal year 2015 are for competitive grants to school districts to increase the capacity of high schools to offer AP computer science courses. In making grant allocations, the office of the superintendent of public instruction must give priority to schools and districts in rural areas, with substantial enrollment of low-income students, and that do not offer AP computer science. School districts may apply to receive either or both of the following grants:

(i) A grant to establish partnerships to support computer science professionals from private industry serving on a voluntary basis as coinstructors along with a certificated teacher, including via synchronous video, for AP computer science courses; or

(ii) A grant to purchase or upgrade technology and curriculum needed for AP computer science, as well as provide opportunities for professional development for classroom teachers to have the requisite knowledge and skills to teach AP computer science.

(r) $27,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for implementation of House Bill No. 1556 (cardiac arrest education).

(s) $50,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the development of recommendations for funding integrated school nursing and outreach services. The office of the superintendent of public instruction shall collaborate with the health care authority to develop recommendations for increasing federal financial participation for providing nursing services in schools with the goals of integrating nursing and outreach services and supporting one nurse for every four-hundred fifty students in elementary schools and one nurse for every seven-hundred fifty students in secondary schools. The recommendations shall include proposals for funding training and reimbursement for nurses that provide outreach services to help eligible students enroll in apple health for kids and other social services programs. The authority and the office of the superintendent of public instruction shall provide these recommendations to the governor and the legislature by December 1, 2013.

(t) $50,000 of the general fund--state appropriation for fiscal year 2014 is provided solely for the office of the superintendent of public instruction to contract with an organization to develop a model plan for evaluating the outcomes of state funded pilot education programs, including guidelines for standard data that must be gathered throughout any education pilot program, as well as guidance for data and evaluation methods depending on the design of the program and the target population. The contract must also include a provision to provide guidance for the evaluation of existing pilot programs.

(u) $10,000 of the general fund--state appropriation for fiscal year 2014 and $10,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the superintendent of public instruction to convene a committee for the selection and recognition of Washington innovative schools. The committee shall select and recognize Washington innovative schools based on the selection criteria established by the office of the superintendent of public instruction, in accordance with chapter 202, Laws of 2011 (innovation schools--recognition) and chapter 260, Laws of 2011 (innovation schools and zones).

(v) $100,000 of the general fund--state appropriation for fiscal year 2014 and $100,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the Mobius science center to expand mobile outreach of science, technology, engineering, and mathematics (STEM) education to students in rural, tribal, and low-income communities.

      (w) $28,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the office of the superintendent of public instruction to create a clearinghouse of research-based best practices for school districts to provide academic and nonacademic support for students while they are subject to disciplinary action and after their reengagement in school.
      (x) $49,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the office of the superintendent of public instruction, in collaboration with the educational opportunity gap oversight and accountability committee, the professional educator standards board, colleges of education, and representatives from diverse communities and community-based organizations, to develop a content outline for professional development and training in cultural competence for school staff, which educational service districts and school districts are encouraged to use.
      (y) $117,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the office of the superintendent of public instruction to convene a task force to design a performance-based assistance and accountability system for the transitional bilingual instruction program. The office must submit a report with recommendations from the task force to the education and fiscal committees of the legislature by January 15, 2016.
      (z) $134,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the office of the superintendent of public instruction to perform on-going program reviews of alternative learning experience programs and dropout reengagement programs. Appropriations in this subsection are sufficient for the office of the superintendent of public instruction to conduct ongoing consolidated program reviews of alternative learning experience programs and dropout reengagement programs established under chapter 20, Laws of 2010. The office of the superintendent of public instruction shall include alternative learning education and dropout reengagement programs in its ongoing consolidated program reviews, as well as provide outreach and training to school districts regarding implementation of the programs. Findings from the program reviews will be used to support and prioritize the office of the superintendent of public instruction outreach and education efforts that assist school districts in implementing the programs in accordance with statute and legislative intent, as well as to support financial and performance audit work conducted by the office of the state auditor.
      (aa) $287,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for implementation of Second Substitute House Bill No. 2540 (career and tech course equivalencies). If the bill is not enacted by June 30, 2014, the amounts provided in this subsection shall lapse.
      (bb) Appropriations in this section are sufficient for the office of the superintendent of public instruction to implement Second Substitute House Bill No. 2166 (students/military families).
      (cc) Appropriations in this section are sufficient for the office of the superintendent of public instruction to implement Substitute House Bill No. 2536 (breakfast after the bell).
      (dd) Appropriations in this section are sufficient for the office of the superintendent of public instruction to implement Engrossed Second Substitute House Bill No. 2383 (career and college readiness).
      (ee) $50,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the superintendent of public instruction to convene a work group to examine state and federal audit requirements. The work group may include, but is not limited to, representatives from small, medium, and large school districts; a representative of the office of the state auditor; a representative of the Washington state school directors' association; and legislators. The work group must identify state and federal audit requirements that are duplicative and make recommendations to the legislature to reduce school district costs and workload related to duplicative audit requirements. The superintendent shall submit the findings and recommendations of the work group to the legislature by December 1, 2015.
      (ff) $100,000 of the general fund--state appropriation for fiscal year 2015 is provided solely for the Washington civil liberties education program.

(2) $200,000 of the performance audits of government account--state appropriation is provided solely for a one-time workload increase to address additional audit resolutions and appeals in the alternative learning experience programs.

(3) $10,277,000 of the general fund--state appropriation for fiscal year 2014 and ((~~$9,565,000~~)) $9,799,000 of the general fund‑-state appropriation for fiscal year 2015 are for statewide programs.

(a) HEALTH AND SAFETY

(i) $2,541,000 of the general fund‑-state appropriation for fiscal year 2014 and $2,541,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for a corps of nurses located at educational service districts, as determined by the superintendent of public instruction, to be dispatched to the most needy schools to provide direct care to students, health education, and training for school staff.

(ii) $135,000 of the general fund‑-state appropriation for fiscal year 2014 and $135,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for a nonviolence and leadership training program provided by the institute for community leadership.

(b) TECHNOLOGY

$1,221,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,221,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for K-20 telecommunications network technical support in the K-12 sector to prevent system failures and avoid interruptions in school utilization of the data processing and video-conferencing capabilities of the network. These funds may be used to purchase engineering and advanced technical support for the network.

(i) $1,875,000 of the general fund‑-state appropriation for fiscal year 2014 and ((~~$1,875,000~~)) $2,109,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the Washington state achievers scholarship program. The funds shall be used to support community involvement officers that recruit, train, and match community volunteer mentors with students selected as achievers scholars.

(ii) $1,000,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,000,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for contracting with a college scholarship organization with expertise in conducting outreach to students concerning eligibility for the Washington college bound scholarship consistent with chapter 405, Laws of 2007.

(iii) $1,000,000 of the general fund--state appropriation for fiscal year 2014 and $1,000,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for dropout prevention, intervention, and reengagement programs, including the jobs for America's graduates (JAG) program and the building bridges statewide program. Students in the foster care system shall be given priority by districts offering the jobs for America's graduates program.

(iv) $2,112,000 of the general fund‑-state appropriation for fiscal year 2014 and $1,400,000 of the general fund‑-state appropriation for fiscal year 2015 are provided solely for the implementation of chapter 340, Laws of 2011 and chapter 51, Laws of 2012. This includes the development and implementation of the Washington kindergarten inventory of developing skills (WaKIDS).

(v) $100,000 of the general fund‑-state appropriation for fiscal year 2014 and $100,000 of the general fund--state appropriation for fiscal year 2015 are provided solely to subsidize advanced placement exam fees and international baccalaureate class fees and exam fees for low-income students. To be eligible for the subsidy, a student must be either enrolled or eligible to participate in the federal free or reduced price lunch program, and the student must have maximized the allowable federal contribution. The office of the superintendent of public instruction shall set the subsidy in an amount so that the advanced placement exam fee does not exceed $15.00 and the combined class and exam fee for the international baccalaureate does not exceed $14.50.

(vi) $293,000 of the general fund--state appropriation for fiscal year 2014 and $293,000 of the general fund--state appropriation for fiscal year 2015 are provided solely for the office of the superintendent of public instruction to support ((~~the dissemination of the navigation 101 curriculum to all districts~~)) district implementation of comprehensive guidance and planning programs consistent with RCW 28A.600.045.

Sec. 502. 2013 2nd sp.s. c 4 s 502 (uncodified) is amended to read as follows:

FOR THE SUPERINTENDENT OF PUBLIC INSTRUCTION‑-FOR GENERAL APPORTIONMENT

General Fund‑-State Appropriation (FY 2014).. (($5,395,289,000))

............................................................................... $5,386,820,000

General Fund‑-State Appropriation (FY 2015).. (($5,581,336,000))

............................................................................... $5,570,012,000

Education Legacy Trust Account--State

Appropriation...................................................... (($328,563,000))

................................................................................. $410,655,000

TOTAL APPROPRIATION........................... (($11,305,188,000))

............................................................................. $11,367,487,000

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

(1)(a) Each general fund fiscal year appropriation includes such funds as are necessary to complete the school year ending in the fiscal year and for prior fiscal year adjustments.

(b) For the 2013-14 and 2014-15 school years, the superintendent shall allocate general apportionment funding to school districts as provided in the funding formulas and salary schedules in sections 502 and 503 of this act, excluding (c) of this subsection.

(c) From July 1, 2013, to August 31, 2013, the superintendent shall allocate general apportionment funding to school districts programs as provided in sections 502 and 503, chapter 50, Laws of 2011 1st sp. sess., as amended.

(d) The enrollment of any district shall be the annual average number of full-time equivalent students and part-time students as provided in RCW 28A.150.350, enrolled on the fourth day of school in September and on the first school day of each month October through June, including students who are in attendance pursuant to RCW 28A.335.160 and 28A.225.250 who do not reside within the servicing school district. Any school district concluding its basic education program in May must report the enrollment of the last school day held in May in lieu of a June enrollment.

(2) CERTIFICATED INSTRUCTIONAL STAFF ALLOCATIONS

Allocations for certificated instructional staff salaries for the 2013-14 and 2014-15 school years are determined using formula-generated staff units calculated pursuant to this subsection.

(a) Certificated instructional staff units, as defined in RCW 28A.150.410, shall be allocated to reflect the minimum class size allocations, requirements, and school prototypes assumptions as provided in RCW 28A.150.260, except that the allocation for guidance counselors in a middle school shall be 1.216 for the 2013-14 and 2014-15 school years and the allocation for guidance counselors in a high school shall be 2.009 for the 2013-14 school year and 2.539 for the 2014-15 school year, which enhancements are within the program of basic education. The superintendent shall make allocations to school districts based on the district's annual average full-time equivalent student enrollment in each grade.

(b) Additional certificated instructional staff units provided in this subsection (2) that exceed the minimum requirements in RCW 28A.150.260 are enhancements outside the program of basic education, except as otherwise provided in this section.

(c)(i) The superintendent shall base allocations for each level of prototypical school on the following regular education average class size of full-time equivalent students per teacher, except as provided in (c)(ii) of this subsection:

NEW SECTION. Sec. 706. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR SUNDRY CLAIMS

The following sums, or so much thereof as may be necessary, are appropriated from the general fund for fiscal year 2014, unless otherwise indicated, for relief of various individuals, firms, and corporations for sundry claims. These appropriations are to be disbursed on vouchers approved by the director of the department of enterprise services, except as otherwise provided, for reimbursement of criminal defendants acquitted on the basis of self-defense, pursuant to RCW 9A.16.110, as follows:

(1) Tony M. Noble, claim number 99970075....................... $5,670

(2) Patrick Earl, claim number 99970076............................. $2,799

(3) Stephen J. Felice, claim number 99970076................... $17,275

(4) Michael Felice, claim number 99970076...................... $93,809

(5) Noe Angel Aranda Hernandez, claim number 99970077

.......................................................................................... $12,500

(6) Anderson Durham, claim number 99970071................ $11,000

(7) Chase Balzer, claim number 99970078........................... $5,953

(8) Kent Wescott, claim number 99970079........................ $13,447

(9) Tommy Villanueva, claim number 99970080............... $70,099

NEW SECTION. Sec. 707. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--CONTRIBUTIONS FOR STATE EMPLOYEE HEALTH INSURANCE

General Fund--State Appropriation (FY 2015).......... ($62,932,000)

General Fund--Federal Appropriation......................... ($9,175,000)

General Fund--Local Appropriation............................ ($1,177,000)

Other Dedicated Funds Appropriations..................... ($15,698,000)

TOTAL APPROPRIATION.................................... ($88,982,000)

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

(1) The appropriations in this section are provided solely to reduce agency and institution appropriations to reflect the reductions in the state employer funding rate for health insurance, and decreased employer health insurance costs consistent with the contribution rates included in sections 901, 902, and 904 of this act.

(2) To facilitate the transfer of moneys from dedicated funds and accounts, the state treasurer shall transfer sufficient moneys from each dedicated fund or account in accordance with LEAP document H010 dated February 22, 2014, and schedules provided by the office of financial management. The office shall reduce allotments for all agencies to reflect these savings.

NEW SECTION. Sec. 708. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--THURSTON COUNTY CAPITAL FACILITIES ACCOUNT

General Fund--State Appropriation (FY 2014)................. $900,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for expenditure into the Thurston county capital facilities account--state.

NEW SECTION. Sec. 709. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--PARKLAND TRUST REVOLVING ACCOUNT

General Fund--State Appropriation (FY 2014)................. $639,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for expenditure into the Parkland trust revolving account--state.

NEW SECTION. Sec. 710. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--EXTRAORDINARY CRIMINAL JUSTICE COSTS

General Fund--State Appropriation (FY 2014)................. $343,000

The appropriation in this section is subject to the following conditions and limitations: The director of financial management shall distribute funds to Clallam county for extraordinary criminal justice costs.

NEW SECTION. Sec. 711. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--COMMON SCHOOL CONSTRUCTION ACCOUNT

General Fund--State Appropriation (FY 2015)................. $444,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for expenditure into the common school construction account--state on July 1, 2015, for an interest payment pursuant to RCW 90.38.130.

NEW SECTION. Sec. 712. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--NATURAL RESOURCES REAL PROPERTY REPLACEMENT ACCOUNT

General Fund--State Appropriation (FY 2015)................. $222,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section is provided solely for expenditure into the natural resources real property replacement account--state on July 1, 2015, for an interest payment pursuant to RCW 90.38.130.

NEW SECTION. Sec. 713. 2013 2nd sp.s. c 4 s 720 (uncodified) is repealed.

NEW SECTION. Sec. 714. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--OFFICE OF ATTORNEY GENERAL

General Fund--State Appropriation (FY 2014)................. $994,000

General Fund--State Appropriation (FY 2015)................. $994,000

General Fund--Federal Appropriation.............................. $636,000

Other Appropriated Funds............................................. $2,284,000

TOTAL APPROPRIATION......................................... $4,908,000

The appropriations in this section are subject to the following conditions and limitations: The appropriations in this section reflect increases in agency appropriations related to corresponding increases in the office of the attorney general's billing authority. The office of financial management shall increase allotments in the amounts specified, and to the state agencies specified in LEAP omnibus document 92E1-2014, dated February 22, 2014, and adjust appropriation schedules accordingly.

NEW SECTION. Sec. 715. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--OFFICE OF THE CHIEF INFORMATION OFFICER

General Fund--State Appropriation (FY 2015)................... $67,000

General Fund--Federal Appropriation................................ $13,000

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

Other Appropriated Funds................................................. $36,000

TOTAL APPROPRIATION............................................ $118,000

The appropriations in this section are subject to the following conditions and limitations: The appropriations in this section reflect increases in agency appropriations related to corresponding increases in the office of the chief information officer's billing authority. The office of financial management shall increase allotments in the amounts specified, and to the state agencies specified in LEAP omnibus document 92F-2014, dated February 24, 2014, and adjust appropriation schedules accordingly.

NEW SECTION. Sec. 716. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT--OFFICE OF ADMINISTRATIVE HEARINGS

Minority and Business Account--State Appropriation $67,000

The appropriation in this section is subject to the following conditions and limitations: The appropriation in this section reflects increases in agency appropriations related to the office of administrative hearings. The office of financial management shall increase allotments in the amounts specified, and to the state agencies specified in LEAP omnibus document 92G-2014, dated February 24, 2014, and adjust appropriation schedules accordingly.

(End of part)

PART VIII
OTHER TRANSFERS AND APPROPRIATIONS

Sec. 801. 2013 2nd sp.s. c 4 s 801 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--STATE REVENUES FOR DISTRIBUTION

General Fund Appropriation for fire insurance

premium distributions.............................................. (($8,248,000))

..................................................................................... $8,591,000

General Fund Appropriation for public utility

district excise tax distributions............................... (($50,894,000))

................................................................................... $53,709,000

General Fund Appropriation for prosecuting

attorney distributions................................................ (($6,068,000))

..................................................................................... $5,985,000

General Fund Appropriation for boating safety

and education distributions............................................ $4,000,000

General Fund Appropriation for other tax distributions...... $65,000

General Fund Appropriation for habitat conservation

program distributions............................................... (($3,000,000))

..................................................................................... $3,154,000

Death Investigations Account Appropriation for

distribution to counties for publicly funded

autopsies....................................................................... $3,158,000

Aquatic Lands Enhancement Account Appropriation for

harbor improvement revenue distribution......................... $146,000

Timber Tax Distribution Account Appropriation for

distribution to "timber" counties............................. (($72,120,000))

................................................................................... $76,932,000

County Criminal Justice Assistance

Appropriation........................................................ (($78,983,000))

................................................................................... $78,861,000

Municipal Criminal Justice Assistance

Appropriation........................................................ (($30,550,000))

................................................................................... $30,519,000

City-County Assistance Account Appropriation

for local government financial assistance distribution

.............................................................................. (($17,134,000))

................................................................................... $19,584,000

Liquor Excise Tax Account Appropriation for liquor

excise tax distribution............................................ (($24,744,000))

................................................................................... $23,906,000

Streamlined Sales and Use Tax Mitigation Account

Appropriation for distribution to local taxing

jurisdictions to mitigate the unintended revenue

redistribution effect of the sourcing law

changes.................................................................. (($50,488,000))

................................................................................... $49,420,000

Columbia River Water Delivery Account Appropriation for

the Confederated Tribes of the Colville

Reservation.............................................................. (($7,760,000))

..................................................................................... $7,752,000

Columbia River Water Delivery Account Appropriation for

the Spokane Tribe of Indians.................................... (($5,025,000))

..................................................................................... $5,011,000

Liquor Revolving Account Appropriation for liquor

profits distribution....................................................... $98,876,000

TOTAL APPROPRIATION................................ (($434,259,000))

................................................................................. $469,667,000

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

Sec. 802. 2013 2nd sp.s. c 4 s 802 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--FOR THE COUNTY CRIMINAL JUSTICE ASSISTANCE ACCOUNT

Impaired Driver Safety Account Appropriation........ (($2,469,000))

..................................................................................... $2,409,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed quarterly during the 2013-2015 fiscal biennium in accordance with RCW 82.14.310. This funding is provided to counties for the costs of implementing criminal justice legislation including, but not limited to: Chapter 206, Laws of 1998 (drunk driving penalties); chapter 207, Laws of 1998 (DUI penalties); chapter 208, Laws of 1998 (deferred prosecution); chapter 209, Laws of 1998 (DUI/license suspension); chapter 210, Laws of 1998 (ignition interlock

violations); chapter 211, Laws of 1998 (DUI penalties); chapter 212, Laws of 1998 (DUI penalties); chapter 213, Laws of 1998 (intoxication levels lowered); chapter 214, Laws of 1998 (DUI penalties); and chapter 215, Laws of 1998 (DUI provisions).

Sec. 803. 2013 2nd sp.s. c 4 s 803 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--MUNICIPAL CRIMINAL JUSTICE ASSISTANCE ACCOUNT

Impaired Driver Safety Account Appropriation........ (($1,646,000))

..................................................................................... $1,606,000

The appropriation in this section is subject to the following conditions and limitations: The amount appropriated in this section shall be distributed quarterly during the 2013-2015 fiscal biennium to all cities ratably based on population as last determined by the office of financial management. The distributions to any city that substantially decriminalizes or repeals its criminal code after July 1, 1990, and that does not reimburse the county for costs associated with criminal cases under RCW 3.50.800 or 3.50.805(2), shall be made to the county in which the city is located. This funding is provided to cities for the costs of implementing criminal justice legislation including, but not limited to: Chapter 206, Laws of 1998 (drunk driving penalties); chapter 207, Laws of 1998 (DUI penalties); chapter 208, Laws of 1998 (deferred prosecution); chapter 209, Laws of 1998 (DUI/license suspension); chapter 210, Laws of 1998 (ignition interlock violations); chapter 211, Laws of 1998 (DUI penalties); chapter 212, Laws of 1998 (DUI penalties); chapter 213, Laws of 1998 (intoxication levels lowered); chapter 214, Laws of 1998 (DUI penalties); and chapter 215, Laws of 1998 (DUI provisions).

Sec. 804. 2013 2nd sp.s. c 4 s 804 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--FEDERAL REVENUES FOR DISTRIBUTION

General Fund Appropriation for federal flood control

funds distribution............................................................... $66,000

General Fund Appropriation for federal grazing fees

distribution.................................................................... $1,706,000

Forest Reserve Fund Appropriation for federal forest

reserve fund distribution........................................... ((~~$5,636,000~~))

................................................................................... $24,446,000

TOTAL APPROPRIATION.................................... ((~~$7,408,000~~))

................................................................................... $26,218,000

The total expenditures from the state treasury under the appropriations in this section shall not exceed the funds available under statutory distributions for the stated purposes.

Sec. 805. 2013 2nd sp.s. c 4 s 805 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER--TRANSFERS

State Treasurer's Service Account: For transfer to

the state general fund, $10,100,000 for fiscal

year 2014 ((and $10,100,000 for fiscal year 2015..... $20,200,000))

................................................................................... $10,100,000

Drinking Water Assistance Account: For transfer to

the drinking water assistance repayment account......... $32,000,000

General Fund: For transfer to the streamlined sales

and use tax account,......................... ((~~$25,284,000~~)) $24,436,000
for fiscal year 2014 and .................... ((~~$25,204,000~~)) $24,984,000

for fiscal year 2015................................................ ((~~$50,488,000~~))

................................................................................... $49,420,000

Public Works Assistance Account: For transfer to the

education legacy trust account, $138,622,000 for

fiscal year 2014 and $138,622,000 for fiscal year

2015.......................................................................... $277,244,000

Local Toxics Control Account: For transfer to the

state general fund, $9,000,000 for fiscal year

2014 and $9,000,000 for fiscal year 2015.................... $18,000,000

State Taxable Building Construction Account: For

transfer to the Columbia River basin taxable bond

water supply development account, an amount not to

exceed......................................................................... $32,000,000

Employment Training Finance Account: For transfer to

the state general fund, $1,000,000 for fiscal year

2014 ((and $1,000,000 for fiscal year 2015................. $2,000,000))

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

Tuition Recovery Trust Account: For transfer to the

state general fund, $1,250,000 for fiscal year 2014

((and $1,250,000 for fiscal year 2015.......................... $2,500,000))

..................................................................................... $1,250,000

General Fund: For transfer to the child and family

reinvestment account, (($3,800,000)) $1,656,000

for fiscal year 2014 and (($2,691,000)) $992,000

for fiscal year 2015.................................................. (($6,491,000))

..................................................................................... $2,648,000

Flood Control Assistance Account: For transfer to the

state general fund, $1,000,000 for fiscal year 2014

and $1,000,000 for fiscal year 2015............................... $2,000,000

Tobacco Settlement Account: For transfer to the state

general fund, in an amount not to exceed the actual

amount of the annual base payment to the tobacco

settlement account..................................................... $157,221,000

Tobacco Settlement Account: For transfer to the state

general fund from the amounts deposited in the

account that are attributable to the annual

strategic contribution payment received in

fiscal year 2014........................................................... $17,000,000

((Tobacco Settlement Account: For transfer to the state
general fund from the amounts deposited in the
account that are attributable to the annual
strategic contribution payment received in fiscal
year 2015................................................................ $17,000,000))

Tobacco Settlement Account: For transfer to
the education legacy trust account from
amounts deposited in the account that are
attributed to the annual strategic contribution
payment received in fiscal year 2014............................... $600,000
Tobacco Settlement Account: For transfer to
the education legacy trust account from
amounts deposited in the account that are
attributed to the annual strategic contribution
payment received in fiscal year 2015........................... $17,100,000

Tobacco Settlement Account: For transfer to the life

sciences discovery fund, in an amount not to exceed

the actual remaining amount of the annual strategic

contribution payment to the tobacco settlement account

for fiscal year 2014....................................................... $9,515,000

Tobacco Settlement Account: For transfer to the life

sciences discovery fund, in an amount not to exceed

the actual remaining amount of the annual strategic

contribution payment to the tobacco settlement account

for fiscal year 2015....................................................... $9,515,000

The transfer to the life sciences discovery fund is subject to the following conditions:

(1) The life sciences discovery fund authority board of trustees shall begin preparing to become a self-sustaining entity capable of operating without direct state subsidy by the time the tobacco strategic contribution supplemental payments end in fiscal year 2017.

(2) $250,000 of the appropriation in fiscal year 2014 and $250,000 of the appropriation in fiscal year 2015 are provided solely to promote the development and delivery of global health technologies and products.

(a) The life sciences discovery fund authority must either administer a grant application, review, and reward process, or contract with a qualified nonprofit organization for these services. State moneys must be provided for grants to entities for the development, production, promotion, and delivery of global health technologies and products. Grant award criteria must include:

(i) The quality of the proposed research or the proposed technical assistance in product development or production process design. Any grant funds awarded for research activities must be awarded for nonbasic research that will assist in the commercialization or manufacture of global health technologies;

(ii) The potential for the grant recipient to improve global health outcomes;

(iii) The potential for the grant to leverage additional funding for the development of global health technologies and products;

(iv) The potential for the grant to stimulate, or promote technical skills training for, employment in the development of global health technologies in the state; and

(v) The willingness of the grant recipient, when appropriate, to enter into royalty or licensing income agreements with the authority.

(b) The authority, or the contractor of the authority, must report information including the types of products and research funded, the funding leveraged by the grants, and the number and types of jobs created as a result of the grants, to the economic development committees of the legislature by December 1, 2014.

Aquatic Lands Enhancement Account: For transfer to the

geoduck aquaculture research account, $150,000 for

fiscal year 2014 and $150,000 for fiscal year 2015........... $300,000

Health Benefit Exchange Account: For transfer to the

state general fund for fiscal year 2015......................... $21,514,000

Criminal Justice Treatment Account: For transfer to the

state general fund, $437,000 for fiscal year 2014

and $2,746,000 for fiscal year 2015............................... $3,183,000

Resources Management Cost Account--Aquatics: For transfer

to the marine resources stewardship trust account,

$1,850,000 for fiscal year 2014 and $1,850,000 for

fiscal year 2015............................................................. $3,700,000

Legal Services Revolving Account: For transfer to the

state general fund, $976,000 for fiscal year 2014

((and $1,477,000 for fiscal year 2015.......................... $2,453,000))

........................................................................................ $976,000

Personnel Service Account: For transfer to the state

general fund, $733,000 for fiscal year 2014 ((and
$733,000 for fiscal year 2015..................................... $1,466,000))

........................................................................................ $733,000

Data Processing Revolving Account: For transfer to the

state general fund, $4,069,000 for fiscal year 2014

((and $4,070,000 for fiscal year 2015.......................... $8,139,000))

..................................................................................... $4,069,000

Home Security Fund Account: For transfer to the

transitional housing operating and rent account............. $7,500,000

Professional Engineers' Account: For transfer to the

state general fund, $956,000 for fiscal year 2014 and

$957,000 for fiscal year 2015........................................ $1,913,000

Electrical License Account: For transfer to the state

general fund, $1,700,000 for fiscal year 2014 and

$1,700,000 for fiscal year 2015..................................... $3,400,000

Business and Professions Account: For transfer to the

state general fund, $1,838,000 for fiscal year 2014

and $1,800,000 for fiscal year 2015............................... $3,638,000

Energy Freedom Account: For transfer to the state

general fund, $1,000,000 for fiscal year 2014

((and $1,000,000 for fiscal year 2015.......................... $2,000,000))

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

Pollution Liability Insurance Program Trust Account:

For transfer to the state general fund, $2,500,000

for fiscal year 2014 and $2,500,000 for fiscal year

2015.............................................................................. $5,000,000

Real Estate Commission Account: For transfer to the

state general fund, $1,700,000 for fiscal year 2014

and $1,700,000 for fiscal year 2015............................... $3,400,000

State Lottery Account: For transfer to the education

legacy trust account, $6,050,000 for fiscal year 2014

and $6,050,000 for fiscal year 2015............................. $12,100,000

State Toxics Control Account: For transfer to the

radioactive mixed waste account, $2,000,000 for fiscal

year 2014...................................................................... $2,000,000

Energy Freedom Account: For transfer to
the education legacy trust account,
$1,000,000 for fiscal year 2015..................................... $1,000,000
Legal Services Revolving Account: For
transfer to the education legacy
trust account, $1,477,000 for fiscal year 2015................ $1,477,000
Employment Training Finance Account:
For transfer to the education legacy
trust account, $1,000,000 for fiscal year 2015................ $1,000,000
Tuition Recovery Trust Account: For transfer
to the education legacy trust account,
$1,250,000 for fiscal year 2015..................................... $1,250,000
State Treasurer's Service Account: For
transfer to the education legacy
trust account, $10,100,000 for fiscal
year 2015.................................................................... $10,100,000
Personnel Service Account: For transfer to
the education legacy trust account,
$733,000 for fiscal year 2015........................................... $733,000
Data Processing Revolving Account: For
transfer to the education legacy trust
account, $4,070,000 for fiscal year 2015....................... $4,070,000

(End of part)

PART IX
MISCELLANEOUS

Sec. 901. 2013 2nd sp.s. c 4 s 932 (uncodified) is amended to read as follows:

COMPENSATION--REPRESENTED EMPLOYEES--SUPER COALITION--INSURANCE BENEFITS

No agreement was reached between the governor and the health care super coalition under the provisions of chapter 41.80 RCW for the 2013-2015 fiscal biennium. Appropriations for fiscal year 2014 in this act for state agencies, including institutions of higher education are sufficient to continue the provisions of the 2011-2013 collective bargaining agreement. An agreement for the period beginning July 1, 2014, and ending on June 30, 2015, was reached between the governor and the health care super coalition under the provisions of chapter 41.80 RCW. The agreement includes employer contributions to premiums at 85 percent of the total weighted average of the projected health care premiums. Appropriations in this act for fiscal year 2015 for state agencies, including institutions of higher education, are sufficient to fund the provisions of the collective bargaining agreement during the period between July 1, 2104, and June 30, 2015, and are subject to the following conditions and limitations:

(1)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan, shall not exceed $782 per eligible employee for fiscal year 2014. For fiscal year 2015 the monthly employer funding rate shall not exceed ((~~$763~~)) $658 per eligible employee.

(b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require or make any or all of the following: Employee premium copayments, increases in point-of-service cost sharing, the implementation of managed competition, or other changes to benefits consistent with RCW 41.05.065. Beginning July 1, 2014, the board shall add a $25 per month surcharge to the premiums due from members who use tobacco products and a surcharge of not less than $50 per month to the premiums due from members who cover a spouse or domestic partner where the spouse or domestic partner has chosen not to enroll in other employer-based group health insurance that has benefits and premiums with an actuarial value of not less than 95 percent of the actuarial value of the public employees' benefits board plan with the largest enrollment.

(c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments, into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts shall not be used for administrative expenditures.

(d) To the extent that the agreement between the governor and the super coalition contains terms that are effective after June 30, 2015, those terms exceed the fiscal biennium and are outside the bounds permitted by RCW 41.80.001. Nothing in this section obligates the legislature for funding after June 30, 2015.

(2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. The subsidy provided for calendar years 2014 and 2015 shall be up to $150 per month.

Sec. 902. 2013 2nd sp.s. c 4 s 933 (uncodified) is amended to read as follows:

COMPENSATION--REPRESENTED EMPLOYEES OUTSIDE SUPER COALITION--INSURANCE BENEFITS

Appropriations for state agencies in this act are sufficient for represented employees outside the super coalition for health benefits, and are subject to the following conditions and limitations:

Sec. 903. 2013 2nd sp.s. c 4 s 937 (uncodified) is amended to read as follows:

COLLECTIVE BARGAINING AGREEMENT FOR NONSTATE EMPLOYEES--SEIU LOCAL 925 CHILDCARE WORKERS

(1) An agreement has been reached between the governor and the service employees international union local 925 under the provisions of chapter 41.56 RCW for the 2013-2015 fiscal biennium. Funding is provided for increases to health care, scholarship funding and non-standard hours bonus.

(2) An agreement has been reached between the governor and the service employees international union local 925 under the provisions of chapter 41.56 RCW for fiscal year 2015. Funding is provided to increase the child care subsidy rates for licensed and exempt family child care providers by four percent on July 1, 2014, and another four percent on January 1, 2015. Two million dollars is also provided to fund an early achievers tiered reimbursement pilot project for licensed family child care providers.

Sec. 904. 2013 2nd sp.s. c 4 s 939 (uncodified) is amended to read as follows:

COMPENSATION--NONREPRESENTED EMPLOYEES--INSURANCE BENEFITS

Appropriations for state agencies in this act are sufficient for nonrepresented state employee health benefits for state agencies, including institutions of higher education, and are subject to the following conditions and limitations:

(3) Technical colleges, school districts, and educational service districts shall remit to the health care authority for deposit into the public employees' and retirees' insurance account established in RCW 41.05.120 the following amounts:

(a) For each full-time employee, $64.40 per month beginning September 1, 2013, and ((~~$70.39~~)) $66.70 beginning September 1, 2014; and

(b) For each part-time employee, who at the time of the remittance is employed in an eligible position as defined in RCW 41.32.010 or 41.40.010 and is eligible for employer fringe benefit contributions for basic benefits, $64.40 each month beginning September 1, 2013, and ((~~$70.39~~)) $66.70 beginning September 1, 2014, prorated by the proportion of employer fringe benefit contributions for a full-time employee that the part-time employee receives. The remittance requirements specified in this subsection (3) shall not apply to employees of a technical college, school district, or educational service district who purchase insurance benefits through contracts with the health care authority.

Sec. 905. 2013 2nd sp.s. c 4 s 943 (uncodified) is amended to read as follows:

ACQUISITION OF INFORMATION TECHNOLOGY PROJECTS THROUGH FINANCIAL CONTRACTS

(1) Financial contracts for the acquisition of the information technology projects authorized in this section must be approved jointly by the office of the financial management and the office of the chief information officer. Information technology projects funded under this section shall meet the following requirements:

(a) The project reduces costs and achieves economies of scale by leveraging statewide investments in systems and data and other common or enterprise-wide solutions within and across state agencies;

(b) The project begins or continues replacement of legacy information technology systems and replacing these systems with modern and more efficient information technology systems;

(d) The project provides future savings and efficiencies for an agency through reduced operating costs, improved customer service, or increased revenue collections; and

(e) Preference for project approval must be given to an agency that has prior approval from the office of the chief information officer, an approved business plan, and where the primary hurdle to project funding is the lack of funding capacity.

(2) The following state agencies may enter into financial contracts to finance expenditures for the acquisition and implementation of the following information technology projects for up to the respective amounts indicated, plus financing expenses and required reserves pursuant to chapter 39.94 RCW:

(a) Subject to subsection (4) of this section, ((~~$10,000,000~~)) $13,500,000 for the department of enterprise services time, leave, and attendance pilot project;

(b) $3,867,000 for the Washington state patrol for continuation of the mobile office platform;

(c) (($8,500,000 for the department of social and health services conversion to the tenth version of the world health organization's international classification of diseases;
(d) $5,558,000)) $3,314,670 for the department of early learning system implementation of electronic benefit transfers;

((~~(e)~~)) (d) $4,323,000 for the department of corrections for radio infrastructure upgrades.

(3) The office of financial management with assistance from the office of the chief information officer will report to the governor and fiscal committees of the legislature by November 1st of each year on the status of distributions and expenditures on information technology projects and improved statewide or agency performance results achieved by project funding.

(4) If the Washington state department of transportation enters into financial contracts pursuant to chapter 39.94 RCW for the acquisition and implementation of a time, leave, and labor distribution system, the authorization provided to the department of enterprise services in subsection (2)(a) of this section expires.

Sec. 906. RCW 28B.67.030 and 2013 2nd sp.s. c 4 s 961 are each amended to read as follows:

(1) All payments received from a participant in the Washington customized employment training program created in RCW 28B.67.020 must be deposited into the employment training finance account, which is hereby created in the custody of the state treasurer. Only the state board for community and technical colleges may authorize expenditures from the account and no appropriation is required for expenditures. The money in the account must be used solely for training allowances under the Washington customized employment training program created in RCW 28B.67.020 and for providing up to seventy-five thousand dollars per year for training, marketing, and facilitation services to increase the use of the program. The deposit of payments under this section from a participant ceases when the board specifies that the participant has met the monetary obligations of the program. During the 2013-2015 fiscal biennium, the legislature may transfer from the employment training finance account to the state general fund and the education legacy trust account such amounts as reflect the excess fund balance in the account.

(2) All revenue solicited and received under the provisions of RCW 28B.67.020(4) must be deposited into the employment training finance account to provide training allowances.

(3) The definitions in RCW 28B.67.010 apply to this section.

(4) This section expires July 1, 2017.

Sec. 907. RCW 28C.10.082 and 2013 2nd sp.s. c 4 s 965 are each amended to read as follows:

The tuition recovery trust fund is hereby established in the custody of the state treasurer. The agency shall deposit in the fund all moneys received under RCW 28C.10.084. Moneys in the fund may be spent only for the purposes under RCW 28C.10.084. Disbursements from the fund shall be on authorization of the agency. During the 2013-2015 fiscal biennium, the legislature may transfer from the tuition recovery trust fund to the state general fund and the education legacy trust account such amounts as reflect the excess fund balance in the fund. The fund is subject to the allotment procedure provided under chapter 43.88 RCW, but no appropriation is required for disbursements.

Sec. 908. RCW 36.28A.300 and 2013 2nd sp.s. c 35 s 23 are each amended to read as follows:

There is created a 24/7 sobriety program to be administered by the ((~~Washington traffic safety~~)) criminal justice training commission in conjunction with the Washington association of sheriffs and police chiefs. The program shall coordinate efforts among various local government entities for the purpose of implementing alternatives to incarceration for offenders convicted under RCW 46.61.502 or 46.61.504 with one or more prior convictions under RCW 46.61.502 or 46.61.504.

Sec. 909. RCW 36.28A.320 and 2013 2nd sp.s. c 35 s 25 are each amended to read as follows:

There is hereby established in the state treasury the 24/7 sobriety account. The account shall be maintained and administered by the ((~~Washington traffic safety~~)) criminal justice training commission to reimburse the state for costs associated with establishing the program and the Washington association of sheriffs and police chiefs for ongoing program administration costs. ((~~The Washington traffic safety~~)) criminal justice training commission may accept for deposit in the account money from donations, gifts, grants, participation fees, and user fees or payments. Expenditures from the account shall be budgeted through the normal budget process.

Sec. 910. RCW 41.06.280 and 2013 2nd sp.s. c 4 s 968 are each amended to read as follows:

There is hereby created a fund within the state treasury, designated as the "personnel service fund," to be used by the office of financial management as a revolving fund for the payment of salaries, wages, and operations required for the administration of the provisions of this chapter, applicable provisions of chapter 41.04 RCW, and chapter 41.60 RCW. An amount not to exceed one and one-half percent of the salaries and wages for all positions in the classified service in each of the agencies subject to this chapter, except the institutions of higher education, shall be charged to the operations appropriations of each agency and credited to the personnel service fund as the allotments are approved pursuant to chapter 43.88 RCW. Subject to the above limitations, the amount shall be charged against the allotments pro rata, at a rate to be fixed by the director from time to time which, together with income derived from services rendered under RCW 41.06.080, will provide the office of financial management with funds to meet its anticipated expenditures during the allotment period, including the training requirements in RCW 41.06.50041.06.530‌. All revenues, net of expenditures, previously derived from services provided by the department of enterprise services under RCW 41.06.080 must be transferred to the enterprise services account.

The director shall fix the terms and charges for services rendered by the office of financial management pursuant to RCW 41.06.080, which amounts shall be credited to the personnel service fund and charged against the proper fund or appropriation of the recipient of such services on a monthly basis. Payment for services so rendered under RCW 41.06.080 shall be made on a monthly basis to the state treasurer and deposited in the personnel service fund.

Moneys from the personnel service fund shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the office of financial management.

During the 2013-2015 fiscal biennium, the legislature may transfer from the personnel service fund to the state general fund and the education legacy trust account such amounts as reflect the excess fund balance of the account.

Sec. 911. RCW 43.08.190 and 2013 2nd sp.s. c 4 s 973 are each amended to read as follows:

There is hereby created a fund within the state treasury to be known as the "state treasurer's service fund." Such fund shall be used solely for the payment of costs and expenses incurred in the operation and administration of the state treasurer's office.

Moneys shall be allocated monthly and placed in the state treasurer's service fund equivalent to a maximum of one percent of the trust and treasury average daily cash balances from the earnings generated under the authority of RCW 43.79A.040 and 43.84.080 other than earnings generated from investment of balances in funds and accounts specified in RCW 43.79A.040(4)(c). The allocation shall precede the distribution of the remaining earnings as prescribed under RCW 43.79A.040 and 43.84.092. The state treasurer shall establish a uniform allocation rate for all funds and accounts; except that the state treasurer may negotiate a different allocation rate with any state agency that has independent authority over funds not statutorily required to be held in the state treasury or in the custody of the state treasurer. In no event shall the rate be less than the actual costs incurred by the state treasurer's office. If no rate is separately negotiated, the default rate for any funds held shall be the rate set for funds held pursuant to statute.

During the 2009-2011 fiscal biennium and the 2011-2013 and 2013-2015 fiscal biennia, the legislature may transfer from the state treasurer's service fund to the state general fund such amounts as reflect the excess fund balance of the fund. Additionally, during the 2013-2015 fiscal biennium, the legislature may transfer from the state treasurer's service fund to the education legacy trust account such amounts as reflect the excess balance of the fund.

Sec. 912. RCW 43.10.150 and 2013 2nd sp.s. c 4 s 975 are each amended to read as follows:

A legal services revolving fund is hereby created in the state treasury for the purpose of a centralized funding, accounting, and distribution of the actual costs of the legal services provided to agencies of the state government by the attorney general. During the 2013-2015 fiscal biennium, the legislature may transfer from the legal services revolving account to the state general fund and the education legacy trust account such amounts as reflect the excess fund balance of the account.

Sec. 913. RCW 43.19.791 and 2013 2nd sp.s. c 4 s 976 are each amended to read as follows:

There is created a revolving fund to be known as the data processing revolving fund in the custody of the state treasurer. The revolving fund shall be used for the acquisition of equipment, software, supplies, and services and the payment of salaries, wages, and other costs incidental to the acquisition, development, operation, and administration of information services, telecommunications, systems, software, supplies and equipment, including the payment of principal and interest on bonds issued for capital projects, by the department, Washington State University's computer services center, the department of enterprise services' personnel information systems group and financial systems management group, and other users as determined by the office of financial management. The revolving fund is subject to the allotment procedure provided under chapter 43.88 RCW. The chief information officer or the chief information officer's designee, with the approval of the technology services board, is authorized to expend up to one million dollars per fiscal biennium for the technology services board to conduct independent technical and financial analysis of proposed information technology projects, and such an expenditure does not require an appropriation. Disbursements from the revolving fund for the services component of the department are not subject to appropriation. Disbursements for the strategic planning and policy component of the department are subject to appropriation. All disbursements from the fund are subject to the allotment procedures provided under chapter 43.88 RCW. The department shall establish and implement a billing structure to assure all agencies pay an equitable share of the costs.

During the 2011-2013 and the 2013-2015 fiscal biennia, the legislature may transfer from the data processing revolving account to the state general fund such amounts as reflect the excess fund balance and may use the data processing revolving account for information technology projects. Additionally, during the 2013-2015 fiscal biennium, the legislature may transfer from the data processing revolving account to the education legacy trust account such amounts as reflect the excess balance of the fund.

As used in this section, the word "supplies" shall not be interpreted to delegate or abrogate the division of purchasing's responsibilities and authority to purchase supplies as described in RCW 43.19.190 and 43.19.200.

Sec. 914. RCW 43.79.480 and 2013 2nd sp.s. c 4 s 980 are each amended to read as follows:

(1) Moneys received by the state of Washington in accordance with the settlement of the state's legal action against tobacco product manufacturers, exclusive of costs and attorneys' fees, shall be deposited in the tobacco settlement account created in this section except as these moneys are sold or assigned under chapter 43.340 RCW.

(2) The tobacco settlement account is created in the state treasury. Moneys in the tobacco settlement account may only be transferred to the state general fund, and to the tobacco prevention and control account for purposes set forth in this section. The legislature shall transfer amounts received as strategic contribution payments as defined in RCW 43.350.010 to the life sciences discovery fund created in RCW 43.350.070. During the 2009-2011 and 2011-2013 fiscal biennia, the legislature may transfer less than the entire strategic contribution payments, and may transfer amounts attributable to strategic contribution payments into the basic health plan stabilization account. During the 2013-2015 fiscal biennium, the legislature may transfer less than the entire strategic contribution payments, and may transfer amounts attributable to strategic contribution payments into the state general fund and the education legacy trust account.

(3) The tobacco prevention and control account is created in the state treasury. The source of revenue for this account is moneys transferred to the account from the tobacco settlement account, investment earnings, donations to the account, and other revenues as directed by law. Expenditures from the account are subject to appropriation. During the 2009-2011 fiscal biennium, the legislature may transfer from the tobacco prevention and control account to the state general fund such amounts as represent the excess fund balance of the account.

Sec. 915. RCW 43.325.040 and 2013 2nd sp.s. c 4 s 984 are each amended to read as follows:

(1) The energy freedom account is created in the state treasury. All receipts from appropriations made to the account and any loan payments of principal and interest derived from loans made under the energy freedom account must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for financial assistance for further funding for projects consistent with this chapter or otherwise authorized by the legislature.

(2) The green energy incentive account is created in the state treasury as a subaccount of the energy freedom account. All receipts from appropriations made to the green energy incentive account shall be deposited into the account, and may be spent only after appropriation. Expenditures from the account may be used only for:

(a) Refueling projects awarded under this chapter;

(b) Pilot projects for plug-in hybrids, including grants provided for the electrification program set forth in RCW 43.325.110; and

(c) Demonstration projects developed with state universities as defined in RCW 28B.10.016 and local governments that result in the design and building of a hydrogen vehicle fueling station.

(3)(a) The energy recovery act account is created in the state treasury. State and federal funds may be deposited into the account and any loan payments of principal and interest derived from loans made from the energy recovery act account must be deposited into the account. Moneys in the account may be spent only after appropriation.

(b) Expenditures from the account may be used only for loans, loan guarantees, and grants that encourage the establishment of innovative and sustainable industries for renewable energy and energy efficiency technology, including but not limited to:

(i) Renewable energy projects or programs that require interim financing to complete project development and implementation;

(ii) Companies with innovative, near-commercial or commercial, clean energy technology; and

(iii) Energy efficiency technologies that have a viable repayment stream from reduced utility costs.

(c) The director shall establish policies and procedures for processing, reviewing, and approving applications for funding under this section. When developing these policies and procedures, the department must consider the clean energy leadership strategy developed under section 2, chapter 318, Laws of 2009.

(d) The director shall enter into agreements with approved applicants to fix the term and rates of funding provided from this account.

(e) The policies and procedures of this subsection (3) do not apply to assistance awarded for projects under RCW 43.325.020(3).

(4) Any state agency receiving funding from the energy freedom account is prohibited from retaining greater than three percent of any funding provided from the energy freedom account for administrative overhead or other deductions not directly associated with conducting the research, projects, or other end products that the funding is designed to produce unless this provision is waived in writing by the director.

(5) Any university, institute, or other entity that is not a state agency receiving funding from the energy freedom account is prohibited from retaining greater than fifteen percent of any funding provided from the energy freedom account for administrative overhead or other deductions not directly associated with conducting the research, projects, or other end products that the funding is designed to produce.

(6) Subsections (2), (4), and (5) of this section do not apply to assistance awarded for projects under RCW 43.325.020(3).

(7) During the 2013-2015 fiscal biennium, the legislature may transfer from the energy freedom account to the state general fund and the education legacy trust account such amounts as reflect the excess fund balance of the account.

Sec. 916. RCW 67.70.260 and 2011 1st sp.s. c 50 s 962 are each amended to read as follows:

There is hereby created the lottery administrative account in the state treasury. The account shall be managed, controlled, and maintained by the director. The legislature may appropriate from the account for the payment of costs incurred in the operation and administration of the lottery. During the 2001-2003 fiscal biennium, the legislature may transfer from the lottery administrative account to the state general fund such amounts as reflect the appropriations reductions made by the 2002 supplemental appropriations act for administrative efficiencies and savings. During the ((~~2011-2013~~)) 2013-2015 fiscal biennium, the lottery administrative account may also be used to fund an independent forecast of the lottery revenues conducted by the economic and revenue forecast council.

Sec. 917. RCW 77.36.170 and 2013 c 329 s 2 are each amended to read as follows:

(1) The department may pay no more than fifty thousand dollars per fiscal year from the state wildlife account created in RCW 77.12.170 for claims and assessment costs for injury or loss of livestock caused by wolves submitted under RCW 77.36.100.

(2) Notwithstanding other provisions of this chapter, the department may also accept and expend money from other sources to address injury or loss of livestock or other property caused by wolves consistent with the requirements on that source of funding.

(3) If any wildlife account expenditures authorized under subsections (1) and (4) of this section are unspent as of June 30th of a fiscal year, the state treasurer shall transfer the unspent amount to the wolf-livestock conflict account created in RCW 77.36.180.

(4) During the 2014 fiscal year, the department may pay no more than two hundred and fifty thousand dollars from the state wildlife account created in RCW 77.12.170 for claims and assessment costs for injury or loss of livestock caused by wolves submitted under RCW 77.36.100.

Sec. 918. RCW 82.08.160 and 2013 2nd sp.s. c 4 s 1003 are each amended to read as follows:

(1) On or before the twenty-fifth day of each month, all taxes collected under RCW 82.08.150 during the preceding month must be remitted to the state department of revenue, to be deposited with the state treasurer. Except as provided in subsections (2), (3), and (4) of this section, upon receipt of such moneys the state treasurer must credit sixty-five percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) and one hundred percent of the sums collected and remitted under RCW 82.08.150 (3) and (4) to the state general fund and thirty-five percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) to a fund which is hereby created to be known as the "liquor excise tax fund."

(2) During the 2012 fiscal year, 66.19 percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) must be deposited in the state general fund and the remainder collected and remitted under RCW 82.08.150 (1) and (2) must be deposited in the liquor excise tax fund.

(3) During fiscal year 2013, all funds collected under RCW 82.08.150 (1), (2), (3), and (4) must be deposited into the state general fund.

(4) During the 2013‑2015 fiscal biennium, ((~~eighty two~~)) seventy-seven and one‑half percent of the sums collected and remitted under RCW 82.08.150 (1) and (2) must be deposited in the state general fund and the remainder collected and remitted under RCW 82.08.150 (1) and (2) must be deposited in the liquor excise tax fund. The amendments in this section are curative, clarifying, and remedial and apply retroactively to July 1, 2013.

Sec. 919. RCW 83.100.230 and 2012 1st sp.s. c 10 s 7 are each amended to read as follows:

The education legacy trust account is created in the state treasury. Money in the account may be spent only after appropriation. Expenditures from the account may be used only for support of the common schools, and for expanding access to higher education through funding for new enrollments and financial aid, and other educational improvement efforts. During the 2013-2015 fiscal biennium, the education legacy trust account may be used for expenditures related to Engrossed Second Substitute House Bill No. 2377 (early care and education).

Sec. 920. 2013 2nd sp.s. c 35 s 39 (uncodified) is amended to read as follows:

The sum of one hundred seventy-six thousand dollars of the state general fund for the fiscal year ending June 30, 2014, and one hundred seventy-six thousand dollars of the state general fund for the fiscal year ending June 30, 2015, or as much thereof as may be necessary, are appropriated to the ((~~Washington traffic safety~~)) criminal justice training commission solely for the purposes of ((~~section 25 of this act~~)) RCW 36.28A.320.

NEW SECTION. Sec. 921. 2013 2nd sp.s. c 35 s 40 (uncodified) is repealed.

NEW SECTION. Sec. 922. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

The sum of one hundred seventy thousand dollars from the state general fund for the fiscal year ending June 30, 2014, and two hundred twenty-seven thousand dollars of the state general fund for the fiscal year ending June 30, 2015, or as much thereof as may be necessary, are appropriated for expenditure into the county criminal justice assistance account. The treasurer shall make quarterly distributions from the county criminal justice assistance account of the amounts provided in this section in accordance with RCW 82.14.310 for the purposes of reimbursing local jurisdictions for increased costs incurred as a result of the mandatory arrest of repeat offenders pursuant to chapter 35, Laws of 2013 2nd sp. sess. The first distribution for fiscal year 2014 shall include amounts from previous quarters for which distributions were not made. The appropriations and distributions made under this section constitute appropriate reimbursement for costs for any new programs or increased level of services for the purposes of RCW 43.135.060.

NEW SECTION. Sec. 923. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

The sum of one hundred thousand dollars from the state general fund for the fiscal year ending June 30, 2014, and one hundred thirty-three thousand dollars from the state general fund for the fiscal year ending June 30, 2015, or as much thereof as may be necessary, are appropriated for expenditure into the municipal criminal justice assistance account. The treasurer shall make quarterly distributions from the municipal criminal justice assistance account of the amounts provided in this section in accordance with RCW 82.14.320, for the purposes of reimbursing local jurisdictions for increased costs incurred as a result of the mandatory arrest of repeat offenders pursuant to chapter 35, Laws of 2013 2nd sp. sess. The first distribution for fiscal year 2014 shall include amounts from previous quarters for which distributions were not made. The appropriations and distributions made under this section constitute appropriate reimbursement for costs for any new programs or increased level of services for the purposes of RCW 43.135.060.

NEW SECTION. Sec. 924. A new section is added to 2013 2nd sp.s. c 4 (uncodified) to read as follows:

(1) A joint task force on local education financing reform is established with the following members:

(a) Four members from the house of representatives, two from each major caucus, appointed by the speaker of the house of representatives;

(b) Four members from the senate, two from each major caucus, appointed by the majority leader and minority leader of the major caucuses of the senate;

(d) The superintendent of public instruction or the superintendent's designee.

(2) Appointments to the task force shall be completed within thirty days of the effective date of this section.

(3) The task force shall be cochaired by one member of the house of representatives and one member of the senate, selected by the members of the task force.

(4) The task force shall:

(a) Review the work of the levy and local effort assistance technical working group created in accordance with chapter 548, Laws of 2009, and amended by chapter 236, Laws of 2010, and other relevant studies and information;

(b) Review the use of local levies by school districts, including the level of funding and how the funding is used by school districts;

(c) Review issues related to various aspects of the local levy process, including school district levy authority, the determination of the levy base, the different levy lids, levy equalization, school choice to use excess levies rather than regular levies, and other voter approval strategies available to school districts;

(d) Review issues related to the small school factor in state funding formulas;

(e) Review the work of the compensation technical working group created in accordance with chapter 548, Laws of 2009, and amended by chapter 236, Laws of 2010, and other relevant studies and information as they relate to salary grandfathering and regional compensation differences in state funding formulas;

(f) Review issues related to grandfathered base salary allocations for certificated instructional staff in state funding formulas;

(g) Review options for addressing regional labor market differences in state funding formulas; and

(h) Recommend approaches in a report to the governor and the legislature to address a system for state and local funds that are distributed in a manner that provides all children with the opportunity to meet the state's academic standards and become prepared for postsecondary careers and education, and that provides compensation allocations that are adequate to hire and retain competent teachers.

(5) Findings and recommendations from the task force shall be reported to fiscal committees of the legislature by December 20, 2014.

(6) Staff and logistical support for the task force must be provided by the house of representatives office of program research and senate committee services, with assistance as necessary from the office of financial management and the office of the superintendent of public instruction. The first meeting of the task force shall be convened by the house of representatives office of program research and senate committee services within forty-five days of the effective date of this section.

(7) Members of the task force shall be reimbursed for travel expenses as provided in RCW 44.04.120.

(8) This section expires June 30, 2015.

NEW SECTION. Sec. 925. Section 915 of this act expires June 30, 2016.

Sec. 926. 2007 c 465 s 3 (uncodified) is amended to read as follows:

This act expires June 30, ((~~2014~~)) 2015.

Sec. 927. 2009 c 520 s 96 (uncodified) is amended to read as follows:

Section 63 of this act expires June 30, ((~~2014~~)) 2015.

NEW SECTION. Sec. 928. 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. 929. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

(End of Bill)

INDEX PAGE #

ACQUISITION OF INFORMATION TECHNOLOGY PROJECTS THROUGH FINANCIAL CONTRACTS .............................. 274

ADMINISTRATOR FOR THE COURTS .................................. 8

ATTORNEY GENERAL ......................................................... 20

BOARD FOR VOLUNTEER FIREFIGHTERS ....................... 49

BOARD OF ACCOUNTANCY ............................................... 46

BOARD OF INDUSTRIAL INSURANCE APPEALS .......... 119

BOARD OF TAX APPEALS ................................................... 41

CASELOAD FORECAST COUNCIL ..................................... 23

CENTRAL WASHINGTON UNIVERSITY .......................... 237

CITIZENS' COMMISSION ON SALARIES FOR ELECTED OFFICIALS ................................................................................................... 20

COLLECTIVE BARGAINING AGREEMENT FOR NONSTATE EMPLOYEES SEIU LOCAL 925 CHILDCARE

WORKERS ............................................................................ 272

COLUMBIA RIVER GORGE COMMISSION ...................... 150

COMMISSION ON AFRICAN-AMERICAN AFFAIRS ......... 37

COMMISSION ON ASIAN PACIFIC AMERICAN AFFAIRS 18

COMMISSION ON HISPANIC AFFAIRS .............................. 37

COMMISSION ON JUDICIAL CONDUCT .............................. 7

COMPENSATION

NONREPRESENTED EMPLOYEES--INSURANCE

BENEFITS ............................................................................. 273

REPRESENTED EMPLOYEES OUTSIDE SUPER

COALITION--INSURANCE BENEFITS .............................. 271

REPRESENTED EMPLOYEES--SUPER

COALITION--INSURANCE BENEFITS .............................. 270

CONSERVATION COMMISSION ....................................... 157

COURT OF APPEALS .............................................................. 7

CRIMINAL JUSTICE TRAINING COMMISSION .............. 119

DEPARTMENT OF AGRICULTURE ................................... 165

DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION .................................................................... 50

DEPARTMENT OF COMMERCE .......................................... 23

DEPARTMENT OF CORRECTIONS ................................... 134

DEPARTMENT OF EARLY LEARNING ............................ 245

DEPARTMENT OF ECOLOGY ........................................... 150

DEPARTMENT OF ENTERPRISE SERVICES ...................... 47

DEPARTMENT OF FISH AND WILDLIFE ......................... 158

DEPARTMENT OF HEALTH ............................................... 126

DEPARTMENT OF LABOR AND INDUSTRIES ................ 121

DEPARTMENT OF LICENSING .......................................... 168

DEPARTMENT OF NATURAL RESOURCES .................... 162

DEPARTMENT OF RETIREMENT SYSTEMS--OPERATIONS 38

DEPARTMENT OF REVENUE .............................................. 39

DEPARTMENT OF SERVICES FOR THE BLIND .............. 145

DEPARTMENT OF SOCIAL AND HEALTH SERVICES ..... 51

ADMINISTRATION AND SUPPORTING SERVICES

PROGRAM .............................................................................. 98

AGING AND ADULT SERVICES PROGRAM ...................... 80

ALCOHOL AND SUBSTANCE ABUSE PROGRAM ............ 93

CHILDREN AND FAMILY SERVICES PROGRAM ............. 54

DEVELOPMENTAL DISABILITIES PROGRAM ................. 76

ECONOMIC SERVICES PROGRAM ..................................... 89

JUVENILE REHABILITATION PROGRAM ......................... 60

MENTAL HEALTH PROGRAM ............................................ 66

PAYMENTS TO OTHER AGENCIES PROGRAM .............. 100

SPECIAL COMMITMENT PROGRAM ................................. 96

VOCATIONAL REHABILITATION PROGRAM .................. 96

DEPARTMENT OF VETERANS AFFAIRS ......................... 125

EASTERN WASHINGTON STATE HISTORICAL

SOCIETY ............................................................................... 252

EASTERN WASHINGTON UNIVERSITY .......................... 237

ECONOMIC AND REVENUE FORECAST COUNCIL ......... 30

EMPLOYMENT SECURITY DEPARTMENT ..................... 146

ENVIRONMENTAL AND LAND USE HEARINGS

OFFICE .................................................................................. 156

EVERGREEN STATE COLLEGE ........................................ 238

GAMBLING COMMISSION .................................................. 50

GOVERNOR'S OFFICE OF INDIAN AFFAIRS ..................... 18

HORSE RACING COMMISSION ........................................... 47

HOUSE OF REPRESENTATIVES ............................................ 1

HUMAN RIGHTS COMMISSION ........................................ 118

INSURANCE COMMISSIONER ............................................ 42

JOINT LEGISLATIVE AUDIT AND REVIEW COMMITTEE 2

JOINT LEGISLATIVE SYSTEMS COMMITTEE .................... 6

LAW LIBRARY ........................................................................ 7

LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE ............................................................................ 5

LIEUTENANT GOVERNOR .................................................. 14

LIQUOR CONTROL BOARD ................................................. 43

MILITARY DEPARTMENT ................................................... 44

OFFICE OF ADMINISTRATIVE HEARINGS ....................... 36

OFFICE OF CIVIL LEGAL AID ............................................. 12

OFFICE OF FINANCIAL MANAGEMENT ........................... 31

COMMON SCHOOL CONSTRUCTION ACCOUNT .......... 259

CONTRIBUTIONS FOR STATE EMPLOYEE HEALTH

INSURANCE ....................................................................... 257

EXTRAORDINARY CRIMINAL JUSTICE COSTS ............ 258

NATURAL RESOURCES REAL PROPERTY REPLACEMENT

ACCOUNT ............................................................................ 259

OFFICE OF ADMINISTRATIVE HEARINGS ..................... 260

OFFICE OF ATTORNEY GENERAL ................................... 259

OFFICE OF THE CHIEF INFORMATION OFFICER .......... 260

PARKLAND TRUST REVOLVING ACCOUNT ................. 258

THURSTON COUNTY CAPITAL FACILITIES ACCOUNT 258

OFFICE OF LEGISLATIVE SUPPORT SERVICES ................. 6

OFFICE OF MINORITY AND WOMEN'S BUSINESS ENTERPRISES ................................................................................................... 41

OFFICE OF PUBLIC DEFENSE ............................................. 12

OFFICE OF THE GOVERNOR ............................................... 13

OFFICE OF THE STATE ACTUARY ....................................... 6

PROGRAMS FOR HIGHLY CAPABLE STUDENTS .......... 210

PUBLIC BACCALAUREATE INSTITUTIONS ................... 226

PUBLIC DISCLOSURE COMMISSION ................................. 15

PUBLIC EMPLOYMENT RELATIONS COMMISSION ....... 46

PUGET SOUND PARTNERSHIP ......................................... 166

RECREATION AND CONSERVATION FUNDING

BOARD .................................................................................. 156

SECRETARY OF STATE ........................................................ 15

SENATE .................................................................................... 1

STATE AUDITOR ................................................................... 19

STATE BOARD FOR COMMUNITY AND TECHNICAL COLLEGES ......................................................................................... 228, 230

STATE HEALTH CARE AUTHORITY ................................ 100

STATE INVESTMENT BOARD ............................................. 42

STATE PARKS AND RECREATION COMMISSION ....... 155

STATE PATROL ................................................................... 170

STATE SCHOOL FOR THE BLIND ..................................... 250

STATE TREASURER ...................................................... 19, 261

BOND RETIREMENT AND INTEREST, AND ONGOING

BOND REGISTRATION ............................................... 253, 254

COUNTY PUBLIC HEALTH ASSISTANCE ....................... 255

FEDERAL REVENUES FOR DISTRIBUTION .................... 263

FOR THE COUNTY CRIMINAL JUSTICE ASSISTANCE

ACCOUNT ............................................................................ 262

MUNICIPAL CRIMINAL JUSTICE ASSISTANCE

ACCOUNT ............................................................................ 263

TRANSFERS ......................................................................... 264

STATUTE LAW COMMITTEE ................................................ 6

STUDENT ACHIEVEMENT COUNCIL

OFFICE OF STUDENT FINANCIAL ASSISTANCE ........... 242

POLICY COORDINATION AND ADMINISTRATION ...... 241

SUNDRY CLAIMS ................................................................ 257

SUPERINTENDENT OF PUBLIC INSTRUCTION ...... 173, 221

BASIC EDUCATION EMPLOYEE COMPENSATION ....... 196

EDUCATION REFORM PROGRAMS ................................. 211

EDUCATIONAL SERVICE DISTRICTS .............................. 208

GENERAL APPORTIONMENT ........................................... 183

INSTITUTIONAL EDUCATION PROGRAMS .................... 209

LEARNING ASSISTANCE PROGRAM ............................... 220

LOCAL EFFORT ASSISTANCE .......................................... 209

MISCELLANEOUS‑-NO CHILD LEFT BEHIND ACT ....... 211

PUPIL TRANSPORTATION ................................................. 201

SCHOOL EMPLOYEE COMPENSATION

ADJUSTMENTS ................................................................... 200

SCHOOL FOOD SERVICE PROGRAMS ............................. 203

SPECIAL EDUCATION PROGRAMS ................................. 204

TRANSITIONAL BILINGUAL PROGRAMS ...................... 218

SUPREME COURT ................................................................... 7

UNIVERSITY OF WASHINGTON ....................................... 232

UTILITIES AND TRANSPORTATION COMMISSION ........ 44

WASHINGTON POLLUTION LIABILITY INSURANCE PROGRAM ................................................................................................. 166

WASHINGTON STATE ARTS COMMISSION ................... 251

WASHINGTON STATE CENTER FOR CHILDHOOD DEAFNESS AND HEARING LOSS ................................................................... 251

WASHINGTON STATE CHARTER SCHOOL

COMMISSION ...................................................................... 222

WASHINGTON STATE HISTORICAL SOCIETY .............. 251

WASHINGTON STATE LOTTERY ....................................... 37

WASHINGTON STATE UNIVERSITY ............................... 234

WESTERN WASHINGTON UNIVERSITY ......................... 240

WORK FORCE TRAINING AND EDUCATION COORDINATING BOARD ................................................................................ 245"

Correct the title.

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator Hill moved that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6002 and request of the House a conference thereon.

Senator Hill spoke in favor of the motion.

The President declared the question before the Senate to be motion by Senator Hill that the Senate refuse to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6002 and request a conference thereon.

The motion by Senator Hill carried and the Senate refused to concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6002 and requested of the House a conference thereon by voice vote.

APPOINTMENT OF CONFERENCE COMMITTEE

The President appointed as members of the Conference Committee on Engrossed Substitute Senate Bill No. 6002 and the House amendment(s) thereto: Senators Braun, Hargrove and Hill.

MOTION

On motion of Senator Hill, the appointments to the conference committee were confirmed.

MOTION

On motion of Senator Fain, the Senate advanced to the seventh order of business.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Chase moved that J Tayloe Washburn, Gubernatorial Appointment No. 9223, be confirmed as a member of the Board of Trustees, Shoreline Community College District No. 7.

Senator Chase spoke in favor of the motion.

APPOINTMENT OF J TAYLOE WASHBURN

The President declared the question before the Senate to be the confirmation of J Tayloe Washburn, Gubernatorial Appointment No. 9223, as a member of the Board of Trustees, Shoreline Community College District No. 7.

The Secretary called the roll on the confirmation of J Tayloe Washburn, Gubernatorial Appointment No. 9223, as a member of the Board of Trustees, Shoreline Community College District No. 7 and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

J Tayloe Washburn, Gubernatorial Appointment No. 9223, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Shoreline Community College District No. 7.

SIGNED BY THE PRESIDENT

Pursuant to Article 2, Section 32 of the State Constitution and Senate Rule 1(5), the President announced the signing of and thereupon did sign in open session:

SECOND ENGROSSED SUBSTITUTE HOUSE BILL NO. 1117,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1129,

SECOND SUBSTITUTE HOUSE BILL NO. 1651,

SECOND SUBSTITUTE HOUSE BILL NO. 1709,

SUBSTITUTE HOUSE BILL NO. 1791,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2023,

ENGROSSED HOUSE BILL NO. 2108,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2111,

SECOND SUBSTITUTE HOUSE BILL NO. 2163,

SECOND SUBSTITUTE HOUSE BILL NO. 2251,

HOUSE BILL NO. 2253,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2315,

SECOND SUBSTITUTE HOUSE BILL NO. 2457,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2463,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2493,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2519,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2569,

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2580,

SUBSTITUTE HOUSE BILL NO. 2612,

SUBSTITUTE HOUSE BILL NO. 2613,

SECOND SUBSTITUTE HOUSE BILL NO. 2616,

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2626,

SECOND SUBSTITUTE HOUSE BILL NO. 2627,

SUBSTITUTE HOUSE BILL NO. 2724,

ENGROSSED HOUSE BILL NO. 2789.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Cleveland moved that Rekah T Strong, Gubernatorial Appointment No. 9240, be confirmed as a member of the Board of Trustees, Clark Community College District No. 14.

Senator Cleveland spoke in favor of the motion.

MOTION

On motion of Senator Frockt, Senator Liias was excused.

APPOINTMENT OF REKAH T STRONG

The President declared the question before the Senate to be the confirmation of Rekah T Strong, Gubernatorial Appointment No. 9240, as a member of the Board of Trustees, Clark Community College District No. 14.

The Secretary called the roll on the confirmation of Rekah T Strong, Gubernatorial Appointment No. 9240, as a member of the Board of Trustees, Clark Community College District No. 14 and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Rekah T Strong, Gubernatorial Appointment No. 9240, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Clark Community College District No. 14.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Padden moved that David Boerner, Gubernatorial Appointment No. 9246, be confirmed as a member of the Sentencing Guidelines Commission.

Senator Padden spoke in favor of the motion.

APPOINTMENT OF DAVID BOERNER

The President declared the question before the Senate to be the confirmation of David Boerner, Gubernatorial Appointment No. 9246, as a member of the Sentencing Guidelines Commission.

The Secretary called the roll on the confirmation of David Boerner, Gubernatorial Appointment No. 9246, as a member of the Sentencing Guidelines Commission and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

David Boerner, Gubernatorial Appointment No. 9246, having received the constitutional majority was declared confirmed as a member of the Sentencing Guidelines Commission.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Chase moved that Heather L Flaherty, Gubernatorial Appointment No. 9267, be confirmed as a member of the Board of Trustees, Western Washington University.

Senator Chase spoke in favor of the motion.

APPOINTMENT OF HEATHER L FLAHERTY

The President declared the question before the Senate to be the confirmation of Heather L Flaherty, Gubernatorial Appointment No. 9267, as a member of the Board of Trustees, Western Washington University.

The Secretary called the roll on the confirmation of Heather L Flaherty, Gubernatorial Appointment No. 9267, as a member of the Board of Trustees, Western Washington University and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Heather L Flaherty, Gubernatorial Appointment No. 9267, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, Western Washington University.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Fraser moved that Keith L Kessler, Gubernatorial Appointment No. 9282, be confirmed as a member of the Board of Trustees, The Evergreen State College.

Senator Fraser spoke in favor of the motion.

APPOINTMENT OF KEITH L KESSLER

The President declared the question before the Senate to be the confirmation of Keith L Kessler, Gubernatorial Appointment No. 9282, as a member of the Board of Trustees, The Evergreen State College.

The Secretary called the roll on the confirmation of Keith L Kessler, Gubernatorial Appointment No. 9282, as a member of the Board of Trustees, The Evergreen State College and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Keith L Kessler, Gubernatorial Appointment No. 9282, having received the constitutional majority was declared confirmed as a member of the Board of Trustees, The Evergreen State College.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Dammeier moved that Deborah J Wilds, Gubernatorial Appointment No. 9224, be confirmed as a member of the State Board of Education.

Senator Dammeier spoke in favor of the motion.

APPOINTMENT OF DEBORAH J WILDS

The President declared the question before the Senate to be the confirmation of Deborah J Wilds, Gubernatorial Appointment No. 9224, as a member of the State Board of Education.

The Secretary called the roll on the confirmation of Deborah J Wilds, Gubernatorial Appointment No. 9224, as a member of the State Board of Education and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Deborah J Wilds, Gubernatorial Appointment No. 9224, having received the constitutional majority was declared confirmed as a member of the State Board of Education.

THIRD READING

CONFIRMATION OF GUBERNATORIAL APPOINTMENTS

MOTION

Senator Honeyford moved that Jeffrey Charbonneau, Gubernatorial Appointment No. 9234, be confirmed as a member of the Washington State Student Achievement Council.

Senator Honeyford spoke in favor of the motion.

APPOINTMENT OF JEFFREY CHARBONNEAU

The President declared the question before the Senate to be the confirmation of Jeffrey Charbonneau, Gubernatorial Appointment No. 9234, as a member of the Washington State Student Achievement Council.

The Secretary called the roll on the confirmation of Jeffrey Charbonneau, Gubernatorial Appointment No. 9234, as a member of the Washington State Student Achievement Council and the appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Jeffrey Charbonneau, Gubernatorial Appointment No. 9234, having received the constitutional majority was declared confirmed as a member of the Washington State Student Achievement Council.

MOTION

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

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House passed ENGROSSED SUBSTITUTE SENATE BILL NO. 5972 with the following amendment(s): 5972-S.E AMH HANS ADAM 107

0. On page 2, beginning on line 14, after "fire" strike all material through "fire" on line 16 and insert ", to the extent permitted by Washington law"

On page 2, line 18, after "chapter;" strike "and"

On page 2, beginning on line 23, after "opportunities" strike all material through "property." on line 25 and insert "; and

(d) In actions brought by an Indian tribe for recovery of damages from injury to archaeological objects, archaeological sites, or historic archaeological resources, damages as measured in accordance with WAC 25-48-043 as it existed on the effective date of this section."

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator Pearson moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5972.

Senators Pearson and Liias spoke in favor of the motion.

The President declared the question before the Senate to be the motion by Senator Pearson that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 5972.

The motion by Senator Pearson carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 5972 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 5972, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5972, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Voting nay: Senator Hasegawa

ENGROSSED SUBSTITUTE SENATE BILL NO. 5972, 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 Fain, Senator Ericksen was excused.

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6001 with the following amendment(s): 6001-S.E AMH CLIB H4539.3

0.Strike everything after the enacting clause and insert the following:

"2013-2015 FISCAL BIENNIUM
GENERAL GOVERNMENT AGENCIES—OPERATING

Sec. 101. 2013 c 306 s 101 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION

Motor Vehicle Account‑-State Appropriation

................................................................................... ((~~$435,000~~))

........................................................................................ $433,000

The appropriation in this section is subject to the following conditions and limitations: The entire appropriation is provided solely for staffing costs to be dedicated to state transportation activities. Staff hired to support transportation activities must have practical experience with complex construction projects.

Sec. 102. 2013 c 306 s 102 (uncodified) is amended to read as follows:

FOR THE UTILITIES AND TRANSPORTATION COMMISSION

Grade Crossing Protective Account--State

Appropriation.................................................................. $504,000

The appropriation in this section is subject to the following conditions and limitations:
      (1) Within existing resources, the commission must work with stakeholders to study the safety of equipment, driver qualifications, insurance levels, safety of operations, and the past accidents of charter party carriers providing railroad crew transportation.
      (2) The study must include a review of current practices regarding:
      (a) Driver qualifications, including a driver's experience and skill, physical condition, type or class of license, and any license suspensions or revocations;
      (b) Equipment safety;
      (c) Safety of operations;
      (d) Passenger safety;
      (e) Insurance coverage levels, including liability coverage, uninsured and underinsured motorist coverage, and property damage coverage; and
      (f) Safety complaints received by the commission.
      (3) This study must also include examination of past accidents involving vehicles regulated under chapter 81.61 RCW.
      (4) The commission must provide a report to the legislature by December 31, 2014, summarizing the findings to date, including recommendations for avoiding accidents in the future and providing recommended statutory changes that would enhance public safety.

Sec. 103. 2013 c 306 s 103 (uncodified) is amended to read as follows:

FOR THE OFFICE OF FINANCIAL MANAGEMENT

Motor Vehicle Account‑-State Appropriation

................................................................................ ((~~$1,641,000~~))

..................................................................................... $1,636,000

Puget Sound Ferry Operations Account‑-State

Appropriation.................................................................. $176,000

TOTAL APPROPRIATION.................................... (($1,817,000))

..................................................................................... $1,812,000

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

(1) $932,000 of the motor vehicle account--state appropriation is provided solely for the office of financial management, from funds set aside out of statewide fuel taxes distributed to counties according to RCW 46.68.120(3), to contract with the Washington state association of counties to identify, analyze, evaluate, and implement county transportation performance measures associated with transportation system policy goals outlined in RCW 47.04.280. The Washington state association of counties, in cooperation with state agencies, must: Identify, analyze, and report on county transportation system preservation; identify, evaluate, and report on opportunities to streamline reporting requirements for counties; and evaluate project management tools to help improve project delivery at the county level.

(2) $70,000 of the Puget Sound ferry operations account‑-state appropriation is provided solely for the state's share of the marine salary survey.

Sec. 104. 2013 c 306 s 106 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF AGRICULTURE

Motor Vehicle Account‑-State Appropriation..................................

................................................................................ (($1,208,000))

..................................................................................... $1,203,000

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

(1) $351,000 of the motor vehicle account‑-state appropriation is provided solely for costs associated with the motor fuel quality program.

(2) $857,000 of the motor vehicle account‑-state appropriation is provided solely to test the quality of biofuel. The department must test fuel quality at the biofuel manufacturer, distributor, and retailer.

Sec. 105. 2013 c 306 s 107 (uncodified) is amended to read as follows:

FOR THE LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE

Motor Vehicle Account‑-State Appropriation

................................................................................... (($529,000))

........................................................................................ $527,000

TRANSPORTATION AGENCIES—OPERATING

Sec. 201. 2013 c 306 s 201 (uncodified) is amended to read as follows:

FOR THE WASHINGTON TRAFFIC SAFETY COMMISSION

Highway Safety Account‑-State Appropriation V

Highway Safety Account‑-Federal Appropriation

.............................................................................. ((~~$40,699,000~~))

................................................................................... $40,780,000

Highway Safety Account‑-Private/Local Appropriation (($50,000))

........................................................................................ $118,000

School Zone Safety Account‑-State Appropriation... (($1,800,000))

..................................................................................... $1,700,000

TOTAL APPROPRIATION.................................. (($45,566,000))

................................................................................... $45,625,000

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

(1) The commission shall develop and implement, in collaboration with the Washington state patrol, a target zero team pilot program in Yakima and Spokane counties. The pilot program must demonstrate the effectiveness of intense, high visibility driving under the influence enforcement in Washington state. The commission shall apply to the national highway traffic safety administration for federal highway safety grants to cover the cost of the pilot program.

(2) $20,000,000 of the highway safety account--federal appropriation is provided solely for federal funds that may be obligated to the commission pursuant to 23 U.S.C. Sec. 164 during the 2013-2015 fiscal biennium.

((~~(4)~~)) (3) The commission may continue to oversee pilot projects implementing the use of automated traffic safety cameras to detect speed violations within cities west of the Cascade mountains that have a population over one hundred ninety-five thousand. For the purposes of pilot projects in this subsection, no more than one automated traffic safety camera may be used to detect speed violations within any one jurisdiction.

(a) The commission shall comply with RCW 46.63.170 in administering the pilot projects.

(b) By January 1, 2015, any local authority that is operating an automated traffic safety camera to detect speed violations must provide a summary to the transportation committees of the legislature concerning the use of the cameras and data regarding infractions, revenues, and costs.

(4)(a) The commission shall coordinate with counties to implement and administer a statewide yellow dot program that will provide a yellow dot window decal and yellow dot folder during the 2013-2015 fiscal biennium.
      (b) The commission may utilize available federal dollars and state dollars to implement and administer the program. The commission may accept donations and partnership funds through the state's existing donation process and deposit the funds to the highway safety account for the start-up and continued support of the program.
      (c) The commission, in conjunction with counties, shall maintain a separate web page that allows a person to download the yellow dot form to be placed in the yellow dot folder and lists the locations in which a person may pick up the yellow dot window decal and folder. The commission and counties may not collect any personal information. A person using the program is responsible for maintaining the information in the yellow dot folder. Participation in the program does not create any new or distinct obligation for emergency medical responders or law enforcement personnel to determine if there is a yellow dot folder in the motor vehicle or use the information contained in the yellow dot folder.
      (d) The commission may adopt rules necessary to implement this subsection.
      (5) During the 2013-2015 fiscal biennium, the commission shall continue to provide funding to counties for target zero task forces at the same annual allotment levels that were in place January 1, 2014. By December 1, 2014, the commission must report to the transportation committees of the legislature on any proposed changes in funding levels for target zero task forces in the 2015-2017 fiscal biennium.

Sec. 202. 2013 c 306 s 202 (uncodified) is amended to read as follows:

FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account‑-State Appropriation...... (($945,000))

........................................................................................ $939,000

Motor Vehicle Account‑-State Appropriation..................................

................................................................................ (($2,186,000))

..................................................................................... $2,195,000

County Arterial Preservation Account‑-State

Appropriation.......................................................... (($1,456,000))

..................................................................................... $1,446,000

TOTAL APPROPRIATION.................................... (($4,587,000))

..................................................................................... $4,580,000

Sec. 203. 2013 c 306 s 203 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Transportation Improvement Account‑-State

Appropriation.......................................................... (($3,804,000))

..................................................................................... $3,900,000

Sec. 204. 2013 c 306 s 204 (uncodified) is amended to read as follows:

FOR THE JOINT TRANSPORTATION COMMITTEE

Motor Vehicle Account‑-State Appropriation

................................................................................ (($1,330,000))

..................................................................................... $1,575,000

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

(1)(a) $325,000 of the motor vehicle account--state appropriation is for a study of transportation cost drivers and potential efficiencies to contain project costs and gain more value from investments in Washington state's transportation system. The goal is to enable the department of transportation to construct bridge and highway projects more quickly and to build and operate them at a lower cost, while ensuring that appropriate environmental and regulatory protections are maintained and a quality project is delivered. The joint transportation committee must convene an advisory panel to provide study guidance and discuss potential efficiencies and recommendations. The scope of the study must be limited to state-level policies and practices relating to the planning, design, permitting, construction, financing, and operation of department of transportation roadway and bridge projects. The study must:

(i) Identify best practices;

(ii) Identify inefficiencies in state policy or agency practice where changes may save money;

(iii) Recommend changes to improve efficiency and save money; and

(iv) Identify potential savings to be achieved by adopting changes in practice or policy.

(b) The joint transportation committee shall issue a report of its findings to the house of representatives and senate transportation committees by December 31, 2013.

(2) The joint transportation committee shall coordinate a work group comprised of the department of licensing, the department of revenue, county auditors or other agents, and subagents to identify possible issues relating to the administration of, compliance with, and enforcement of the existing statutory requirement for a person to provide an unexpired driver's license when registering a vehicle. The work group shall provide recommendations on how administration and enforcement may be modified, as needed, to address any identified issues, including whether statutory changes may be needed. A report presenting the recommendations must be presented to the house of representatives and senate transportation committees by December 31, 2013.

(3) The joint transportation committee shall continue to convene a subcommittee for legislative oversight of the I-5/Columbia river crossing bridge replacement project. The Columbia river crossing legislative oversight subcommittee must be made up of six members: Two appointed by the cochairs of the senate transportation committee, two appointed by the chair and ranking member of the house of representatives transportation committee, one designee of the governor, and one citizen jointly appointed by the four members of the joint transportation executive committee. The citizen appointee must be a Washington state resident of the area served by the bridge. At least two of the legislative members must be from the legislative districts served by the bridge. In addition to reviewing project and financing information, the subcommittee must also coordinate with the Oregon legislative oversight committee for the Columbia river crossing bridge.

(4) The joint transportation committee shall convene a work group to identify and evaluate internal refinance opportunities for the Tacoma Narrows bridge. The study must include a staff work group, including staff from the office of financial management, the transportation commission, the department of transportation, the office of the state treasurer, and the legislative transportation committees. The joint transportation committee shall issue a report of its findings to the house of representatives and the senate transportation committees by December 31, 2013.

(5) The joint transportation committee shall study and review the use of surplus property proceeds to fund facility replacement projects, and the possibility of using the north central region as a pilot. The joint transportation committee shall consult with the department of transportation and the office of financial management regarding the department's current process for prioritizing and funding facility improvement and replacement projects.

      (6) $250,000 of the motor vehicle account--state appropriation is for the joint transportation committee to evaluate the current status of electric vehicle charging stations in Washington, and to make recommendations regarding potential business models for financially- sustainable electric vehicle charging networks and alternative roles for public and private sector participation in those business models. Public sector participation may include public financing, funding, facilitation, and other incentives to encourage installation of electric vehicle charging stations. In conducting the study, the committee must coordinate with the department of transportation and consult with local governments and stakeholders in the electric vehicle industry. The committee may also consult with users of electric vehicles and stakeholders representing manufacturers and operators of electric vehicle charging stations. The committee shall submit an interim report by December 31, 2014, and a final report by March 1, 2015.
      (7) The joint transportation committee shall coordinate a work group to review the existing titling and registration processes along with policies that county auditors, subagents, and agents must comply with when conducting title and registration transactions. The goal and related outcomes of the work group review are to provide recommendations to streamline processes, modernize policies, and identify potential information technology opportunities. Members of the work group shall only include county auditors, subagents, agents, and the department of licensing. The work group shall submit a report to the transportation committees of the legislature on or before December 1, 2014.
      (8) The joint transportation committee shall coordinate a work group comprised of representatives from the department of licensing, the Washington state traffic safety commission, and other stakeholders as deemed necessary, along with interested legislators, to develop parameters for and make recommendations regarding a pilot program that would allow students to meet traffic safety education requirements online. Additionally, the work group shall make recommendations related to requiring driver training to individuals between the ages of eighteen and twenty-four who have not previously passed a driver training education program or other methods of enhancing the safety of this high-risk group. The joint transportation committee shall issue a report of its findings to the transportation committees of the house of representatives and senate by December 1, 2014.

Sec. 205. 2013 c 306 s 205 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION COMMISSION

Motor Vehicle Account‑-State Appropriation..................................

................................................................................ (($2,947,000))

..................................................................................... $3,516,000

Multimodal Transportation Account‑-State

Appropriation.................................................................. $112,000

TOTAL APPROPRIATION.................................... (($3,059,000))

..................................................................................... $3,628,000

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

(1) Consistent with RCW 43.135.055, 47.60.290, and 47.60.315, during the 2013-2015 fiscal biennium, the legislature authorizes the transportation commission to periodically review and, if necessary, adjust the schedule of fares for the Washington state ferry system only in amounts not greater than those sufficient to generate the amount of revenue required by the biennial transportation budget. When adjusting ferry fares, the commission must consider input from affected ferry users by public hearing and by review with the affected ferry advisory committees, in addition to the data gathered from the current ferry user survey.

(2) Consistent with RCW 43.135.055 and 47.46.100, during the 2013- 2015 fiscal biennium, the legislature authorizes the transportation commission to periodically review and, if necessary, adjust the schedule of toll charges applicable to the Tacoma Narrows bridge only in amounts not greater than those sufficient to support (a) any required costs for operating and maintaining the toll bridge, including the cost of insurance, (b) any amount required by law to meet the redemption of bonds and applicable interest payments, and (c) repayment of the motor vehicle fund.

(3) Consistent with RCW 43.135.055 and 47.56.880, during the 2013-2015 fiscal biennium, the legislature authorizes the transportation commission to set, periodically review, and, if necessary, adjust the schedule of toll charges applicable to the Interstate 405 express toll lanes.
(4)(a) $400,000 of the motor vehicle account--state appropriation is provided solely for the development of the business case for the transition to a road usage charge system as the basis for funding the state transportation system, from the current motor fuel tax system. The funds are provided for fiscal year 2014 only.

(b) The legislature finds that the efforts started in the 2011-2013 fiscal biennium regarding the transition to a road usage charge system represent an important first step in the policy and conceptual development of potential alternative systems to fund transportation projects, but that the governance for the development needs clarification. The legislature also finds that significant amounts of research and public education are occurring in similar efforts in several states and that these efforts can and should be leveraged to advance the evaluation in Washington. The legislature intends, therefore, that the commission and its staff lead the policy development of the business case for a road usage charge system, with the goal of providing the business case to the governor and the legislative committees of the legislature in time for inclusion in the 2014 supplemental omnibus transportation appropriations act. The legislature intends for additional oversight in the business case development, with guidance from a steering committee as provided in chapter 86, Laws of 2012, augmented with participation by the joint transportation committee. The legislature further intends that the department of transportation continue to address administrative, technical, and conceptual operational issues related to road usage charge systems, and that the department serve as a resource for information gleaned from other states on this topic for the commission's efforts.

(i) Develop preliminary road usage charge policies that are necessary to develop the business case, as well as supporting research and data that will guide the potential application in Washington;

(ii) Develop the preferred operational concept or concepts that reflect the preliminary policies;

(iii) Evaluate the business case for the road usage charge system that would result from implementing the preliminary policies and preferred operational concept or concepts. The evaluation must assess likely financial outcomes if the system were to be implemented; and

(iv) Identify and document policy and other issues that are deemed important to further refine the preferred operational concept or concepts and to gain public acceptance. These identified issues should form the basis for continued work beyond this funding cycle.

(d) The commission shall convene a steering committee to guide the development of the business case. The membership must be the same as provided in chapter 86, Laws of 2012, except that the membership must also include the joint transportation committee executive members.

(e) The commission shall submit a report of the business case to the governor and the transportation committees of the legislature by December 15, 2013. The report must also include a proposed budget and work plan for fiscal year 2015. A progress report must be submitted to the governor and the joint transportation committee by November 1, 2013, including a presentation to the joint transportation committee.

((~~(4)~~)) (5) $174,000 of the motor vehicle account--state appropriation is provided solely for the voice of Washington survey program. The funding must be utilized for continued program maintenance and two transportation surveys for the 2013-2015 fiscal biennium.

      (6)(a) $450,000 of the motor vehicle account--state appropriation is provided solely for a work plan to further develop the concept of a road usage charge system. The work plan must include: Refinement of initial policy analysis and development, a concept of operations that incorporates refined policy inputs, and a financial analysis evaluating the operational concept. The refinement of initial policy analysis and development funded under this subsection must be supplemented by the products of complementary policy refinement tasks delegated to the department of transportation in section 214 of this act and the office of the state treasurer in section 703 of this act. It is the intent of the legislature that consideration for potential planning for a pilot project and any risk analysis occur in the 2015 legislative session.
      (b)(i) For the purposes of the refinement of initial policy analysis and development, the work plan must consider phasing and staging of how a road usage charge would be implemented as it relates to the types of vehicles that would be subject to a road usage charge and the nature and manner of a transition period.
      (ii) For the purposes of this subsection (6)(b), the legislature intends that the commission focus its analysis by assuming that the exemptions under a road usage charge would be the same as those under the motor vehicle fuel and special fuel taxes. In addition, the commission must engage the road usage charge steering committee, which was reauthorized in chapter 306, Laws of 2013 for fiscal year 2014 and is hereby reauthorized in this act with the same membership, to continue in its role and, at a minimum, to guide the work specified in (a) of this subsection, including the following: Assessing and recommending the type of vehicles that would be subject to the road usage charge, and assessing and recommending the options for the timing and duration of the transition period. The steering committee shall report its findings and guidance to the commission by December 1, 2014.
      (c)(i) For the purposes of the development of the concept of operations, the development must incorporate the products of (b) of this subsection, and, to the extent practicable, the products of work conducted by the department of transportation in section 214 of this act and the office of the state treasurer in section 703 of this act.
      (ii) To reduce system development and operational costs, for road user charge options that rely on in-vehicle devices to record mileage, the work plan must recommend how the state can utilize the technology and back-office platforms that are scheduled to be provided by commercial account managers under the Oregon road usage charge program.
      (iii) In addition to a time permit and an odometer charge, the concept of operations recommendation must be developed to include a means for periodic payments based on mileage reporting utilizing methods other than onboard diagnostic in-vehicle devices.
      (d) The work plan and recommendations, along with a proposed work plan and budget for the 2015-2017 fiscal biennium, must be submitted by the commission to the transportation committees of the legislature by January 15, 2015.
      (7) Within existing resources, the commission shall undertake a study of the urban and rural financial and equity implications of a potential road usage charge system in Washington. The commission shall work with the department of transportation and the department of licensing to conduct this analysis. For any survey work that is considered, the commission should utilize the existing voice of Washington survey panel and budget to inform the study. The results must be presented to the governor and the legislature by January 15, 2015.
      (8) $125,000 of the motor vehicle account--state appropriation is provided solely to update the statewide transportation plan required under RCW 47.01.071(4) with the required federal elements to bring the plan into federal compliance. The legislature intends that a single, statewide transportation plan fulfill the requirements of RCW 47.01.071(4) and 47.06.040 and currently known federal planning requirements. The commission shall work collaboratively with the department of transportation to accomplish this intent. The commission shall submit the completed plan to the transportation committees of the legislature, and the department shall submit the completed plan to the United States department of transportation as required under 23 U.S.C. Sec. 135 by June 30, 2015. The commission shall provide a status update on this work to the transportation committees of the legislature by January 1, 2015.

Sec. 206. 2013 c 306 s 206 (uncodified) is amended to read as follows:

FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Motor Vehicle Account‑-State Appropriation ((~~$904,000~~))

........................................................................................ $879,000

Sec. 207. 2013 c 306 s 207 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL

State Patrol Highway Account‑-State

Appropriation...................................................... (($370,354,000))

................................................................................. $366,805,000

State Patrol Highway Account‑-Federal

Appropriation........................................................ (($11,137,000))

................................................................................... $11,067,000

State Patrol Highway Account‑-Private/Local

Appropriation.......................................................... (($3,591,000))

..................................................................................... $3,572,000

Highway Safety Account‑-State Appropriation.... (($19,429,000))

................................................................................... $19,265,000

Multimodal Transportation Account‑-State

Appropriation............................................................. (($273,000))

........................................................................................ $272,000

Ignition Interlock Device Revolving Account--State

Appropriation............................................................. (($573,000))

........................................................................................ $569,000

TOTAL APPROPRIATION................................ (($405,357,000))

................................................................................. $401,550,000

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

(1) The Washington state patrol shall collaborate with the Washington traffic safety commission on the target zero team pilot program referenced in section 201 of this act.

(2) During the 2013-2015 fiscal biennium, the Washington state patrol shall relocate its data center to the state data center in Olympia. The Washington state patrol shall work with the department of enterprise services to negotiate the lease termination agreement for the current data center site.

(3) Washington state patrol officers engaged in off-duty uniformed employment providing traffic control services to the department of transportation or other state agencies may use state patrol vehicles for the purpose of that employment, subject to guidelines adopted by the chief of the Washington state patrol. The Washington state patrol must be reimbursed for the use of the vehicle at the prevailing state employee rate for mileage and hours of usage, subject to guidelines developed by the chief of the Washington state patrol.

(4) $573,000 of the ignition interlock device revolving account-- state appropriation is provided solely for the ignition interlock program at the Washington state patrol to provide funding for two staff to work and provide support for the program in working with manufacturers, service centers, technicians, and participants in the program.

(5) $370,000 of the state patrol highway account--state appropriation is provided solely for costs associated with the pilot program described under section 216((~~(6)~~)) (5) of this act. The Washington state patrol may incur costs related only to the assignment of cadets and necessary computer equipment and to the reimbursement of the department of transportation for contract costs. The appropriation in this subsection must be funded from the portion of the automated traffic safety camera infraction fines deposited into the state patrol highway account; however, if the fines deposited into the state patrol highway account from automated traffic safety camera infractions do not reach three hundred seventy thousand dollars, the department of transportation shall remit funds necessary to the Washington state patrol to ensure the completion of the pilot program. The Washington state patrol may not incur overtime as a result of this pilot program. The Washington state patrol shall not assign troopers to operate or deploy the pilot program equipment used in roadway construction zones.

(6) The cost allocation for any costs incurred for the facilities at the Olympia, Washington airport used for the Washington state patrol aviation section must be split evenly between the state patrol highway account and the general fund.

(7) The Washington state patrol shall work with the state interoperability executive committee to compile a list of recent studies evaluating the potential savings and benefits of consolidating law enforcement and emergency dispatching centers and report to the joint transportation committee by December 1, 2014, on the findings and recommendations of those studies. As part of this study, the Washington state patrol must look for potential efficiencies within state government.

(8) The Washington state patrol shall coordinate and support local law enforcement in Pierce county in providing traffic control on the highways and other activities within current budget during the United States open national golf championship in June 2015.

Sec. 208. 2013 c 306 s 208 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING

Marine Fuel Tax Refund Account‑-State

Appropriation.................................................................... $34,000

Motorcycle Safety Education Account‑-State

Appropriation.......................................................... (($4,409,000))

..................................................................................... $4,396,000

State Wildlife Account‑-State Appropriation...................................

................................................................................... (($885,000))

........................................................................................ $867,000

Highway Safety Account‑-State Appropriation...............................

............................................................................ (($156,679,000))

................................................................................. $158,505,000

Highway Safety Account‑-Federal Appropriation...........................

................................................................................ (($4,392,000))

..................................................................................... $4,363,000

Motor Vehicle Account‑-State Appropriation..................................

.............................................................................. (($76,819,000))

................................................................................... $81,352,000

Motor Vehicle Account‑-Federal Appropriation..............................

........................................................................................ $467,000

Motor Vehicle Account‑-Private/Local Appropriation... $1,544,000

Ignition Interlock Device Revolving Account‑-State

Appropriation.......................................................... (($2,656,000))

..................................................................................... $2,871,000

Department of Licensing Services Account‑-State

Appropriation.......................................................... (($5,959,000))

..................................................................................... $5,983,000

TOTAL APPROPRIATION................................ (($253,844,000))

................................................................................. $260,382,000

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

(1) $1,235,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Substitute House Bill No. 1752), Laws of 2013 (requirements for the operation of commercial motor vehicles in compliance with federal regulations). If chapter . . . (Substitute House Bill No. 1752), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.

(2) $1,000,000 of the highway safety account--state appropriation is provided solely for information technology field system modernization.

      (3) $5,286,000 of the highway safety account--state appropriation is provided solely for business and technology modernization.
      (4) $2,355,000 of the motor vehicle account--state appropriation is provided solely for replacing prorate and fuel tax computer systems used to administer interstate licensing and the collection of fuel tax revenues.
      (5) $1,491,000 of the highway safety account--state appropriation is provided solely for the implementation of an updated central issuance system.
      (6) $201,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5152), Laws of 2013 (Sounders FC and Seahawks license plates). If chapter . . . (Substitute Senate Bill No. 5152), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.

((~~(4)~~)) (7) $425,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5182), Laws of 2013 (vehicle owner information). If chapter . . . (Substitute Senate Bill No. 5182), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.

(((5) $172,000 of the highway safety account--state appropriation is provided solely for the implementation of chapter . . . (Senate Bill No. 5775), Laws of 2013 (veterans/drivers' licenses). If chapter . . . (Senate Bill No. 5775), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
(6) $652,000)) (8) $289,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Second Engrossed Substitute Senate Bill No. 5785), Laws of ((2013)) 2014 (license plates). If chapter . . . (Second Engrossed Substitute Senate Bill No. 5785), Laws of ((2013)) 2014 is not enacted by June 30, ((2013)) 2014, the amount provided in this subsection lapses.

(((7) $78,000 of the motor vehicle account--state appropriation and $3,707,000 of the highway safety account--state appropriation are provided solely for the implementation of chapter . . . (Engrossed Substitute Senate Bill No. 5857), Laws of 2013 (vehicle-related fees). If chapter . . . (Engrossed Substitute Senate Bill No. 5857), Laws of 2013 is not enacted by June 30, 2013, the amount provided in this subsection lapses.
(8))) (9) The appropriation in this section reflects the department charging an amount sufficient to cover the full cost of providing the data requested under RCW 46.12.630(1)(b).

((~~(9)~~)) (10)(a) The department must convene a work group to examine the use of parking placards and special license plates for persons with disabilities and develop a strategic plan for ending any abuse. In developing this plan, the department must work with the department of health, disabled citizen advocacy groups, and representatives from local government.

(b) The work group must be composed of no more than two representatives from each of the entities listed in (a) of this subsection. The work group may, when appropriate, consult with any other public or private entity in order to complete the strategic plan.

(i) Oversight measures to ensure that parking placards and special license plates for persons with disabilities are being properly issued, including: (A) The entity responsible for coordinating a randomized review of applications for special parking privileges; (B) a volunteer panel of medical professionals to conduct such reviews; (C) a means to protect the anonymity of both the medical professional conducting a review and the medical professional under review; (D) a means to protect the privacy of applicants by removing any personally identifiable information; and (E) possible sanctions against a medical professional for repeated improper issuances of parking placards or special license plates for persons with disabilities, including those sanctions listed in chapter 18.130 RCW; and

(ii) The creation of a publicly accessible system in which the validity of parking placards and special license plates for persons with disabilities may be verified. This system must not allow the public to access any personally identifiable information or protected health information of a person who has been issued a parking placard or special license plate.

(d) The work group must convene by July 1, 2013, and terminate by December 1, 2013.

(e) By December 1, 2013, the work group must deliver to the legislature and the appropriate legislative committees the strategic plan required under this subsection, together with its findings, recommendations, and any necessary draft legislation in order to implement the strategic plan.

((~~(10)~~)) (11) $3,082,000 of the highway safety account--state appropriation is provided solely for exam and licensing activities, including the workload associated with providing driver record abstracts, and is subject to the following additional conditions and limitations:

(a) The department may furnish driving record abstracts only to those persons or entities expressly authorized to receive the abstracts under Title 46 RCW;

(b) The department may furnish driving record abstracts only for an amount that does not exceed the specified fee amounts in RCW 46.52.130 (2)(e)(v) and (4); and

(c) The department may not enter into a contract, or otherwise participate in any arrangement, with a third party or other state agency for any service that results in an additional cost, in excess of the fee amounts specified in RCW 46.52.130 (2)(e)(v) and (4), to statutorily authorized persons or entities purchasing a driving record abstract.

      (12) $229,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 (ferry vessel replacement). If chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (13) $96,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed Second Substitute House Bill No. 1902), Laws of 2014 (intermittent-use trailer license plates). If chapter . . . (Engrossed Second Substitute House Bill No. 1902), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (14) $42,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2100), Laws of 2014 (Seattle University license plates). If chapter . . . (House Bill No. 2100), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (15) $46,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2700), Laws of 2014 (breast cancer awareness license plates). If chapter . . . (House Bill No. 2700), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (16) $42,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Engrossed House Bill No. 2752), Laws of 2014 (Washington state tree license plates). If chapter . . . (Engrossed House Bill No. 2752), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (17) $32,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (House Bill No. 2741), Laws of 2014 (initial vehicle registration). If chapter . . . (House Bill No. 2741), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (18) Within existing resources, the department must convene a work group that includes, at a minimum, representatives from the department of transportation, the trucking industry, manufacturers of compressed natural gas and liquefied natural gas, and any other stakeholders as deemed necessary, for the following purposes:
      (a) To evaluate the annual license fee in lieu of fuel tax under RCW 82.38.075 to determine a fee that more closely represents the average consumption of vehicles by weight and to make recommendations to the transportation committees of the legislature by December 1, 2014, on an updated fee schedule; and
      (b) To develop a transition plan to move vehicles powered by liquefied natural gas and compressed natural gas from the annual license fee in lieu of fuel tax to the fuel tax under RCW 82.38.030. The transition plan must incorporate stakeholder feedback and must include draft legislation and cost and revenue estimates. The transition plan must be submitted to the transportation committees of the legislature by December 1, 2015.
      (c) This subsection takes effect if both chapter . . . (Engrossed Substitute Senate Bill No. 6440), Laws of 2014 (compressed natural gas and liquefied natural gas) and chapter . . . (Substitute House Bill No. 2753), Laws of 2014 (compressed natural gas and liquefied natural gas) are not enacted by June 30, 2014.
      (19) $36,000 of the motor vehicle account--state appropriation is provided solely for the implementation of chapter . . . (Substitute Senate Bill No. 5467), Laws of 2014 (vehicle owner list furnishment requirements). If chapter . . . (Substitute Senate Bill No. 5467), Laws of 2014 is not enacted by June 30, 2014, the amount provided in this subsection lapses.
      (20) The department must convene a work group to study the issue of regulating tow truck operators that are not licensed as registered tow truck operators under chapter 46.55 RCW. The work group must examine the advisability of regulating such operators, including any potential benefits to public safety, and possible methodologies for accomplishing this regulation. The work group must include the department, representatives of the Washington state patrol, organized groups of registered tow truck operators, and automobile clubs. The work group may also include hulk haulers, wreckers, transporters, and other stakeholders relating to the issue of unregulated towing for monetary compensation. The work group shall convene as necessary and report its recommendations and draft legislation to the transportation committees of the legislature by December 1, 2014.
      (21) The department when modernizing its computer systems must place personal and company data elements in separate data fields to allow the department to select discrete data elements when providing information or data to persons or entities outside the department. This requirement must be included as part of the systems design in the department's business and technology modernization. A person's photo, social security number, or medical information must not be made available through public disclosure or data being provided under RCW 46.12.630 or 46.12.635.

Sec. 209. 2013 c 306 s 209 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-TOLL OPERATIONS AND MAINTENANCE‑-PROGRAM B

High-Occupancy Toll Lanes Operations Account‑-State

Appropriation.......................................................... (($1,851,000))

..................................................................................... $1,942,000

Motor Vehicle Account‑-State Appropriation.............. (($509,000))

........................................................................................ $514,000

State Route Number 520 Corridor Account‑-State

Appropriation........................................................ (($32,419,000))

................................................................................... $34,267,000

State Route Number 520 Civil Penalties Account‑-State

Appropriation.......................................................... (($4,169,000))

..................................................................................... $4,156,000

Tacoma Narrows Toll Bridge Account‑-State

Appropriation........................................................ (($23,730,000))

................................................................................... $25,007,000

Puget Sound Ferry Operations Account--State

Appropriation.................................................................. $250,000

Interstate 405 Express Toll Lanes Operations
Account--State Appropriation....................................... $2,019,000

TOTAL APPROPRIATION.................................. (($62,928,000))

................................................................................... $68,155,000

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

(1)(a) The legislature finds that the department's tolling division has expanded greatly in recent years to address the demands of administering several newly tolled facilities using emerging toll collection technologies. The legislature intends for the department to continue its good work in administering the tolled facilities of the state, while at the same time implementing controls and processes to ensure the efficient and judicious administration of toll payer dollars.

(b) The legislature finds that the department has undertaken a cost-of-service study in the winter and spring of 2013 for the purposes of identifying in detail the costs of operating and administering tolling on state route number 520, state route number 167 high-occupancy toll lanes, and the Tacoma Narrows bridge. The purpose of the study is to provide results to establish a baseline by which future activity may be compared and opportunities identified for cost savings and operational efficiencies. In addition, the legislature finds that the state auditor has undertaken a performance audit of the department's contract for the customer service center and back office processing of tolling transactions. The audit findings, which are expected to include lessons learned, are due in late spring 2013.

(c) Using the results of the cost-of-service study and the state audit as a basis, the department shall conduct a review of operations using lean management principles in order to eliminate inefficiencies and redundancies, incorporate lessons learned, and identify opportunities to conduct operations more efficiently and effectively. Within current statutory and budgetary tolling policy, the department shall use the results of the review to improve operations in order to conduct toll operations within the appropriations provided in subsections (2) through (4) of this section. The department shall submit the review, along with the status of and plans for the implementation of review recommendations, to the office of financial management and the house of representatives and senate transportation committees by October 15, 2013.

(2) ((~~$10,482,000~~)) $10,343,000 of the Tacoma Narrows toll bridge account--state appropriation, ((~~$17,056,000~~)) $16,534,000 of the state route number 520 corridor account--state appropriation, ((~~$1,226,000~~)) $1,217,000 of the high-occupancy toll lanes operations account--state appropriation, and ((~~$509,000~~)) $514,000 of the motor vehicle account-- state appropriation are provided solely for nonvendor costs of administering toll operations, including the costs of: Staffing the division, consultants and other personal service contracts required for technical oversight and management assistance, insurance, payments related to credit card processing, transponder purchases and inventory management, facility operations and maintenance, and other miscellaneous nonvendor costs.

(3) ((~~$10,907,000~~)) $11,265,000 of the Tacoma Narrows toll bridge account--state appropriation, ((~~$9,363,000~~)) $9,730,000 of the state route number 520 corridor account--state appropriation, and $625,000 of the high-occupancy toll lanes operations account--state appropriation are provided solely for vendor-related costs of operating tolled facilities, including the costs of: The customer service center; cash collections on the Tacoma Narrows bridge; electronic payment processing; and toll collection equipment maintenance, renewal, and replacement.

(4) $1,300,000 of the Tacoma Narrows toll bridge account--state appropriation and $6,000,000 of the state route number 520 corridor account--state appropriation are provided solely for the purposes of addressing unforeseen operations and maintenance costs on the Tacoma Narrows bridge and the state route number 520 bridge, respectively. The office of financial management shall place the amounts provided in this section, which represent a portion of the required minimum fund balance under the policy of the state treasurer, in unallotted status. The office may release the funds only when it determines that all other funds designated for operations and maintenance purposes have been exhausted.

(5) ((~~$4,169,000~~)) $4,156,000 of the state route number 520 civil penalties account‑-state appropriation and $1,039,000 of the Tacoma Narrows toll bridge account‑-state appropriation are provided solely for expenditures related to the toll adjudication process. The department shall report on the civil penalty process to the office of financial management and the house of representatives and senate transportation committees by the end of each calendar quarter. The reports must include a summary table for each toll facility that includes: The number of notices of civil penalty issued; the number of recipients who pay before the notice becomes a penalty; the number of recipients who request a hearing and the number who do not respond; workload costs related to hearings; the cost and effectiveness of debt collection activities; and revenues generated from notices of civil penalty.

(6) The Tacoma Narrows toll bridge account--state appropriation in this section reflects reductions in management costs of $1,235,000.

(7) The department shall make detailed quarterly expenditure reports available to the transportation commission and to the public on the department's web site using current department resources. The reports must include a summary of toll revenue by facility on all operating toll facilities and high occupancy toll lane systems, and an itemized depiction of the use of that revenue.

(8) The department shall make detailed quarterly reports to the governor and the transportation committees of the legislature on the use of consultants in the tolling program. The reports must include the name of the contractor, the scope of work, the type of contract, timelines, deliverables, any new task orders, and any extensions to existing consulting contracts.

(9)(a) $250,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the development of a plan to integrate and transition customer service, reservation, and payment systems currently provided by the marine division to ferry users into the statewide tolling customer service center.

(b)(i) The department shall develop a plan that addresses:

(A) A phased implementation approach, beginning with "Good To Go" as a payment option for ferry users;

(B) The feasibility, schedule, and cost of creating a single account-based system for toll road and ferry users;

(C) Transitioning customer service currently provided by the marine division to the statewide tolling customer service center; and

(D) Transitioning existing and planned ferry reservation system support from the marine division to the statewide tolling customer service center.

(ii) The plan must be provided to the office of financial management and the transportation committees of the legislature by January 14, 2014.

      (10)(a) $2,019,000 of the Interstate 405 express toll lanes operations account--state appropriation is provided solely for operating and maintenance costs of the Interstate 405 express toll lanes program, including staff costs related to operating an additional toll facility, consulting support for operations, purchase of transponders, costs related to adjudication, credit card fees, printing and postage, and customer service center support. Of the amount provided in this subsection, $519,000 of the Interstate 405 express toll lanes operations account--state appropriation must be placed in unallotted status by the office of financial management until a plan to begin tolling the Interstate 405 express toll lanes during the summer of 2015 is finalized and approved by the office of financial management, in consultation with the chairs and ranking member of the transportation committees of the legislature.
      (b) The funds provided in (a) of this subsection are provided through a transfer from the motor vehicle account--state appropriation in section 407(19) of this act. These funds are a loan to the Interstate 405 express toll lanes operations account--state appropriation, and the legislature assumes that these funds will be reimbursed to the motor vehicle account at a later date when the Interstate 405 express toll lanes are operational.
      (11) $1,060,000 of the Tacoma narrows toll bridge account--state appropriation, $2,003,000 of the state route number 520 corridor account--state appropriation, and $99,000 of the high occupancy toll lanes operations account--state appropriation are provided solely in anticipation of, and to prepare for, the procurement of a new tolling customer service center. Of the amounts provided in this subsection, $480,000 of the Tacoma narrows toll bridge account--state appropriation, $906,000 of the state route number 520 corridor account--state appropriation, and $45,000 of the high occupancy toll lanes operations account--state appropriation must be placed in unallotted status by the office of financial management until a procurement plan is finalized and approved by the office of financial management, in consultation with the chairs and ranking member of the transportation committees of the legislature. Beginning July 1, 2014, the department shall report quarterly to the governor, legislature, and state auditor on: (a) The department's effort to mitigate risk to the state, (b) the development of a request for proposals, and (c) the overall progress towards procuring a new tolling customer service center.

Sec. 210. 2013 c 306 s 210 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-INFORMATION TECHNOLOGY‑-PROGRAM C

Transportation Partnership Account‑-State

Appropriation............................................................... $1,460,000

Motor Vehicle Account‑-State Appropriation......... (($68,773,000))

................................................................................... $65,936,000

Multimodal Transportation Account‑-State

Appropriation............................................................. (($363,000))

..................................................................................... $2,883,000

Transportation 2003 Account (Nickel Account)‑-State

Appropriation............................................................... $1,460,000

Puget Sound Ferry Operations Account--State
Appropriation.................................................................. $263,000

TOTAL APPROPRIATION.................................. (($72,056,000))

................................................................................... $72,002,000

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

(1) $290,000 of the motor vehicle account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

(2) $1,460,000 of the transportation partnership account--state appropriation and $1,460,000 of the transportation 2003 account (nickel account)--state appropriation are provided solely for maintaining the department's project management reporting system.

Sec. 211. 2013 c 306 s 211 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-FACILITY MAINTENANCE, OPERATIONS, AND CONSTRUCTION‑-PROGRAM D--OPERATING

Motor Vehicle Account‑-State Appropriation......... (($26,251,000))

................................................................................... $26,114,000

The appropriation in this section is subject to the following conditions and limitations: $850,000 of the motor vehicle account-- state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

Sec. 212. 2013 c 306 s 212 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-AVIATION‑-PROGRAM F

Aeronautics Account‑-State Appropriation............... ((~~$7,361,000~~))

..................................................................................... $7,909,000

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

TOTAL APPROPRIATION.................................... (($9,511,000))

................................................................................... $10,059,000

The appropriations in this section are subject to the following conditions and limitations: ((~~$3,500,000~~)) $4,065,000 of the aeronautics account--state appropriation is provided solely for airport investment studies and the airport aid grant program, which provides competitive grants to public airports for pavement, safety, maintenance, planning, and security.

Sec. 213. 2013 c 306 s 213 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-PROGRAM DELIVERY MANAGEMENT AND SUPPORT‑-PROGRAM H

Motor Vehicle Account‑-State Appropriation......... (($47,607,000))

................................................................................... $48,687,000

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

Multimodal Transportation Account‑-State

Appropriation.................................................................. $250,000

TOTAL APPROPRIATION.................................. (($48,357,000))

................................................................................... $49,437,000

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

(1) $4,423,000 of the motor vehicle account‑-state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

(2) The real estate services division of the department must recover the cost of its efforts from sale proceeds and fund additional future sales from those proceeds.

(3) The legislature recognizes that the Dryden pit site (WSDOT Inventory Control (IC) No. 2-04-00103) is unused state-owned real property under the jurisdiction of the department, and that the public would benefit significantly from the complete enjoyment of the natural scenic beauty and recreational opportunities available at the site. Therefore, pursuant to RCW 47.12.080, the legislature declares that transferring the property to the department of fish and wildlife for recreational use and fish and wildlife restoration efforts is consistent with the public interest in order to preserve the area for the use of the public and the betterment of the natural environment. The department shall work with the department of fish and wildlife and transfer and convey the Dryden pit site to the department of fish and wildlife as-is for an adjusted fair market value reflecting site conditions, the proceeds of which must be deposited in the motor vehicle fund. The department is not responsible for any costs associated with the cleanup or transfer of this property. This subsection expires June 30, 2014.

(4) The legislature recognizes that the trail known as the Apple Capital Loop, and its extensions, serve to separate motor vehicle traffic from pedestrians and bicyclists, increasing motor vehicle safety on existing state route number 28. Consistent with chapter 47.30 RCW and pursuant to RCW 47.12.080, the legislature declares that transferring portions of WSDOT Inventory Control (IC) Nos. 2-09-04537 and 2-09-04569 to Douglas county and the city of East Wenatchee is consistent with the public interest. The legislature directs the department to transfer the property to Douglas county and the city of East Wenatchee. The department must be paid fair market value for any portions of the transferred real property that is later abandoned, vacated, or ceases to be publicly maintained for trail purposes. Douglas county and the city of East Wenatchee must agree to accept responsibility for trail segments within their respective jurisdictions and sign an agreement with the state that the transfer of these parcels to their respective jurisdictions extinguishes any state obligations to improve, maintain, or be in any way responsible for these assets. This subsection expires June 30, 2014.

(5) The legislature recognizes that the SR 20/Cook Road realignment and extension project in the city of Sedro-Woolley will enhance the state and local highway systems by providing a more direct route from state route number 20 and state route number 9 to Interstate 5, and will reduce traffic on state route number 20 and state route number 9, improving the capacity of each route. Furthermore, the legislature declares that certain portions of the department's property held for highway purposes located primarily to the north and west of state route number 20, between state route number 20 to the south and F and S Grade Road to the north, in the incorporated limits of Sedro-Woolley in Skagit county, can help facilitate completion of the project. Therefore, consistent with RCW 47.12.063, 47.12.080, and 47.12.120, it is the intent of the legislature that the department sell, transfer, or lease, as appropriate, to the city of Sedro-Woolley only those portions of the property necessary to construct the project, including necessary staging areas. However, any staging areas should revert to the department within three years of completion of the project.

      (6) Within the amounts provided in this section, the department shall create a quality assurance position. This position must provide independent project quality assurance validation and ensure that quality assurance audit functions are accountable at the highest level of the organization.
      (7) To maximize available resources, the department's efforts to eliminate fish passage barriers caused by state roads and highways must be based on the principle of maximizing habitat recovery through a coordinated investment strategy that, to the maximum extent practical and allowable, prioritizes opportunities: To correct multiple fish barriers in whole streams rather than through individual, isolated projects; to coordinate with other entities sponsoring barrier removals, such as regional fisheries enhancement groups, in a manner that achieves the greatest cost savings to all parties; and to eliminate barriers located furthest downstream in a stream system. The department must also recognize that many of the barriers owned by the state are located in the same stream systems as barriers that are owned by cities and counties with limited financial resources for correction and that state/local partnership opportunities should be sought to address these barriers. This subsection takes effect if chapter . . . (Second Substitute House Bill No. 2251), Laws of 2014 is not enacted by June 30, 2014.
      (8) $1,453,000 of the motor vehicle account--state appropriation is provided solely to support increased departmental efforts to dispose of surplus property as directed in subsection (2) of this section. These additional funds are expected to result in up to $5,000,000 per fiscal biennium in additional revenues through increasing the sale of surplus property. By December 1, 2014, the department shall report to the governor and the chairs and ranking members of the senate and house of representatives transportation committees on the number of surplus property parcels sold and the amount of revenue generated from those sales during 2014.

Sec. 214. 2013 c 306 s 214 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-ECONOMIC PARTNERSHIPS‑-PROGRAM K

Motor Vehicle Account‑-State Appropriation.............. (($570,000))

........................................................................................ $589,000

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

(1) The legislature finds that the efforts started in the 2011-2013 fiscal biennium regarding the transition to a road usage charge system represent an important first step in the policy and conceptual development of potential alternative systems to fund transportation projects, but that the governance for the development needs clarification. The legislature also finds that significant amounts of research and public education are occurring in similar efforts in several states and that these efforts can and should be leveraged to advance the evaluation in Washington. The legislature intends, therefore, that the transportation commission and its staff lead the policy development of the business case for a road usage charge system, with the goal of providing the business case to the governor and the legislative committees of the legislature in time for inclusion in the 2014 supplemental omnibus transportation appropriations act. The legislature intends for additional oversight in the business case development, with guidance from a steering committee as provided in chapter 86, Laws of 2012 for the transportation commission, augmented with participation by the joint transportation committee. The legislature further intends that, through the economic partnerships program, the department continue to address administrative, technical, and conceptual operational issues related to road usage charge systems, and that the department serve as a resource for information gleaned from other states on this topic for the transportation commission's efforts.

(2) The economic partnerships program must continue to explore retail partnerships at state-owned park-and-ride facilities, as authorized in RCW 47.04.295.

(3) The department, in collaboration with the transportation commission, shall work with the office of the state treasurer and the state's bond counsel to explore legal approaches for ensuring that any reduction, refunding, crediting, or repeal of the motor vehicle fuel tax, in whole or in part, can be accomplished without unlawfully impairing the legal rights of motor vehicle fuel tax bond holders. The results of this work must be shared with the transportation committees of the legislature and the office of financial management by September 1, 2014.
(4) $21,000 of the motor vehicle account--state appropriation is provided solely as matching funds for the department to partner with other transportation agencies located in the western region of North America to develop strategies and methods for reporting, collecting, crediting, and remitting road usage charges resulting from inter- jurisdictional travel. At least one partnering jurisdiction must share a common border with Washington. The results of this work must be reported to the governor, the transportation commission, and the transportation committees of the legislature by September 1, 2014.

Sec. 215. 2013 c 306 s 215 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-HIGHWAY MAINTENANCE‑-PROGRAM M

Highway Safety Account‑-State Appropriation........... $10,000,000

Motor Vehicle Account‑-State Appropriation

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

(1) (($377,779,000 of the motor vehicle account--state appropriation and $10,000,000 of the highway safety account--state appropriation are provided solely for the maintenance program to achieve specific levels of service on the thirty maintenance targets listed by statewide priority in LEAP Transportation Document 2013-4 as developed April 23, 2013. Beginning in February 2014, the department shall report to the legislature annually on its updated maintenance accountability process targets and whether or not the department was able to achieve its targets.
(2) $8,450,000)) $10,910,000 of the motor vehicle account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

((~~(3) $1,305,000~~)) (2) $2,605,000 of the motor vehicle account-- state appropriation is provided solely for utility fees assessed by local governments as authorized under RCW 90.03.525 for the mitigation of storm water runoff from state highways.

((~~(4)~~)) (3) The department shall submit a budget decision for the 2014 legislative session package that details all costs associated with utility fees assessed by local governments as authorized under RCW 90.03.525.

((~~(5)~~)) (4) $50,000 of the motor vehicle account--state appropriation is provided solely for clearing and pruning dangerous trees along state route number 542 between mile markers 43 and 48 to prevent safety hazards and delays.

((~~(6)~~)) (5) $2,277,000 of the motor vehicle account--state appropriation is provided solely to replace or rehabilitate critical equipment needed to perform snow and ice removal activities and roadway maintenance. These funds may not be used to purchase passenger cars as defined in RCW 46.04.382.

Sec. 216. 2013 c 306 s 216 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-TRAFFIC OPERATIONS‑-PROGRAM Q‑- OPERATING

Motor Vehicle Account‑-State Appropriation......... ((~~$50,504,000~~))

................................................................................... $50,055,000

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

Motor Vehicle Account‑-Private/Local Appropriation...... $250,000

TOTAL APPROPRIATION.................................. ((~~$52,804,000~~))

................................................................................... $52,355,000

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

(1) $6,000,000 of the motor vehicle account‑-state appropriation is provided solely for low-cost enhancements. The department shall give priority to low-cost enhancement projects that improve safety or provide congestion relief. The department shall prioritize low-cost enhancement projects on a statewide rather than regional basis. By September 1st of each even-numbered year, the department shall provide a report to the legislature listing all low-cost enhancement projects prioritized on a statewide rather than regional basis completed in the prior year.

(2) $9,000,000 of the motor vehicle account--state appropriation is provided solely for the department's incident response program.

(3) During the 2013-2015 fiscal biennium, the department shall continue a pilot program that expands private transportation providers' access to high occupancy vehicle lanes. Under the pilot program, when the department reserves a portion of a highway based on the number of passengers in a vehicle, the following vehicles must be authorized to use the reserved portion of the highway if the vehicle has the capacity to carry eight or more passengers, regardless of the number of passengers in the vehicle: (a) Auto transportation company vehicles regulated under chapter 81.68 RCW; (b) passenger charter carrier vehicles regulated under chapter 81.70 RCW, except marked or unmarked stretch limousines and stretch sport utility vehicles as defined under department of licensing rules; (c) private nonprofit transportation provider vehicles regulated under chapter 81.66 RCW; and (d) private employer transportation service vehicles. For purposes of this subsection, "private employer transportation service" means regularly scheduled, fixed-route transportation service that is offered by an employer for the benefit of its employees. Nothing in this subsection is intended to authorize the conversion of public infrastructure to private, for-profit purposes or to otherwise create an entitlement or other claim by private users to public infrastructure.

(4) The department shall work with the cities of Lynnwood and Edmonds to provide traffic light synchronization on state route number 524.

((~~(6)~~)) (5) The department, in consultation with the Washington state patrol, must continue a pilot program for the state patrol to issue infractions based on information from automated traffic safety cameras in roadway construction zones on state highways. For the purpose of this pilot program, during the 2013-2015 fiscal biennium, a roadway construction zone includes areas where public employees or private contractors may be present or where a driving condition exists that would make it unsafe to drive at higher speeds, such as, when the department is redirecting or realigning lanes on any public roadway pursuant to ongoing construction. The department shall use the following guidelines to administer the program:

(a) Automated traffic safety cameras may only take pictures of the vehicle and vehicle license plate and only while an infraction is occurring. The picture must not reveal the face of the driver or of passengers in the vehicle;

(b) The department shall plainly mark the locations where the automated traffic safety cameras are used by placing signs on locations that clearly indicate to a driver that he or she is entering a roadway construction zone where traffic laws are enforced by an automated traffic safety camera;

(c) Notices of infractions must be mailed to the registered owner of a vehicle within fourteen days of the infraction occurring;

(d) The owner of the vehicle is not responsible for the violation if the owner of the vehicle, within fourteen days of receiving notification of the violation, mails to the patrol, a declaration under penalty of perjury, stating that the vehicle involved was, at the time, stolen or in the care, custody, or control of some person other than the registered owner, or any other extenuating circumstances;

(e) For purposes of the 2013-2015 fiscal biennium pilot program, infractions detected through the use of automated traffic safety cameras are not part of the registered owner's driving record under RCW 46.52.101 and 46.52.120. Additionally, infractions generated by the use of automated traffic safety cameras must be processed in the same manner as parking infractions for the purposes of RCW 3.50.100, 35.20.220, 46.16A.120, and 46.20.270(3). However, the amount of the fine issued under this subsection ((~~(6)~~)) (5) for an infraction generated through the use of an automated traffic safety camera is one hundred thirty-seven dollars. The court shall remit thirty-two dollars of the fine to the state treasurer for deposit into the state patrol highway account; and

(f) If a notice of infraction is sent to the registered owner and the registered owner is a rental car business, the infraction must be dismissed against the business if it mails to the patrol, within fourteen days of receiving the notice, a declaration under penalty of perjury of the name and known mailing address of the individual driving or renting the vehicle when the infraction occurred. If the business is unable to determine who was driving or renting the vehicle at the time the infraction occurred, the business must sign a declaration under penalty of perjury to this effect. The declaration must be mailed to the patrol within fourteen days of receiving the notice of traffic infraction. Timely mailing of this declaration to the issuing agency relieves a rental car business of any liability under this section for the notice of infraction. A declaration form suitable for this purpose must be included with each automated traffic safety camera infraction notice issued, along with instructions for its completion and use.

((~~(7)~~)) (6) $102,000 of the motor vehicle account--state appropriation is provided solely to replace or rehabilitate critical equipment needed to perform traffic control. These funds may not be used to purchase passenger cars as defined in RCW 46.04.382.

Sec. 217. 2013 c 306 s 217 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-TRANSPORTATION MANAGEMENT AND SUPPORT‑-PROGRAM S

Motor Vehicle Account‑-State Appropriation......... (($27,281,000))

................................................................................... $27,079,000

Motor Vehicle Account‑-Federal Appropriation............ (($30,000))

........................................................................................ $280,000

Multimodal Transportation Account‑-State

Appropriation............................................................. (($973,000))

..................................................................................... $1,131,000

TOTAL APPROPRIATION.................................. (($28,284,000))

................................................................................... $28,490,000
The appropriations in this section are subject to the following conditions and limitations: $200,000 of the motor vehicle account-- state appropriation is provided solely for enhanced disadvantaged business enterprise outreach to increase the pool of disadvantaged businesses available for department contracts. The department must submit a status report on disadvantaged business enterprise outreach to the transportation committees of the legislature by November 15, 2014.

Sec. 218. 2013 c 306 s 218 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-TRANSPORTATION PLANNING, DATA, AND RESEARCH‑-PROGRAM T

Motor Vehicle Account‑-State Appropriation......... (($20,109,000))

................................................................................... $19,818,000

Motor Vehicle Account‑-Federal Appropriation..... (($24,885,000))

................................................................................... $26,085,000

Multimodal Transportation Account‑-State

Appropriation.................................................................. $662,000

Multimodal Transportation Account‑-Federal

Appropriation............................................................... $2,809,000

Multimodal Transportation Account‑-Private/Local

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

TOTAL APPROPRIATION.................................. (($48,565,000))

................................................................................... $49,474,000

The appropriations in this section are subject to the following conditions and limitations: ((~~(1)~~)) Within available resources, the department must collaborate with the affected metropolitan planning organizations, regional transportation planning organizations, transit agencies, and private transportation providers to develop a plan to reduce vehicle demand, increase public transportation options, and reduce vehicle miles traveled on corridors affected by growth at Joint Base Lewis-McChord.

Sec. 219. 2013 c 306 s 219 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-CHARGES FROM OTHER AGENCIES‑- PROGRAM U

Motor Vehicle Account‑-State Appropriation......... (($81,628,000))

................................................................................... $74,198,000

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

Multimodal Transportation Account--State

Appropriation............................................................... (($40,000))

..................................................................................... $3,068,000

TOTAL APPROPRIATION.................................. (($82,068,000))

................................................................................... $77,666,000

The appropriations in this section are subject to the following conditions and limitations: The department of enterprise services must provide a detailed accounting of the revenues and expenditures of the self-insurance fund to the transportation committees of the legislature on December 31st and June 30th of each year.

Sec. 220. 2013 c 306 s 220 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-PUBLIC TRANSPORTATION‑-PROGRAM V

State Vehicle Parking Account‑-State Appropriation... (($452,000))

........................................................................................ $754,000

Regional Mobility Grant Program Account‑-State

Appropriation........................................................ (($49,948,000))

................................................................................... $51,111,000

Rural Mobility Grant Program Account‑-State

Appropriation............................................................. $17,000,000

Multimodal Transportation Account‑-State

Appropriation........................................................ (($39,057,000))

................................................................................... $39,325,000

Multimodal Transportation Account‑-Federal

Appropriation............................................................... $3,280,000

Motor Vehicle Account--Federal Appropriation............... $160,000

TOTAL APPROPRIATION................................ (($109,737,000))

................................................................................. $111,630,000

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

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

(a) $5,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to nonprofit providers of special needs transportation. Grants for nonprofit providers must be based on need, including the availability of other providers of service in the area, efforts to coordinate trips among providers and riders, and the cost effectiveness of trips provided.

(b) $19,500,000 of the multimodal transportation account--state appropriation is provided solely for grants to transit agencies to transport persons with special transportation needs. To receive a grant, the transit agency must, to the greatest extent practicable, have a maintenance of effort for special needs transportation that is no less than the previous year's maintenance of effort for special needs transportation. Grants for transit agencies must be prorated based on the amount expended for demand response service and route deviated service in calendar year 2011 as reported in the "Summary of Public Transportation - 2011" published by the department of transportation. No transit agency may receive more than thirty percent of these distributions.

(2) $17,000,000 of the rural mobility grant program account--state appropriation is provided solely for grants to aid small cities in rural areas as prescribed in RCW 47.66.100.

(3)(a) $6,000,000 of the multimodal transportation account--state appropriation is provided solely for a vanpool grant program for: (a) Public transit agencies to add vanpools or replace vans; and (b) incentives for employers to increase employee vanpool use. The grant program for public transit agencies will cover capital costs only; operating costs for public transit agencies are not eligible for funding under this grant program. Additional employees may not be hired from the funds provided in this section for the vanpool grant program, and supplanting of transit funds currently funding vanpools is not allowed. The department shall encourage grant applicants and recipients to leverage funds other than state funds.

(b) At least $1,600,000 of the amount provided in this subsection must be used for vanpool grants in congested corridors.

(c) $520,000 of the amount provided in this subsection is provided solely for the purchase of additional vans for use by vanpools serving ((~~soldiers and civilian employees at~~)) or traveling through the Joint Base Lewis-McChord I-5 corridor between mile post 116 and 127.

(4) ((~~$9,948,000~~)) $11,111,000 of the regional mobility grant program account--state appropriation is reappropriated and provided solely for the regional mobility grant projects identified in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS - Public Transportation - Program (V) as developed ((~~April 23, 2013~~)) March 10, 2014.

(5)(a) $40,000,000 of the regional mobility grant program account-- state appropriation is provided solely for the regional mobility grant projects identified in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS - Public Transportation - Program (V) as developed ((~~April 23, 2013~~)) March 10, 2014. The department shall review all projects receiving grant awards under this program at least semiannually to determine whether the projects are making satisfactory progress. Any project that has been awarded funds, but does not report activity on the project within one year of the grant award, must be reviewed by the department to determine whether the grant should be terminated. The department shall promptly close out grants when projects have been completed, and any remaining funds must be used only to fund projects identified in the LEAP transportation document referenced in this subsection. The department shall provide annual status reports on December 15, 2013, and December 15, 2014, to the office of financial management and the transportation committees of the legislature regarding the projects receiving the grants. It is the intent of the legislature to appropriate funds through the regional mobility grant program only for projects that will be completed on schedule. A grantee may not receive more than twenty-five percent of the amount appropriated in this subsection. The department shall not approve any increases or changes to the scope of a project for the purpose of a grantee expending remaining funds on an awarded grant.

(b) In order to be eligible to receive a grant under (a) of this subsection during the 2013-2015 fiscal biennium, a transit agency must establish a process for private transportation providers to apply for the use of park and ride facilities. For purposes of this subsection, (i) "private transportation provider" means: An auto transportation company regulated under chapter 81.68 RCW; a passenger charter carrier regulated under chapter 81.70 RCW, except marked or unmarked stretch limousines and stretch sport utility vehicles as defined under department of licensing rules; a private nonprofit transportation provider regulated under chapter 81.66 RCW; or a private employer transportation service provider; and (ii) "private employer transportation service" means regularly scheduled, fixed-route transportation service that is offered by an employer for the benefit of its employees.

(6) Funds provided for the commute trip reduction (CTR) program may also be used for the growth and transportation efficiency center program.

(7) ((~~$6,122,000~~)) $6,424,000 of the total appropriation in this section is provided solely for CTR grants and activities. Of this amount:

(a) $3,900,000 of the multimodal transportation account--state appropriation is provided solely for grants to local jurisdictions, selected by the CTR board, for the purpose of assisting employers meet CTR goals;

(b) $1,770,000 of the multimodal transportation account--state appropriation is provided solely for state costs associated with CTR. The department shall develop more efficient methods of CTR assistance and survey procedures; and

(c) ((~~$452,000~~)) $754,000 of the state vehicle parking account-- state appropriation is provided solely for CTR-related expenditures, including all expenditures related to the guaranteed ride home program and the STAR pass program.

(8) An affected urban growth area that has not previously implemented a commute trip reduction program as of the effective date of this section is exempt from the requirements in RCW 70.94.527.

(9) $200,000 of the multimodal transportation account--state appropriation is contingent on the timely development of an annual report summarizing the status of public transportation systems as identified under RCW 35.58.2796.

(10) $160,000 of the motor vehicle account--federal appropriation is provided solely for King county metro to study demand potential for a state route number 18 and Interstate 90 park and ride location, to size the facilities appropriately, to perform site analysis, and to develop preliminary design concepts. When studying potential park and ride locations pursuant to this subsection, King county metro must take into consideration the effect of the traffic using the weigh station at the Interstate 90 and state route number 18 interchange at exit 25 and, to the maximum extent practicable, choose a park and ride location that minimizes traffic impacts for the Interstate 90 and state route number 18 interchange and the weigh station.

Sec. 221. 2013 c 306 s 221 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-MARINE‑-PROGRAM X

Puget Sound Ferry Operations Account‑-State

Appropriation...................................................... (($485,076,000))

................................................................................. $483,404,000

Puget Sound Ferry Operations Account‑-Private/Local

Appropriation.................................................................. $121,000

TOTAL APPROPRIATION................................ (($485,197,000))

................................................................................. $483,525,000

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

(1) The office of financial management budget instructions require agencies to recast enacted budgets into activities. The Washington state ferries shall include a greater level of detail in its 2013-2015 supplemental and 2015-2017 omnibus transportation appropriations act requests, as determined jointly by the office of financial management, the Washington state ferries, and the transportation committees of the legislature. This level of detail must include the administrative functions in the operating as well as capital programs.

(2) Until a reservation system is operational on the San Juan islands inter-island route, the department shall provide the same priority loading benefits on the San Juan islands inter-island route to home health care workers as are currently provided to patients traveling for purposes of receiving medical treatment.

(3) For the 2013-2015 fiscal biennium, the department may enter into a distributor controlled fuel hedging program and other methods of hedging approved by the fuel hedging committee.

(4) ((~~$112,342,000~~)) $113,157,000 of the Puget Sound ferry operations account--state appropriation is provided solely for auto ferry vessel operating fuel in the 2013-2015 fiscal biennium, which reflect cost savings from a reduced biodiesel fuel requirement and, therefore, are contingent upon the enactment of section 701 ((~~of this act~~)), chapter 306, Laws of 2013. The amount provided in this subsection represent the fuel budget for the purposes of calculating any ferry fare fuel surcharge. The department shall develop a fuel reduction plan to be submitted as part of its 2014 supplemental budget proposal. The plan must include fuel saving proposals, such as vessel modifications, vessel speed reductions, and changes to operating procedures, along with anticipated fuel saving estimates.

(5) $100,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the department's compliance with its national pollution discharge elimination system permit.

(6) When purchasing uniforms that are required by collective bargaining agreements, the department shall contract with the lowest cost provider.

(7) $3,049,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the operating program share of the $7,259,000 in lease payments for the ferry division's headquarters building. Consistent with the 2012 facilities oversight plan, the department shall strive to consolidate office space in downtown Seattle by the end of 2015. The department shall consider renewing the lease for the ferry division's current headquarters building only if the lease rate is reduced at least fifty percent and analysis shows that this is the least cost and risk option for the department. Consolidation with other divisions or state agencies, or a reduction in leased space, must also be considered as part of any headquarters lease renewal analysis.

(8) $5,000,000 of the Puget Sound ferry operations account--state appropriation is provided solely for the purchase of a 2013-2015 marine insurance policy. Within this amount, the department is expected to purchase a policy with the lowest deductible possible, while maintaining at least existing coverage levels for ferry vessels, and providing coverage for all terminals.

(9) Within existing resources, the department must evaluate the feasibility of using re-refined used motor oil processed in Washington state as a ferry fuel source. The evaluation must include, but is not limited to, research on existing entities currently using the process for re-refined fuel, any required combustible engine modifications, additional needed equipment on the vessels or fueling locations, cost analysis, compatibility with B-5 blended diesel, and meeting engine performance specifications. The department must establish an evaluation group that includes, but is not limited to, persons experienced in the re-refined motor oil industry. The department must deliver a report containing the results of the evaluation to the transportation committees of the legislature and the office of financial management by December 1, 2014.
(10) $71,000 of the Puget Sound ferry operations account--state appropriation is provided solely for one traffic attendant for ferry terminal traffic control at the Fauntleroy ferry terminal.

Sec. 222. 2013 c 306 s 222 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-RAIL‑-PROGRAM Y‑-OPERATING

Multimodal Transportation Account‑-State

Appropriation........................................................ (($32,924,000))

................................................................................... $46,026,000

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

(1) ((~~$27,319,000~~)) $40,289,000 of the multimodal transportation account--state appropriation is provided solely for ((~~the Amtrak service contract and Talgo maintenance contract associated with providing~~)) operating and maintaining state-supported passenger rail service. In recognition of the increased costs the state is expected to absorb due to changes in federal law, the department is directed to analyze the Amtrak contract proposal and find cost saving alternatives. The department shall report to the transportation committees of the legislature before the 2014 regular legislative session on its revisions to the Amtrak contract, including a review of the appropriate costs within the contract for concession services, policing, host railroad incentives, and station services and staffing needs. Within thirty days of each annual cost/revenue reconciliation under the Amtrak service contract, the department shall report any changes that would affect the state subsidy amount appropriated in this subsection. Through a competitive process, the department may contract with a private entity for services related to operations and maintenance of the Amtrak Cascades route, including, but not limited to, concession services.

(2) Amtrak Cascades runs may not be eliminated.

(3) The department shall continue a pilot program by partnering with the travel industry on the Amtrak Cascades service between Vancouver, British Columbia, and Seattle to test opportunities for increasing ridership, maximizing farebox recovery, and stimulating private investment. The pilot program must run from December 31, 2013, to December 31, 2014, and evaluate seasonal differences in the program and the effect of advertising. The department may offer to Washington universities an opportunity for business students to work as interns on the analysis of the pilot program process and results. The department shall report on the results of the pilot program to the office of financial management and the legislature by January 31, 2015.

(4) $150,000 of the multimodal transportation account--state appropriation is provided solely for the department to develop an inventory of short line rail infrastructure that can be used to support a data-driven approach to identifying system needs. The department shall work with short line rail owners and operators within the state, provide status updates periodically to the joint transportation committee, submit a progress report of its findings to the transportation committees of the legislature and the office of financial management by December 15, 2014, submit a preliminary report of key findings and recommendations to the transportation committees of the legislature and the office of financial management by March 1, 2015, and submit a final report to the transportation committees of the legislature and the office of financial management by June 30, 2015.

Sec. 223. 2013 c 306 s 223 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-LOCAL PROGRAMS‑-PROGRAM Z‑- OPERATING

Motor Vehicle Account‑-State Appropriation........... (($8,737,000))

..................................................................................... $8,672,000

Motor Vehicle Account‑-Federal Appropriation............ $2,567,000

TOTAL APPROPRIATION.................................. (($11,304,000))

................................................................................... $11,239,000

TRANSPORTATION AGENCIES—CAPITAL

Sec. 301. 2013 c 306 s 301 (uncodified) is amended to read as follows:

FOR THE FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

Freight Mobility Investment Account--State

Appropriation........................................................ (($11,794,000))

................................................................................... $11,930,000

Freight Mobility Multimodal Account--State

Appropriation.......................................................... (($9,736,000))

..................................................................................... $9,826,000

Freight Mobility Multimodal Account--Private/Local

Appropriation............................................................... $1,320,000

Highway Safety Account--State Appropriation........ (($2,450,000))

..................................................................................... $2,606,000

Motor Vehicle Account--State Appropriation ................... $84,000

Motor Vehicle Account--Federal Appropriation....... (($3,250,000))

..................................................................................... $5,750,000

TOTAL APPROPRIATION.................................. (($28,634,000))

................................................................................... $31,516,000

((The appropriations in this section are subject to the following conditions and limitations: Except as provided otherwise in this section, the total appropriation in this section is provided solely for the implementation of chapter . . . (Substitute House Bill No. 1256), Laws of 2013 (addressing project selection by the freight mobility strategic investment board). If chapter . . . (Substitute House Bill No. 1256), Laws of 2013 is not enacted by June 30, 2013, the amounts provided in this section lapse.))

Sec. 302. 2013 c 306 s 302 (uncodified) is amended to read as follows:

FOR THE WASHINGTON STATE PATROL

State Patrol Highway Account‑-State Appropriation (($1,926,000))

..................................................................................... $2,661,000

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

(1) $200,000 of the state patrol highway account--state appropriation is provided solely for unforeseen emergency repairs on facilities.

(2) $426,000 of the state patrol highway account--state appropriation is provided solely for the replacement of the roofs of the Marysville district office and vehicle inspection building and Spokane East office.

(3) $450,000 of the state patrol highway account--state appropriation is provided solely for upgrades to scales at Ridgefield Port of Entry, Dryden, South Pasco, Deer Park, and Kelso required to meet current certification requirements.

(4) ((~~$850,000~~)) $1,200,000 of the state patrol highway account-- state appropriation is provided solely for the replacement of the damaged and unrepairable scale house at the Everett southbound I-5 weigh scales, including equipment, weigh-in-motion technology, and an ALPR camera.

(5) The Washington state patrol, in cooperation with the Washington state department of transportation, must study the federal funding options available for weigh station construction and improvements on the national highway system. A study report must be provided by July 1, 2014, to the office of financial management and the transportation committees of the legislature with recommendations on utilizing federal funds for weigh station projects.

Sec. 303. 2013 c 306 s 303 (uncodified) is amended to read as follows:

FOR THE COUNTY ROAD ADMINISTRATION BOARD

Rural Arterial Trust Account‑-State

Appropriation........................................................ (($35,894,000))

................................................................................... $57,394,000

Highway Safety Account‑-State Appropriation........... $10,000,000

Motor Vehicle Account‑-State Appropriation................... $706,000

County Arterial Preservation Account‑-State

Appropriation........................................................ (($30,000,000))

................................................................................... $32,000,000

TOTAL APPROPRIATION.................................. (($76,600,000))

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

Sec. 304. 2013 c 306 s 304 (uncodified) is amended to read as follows:

FOR THE TRANSPORTATION IMPROVEMENT BOARD

Small City Pavement and Sidewalk Account‑-State

Appropriation.......................................................... (($3,500,000))

..................................................................................... $5,250,000

Highway Safety Account‑-State Appropriation........... $10,000,000

Transportation Improvement Account‑-State

Appropriation...................................................... (($174,225,000))

................................................................................. $231,851,000

TOTAL APPROPRIATION................................ (($187,725,000))

................................................................................. $247,101,000

The appropriations in this section are subject to the following conditions and limitations: The highway safety account--state appropriation is provided solely for:

(1) The arterial preservation program to help low tax-based, medium-sized cities preserve arterial pavements;

(2) The small city pavement program to help cities meet urgent preservation needs; and

(3) The small city low-energy street light retrofit demonstration program.

Sec. 305. 2013 c 306 s 305 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-FACILITIES‑-PROGRAM D‑- (DEPARTMENT OF TRANSPORTATION-ONLY PROJECTS)‑-CAPITAL

Transportation Partnership Account‑-State

Appropriation........................................................ (($13,425,000))

................................................................................... $14,390,000

Motor Vehicle Account‑-State Appropriation........... (($8,106,000))

..................................................................................... $9,469,000

TOTAL APPROPRIATION.................................. (($21,531,000))

................................................................................... $23,859,000

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

(1) The legislature recognizes that the Marginal Way site (King county parcel numbers 3024049182 & 5367202525) is surplus state-owned real property under the jurisdiction of the department and that the public would benefit significantly if this site is used to provide important social services. Therefore, the legislature declares that committing the Marginal Way site to this use is consistent with the public interest.

Pursuant to RCW 47.12.063, the department shall work with the owner of King county parcel number 7643400010, which abuts both parcels of the Marginal Way site, and shall convey the Marginal Way site to that abutting property owner for the appraised fair market value of the parcels, the proceeds of which must be deposited in the motor vehicle fund. The conveyance is conditional upon the purchaser's agreement to commit the use of the Marginal Way site to operations with the goal of ending hunger in western Washington. The department may not make this conveyance before September 1, 2013, and may not make this conveyance after ((~~January 15~~)) September 1, 2014.

The Washington department of transportation is not responsible for any costs associated with the cleanup or transfer of the Marginal Way site.

(2) ((~~$13,425,000~~)) $14,390,000 of the transportation partnership account--state appropriation is provided solely for the construction of a new traffic management and emergency operations center on property owned by the department on Dayton Avenue in Shoreline (project 100010T). Consistent with the office of financial management's 2012 study, it is the intent of the legislature to appropriate no more than $15,000,000 for the total construction costs. The department shall report to the transportation committees of the legislature and the office of financial management by June 30, 2014, on the progress of the construction of the traffic management and emergency operations center, including a schedule for terminating the current lease of the Goldsmith building in Seattle.

Sec. 306. 2013 c 306 s 306 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-IMPROVEMENTS‑-PROGRAM I

Multimodal Transportation Account--State

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

Transportation Partnership Account--State

Appropriation.................................................... (($1,536,032,000))

............................................................................... $1,313,555,000

Motor Vehicle Account--State Appropriation......... (($61,508,000))

................................................................................... $69,478,000

Motor Vehicle Account--Federal Appropriation... (($473,359,000))

................................................................................. $516,181,000

Motor Vehicle Account--Private/Local Appropriation.....................

............................................................................ (($208,452,000))

................................................................................. $166,357,000

Transportation 2003 Account (Nickel Account)--State

Appropriation...................................................... (($242,253,000))

................................................................................. $325,778,000

State Route Number 520 Corridor Account--State

Appropriation...................................................... (($737,205,000))

................................................................................. $880,111,000

State Route Number 520 Corridor Account--Federal

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

Special Category C Account--State Appropriation........... $124,000

TOTAL APPROPRIATION............................. (($3,559,933,000))

............................................................................... $3,572,584,000

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

(1) Except as provided otherwise in this section, the entire transportation 2003 account (nickel account) appropriation and the entire transportation partnership account appropriation are provided solely for the projects and activities as listed by fund, project, and amount in LEAP Transportation Document ((~~2013-1~~)) 2014-1 as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Improvement Program (I). However, limited transfers of specific line-item project appropriations may occur between projects for those amounts listed subject to the conditions and limitations in section ((~~603~~)) 601 of this act.

(2) Except as provided otherwise in this section, the entire motor vehicle account--state appropriation and motor vehicle account--federal appropriation are provided solely for the projects and activities listed in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Improvement Program (I). ((~~It is the intent of the legislature to direct~~))The department ((~~to give first priority of~~)) shall apply any federal funds gained through efficiencies or the redistribution process in an amount up to $27,200,000 for cost overruns related to the pontoon design errors on the SR 520 Bridge Replacement and HOV project (8BI1003) as described in subsection (12)(f) of this section. Any federal funds gained through efficiencies or the redistribution process that are in excess of $27,200,000 must then be applied to the "Contingency (Unfunded) Highway Preservation Projects" as identified in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Preservation Program (P). However, no additional federal funds may be allocated to the I- 5/Columbia River Crossing project (400506A).

(3) Within the motor vehicle account‑-state appropriation and motor vehicle account‑-federal appropriation, the department may transfer funds between programs I and P, except for funds that are otherwise restricted in this act.

(4) The transportation 2003 account (nickel account)‑-state appropriation includes up to ((~~$217,604,000~~)) $246,710,000 in proceeds from the sale of bonds authorized by RCW 47.10.861.

(5) The transportation partnership account‑-state appropriation includes up to ((~~$1,156,217,000~~)) $811,595,000 in proceeds from the sale of bonds authorized in RCW 47.10.873.

(6) The motor vehicle account‑-state appropriation includes up to $30,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.843.

((~~(8)~~)) (7)(a) ((~~$5,000,000~~)) $6,174,000 of the motor vehicle account‑-federal appropriation and ((~~$200,000~~)) $269,000 of the motor vehicle account--state appropriation are provided solely for the I-90 Comprehensive Tolling Study and Environmental Review project (100067T). The department shall prepare a detailed environmental impact statement that complies with the national environmental policy act regarding tolling Interstate 90 between Interstate 5 and Interstate 405 for the purposes of both managing traffic and providing funding for the construction of the unfunded state route number 520 from Interstate 5 to Medina project. As part of the preparation of the statement, the department must review any impacts to the network of highways and roads surrounding Lake Washington. In developing this statement, the department must provide significant outreach to potential affected communities. The department may consider traffic management options that extend as far east as Issaquah.

(b)(i) As part of the project in this subsection ((~~(8)~~)) (7), the department shall perform a study of all funding alternatives to tolling Interstate 90 to provide funding for construction of the unfunded state route number 520 and explore and evaluate options to mitigate the effect of tolling on affected residents and all other users of the network of highways and roads surrounding Lake Washington including, but not limited to:

(A) Allowing all Washington residents to traverse a portion of the tolled section of Interstate 90 without paying a toll. Residents may choose either (I) the portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing on Mercer Island, or (II) the portion of Interstate 90 between the westernmost landing east of Mercer Island and the easternmost landing on Mercer Island;

(B) Assessing a toll only when a driver traverses, in either direction, the entire portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing east of Mercer Island; and

(C) Allowing affected residents to choose one portion of the tolled section of Interstate 90 upon which they may travel without paying a toll. Residents may choose either (I) the portion of Interstate 90 between the easternmost landing west of Mercer Island and the westernmost landing on Mercer Island, or (II) the portion of Interstate 90 between the westernmost landing east of Mercer Island and the easternmost landing on Mercer Island.

(ii) The department may also consider any alternative mitigation options that conform to the purpose of this subsection ((~~(8)~~)) (7).

(iii) For the purposes of this subsection ((~~(8)~~)) (7), "affected resident" means anyone who must use a portion of Interstate 90 west of Interstate 405 upon which tolling is considered in order to access necessary medical services, such as a hospital.

((~~(9) $541,901,000~~)) (8) $490,796,000 of the transportation partnership account--state appropriation, ((~~$144,954,000~~)) $156,979,000 of the motor vehicle account--federal appropriation, ((~~$129,779,000~~)) $132,191,000 of the motor vehicle account--private/local appropriation, and ((~~$78,004,000~~)) $123,305,000 of the transportation 2003 account (nickel account)--state appropriation are provided solely for the SR 99/Alaskan Way Viaduct - Replacement project (809936Z). Amounts appropriated in this subsection may not be spent for the purpose of public transportation mitigation, except pursuant to an agreement or agreements between the department and King county as that agreement or agreements existed on January 1, 2013.

((~~(10)~~)) (9) The department shall reconvene an expert review panel of no more than three members as described under RCW 47.01.400 for the purpose of updating the work that was previously completed by the panel on the Alaskan Way viaduct replacement project and to ensure that an appropriate and viable financial plan is created and regularly reviewed. The expert review panel must be selected cooperatively by the chairs of the senate and house of representatives transportation committees, the secretary of transportation, and the governor. The expert review panel must report findings and recommendations to the transportation committees of the legislature, the governor's Alaskan Way viaduct project oversight committee, and the transportation commission annually until the project is operationally complete. This subsection takes effect if chapter ... (Substitute House Bill No. 1957), Laws of 2013 is not enacted by June 30, 2013.

((~~(11) $7,408,000~~)) (10) $7,103,000 of the transportation partnership account--state appropriation, ((~~$14,594,000~~)) $22,774,000 of the transportation 2003 account (nickel account)--state appropriation, ((~~$3,730,000 of the motor vehicle account--state appropriation,~~)) $1,000,000 of the multimodal transportation account-- state appropriation, and ((~~$41,395,000~~)) $51,712,000 of the motor vehicle account--federal appropriation are provided solely for the US 395/North Spokane Corridor projects (600010A & 600003A). Any future savings on the projects must stay on the US 395/Interstate 90 corridor and be made available to the current phase of the North Spokane corridor projects or any future phase of the projects.

((~~(12) $114,369,000~~)) (11) $129,952,000 of the transportation partnership account‑-state appropriation and ((~~$53,755,000~~)) $58,583,000 of the transportation 2003 account (nickel account)‑-state appropriation are provided solely for the I-405/Kirkland Vicinity Stage 2 - Widening project (8BI1002). This project must be completed as soon as practicable as a design-build project. Any future savings on this project or other Interstate 405 corridor projects must stay on the Interstate 405 corridor and be made available to either the I-405/SR 167 Interchange - Direct Connector project (140504C) or the I-405 Renton to Bellevue project.

((~~(13)~~)) (12)(a) The SR 520 Bridge Replacement and HOV project ((~~(0BI1003)~~)) (8BI1003) is supported over time from multiple sources, including a $300,000,000 TIFIA loan, ((~~$819,524,625~~)) $923,000,000 in Garvee bonds, toll revenues, state bonds, interest earnings, and other miscellaneous sources.

(b) The state route number 520 corridor account--state appropriation includes up to ((~~$668,142,000~~)) $814,784,000 in proceeds from the sale of bonds authorized in RCW 47.10.879 and 47.10.886.

(c) The state route number 520 corridor account--federal appropriation includes up to $300,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.879 and 47.10.886.

(d) ((~~$153,124,000~~)) $165,175,000 of the transportation partnership account--state appropriation, $300,000,000 of the state route number 520 corridor account--federal appropriation, and ((~~$737,205,000~~)) $880,111,000 of the state route number 520 corridor account--state appropriation are provided solely for the SR 520 Bridge Replacement and HOV project ((~~(0BI1003)~~)) (8BI1003). Of the amounts appropriated in this subsection ((~~(13)~~)) (12)(d), ((~~$105,085,000~~)) $84,001,000 of the state route number 520 corridor account--federal appropriation and ((~~$227,415,000~~)) $354,411,000 of the state route number 520 corridor account--state appropriation must be put into unallotted status and are subject to review by the office of financial management. The director of the office of financial management shall consult with the joint transportation committee prior to making a decision to allot these funds.

(e) When developing the financial plan for the project, the department shall assume that all maintenance and operation costs for the new facility are to be covered by tolls collected on the toll facility and not by the motor vehicle account.

      (f) The legislature finds that the most appropriate way to pay for the cost overruns related to change orders, additional sales tax, and future risks associated with pontoon design errors is for the state to issue triple pledge bonds in the 2015-2017 fiscal biennium resulting in $110,961,000 in proceeds, and use efficiencies, including the use of least cost planning or practical design, and favorable bids in the highway construction program to generate an additional $61,066,000 towards paying for the estimated project overruns. Of this additional $61,066,000, $33,866,000 should come from the transportation partnership account--state appropriation and $27,200,000 should come from federal funds. As the department identifies savings in federal funds during the 2013-2015 fiscal biennium, the department shall prioritize the use of these funds towards the anticipated $27,200,000 in federal funds needed to address cost overruns before expending state funds during this fiscal biennium. The legislature assumes that issuing bonds to complete this project as listed in LEAP Transportation Document 2014-1 as developed March 10, 2014, does not require a comprehensive financial plan for a project that completes the state route number 520 corridor to Interstate 5.
      (g) The department's 2014 supplemental budget allotment submittal must include a project-specific plan detailing how the department will achieve the mandatory budget savings in (f) of this subsection, including the use of least cost planning or practical design as a means to generate savings, as referenced in subsection (23) of this section. The use of least cost planning or practical design may result in a reduction of project cost, but not a reduction of functional scope. The director of financial management shall notify the transportation committees of the legislature in writing seven days prior to approving any allotment modifications under this subsection.
      (13) Within the amounts provided in this section, the department must continue to work with the Seattle department of transportation in their joint planning, design, outreach, and operation of the remaining west side elements including, but not limited to, the Montlake lid, the bicycle/pedestrian path, the effective network of transit connections, and the Portage Bay bridge of the SR 520 Bridge Replacement and HOV project.

(14) ((~~$1,100,000~~)) $1,062,000 of the motor vehicle account-- federal appropriation is provided solely for the 31st Ave SW Overpass Widening and Improvement project (L1100048).

(15) ((~~$22,602,000~~)) $25,243,000 of the motor vehicle account-- state appropriation is provided solely to advance the design, preliminary engineering, and rights-of-way acquisition for the priority projects identified in LEAP Transportation Document ((~~2013-3~~)) 2014-3 as developed ((~~April 23, 2013~~)) March 10, 2014. Funds must be used to advance the emergent, initial development of these projects for the purpose of expediting delivery of the associated major investments when funding for such investments becomes available. Funding may be reallocated between projects to maximize the accomplishment of design and preliminary engineering work and rights-of-way acquisition, provided that all projects are addressed. It is the intent of the legislature that, while seeking to maximize the outcomes in this section, the department shall provide for continuity of both the state and consulting engineer workforce, while strategically utilizing private sector involvement to ensure consistency with the department's business plan for staffing in the highway construction program in the current fiscal biennium.

(16) If a planned roundabout in the vicinity of state route number 526 and 84th Street SW would divert commercial traffic onto neighborhood streets, the department may not proceed with improvements at state route number 526 and 84th Street SW until the traffic impacts in the vicinity of state route number 526 and 40th Avenue West are addressed.

(17) The legislature finds that there are sixteen companies involved in wood preserving in the state that employ four hundred workers and have an annual payroll of fifteen million dollars. Prior to the department's switch to steel guardrails, ninety percent of the twenty-five hundred mile guardrail system was constructed of preserved wood and one hundred ten thousand wood guardrail posts were produced annually for state use. Moreover, the policy of using steel posts requires the state to use imported steel. Given these findings, where practicable, and until June 30, 2015, the department shall include the design option to use wood guardrail posts, in addition to steel posts, in new guardrail installations. The selection of posts must be consistent with the agency design manual policy that existed before December 2009.

(18) The legislature finds that "right-sizing" is a lean, metric-based approach to determining project investments. This concept entails compromise between project cost and design, incorporating local community needs, desired outcomes, and available funding. Furthermore, the legislature finds that the concepts and principles the department has utilized in the safety analyst program have been effective tools to prioritize projects and reduce project costs. Therefore, the department shall establish a pilot project on the SR 3/Belfair Bypass - New Alignment (300344C) to begin implementing the concept of "right-sizing" in the highway construction program.

(19) For urban corridors that are all or partially within a metropolitan planning organization boundary, for which the department has not initiated environmental review, and that require an environmental impact statement, at least one alternative must be consistent with the goals set out in RCW 47.01.440.

(20) The department shall itemize all future requests for the construction of buildings on a project list and submit them through the transportation executive information system as part of the department's 2014 budget submittal. It is the intent of the legislature that new facility construction must be transparent and not appropriated within larger highway construction projects.

(21) ((~~$28,963,000~~)) $19,513,000 of the motor vehicle account-- state appropriation ((is)) and $9,450,000 of the motor vehicle account--federal appropriation are provided solely for improvement program support activities (095901X). $18,000,000 of this amount must be held in unallotted status until the office of financial management certifies that the department's 2014 supplemental budget request conforms to the terms of subsection (20) of this section.

((~~(23)~~)) (22) Any new advisory group that the department convenes during the 2013-2015 fiscal biennium must be representative of the interests of the entire state of Washington.

(23) Practical design offers targeted benefits to a state transportation system within available fiscal resources. This delivers value not just for individual projects, but for the entire system. Applying practical design standards will also preserve and enhance safety and mobility. The department shall implement a practical design strategy for transportation design standards. By June 30, 2015, the department shall report to the governor and the house of representatives and senate transportation committees on where practical design has been applied or is intended to be applied in the department and the cost savings resulting from the use of practical design.
(24) The department of transportation shall accept transfer to the state highway system of Quarry Road (also known as the Granite Falls Alternate Route) as a partially controlled limited access facility, consistent with the right-of-way and limited access plan adopted by Snohomish county and the city of Granite Falls in 2008. The department of transportation shall defend any and all claims related to access and challenges to the limited access designation. This subsection takes effect ninety days after the date the governor signs this act if an agreement between the department of transportation and Snohomish county has not been signed by the effective date of this act.

Sec. 307. 2013 c 306 s 307 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-PRESERVATION‑-PROGRAM P

Transportation Partnership Account--State

Appropriation........................................................ (($36,480,000))

................................................................................... $34,966,000

Highway Safety Account--State Appropriation...... (($10,000,000))

................................................................................... $13,500,000

Motor Vehicle Account--State Appropriation......... (($58,503,000))

................................................................................... $59,796,000

Motor Vehicle Account--Federal Appropriation... (($580,062,000))

................................................................................. $595,604,000

Motor Vehicle Account--Private/Local Appropriation.....................

.............................................................................. (($11,270,000))

................................................................................... $11,827,000

Transportation 2003 Account (Nickel Account)--State

Appropriation.......................................................... (($2,285,000))

..................................................................................... $2,650,000
Tacoma Narrows Toll Bridge Account--State Appropriation...........

........................................................................................ $120,000

TOTAL APPROPRIATION................................ (($698,600,000))

................................................................................. $718,463,000

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

(1) Except as provided otherwise in this section, the entire transportation 2003 account (nickel account) appropriation and the entire transportation partnership account appropriation are provided solely for the projects and activities as listed by fund, project, and amount in LEAP Transportation Document ((~~2013-1~~)) 2014-1 as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Preservation Program (P). However, limited transfers of specific line-item project appropriations may occur between projects for those amounts listed subject to the conditions and limitations in section ((~~603~~)) 601 of this act.

(2) Except as provided otherwise in this section, the entire motor vehicle account--state appropriation and motor vehicle account--federal appropriation are provided solely for the projects and activities listed in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Preservation Program (P). ((~~It is the intent of the legislature to direct~~)) The department ((~~to give first priority of~~)) shall apply any federal funds gained through efficiencies or the redistribution process in an amount up to $27,200,000 for cost overruns related to the pontoon design errors on the SR 520 Bridge Replacement and HOV project (8BI1003) as described in section 306(12)(f) of this act. Any federal funds gained through efficiencies or the redistribution process that are in excess of $27,200,000 must then be applied to the "Contingency (Unfunded) Highway Preservation Projects" as identified in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Highway Preservation Program (P). However, no additional federal funds may be allocated to the I-5/Columbia River Crossing project (400506A).

(4) ((~~$27,278,000~~)) $26,610,000 of the motor vehicle account‑- federal appropriation, $51,000 ((~~and $1,141,000~~)) of the motor vehicle account‑-state appropriation, and $769,000 of the highway safety account--state appropriation are provided solely for the SR 167/Puyallup River Bridge Replacement project (316725A). This project must be completed as a design-build project. The department must work with local jurisdictions and the community during the environmental review process to develop appropriate esthetic design elements, at no additional cost to the department, and traffic management plans pertaining to this project. The department must report to the transportation committees of the legislature on estimated cost and/or time savings realized as a result of using the design-build process.

(5) The department shall examine the use of electric arc furnace slag for use as an aggregate for new roads and paving projects in high traffic areas and report back to the legislature on its current use in other areas of the country and any characteristics that can provide greater wear resistance and skid resistance in new pavement construction.

Sec. 308. 2013 c 306 s 308 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-TRAFFIC OPERATIONS‑-PROGRAM Q-- CAPITAL

Motor Vehicle Account‑-State Appropriation........... (($3,194,000))

..................................................................................... $4,915,000

Motor Vehicle Account‑-Federal Appropriation....... (($7,959,000))

..................................................................................... $9,152,000
Motor Vehicle Account--Private/Local Appropriation...... $200,000

TOTAL APPROPRIATION.................................. (($11,153,000))

................................................................................... $14,267,000

The appropriations in this section are subject to the following conditions and limitations: ((~~$694,000~~)) $195,000 of the motor vehicle account‑-state appropriation is provided solely for project 000005Q as state matching funds for federally selected competitive grants or congressional earmark projects. These moneys must be placed into reserve status until such time as federal funds are secured that require a state match.

Sec. 309. 2013 c 306 s 309 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-WASHINGTON STATE FERRIES CONSTRUCTION‑-PROGRAM W

Puget Sound Capital Construction Account‑-State

Appropriation........................................................ (($53,036,000))

................................................................................... $63,825,000

Puget Sound Capital Construction Account‑-Federal

Appropriation........................................................ (($91,692,000))

................................................................................. $118,444,000

Puget Sound Capital Construction Account‑-Private/Local

Appropriation.......................................................... (($1,145,000))

..................................................................................... $1,312,000

Multimodal Transportation Account‑-State

Appropriation.......................................................... (($1,534,000))

..................................................................................... $2,588,000

Transportation 2003 Account (Nickel Account)‑-State

Appropriation...................................................... (($143,941,000))

................................................................................. $190,031,000
Transportation Partnership Account--State
Appropriation............................................................... $2,813,000

TOTAL APPROPRIATION................................ (($291,348,000))

................................................................................. $379,013,000

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

(1) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Washington State Ferries Capital Program (W).

(2) The Puget Sound capital construction account‑-state appropriation includes up to $20,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.843.

(3) ((~~$143,633,000~~)) $137,425,000 of the transportation 2003 account (nickel account)‑-state appropriation ((is)), $2,338,000 of the transportation partnership account--state appropriation, and $300,000 of the Puget Sound capital construction account--federal appropriation are provided solely for the acquisition of two 144-car vessels (projects L2200038 and L2200039). The department shall use as much already procured equipment as practicable on the 144-car vessels.

(4) ((~~$8,270,000~~)) $14,728,000 of the Puget Sound capital construction account--federal appropriation, ((~~$3,935,000~~)) $4,038,000 of the Puget Sound capital construction account--state appropriation, and ((~~$1,534,000~~)) $1,535,000 of the multimodal transportation account--state appropriation are provided solely for the Mukilteo ferry terminal (project 952515P). To the greatest extent practicable, the department shall seek additional federal funding for this project. Within the multimodal transportation account--state appropriation amount provided in this subsection, the department shall lease to the city in which the project is located a portion of the department's property associated with this project to provide safe, temporary public access from the easterly terminus of First Street to the vicinity of Front Street. The department shall provide the lease at no cost in recognition of the impacts of this project to the city and require appropriate liability and maintenance coverage in the terms of the lease. Public access must be installed and removed at no cost to the state prior to construction of the multimodal terminal project.

(5) ((~~$4,000,000~~)) $4,935,000 of the Puget Sound capital construction account‑-state appropriation is provided solely for emergency capital repair costs (project 999910K). Funds may only be spent after approval by the office of financial management.

(6) Consistent with RCW 47.60.662, which requires the Washington state ferry system to collaborate with passenger-only ferry and transit providers to provide service at existing terminals, the department shall ensure that multimodal access, including for passenger-only ferries and transit service providers, is not precluded by any future modifications at the terminal.

(7) ((~~$3,800,000~~)) $4,026,000 of the Puget Sound capital construction account--state appropriation is provided solely for the reservation and communications system projects (L200041 & L200042).

(8) $4,210,000 of the Puget Sound capital construction account-- state appropriation is provided solely for the capital program share of $7,259,000 in lease payments for the ferry division's headquarters building. Consistent with the 2012 facilities oversight plan, the department shall strive to consolidate office space in downtown Seattle by the end of 2015. The department shall consider renewing the lease for the ferry division's current headquarters building only if the lease rate is reduced at least fifty percent and analysis shows that this is the least cost and risk option for the department. Consolidation with other divisions or state agencies, or a reduction in leased space, must also be considered as part of any headquarters lease renewal analysis.

(9) ((~~$21,950,000~~)) $23,737,000 of the total appropriation is for preservation work on the Hyak super class vessel (project 944431D), including installation of a power management system and more efficient propulsion systems, that in combination are anticipated to save up to twenty percent in fuel and reduce maintenance costs. Upon completion of this project, the department shall provide a report to the transportation committees of the legislature on the fuel and maintenance savings achieved for this vessel and the potential to save additional funds through other vessel conversions.

      (10) The transportation 2003 account (nickel account)--state appropriation includes up to $50,000,000 in proceeds from the sale of bonds authorized in RCW 47.10.861.
      (11) $50,000,000 of the transportation 2003 account (nickel account)--state appropriation is provided solely for the acquisition of one 144-car vessel (project L1000063). If chapter . . . (Engrossed Second Substitute House Bill No. 1129), Laws of 2014 (ferry vessel replacement) is not enacted by June 30, 2014, the amount provided in the subsection lapses.
      (12) If the department pursues a conversion of the existing diesel powered Issaquah class fleet to a different fuel source or engine technology, the department must use a design-build procurement process.
      (13) $350,000 of the Puget Sound capital construction account-- state appropriation is provided solely for the issuance of a request for proposals to convert the Issaquah class vessels to use liquefied natural gas and to provide a one-time stipend to the entity awarded the conversion contract. Of the amounts provided in this subsection:
      (a) $100,000 of the Puget Sound capital construction account--state appropriation is for the department to issue a request for proposals for a design-build contract consistent with RCW 47.20.780 to convert six Issaquah class vessels to be powered by liquefied natural gas. Consistent with RCW 47.56.030(2)(c), the legislature finds that the performance needs of the department in converting to liquefied natural gas are for engines with the lowest life-cycle costs, and the department must weigh this criteria as a priority when evaluating the proposals. To encourage cost saving ideas, the department shall limit prescribing design elements in the proposal to those approved or required by the United States coast guard in the liquefied natural gas waterways suitability assessment or those otherwise essential to provide clear direction to bidders. The request for proposals must include a process for evaluating proposals that may include alternative financing arrangements that are in compliance with state private financing law. When evaluating the financial merits of any liquefied natural gas conversion request for proposals, the department shall give consideration to the inability of the state to fund a liquefied natural gas conversion using currently available public resources. The department shall issue the request for proposals within forty-five days of rejecting the liquefied natural gas request for proposals issued under section 308(11), chapter 86, Laws of 2012 or receiving final findings from the United States coast guard on the liquefied natural gas waterways suitability assessment, whichever is later.
      (b) $250,000 of the Puget Sound capital construction account--state appropriation is for the entity awarded the contract pursuant to this subsection.

Sec. 310. 2013 c 306 s 310 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-RAIL‑-PROGRAM Y‑-CAPITAL

Essential Rail Assistance Account‑-State

Appropriation............................................................. (($861,000))

..................................................................................... $1,020,000

Transportation Infrastructure Account‑-State

Appropriation.......................................................... (($8,582,000))

..................................................................................... $9,190,000

Multimodal Transportation Account‑-State

Appropriation........................................................ (($33,156,000))

................................................................................... $44,085,000

Multimodal Transportation Account‑-Federal

Appropriation...................................................... (($333,881,000))

................................................................................. $430,193,000
Multimodal Transportation Account--Private/Local
Appropriation.................................................................. $409,000

TOTAL APPROPRIATION................................ (($376,480,000))

................................................................................. $484,897,000

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

(1)(a) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Rail ((~~Capital~~)) Program (Y).

(b) Within the amounts provided in this section, ((~~$7,332,000~~)) $7,669,000 of the transportation infrastructure account‑-state appropriation is for low-interest loans through the freight rail investment bank program identified in the LEAP transportation document referenced in (a) of this subsection. The department shall issue freight rail investment bank program loans with a repayment period of no more than ten years, and only so much interest as is necessary to recoup the department's costs to administer the loans.

(c) Within the amounts provided in this section, ((~~$2,439,000~~)) $2,440,000 of the multimodal transportation account‑-state appropriation, $1,250,000 of the transportation infrastructure account--state appropriation, and $311,000 of the essential rail assistance account‑-state appropriation are for statewide emergent freight rail assistance projects identified in the LEAP transportation document referenced in (a) of this subsection.

(2) Unsuccessful 2012 freight rail assistance program grant applicants may be awarded freight rail investment bank program loans, if eligible. ((~~If any funds remain in the freight rail investment bank or freight rail assistance program reserves (projects F01001A and F01000A), or any approved grants or loans are terminated,~~)) The department shall issue a call for projects for the freight rail investment bank loan program and the freight rail assistance grant program, and shall evaluate the applications in a manner consistent with past practices as specified in section 309, chapter 367, Laws of 2011. By November 1, ((~~2013~~)) 2014, the department shall submit a prioritized list of recommended projects to the office of financial management and the transportation committees of the legislature.

(3) ((~~$314,647,000~~)) $424,400,000 of the multimodal transportation account--federal appropriation and ((~~$4,867,000~~)) $10,658,000 of the multimodal transportation account--state appropriation are provided solely for expenditures related to passenger high-speed rail grants. Except for the Mount Vernon project (P01101A), the multimodal transportation account--state appropriation funds reflect one and one- half percent of the total project funds, and are provided solely for expenditures that are not eligible for federal reimbursement. Of the amounts provided in this subsection, $31,500,000 of the multimodal transportation account--federal appropriation is provided solely for the purchase of two new train sets for the state-supported intercity passenger rail service. The department must apply for any federal waivers required to purchase thenew train sets, as allowable under existing competitive bidding practices, and seek federal funds in addition to those available from the high-speed rail grants.

(4) As allowable under federal rail authority rules and existing competitive bidding practices, when purchasing new train sets, the department shall give preference to bidders that propose train sets with characteristics and maintenance requirements most similar to those currently owned by the department.

(5) The department shall provide quarterly reports to the office of financial management and the transportation committees of the legislature regarding applications that the department submits for federal funds and the status of such applications.

(6)(a) ((~~$550,000~~)) $709,000 of the essential rail assistance account‑-state appropriation, $241,000 of the transportation infrastructure account--state appropriation, and $1,893,000 of the multimodal transportation account--state appropriation are provided solely for the purpose of rehabilitation and maintenance of the Palouse river and Coulee City railroad line (project F01111B). The department shall complete an evaluation and assessment of future maintenance needs on the line to ensure appropriate levels of state investment.

(b) Expenditures from the essential rail assistance account--state appropriation in this section may not exceed the combined total of:

(i) Revenues deposited into the essential rail assistance account from leases and sale of property pursuant to RCW 47.76.290; and

(ii) Revenues transferred from the miscellaneous program account to the essential rail assistance account, pursuant to RCW 47.76.360, for the purpose of sustaining the grain train program by maintaining the Palouse river and Coulee City railroad line.

      (7) (($31,500,000 of the multimodal transportation account--federal appropriation is provided solely for the purchase of two new train sets for the state-supported intercity passenger rail service. The department must apply for any federal waivers required to purchase the new train sets, as allowable under existing competitive bidding practices, and seek federal funds in addition to those available from the high-speed rail grants)) (a) When the department identifies a prospective rail project that may have strategic significance for the state, or at the request of a proponent of a prospective rail project or a member of the legislature, the department shall evaluate the prospective project according to the cost-benefit methodology developed during the 2008 interim using the legislative priorities specified in (b) of this subsection. The department shall report its cost-benefit evaluation of the prospective rail project, as well as the department's best estimate of an appropriate construction schedule and total project costs, to the office of financial management and the transportation committees of the legislature.
      (b) The legislative priorities to be used in the cost-benefit methodology are, in order of relative importance:
      (i) Economic, safety, or environmental advantages of freight movement by rail compared to alternative modes;
      (ii) Self-sustaining economic development that creates family-wage jobs;
      (iii) Preservation of transportation corridors that would otherwise be lost;
      (iv) Increased access to efficient and cost-effective transport to market for Washington's agricultural and industrial products;
      (v) Better integration and cooperation within the regional, national, and international systems of freight distribution; and
      (vi) Mitigation of impacts of increased rail traffic on communities.

Sec. 311. 2013 c 306 s 311 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION‑-LOCAL PROGRAMS‑-PROGRAM Z‑- CAPITAL

Highway Infrastructure Account‑-State Appropriation..... $207,000

Highway Infrastructure Account‑-Federal

Appropriation............................................................... $1,602,000

((Freight Mobility Investment Account‑-State
Appropriation........................................................... $11,794,000))

Transportation Partnership Account‑-State

Appropriation.......................................................... (($7,214,000))

..................................................................................... $9,236,000

Highway Safety Account‑-State Appropriation...... (($11,255,000))

..................................................................................... $8,915,000

Motor Vehicle Account‑-State Appropriation........... (($6,918,000))

..................................................................................... $2,201,000

Motor Vehicle Account‑-Federal Appropriation... (($28,413,000))

................................................................................... $34,581,000

((Freight Mobility Multimodal Account‑-State
Appropriation............................................................... $9,736,000
Freight Mobility Multimodal Account‑-Private/Local
Appropriation............................................................. $1,320,000))

Multimodal Transportation Account‑-State

Appropriation........................................................ (($13,913,000))

................................................................................... $18,740,000

TOTAL APPROPRIATION.................................. (($92,372,000))

................................................................................... $75,482,000

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

(1) Except as provided otherwise in this section, the entire appropriations in this section are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document ((~~2013-2~~)) 2014-2 ALL PROJECTS as developed ((~~April 23, 2013~~)) March 10, 2014, Program - Local Programs (Z).

(2) With each department budget submittal, the department shall provide an update on the status of the repayment of the twenty million dollars of unobligated federal funds authority advanced by the department in September 2010 to the city of Tacoma for the Murray Morgan/11th Street bridge project. The department may negotiate with the city of Tacoma an agreement for repayment of the funds over a period of up to twenty-five years at terms agreed upon by the department and the city. The funds previously advanced by the department to the city are not to be considered a general obligation of the city but instead an obligation payable from identified revenues set aside for the repayment of the funds.

(3) The amounts identified in the LEAP transportation document referenced under subsection (1) of this section for pedestrian safety/safe routes to school are as follows:

(a) ((~~$12,160,000~~)) $16,543,000 of the multimodal transportation account--state appropriation, ((~~$6,824,000~~)) $8,724,000 of the transportation partnership account--state appropriation, and $62,000 of the motor vehicle account--federal appropriation are provided solely for pedestrian and bicycle safety program projects.

(b) $11,700,000 of the motor vehicle account--federal appropriation((~~, $5,200,000 of the motor vehicle account--state appropriation,~~)) and $6,750,000 of the highway safety account--state appropriation are provided solely for newly selected safe routes to school projects, and ((~~$3,400,000~~)) $6,503,000 of the motor vehicle account--federal appropriation and ((~~$2,055,000~~)) $2,165,000 of the highway safety account--state appropriation are reappropriated for safe routes to school projects selected in the previous biennia. The amount provided for new projects is consistent with federal funding levels from the 2011-2013 omnibus transportation appropriations act and the intent of the fee increases in chapter 74, Laws of 2012 and chapter 80, Laws of 2012. ((The motor vehicle account--state appropriation in this subsection (3)(b) is the amount made available by the repeal of the deduction from motor vehicle fuel tax liability for handling losses of motor vehicle fuel, as identified in chapter . . . (Substitute House Bill No. 2041), Laws of 2013 (handling losses of motor vehicle fuel). ~~If chapter . . . (Substitute House Bill No. 2041), Laws of 2013 is not enacted by June 30, 2013, the motor vehicle account--state appropriation in this subsection (3)(b) lapses.~~))

(4) (($84,000 of the motor vehicle account--state appropriation, $3,250,000 of the motor vehicle account--federal appropriation, $2,450,000 of the highway safety account--state appropriation, $11,794,000 of the freight mobility investment account--state appropriation, $9,736,000 of the freight mobility multimodal account-- state appropriation, and $1,320,000 of the freight mobility multimodal account--private/local appropriation are provided solely for the projects and activities as listed by project and amount in LEAP Transportation Document 2013-B as developed April 23, 2013. If chapter . . . (Substitute House Bill No. 1256), Laws of 2013 is enacted by June 30, 2013, the amounts provided in this subsection lapse.
(5))) The department may enter into contracts and make expenditures for projects on behalf of and selected by the freight mobility strategic investment board from the amounts provided in section 301 of this act.

((~~(6)~~)) (5) The department shall submit a report to the transportation committees of the legislature by December 1, 2013, and December 1, 2014, on the status of projects funded as part of the pedestrian safety/safe routes to school grant program (0LP600P). The report must include, but is not limited to, a list of projects selected and a brief description of each project's status.

((~~(7)~~)) (6) $50,000 of the motor vehicle account--state appropriation is provided solely for the installation of a guard rail on Deer Harbor Road in San Juan county (L2220054).

Sec. 312. 2013 c 306 s 312 (uncodified) is amended to read as follows:

ANNUAL REPORTING REQUIREMENTS FOR CAPITAL PROGRAM

(1) As part of its budget submittal for the ((~~2014 supplemental~~)) 2015 biennial budget, the department of transportation shall provide an update to the report provided to the legislature in 2013 that: (a) Compares the original project cost estimates approved in the 2003 and 2005 project lists to the completed cost of the project, or the most recent legislatively approved budget and total project costs for projects not yet completed; (b) identifies highway projects that may be reduced in scope and still achieve a functional benefit; (c) identifies highway projects that have experienced scope increases and that can be reduced in scope; (d) identifies highway projects that have lost significant local or regional contributions that were essential to completing the project; and (e) identifies contingency amounts allocated to projects.

(2) As part of its budget submittal for the ((~~2014 supplemental~~)) 2015 biennial budget, the department of transportation shall provide an annual report on the number of toll credits the department has accumulated and how the department has used the toll credits.

TRANSFERS AND DISTRIBUTIONS

Sec. 401. 2013 c 306 s 401 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALES DISCOUNTS AND DEBT TO BE PAID BY MOTOR VEHICLE ACCOUNT AND TRANSPORTATION FUND REVENUE

Transportation Partnership Account‑-State

Appropriation........................................................ (($10,406,000))

..................................................................................... $3,099,000

Motor Vehicle Account‑-State Appropriation.............. (($450,000))

........................................................................................ $187,000

State Route Number 520 Corridor Account‑-State

Appropriation............................................................... $3,866,000

Highway Bond Retirement Account‑-State

Appropriation.................................................... (($1,074,580,000))

............................................................................... $1,086,801,000

Ferry Bond Retirement Account‑-State Appropriation. $31,824,000

Transportation Improvement Board Bond Retirement

Account‑-State Appropriation................................ (($16,267,000))

................................................................................... $16,268,000

Nondebt-Limit Reimbursable Bond Retirement Account‑-State

Appropriation............................................................. $25,825,000

Toll Facility Bond Retirement Account‑-State

Appropriation............................................................. $52,050,000

((Toll Facility Bond Retirement Account--Federal
Appropriation........................................................... $64,982,000))

Transportation 2003 Account (Nickel Account)‑-State

Appropriation.......................................................... (($1,958,000))

........................................................................................ $682,000

((Special Category C Account--State Appropriation.......... $2,000))

TOTAL APPROPRIATION............................. (($1,282,210,000))

............................................................................... $1,220,602,000

Sec. 402. 2013 c 306 s 402 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR BOND SALE EXPENSES AND FISCAL AGENT CHARGES

Transportation Partnership Account‑-State

Appropriation.......................................................... (($1,156,000))

........................................................................................ $588,000

Motor Vehicle Account‑-State Appropriation............... (($50,000))

.......................................................................................... $32,000

State Route Number 520 Corridor Account‑-State

Appropriation.................................................................. $531,000

Transportation 2003 Account (Nickel Account)‑-State

Appropriation............................................................. (($218,000))

........................................................................................ $123,000

TOTAL APPROPRIATION.................................... (($1,955,000))

..................................................................................... $1,274,000

NEW SECTION. Sec. 403. A new section is added to 2013 c 306 (uncodified) to read as follows:

FOR THE STATE TREASURER‑-BOND RETIREMENT AND INTEREST, AND ONGOING BOND REGISTRATION AND TRANSFER CHARGES: FOR DEBT TO BE PAID BY STATUTORILY PRESCRIBED REVENUE

Toll Facility Bond Retirement Account--Federal

Appropriation $69,913,000

Sec. 404. 2013 c 306 s 404 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-STATE REVENUES FOR DISTRIBUTION

Motor Vehicle Account--State Appropriation: For

motor vehicle fuel tax distributions to cities

and counties......................................................... ((~~$474,610,000~~))

................................................................................. $478,598,000

Sec. 405. 2013 c 306 s 405 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-TRANSFERS

Motor Vehicle Account--State Appropriation: For

motor vehicle fuel tax refunds and statutory

transfers............................................................ (($1,235,491,000))

............................................................................... $1,242,728,000

Sec. 406. 2013 c 306 s 406 (uncodified) is amended to read as follows:

FOR THE DEPARTMENT OF LICENSING‑-TRANSFERS

Motor Vehicle Account--State Appropriation: For motor

vehicle fuel tax refunds and transfers.................... (($138,627,000))

................................................................................. $138,494,000

Sec. 407. 2013 c 306 s 407 (uncodified) is amended to read as follows:

FOR THE STATE TREASURER‑-ADMINISTRATIVE TRANSFERS

(1) Recreational Vehicle Account‑-State

Appropriation: For transfer to the Motor Vehicle

Account‑-State.............................................................. $1,300,000

(2) Multimodal Transportation Account‑-State

Appropriation: For transfer to the Puget Sound

Ferry Operations Account‑-State................................. $13,000,000

(3) Rural Mobility Grant Program Account‑-State

Appropriation: For transfer to the Multimodal

Transportation Account‑-State...................................... $3,000,000

(4) Motor Vehicle Account‑-State

Appropriation: For transfer to the Special Category C

Account‑-State.............................................................. $1,500,000

(5) Capital Vessel Replacement Account‑-State

Appropriation: For transfer to the Transportation 2003

Account (Nickel Account)‑-State............................. (($7,702,000))

..................................................................................... $7,571,000

(6) Multimodal Transportation Account--State

Appropriation: For transfer to the Public Transportation

Grant Program Account--State.................................... $26,000,000

(7) Motor Vehicle Account--State Appropriation:

For transfer to the Puget Sound Ferry Operations

Account--State............................................................ $28,000,000

(8) Motor Vehicle Account--State Appropriation:

For transfer to the Puget Sound Capital Construction

Account--State............................................................ $28,000,000

(9) State Route Number 520 Civil Penalties

Account--State Appropriation: For transfer to the

State Route Number 520 Corridor Account--State $886,000

(10) Multimodal Transportation Account--State

Appropriation: For transfer to the Highway Safety

Account--State....................................................... (($10,000,000))

................................................................................... $14,000,000

(11) Motor Vehicle Account--State Appropriation:

For transfer to the State Patrol Highway

Account--State............................................................ $27,000,000

(12) Highway Safety Account--State Appropriation:

For transfer to the Puget Sound Ferry Operations

Account--State............................................................ $42,000,000

(13) Advanced Environmental Mitigation Revolving

Account--State Appropriation: For transfer to the Motor

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

(14) Advanced Right-of-Way Revolving Fund--State

Appropriation: For transfer to the Motor Vehicle

Account--State.............................................................. $6,000,000

(15) Tacoma Narrows Toll Bridge Account--State

Appropriation: For transfer to the Motor Vehicle

Account--State................................................................. $950,000

(16) License Plate Technology Account--State

Appropriation: For transfer to the Highway Safety

Account--State.............................................................. $3,000,000

(17) Motor Vehicle Account--State Appropriation:

For transfer to the Transportation Equipment

Fund--State................................................................... $3,915,000

(18) ((Multimodal Transportation Account--State
Appropriation: For transfer to the Motor Vehicle
Account--State......................................................... $10,000,000))

(a) Capital Vessel Replacement Account--State
Appropriation: For transfer to Transportation 2003
Account (Nickel Account)--State................................ $11,128,000
(b) If chapter . (Engrossed Second Substitute House Bill No. 1129),

Laws of 2014 (ferry vessel replacement) is not enacted by June 30, 2014, the amount transferred in (a) of this subsection lapses.
(19) Motor Vehicle Account--State Appropriation: For
transfer to the Interstate 405 Express Toll Lanes
Operations Account--State............................................ $2,019,000

COMPENSATION

Sec. 501. 2013 c 306 s 517 (uncodified) is amended to read as follows:

COMPENSATION--REPRESENTED EMPLOYEES--SUPER COALITION--INSURANCE BENEFITS

No agreement has been reached between the governor and the health care super coalition under chapter 41.80 RCW for the 2013-2015 fiscal biennium. Appropriations in this act for fiscal year 2014 for state agencies, including institutions of higher education, are sufficient to continue the provisions of the 2011-2013 collective bargaining agreement. An agreement was reached between the governor and the health care super coalition under chapter 41.80 RCW for fiscal year 2015. The agreement includes employer contributions to premiums at eighty-five percent of the total weighted average of the projected health care premiums. Appropriations in this act for fiscal year 2015 are sufficient to fund the provisions of the fiscal year 2015 collective bargaining agreement, and are subject to the following conditions and limitations:

(1)(a) The monthly employer funding rate for insurance benefit premiums, public employees' benefits board administration, and the uniform medical plan must not exceed $809 per eligible employee for fiscal year 2014. For fiscal year 2015, the monthly employer funding rate must not exceed ((~~$820~~)) $703 per eligible employee.

(b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board must require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or other changes to benefits consistent with the collective bargaining agreement and RCW 41.05.065.

(c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.

(2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

Sec. 502. 2013 c 306 s 518 (uncodified) is amended to read as follows:

COMPENSATION--REPRESENTED EMPLOYEES OUTSIDE SUPER COALITION--INSURANCE BENEFITS

Appropriations for state agencies in this act are sufficient for represented employees outside the super coalition for health benefits and are subject to the following conditions and limitations:

(b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or other changes to benefits consistent with RCW 41.05.065.

(c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.

(2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

Sec. 503. 2013 c 306 s 519 (uncodified) is amended to read as follows:

COMPENSATION--NONREPRESENTED EMPLOYEES--INSURANCE BENEFITS

(b) In order to achieve the level of funding provided for health benefits, the public employees' benefits board shall require any of the following: Employee premium copayments; increases in point-of-service cost sharing; the implementation of managed competition; or make other changes to benefits consistent with RCW 41.05.065.

(c) The health care authority shall deposit any moneys received on behalf of the uniform medical plan as a result of rebates on prescription drugs, audits of hospitals, subrogation payments, or any other moneys recovered as a result of prior uniform medical plan claims payments into the public employees' and retirees' insurance account to be used for insurance benefits. Such receipts must not be used for administrative expenditures.

(2) The health care authority, subject to the approval of the public employees' benefits board, shall provide subsidies for health benefit premiums to eligible retired or disabled public employees and school district employees who are eligible for medicare, pursuant to RCW 41.05.085. For calendar years 2014 and 2015, the subsidy must be $150.00 per month.

IMPLEMENTING PROVISIONS

Sec. 601. 2013 c 306 s 603 (uncodified) is amended to read as follows:

FUND TRANSFERS

(1) The transportation 2003 projects or improvements and the 2005 transportation partnership projects or improvements are listed in the LEAP list titled ((~~2013-1~~)) 2014-1 as developed ((~~April 23, 2013~~)) March 10, 2014, which consists of a list of specific projects by fund source and amount over a ten-year period. Current fiscal biennium funding for each project is a line-item appropriation, while the outer year funding allocations represent a ten-year plan. The department is expected to use the flexibility provided in this section to assist in the delivery and completion of all transportation partnership account and transportation 2003 account (nickel account) projects on the LEAP transportation documents referenced in this act. However, this section does not apply to the I-5/Columbia River Crossing project (400506A). For the 2011-2013 and 2013-2015 project appropriations, unless otherwise provided in this act, the director of financial management may authorize a transfer of appropriation authority between projects funded with transportation 2003 account (nickel account) appropriations, or transportation partnership account appropriations, in order to manage project spending and efficiently deliver all projects in the respective program under the following conditions and limitations:

(a) Transfers may only be made within each specific fund source referenced on the respective project list;

(b) Transfers from a project may not be made as a result of the reduction of the scope of a project or be made to support increases in the scope of a project;

(c) Each transfer between projects may only occur if the director of financial management finds that any resulting change will not hinder the completion of the projects as approved by the legislature. Until the legislature reconvenes to consider the 2014 supplemental omnibus transportation appropriations act, any unexpended 2011-2013 appropriation balance as approved by the office of financial management, in consultation with the legislative staff of the house of representatives and senate transportation committees, may be considered when transferring funds between projects;

(d) Transfers from a project may be made if the funds appropriated to the project are in excess of the amount needed to complete the project;

(e) Transfers may not occur for projects not identified on the applicable project list;

(f) Transfers may not be made while the legislature is in session; and

(g) Transfers between projects may be made, without the approval of the director of the office of financial management, by the department of transportation until the transfer amount by project exceeds two hundred fifty thousand dollars, or ten percent of the total project, whichever is less. These transfers must be reported quarterly to the director of financial management and the chairs of the house of representatives and senate transportation committees.

(2) At the time the department submits a request to transfer funds under this section, a copy of the request must be submitted to the transportation committees of the legislature.

(3) The office of financial management shall work with legislative staff of the house of representatives and senate transportation committees to review the requested transfers in a timely manner.

(4) The office of financial management shall document approved transfers and schedule changes in the transportation executive information system, compare changes to the legislative baseline funding and schedules identified by project identification number identified in the LEAP transportation documents referenced in this act, and transmit revised project lists to chairs of the transportation committees of the legislature on a quarterly basis.

NEW SECTION. Sec. 602. A new section is added to 2013 c 306 (uncodified) to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION

Except as otherwise provided in this act, the department may enter into a new agreement with King county for the purpose of public transportation mitigation for the SR 99/Alaskan Way Viaduct - Replacement project through the end of the 2013-2015 fiscal biennium. Before expending any funds, the department must inform the transportation committees of the legislature of the amount and source of the funds.

NEW SECTION. Sec. 603. A new section is added to 2013 c 306 (uncodified) to read as follows:

FOR THE DEPARTMENT OF TRANSPORTATION

(1) The department shall submit a report to the transportation committees of the legislature detailing engineering errors on highway construction projects resulting in project cost increases in excess of five hundred thousand dollars. The department must submit a full report within ninety days of the negotiated change order resulting from the engineering error.

(2) The department's full report must include an assessment and review of:

(a) How the engineering error happened;

(b) The department of the employee or employees responsible for the engineering error, without disclosing the name of the employee or employees;

(d) The estimated total cost of the engineering error and how the department plans to mitigate that cost;

(e) Whether the cost of the engineering error will impact the overall project financial plan; and

(f) What action the secretary has recommended to avoid similar engineering errors in the future.

MISCELLANEOUS 2013-2015 FISCAL BIENNIUM

Sec. 701. RCW 47.28.030 and 2011 c 367 s 710 are each amended to read as follows:

(1)(a) A state highway shall be constructed, altered, repaired, or improved, and improvements located on property acquired for right‑of‑way purposes may be repaired or renovated pending the use of such right‑of‑way for highway purposes, by contract or state forces. The work or portions thereof may be done by state forces when the estimated costs thereof are less than fifty thousand dollars and effective July 1, 2005, sixty thousand dollars.

(b) When delay of performance of such work would jeopardize a state highway or constitute a danger to the traveling public, the work may be done by state forces when the estimated cost thereof is less than eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars.

(c) When the department of transportation determines to do the work by state forces, it shall enter a statement upon its records to that effect, stating the reasons therefor.

(d) To enable a larger number of small businesses and veteran, minority, and women contractors to effectively compete for department of transportation contracts, the department may adopt rules providing for bids and award of contracts for the performance of work, or furnishing equipment, materials, supplies, or operating services whenever any work is to be performed and the engineer's estimate indicates the cost of the work would not exceed eighty thousand dollars and effective July 1, 2005, one hundred thousand dollars.

(2) The rules adopted under this section:

(a) Shall provide for competitive bids to the extent that competitive sources are available except when delay of performance would jeopardize life or property or inconvenience the traveling public; and

(b) Need not require the furnishing of a bid deposit nor a performance bond, but if a performance bond is not required then progress payments to the contractor may be required to be made based on submittal of paid invoices to substantiate proof that disbursements have been made to laborers, material suppliers, mechanics, and subcontractors from the previous partial payment; and

(c) May establish prequalification standards and procedures as an alternative to those set forth in RCW 47.28.070, but the prequalification standards and procedures under RCW 47.28.070 shall always be sufficient.

(3) The department of transportation shall comply with such goals and rules as may be adopted by the office of minority and women's business enterprises to implement chapter 39.19 RCW with respect to contracts entered into under this chapter. The department may adopt such rules as may be necessary to comply with the rules adopted by the office of minority and women's business enterprises under chapter 39.19 RCW.

(4)(a) For the period of March 15, ((~~2010~~)) 2014, through June 30, ((~~2013~~)) 2015, work for less than one hundred twenty thousand dollars may be performed on ferry vessels and terminals by state forces.

(b) The department shall hire a disinterested, third party to conduct an independent analysis to identify methods of reducing out-of- service times for vessel maintenance, preservation, and improvement projects. The analysis must include options that consider consolidating work while vessels are at shipyards by having state forces perform services traditionally performed at Eagle Harbor at the shipyard and decreasing the allowable time at shipyards. The analysis must also compare the out-of-service vessel times of performing services by state forces versus contracting out those services which in turn must be used to form a recommendation as to what the threshold of work performed on ferry vessels and terminals by state forces should be. This analysis must be presented to the transportation committees of the senate and house of representatives by December 1, 2010.

(c) The department shall develop a proposed ferry vessel maintenance, preservation, and improvement program and present it to the transportation committees of the senate and house of representatives by December 1, 2010. The proposed program must:

(i) Improve the basis for budgeting vessel maintenance, preservation, and improvement costs and for projecting those costs into a sixteen-year financial plan;

(ii) Limit the amount of planned out-of-service time to the greatest extent possible, including options associated with department staff as well as commercial shipyards; and

(iii) Be based on the service plan in the capital plan, recognizing that vessel preservation and improvement needs may vary by route.

(d) In developing the proposed ferry vessel maintenance, preservation, and improvement program, the department shall consider the following, related to reducing vessel out-of-service time:

(i) The costs compared to benefits of Eagle Harbor repair and maintenance facility operations options to include staffing costs and benefits in terms of reduced out-of-service time;

(ii) The maintenance requirements for on-vessel staff, including the benefits of a systemwide standard;

(iii) The costs compared to benefits of staff performing preservation or maintenance work, or both, while the vessel is underway, tied up between sailings, or not deployed;

(iv) A review of the department's vessel maintenance, preservation, and improvement program contracting process and contractual requirements;

(v) The costs compared to benefits of allowing for increased costs associated with expedited delivery;

(vi) A method for comparing the anticipated out-of-service time of proposed projects and other projects planned during the same construction period;

(vii) Coordination with required United States coast guard dry dockings;

(viii) A method for comparing how proposed projects relate to the service requirements of the route on which the vessel normally operates; and

(ix) A method for evaluating the ongoing maintenance and preservation costs associated with proposed improvement projects.

Sec. 702. RCW 81.53.281 and 2003 c 190 s 3 are each amended to read as follows:

There is hereby created in the state treasury a "grade crossing protective fund" to carry out the provisions of RCW 81.53.261, 81.53.271, 81.53.281, 81.53.291, and 81.53.295; for grants and/or subsidies to public, private, and nonprofit entities for rail safety projects authorized or ordered by the commission; and for personnel and associated costs related to supervising and administering rail safety grants and/or subsidies. During the 2013-2015 fiscal biennium, funds in this account may also be used to conduct the study required under section 102 of this act. The commission shall transfer from the public service revolving fund's miscellaneous fees and penalties accounts moneys appropriated for these purposes as needed. At the time the commission makes each allocation of cost to said grade crossing protective fund, it shall certify that such cost shall be payable out of said fund. When federal-aid highway funds are involved, the department of transportation shall, upon entry of an order by the commission requiring the installation or upgrading of a grade crossing protective device, submit to the commission an estimate for the cost of the proposed installation and related work. Upon receipt of the estimate the commission shall pay to the department of transportation the percentage of the estimate specified in RCW 81.53.295, as now or hereafter amended, to be used as the grade crossing protective fund portion of the cost of the installation and related work.

The commission may adopt rules for the allocation of money from the grade crossing protective fund.

NEW SECTION. Sec. 703. A new section is added to 2013 c 306 (uncodified) to read as follows:

The office of the state treasurer shall explore the fiscal implications with respect to outstanding motor vehicle fuel transportation bonds and to future transportation bond sales, relating to any reduction, refunding, crediting, or repeal of the motor vehicle fuel tax, in whole or in part, that may occur in a transition to a potential road usage charge by which transportation activities may be funded in the future. The exploration of fiscal implications must examine possible effects on the state credit rating, interest rates, and other factors that affect the cost of financing transportation projects. The draft report of this work must be shared with the transportation committees of the legislature, the transportation commission, and the office of financial management by September 1, 2014. A final report must be provided to the transportation committees of the legislature, the transportation commission, and the office of financial management by December 31, 2014.

Sec. 704. RCW 82.70.020 and 2013 c 306 s 718 are each amended to read as follows:

(1) Employers in this state who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, ((~~2014~~)) 2015, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per employee per fiscal year.

(2) Property managers who are taxable under chapter 82.04 or 82.16 RCW and provide financial incentives to persons employed at a worksite in this state managed by the property manager for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before July 1, ((~~2014~~)) 2015, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per person per fiscal year.

(3) The credit under this section is equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per fiscal year. No refunds may be granted for credits under this section.

(4) A person may not receive credit under this section for amounts paid to or on behalf of the same employee under both chapters 82.04 and 82.16 RCW.

(5) A person may not take a credit under this section for amounts claimed for credit by other persons.

Sec. 705. RCW 82.70.040 and 2013 c 306 s 719 are each amended to read as follows:

(1)(a)(i) The department shall keep a running total of all credits allowed under RCW 82.70.020 during each fiscal year. The department shall not allow any credits that would cause the total amount allowed to exceed two million seven hundred fifty thousand dollars in any fiscal year. This limitation includes any deferred credits carried forward under subsection (2)(b)(i) of this section from prior years.

(ii) During the 2013-2015 fiscal biennium, the department shall not allow any credits that would cause the total amount allowed to exceed one million five hundred thousand dollars in any fiscal year. This limitation includes any deferred credits carried forward under subsection (2)(b)(i) of this section from prior years.

(b) If the total amount of credit applied for by all applicants in any year exceeds the limit in this subsection, the department shall ratably reduce the amount of credit allowed for all applicants so that the limit in this subsection is not exceeded. If a credit is reduced under this subsection, the amount of the reduction may not be carried forward and claimed in subsequent fiscal years.

(2)(a) Tax credits under RCW 82.70.020 may not be claimed in excess of the amount of tax otherwise due under chapter 82.04 or 82.16 RCW.

(b)(i) Through June 30, 2005, a person with taxes equal to or in excess of the credit under RCW 82.70.020, and therefore not subject to the limitation in (a) of this subsection, may elect to defer tax credits for a period of not more than three years after the year in which the credits accrue. No credits deferred under this subsection (2)(b)(i) may be used after June 30, 2008. A person deferring tax credits under this subsection (2)(b)(i) must submit an application as provided in RCW 82.70.025 in the year in which the deferred tax credits will be used. This application is subject to the provisions of subsection (1) of this section for the year in which the tax credits will be applied. If a deferred credit is reduced under subsection (1)(b) of this section, the amount of deferred credit disallowed because of the reduction may be carried forward as long as the period of deferral does not exceed three years after the year in which the credit was earned.

(ii) For credits approved by the department after June 30, 2005, the approved credit may be carried forward to subsequent years until used. Credits carried forward as authorized by this subsection are subject to the limitation in subsection (1)(a) of this section for the fiscal year for which the credits were originally approved.

(3) No person shall be approved for tax credits under RCW 82.70.020 in excess of two hundred thousand dollars in any fiscal year. This limitation does not apply to credits carried forward from prior years under subsection (2)(b) of this section.

(4) No person may claim tax credits after June 30, ((~~2014~~)) 2015.

(5) Credits may not be carried forward other than as authorized in subsection (2)(b) of this section.

(6) No person is eligible for tax credits under RCW 82.70.020 if the additional revenues for the multimodal transportation account created by Engrossed Substitute House Bill No. 2231 are terminated.

Sec. 706. RCW 82.70.050 and 2003 c 364 s 5 are each amended to read as follows:

(1) During the 2013-2015 fiscal biennium, the director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken under RCW 82.70.020 during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

(2) On the last day of March, June, September, and December of each year, the state treasurer, based upon information provided by the department, shall deposit to the general fund a sum equal to the dollar amount of the credit provided under RCW 82.70.020 from the multimodal transportation account.

Sec. 707. RCW 82.70.900 and 2013 c 306 s 720 are each amended to read as follows:

This chapter expires ((July 1, 2014, except for RCW 82.70.050, which expires January 1, 2015)) June 30, 2015.

Sec. 708. RCW 90.03.525 and 2005 c 319 s 140 are each amended to read as follows:

(1) The rate charged by a local government utility to the department of transportation with respect to state highway right‑of‑way or any section of state highway right‑of‑way for the construction, operation, and maintenance of storm water control facilities under chapters 35.67, 35.92, 36.89, 36.94, 57.08, and 86.15 RCW, shall be thirty percent of the rate for comparable real property, except as otherwise provided in this section. The rate charged to the department with respect to state highway right‑of‑way or any section of state highway right‑of‑way within a local government utility's jurisdiction shall not, however, exceed the rate charged for comparable city street or county road right‑of‑way within the same jurisdiction. The legislature finds that the aforesaid rates are presumptively fair and equitable because of the traditional and continuing expenditures of the department of transportation for the construction, operation, and maintenance of storm water control facilities designed to control surface water or storm water runoff from state highway rights‑of‑way.

(2) Charges paid under subsection (1) of this section by the department of transportation must be used solely for storm water control facilities that directly reduce ((~~state highway~~)) runoff impacts or implementation of best management practices that will reduce the need for such facilities. ((By January 1st of each year, beginning with calendar year 1997, the local government utility, in coordination with the department, shall develop a plan for the expenditure of the charges for that calendar year. The plan must be consistent with the objectives identified in RCW 90.78.010. In addition, beginning with the submittal for 1998, the utility shall provide a progress report on the use of charges assessed for the prior year. No charges may be paid until the plan and report have been submitted to the department.))

(3) The utility imposing the charge and the department of transportation may, however, agree to either higher or lower rates with respect to the construction, operation, or maintenance of any specific storm water control facilities ((~~based upon the annual plan prescribed in subsection (2) of this section~~)). If, after mediation, the local government utility and the department of transportation cannot agree upon the proper rate, either may commence an action in the superior court for the county in which the state highway right‑of‑way is located to establish the proper rate. The court in establishing the proper rate shall take into account the extent and adequacy of storm water control facilities constructed by the department and the actual benefits to the sections of state highway rights‑of‑way from storm water control facilities constructed, operated, and maintained by the local government utility. Control of surface water runoff and storm water runoff from state highway rights‑of‑way shall be deemed an actual benefit to the state highway rights‑of‑way. The rate for sections of state highway right‑of‑way as determined by the court shall be set forth in terms of the percentage of the rate for comparable real property, but shall in no event exceed the rate charged for comparable city street or county road right‑of‑way within the same jurisdiction.

(4) The legislature finds that the federal clean water act (national pollutant discharge elimination system, 40 C.F.R. parts 122- 124), the state water pollution control act, chapter 90.48 RCW, and the highway runoff program under chapter 90.71 RCW, mandate the treatment and control of storm water runoff from state highway rights‑of‑way owned by the department of transportation. Appropriations made by the legislature to the department of transportation for the construction, operation, and maintenance of storm water control facilities are intended to address applicable federal and state mandates related to storm water control and treatment. This section is not intended to limit opportunities for sharing the costs of storm water improvements between cities, counties, and the state.

MISCELLANEOUS

NEW SECTION. Sec. 801. 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. 802. Section 701 of this act takes effect if chapter . . . (Engrossed House Bill No. 2684), Laws of 2014 (ferry vessel and terminal work) is not enacted by April 15, 2014.

NEW SECTION. Sec. 803. Section 708 of this act expires June 30, 2015.

NEW SECTION. Sec. 804. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.

(End of Bill)

INDEX PAGE #

ANNUAL REPORTING REQUIREMENTS FOR CAPITAL PROGRAM ................................................................................................... 69

COMPENSATION

NONREPRESENTED EMPLOYEES--INSURANCE BENEFITS

................................................................................................... 75

REPRESENTED EMPLOYEES OUTSIDE SUPER

COALITION—INSURANCE BENEFITS ............................... 75

REPRESENTED EMPLOYEES--SUPER COALITION—

INSURANCE BENEFITS ........................................................ 73

COUNTY ROAD ADMINISTRATION BOARD ................ 5, 46

DEPARTMENT OF AGRICULTURE ....................................... 3

DEPARTMENT OF ARCHAEOLOGY AND HISTORIC PRESERVATION ...................................................................... 1

DEPARTMENT OF LICENSING ............................................ 15

TRANSFERS ........................................................................... 71

DEPARTMENT OF TRANSPORTATION ............................. 78

AVIATION‑-PROGRAM F ..................................................... 27

CHARGES FROM OTHER AGENCIES‑-PROGRAM U ....... 37

ECONOMIC PARTNERSHIPS‑-PROGRAM K ...................... 30

FACILITIES‑-PROGRAM D‑-CAPITAL ................................ 47

FACILITIES‑-PROGRAM D‑-OPERATING .......................... 27

HIGHWAY MAINTENANCE‑-PROGRAM M ...................... 31

IMPROVEMENTS‑-PROGRAM I .......................................... 48

INFORMATION TECHNOLOGY‑-PROGRAM C ................. 26

LOCAL PROGRAMS‑-PROGRAM Z‑-CAPITAL .................. 66

LOCAL PROGRAMS‑-PROGRAM Z‑-OPERATING ............ 44

MARINE‑-PROGRAM X ........................................................ 41

PRESERVATION‑-PROGRAM P ........................................... 57

ROGRAM DELIVERY MANAGEMENT AND SUPPORT—

PROGRAM H .......................................................................... 27

PUBLIC TRANSPORTATION--PROGRAM V ...................... 37

RAIL‑-PROGRAM Y--OPERATING ...................................... 43

RAIL‑-PROGRAM Y‑-CAPITAL ............................................ 63

TOLL OPERATIONS AND MAINTENANCE‑-PROGRAM B

................................................................................................... 21

TRAFFIC OPERATIONS‑-PROGRAM Q--CAPITAL ............ 59

TRAFFIC OPERATIONS‑-PROGRAM Q‑-OPERATING ...... 32

TRANSPORTATION MANAGEMENT AND SUPPORT—

PROGRAM S ........................................................................... 35

TRANSPORTATION PLANNING, DATA, AND RESEARCH

—PROGRAM T ....................................................................... 36

WASHINGTON STATE FERRIES CONSTRUCTION—

PROGRAM W ......................................................................... 59

FREIGHT MOBILITY STRATEGIC INVESTMENT BOARD

............................................................................................ 13, 45

FUND TRANSFERS ................................................................ 76

JOINT TRANSPORTATION COMMITTEE ............................. 6

LEGISLATIVE EVALUATION AND ACCOUNTABILITY PROGRAM COMMITTEE ............................................................................ 3

OFFICE OF FINANCIAL MANAGEMENT ............................. 2

STATE TREASURER

ADMINISTRATIVE TRANSFERS ......................................... 72

BOND RETIREMENT AND INTEREST .................... 69, 70, 71

STATE REVENUES FOR DISTRIBUTION ........................... 71

TRANSFERS ........................................................................... 71

TRANSPORTATION COMMISSION ....................................... 9

TRANSPORTATION IMPROVEMENT BOARD .............. 6, 47

UTILITIES AND TRANSPORTATION COMMISSION .......... 1

WASHINGTON STATE PATROL .................................... 13, 45

WASHINGTON TRAFFIC SAFETY COMMISSION ............. 3"

Correct the title.

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator Eide moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6001.

Senators Eide, King and Liias spoke in favor of the motion.

The President declared the question before the Senate to be the motion by Senator Eide that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6001.

The motion by Senator Eide carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6001 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6001, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6001, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 44; Nays, 4; Absent, 0; Excused, 1.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Darneille, Eide, Fain, Fraser, Frockt, Hargrove, Hatfield, Hewitt, Hill, Hobbs, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Voting nay: Senators Dansel, Hasegawa, Holmquist Newbry and Padden

Excused: Senator Ericksen

ENGROSSED SUBSTITUTE SENATE BILL NO. 6001, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MESSAGE FROM THE HOUSE

March 11, 2014

MR. PRESIDENT:

The House receded from its amendment(s) to ENGROSSED SUBSTITUTE SENATE BILL NO. 6265. Under suspension of the rules, the bill was returned to second reading for the purposes of amendment(s). The House adopted the following amendment(s): 6265-S.E AMH CODY H4543.1, and passed the bill as amended by the House.

0.On page 6, line 12, strike all of section 4 and insert the following:

"Sec. 4. RCW 70.02.010 and 2013 c 200 s 1 are each amended to read as follows:

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

(1) "Admission" has the same meaning as in RCW 71.05.020.

(2) "Audit" means an assessment, evaluation, determination, or investigation of a health care provider by a person not employed by or affiliated with the provider to determine compliance with:

(a) Statutory, regulatory, fiscal, medical, or scientific standards;

(b) A private or public program of payments to a health care provider; or

(3) "Commitment" has the same meaning as in RCW 71.05.020.

(4) "Custody" has the same meaning as in RCW 71.05.020.

(5) "Deidentified" means health information that does not identify an individual and with respect to which there is no reasonable basis to believe that the information can be used to identify an individual.

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

(7) "Designated mental health professional" has the same meaning as in RCW 71.05.020 or 71.34.020, as applicable.

(8) "Detention" or "detain" has the same meaning as in RCW 71.05.020.

(9) "Directory information" means information disclosing the presence, and for the purpose of identification, the name, location within a health care facility, and the general health condition of a particular patient who is a patient in a health care facility or who is currently receiving emergency health care in a health care facility.

(10) "Discharge" has the same meaning as in RCW 71.05.020.

(11) "Evaluation and treatment facility" has the same meaning as in RCW 71.05.020 or 71.34.020, as applicable.

(12) "Federal, state, or local law enforcement authorities" means an officer of any agency or authority in the United States, a state, a tribe, a territory, or a political subdivision of a state, a tribe, or a territory who is empowered by law to: (a) Investigate or conduct an official inquiry into a potential criminal violation of law; or (b) prosecute or otherwise conduct a criminal proceeding arising from an alleged violation of law.

(13) "General health condition" means the patient's health status described in terms of "critical," "poor," "fair," "good," "excellent," or terms denoting similar conditions.

(14) "Health care" means any care, service, or procedure provided by a health care provider:

(a) To diagnose, treat, or maintain a patient's physical or mental condition; or

(b) That affects the structure or any function of the human body.

(15) "Health care facility" means a hospital, clinic, nursing home, laboratory, office, or similar place where a health care provider provides health care to patients.

(16) "Health care information" means any information, whether oral or recorded in any form or medium, that identifies or can readily be associated with the identity of a patient and directly relates to the patient's health care, including a patient's deoxyribonucleic acid and identified sequence of chemical base pairs. The term includes any required accounting of disclosures of health care information.

(17) "Health care operations" means any of the following activities of a health care provider, health care facility, or third-party payor to the extent that the activities are related to functions that make an entity a health care provider, a health care facility, or a third-party payor:

(a) Conducting: Quality assessment and improvement activities, including outcomes evaluation and development of clinical guidelines, if the obtaining of generalizable knowledge is not the primary purpose of any studies resulting from such activities; population-based activities relating to improving health or reducing health care costs, protocol development, case management and care coordination, contacting of health care providers and patients with information about treatment alternatives; and related functions that do not include treatment;

(b) Reviewing the competence or qualifications of health care professionals, evaluating practitioner and provider performance and third-party payor performance, conducting training programs in which students, trainees, or practitioners in areas of health care learn under supervision to practice or improve their skills as health care providers, training of nonhealth care professionals, accreditation, certification, licensing, or credentialing activities;

(c) Underwriting, premium rating, and other activities relating to the creation, renewal, or replacement of a contract of health insurance or health benefits, and ceding, securing, or placing a contract for reinsurance of risk relating to claims for health care, including stop- loss insurance and excess of loss insurance, if any applicable legal requirements are met;

(d) Conducting or arranging for medical review, legal services, and auditing functions, including fraud and abuse detection and compliance programs;

(e) Business planning and development, such as conducting cost- management and planning-related analyses related to managing and operating the health care facility or third-party payor, including formulary development and administration, development, or improvement of methods of payment or coverage policies; and

(f) Business management and general administrative activities of the health care facility, health care provider, or third-party payor including, but not limited to:

(i) Management activities relating to implementation of and compliance with the requirements of this chapter;

(ii) Customer service, including the provision of data analyses for policy holders, plan sponsors, or other customers, provided that health care information is not disclosed to such policy holder, plan sponsor, or customer;

(iii) Resolution of internal grievances;

(iv) The sale, transfer, merger, or consolidation of all or part of a health care provider, health care facility, or third-party payor with another health care provider, health care facility, or third-party payor or an entity that following such activity will become a health care provider, health care facility, or third-party payor, and due diligence related to such activity; and

(v) Consistent with applicable legal requirements, creating deidentified health care information or a limited dataset for the benefit of the health care provider, health care facility, or third- party payor.

(18) "Health care provider" means a person who is licensed, certified, registered, or otherwise authorized by the law of this state to provide health care in the ordinary course of business or practice of a profession.

(19) "Human immunodeficiency virus" or "HIV" has the same meaning as in RCW 70.24.017.

(20) "Imminent" has the same meaning as in RCW 71.05.020.

(21) "Information and records related to mental health services" means a type of health care information that relates to all information and records((~~, including mental health treatment records,~~)) compiled, obtained, or maintained in the course of providing services by a mental health service agency((~~, as defined in this section~~)) or mental health professional to persons who are receiving or have received services for mental illness. The term includes mental health information contained in a medical bill, registration records, as defined in RCW 71.05.020, and all other records regarding the person maintained by the department, by regional support networks and their staff, and by treatment facilities. ((~~This may~~)) The term further includes documents of legal proceedings under chapter 71.05, 71.34, or 10.77 RCW, or somatic health care information. For health care information maintained by a hospital as defined in RCW 70.41.020 or a health care facility or health care provider that participates with a hospital in an organized health care arrangement defined under federal law, "information and records related to mental health services" is limited to information and records of services provided by a mental health professional or information and records of services created by a hospital-operated community mental health program as defined in RCW 71.24.025(6). The term does not include psychotherapy notes.

(22) "Information and records related to sexually transmitted diseases" means a type of health care information that relates to the identity of any person upon whom an HIV antibody test or other sexually transmitted infection test is performed, the results of such tests, and any information relating to diagnosis of or treatment for any confirmed sexually transmitted infections.

(23) "Institutional review board" means any board, committee, or other group formally designated by an institution, or authorized under federal or state law, to review, approve the initiation of, or conduct periodic review of research programs to assure the protection of the rights and welfare of human research subjects.

(24) "Legal counsel" has the same meaning as in RCW 71.05.020.

(25) "Local public health officer" has the same meaning as in RCW 70.24.017.

(26) "Maintain," as related to health care information, means to hold, possess, preserve, retain, store, or control that information.

(27) "Mental health professional" ((~~has the same meaning as in RCW 71.05.020~~)) means a psychiatrist, psychologist, psychiatric advanced registered nurse practitioner, psychiatric nurse, or social worker, and such other mental health professionals as may be defined by rules adopted by the secretary of social and health services under chapter 71.05 RCW, whether that person works in a private or public setting.

(28) "Mental health service agency" means a public or private agency that provides services to persons with mental disorders as defined under RCW 71.05.020 or 71.34.020 and receives funding from public sources. This includes evaluation and treatment facilities as defined in RCW 71.34.020, community mental health service delivery systems, or community mental health programs, as defined in RCW 71.24.025, and facilities conducting competency evaluations and restoration under chapter 10.77 RCW.

(29) (("Mental health treatment records" include registration records, as defined in RCW 71.05.020, and all other records concerning persons who are receiving or who at any time have received services for mental illness, which are maintained by the department, by regional support networks and their staff, and by treatment facilities. "Mental health treatment records" include mental health information contained in a medical bill including, but not limited to, mental health drugs, a mental health diagnosis, provider name, and dates of service stemming from a medical service. "Mental health treatment records" do not include notes or records maintained for personal use by a person providing treatment services for the department, regional support networks, or a treatment facility if the notes or records are not available to others.
(30))) "Minor" has the same meaning as in RCW 71.34.020.

((~~(31)~~)) (30) "Parent" has the same meaning as in RCW 71.34.020.

((~~(32)~~)) (31) "Patient" means an individual who receives or has received health care. The term includes a deceased individual who has received health care.

((~~(33)~~)) (32) "Payment" means:

(a) The activities undertaken by:

(i) A third-party payor to obtain premiums or to determine or fulfill its responsibility for coverage and provision of benefits by the third-party payor; or

(ii) A health care provider, health care facility, or third-party payor, to obtain or provide reimbursement for the provision of health care; and

(b) The activities in (a) of this subsection that relate to the patient to whom health care is provided and that include, but are not limited to:

(i) Determinations of eligibility or coverage, including coordination of benefits or the determination of cost-sharing amounts, and adjudication or subrogation of health benefit claims;

(ii) Risk adjusting amounts due based on enrollee health status and demographic characteristics;

(iii) Billing, claims management, collection activities, obtaining payment under a contract for reinsurance, including stop-loss insurance and excess of loss insurance, and related health care data processing;

(iv) Review of health care services with respect to medical necessity, coverage under a health plan, appropriateness of care, or justification of charges;

(v) Utilization review activities, including precertification and preauthorization of services, and concurrent and retrospective review of services; and

(vi) Disclosure to consumer reporting agencies of any of the following health care information relating to collection of premiums or reimbursement:

(A) Name and address;

(B) Date of birth;

(D) Payment history;

(E) Account number; and

(F) Name and address of the health care provider, health care facility, and/or third-party payor.

((~~(34)~~)) (33) "Person" means an individual, corporation, business trust, estate, trust, partnership, association, joint venture, government, governmental subdivision or agency, or any other legal or commercial entity.

((~~(35)~~)) (34) "Professional person" has the same meaning as in RCW 71.05.020.

((~~(36)~~)) (35) "Psychiatric advanced registered nurse practitioner" has the same meaning as in RCW 71.05.020.

((~~(37)~~)) (36) "Psychotherapy notes" means notes recorded, in any medium, by a mental health professional documenting or analyzing the contents of conversations during a private counseling session or group, joint, or family counseling session, and that are separated from the rest of the individual's medical record. The term excludes mediation prescription and monitoring, counseling session start and stop times, the modalities and frequencies of treatment furnished, results of clinical tests, and any summary of the following items: Diagnosis, functional status, the treatment plan, symptoms, prognosis, and progress to date.
(37) "Reasonable fee" means the charges for duplicating or searching the record, but shall not exceed sixty-five cents per page for the first thirty pages and fifty cents per page for all other pages. In addition, a clerical fee for searching and handling may be charged not to exceed fifteen dollars. These amounts shall be adjusted biennially in accordance with changes in the consumer price index, all consumers, for Seattle-Tacoma metropolitan statistical area as determined by the secretary of health. However, where editing of records by a health care provider is required by statute and is done by the provider personally, the fee may be the usual and customary charge for a basic office visit.

(38) "Release" has the same meaning as in RCW 71.05.020.

(39) "Resource management services" has the same meaning as in RCW 71.05.020.

(40) "Serious violent offense" has the same meaning as in RCW 71.05.020.

(41) "Sexually transmitted infection" or "sexually transmitted disease" has the same meaning as "sexually transmitted disease" in RCW 70.24.017.

(42) "Test for a sexually transmitted disease" has the same meaning as in RCW 70.24.017.

(43) "Third-party payor" means an insurer regulated under Title 48 RCW authorized to transact business in this state or other jurisdiction, including a health care service contractor, and health maintenance organization; or an employee welfare benefit plan, excluding fitness or wellness plans; or a state or federal health benefit program.

(44) "Treatment" means the provision, coordination, or management of health care and related services by one or more health care providers or health care facilities, including the coordination or management of health care by a health care provider or health care facility with a third party; consultation between health care providers or health care facilities relating to a patient; or the referral of a patient for health care from one health care provider or health care facility to another.

Sec. 5. RCW 70.02.020 and 2013 c 200 s 2 are each amended to read as follows:

(1) Except as authorized elsewhere in this chapter, a health care provider, an individual who assists a health care provider in the delivery of health care, or an agent and employee of a health care provider may not disclose health care information about a patient to any other person without the patient's written authorization. A disclosure made under a patient's written authorization must conform to the authorization.

(2) ((A patient has a right to receive an accounting of all disclosures of mental health treatment records except disclosures made under RCW 71.05.425.
(3))) A patient has a right to receive an accounting of disclosures of health care information((, except for mental health treatment records which are addressed in subsection (2) of this section,)) made by a health care provider or a health care facility in the six years before the date on which the accounting is requested, except for disclosures:

(a) To carry out treatment, payment, and health care operations;

(b) To the patient of health care information about him or her;

(d) Pursuant to an authorization where the patient authorized the disclosure of health care information about himself or herself;

(e) Of directory information;

(f) To persons involved in the patient's care;

(g) For national security or intelligence purposes if an accounting of disclosures is not permitted by law;

(h) To correctional institutions or law enforcement officials if an accounting of disclosures is not permitted by law; and

(i) Of a limited data set that excludes direct identifiers of the patient or of relatives, employers, or household members of the patient.

Sec. 6. RCW 70.02.050 and 2013 c 200 s 3 are each amended to read as follows:

(1) A health care provider or health care facility may disclose health care information, except for information and records related to sexually transmitted diseases which are addressed in RCW 70.02.220, about a patient without the patient's authorization to the extent a recipient needs to know the information, if the disclosure is:

(a) To a person who the provider or facility reasonably believes is providing health care to the patient;

(b) To any other person who requires health care information for health care education, or to provide planning, quality assurance, peer review, or administrative, legal, financial, actuarial services to, or other health care operations for or on behalf of the health care provider or health care facility; or for assisting the health care provider or health care facility in the delivery of health care and the health care provider or health care facility reasonably believes that the person:

(i) Will not use or disclose the health care information for any other purpose; and

(ii) Will take appropriate steps to protect the health care information;

(c) To any person if the health care provider or health care facility reasonably believes that disclosure will avoid or minimize an imminent danger to the health or safety of the patient or any other individual, however there is no obligation under this chapter on the part of the provider or facility to so disclose. The fact of admission to a provider for mental health services and all information and records compiled, obtained, or maintained in the course of providing mental health services to either voluntary or involuntary recipients of services at public or private agencies is not subject to disclosure unless disclosure is permitted in RCW 70.02.230; or

(d) ((~~To an official of a penal or other custodial institution in which the patient is detained; or~~
~~(e)~~)) For payment, including information necessary for a recipient to make a claim, or for a claim to be made on behalf of a recipient for aid, insurance, or medical assistance to which he or she may be entitled.

(2) A health care provider shall disclose health care information, except for information and records related to sexually transmitted diseases, unless otherwise authorized in RCW 70.02.220, about a patient without the patient's authorization if the disclosure is:

(a) To federal, state, or local public health authorities, to the extent the health care provider is required by law to report health care information; when needed to determine compliance with state or federal licensure, certification or registration rules or laws, or to investigate unprofessional conduct or ability to practice with reasonable skill and safety under chapter 18.130 RCW. Any health care information obtained under this subsection is exempt from public inspection and copying pursuant to chapter 42.56 RCW; or

(b) When needed to protect the public health.

Sec. 7. RCW 70.02.200 and 2013 c 200 s 4 are each amended to read as follows:

(1) In addition to the disclosures authorized by RCW 70.02.050 and 70.02.210, a health care provider or health care facility may disclose health care information, except for information and records related to sexually transmitted diseases and information related to mental health services which are addressed by RCW 70.02.220 through 70.02.260, about a patient without the patient's authorization, to:

(a) Any other health care provider or health care facility reasonably believed to have previously provided health care to the patient, to the extent necessary to provide health care to the patient, unless the patient has instructed the health care provider or health care facility in writing not to make the disclosure;

(b) Immediate family members of the patient, including a patient's state registered domestic partner, or any other individual with whom the patient is known to have a close personal relationship, if made in accordance with good medical or other professional practice, unless the patient has instructed the health care provider or health care facility in writing not to make the disclosure;

(c) A health care provider or health care facility who is the successor in interest to the health care provider or health care facility maintaining the health care information;

(d) A person who obtains information for purposes of an audit, if that person agrees in writing to:

(i) Remove or destroy, at the earliest opportunity consistent with the purpose of the audit, information that would enable the patient to be identified; and

(ii) Not to disclose the information further, except to accomplish the audit or report unlawful or improper conduct involving fraud in payment for health care by a health care provider or patient, or other unlawful conduct by the health care provider;

(e) Provide directory information, unless the patient has instructed the health care provider or health care facility not to make the disclosure;

(f) Fire, police, sheriff, or other public authority, that brought, or caused to be brought, the patient to the health care facility or health care provider if the disclosure is limited to the patient's name, residence, sex, age, occupation, condition, diagnosis, estimated or actual discharge date, or extent and location of injuries as determined by a physician, and whether the patient was conscious when admitted;

(g) Federal, state, or local law enforcement authorities and the health care provider, health care facility, or third-party payor believes in good faith that the health care information disclosed constitutes evidence of criminal conduct that occurred on the premises of the health care provider, health care facility, or third-party payor; ((~~and~~))

(h) Another health care provider, health care facility, or third- party payor for the health care operations of the health care provider, health care facility, or third-party payor that receives the information, if each entity has or had a relationship with the patient who is the subject of the health care information being requested, the health care information pertains to such relationship, and the disclosure is for the purposes described in RCW 70.02.010(17) (a) and (b); and
(i) An official of a penal or other custodial institution in which the patient is detained.

(2) In addition to the disclosures required by RCW 70.02.050 and 70.02.210, a health care provider shall disclose health care information, except for information related to sexually transmitted diseases and information related to mental health services which are addressed by RCW 70.02.220 through 70.02.260, about a patient without the patient's authorization if the disclosure is:

(a) To federal, state, or local law enforcement authorities to the extent the health care provider is required by law;

(b) To federal, state, or local law enforcement authorities, upon receipt of a written or oral request made to a nursing supervisor, administrator, or designated privacy official, in a case in which the patient is being treated or has been treated for a bullet wound, gunshot wound, powder burn, or other injury arising from or caused by the discharge of a firearm, or an injury caused by a knife, an ice pick, or any other sharp or pointed instrument which federal, state, or local law enforcement authorities reasonably believed to have been intentionally inflicted upon a person, or a blunt force injury that federal, state, or local law enforcement authorities reasonably believe resulted from a criminal act, the following information, if known:

(i) The name of the patient;

(ii) The patient's residence;

(iii) The patient's sex;

(iv) The patient's age;

(v) The patient's condition;

(vi) The patient's diagnosis, or extent and location of injuries as determined by a health care provider;

(vii) Whether the patient was conscious when admitted;

(viii) The name of the health care provider making the determination in (b)(v), (vi), and (vii) of this subsection;

(ix) Whether the patient has been transferred to another facility; and

(x) The patient's discharge time and date;

Sec. 8. RCW 70.02.210 and 2013 c 200 s 5 are each amended to read as follows:

(1)(a) A health care provider or health care facility may disclose health care information about a patient without the patient's authorization to the extent a recipient needs to know the information, if the disclosure is for use in a research project that an institutional review board has determined:

((~~(a)~~)) (i) Is of sufficient importance to outweigh the intrusion into the privacy of the patient that would result from the disclosure;

((~~(b)~~)) (ii) Is impracticable without the use or disclosure of the health care information in individually identifiable form;

((~~(c)~~)) (iii) Contains reasonable safeguards to protect the information from redisclosure;

((~~(d)~~)) (iv) Contains reasonable safeguards to protect against identifying, directly or indirectly, any patient in any report of the research project; and

((~~(e)~~)) (v) Contains procedures to remove or destroy at the earliest opportunity, consistent with the purposes of the project, information that would enable the patient to be identified, unless an institutional review board authorizes retention of identifying information for purposes of another research project.

(b) Disclosure under (a) of this subsection may include health care information and records of treatment programs related to chemical dependency addressed in chapter 70.96A RCW and as authorized by federal law.

(2) In addition to the disclosures required by RCW 70.02.050 and 70.02.200, a health care provider or health care facility shall disclose health care information about a patient without the patient's authorization if:

(a) The disclosure is to county coroners and medical examiners for the investigations of deaths;

(b) The disclosure is to a procurement organization or person to whom a body part passes for the purpose of examination necessary to assure the medical suitability of the body part; or

(c) The disclosure is to a person subject to the jurisdiction of the federal food and drug administration in regards to a food and drug administration-regulated product or activity for which that person has responsibility for quality, safety, or effectiveness of activities.

Sec. 9. RCW 70.02.230 and 2013 c 200 s 7 are each amended to read as follows:

(1) Except as provided in this section, RCW 70.02.050, 71.05.445, 70.96A.150, 74.09.295, 70.02.210, 70.02.240, 70.02.250, and 70.02.260, or pursuant to a valid authorization under RCW 70.02.030, the fact of admission to a provider for mental health services and all information and records compiled, obtained, or maintained in the course of providing mental health services to either voluntary or involuntary recipients of services at public or private agencies must be confidential.

(2) Information and records related to mental health services, other than those obtained through treatment under chapter 71.34 RCW, may be disclosed only:

(a) In communications between qualified professional persons to meet the requirements of chapter 71.05 RCW, in the provision of services or appropriate referrals, or in the course of guardianship proceedings if provided to a professional person:

(i) Employed by the facility;

(ii) Who has medical responsibility for the patient's care;

(iii) Who is a designated mental health professional;

(iv) Who is providing services under chapter 71.24 RCW;

(v) Who is employed by a state or local correctional facility where the person is confined or supervised; or

(vi) Who is providing evaluation, treatment, or follow-up services under chapter 10.77 RCW;

(b) When the communications regard the special needs of a patient and the necessary circumstances giving rise to such needs and the disclosure is made by a facility providing services to the operator of a facility in which the patient resides or will reside;

(c)(i) When the person receiving services, or his or her guardian, designates persons to whom information or records may be released, or if the person is a minor, when his or her parents make such a designation;

(ii) A public or private agency shall release to a person's next of kin, attorney, personal representative, guardian, or conservator, if any:

(A) The information that the person is presently a patient in the facility or that the person is seriously physically ill;

(B) A statement evaluating the mental and physical condition of the patient, and a statement of the probable duration of the patient's confinement, if such information is requested by the next of kin, attorney, personal representative, guardian, or conservator; and

(iii) Other information requested by the next of kin or attorney as may be necessary to decide whether or not proceedings should be instituted to appoint a guardian or conservator;

(d)(i) To the courts as necessary to the administration of chapter 71.05 RCW or to a court ordering an evaluation or treatment under chapter 10.77 RCW solely for the purpose of preventing the entry of any evaluation or treatment order that is inconsistent with any order entered under chapter 71.05 RCW.

(ii) To a court or its designee in which a motion under chapter 10.77 RCW has been made for involuntary medication of a defendant for the purpose of competency restoration.

(iii) Disclosure under this subsection is mandatory for the purpose of the federal health insurance portability and accountability act;

(e)(i) When a mental health professional is requested by a representative of a law enforcement or corrections agency, including a police officer, sheriff, community corrections officer, a municipal attorney, or prosecuting attorney to undertake an investigation or provide treatment under RCW 71.05.150, 10.31.110, or 71.05.153, the mental health professional shall, if requested to do so, advise the representative in writing of the results of the investigation including a statement of reasons for the decision to detain or release the person investigated. The written report must be submitted within seventy-two hours of the completion of the investigation or the request from the law enforcement or corrections representative, whichever occurs later.

(ii) Disclosure under this subsection is mandatory for the purposes of the federal health insurance portability and accountability act;

(f) To the attorney of the detained person;

(g) To the prosecuting attorney as necessary to carry out the responsibilities of the office under RCW 71.05.330(2), 71.05.340(1)(b), and 71.05.335. The prosecutor must be provided access to records regarding the committed person's treatment and prognosis, medication, behavior problems, and other records relevant to the issue of whether treatment less restrictive than inpatient treatment is in the best interest of the committed person or others. Information must be disclosed only after giving notice to the committed person and the person's counsel;

(h)(i) To appropriate law enforcement agencies and to a person, when the identity of the person is known to the public or private agency, whose health and safety has been threatened, or who is known to have been repeatedly harassed, by the patient. The person may designate a representative to receive the disclosure. The disclosure must be made by the professional person in charge of the public or private agency or his or her designee and must include the dates of commitment, admission, discharge, or release, authorized or unauthorized absence from the agency's facility, and only any other information that is pertinent to the threat or harassment. The agency or its employees are not civilly liable for the decision to disclose or not, so long as the decision was reached in good faith and without gross negligence.

(ii) Disclosure under this subsection is mandatory for the purposes of the federal health insurance portability and accountability act;

(i)(i) To appropriate corrections and law enforcement agencies all necessary and relevant information in the event of a crisis or emergent situation that poses a significant and imminent risk to the public. The mental health service agency or its employees are not civilly liable for the decision to disclose or not so long as the decision was reached in good faith and without gross negligence.

(ii) Disclosure under this subsection is mandatory for the purposes of the health insurance portability and accountability act;

(j) To the persons designated in RCW 71.05.425 for the purposes described in those sections;

(k) Upon the death of a person. The person's next of kin, personal representative, guardian, or conservator, if any, must be notified. Next of kin who are of legal age and competent must be notified under this section in the following order: Spouse, parents, children, brothers and sisters, and other relatives according to the degree of relation. Access to all records and information compiled, obtained, or maintained in the course of providing services to a deceased patient are governed by RCW 70.02.140;

(l) To mark headstones or otherwise memorialize patients interred at state hospital cemeteries. The department of social and health services shall make available the name, date of birth, and date of death of patients buried in state hospital cemeteries fifty years after the death of a patient;

(m) To law enforcement officers and to prosecuting attorneys as are necessary to enforce RCW 9.41.040(2)(a)(ii). The extent of information that may be released is limited as follows:

(i) Only the fact, place, and date of involuntary commitment, an official copy of any order or orders of commitment, and an official copy of any written or oral notice of ineligibility to possess a firearm that was provided to the person pursuant to RCW 9.41.047(1), must be disclosed upon request;

(ii) The law enforcement and prosecuting attorneys may only release the information obtained to the person's attorney as required by court rule and to a jury or judge, if a jury is waived, that presides over any trial at which the person is charged with violating RCW 9.41.040(2)(a)(ii);

(iii) Disclosure under this subsection is mandatory for the purposes of the federal health insurance portability and accountability act;

(n) When a patient would otherwise be subject to the provisions of this section and disclosure is necessary for the protection of the patient or others due to his or her unauthorized disappearance from the facility, and his or her whereabouts is unknown, notice of the disappearance, along with relevant information, may be made to relatives, the department of corrections when the person is under the supervision of the department, and governmental law enforcement agencies designated by the physician or psychiatric advanced registered nurse practitioner in charge of the patient or the professional person in charge of the facility, or his or her professional designee;

(o) Pursuant to lawful order of a court;

(p) To qualified staff members of the department, to the director of regional support networks, to resource management services responsible for serving a patient, or to service providers designated by resource management services as necessary to determine the progress and adequacy of treatment and to determine whether the person should be transferred to a less restrictive or more appropriate treatment modality or facility;

(q) Within the ((~~treatment facility~~)) mental health service agency where the patient is receiving treatment, confidential information may be disclosed to persons employed, serving in bona fide training programs, or participating in supervised volunteer programs, at the facility when it is necessary to perform their duties;

(r) Within the department as necessary to coordinate treatment for mental illness, developmental disabilities, alcoholism, or drug abuse of persons who are under the supervision of the department;

(s) To a licensed physician or psychiatric advanced registered nurse practitioner who has determined that the life or health of the person is in danger and that treatment without the information and records related to mental health services ((~~contained in the mental health treatment records~~)) could be injurious to the patient's health. Disclosure must be limited to the portions of the records necessary to meet the medical emergency;

(t) Consistent with the requirements of the federal health information portability and accountability act, to a licensed mental health professional or a health care professional licensed under chapter 18.71, 18.71A, 18.57, 18.57A, 18.79, or 18.36A RCW who is providing care to a person, or to whom a person has been referred for evaluation or treatment, to assure coordinated care and treatment of that person. Psychotherapy notes((~~, as defined in 45 C.F.R. Sec. 164.501,~~)) may not be released without authorization of the person who is the subject of the request for release of information;

(u) To administrative and office support staff designated to obtain medical records for those licensed professionals listed in (t) of this subsection;

(v) To a facility that is to receive a person who is involuntarily committed under chapter 71.05 RCW, or upon transfer of the person from one evaluation and treatment facility to another. The release of records under this subsection is limited to the ((~~mental health treatment records~~)) information and records related to mental health services required by law, a record or summary of all somatic treatments, and a discharge summary. The discharge summary may include a statement of the patient's problem, the treatment goals, the type of treatment which has been provided, and recommendation for future treatment, but may not include the patient's complete treatment record;

(w) To the person's counsel or guardian ad litem, without modification, at any time in order to prepare for involuntary commitment or recommitment proceedings, reexaminations, appeals, or other actions relating to detention, admission, commitment, or patient's rights under chapter 71.05 RCW;

(x) To staff members of the protection and advocacy agency or to staff members of a private, nonprofit corporation for the purpose of protecting and advocating the rights of persons with mental disorders or developmental disabilities. Resource management services may limit the release of information to the name, birthdate, and county of residence of the patient, information regarding whether the patient was voluntarily admitted, or involuntarily committed, the date and place of admission, placement, or commitment, the name and address of a guardian of the patient, and the date and place of the guardian's appointment. Any staff member who wishes to obtain additional information must notify the patient's resource management services in writing of the request and of the resource management services' right to object. The staff member shall send the notice by mail to the guardian's address. If the guardian does not object in writing within fifteen days after the notice is mailed, the staff member may obtain the additional information. If the guardian objects in writing within fifteen days after the notice is mailed, the staff member may not obtain the additional information;

(y) To all current treating providers of the patient with prescriptive authority who have written a prescription for the patient within the last twelve months. For purposes of coordinating health care, the department may release without written authorization of the patient, information acquired for billing and collection purposes as described in RCW 70.02.050(1)((~~(e)~~)) (d). The department shall notify the patient that billing and collection information has been released to named providers, and provide the substance of the information released and the dates of such release. The department may not release counseling, inpatient psychiatric hospitalization, or drug and alcohol treatment information without a signed written release from the client;

(z)(i) To the secretary of social and health services for either program evaluation or research, or both so long as the secretary adopts rules for the conduct of the evaluation or research, or both. Such rules must include, but need not be limited to, the requirement that all evaluators and researchers sign an oath of confidentiality substantially as follows:

"As a condition of conducting evaluation or research concerning persons who have received services from (fill in the facility, agency, or person) I, . . . . . ., agree not to divulge, publish, or otherwise make known to unauthorized persons or the public any information obtained in the course of such evaluation or research regarding persons who have received services such that the person who received such services is identifiable.

I recognize that unauthorized release of confidential information may subject me to civil liability under the provisions of state law.

/s/ . . . . . ."

(ii) Nothing in this chapter may be construed to prohibit the compilation and publication of statistical data for use by government or researchers under standards, including standards to assure maintenance of confidentiality, set forth by the secretary.

(3) Whenever federal law or federal regulations restrict the release of information contained in the ((~~treatment records~~)) information and records related to mental health services of any patient who receives treatment for chemical dependency, the department may restrict the release of the information as necessary to comply with federal law and regulations.

(4) Civil liability and immunity for the release of information about a particular person who is committed to the department of social and health services under RCW 71.05.280(3) and 71.05.320(3)(c) after dismissal of a sex offense as defined in RCW 9.94A.030, is governed by RCW 4.24.550.

(5) The fact of admission to a provider of mental health services, as well as all records, files, evidence, findings, or orders made, prepared, collected, or maintained pursuant to chapter 71.05 RCW are not admissible as evidence in any legal proceeding outside that chapter without the written authorization of the person who was the subject of the proceeding except as provided in RCW 70.02.260, in a subsequent criminal prosecution of a person committed pursuant to RCW 71.05.280(3) or 71.05.320(3)(c) on charges that were dismissed pursuant to chapter 10.77 RCW due to incompetency to stand trial, in a civil commitment proceeding pursuant to chapter 71.09 RCW, or, in the case of a minor, a guardianship or dependency proceeding. The records and files maintained in any court proceeding pursuant to chapter 71.05 RCW must be confidential and available subsequent to such proceedings only to the person who was the subject of the proceeding or his or her attorney. In addition, the court may order the subsequent release or use of such records or files only upon good cause shown if the court finds that appropriate safeguards for strict confidentiality are and will be maintained.

(6)(a) Except as provided in RCW 4.24.550, any person may bring an action against an individual who has willfully released confidential information or records concerning him or her in violation of the provisions of this section, for the greater of the following amounts:

(i) One thousand dollars; or

(ii) Three times the amount of actual damages sustained, if any.

(b) It is not a prerequisite to recovery under this subsection that the plaintiff suffered or was threatened with special, as contrasted with general, damages.

(c) Any person may bring an action to enjoin the release of confidential information or records concerning him or her or his or her ward, in violation of the provisions of this section, and may in the same action seek damages as provided in this subsection.

(d) The court may award to the plaintiff, should he or she prevail in any action authorized by this subsection, reasonable attorney fees in addition to those otherwise provided by law.

(e) If an action is brought under this subsection, no action may be brought under RCW 70.02.170.

Sec. 10. RCW 70.02.270 and 2013 c 200 s 11 are each amended to read as follows:

(1) No person who receives health care information for health care education, or to provide planning, quality assurance, peer review, or administrative, legal, financial, or actuarial services, or other health care operations for or on behalf of a health care provider or health care facility, may use or disclose any health care information received from the health care provider or health care facility in any manner that ((~~is inconsistent with the duties of the health care provider or health care facility under this chapter~~)) would violate the requirements of this chapter if performed by the health care provider or health care facility.

(2) A health care provider or health care facility that has a contractual relationship with a person to provide services described under subsection (1) of this section ((~~must~~)) may terminate the contractual relationship with the person if the health care provider or health care facility learns that the person has engaged in a pattern of activity that violates the person's duties under subsection (1) of this section, unless the person took reasonable steps to correct the breach of confidentiality or has discontinued the violating activity.

Sec. 11. RCW 70.02.280 and 2013 c 200 s 12 are each amended to read as follows:

A health care provider, health care facility, and their assistants, employees, agents, and contractors may not:

(1) Use or disclose health care information for marketing or fund- raising purposes, unless permitted by federal law; or

(2) ((Sell health care information to a third party, except in a form that is deidentified and aggregated; or
(3))) Sell health care information to a third party, except ((for the following purposes)):

(a) For purposes of treatment or payment;

(b) For purposes of sale, transfer, merger, or consolidation of a business;

(d) As disclosures are required by law;

(e) For purposes of providing access to or accounting of disclosures to an individual;

(f) For public health purposes;

(g) For research;

(h) With an individual's authorization;

(i) Where a reasonable cost-based fee is paid to prepare and transmit health information, where authority to disclose the information is provided in this chapter; or
(j) In a format that is deidentified and aggregated.

Sec. 12. RCW 70.02.310 and 2013 c 200 s 15 are each amended to read as follows:

(1) Resource management services shall establish procedures to provide reasonable and timely access to information and records related to mental health services for an individual ((~~mental health treatment records~~)). However, access may not be denied at any time to records of all medications and somatic treatments received by the person.

(2) Following discharge, a person who has received mental health services has a right to a complete record of all medications and somatic treatments prescribed during evaluation, admission, or commitment and to a copy of the discharge summary prepared at the time of his or her discharge. A reasonable and uniform charge for reproduction may be assessed.

(3) ((~~Mental health treatment records~~)) Information and records related to mental health services may be modified prior to inspection to protect the confidentiality of other patients or the names of any other persons referred to in the record who gave information on the condition that his or her identity remain confidential. Entire documents may not be withheld to protect such confidentiality.

(4) At the time of discharge resource management services shall inform all persons who have received mental health services of their rights as provided in this chapter and RCW 71.05.620.

Sec. 13. RCW 70.02.340 and 2013 c 200 s 18 are each amended to read as follows:

The department of social and health services shall adopt rules related to the disclosure of ((~~mental health treatment records~~)) information and records related to mental health services in this chapter.

Sec. 14. RCW 71.05.445 and 2013 c 200 s 31 are each amended to read as follows:

(1)(a) When a mental health service provider conducts its initial assessment for a person receiving court-ordered treatment, the service provider shall inquire and shall be told by the offender whether he or she is subject to supervision by the department of corrections.

(b) When a person receiving court-ordered treatment or treatment ordered by the department of corrections discloses to his or her mental health service provider that he or she is subject to supervision by the department of corrections, the mental health service provider shall notify the department of corrections that he or she is treating the offender and shall notify the offender that his or her community corrections officer will be notified of the treatment, provided that if the offender has received relief from disclosure pursuant to RCW 9.94A.562, 70.96A.155, or 71.05.132 and the offender has provided the mental health service provider with a copy of the order granting relief from disclosure pursuant to RCW 9.94A.562, 70.96A.155, or 71.05.132, the mental health service provider is not required to notify the department of corrections that the mental health service provider is treating the offender. The notification may be written or oral and shall not require the consent of the offender. If an oral notification is made, it must be confirmed by a written notification. For purposes of this section, a written notification includes notification by e-mail or facsimile, so long as the notifying mental health service provider is clearly identified.

(2) The information to be released to the department of corrections shall include all relevant records and reports, as defined by rule, necessary for the department of corrections to carry out its duties.

(3) The department and the department of corrections, in consultation with regional support networks, mental health service providers as defined in RCW 71.05.020, mental health consumers, and advocates for persons with mental illness, shall adopt rules to implement the provisions of this section related to the type and scope of information to be released. These rules shall:

(a) Enhance and facilitate the ability of the department of corrections to carry out its responsibility of planning and ensuring community protection with respect to persons subject to sentencing under chapter 9.94A or 9.95 RCW, including accessing and releasing or disclosing information of persons who received mental health services as a minor; and

(b) Establish requirements for the notification of persons under the supervision of the department of corrections regarding the provisions of this section.

(4) The information received by the department of corrections under this section shall remain confidential and subject to the limitations on disclosure outlined in chapter 71.05 RCW, except as provided in RCW 72.09.585.

(5) No mental health service provider or individual employed by a mental health service provider shall be held responsible for information released to or used by the department of corrections under the provisions of this section or rules adopted under this section.

(6) Whenever federal law or federal regulations restrict the release of information ((~~contained in the treatment records of~~)) and records related to mental health services for any patient who receives treatment for alcoholism or drug dependency, the release of the information may be restricted as necessary to comply with federal law and regulations.

(7) This section does not modify the terms and conditions of disclosure of information related to sexually transmitted diseases under chapter 70.24 RCW.

(8) The department shall, subject to available resources, electronically, or by the most cost-effective means available, provide the department of corrections with the names, last dates of services, and addresses of specific regional support networks and mental health service providers that delivered mental health services to a person subject to chapter 9.94A or 9.95 RCW pursuant to an agreement between the departments.

Sec. 15. RCW 70.02.030 and 2005 c 468 s 3 are each amended to read as follows:

(1) A patient may authorize a health care provider or health care facility to disclose the patient's health care information. A health care provider or health care facility shall honor an authorization and, if requested, provide a copy of the recorded health care information unless the health care provider or health care facility denies the patient access to health care information under RCW 70.02.090.

(2) A health care provider or health care facility may charge a reasonable fee for providing the health care information and is not required to honor an authorization until the fee is paid.

(3) To be valid, a disclosure authorization to a health care provider or health care facility shall:

(a) Be in writing, dated, and signed by the patient;

(b) Identify the nature of the information to be disclosed;

(c) Identify the name and institutional affiliation of the person or class of persons to whom the information is to be disclosed;

(d) Identify the provider or class of providers who are to make the disclosure;

(e) Identify the patient; and

(f) Contain an expiration date or an expiration event that relates to the patient or the purpose of the use or disclosure.

(4) Unless disclosure without authorization is otherwise permitted under RCW 70.02.050 or the federal health insurance portability and accountability act of 1996 and its implementing regulations, an authorization may permit the disclosure of health care information to a class of persons that includes:

(a) Researchers if the health care provider or health care facility obtains the informed consent for the use of the patient's health care information for research purposes; or

(b) Third-party payors if the information is only disclosed for payment purposes.

(5) Except as provided by this chapter, the signing of an authorization by a patient is not a waiver of any rights a patient has under other statutes, the rules of evidence, or common law.

(6) When an authorization permits the disclosure of health care information to a financial institution or an employer of the patient for purposes other than payment, the authorization as it pertains to those disclosures shall expire ((~~ninety days~~)) one year after the signing of the authorization, unless the authorization is renewed by the patient.

(7) A health care provider or health care facility shall retain the original or a copy of each authorization or revocation in conjunction with any health care information from which disclosures are made.

(8) Where the patient is under the supervision of the department of corrections, an authorization signed pursuant to this section for health care information related to mental health or drug or alcohol treatment expires at the end of the term of supervision, unless the patient is part of a treatment program that requires the continued exchange of information until the end of the period of treatment.

Sec. 16. RCW 70.02.045 and 2000 c 5 s 2 are each amended to read as follows:

Third-party payors shall not release health care information disclosed under this chapter, except ((~~to the extent that health care providers are authorized to do so under RCW 70.02.050~~)) as permitted under this chapter.

NEW SECTION. Sec. 17. Sections 1 through 7 and 9 through 16 of this act take effect July 1, 2014.

NEW SECTION. Sec. 18. Section 8 of this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator Frockt moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6265.

Senators Frockt and Becker spoke in favor of the motion.

The President declared the question before the Senate to be the motion by Senator Frockt that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6265.

The motion by Senator Frockt carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6265 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6265, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6265, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Rolfes, Schoesler, Sheldon and Tom

Excused: Senator Ericksen

ENGROSSED SUBSTITUTE SENATE BILL NO. 6265, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The House passed ENGROSSED SUBSTITUTE SENATE BILL NO. 6440 with the following amendment(s): 6440-S.E AMH HUNT H4547.4

0.Strike everything after the enacting clause and insert the following:

"PART I
Tax Performance Statement

NEW SECTION. Sec. 101. (1) The legislature finds that current law taxes natural gas as a traditional home heating or electric generation fuel while not taking into account the benefits of natural gas use as a transportation fuel. The legislature further finds that the construction and operation of a natural gas liquefaction plant and compressed natural gas refueling stations as well as the ongoing use of compressed and liquefied natural gas will lead to positive job creation, economic development, environmental benefits, lower fuel costs, and increased tax revenues to the state. The legislature further finds that it is sound tax policy to provide uniform tax treatment of natural gas used as a transportation fuel, regardless of whether the taxpayer providing the natural gas is a gas distribution business or not, so as to prevent any particular entity from receiving a competitive advantage solely through a structural inefficiency in the tax code.

(2)(a) This subsection is the tax performance statement for this act. The performance statement is only intended to be used for subsequent evaluation of the tax changes made in this act. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.

(b) The legislature categorizes the tax changes in this act as changes intended to accomplish the general purposes indicated in RCW 82.32.808(2) (c) and (d).

(c) It is the legislature's specific public policy objectives to promote job creation and positive economic development; lower carbon dioxide, sulfur dioxide, nitrogen dioxide, and particulate emissions; and secure optimal liquefied natural gas pricing for the state of Washington and other public entities.

(d) To measure the effectiveness of the exemption provided in this act in achieving the specific public policy objective described in (c) of this subsection, the joint legislative audit and review committee must evaluate the following:

(i) The number of employment positions and wages at a natural gas liquefaction facility located in Washington and operated by a gas distribution business where some or all of the liquefied natural gas is sold for use as a transportation fuel. If the average number of employment positions at the liquefaction facility once it is operationally complete equals or exceeds eighteen and average annual wages for employment positions at the facility exceed thirty-five thousand dollars, it is presumed that the public policy objective of job creation has been achieved.

(ii) The estimated total cost of construction of a liquefaction plant by a gas distribution company, including costs for machinery and equipment. If the total cost equals or exceeds two hundred fifty million dollars, it is presumed that the public policy objective of positive economic development has been achieved.

(iii) The estimated fuel savings by the Washington state ferry system and other public entities through the use of liquefied natural gas purchased from a gas distribution business.

(iv) The estimated reduction in carbon dioxide, sulfur dioxide, nitrogen dioxide, and particulate emissions, resulting from the use of liquefied natural gas and compressed natural gas as a transportation fuel where the natural gas is sold by a gas distribution business. The emissions of liquefied and compressed natural gas must be specifically compared with an equivalent amount of diesel fuel. If the estimated annual reduction in emissions exceeds the following benchmarks, it is presumed that the public policy objective of reducing emissions has been achieved:

(A) Three hundred million pounds of carbon dioxide;

(B) Two hundred thousand pounds of particulates;

(D) Four hundred fifty thousand pounds of nitrogen dioxide.

(e)(i) The following data sources are intended to provide the informational basis for the evaluation under (d) of this subsection:

(A) Employment data provided by the state employment security department;

(B) Ferry fuel purchasing data provided by the state department of transportation;

(D) Information provided by a gas distribution business on the annual report required under RCW 82.32.534.

(ii) In addition to the data source described under (e)(i) of this subsection, the joint legislative audit and review committee may use any other data it deems necessary in performing the evaluation under (d) of this subsection.

(3) A gas distribution business claiming the exemption under RCW 82.08.02565 or 82.12.02565 must file the annual report under RCW 82.32.534 or any successor document. In addition to the information contained in the report, the report must also include the amount of liquefied natural gas and compressed natural gas sold by the gas distribution business as a transportation fuel. A gas distribution business is not required to file the annual survey under RCW 82.32.585, as would otherwise be required under RCW 82.32.808(5).

(4) The joint legislative audit and review committee must perform the review required in this section in a manner consistent with its tax preference review process under chapter 43.136 RCW. The committee must perform the review in calendar year 2025.

PART II
Fuel Taxes and Sales Taxes

Sec. 201. RCW 82.38.030 and 2013 c 225 s 103 are each amended to read as follows:

(1) There is levied and imposed upon fuel licensees a tax at the rate of twenty-three cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature.

(2) Beginning July 1, 2003, an additional and cumulative tax rate of five cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature is imposed on fuel licensees. This subsection (2) expires when the bonds issued for transportation 2003 projects are retired.

(3) Beginning July 1, 2005, an additional and cumulative tax rate of three cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature is imposed on fuel licensees.

(4) Beginning July 1, 2006, an additional and cumulative tax rate of three cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature is imposed on fuel licensees.

(5) Beginning July 1, 2007, an additional and cumulative tax rate of two cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature is imposed on fuel licensees.

(6) Beginning July 1, 2008, an additional and cumulative tax rate of one and one-half cents per each gallon of fuel((~~, or each one hundred cubic feet of compressed natural gas~~)), measured at standard pressure and temperature is imposed on fuel licensees.

(7) Taxes are imposed when:

(a) Fuel is removed in this state from a terminal if the fuel is removed at the rack unless the removal is by a licensed supplier or distributor for direct delivery to a destination outside of the state, or the removal is by a fuel supplier for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(b) Fuel is removed in this state from a refinery if either of the following applies:

(i) The removal is by bulk transfer and the refiner or the owner of the fuel immediately before the removal is not a licensed supplier; or

(ii) The removal is at the refinery rack unless the removal is to a licensed supplier or distributor for direct delivery to a destination outside of the state, or the removal is to a licensed supplier for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320;

(c) Fuel enters into this state for sale, consumption, use, or storage, unless the fuel enters this state for direct delivery to an international fuel tax agreement licensee under RCW 82.38.320, if either of the following applies:

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

(ii) The entry is not by bulk transfer;

(d) Fuel enters this state by means outside the bulk transfer- terminal system and is delivered directly to a licensed terminal unless the owner is a licensed distributor or supplier;

(e) Fuel is sold or removed in this state to an unlicensed entity unless there was a prior taxable removal, entry, or sale of the fuel;

(f) Blended fuel is removed or sold in this state by the blender of the fuel. The number of gallons of blended fuel subject to tax is the difference between the total number of gallons of blended fuel removed or sold and the number of gallons of previously taxed fuel used to produce the blended fuel;

(g) Dyed special fuel is used on a highway, as authorized by the internal revenue code, unless the use is exempt from the fuel tax;

(h) Dyed special fuel is held for sale, sold, used, or is intended to be used in violation of this chapter;

(i) Special fuel purchased by an international fuel tax agreement licensee under RCW 82.38.320 is used on a highway; and

(j) Fuel is sold by a licensed fuel supplier to a fuel distributor or fuel blender and the fuel is not removed from the bulk transfer- terminal system.

Sec. 202. RCW 82.38.075 and 2013 c 225 s 110 are each amended to read as follows:

(1) To encourage the use of nonpolluting fuels, an annual license fee in lieu of the tax imposed by RCW 82.38.030 is imposed upon the use of liquefied natural gas, compressed natural gas, or propane used in any motor vehicle. The annual license fee must be based upon the following schedule and formula:

VEHICLE TONNAGE (GVW)			FEE
0	-	6,000	$ 45
6,001	-	10,000	$ 45
10,001	-	18,000	$ 80
18,001	-	28,000	$110
28,001	-	36,000	$150
36,001	and above		$250

(2) To determine the annual license fee for a registration year, the appropriate dollar amount in the schedule is multiplied by the fuel tax rate per gallon effective on July 1st of the preceding calendar year and the product is divided by 12 cents.

(3) The department, in addition to the resulting fee, must charge an additional fee of five dollars as a handling charge for each license issued.

(4) The vehicle tonnage fee must be prorated so the annual license will correspond with the staggered vehicle licensing system.

(5) A decal or other identifying device issued upon payment of the annual fee must be displayed as prescribed by the department as authority to purchase this fuel.

(6) Persons selling or dispensing natural gas or propane may not sell or dispense this fuel for their own use or the use of others into tanks of vehicles powered by this fuel which do not display a valid decal or other identifying device.

      (7) Commercial motor vehicles registered in a foreign jurisdiction under the provisions of the international registration plan are subject to the annual fee.
      (8) Motor vehicles registered in a foreign jurisdiction, except those registered under the international registration plan under chapter 46.87 RCW, are exempt from this section.
      (9) Vehicles registered in jurisdictions outside the state of Washington are exempt from this section.

((~~(8)~~)) (10) Any person selling or dispensing liquefied natural gas, compressed natural gas, or propane into the tank of a motor vehicle powered by this fuel, except as prescribed in this chapter, is subject to the penalty provisions of this chapter.

Sec. 203. RCW 82.80.010 and 2013 c 225 s 641 are each amended to read as follows:

(1) ((~~For purposes of this section:~~)) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.38.020((~~, respectively,~~)) and sells or distributes the fuel into a county((;)).

(b) "Person" has the same meaning as in RCW 82.04.030.

(2) Subject to the conditions of this section, any county may levy, by approval of its legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election, additional excise taxes equal to ten percent of the statewide ((~~motor vehicle fuel tax rate under RCW 82.38.030 on each gallon of motor vehicle fuel as defined in RCW 82.38.020 and on each gallon of special fuel~~)) fuel tax rates under RCW 82.38.030 on motor vehicle fuel and special fuel as defined in RCW 82.38.020 sold within the boundaries of the county. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the county fuel excise tax. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state the tax rate that is proposed. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section must be the first day of January, April, July, or October.

(3) The local option motor vehicle fuel tax on ((~~each gallon of~~)) motor vehicle fuel and on ((~~each gallon of~~)) special fuel is imposed upon the distributor of the fuel.

(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.

(5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.

(6) Before the effective date of the imposition of the fuel taxes under this section, a county must contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.

(7) The state treasurer must distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b) and under the conditions and limitations provided in RCW 82.80.080.

(8) The proceeds of the additional excise taxes levied under this section must be used strictly for transportation purposes in accordance with RCW 82.80.070.

(9) A county may not levy the tax under this section if they are levying the tax in RCW 82.80.110 or if they are a member of a regional transportation investment district levying the tax in RCW 82.80.120.

Sec. 204. RCW 82.80.110 and 2013 c 225 s 642 are each amended to read as follows:

(1) ((~~For purposes of this section:~~)) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(b) "Person" has the same meaning as in RCW 82.04.030.

(2) For purposes of dedication to a regional transportation investment district plan under chapter 36.120 RCW, subject to the conditions of this section, a county may levy additional excise taxes equal to ten percent of the statewide ((~~motor vehicle fuel tax rate under RCW 82.38.030 on each gallon of motor vehicle fuel as defined in RCW 82.38.020 and on each gallon of special fuel~~)) fuel tax rates under RCW 82.38.030 on motor vehicle fuel and special fuel as defined in RCW ((~~82.32.020 [82.38.020]~~)) 82.38.020 sold within the boundaries of the county. The additional excise tax is subject to the approval of the county's legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election. An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state that the revenues from the tax will be used for a regional transportation investment district plan. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the county fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.

(3) The local option motor vehicle fuel tax on ((~~each gallon of~~)) motor vehicle fuel and on ((~~each gallon of~~)) special fuel is imposed upon the distributor of the fuel.

(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.

(5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.

(7) The state treasurer must distribute monthly to the county levying the tax as part of a regional transportation investment plan, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).

(8) The proceeds of the additional taxes levied by a county in this section, to be used as a part of a regional transportation investment plan, must be used in accordance with chapter 36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

(9) A county may not levy the tax under this section if they are a member of a regional transportation investment district that is levying the tax in RCW 82.80.120 or the county is levying the tax in RCW 82.80.010.

Sec. 205. RCW 82.80.120 and 2013 c 225 s 643 are each amended to read as follows:

(1) ((~~For purposes of this section:~~)) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.

(b) "Person" has the same meaning as in RCW 82.04.030;

(2) A regional transportation investment district under chapter 36.120 RCW, subject to the conditions of this section, may levy additional excise taxes equal to ten percent of the statewide ((~~motor vehicle fuel tax rate under RCW 82.38.030 on each gallon of motor vehicle fuel as defined in RCW 82.38.020 and on each gallon of special fuel~~)) fuel tax rates under RCW 82.38.030 on motor vehicle fuel and special fuel as defined in RCW 82.38.020 sold within the boundaries of the district. The additional excise tax is subject to the approval of a majority of the voters within the district boundaries. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapter 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.

(3) The local option motor vehicle fuel tax on ((~~each gallon of~~)) motor vehicle fuel and on ((~~each gallon of~~)) special fuel is imposed upon the distributor of the fuel.

(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the district to a retail outlet, bulk fuel user, or ultimate user of the fuel.

(5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.

(6) Before the effective date of the imposition of the fuel taxes under this section, a district must contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.

(7) The state treasurer must distribute monthly to the district levying the tax as part of the regional transportation investment district plan, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).

(8) The proceeds of the additional taxes levied by a district in this section, to be used as a part of a regional transportation investment district plan, must be used in accordance with chapter 36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

(9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax in this section if a member county is levying the tax in RCW 82.80.010 or 82.80.110.

Sec. 206. RCW 82.47.010 and 1998 c 176 s 85 are each amended to read as follows:

      ((The definitions set forth in this section shall apply throughout this chapter unless the context clearly requires otherwise.
      (1) "Motor vehicle fuel" has the meaning given in RCW 82.36.010.
      (2) "Special fuel" has the meaning given in RCW 82.38.020.
      (3) "Motor vehicle" has the meaning given in RCW 82.36.010.))

For purposes of this chapter, unless the context clearly requires otherwise, "fuel," "motor vehicle fuel," "special fuel," and "motor vehicle" have the meaning given in RCW 82.38.020.

Sec. 207. RCW 46.16A.060 and 2011 c 114 s 6 are each amended to read as follows:

(1) The department, county auditor or other agent, or subagent appointed by the director may not issue or renew a motor vehicle registration or change the registered owner of a registered vehicle for any motor vehicle required to be inspected under chapter 70.120 RCW, unless the application for issuance or renewal is: (a) Accompanied by a valid certificate of compliance or a valid certificate of acceptance issued as required under chapter 70.120 RCW; or (b) exempt, as described in subsection (2) of this section. The certificates must have a date of validation that is within twelve months of the assigned registration renewal date. Certificates for fleet or owner tested diesel vehicles may have a date of validation that is within twelve months of the assigned registration renewal date.

(2) The following motor vehicles are exempt from emission test requirements:

(a) Motor vehicles that are less than five years old or more than twenty-five years old;

(b) Motor vehicles that are a 2009 model year or newer;

(c) Motor vehicles powered exclusively by electricity, propane, compressed natural gas, liquefied natural gas, or liquid petroleum gas;

(d) Motorcycles as defined in RCW 46.04.330 and motor-driven cycles as defined in RCW 46.04.332;

(e) Farm vehicles as defined in RCW 46.04.181;

(f) Street rod vehicles as defined in RCW 46.04.572 and custom vehicles as defined in RCW 46.04.161;

(g) Used vehicles that are offered for sale by a motor vehicle dealer licensed under chapter 46.70 RCW;

(h) Classes of motor vehicles exempted by the director of the department of ecology; and

(i) Hybrid motor vehicles that obtain a rating by the environmental protection agency of at least fifty miles per gallon of gas during city driving. For purposes of this section, a hybrid motor vehicle is one that uses propulsion units powered by both electricity and gas.

(3) The department of ecology ((~~shall~~)) must provide information to motor vehicle owners:

(a) Regarding the boundaries of emission contributing areas and restrictions established under this section that apply to vehicles registered in such areas; and

(b) On the relationship between motor vehicles and air pollution and steps motor vehicle owners should take to reduce motor vehicle related air pollution.

(4) The department of licensing ((~~shall~~)) must:

(a) Notify all registered motor vehicle owners affected by the emission testing program that they must have an emission test to renew their registration;

(b) Adopt rules implementing and enforcing this section, except for subsection (2)(e) of this section, as specified in chapter 34.05 RCW.

(5) A motor vehicle may not be registered, leased, rented, or sold for use in the state, starting with the model year as provided in RCW 70.120A.010, unless the vehicle:

(a) Has seven thousand five hundred miles or more; or

(b)(i) Is consistent with the vehicle emission standards and carbon dioxide equivalent emission standards adopted by the department of ecology; and

(ii) Has a California certification label for all emission standards, and carbon dioxide equivalent emission standards necessary to meet fleet average requirements.

(6) The department of licensing, in consultation with the department of ecology, may adopt rules necessary to implement this section and may provide for reasonable exemptions to these requirements. The department of ecology may exempt public safety vehicles from meeting the standards where the department finds that vehicles necessary to meet the needs of public safety agencies are not otherwise reasonably available.

Sec. 208. RCW 46.37.467 and 1995 c 369 s 23 are each amended to read as follows:

(1) Every automobile, truck, motorcycle, motor home, or off-road vehicle that is fueled by an alternative fuel source ((~~shall~~)) must bear a reflective placard issued by the national fire protection association indicating that the vehicle is so fueled. Violation of this subsection is a traffic infraction.

(2) As used in this section "alternative fuel source" includes propane, compressed natural gas, liquefied natural gas, liquid petroleum gas, or any chemically similar gas but does not include gasoline or diesel fuel.

(3) If a placard for a specific alternative fuel source has not been issued by the national fire protection association, a placard issued by the chief of the Washington state patrol, through the director of fire protection, ((~~shall be~~)) is required. The chief of the Washington state patrol, through the director of fire protection, ((~~shall~~)) must develop rules for the design, size, and placement of the placard which ((~~shall~~)) remains effective until a specific placard is issued by the national fire protection association.

NEW SECTION. Sec. 209. (1) The department of licensing must convene a work group that includes, at a minimum, representatives from the department of transportation, the trucking industry, manufacturers of compressed natural gas and liquefied natural gas, and any other stakeholders as deemed necessary, for the following purposes:

(a) To evaluate the annual license fee in lieu of fuel tax under RCW 82.38.075 to determine a fee that more closely represents the average consumption of vehicles by weight and to make recommendations to the transportation committees of the legislature by December 1, 2014, on an updated fee schedule.

(b) To develop a transition plan to move vehicles powered by liquefied natural gas, compressed natural gas, and propane from the annual license fee in lieu of fuel tax to the fuel tax under RCW 82.38.030. The transition plan must incorporate stakeholder feedback and must include draft legislation and cost and revenue estimates. The transition plan must be submitted to the transportation committees of the legislature by December 1, 2015.

(2) The department of revenue must convene a work group that includes, at a minimum, representatives from the department of transportation, the marine shipping industry, manufacturers of liquefied natural gas, and any other stakeholders as deemed necessary, for the purpose of examining the appropriate level and manner of taxing liquefied natural gas used for marine vessel transportation. The department must make recommendations to the fiscal committees of the legislature by December 1, 2025.

PART III
State and Local Business Taxes

NEW SECTION. Sec. 301. A new section is added to chapter 82.16 RCW to read as follows:

(1) The provisions of this chapter do not apply to sales by a gas distribution business of:

(a) Compressed natural gas or liquefied natural gas, where the compressed natural gas or liquefied natural gas is to be sold or used as transportation fuel; or

(b) Natural gas from which the buyer manufactures compressed natural gas or liquefied natural gas, where the compressed natural gas or liquefied natural gas is to be sold or used as transportation fuel.

(2) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.

(3) For the purposes of this section, "transportation fuel" means fuel for the generation of power to propel a motor vehicle as defined in RCW 46.04.320, a vessel as defined in RCW 88.02.310, or a locomotive or railroad car.

Sec. 302. RCW 82.04.310 and 2007 c 58 s 1 are each amended to read as follows:

(1) This chapter ((~~shall~~)) does not apply to any person in respect to a business activity with respect to which tax liability is specifically imposed under the provisions of chapter 82.16 RCW including amounts derived from activities for which a deduction is allowed under RCW 82.16.050. The exemption in this subsection does not apply to sales of natural gas, including compressed natural gas and liquefied natural gas, by a gas distribution business, if such sales are exempt from the tax imposed under chapter 82.16 RCW as provided in section 301 of this act.

(2) This chapter does not apply to amounts received by any person for the sale of electrical energy for resale within or outside the state.

(3)(a) This chapter does not apply to amounts received by any person for the sale of natural or manufactured gas in a calendar year if that person sells within the United States a total amount of natural or manufactured gas in that calendar year that is no more than twenty percent of the amount of natural or manufactured gas that it consumes within the United States in the same calendar year.

(b) For purposes of determining whether a person has sold within the United States a total amount of natural or manufactured gas in a calendar year that is no more than twenty percent of the amount of natural or manufactured gas that it consumes within the United States in the same calendar year, the following transfers of gas are not considered to be the sale of natural or manufactured gas:

(i) The transfer of any natural or manufactured gas as a result of the acquisition of another business, through merger or otherwise; or

(ii) The transfer of any natural or manufactured gas accomplished solely to comply with federal regulatory requirements imposed on the pipeline transportation of such gas when it is shipped by a third-party manager of a person's pipeline transportation.

Sec. 303. RCW 82.04.120 and 2011 c 23 s 3 are each amended to read as follows:

(1) "To manufacture" embraces all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different or useful substance or article of tangible personal property is produced for sale or commercial or industrial use, and includes:

(a) The production or fabrication of special made or custom made articles;

(b) The production or fabrication of dental appliances, devices, restorations, substitutes, or other dental laboratory products by a dental laboratory or dental technician;

(d) Crushing and/or blending of rock, sand, stone, gravel, or ore; and
(e) The production of compressed natural gas or liquefied natural gas for use as a transportation fuel as defined in section 301 of this act.

(2) "To manufacture" does not include:

(a) Conditioning of seed for use in planting; cubing hay or alfalfa;

(b) Activities which consist of cutting, grading, or ice glazing seafood which has been cooked, frozen, or canned outside this state;

(d) Packing of agricultural products, including sorting, washing, rinsing, grading, waxing, treating with fungicide, packaging, chilling, or placing in controlled atmospheric storage;

(e) The production of digital goods;

(f) The production of computer software if the computer software is delivered from the seller to the purchaser by means other than tangible storage media, including the delivery by use of a tangible storage media where the tangible storage media is not physically transferred to the purchaser; and

(g) Except as provided in subsection (1)(e) of this section, any activity that is integral to any public service business as defined in RCW 82.16.010 and with respect to which the gross income associated with such activity: (i) Is subject to tax under chapter 82.16 RCW; or (ii) would be subject to tax under chapter 82.16 RCW if such activity were conducted in this state or if not for an exemption or deduction.

(3) With respect to wastewater treatment facilities:

(a) "To manufacture" does not include the treatment of wastewater, the production of reclaimed water, and the production of class B biosolids; and

(b) "To manufacture" does include the production of class A or exceptional quality biosolids, but only with respect to the processing activities that occur after the biosolids have reached class B standards.

Sec. 304. RCW 82.12.022 and 2011 c 174 s 304 are each amended to read as follows:

(1) A use tax is levied on every person in this state for the privilege of using natural gas or manufactured gas, including compressed natural gas and liquefied natural gas, within this state as a consumer.

(2) The tax must be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rate in effect for the public utility tax on gas distribution businesses under RCW 82.16.020. The "value of the article used" does not include any amounts that are paid for the hire or use of a gas distribution business as defined in RCW 82.16.010(2) in transporting the gas subject to tax under this subsection if those amounts are subject to tax under that chapter.

(3) The tax levied in this section does not apply to the use of natural or manufactured gas delivered to the consumer by other means than through a pipeline.

(4) The tax levied in this section does not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under RCW 82.16.020 with respect to the gas for which exemption is sought under this subsection.

(5)(a) The tax levied in this section does not apply to the use of natural or manufactured gas by an aluminum smelter as that term is defined in RCW 82.04.217 before January 1, 2017.

(b) A person claiming the exemption provided in this subsection (5) must file a complete annual report with the department under RCW 82.32.534.

(6) The tax imposed by this section does not apply to the use of natural gas, compressed natural gas, or liquefied natural gas, if the consumer uses the gas for transportation fuel as defined in section 301 of this act.
(7) There is a credit against the tax levied under this section in an amount equal to any tax paid by:

(a) The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to RCW 82.16.020 by another state with respect to the gas for which a credit is sought under this subsection; or

(b) The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another state with respect to the gas for which a credit is sought under this subsection.

((~~(7)~~)) (8) The use tax imposed in this section must be paid by the consumer to the department.

((~~(8)~~)) (9) There is imposed a reporting requirement on the person who delivered the gas to the consumer to make a quarterly report to the department. Such report must contain the volume of gas delivered, name of the consumer to whom delivered, and such other information as the department may require by rule.

((~~(9)~~)) (10) The department may adopt rules under chapter 34.05 RCW for the administration and enforcement of sections 1 through 6, chapter 384, Laws of 1989.

Sec. 305. RCW 82.14.230 and 2010 c 127 s 5 are each amended to read as follows:

(1) The governing body of any city, while not required by legislative mandate to do so, may, by resolution or ordinance for the purposes authorized by this chapter, fix and impose on every person a use tax for the privilege of using natural gas or manufactured gas in the city as a consumer.

(2) The tax is imposed in an amount equal to the value of the article used by the taxpayer multiplied by the rate in effect for the tax on natural gas businesses under RCW 35.21.870 in the city in which the article is used. The "value of the article used," does not include any amounts that are paid for the hire or use of a natural gas business in transporting the gas subject to tax under this subsection if those amounts are subject to tax under RCW 35.21.870.

(3) The tax imposed under this section does not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under RCW 35.21.870 with respect to the gas for which exemption is sought under this subsection.

(4) There is a credit against the tax levied under this section in an amount equal to any tax paid by:

(a) The person who sold the gas to the consumer when that tax is a gross receipts tax similar to that imposed pursuant to RCW 35.21.870 by another municipality or other unit of local government with respect to the gas for which a credit is sought under this subsection; or

(b) The person consuming the gas upon which a use tax similar to the tax imposed by this section was paid to another municipality or other unit of local government with respect to the gas for which a credit is sought under this subsection.

(5) The use tax imposed must be paid by the consumer. The administration and collection of the tax imposed is pursuant to RCW 82.14.050.

(6) The tax authorized by this section does not apply to the use of natural gas, compressed natural gas, or liquefied natural gas, if the consumer uses the gas for transportation fuel as defined in section 301 of this act.

Sec. 306. RCW 35.21.870 and 1984 c 225 s 6 are each amended to read as follows:

(1) No city or town may impose a tax on the privilege of conducting an electrical energy, natural gas, steam energy, or telephone business at a rate which exceeds six percent unless the rate is first approved by a majority of the voters of the city or town voting on such a proposition.

(2)(a) If a city or town is imposing a rate of tax under subsection (1) of this section in excess of six percent on April 20, 1982, the city or town ((~~shall~~)) must decrease the rate to a rate of six percent or less by reducing the rate each year on or before November 1st by ordinances to be effective on January 1st of the succeeding year, by an amount equal to one-tenth the difference between the tax rate on April 20, 1982, and six percent.

(b) Nothing in this subsection prohibits a city or town from reducing its rates by amounts greater than the amounts required in this subsection.

(3) Voter approved rate increases under subsection (1) of this section ((~~shall~~)) may not be included in the computations under this subsection.

(4) No city or town may impose a tax on the privilege of conducting a natural gas business with respect to sales that are exempt from the tax imposed under chapter 82.16 RCW as provided in section 301 of this act at a rate higher than its business and occupation tax rate on the sale of tangible personal property or, if the city or town does not impose a business and occupation tax on the sale of tangible personal property, at a rate greater than .002.

Sec. 307. RCW 82.14.030 and 2008 c 86 s 101 are each amended to read as follows:

(1) The governing body of any county or city, while not required by legislative mandate to do so, may, by resolution or ordinance for the purposes authorized by this chapter, impose a sales and use tax in accordance with the terms of this chapter. Such tax ((~~shall~~)) must 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 county or city as the case may be. ((~~Except as provided in RCW 82.14.230,~~)) This sales and use tax ((~~shall~~)) does not apply to natural or manufactured gas, except for natural gas that is used as a transportation fuel as defined in section 301 of this act and is taxable by the state under chapters 82.08 and 82.12 RCW. The rate of such tax imposed by a county ((~~shall be~~)) is five-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The rate of such tax imposed by a city ((~~shall~~)) may not exceed five-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). However, in the event a county imposes a sales and use tax under this subsection, the rate of such tax imposed under this subsection by any city therein ((~~shall~~)) may not exceed four hundred and twenty-five one-thousandths of one percent.

(2) In addition to the tax authorized in subsection (1) of this section, the governing body of any county or city may by resolution or ordinance impose an additional sales and use tax in accordance with the terms of this chapter. Such additional tax ((~~shall~~)) must be collected upon the same taxable events upon which the tax imposed under subsection (1) of this section is imposed. The rate of such additional tax imposed by a county ((~~shall be~~)) is up to five-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The rate of such additional tax imposed by a city ((~~shall be~~)) is up to five-tenths of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). However, in the event a county imposes a sales and use tax under the authority of this subsection at a rate equal to or greater than the rate imposed under the authority of this subsection by a city within the county, the county ((~~shall~~)) must receive fifteen percent of the city tax. In the event that the county imposes a sales and use tax under the authority of this subsection at a rate which is less than the rate imposed under this subsection by a city within the county, the county ((~~shall~~)) must receive that amount of revenues from the city tax equal to fifteen percent of the rate of tax imposed by the county under the authority of this subsection. The authority to impose a tax under this subsection is intended in part to compensate local government for any losses from the phase-out of the property tax on business inventories.

PART IV
Export and Machinery and Equipment Sales and Use Tax Exemptions

Sec. 401. RCW 82.08.02565 and 2011 c 23 s 2 are each amended to read as follows:

(1)(a) The tax levied by RCW 82.08.020 does not apply to sales to a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation, to sales to a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation, or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.

(b) Except as provided in (c) of this subsection, sellers making tax-exempt sales under this section must obtain from the purchaser an exemption certificate in a form and manner prescribed by the department by rule. The seller must retain a copy of the certificate for the seller's files.

      (c)(i) The exemption under this section is in the form of a remittance for a gas distribution business, as defined in RCW 82.16.010, claiming the exemption for machinery and equipment used for the production of compressed natural gas or liquefied natural gas for use as a transportation fuel.
      (ii) A gas distribution business claiming an exemption from state and local tax in the form of a remittance under this section must pay the tax under RCW 82.08.020 and all applicable local sales taxes. Beginning July 1, 2017, the gas distribution business may then apply to the department for remittance of state and local sales and use taxes. A gas distribution business may not apply for a remittance more frequently than once a quarter. The gas distribution business must specify the amount of exempted tax claimed and the qualifying purchases for which the exemption is claimed. The gas distribution business must retain, in adequate detail, records to enable the department to determine whether the business is entitled to an exemption under this section, including: Invoices; proof of tax paid; and documents describing the machinery and equipment.
      (iii) The department must determine eligibility under this section based on the information provided by the gas distribution business, which is subject to audit verification by the department. The department must on a quarterly basis remit exempted amounts to qualifying businesses who submitted applications during the previous quarter.
      (iv) Beginning July 1, 2028, a gas distribution business may not apply for a refund under this section or RCW 82.12.02565.

(2) For purposes of this section and RCW 82.12.02565:

(a) "Machinery and equipment" means industrial fixtures, devices, and support facilities, and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts. "Machinery and equipment" includes pollution control equipment installed and used in a manufacturing operation, testing operation, or research and development operation to prevent air pollution, water pollution, or contamination that might otherwise result from the manufacturing operation, testing operation, or research and development operation. "Machinery and equipment" also includes digital goods.

(b) "Machinery and equipment" does not include:

(i) Hand-powered tools;

(ii) Property with a useful life of less than one year;

(iii) Buildings, other than machinery and equipment that is permanently affixed to or becomes a physical part of a building; and

(iv) Building fixtures that are not integral to the manufacturing operation, testing operation, or research and development operation that are permanently affixed to and become a physical part of a building, such as utility systems for heating, ventilation, air conditioning, communications, plumbing, or electrical.

(c) Machinery and equipment is "used directly" in a manufacturing operation, testing operation, or research and development operation if the machinery and equipment:

(i) Acts upon or interacts with an item of tangible personal property;

(ii) Conveys, transports, handles, or temporarily stores an item of tangible personal property at the manufacturing site or testing site;

(iii) Controls, guides, measures, verifies, aligns, regulates, or tests tangible personal property at the site or away from the site;

(iv) Provides physical support for or access to tangible personal property;

(v) Produces power for, or lubricates machinery and equipment;

(vi) Produces another item of tangible personal property for use in the manufacturing operation, testing operation, or research and development operation;

(vii) Places tangible personal property in the container, package, or wrapping in which the tangible personal property is normally sold or transported; or

(viii) Is integral to research and development as defined in RCW 82.63.010.

(d) "Manufacturer" means a person that qualifies as a manufacturer under RCW 82.04.110. "Manufacturer" also includes a person that prints newspapers or other materials.

(e) "Manufacturing" means only those activities that come within the definition of "to manufacture" in RCW 82.04.120 and are taxed as manufacturing or processing for hire under chapter 82.04 RCW, or would be taxed as such if such activity were conducted in this state or if not for an exemption or deduction. "Manufacturing" also includes printing newspapers or other materials. An activity is not taxed as manufacturing or processing for hire under chapter 82.04 RCW if the activity is within the purview of chapter 82.16 RCW.

(f) "Manufacturing operation" means the manufacturing of articles, substances, or commodities for sale as tangible personal property. A manufacturing operation begins at the point where the raw materials enter the manufacturing site and ends at the point where the processed material leaves the manufacturing site. With respect to the production of class A or exceptional quality biosolids by a wastewater treatment facility, the manufacturing operation begins at the point where class B biosolids undergo additional processing to achieve class A or exceptional quality standards. Notwithstanding anything to the contrary in this section, the term also includes that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the preparation of food products on the premises of a person selling food products at retail.

(g) "Cogeneration" means the simultaneous generation of electrical energy and low-grade heat from the same fuel.

(h) "Research and development operation" means engaging in research and development as defined in RCW 82.63.010 by a manufacturer or processor for hire.

(i) "Testing" means activities performed to establish or determine the properties, qualities, and limitations of tangible personal property.

(j) "Testing operation" means the testing of tangible personal property for a manufacturer or processor for hire. A testing operation begins at the point where the tangible personal property enters the testing site and ends at the point where the tangible personal property leaves the testing site. The term also includes the testing of tangible personal property for use in that portion of a cogeneration project that is used to generate power for consumption within the manufacturing site of which the cogeneration project is an integral part. The term does not include the testing of tangible personal property for use in the production of electricity by a light and power business as defined in RCW 82.16.010 or the preparation of food products on the premises of a person selling food products at retail.

Sec. 402. RCW 82.12.02565 and 2003 c 5 s 5 are each amended to read as follows:

(1) The provisions of this chapter ((~~shall~~)) do not apply in respect to the use by a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation, to the use by a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation, or to the use of labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the machinery and equipment.

(2) The definitions, conditions, and requirements in RCW 82.08.02565 apply to this section.

Sec. 403. RCW 82.14.050 and 2012 1st sp.s. c 9 s 1 are each amended to read as follows:

(1) The counties, cities, and transportation authorities under RCW 82.14.045, public facilities districts under chapters 36.100 and 35.57 RCW, public transportation benefit areas under RCW 82.14.440, regional transportation investment districts, and transportation benefit districts under chapter 36.73 RCW must contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which must deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter that is collected by the department of revenue must be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Beginning January 1, 2013, the department of revenue must make deposits in the local sales and use tax account on a monthly basis on the last business day of the month in which distributions required in (a) of this subsection are due. Moneys in the local sales and use tax account may be withdrawn only for:

(a) Distribution to counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts imposing a sales and use tax; and

(b) Making refunds of taxes imposed under the authority of this chapter and RCW 81.104.170 and exempted under RCW 82.08.962 ((~~and~~)), 82.12.962, 82.08.02565, and 82.12.02565.

(2) All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, insofar as they are applicable to state sales and use taxes, are applicable to taxes imposed pursuant to this chapter.

(3) Counties, cities, transportation authorities, public facilities districts, and regional transportation investment districts may not conduct independent sales or use tax audits of sellers registered under the streamlined sales tax agreement.

(4) Except as provided in RCW 43.08.190 and subsection (5) of this section, all earnings of investments of balances in the local sales and use tax account must be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts monthly.

(5) Beginning January 1, 2013, the state treasurer must determine the amount of earnings on investments that would have been credited to the local sales and use tax account if the collections had been deposited in the account over the prior month. When distributions are made under subsection (1)(a) of this section, the state treasurer must transfer this amount from the state general fund to the local sales and use tax account and must distribute such sums to the counties, cities, transportation authorities, public facilities districts, public transportation benefit areas, regional transportation investment districts, and transportation benefit districts.

Sec. 404. RCW 82.14.060 and 2009 c 469 s 108 are each amended to read as follows:

(1)(a) Monthly, the state treasurer must distribute from the local sales and use tax account to the counties, cities, transportation authorities, public facilities districts, and transportation benefit districts the amount of tax collected on behalf of each taxing authority, less:

(i) The deduction provided for in RCW 82.14.050; and

(ii) The amount of any refunds of local sales and use taxes exempted under RCW 82.08.962 ((~~and~~)), 82.12.962, 82.08.02565, and 82.12.02565, which must be made without appropriation.

(b) The state treasurer ((~~shall~~)) must make the distribution under this section without appropriation.

(2) In the event that any ordinance or resolution imposes a sales and use tax at a rate in excess of the applicable limits contained herein, such ordinance or resolution ((~~shall~~)) may not be considered void in toto, but only with respect to that portion of the rate which is in excess of the applicable limits contained herein.

Sec. 405. RCW 82.08.0261 and 1980 c 37 s 28 are each amended to read as follows:

(1) Except as otherwise provided in this section, the tax levied by RCW 82.08.020 ((~~shall~~)) does not apply to sales of tangible personal property (other than the type referred to in RCW 82.08.0262) for use by the purchaser in connection with the business of operating as a private or common carrier by air, rail, or water in interstate or foreign commerce((~~: PROVIDED, That~~)). However, any actual use of such property in this state ((~~shall~~)) is, at the time of such actual use, ((be)) subject to the tax imposed by chapter 82.12 RCW.

(2)(a) With respect to the sale of liquefied natural gas to a business operating as a private or common carrier by water in interstate or foreign commerce, the buyer is entitled to a partial exemption from the tax levied by RCW 82.08.020 and the associated local sales taxes. The exemption under this subsection (2) is for the state and local retail sales taxes on ninety percent of the amount of the liquefied natural gas transported and consumed outside this state by the buyer.
      (b) Sellers are relieved of the obligation to collect the state and local retail sales taxes on sales eligible for the partial exemption provided in this subsection (2) to buyers who are registered with the department if the seller:
      (i) Obtains a completed exemption certificate from the buyer, which must include the buyer's tax registration number with the department; or
      (ii) Captures the relevant data elements as allowed under the streamlined sales and use tax agreement, including the buyer's tax registration number with the department.
      (c) Buyers entitled to a partial exemption under this subsection (2) must either:
      (i) Pay the full amount of state and local retail sales tax to the seller on the sale, including the amount of tax qualifying for exemption under this subsection (2), and then request a refund of the exempted portion of the tax from the department within the time allowed for making refunds under RCW 82.32.060; or
      (ii) If the seller did not collect the retail sales tax from the buyer, remit to the department the state and local retail sales taxes due on all liquefied natural gas consumed in this state and on ten percent of the liquefied natural gas that is transported and consumed outside of this state.
      (3) This section does not apply to the sale of liquefied natural gas on or after July 1, 2028, for use as fuel in any marine vessel.

NEW SECTION. Sec. 406. A new section is added to chapter 46.68 RCW to read as follows:

(1) The finished fuel account is created in the state treasury. Money received from revenues transferred under section 407 of this act must be deposited into the account. Money in the account may be spent only after appropriation. Funds may be used only to construct, improve, repair, or rehabilitate Washington state ferry boat vessels, or to convert such vessels to operate using special fuels other than diesel fuel or using other alternative energy sources.

(2) This section expires July 1, 2028.

NEW SECTION. Sec. 407. A new section is added to chapter 82.32 RCW to read as follows:

(1) By the last workday of the second and fourth calendar quarters, the state treasurer must transfer the amount specified in subsection (2) of this section from the general fund to the finished fuel account created in section 406 of this act. The first transfer under this subsection must occur by December 31, 2017.

(2) By December 15th and by June 15th of each year, the department must estimate the increase in state general fund revenues from the taxes collected under RCW 82.08.0261(2)(a) on the nonexempt portion of liquefied natural gas sales in the current and prior calendar quarters and notify the state treasurer of the increase.

(3) This section expires July 1, 2028.

NEW SECTION. Sec. 408. A new section is added to chapter 43.135 RCW to read as follows:

(1) RCW 43.135.034(4) does not apply to the transfers under section 407 of this act.

(2) This section expires July 1, 2028.

NEW SECTION. Sec. 409. A new section is added to chapter 39.42 RCW to read as follows:

(1) The purpose of eliminating a portion of the sales exemption under RCW 82.08.0261 for liquefied natural gas sold for use as a marine vessel transportation fuel is to fund improvements to Washington state ferries. For this reason, general state revenues transferred under section 407 of this act to the finished fuel account are excluded from the calculation of general state revenues for purposes of Article VIII, section 1 of the state Constitution and RCW 39.42.130 and 39.42.140.

(2) This section expires July 1, 2028.

PART V
Utility Law Change

Sec. 501. RCW 80.28.280 and 1991 c 199 s 216 are each amended to read as follows:

(1) The legislature finds that compressed natural gas and liquefied natural gas offers significant potential to reduce vehicle and vessel emissions and to significantly decrease dependence on petroleum-based fuels. The legislature also finds that well-developed and convenient refueling systems are imperative if compressed natural gas ((is)) and liquefied natural gas are to be widely used by the public. The legislature declares that the development of compressed natural gas ((~~refueling stations are in the public interest.~~)) and liquefied natural gas motor vehicle refueling stations and vessel refueling facilities are in the public interest. Except as provided in subsection (2) of this section, nothing in this section and RCW 80.28.290 is intended to alter the regulatory practices of the commission or allow the subsidization of one ratepayer class by another.

(2) When a liquefied natural gas facility owned by a natural gas company serves both a private customer operating marine vessels and the Washington state ferries or any other public entity, the rate charged by the natural gas company to the Washington state ferries or other public entity may not be more than the rate charged to the private customer operating marine vessels.

PART VI
Miscellaneous Provisions

NEW SECTION. Sec. 601. This act takes effect July 1, 2015."

Correct the title.

and the same are herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator King moved that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6440.

Senators King and Eide spoke in favor of the motion.

Senator Hasegawa spoke against the motion.

The President declared the question before the Senate to be the motion by Senator King that the Senate concur in the House amendment(s) to Engrossed Substitute Senate Bill No. 6440.

The motion by Senator King carried and the Senate concurred in the House amendment(s) to Engrossed Substitute Senate Bill No. 6440 by voice vote.

The President declared the question before the Senate to be the final passage of Engrossed Substitute Senate Bill No. 6440, as amended by the House.

ROLL CALL

The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6440, as amended by the House, and the bill passed the Senate by the following vote: Yeas, 43; Nays, 6; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Billig, Braun, Brown, Cleveland, Conway, Dammeier, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, Nelson, O'Ban, Parlette, Pearson, Pedersen, Ranker, Rivers, Rolfes, Schoesler, Sheldon and Tom

Voting nay: Senators Benton, Chase, Dansel, Hasegawa, Padden and Roach

ENGROSSED SUBSTITUTE SENATE BILL NO. 6440, as amended by the House, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The House refuses to concur in the Senate amendment(s) to SUBSTITUTE HOUSE BILL NO. 2175 and asks the Senate to recede therefrom.

and the same is herewith transmitted.

BARBARA BAKER, Chief Clerk

MOTION

Senator Ericksen moved that the Senate recede from its position in the Senate amendment(s) to Substitute House Bill No. 2175.

The President declared the question before the Senate to be motion by Senator Ericksen that the Senate recede from its position in the Senate amendment(s) to Substitute House Bill No. 2175.

The motion by Senator Ericksen carried and the Senate receded from its position in the Senate amendment(s) to Substitute House Bill No. 2175 by voice vote.

MOTION

On motion of Senator Ericksen, the rules were suspended and Substitute House Bill No. 2175 was returned to second reading for the purposes of amendment.

SECOND READING

SUBSTITUTE HOUSE BILL NO. 2175, by House Committee on Technology & Economic Development (originally sponsored by Representatives Morris, Morrell and Stanford)

Removing barriers to economic development in the telecommunications industry.

The measure was read the second time.

MOTION

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

0.Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 80.36.375 and 1997 c 219 s 2 are each amended to read as follows:

(1) If a personal wireless service provider applies to site several microcells ((~~and/or~~)), minor facilities, or a small cell network in a single geographical area:

(a) If one or more of the microcells and/or minor facilities are not exempt from the requirements of RCW 43.21C.030(2)(c), local governmental entities are encouraged: (i) To allow the applicant, at the applicant's discretion, to file a single set of documents required by chapter 43.21C RCW that will apply to all the microcells and/or minor facilities to be sited; and (ii) to render decisions under chapter 43.21C RCW regarding all the microcells and/or minor facilities in a single administrative proceeding; ((~~and~~))

(b) Local governmental entities are encouraged: (i) To allow the applicant, at the applicant's discretion, to file a single set of documents for land use permits that will apply to all the microcells and/or minor facilities to be sited; and (ii) to render decisions regarding land use permits for all the microcells and/or minor facilities in a single administrative proceeding; and
(c) For small cell networks involving multiple individual small cell facilities, local governmental entities may allow the applicant, if the applicant so chooses, to file a consolidated application and receive a single permit for the small cell network in a single jurisdiction instead of filing separate applications for each individual small cell facility.

(2) For the purposes of this section:

(a) "Personal wireless services" means commercial mobile services, unlicensed wireless services, and common carrier wireless exchange access services, as defined by federal laws and regulations.

(b) "Microcell" means a wireless communication facility consisting of an antenna that is either: (i) Four feet in height and with an area of not more than five hundred eighty square inches; or (ii) if a tubular antenna, no more than four inches in diameter and no more than six feet in length.

(c) "Minor facility" means a wireless communication facility consisting of up to three antennas, each of which is either: (i) Four feet in height and with an area of not more than five hundred eighty square inches; or (ii) if a tubular antenna, no more than four inches in diameter and no more than six feet in length; and the associated equipment cabinet that is six feet or less in height and no more than forty-eight square feet in floor area.

(d) "Small cell facility" means a personal wireless services facility that meets both of the following qualifications:
      (i) Each antenna is located inside an antenna enclosure of no more than three cubic feet in volume or, in the case of an antenna that has exposed elements, the antenna and all of its exposed elements could fit within an imaginary enclosure of no more than three cubic feet; and
      (ii) Primary equipment enclosures are no larger than seventeen cubic feet in volume. The following associated equipment may be located outside the primary equipment enclosure and if so located, are not included in the calculation of equipment volume: Electric meter, concealment, telecomm demarcation box, ground-based enclosures, battery back-up power systems, grounding equipment, power transfer switch, and cut-off switch.
      (e) "Small cell network" means a collection of interrelated small cell facilities designed to deliver personal wireless services.

Sec. 2. RCW 35.21.860 and 2007 c 6 s 1020 are each amended to read as follows:

(1) No city or town may impose a franchise fee or any other fee or charge of whatever nature or description upon the light and power, or gas distribution businesses, as defined in RCW 82.16.010, or telephone business, as defined in RCW 82.16.010, or service provider for use of the right‑of‑way, except:

(a) A tax authorized by RCW 35.21.865 may be imposed;

(b) A fee may be charged to such businesses or service providers that recovers actual administrative expenses incurred by a city or town that are directly related to receiving and approving a permit, license, and franchise, to inspecting plans and construction, or to the preparation of a detailed statement pursuant to chapter 43.21C RCW;

(d) Franchise requirements and fees for cable television services as allowed by federal law; and

(e) A site-specific charge pursuant to an agreement between the city or town and a service provider of personal wireless services acceptable to the parties for:

(i) The placement of new structures in the right‑of‑way regardless of height, unless the new structure is the result of a mandated relocation in which case no charge will be imposed if the previous location was not charged;

(ii) The placement of replacement structures when the replacement is necessary for the installation or attachment of wireless facilities, the replacement structure is higher than the replaced structure, and the overall height of the replacement structure and the wireless facility is more than sixty feet; or

(iii) The placement of personal wireless facilities on structures owned by the city or town located in the right‑of‑way. However, a site-specific charge shall not apply to the placement of personal wireless facilities on existing structures, unless the structure is owned by the city or town.

A city or town is not required to approve the use permit for the placement of a facility for personal wireless services that meets one of the criteria in this subsection absent such an agreement. If the parties are unable to agree on the amount of the charge, the service provider may submit the amount of the charge to binding arbitration by serving notice on the city or town. Within thirty days of receipt of the initial notice, each party shall furnish a list of acceptable arbitrators. The parties shall select an arbitrator; failing to agree on an arbitrator, each party shall select one arbitrator and the two arbitrators shall select a third arbitrator for an arbitration panel. The arbitrator or arbitrators shall determine the charge based on comparable siting agreements involving public land and rights-of-way. The arbitrator or arbitrators shall not decide any other disputed issues, including but not limited to size, location, and zoning requirements. Costs of the arbitration, including compensation for the arbitrator's services, must be borne equally by the parties participating in the arbitration and each party shall bear its own costs and expenses, including legal fees and witness expenses, in connection with the arbitration proceeding.

(2) Subsection (1) of this section does not prohibit franchise fees imposed on an electrical energy, natural gas, or telephone business, by contract existing on April 20, 1982, with a city or town, for the duration of the contract, but the franchise fees shall be considered taxes for the purposes of the limitations established in RCW 35.21.865 and 35.21.870 to the extent the fees exceed the costs allowable under subsection (1) of this section."

Senators Ericksen and McCoy spoke in favor of adoption of the striking amendment.

The President declared the question before the Senate to be the adoption of the striking amendment by Senator Ericksen and others to Substitute House Bill No. 2175.

The motion by Senator Ericksen 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 "industry;" strike the remainder of the title and insert "and amending RCW 80.36.375 and 35.21.860."

MOTION

On motion of Senator Ericksen, the rules were suspended, Substitute House Bill No. 2175 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 Ericksen spoke in favor of passage of the bill.

The President declared the question before the Senate to be the final passage of Substitute House Bill No. 2175 as amended by the Senate.

ROLL CALL

The Secretary called the roll on the final passage of Substitute House Bill No. 2175 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 47; Nays, 2; Absent, 0; Excused, 0.

Voting yea: Senators Angel, Bailey, Baumgartner, Becker, Benton, Billig, Braun, Brown, Chase, Cleveland, Conway, Dammeier, Dansel, Darneille, Eide, Ericksen, Fain, Fraser, Frockt, Hargrove, Hasegawa, Hatfield, Hewitt, Hill, Hobbs, Holmquist Newbry, Honeyford, Keiser, King, Kline, Kohl-Welles, Liias, Litzow, McAuliffe, McCoy, Mullet, O'Ban, Padden, Parlette, Pearson, Pedersen, Ranker, Rivers, Roach, Schoesler, Sheldon and Tom

Voting nay: Senators Nelson and Rolfes

SUBSTITUTE HOUSE BILL NO. 2175 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 Fain, the Senate reverted to the fourth order of business.

MESSAGE FROM THE HOUSE

March 12, 2014

MR. PRESIDENT:

The House receded from its amendment(s) to SECOND SUBSTITUTE SENATE BILL NO. 6312. Under suspension of the rules, the bill was returned to second reading for the purposes of amendment(s). The House adopted the following amendment(s): 6312-S2 AMH CODY H4546.2, and passed the bill as amended by the House.

0.Strike everything after the enacting clause and insert the following:

"Sec. 1. 2013 c 338 s 1 (uncodified) is amended to read as follows:

(1)(a) Beginning ((~~May~~)) April 1, 2014, the legislature shall convene a task force to examine reform of the adult behavioral health system, with voting members as provided in this subsection.

(i) The president of the senate shall appoint one member and one alternate member from each of the two largest caucuses of the senate.

(ii) The speaker of the house of representatives shall appoint one member and one alternate member from each of the two largest caucuses in the house of representatives.

(iii) The governor shall appoint three members consisting of the secretary of the department of social and health services or the secretary's designee, the director of the health care authority or the director's designee, and a representative of the governor.

(iv) The Washington state association of counties shall appoint three members.
(v) The governor shall request participation by a representative of tribal governments.

(b) The task force shall choose two cochairs from among its legislative members.

(c) The task force shall adopt a bottom-up approach and welcome input and participation from all stakeholders interested in the improvement of the adult behavioral health system. To that end, the task force must invite participation from, at a minimum, the following: The department of commerce, the department of corrections, the office of financial management, behavioral health service recipients and their families; local government; representatives of regional support networks; representatives of county coordinators; law enforcement; city and county jails; tribal representatives; behavioral health service providers; housing providers; labor representatives; counties with state hospitals; mental health advocates; chemical dependency advocates; public defenders with involuntary mental health commitment or mental health court experience; chemical dependency experts working with drug courts; medicaid managed care plan and associated delivery system representatives; long-term care service providers; the Washington state hospital association; and individuals with expertise in evidence-based and research-based behavioral health service practices. Leadership of subcommittees formed by the task force may be drawn from this body of invited participants.

(2) The task force shall undertake a systemwide review of the adult behavioral health system and make recommendations for reform concerning, but not limited to, the following:

      (a) The means by which services are purchased and delivered for adults with mental illness and chemical dependency disorders through the department of social and health services and the health care authority, including:
      (i) Guidance for the creation of common regional service areas for purchasing behavioral health services and medical care services by the department of social and health services and the health care authority, taking into consideration any proposal submitted by the Washington state association of counties under section 2 of this act;
      (ii) Identification of key issues which must be addressed by the department of social and health services to accomplish the integration of chemical dependency purchasing primarily with managed care contracts by April 1, 2016, under section 5 of this act, including review of the results of any available actuarial study to establish provider rates;
      (iii) Strategies for moving towards full integration of medical and behavioral health services by January 1, 2020, and identification of key issues that must be addressed by the health care authority and the department of social and health services in furtherance of this goal;
      (iv) By August 1, 2014, a review of performance measures and outcomes developed pursuant to RCW 43.20A.895 and chapter 70.320 RCW;
      (v) Review criteria developed by the department of social and health services and the health care authority concerning submission of detailed plans and requests for early adoption of fully integrated purchasing and incentives under section 5 of this act;
      (vi) Whether a statewide behavioral health ombuds office should be created;
      (vii) Whether the state chemical dependency program should be mandated to provide twenty-four hour detoxification services, medication-assisted outpatient treatment, or contracts for case management and residential treatment services for pregnant and parenting women;
      (viii) Review legal, clinical, and technological obstacles to sharing relevant health care information related to mental health, chemical dependency, and physical health across practice settings; and
      (ix) Review the extent and causes of variations in commitment rates in different jurisdictions across the state;

(b) Availability of effective means to promote recovery and prevent harm associated with mental illness and chemical dependency;

(c) Availability of crisis services, including boarding of mental health patients outside of regularly certified treatment beds;

(d) Best practices for cross-system collaboration between behavioral health treatment providers, medical care providers, long- term care service providers, entities providing health home services to high-risk medicaid clients, law enforcement, and criminal justice agencies; ((~~and~~))

(e) Public safety practices involving persons with mental illness and chemical dependency with forensic involvement.

(3) Staff support for the task force must be provided by the senate committee services and the house of representatives office of program research.

(4) Legislative members of the task force must be reimbursed for travel expenses in accordance with RCW 44.04.120. Nonlegislative members, except those representing an employer or organization, are entitled to be reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

(5) The expenses of the task force must be paid jointly by the senate and house of representatives. Task force expenditures are subject to approval by the senate facilities and operations committee and the house of representatives executive rules committee, or their successor committees.

(6) The task force shall report ((~~its~~)) initial findings and recommendations to the governor and the appropriate committees of the legislature in a preliminary report by ((~~January 1, 2015~~)) December 15, 2014, and a final report by December 15, 2015. Recommendations under subsection (2)(a)(i) of this section must be submitted to the governor by September 1, 2014.

(7) This section expires ((~~June~~)) July 1, ((~~2015~~)) 2016.

NEW SECTION. Sec. 2. A new section is added to chapter 43.20A RCW to read as follows:

(1) Upon receipt of guidance for the creation of common regional service areas from the adult behavioral health system task force established in section 1, chapter 338, Laws of 2013, the department and the health care authority shall jointly establish regional service areas as provided in this section.

(2) Counties, through the Washington state association of counties, must be given the opportunity to propose the composition of regional service areas. Each service area must:

(a) Include a sufficient number of medicaid lives to support full financial risk managed care contracting for services included in contracts with the department or the health care authority;

(b) Include full counties that are contiguous with one another; and

(c) Reflect natural medical and behavioral health service referral patterns and shared clinical, health care service, behavioral health service, and behavioral health crisis response resources.

(3) The Washington state association of counties must submit their recommendations to the department, the health care authority, and the task force described in section 1 of this act on or before August 1, 2014.

NEW SECTION. Sec. 3. A new section is added to chapter 43.20A RCW to read as follows:

(1) Any agreement or contract by the department or the health care authority to provide behavioral health services as defined under RCW 71.24.025 to persons eligible for benefits under medicaid, Title XIX of the social security act, and to persons not eligible for medicaid must include the following:

(a) Contractual provisions consistent with the intent expressed in RCW 71.24.015, 71.36.005, 70.96A.010, and 70.96A.011;

(b) Standards regarding the quality of services to be provided, including increased use of evidence-based, research-based, and promising practices, as defined in RCW 71.24.025;

(c) Accountability for the client outcomes established in RCW 43.20A.895, 70.320.020, and 71.36.025 and performance measures linked to those outcomes;

(d) Standards requiring behavioral health organizations to maintain a network of appropriate providers that is supported by written agreements sufficient to provide adequate access to all services covered under the contract with the department or the health care authority and to protect essential existing behavioral health system infrastructure and capacity, including a continuum of chemical dependency services;

(e) Provisions to require that medically necessary chemical dependency and mental health treatment services be available to clients;

(f) Standards requiring the use of behavioral health service provider reimbursement methods that incentivize improved performance with respect to the client outcomes established in RCW 43.20A.895 and 71.36.025, integration of behavioral health and primary care services at the clinical level, and improved care coordination for individuals with complex care needs;

(g) Standards related to the financial integrity of the responding organization. The department shall adopt rules establishing the solvency requirements and other financial integrity standards for behavioral health organizations. This subsection does not limit the authority of the department to take action under a contract upon finding that a behavioral health organization's financial status jeopardizes the organization's ability to meet its contractual obligations;

(h) Mechanisms for monitoring performance under the contract and remedies for failure to substantially comply with the requirements of the contract including, but not limited to, financial deductions, termination of the contract, receivership, reprocurement of the contract, and injunctive remedies;

(i) Provisions to maintain the decision-making independence of designated mental health professionals or designated chemical dependency specialists; and

(j) Provisions stating that public funds appropriated by the legislature may not be used to promote or deter, encourage, or discourage employees from exercising their rights under Title 29, chapter 7, subchapter II, United States Code or chapter 41.56 RCW.

(2) The following factors must be given significant weight in any purchasing process:

(a) Demonstrated commitment and experience in serving low-income populations;

(b) Demonstrated commitment and experience serving persons who have mental illness, chemical dependency, or co-occurring disorders;

(c) Demonstrated commitment to and experience with partnerships with county and municipal criminal justice systems, housing services, and other critical support services necessary to achieve the outcomes established in RCW 43.20A.895, 70.320.020, and 71.36.025;

(d) Recognition that meeting enrollees' physical and behavioral health care needs is a shared responsibility of contracted behavioral health organizations, managed health care systems, service providers, the state, and communities;

(e) Consideration of past and current performance and participation in other state or federal behavioral health programs as a contractor; and

(f) The ability to meet requirements established by the department.

(3) For purposes of purchasing behavioral health services and medical care services for persons eligible for benefits under medicaid, Title XIX of the social security act and for persons not eligible for medicaid, the department and the health care authority must use common regional service areas. The regional service areas must be established by the department and the health care authority as provided in section 2 of this act.

(4) Consideration must be given to using multiple-biennia contracting periods.

(5) Each behavioral health organization operating pursuant to a contract issued under this section shall enroll clients within its regional service area who meet the department's eligibility criteria for mental health and chemical dependency services.

NEW SECTION. Sec. 4. A new section is added to chapter 43.20A RCW to read as follows:

The secretary shall require that behavioral health organizations offer contracts to managed health care systems under chapter 74.09 RCW or primary care practice settings to promote access to the services of chemical dependency professionals under chapter 18.205 RCW and mental health professionals, as defined by the department in rule, for the purposes of integrating such services into primary care settings for individuals with behavioral health and medical comorbidities.

NEW SECTION. Sec. 5. A new section is added to chapter 71.24 RCW to read as follows:

(1) The secretary shall purchase mental health and chemical dependency treatment services primarily through managed care contracting, but may continue to purchase behavioral health services directly from tribal clinics and other tribal providers.

(2)(a) The secretary shall request a detailed plan from the entities identified in (b) of this subsection that demonstrates compliance with the contractual elements of section 3 of this act and federal regulations related to medicaid managed care contracting, including, but not limited to: Having a sufficient network of providers to provide adequate access to mental health and chemical dependency services for residents of the regional service area that meet eligibility criteria for services, ability to maintain and manage adequate reserves, and maintenance of quality assurance processes. Any responding entity that submits a detailed plan that demonstrates that it can meet the requirements of this section must be awarded the contract to serve as the behavioral health organization.

(b)(i) For purposes of responding to the request for a detailed plan under (a) of this subsection, the entities from which a plan will be requested are:

(A) A county in a single county regional service area that currently serves as the regional support network for that area;

(B) In the event that a county has made a decision prior to January 1, 2014, not to contract as a regional support network, any private entity that serves as the regional support network for that area;

(C) All counties within a regional service area that includes more than one county, which shall form a responding entity through the adoption of an interlocal agreement. The interlocal agreement must specify the terms by which the responding entity shall serve as the behavioral health organization within the regional service area.

(ii) In the event that a regional service area is comprised of multiple counties including one that has made a decision prior to January 1, 2014, not to contract as a regional support network the counties shall adopt an interlocal agreement and may respond to the request for a detailed plan under (a) of this subsection and the private entity may also respond to the request for a detailed plan. If both responding entities meet the requirements of this section, the responding entities shall follow the department's procurement process established in subsection (3) of this section.

(3) If an entity that has received a request under this section to submit a detailed plan does not respond to the request, a responding entity under subsection (1) of this section is unable to substantially meet the requirements of the request for a detailed plan, or more than one responding entity substantially meets the requirements for the request for a detailed plan, the department shall use a procurement process in which other entities recognized by the secretary may bid to serve as the behavioral health organization in that regional service area.

(4) Contracts for behavioral health organizations must begin on April 1, 2016.

(5) Upon request of all of the county authorities in a regional service area, the department and the health care authority may jointly purchase behavioral health services through an integrated medical and behavioral health services contract with a behavioral health organization or a managed health care system as defined in RCW 74.09.522, pursuant to standards to be developed jointly by the secretary and the health care authority. Any contract for such a purchase must comply with all federal medicaid and state law requirements related to managed health care contracting.

(6) As an incentive to county authorities to become early adopters of fully integrated purchasing of medical and behavioral health services, the standards adopted by the secretary and the health care authority under subsection (5) of this section shall provide for an incentive payment to counties which elect to move to full integration by January 1, 2016. Subject to federal approval, the incentive payment shall be targeted at ten percent of savings realized by the state within the regional service area in which the fully integrated purchasing takes place. Savings shall be calculated in alignment with the outcome and performance measures established in RCW 43.20A.895, 70.320.020, and 71.36.025, and incentive payments for early adopter counties shall be made available for up to a six-year period, or until full integration of medical and behavioral health services is accomplished statewide, whichever comes sooner, according to rules to be developed by the secretary and health care authority.

Sec. 6. RCW 71.24.015 and 2005 c 503 s 1 are each amended to read as follows:

It is the intent of the legislature to establish a community mental health program which shall help people experiencing mental illness to retain a respected and productive position in the community. This will be accomplished through programs that focus on resilience and recovery, and practices that are evidence-based, research-based, consensus-based, or, where these do not exist, promising or emerging best practices, which provide for:

(1) Access to mental health services for adults ((of the state who are acutely mentally ill, chronically mentally ill, or seriously disturbed)) with mental illness and children ((of the state who are acutely mentally ill, severely emotionally disturbed, or seriously disturbed,)) with mental illness or emotional disturbances who meet access to care standards which services recognize the special needs of underserved populations, including minorities, children, the elderly, ((disabled)) individuals with disabilities, and low-income persons. Access to mental health services shall not be limited by a person's history of confinement in a state, federal, or local correctional facility. It is also the purpose of this chapter to promote the early identification of ((mentally ill)) children with mental illness and to ensure that they receive the mental health care and treatment which is appropriate to their developmental level. This care should improve home, school, and community functioning, maintain children in a safe and nurturing home environment, and should enable treatment decisions to be made in response to clinical needs in accordance with sound professional judgment while also recognizing parents' rights to participate in treatment decisions for their children;

(2) The involvement of persons with mental illness, their family members, and advocates in designing and implementing mental health services that reduce unnecessary hospitalization and incarceration and promote the recovery and employment of persons with mental illness. To improve the quality of services available and promote the rehabilitation, recovery, and reintegration of persons with mental illness, consumer and advocate participation in mental health services is an integral part of the community mental health system and shall be supported;

(3) Accountability of efficient and effective services through state-of-the-art outcome and performance measures and statewide standards for monitoring client and system outcomes, performance, and reporting of client and system outcome information. These processes shall be designed so as to maximize the use of available resources for direct care of people with a mental illness and to assure uniform data collection across the state;

(4) Minimum service delivery standards;

(5) Priorities for the use of available resources for the care of ((~~the mentally ill~~)) individuals with mental illness consistent with the priorities defined in the statute;

(6) Coordination of services within the department, including those divisions within the department that provide services to children, between the department and the office of the superintendent of public instruction, and among state mental hospitals, county authorities, ((~~regional support networks~~)) behavioral health organizations, community mental health services, and other support services, which shall to the maximum extent feasible also include the families of ((~~the mentally ill~~)) individuals with mental illness, and other service providers; and

(7) Coordination of services aimed at reducing duplication in service delivery and promoting complementary services among all entities that provide mental health services to adults and children.

It is the policy of the state to encourage the provision of a full range of treatment and rehabilitation services in the state for mental disorders including services operated by consumers and advocates. The legislature intends to encourage the development of regional mental health services with adequate local flexibility to assure eligible people in need of care access to the least-restrictive treatment alternative appropriate to their needs, and the availability of treatment components to assure continuity of care. To this end, counties ((~~are encouraged to~~)) must enter into joint operating agreements with other counties to form regional systems of care that are consistent with the regional service areas established under section 2 of this act. Regional systems of care, whether operated by a county, group of counties, or another entity shall integrate planning, administration, and service delivery duties under chapters 71.05 and 71.24 RCW to consolidate administration, reduce administrative layering, and reduce administrative costs. The legislature hereby finds and declares that sound fiscal management requires vigilance to ensure that funds appropriated by the legislature for the provision of needed community mental health programs and services are ultimately expended solely for the purpose for which they were appropriated, and not for any other purpose.

It is further the intent of the legislature to integrate the provision of services to provide continuity of care through all phases of treatment. To this end, the legislature intends to promote active engagement with ((~~mentally ill~~)) persons with mental illness and collaboration between families and service providers.

Sec. 7. RCW 71.24.016 and 2006 c 333 s 102 are each amended to read as follows:

(1) The legislature intends that eastern and western state hospitals shall operate as clinical centers for handling the most complicated long-term care needs of patients with a primary diagnosis of mental disorder. It is further the intent of the legislature that the community mental health service delivery system focus on maintaining ((~~mentally ill~~)) individuals with mental illness in the community. The program shall be evaluated and managed through a limited number of outcome and performance measures ((~~designed to hold each regional support network accountable for program success~~)), as provided in RCW 43.20A.895, 70.320.020, and 71.36.025.

      (2) The legislature intends to address the needs of people with mental disorders with a targeted, coordinated, and comprehensive set of evidence-based practices that are effective in serving individuals in their community and will reduce the need for placements in state mental hospitals. The legislature further intends to explicitly hold ((~~regional support networks~~)) behavioral health organizations accountable for serving people with mental disorders within the boundaries of their ((~~geographic boundaries~~)) regional service area and for not exceeding their allocation of state hospital beds. ((Within funds appropriated by the legislature for this purpose, regional support networks shall develop the means to serve the needs of people with mental disorders within their geographic boundaries. Elements of the program may include:
      ~~(a) Crisis triage;~~
      ~~(b) Evaluation and treatment and community hospital beds;~~
      ~~(c) Residential beds;~~
      ~~(d) Programs for community treatment teams; and~~
      ~~(e) Outpatient services.~~
      (3) The regional support network shall have the flexibility, within the funds appropriated by the legislature for this purpose, to design the mix of services that will be most effective within their service area of meeting the needs of people with mental disorders and avoiding placement of such individuals at the state mental hospital. Regional support networks are encouraged to maximize the use of evidence-based practices and alternative resources with the goal of substantially reducing and potentially eliminating the use of institutions for mental diseases.))

NEW SECTION. Sec. 8. A new section is added to chapter 71.24 RCW to read as follows:

(1) By December 1, 2018, the department and the health care authority shall report to the governor and the legislature regarding the preparedness of each regional service area to provide mental health services, chemical dependency services, and medical care services to medicaid clients under a fully integrated managed care health system.

(2) By January 1, 2020, the community behavioral health program must be fully integrated in a managed care health system that provides mental health services, chemical dependency services, and medical care services to medicaid clients.

NEW SECTION. Sec. 9. A new section is added to chapter 71.24 RCW to read as follows:

(1) Within funds appropriated by the legislature for this purpose, behavioral health organizations shall develop the means to serve the needs of people with mental disorders residing within the boundaries of their regional service area. Elements of the program may include:

(a) Crisis diversion services;

(b) Evaluation and treatment and community hospital beds;

(d) Programs for intensive community treatment;

(e) Outpatient services;

(f) Peer support services;

(g) Community support services;

(h) Resource management services; and

(i) Supported housing and supported employment services.

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

Sec. 10. RCW 71.24.025 and 2013 c 338 s 5 are each amended to read as follows:

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

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

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

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

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

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

(3) "Child" means a person under the age of eighteen years.

(4) "Chronically mentally ill adult" or "adult who is chronically mentally ill" means an adult who has a mental disorder and meets at least one of the following criteria:

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

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

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

(5) "Clubhouse" means a community-based program that provides rehabilitation services and is certified by the department of social and health services.

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

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

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

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

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

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

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

(13) "Emerging best practice" or "promising practice" means a program or practice that, based on statistical analyses or a well established theory of change, shows potential for meeting the evidence- based or research-based criteria, which may include the use of a program that is evidence-based for outcomes other than those listed in subsection (14) of this section.

(14) "Evidence-based" means a program or practice that has been tested in heterogeneous or intended populations with multiple randomized, or statistically controlled evaluations, or both; or one large multiple site randomized, or statistically controlled evaluation, or both, where the weight of the evidence from a systemic review demonstrates sustained improvements in at least one outcome. "Evidence-based" also means a program or practice that can be implemented with a set of procedures to allow successful replication in Washington and, when possible, is determined to be cost-beneficial.

(15) "Licensed service provider" means an entity licensed according to this chapter or chapter 71.05 or 70.96A RCW or an entity deemed to meet state minimum standards as a result of accreditation by a recognized behavioral health accrediting body recognized and having a current agreement with the department, or tribal attestation that meets state minimum standards, or persons licensed under chapter 18.57, 18.71, 18.83, or 18.79 RCW, as it applies to registered nurses and advanced registered nurse practitioners.

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

(17) "Mental health services" means all services provided by ((~~regional support networks~~)) behavioral health organizations and other services provided by the state for persons who are mentally ill.

(18) "Mentally ill persons," "persons who are mentally ill," and "the mentally ill" mean persons and conditions defined in subsections (1), (4), (27), and (28) of this section.

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

(20) "((~~Regional support network~~)) Behavioral health organization" means ((a)) any county authority or group of county authorities or other entity recognized by the secretary in contract in a defined region.

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

(22) "Research-based" means a program or practice that has been tested with a single randomized, or statistically controlled evaluation, or both, demonstrating sustained desirable outcomes; or where the weight of the evidence from a systemic review supports sustained outcomes as described in subsection (14) of this section but does not meet the full criteria for evidence-based.

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

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

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

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

(27) "Seriously disturbed person" means a person who:

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

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

(d) Exhibits suicidal preoccupation or attempts; or

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

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

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

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

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

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

(i) Chronic family dysfunction involving a caretaker who is mentally ill or inadequate;

(ii) Changes in custodial adult;

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

(iv) Subject to repeated physical abuse or neglect;

(v) Drug or alcohol abuse; or

(vi) Homelessness.

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

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

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

(32) "Behavioral health services" means mental health services as described in this chapter and chapter 71.36 RCW and chemical dependency treatment services as described in chapter 70.96A RCW.

Sec. 11. RCW 71.24.035 and 2013 c 200 s 24 are each amended to read as follows:

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

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

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

(4) The secretary shall be designated as the ((~~regional support network~~)) behavioral health organization if the ((~~regional support network~~)) behavioral health organization fails to meet state minimum standards or refuses to exercise responsibilities under its contract or RCW 71.24.045, until such time as a new ((~~regional support network~~)) behavioral health organization is designated ((~~under RCW 71.24.320~~)).

(5) The secretary shall:

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

      (b) Assure that any ((regional)) behavioral health organization or county community mental health program provides ((access to treatment for the region's residents, including parents who are respondents in dependency cases, in the following order of priority: (i) Persons with acute mental illness; (ii) adults with chronic mental illness and children who are severely emotionally disturbed; and (iii) persons who are seriously disturbed. Such programs shall provide:
      (A) Outpatient services;
      (B) Emergency care services for twenty-four hours per day;
      (C) Day treatment for persons with mental illness which includes training in basic living and social skills, supported work, vocational rehabilitation, and day activities. Such services may include therapeutic treatment. In the case of a child, day treatment includes age-appropriate basic living and social skills, educational and prevocational services, day activities, and therapeutic treatment;
      (D) Screening for patients being considered for admission to state mental health facilities to determine the appropriateness of admission;
      (E) Employment services, which may include supported employment, transitional work, placement in competitive employment, and other work- related services, that result in persons with mental illness becoming engaged in meaningful and gainful full or part-time work. Other sources of funding such as the division of vocational rehabilitation may be utilized by the secretary to maximize federal funding and provide for integration of services;
      (F) Consultation and education services; and
      (G) Community support services)) medically necessary services to medicaid recipients consistent with the state's medicaid state plan or federal waiver authorities, and nonmedicaid services consistent with priorities established by the department;

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

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

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

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

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

(f) Establish, to the extent possible, a standardized auditing procedure which is designed to assure compliance with contractual agreements authorized by this chapter and minimizes paperwork requirements of ((~~regional support networks~~)) behavioral health organizations and licensed service providers. The audit procedure shall focus on the outcomes of service ((~~and not the processes for accomplishing them~~)) as provided in RCW 43.20A.895, 70.320.020, and 71.36.025;

(g) Develop and maintain an information system to be used by the state and ((~~regional support networks~~)) behavioral health organizations that includes a tracking method which allows the department and ((~~regional support networks~~)) behavioral health organizations to identify mental health clients' participation in any mental health service or public program on an immediate basis. The information system shall not include individual patient's case history files. Confidentiality of client information and records shall be maintained as provided in this chapter and chapter 70.02 RCW;

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

(i) ((~~Certify regional support networks that meet state minimum standards;~~
~~(j)~~)) Periodically monitor the compliance of ((~~certified regional support networks~~)) behavioral health organizations and their network of licensed service providers for compliance with the contract between the department, the ((~~regional support network~~)) behavioral health organization, and federal and state rules at reasonable times and in a reasonable manner;

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

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

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

(((n) Assure the availability of an appropriate amount, as determined by the legislature in the operating budget by amounts appropriated for this specific purpose, of community-based, geographically distributed residential services;
(o))) (m) License or certify crisis stabilization units that meet state minimum standards;

((~~(p)~~)) (n) License or certify clubhouses that meet state minimum standards; and

((~~(q)~~)) (o) License or certify triage facilities that meet state minimum standards.

      (6) The secretary shall use available resources only for ((~~regional support networks~~)) behavioral health organizations, except:
      (a) To the extent authorized, and in accordance with any priorities or conditions specified, in the biennial appropriations act; or
      (b) To incentivize improved performance with respect to the client outcomes established in RCW 43.20A.895, 70.320.020, and 71.36.025, integration of behavioral health and medical services at the clinical level, and improved care coordination for individuals with complex care needs.

(7) Each ((~~certified regional support network~~)) behavioral health organization and licensed service provider shall file with the secretary, on request, such data, statistics, schedules, and information as the secretary reasonably requires. A ((~~certified regional support network~~)) behavioral health organization or licensed service provider which, without good cause, fails to furnish any data, statistics, schedules, or information as requested, or files fraudulent reports thereof, may ((~~have its~~)) be subject to the behavioral health organization contractual remedies in section 3 of this act or may have its service provider certification or license revoked or suspended.

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

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

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

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

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

(13) The standards for certification or licensure of crisis stabilization units shall include standards that:

(a) Permit location of the units at a jail facility if the unit is physically separate from the general population of the jail;

(b) Require administration of the unit by mental health professionals who direct the stabilization and rehabilitation efforts; and

(c) Provide an environment affording security appropriate with the alleged criminal behavior and necessary to protect the public safety.

(14) The standards for certification or licensure of a clubhouse shall at a minimum include:

(a) The facilities may be peer‑operated and must be recovery‑focused;

(b) Members and employees must work together;

(c) Members must have the opportunity to participate in all the work of the clubhouse, including administration, research, intake and orientation, outreach, hiring, training and evaluation of staff, public relations, advocacy, and evaluation of clubhouse effectiveness;

(d) Members and staff and ultimately the clubhouse director must be responsible for the operation of the clubhouse, central to this responsibility is the engagement of members and staff in all aspects of clubhouse operations;

(e) Clubhouse programs must be comprised of structured activities including but not limited to social skills training, vocational rehabilitation, employment training and job placement, and community resource development;

(f) Clubhouse programs must provide in‑house educational programs that significantly utilize the teaching and tutoring skills of members and assist members by helping them to take advantage of adult education opportunities in the community;

(g) Clubhouse programs must focus on strengths, talents, and abilities of its members;

(h) The work‑ordered day may not include medication clinics, day treatment, or other therapy programs within the clubhouse.

(15) The department shall distribute appropriated state and federal funds in accordance with any priorities, terms, or conditions specified in the appropriations act.

(16) The secretary shall assume all duties assigned to the nonparticipating ((~~regional support networks~~)) behavioral health organizations under chapters 71.05 and 71.34 RCW and this chapter. Such responsibilities shall include those which would have been assigned to the nonparticipating counties in regions where there are not participating ((~~regional support networks~~)) behavioral health organizations.

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

(17) The secretary shall:

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

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

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

(d) Deny all or part of the funding allocations to ((~~regional support networks~~)) behavioral health organizations based solely upon formal findings of noncompliance with the terms of the ((~~regional support network's~~)) behavioral health organization's contract with the department. ((~~Regional support networks~~)) Behavioral health organizations disputing the decision of the secretary to withhold funding allocations are limited to the remedies provided in the department's contracts with the ((~~regional support networks~~)) behavioral health organizations.

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

Sec. 12. RCW 71.24.045 and 2006 c 333 s 105 are each amended to read as follows:

The regional support network shall:

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

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

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

(4) Establish reasonable limitations on administrative costs for agencies that contract with the behavioral health organization;
(5) Assure that the special needs of minorities, ((~~the elderly~~)) older adults, ((~~disabled~~)) individuals with disabilities, children, and low-income persons are met within the priorities established in this chapter;

((~~(5)~~)) (6) Maintain patient tracking information in a central location as required for resource management services and the department's information system;

((~~(6)~~)) (7) Collaborate to ensure that policies do not result in an adverse shift of ((~~mentally ill~~)) persons with mental illness into state and local correctional facilities;

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

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

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

Sec. 13. RCW 71.24.045 and 2014 c . . . s 11 (section 12 of this act) are each amended to read as follows:

The ((~~regional support network~~)) behavioral health organization shall:

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

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

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

(4) Establish reasonable limitations on administrative costs for agencies that contract with the behavioral health organization;

(5) Assure that the special needs of minorities, older adults, individuals with disabilities, children, and low-income persons are met within the priorities established in this chapter;

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

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

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

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

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

Sec. 14. RCW 71.24.100 and 2012 c 117 s 442 are each amended to read as follows:

A county authority or a group of county authorities may enter into a joint operating agreement to ((~~form~~)) respond to a request for a detailed plan and contract with the state to operate a ((~~regional support network~~)) behavioral health organization whose boundaries are consistent with the regional service areas established under section 2 of this act. Any agreement between two or more county authorities ((~~for the establishment of a regional support network~~)) shall provide:

(1) That each county shall bear a share of the cost of mental health services; and

(2) That the treasurer of one participating county shall be the custodian of funds made available for the purposes of such mental health services, and that the treasurer may make payments from such funds upon audit by the appropriate auditing officer of the county for which he or she is treasurer.

Sec. 15. RCW 71.24.110 and 1999 c 10 s 7 are each amended to read as follows:

An agreement ((~~for the establishment of a community mental health program~~)) to contract with the state to operate a behavioral health organization under RCW 71.24.100 may also provide:

(1) For the joint supervision or operation of services and facilities, or for the supervision or operation of service and facilities by one participating county under contract for the other participating counties; and

(2) For such other matters as are necessary or proper to effectuate the purposes of this chapter.

Sec. 16. RCW 71.24.340 and 2005 c 503 s 13 are each amended to read as follows:

The secretary shall require the ((~~regional support networks~~)) behavioral health organizations to develop ((~~interlocal agreements pursuant to RCW 74.09.555. To this end, the regional support networks shall~~)) agreements with city and county jails to accept referrals for enrollment on behalf of a confined person, prior to the person's release.

Sec. 17. RCW 71.24.420 and 2001 c 323 s 2 are each amended to read as follows:

The department shall operate the community mental health service delivery system authorized under this chapter within the following constraints:

(1) The full amount of federal funds for mental health services, plus qualifying state expenditures as appropriated in the biennial operating budget, shall be appropriated to the department each year in the biennial appropriations act to carry out the provisions of the community mental health service delivery system authorized in this chapter.

(2) The department may expend funds defined in subsection (1) of this section in any manner that will effectively accomplish the outcome measures ((~~defined in section 5 of this act~~)) established in RCW 43.20A.895 and 71.36.025 and performance measures linked to those outcomes.

(3) The department shall implement strategies that accomplish the outcome measures ((~~identified in section 5 of this act that are within the funding constraints in this section~~)) established in RCW 43.20A.895, 70.320.020, and 71.36.025 and performance measures linked to those outcomes.

(4) The department shall monitor expenditures against the appropriation levels provided for in subsection (1) of this section.

Sec. 18. RCW 70.96A.010 and 1989 c 271 s 304 are each amended to read as follows:

It is the policy of this state that ((~~alcoholics~~)) persons with alcoholism and intoxicated persons may not be subjected to criminal prosecution solely because of their consumption of alcoholic beverages but rather should, within available funds, be afforded a continuum of treatment in order that they may lead normal lives as productive members of society. Within available funds, treatment should also be provided for ((~~drug addicts~~)) persons with drug addiction.

Sec. 19. RCW 70.96A.011 and 1989 c 270 s 1 are each amended to read as follows:

The legislature finds that the use of alcohol and other drugs has become a serious threat to the health of the citizens of the state of Washington. The use of psychoactive chemicals has been found to be a prime factor in the current AIDS epidemic. Therefore, a comprehensive statute to deal with alcoholism and other drug addiction is necessary.

The legislature agrees with the 1987 resolution of the American Medical Association that endorses the proposition that all chemical dependencies, including alcoholism, are diseases. It is the intent of the legislature to ((~~end the sharp distinctions between alcoholism services and other drug addiction services, to~~)) recognize that chemical dependency is a disease, and to insure that prevention and treatment services are available and are of high quality. It is the purpose of this chapter to provide the financial assistance necessary to enable the department of social and health services to provide a ((~~discrete~~)) program of alcoholism and other drug addiction services.

Sec. 20. RCW 70.96A.020 and 2001 c 13 s 1 are each amended to read as follows:

For the purposes of this chapter the following words and phrases shall have the following meanings unless the context clearly requires otherwise:

(1) ((~~"Alcoholic" means a person who suffers from the disease of alcoholism.~~
~~(2)~~)) "Alcoholism" means a disease, characterized by a dependency on alcoholic beverages, loss of control over the amount and circumstances of use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued, and impairment of health or disruption of social or economic functioning.

((~~(3)~~)) (2) "Approved treatment program" means a ((~~discrete~~)) program ((~~of chemical dependency treatment~~)) for persons with a substance use disorder provided by a treatment program certified by the department of social and health services as meeting standards adopted under this chapter.

((~~(4)~~)) (3) "Chemical dependency" means:

(a) Alcoholism; (b) drug addiction; or (c) dependence on alcohol and one or more other psychoactive chemicals, as the context requires.

((~~(5)~~)) (4) "Chemical dependency program" means expenditures and activities of the department designed and conducted to prevent or treat alcoholism and other drug addiction, including reasonable administration and overhead.

((~~(6)~~)) (5) "Department" means the department of social and health services.

((~~(7)~~)) (6) "Designated chemical dependency specialist" or "specialist" means a person designated by the behavioral health organization or by the county alcoholism and other drug addiction program coordinator designated under RCW 70.96A.310 to perform the commitment duties described in RCW 70.96A.140 and qualified to do so by meeting standards adopted by the department.

((~~(8)~~)) (7) "Director" means the person administering the ((~~chemical dependency~~)) substance use disorder program within the department.

((~~(9) "Drug addict" means a person who suffers from the disease of drug addiction.~~
~~(10)~~)) (8) "Drug addiction" means a disease characterized by a dependency on psychoactive chemicals, loss of control over the amount and circumstances of use, symptoms of tolerance, physiological or psychological withdrawal, or both, if use is reduced or discontinued, and impairment of health or disruption of social or economic functioning.

((~~(11)~~)) (9) "Emergency service patrol" means a patrol established under RCW 70.96A.170.

((~~(12)~~)) (10) "Gravely disabled by alcohol or other psychoactive chemicals" or "gravely disabled" means that a person, as a result of the use of alcohol or other psychoactive chemicals: (a) Is in danger of serious physical harm resulting from a failure to provide for his or her essential human needs of health or safety; or (b) manifests severe deterioration in routine functioning evidenced by a repeated and escalating loss of cognition or volitional control over his or her actions and is not receiving care as essential for his or her health or safety.

((~~(13)~~)) (11) "History of one or more violent acts" refers to the period of time ten years prior to the filing of a petition under this chapter, excluding any time spent, but not any violent acts committed, in a mental health facility, or a long-term alcoholism or drug treatment facility, or in confinement.

((~~(14)~~)) (12) "Incapacitated by alcohol or other psychoactive chemicals" means that a person, as a result of the use of alcohol or other psychoactive chemicals, is gravely disabled or presents a likelihood of serious harm to himself or herself, to any other person, or to property.

((~~(15)~~)) (13) "Incompetent person" means a person who has been adjudged incompetent by the superior court.

((~~(16)~~)) (14) "Intoxicated person" means a person whose mental or physical functioning is substantially impaired as a result of the use of alcohol or other psychoactive chemicals.

((~~(17)~~)) (15) "Licensed physician" means a person licensed to practice medicine or osteopathic medicine and surgery in the state of Washington.

((~~(18)~~)) (16) "Likelihood of serious harm" means:

(a) A substantial risk that: (i) Physical harm will be inflicted by an individual upon his or her own person, as evidenced by threats or attempts to commit suicide or inflict physical harm on one's self; (ii) physical harm will be inflicted by an individual upon another, as evidenced by behavior that has caused the harm or that places another person or persons in reasonable fear of sustaining the harm; or (iii) physical harm will be inflicted by an individual upon the property of others, as evidenced by behavior that has caused substantial loss or damage to the property of others; or

(b) The individual has threatened the physical safety of another and has a history of one or more violent acts.

((~~(19)~~)) (17) "Medical necessity" for inpatient care of a minor means a requested certified inpatient service that is reasonably calculated to: (a) Diagnose, arrest, or alleviate a chemical dependency; or (b) prevent the ((~~worsening of chemical dependency conditions~~)) progression of substance use disorders that endanger life or cause suffering and pain, or result in illness or infirmity or threaten to cause or aggravate a handicap, or cause physical deformity or malfunction, and there is no adequate less restrictive alternative available.

((~~(20)~~)) (18) "Minor" means a person less than eighteen years of age.

((~~(21)~~)) (19) "Parent" means the parent or parents who have the legal right to custody of the child. Parent includes custodian or guardian.

((~~(22)~~)) (20) "Peace officer" means a law enforcement official of a public agency or governmental unit, and includes persons specifically given peace officer powers by any state law, local ordinance, or judicial order of appointment.

((~~(23)~~)) (21) "Person" means an individual, including a minor.

((~~(24)~~)) (22) "Professional person in charge" or "professional person" means a physician or chemical dependency counselor as defined in rule by the department, who is empowered by a certified treatment program with authority to make assessment, admission, continuing care, and discharge decisions on behalf of the certified program.

((~~(25)~~)) (23) "Secretary" means the secretary of the department of social and health services.

((~~(26)~~)) (24) "Treatment" means the broad range of emergency, ((~~detoxification~~)) withdrawal management, residential, and outpatient services and care, including diagnostic evaluation, chemical dependency education and counseling, medical, psychiatric, psychological, and social service care, vocational rehabilitation and career counseling, which may be extended to ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons.

((~~(27)~~)) (25) "Treatment program" means an organization, institution, or corporation, public or private, engaged in the care, treatment, or rehabilitation of ((~~alcoholics or other drug addicts~~)) persons with substance use disorder.

((~~(28)~~)) (26) "Violent act" means behavior that resulted in homicide, attempted suicide, nonfatal injuries, or substantial damage to property.

      (27) "Behavioral health organization" means a county authority or group of county authorities or other entity recognized by the secretary in contract in a defined regional service area.
      (28) "Behavioral health services" means mental health services as described in chapters 71.24 and 71.36 RCW and chemical dependency treatment services as described in this chapter.
      (29) "Substance use disorder" means a cluster of cognitive, behavioral, and physiological symptoms indicating that an individual continues using the substance despite significant substance-related problems. The diagnosis of a substance use disorder is based on a pathological pattern of behaviors related to the use of the substances.

Sec. 21. RCW 70.96A.030 and 1989 c 270 s 4 are each amended to read as follows:

A ((~~discrete~~)) program ((~~of chemical dependency~~)) for persons with a substance use disorder is established within the department of social and health services, to be administered by a qualified person who has training and experience in handling alcoholism and other drug addiction problems or the organization or administration of treatment services for persons suffering from alcoholism or other drug addiction problems.

Sec. 22. RCW 70.96A.040 and 1989 c 270 s 5 are each amended to read as follows:

The department, in the operation of the chemical dependency program may:

(1) Plan, establish, and maintain prevention and treatment programs as necessary or desirable;

(2) Make contracts necessary or incidental to the performance of its duties and the execution of its powers, including managed care contracts for behavioral health services, contracts entered into under RCW 74.09.522, and contracts with public and private agencies, organizations, and individuals to pay them for services rendered or furnished to ((~~alcoholics or other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, or intoxicated persons;

(3) Enter into agreements for monitoring of verification of qualifications of counselors employed by approved treatment programs;

(4) Adopt rules under chapter 34.05 RCW to carry out the provisions and purposes of this chapter and contract, cooperate, and coordinate with other public or private agencies or individuals for those purposes;

(5) Solicit and accept for use any gift of money or property made by will or otherwise, and any grant of money, services, or property from the federal government, the state, or any political subdivision thereof or any private source, and do all things necessary to cooperate with the federal government or any of its agencies in making an application for any grant;

(6) Administer or supervise the administration of the provisions relating to ((~~alcoholics, other drug addicts,~~)) persons with substance use disorders and intoxicated persons of any state plan submitted for federal funding pursuant to federal health, welfare, or treatment legislation;

(7) Coordinate its activities and cooperate with chemical dependency programs in this and other states, and make contracts and other joint or cooperative arrangements with state, local, or private agencies in this and other states for the treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons and for the common advancement of chemical dependency programs;

(8) Keep records and engage in research and the gathering of relevant statistics;

(9) Do other acts and things necessary or convenient to execute the authority expressly granted to it;

(10) Acquire, hold, or dispose of real property or any interest therein, and construct, lease, or otherwise provide treatment programs.

Sec. 23. RCW 70.96A.050 and 2001 c 13 s 2 are each amended to read as follows:

The department shall:

(1) Develop, encourage, and foster statewide, regional, and local plans and programs for the prevention of alcoholism and other drug addiction, treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons in cooperation with public and private agencies, organizations, and individuals and provide technical assistance and consultation services for these purposes;

(2) Assure that any behavioral health organization managed care contract, or managed care contract under RCW 74.09.522 for behavioral health services or programs for the treatment of persons with substance use disorders, and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons provides medically necessary services to medicaid recipients. This must include a continuum of mental health and chemical dependency services consistent with the state's medicaid plan or federal waiver authorities, and nonmedicaid services consistent with priorities established by the department;
(3) Coordinate the efforts and enlist the assistance of all public and private agencies, organizations, and individuals interested in prevention of alcoholism and drug addiction, and treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons;

((~~(3)~~)) (4) Cooperate with public and private agencies in establishing and conducting programs to provide treatment for ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons who are clients of the correctional system;

((~~(4)~~)) (5) Cooperate with the superintendent of public instruction, state board of education, schools, police departments, courts, and other public and private agencies, organizations and individuals in establishing programs for the prevention of alcoholism and other drug addiction, treatment of ((~~alcoholics or other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons, and preparing curriculum materials thereon for use at all levels of school education;

((~~(5)~~)) (6) Prepare, publish, evaluate, and disseminate educational material dealing with the nature and effects of alcohol and other psychoactive chemicals and the consequences of their use;

((~~(6)~~)) (7) Develop and implement, as an integral part of treatment programs, an educational program for use in the treatment of ((~~alcoholics or other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons, which program shall include the dissemination of information concerning the nature and effects of alcohol and other psychoactive chemicals, the consequences of their use, the principles of recovery, and HIV and AIDS;

((~~(7)~~)) (8) Organize and foster training programs for persons engaged in treatment of ((~~alcoholics or other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons;

((~~(8)~~)) (9) Sponsor and encourage research into the causes and nature of alcoholism and other drug addiction, treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons, and serve as a clearinghouse for information relating to alcoholism or other drug addiction;

((~~(9)~~)) (10) Specify uniform methods for keeping statistical information by public and private agencies, organizations, and individuals, and collect and make available relevant statistical information, including number of persons treated, frequency of admission and readmission, and frequency and duration of treatment;

((~~(10)~~)) (11) Advise the governor in the preparation of a comprehensive plan for treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons for inclusion in the state's comprehensive health plan;

((~~(11)~~)) (12) Review all state health, welfare, and treatment plans to be submitted for federal funding under federal legislation, and advise the governor on provisions to be included relating to ((~~alcoholism and other drug addiction, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons~~)) substance use disorders;

((~~(12)~~)) (13) Assist in the development of, and cooperate with, programs for alcohol and other psychoactive chemical education and treatment for employees of state and local governments and businesses and industries in the state;

((~~(13)~~)) (14) Use the support and assistance of interested persons in the community to encourage ((~~alcoholics and other drug addicts~~)) persons with substance use disorders voluntarily to undergo treatment;

((~~(14)~~)) (15) Cooperate with public and private agencies in establishing and conducting programs designed to deal with the problem of persons operating motor vehicles while intoxicated;

((~~(15)~~)) (16) Encourage general hospitals and other appropriate health facilities to admit without discrimination ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons and to provide them with adequate and appropriate treatment;

((~~(16)~~)) (17) Encourage all health and disability insurance programs to include alcoholism and other drug addiction as a covered illness; and

((~~(17)~~)) (18) Organize and sponsor a statewide program to help court personnel, including judges, better understand the disease of alcoholism and other drug addiction and the uses of chemical dependency treatment programs.

Sec. 24. RCW 70.96A.060 and 1989 c 270 s 8 are each amended to read as follows:

(1) An interdepartmental coordinating committee is established, composed of the superintendent of public instruction or his or her designee, the director of licensing or his or her designee, the executive secretary of the Washington state law enforcement training commission or his or her designee, and one or more designees (not to exceed three) of the secretary, one of whom shall be the director of the chemical dependency program. The committee shall meet at least twice annually at the call of the secretary, or his or her designee, who shall be its chair. The committee shall provide for the coordination of, and exchange of information on, all programs relating to alcoholism and other drug addiction, and shall act as a permanent liaison among the departments engaged in activities affecting ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons. The committee shall assist the secretary and director in formulating a comprehensive plan for prevention of alcoholism and other drug addiction, for treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons.

(2) In exercising its coordinating functions, the committee shall assure that:

(a) The appropriate state agencies provide or assure all necessary medical, social, treatment, and educational services for ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons and for the prevention of alcoholism and other chemical dependency, without unnecessary duplication of services;

(b) The several state agencies cooperate in the use of facilities and in the treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons; and

(c) All state agencies adopt approaches to the prevention of ((~~alcoholism and other drug addiction~~)) substance use disorders, the treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons consistent with the policy of this chapter.

Sec. 25. RCW 70.96A.080 and 1989 c 270 s 18 are each amended to read as follows:

(1) In coordination with the health care authority, the department shall establish by ((~~all~~)) appropriate means, ((~~including contracting for services,~~)) a comprehensive and coordinated ((~~discrete~~)) program for the treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, and their families, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons.

(2)(a) The program shall include, but not necessarily be limited to, a continuum of chemical dependency treatment services that includes:

((~~(a) Detoxification~~)) (i) Withdrawal management;

((~~(b)~~)) (ii) Residential treatment; and

((~~(c)~~)) (iii) Outpatient treatment.

(b) The program may include peer support, supported housing, supported employment, crisis diversion, or recovery support services.

(3) All appropriate public and private resources shall be coordinated with and used in the program when possible.

(4) The department may contract for the use of an approved treatment program or other individual or organization if the secretary considers this to be an effective and economical course to follow.

(5) By April 1, 2016, treatment provided under this chapter must be purchased primarily through managed care contracts. Consistent with RCW 70.96A.350, services and funding provided through the criminal justice treatment account are intended to be exempted from managed care contracting.

Sec. 26. RCW 70.96A.085 and 1989 c 270 s 12 are each amended to read as follows:

A city, town, or county that does not have its own facility or program for the treatment and rehabilitation of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders may share in the use of a facility or program maintained by another city or county so long as it contributes no less than two percent of its share of liquor taxes and profits to the support of the facility or program.

Sec. 27. RCW 70.96A.100 and 1989 c 270 s 23 are each amended to read as follows:

The secretary shall adopt and may amend and repeal rules for acceptance of persons into the approved treatment program, considering available treatment resources and facilities, for the purpose of early and effective treatment of ((~~alcoholics and other drug addicts~~)) persons with substance use disorders, persons incapacitated by alcohol or other psychoactive chemicals, and intoxicated persons. In establishing the rules, the secretary shall be guided by the following standards:

(1) If possible a patient shall be treated on a voluntary rather than an involuntary basis.

(2) A patient shall be initially assigned or transferred to outpatient treatment, unless he or she is found to require residential treatment.

(3) A person shall not be denied treatment solely because he or she has withdrawn from treatment against medical advice on a prior occasion or because he or she has relapsed after earlier treatment.

(4) An individualized treatment plan shall be prepared and maintained on a current basis for each patient.

(5) Provision shall be made for a continuum of coordinated treatment services, so that a person who leaves a facility or a form of treatment will have available and use other appropriate treatment.

Sec. 28. RCW 70.96A.110 and 1990 c 151 s 7 are each amended to read as follows:

(1) ((~~An alcoholic or other drug addict~~)) An individual with a substance use disorder may apply for voluntary treatment directly to an approved treatment program. If the proposed patient is a minor or an incompetent person, he or she, a parent, a legal guardian, or other legal representative may make the application.

(2) Subject to rules adopted by the secretary, the administrator in charge of an approved treatment program may determine who shall be admitted for treatment. If a person is refused admission to an approved treatment program, the administrator, subject to rules adopted by the secretary, shall refer the person to another approved treatment program for treatment if possible and appropriate.

(3) If a patient receiving inpatient care leaves an approved treatment program, he or she shall be encouraged to consent to appropriate outpatient treatment. If it appears to the administrator in charge of the treatment program that the patient is ((~~an alcoholic or other drug addict~~)) an individual with a substance use disorder who requires help, the department may arrange for assistance in obtaining supportive services and residential programs.

(4) If a patient leaves an approved public treatment program, with or against the advice of the administrator in charge of the program, the department may make reasonable provisions for his or her transportation to another program or to his or her home. If the patient has no home he or she should be assisted in obtaining shelter. If the patient is less than fourteen years of age or an incompetent person the request for discharge from an inpatient program shall be made by a parent, legal guardian, or other legal representative or by the minor or incompetent if he or she was the original applicant.

Sec. 29. RCW 70.96A.140 and 2001 c 13 s 3 are each amended to read as follows:

(1) When a designated chemical dependency specialist receives information alleging that a person presents a likelihood of serious harm or is gravely disabled as a result of chemical dependency, the designated chemical dependency specialist, after investigation and evaluation of the specific facts alleged and of the reliability and credibility of the information, may file a petition for commitment of such person with the superior court, district court, or in another court permitted by court rule.

If a petition for commitment is not filed in the case of a minor, the parent, guardian, or custodian who has custody of the minor may seek review of that decision made by the designated chemical dependency specialist in superior or district court. The parent, guardian, or custodian shall file notice with the court and provide a copy of the designated chemical dependency specialist's report.

If the designated chemical dependency specialist finds that the initial needs of such person would be better served by placement within the mental health system, the person shall be referred to either a ((~~county~~)) designated mental health professional or an evaluation and treatment facility as defined in RCW 71.05.020 or 71.34.020. If placement in a chemical dependency program is available and deemed appropriate, the petition shall allege that: The person is chemically dependent and presents a likelihood of serious harm or is gravely disabled by alcohol or drug addiction, or that the person has twice before in the preceding twelve months been admitted for ((~~detoxification~~)) withdrawal management, sobering services, or chemical dependency treatment pursuant to RCW 70.96A.110 or 70.96A.120, and is in need of a more sustained treatment program, or that the person is chemically dependent and has threatened, attempted, or inflicted physical harm on another and is likely to inflict physical harm on another unless committed. A refusal to undergo treatment, by itself, does not constitute evidence of lack of judgment as to the need for treatment. The petition shall be accompanied by a certificate of a licensed physician who has examined the person within five days before submission of the petition, unless the person whose commitment is sought has refused to submit to a medical examination, in which case the fact of refusal shall be alleged in the petition. The certificate shall set forth the licensed physician's findings in support of the allegations of the petition. A physician employed by the petitioning program or the department is eligible to be the certifying physician.

(2) Upon filing the petition, the court shall fix a date for a hearing no less than two and no more than seven days after the date the petition was filed unless the person petitioned against is presently being detained in a program, pursuant to RCW 70.96A.120, 71.05.210, or ((~~71.34.050~~)) 71.34.710, in which case the hearing shall be held within seventy-two hours of the filing of the petition: PROVIDED, HOWEVER, That the above specified seventy-two hours shall be computed by excluding Saturdays, Sundays, and holidays: PROVIDED FURTHER, That, the court may, upon motion of the person whose commitment is sought, or upon motion of petitioner with written permission of the person whose commitment is sought, or his or her counsel and, upon good cause shown, extend the date for the hearing. A copy of the petition and of the notice of the hearing, including the date fixed by the court, shall be served by the designated chemical dependency specialist on the person whose commitment is sought, his or her next of kin, a parent or his or her legal guardian if he or she is a minor, and any other person the court believes advisable. A copy of the petition and certificate shall be delivered to each person notified.

(3) At the hearing the court shall hear all relevant testimony, including, if possible, the testimony, which may be telephonic, of at least one licensed physician who has examined the person whose commitment is sought. Communications otherwise deemed privileged under the laws of this state are deemed to be waived in proceedings under this chapter when a court of competent jurisdiction in its discretion determines that the waiver is necessary to protect either the detained person or the public. The waiver of a privilege under this section is limited to records or testimony relevant to evaluation of the detained person for purposes of a proceeding under this chapter. Upon motion by the detained person, or on its own motion, the court shall examine a record or testimony sought by a petitioner to determine whether it is within the scope of the waiver.

The record maker shall not be required to testify in order to introduce medical, nursing, or psychological records of detained persons so long as the requirements of RCW 5.45.020 are met, except that portions of the record that contain opinions as to whether the detained person is chemically dependent shall be deleted from the records unless the person offering the opinions is available for cross- examination. The person shall be present unless the court believes that his or her presence is likely to be injurious to him or her; in this event the court may deem it appropriate to appoint a guardian ad litem to represent him or her throughout the proceeding. If deemed advisable, the court may examine the person out of courtroom. If the person has refused to be examined by a licensed physician, he or she shall be given an opportunity to be examined by a court appointed licensed physician. If he or she refuses and there is sufficient evidence to believe that the allegations of the petition are true, or if the court believes that more medical evidence is necessary, the court may make a temporary order committing him or her to the department for a period of not more than five days for purposes of a diagnostic examination.

(4) If after hearing all relevant evidence, including the results of any diagnostic examination, the court finds that grounds for involuntary commitment have been established by clear, cogent, and convincing proof, it shall make an order of commitment to an approved treatment program. It shall not order commitment of a person unless it determines that an approved treatment program is available and able to provide adequate and appropriate treatment for him or her.

(5) A person committed under this section shall remain in the program for treatment for a period of sixty days unless sooner discharged. At the end of the sixty-day period, he or she shall be discharged automatically unless the program, before expiration of the period, files a petition for his or her recommitment upon the grounds set forth in subsection (1) of this section for a further period of ninety days unless sooner discharged.

If a petition for recommitment is not filed in the case of a minor, the parent, guardian, or custodian who has custody of the minor may seek review of that decision made by the designated chemical dependency specialist in superior or district court. The parent, guardian, or custodian shall file notice with the court and provide a copy of the treatment progress report.

If a person has been committed because he or she is chemically dependent and likely to inflict physical harm on another, the program shall apply for recommitment if after examination it is determined that the likelihood still exists.

(6) Upon the filing of a petition for recommitment under subsection (5) of this section, the court shall fix a date for hearing no less than two and no more than seven days after the date the petition was filed: PROVIDED, That, the court may, upon motion of the person whose commitment is sought and upon good cause shown, extend the date for the hearing. A copy of the petition and of the notice of hearing, including the date fixed by the court, shall be served by the treatment program on the person whose commitment is sought, his or her next of kin, the original petitioner under subsection (1) of this section if different from the petitioner for recommitment, one of his or her parents or his or her legal guardian if he or she is a minor, and his or her attorney and any other person the court believes advisable. At the hearing the court shall proceed as provided in subsection (3) of this section.

(7) The approved treatment program shall provide for adequate and appropriate treatment of a person committed to its custody. A person committed under this section may be transferred from one approved public treatment program to another if transfer is medically advisable.

(8) A person committed to the custody of a program for treatment shall be discharged at any time before the end of the period for which he or she has been committed and he or she shall be discharged by order of the court if either of the following conditions are met:

(a) In case of a chemically dependent person committed on the grounds of likelihood of infliction of physical harm upon himself, herself, or another, the likelihood no longer exists; or further treatment will not be likely to bring about significant improvement in the person's condition, or treatment is no longer adequate or appropriate.

(b) In case of a chemically dependent person committed on the grounds of the need of treatment and incapacity, that the incapacity no longer exists.

(9) The court shall inform the person whose commitment or recommitment is sought of his or her right to contest the application, be represented by counsel at every stage of any proceedings relating to his or her commitment and recommitment, and have counsel appointed by the court or provided by the court, if he or she wants the assistance of counsel and is unable to obtain counsel. If the court believes that the person needs the assistance of counsel, the court shall require, by appointment if necessary, counsel for him or her regardless of his or her wishes. The person shall, if he or she is financially able, bear the costs of such legal service; otherwise such legal service shall be at public expense. The person whose commitment or recommitment is sought shall be informed of his or her right to be examined by a licensed physician of his or her choice. If the person is unable to obtain a licensed physician and requests examination by a physician, the court shall employ a licensed physician.

(10) A person committed under this chapter may at any time seek to be discharged from commitment by writ of habeas corpus in a court of competent jurisdiction.

(11) The venue for proceedings under this section is the county in which person to be committed resides or is present.

(12) When in the opinion of the professional person in charge of the program providing involuntary treatment under this chapter, the committed patient can be appropriately served by less restrictive treatment before expiration of the period of commitment, then the less restrictive care may be required as a condition for early release for a period which, when added to the initial treatment period, does not exceed the period of commitment. If the program designated to provide the less restrictive treatment is other than the program providing the initial involuntary treatment, the program so designated must agree in writing to assume such responsibility. A copy of the conditions for early release shall be given to the patient, the designated chemical dependency specialist of original commitment, and the court of original commitment. The program designated to provide less restrictive care may modify the conditions for continued release when the modifications are in the best interests of the patient. If the program providing less restrictive care and the designated chemical dependency specialist determine that a conditionally released patient is failing to adhere to the terms and conditions of his or her release, or that substantial deterioration in the patient's functioning has occurred, then the designated chemical dependency specialist shall notify the court of original commitment and request a hearing to be held no less than two and no more than seven days after the date of the request to determine whether or not the person should be returned to more restrictive care. The designated chemical dependency specialist shall file a petition with the court stating the facts substantiating the need for the hearing along with the treatment recommendations. The patient shall have the same rights with respect to notice, hearing, and counsel as for the original involuntary treatment proceedings. The issues to be determined at the hearing are whether the conditionally released patient did or did not adhere to the terms and conditions of his or her release to less restrictive care or that substantial deterioration of the patient's functioning has occurred and whether the conditions of release should be modified or the person should be returned to a more restrictive program. The hearing may be waived by the patient and his or her counsel and his or her guardian or conservator, if any, but may not be waived unless all such persons agree to the waiver. Upon waiver, the person may be returned for involuntary treatment or continued on conditional release on the same or modified conditions.

Sec. 30. RCW 70.96A.190 and 1989 c 270 s 32 are each amended to read as follows:

(1) No county, municipality, or other political subdivision may adopt or enforce a local law, ordinance, resolution, or rule having the force of law that includes drinking, being ((~~an alcoholic or drug addict~~)) an individual with a substance use disorder, or being found in an intoxicated condition as one of the elements of the offense giving rise to a criminal or civil penalty or sanction.

(2) No county, municipality, or other political subdivision may interpret or apply any law of general application to circumvent the provision of subsection (1) of this section.

(3) Nothing in this chapter affects any law, ordinance, resolution, or rule against drunken driving, driving under the influence of alcohol or other psychoactive chemicals, or other similar offense involving the operation of a vehicle, aircraft, boat, machinery, or other equipment, or regarding the sale, purchase, dispensing, possessing, or use of alcoholic beverages or other psychoactive chemicals at stated times and places or by a particular class of persons; nor shall evidence of intoxication affect, other than as a defense, the application of any law, ordinance, resolution, or rule to conduct otherwise establishing the elements of an offense.

Sec. 31. RCW 70.96A.300 and 1989 c 270 s 15 are each amended to read as follows:

(1) A county or combination of counties acting jointly by agreement, referred to as "county" in this chapter, may create an alcoholism and other drug addiction board. This board may also be designated as a board for other related purposes.

(2) The board shall be composed of not less than seven nor more than fifteen members, who shall be chosen for their demonstrated concern for alcoholism and other drug addiction problems. Members of the board shall be representative of the community, shall include at least one-quarter recovered ((~~alcoholics or other recovered drug addicts~~)) persons with substance use disorders, and shall include minority group representation. No member may be a provider of alcoholism and other drug addiction treatment services. No more than four elected or appointed city or county officials may serve on the board at the same time. Members of the board shall serve three-year terms and hold office until their successors are appointed and qualified. They shall not be compensated for the performance of their duties as members of the board, but may be reimbursed for travel expenses.

(3) The alcoholism and other drug addiction board shall:

(a) Conduct public hearings and other investigations to determine the needs and priorities of county citizens;

(b) Prepare and recommend to the county legislative authority for approval, all plans, budgets, and applications by the county to the department and other state agencies on behalf of the county alcoholism and other drug addiction program;

(c) Monitor the implementation of the alcoholism and other drug addiction plan and evaluate the performance of the alcoholism and drug addiction program at least annually;

(d) Advise the county legislative authority and county alcoholism and other drug addiction program coordinator on matters relating to the alcoholism and other drug addiction program, including prevention and education;

(e) Nominate individuals to the county legislative authority for the position of county alcoholism and other drug addiction program coordinator. The nominees should have training and experience in the administration of alcoholism and other drug addiction services and shall meet the minimum qualifications established by rule of the department;

(f) Carry out other duties that the department may prescribe by rule.

Sec. 32. RCW 70.96A.320 and 2013 c 320 s 8 are each amended to read as follows:

(1) A county legislative authority, or two or more counties acting jointly, may establish an alcoholism and other drug addiction program. If two or more counties jointly establish the program, they shall designate one county to provide administrative and financial services.

(2) To be eligible for funds from the department for the support of the county alcoholism and other drug addiction program, the county legislative authority shall establish a county alcoholism and other drug addiction board under RCW 70.96A.300 and appoint a county alcoholism and other drug addiction program coordinator under RCW 70.96A.310.

(3) The county legislative authority may apply to the department for financial support for the county program of alcoholism and other drug addiction. To receive financial support, the county legislative authority shall submit a plan that meets the following conditions:

(a) It shall describe the prevention, early intervention, or recovery support services and activities to be provided;

(b) It shall include anticipated expenditures and revenues;

(c) It shall be prepared by the county alcoholism and other drug addiction program board and be adopted by the county legislative authority;

(d) It shall reflect maximum effective use of existing services and programs; and

(e) It shall meet other conditions that the secretary may require.

(4) The county may accept and spend gifts, grants, and fees, from public and private sources, to implement its program of alcoholism and other drug addiction.

(5) The department shall require that any agreement to provide financial support to a county that performs the activities of a service coordination organization for alcoholism and other drug addiction services must incorporate the expected outcomes and criteria to measure the performance of service coordination organizations as provided in chapter 70.320 RCW.

(6) The county may subcontract for ((~~detoxification~~)) withdrawal management, residential treatment, or outpatient treatment with treatment programs that are approved treatment programs. The county may subcontract for other services with individuals or organizations approved by the department.

(7) To continue to be eligible for financial support from the department for the county alcoholism and other drug addiction program, an increase in state financial support shall not be used to supplant local funds from a source that was used to support the county alcoholism and other drug addiction program before the effective date of the increase.

Sec. 33. RCW 70.96A.800 and 2008 c 320 s 1 are each amended to read as follows:

(1) Subject to funds appropriated for this specific purpose, the secretary shall select and contract with counties to provide intensive case management for chemically dependent persons with histories of high utilization of crisis services at two sites. In selecting the two sites, the secretary shall endeavor to site one in an urban county, and one in a rural county; and to site them in counties other than those selected pursuant to RCW 70.96B.020, to the extent necessary to facilitate evaluation of pilot project results. Subject to funds appropriated for this specific purpose, the secretary may contract with additional counties to provide intensive case management.

(2) The contracted sites shall implement the pilot programs by providing intensive case management to persons with a primary chemical dependency diagnosis or dual primary chemical dependency and mental health diagnoses, through the employment of chemical dependency case managers. The chemical dependency case managers shall:

(a) Be trained in and use the integrated, comprehensive screening and assessment process adopted under RCW 70.96C.010;

(b) Reduce the use of crisis medical, chemical dependency and mental health services, including but not limited to, emergency room admissions, hospitalizations, ((~~detoxification~~)) withdrawal management programs, inpatient psychiatric admissions, involuntary treatment petitions, emergency medical services, and ambulance services;

(c) Reduce the use of emergency first responder services including police, fire, emergency medical, and ambulance services;

(d) Reduce the number of criminal justice interventions including arrests, violations of conditions of supervision, bookings, jail days, prison sanction day for violations, court appearances, and prosecutor and defense costs;

(e) Where appropriate and available, work with therapeutic courts including drug courts and mental health courts to maximize the outcomes for the individual and reduce the likelihood of reoffense;

(f) Coordinate with local offices of the economic services administration to assist the person in accessing and remaining enrolled in those programs to which the person may be entitled;

(g) Where appropriate and available, coordinate with primary care and other programs operated through the federal government including federally qualified health centers, Indian health programs, and veterans' health programs for which the person is eligible to reduce duplication of services and conflicts in case approach;

(h) Where appropriate, advocate for the client's needs to assist the person in achieving and maintaining stability and progress toward recovery;

(i) Document the numbers of persons with co-occurring mental and substance abuse disorders and the point of determination of the co- occurring disorder by quadrant of intensity of need; and

(j) Where a program participant is under supervision by the department of corrections, collaborate with the department of corrections to maximize treatment outcomes and reduce the likelihood of reoffense.

(3) The pilot programs established by this section shall begin providing services by March 1, 2006.

Sec. 34. RCW 71.24.049 and 2001 c 323 s 13 are each amended to read as follows:

By January 1st of each odd-numbered year, the ((~~regional support network~~)) behavioral health organization shall identify: (1) The number of children in each priority group, as defined by this chapter, who are receiving mental health services funded in part or in whole under this chapter, (2) the amount of funds under this chapter used for children's mental health services, (3) an estimate of the number of unserved children in each priority group, and (4) the estimated cost of serving these additional children and their families.

Sec. 35. RCW 71.24.061 and 2007 c 359 s 7 are each amended to read as follows:

(1) The department shall provide flexibility in provider contracting to ((~~regional support networks~~)) behavioral health organizations for children's mental health services. Beginning with 2007-2009 biennium contracts, ((~~regional support network~~)) behavioral health organization contracts shall authorize ((~~regional support networks~~)) behavioral health organizations to allow and encourage licensed community mental health centers to subcontract with individual licensed mental health professionals when necessary to meet the need for an adequate, culturally competent, and qualified children's mental health provider network.

(2) To the extent that funds are specifically appropriated for this purpose or that nonstate funds are available, a children's mental health evidence-based practice institute shall be established at the University of Washington division of public behavioral health and justice policy. The institute shall closely collaborate with entities currently engaged in evaluating and promoting the use of evidence- based, research‑based, promising, or consensus‑based practices in children's mental health treatment, including but not limited to the University of Washington department of psychiatry and behavioral sciences, children's hospital and regional medical center, the University of Washington school of nursing, the University of Washington school of social work, and the Washington state institute for public policy. To ensure that funds appropriated are used to the greatest extent possible for their intended purpose, the University of Washington's indirect costs of administration shall not exceed ten percent of appropriated funding. The institute shall:

(a) Improve the implementation of evidence-based and research‑based practices by providing sustained and effective training and consultation to licensed children's mental health providers and child‑serving agencies who are implementing evidence‑based or researched-based practices for treatment of children's emotional or behavioral disorders, or who are interested in adapting these practices to better serve ethnically or culturally diverse children. Efforts under this subsection should include a focus on appropriate oversight of implementation of evidence‑based practices to ensure fidelity to these practices and thereby achieve positive outcomes;

(b) Continue the successful implementation of the "partnerships for success" model by consulting with communities so they may select, implement, and continually evaluate the success of evidence-based practices that are relevant to the needs of children, youth, and families in their community;

(c) Partner with youth, family members, family advocacy, and culturally competent provider organizations to develop a series of information sessions, literature, and online resources for families to become informed and engaged in evidence-based and research‑based practices;

(d) Participate in the identification of outcome-based performance measures under RCW 71.36.025(2) and partner in a statewide effort to implement statewide outcomes monitoring and quality improvement processes; and

(e) Serve as a statewide resource to the department and other entities on child and adolescent evidence-based, research-based, promising, or consensus‑based practices for children's mental health treatment, maintaining a working knowledge through ongoing review of academic and professional literature, and knowledge of other evidence- based practice implementation efforts in Washington and other states.

(3) To the extent that funds are specifically appropriated for this purpose, the department in collaboration with the evidence-based practice institute shall implement a pilot program to support primary care providers in the assessment and provision of appropriate diagnosis and treatment of children with mental and behavioral health disorders and track outcomes of this program. The program shall be designed to promote more accurate diagnoses and treatment through timely case consultation between primary care providers and child psychiatric specialists, and focused educational learning collaboratives with primary care providers.

Sec. 36. RCW 71.24.155 and 2001 c 323 s 14 are each amended to read as follows:

Grants shall be made by the department to ((~~regional support networks~~)) behavioral health organizations for community mental health programs totaling not less than ninety-five percent of available resources. The department may use up to forty percent of the remaining five percent to provide community demonstration projects, including early intervention or primary prevention programs for children, and the remainder shall be for emergency needs and technical assistance under this chapter.

Sec. 37. RCW 71.24.160 and 2011 c 343 s 6 are each amended to read as follows:

The ((~~regional support networks~~)) behavioral health organizations shall make satisfactory showing to the secretary that state funds shall in no case be used to replace local funds from any source being used to finance mental health services prior to January 1, 1990. Maintenance of effort funds devoted to judicial services related to involuntary commitment reimbursed under RCW 71.05.730 must be expended for other purposes that further treatment for mental health and chemical dependency disorders.

Sec. 38. RCW 71.24.250 and 2001 c 323 s 16 are each amended to read as follows:

The ((~~regional support network~~)) behavioral health organization may accept and expend gifts and grants received from private, county, state, and federal sources.

Sec. 39. RCW 71.24.300 and 2008 c 261 s 4 are each amended to read as follows:

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

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

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

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

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

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

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

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

(c) Provide within the boundaries of each ((~~regional support network~~)) behavioral health organization evaluation and treatment services for at least ninety percent of persons detained or committed for periods up to seventeen days according to chapter 71.05 RCW. ((~~Regional support networks~~)) Behavioral health organizations may contract to purchase evaluation and treatment services from other ((~~networks~~)) organizations if they are unable to provide for appropriate resources within their boundaries. Insofar as the original intent of serving persons in the community is maintained, the secretary is authorized to approve exceptions on a case-by-case basis to the requirement to provide evaluation and treatment services within the boundaries of each ((~~regional support network~~)) behavioral health organization. Such exceptions are limited to:

(i) Contracts with neighboring or contiguous regions; or

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

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

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

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

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

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

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

Sec. 40. RCW 71.24.310 and 2013 2nd sp.s. c 4 s 994 are each amended to read as follows:

The legislature finds that administration of chapter 71.05 RCW and this chapter can be most efficiently and effectively implemented as part of the ((~~regional support network~~)) behavioral health organization defined in RCW 71.24.025. For this reason, the legislature intends that the department and the ((~~regional support networks~~)) behavioral health organizations shall work together to implement chapter 71.05 RCW as follows:

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

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

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

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

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

(6) If a ((~~regional support network~~)) behavioral health organization uses more state hospital patient days of care than it has been allocated under subsection (3) or (4) of this section, or than it has contracted to use under subsection (5) of this section, whichever is less, it shall reimburse the department for that care, except during the period of July 1, 2012, through December 31, 2013, where reimbursements may be temporarily altered per section 204, chapter 4, Laws of 2013 2nd sp. sess. The reimbursement rate per day shall be the hospital's total annual budget for long-term inpatient care, divided by the total patient days of care assumed in development of that budget.

(7) One-half of any reimbursements received pursuant to subsection (6) of this section shall be used to support the cost of operating the state hospital and, during the 2007-2009 fiscal biennium, implementing new services that will enable a ((~~regional support network~~)) behavioral health organization to reduce its utilization of the state hospital. The department shall distribute the remaining half of such reimbursements among ((~~regional support networks~~)) behavioral health organizations that have used less than their allocated or contracted patient days of care at that hospital, proportional to the number of patient days of care not used.

Sec. 41. RCW 71.24.350 and 2013 c 23 s 189 are each amended to read as follows:

The department shall require each ((~~regional support network~~)) behavioral health organization to provide for a separately funded mental health ombuds office in each ((~~regional support network~~)) behavioral health organization that is independent of the ((~~regional support network~~)) behavioral health organization. The ombuds office shall maximize the use of consumer advocates.

Sec. 42. RCW 71.24.370 and 2006 c 333 s 103 are each amended to read as follows:

(1) Except for monetary damage claims which have been reduced to final judgment by a superior court, this section applies to all claims against the state, state agencies, state officials, or state employees that exist on or arise after March 29, 2006.

(2) Except as expressly provided in contracts entered into between the department and the ((~~regional support networks~~)) behavioral health organizations after March 29, 2006, the entities identified in subsection (3) of this section shall have no claim for declaratory relief, injunctive relief, judicial review under chapter 34.05 RCW, or civil liability against the state or state agencies for actions or inactions performed pursuant to the administration of this chapter with regard to the following: (a) The allocation or payment of federal or state funds; (b) the use or allocation of state hospital beds; or (c) financial responsibility for the provision of inpatient mental health care.

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

Sec. 43. RCW 71.24.455 and 1997 c 342 s 2 are each amended to read as follows:

(1) The secretary shall select and contract with a ((~~regional support network~~)) behavioral health organization or private provider to provide specialized access and services to ((~~mentally ill~~)) offenders with mental illness upon release from total confinement within the department of corrections who have been identified by the department of corrections and selected by the ((~~regional support network~~)) behavioral health organization or private provider as high-priority clients for services and who meet service program entrance criteria. The program shall enroll no more than twenty-five offenders at any one time, or a number of offenders that can be accommodated within the appropriated funding level, and shall seek to fill any vacancies that occur.

(2) Criteria shall include a determination by department of corrections staff that:

(a) The offender suffers from a major mental illness and needs continued mental health treatment;

(b) The offender's previous crime or crimes have been determined by either the court or department of corrections staff to have been substantially influenced by the offender's mental illness;

(c) It is believed the offender will be less likely to commit further criminal acts if provided ongoing mental health care;

(d) The offender is unable or unlikely to obtain housing and/or treatment from other sources for any reason; and

(e) The offender has at least one year remaining before his or her sentence expires but is within six months of release to community housing and is currently housed within a work release facility or any department of corrections' division of prisons facility.

(3) The ((~~regional support network~~)) behavioral health organization or private provider shall provide specialized access and services to the selected offenders. The services shall be aimed at lowering the risk of recidivism. An oversight committee composed of a representative of the department, a representative of the selected ((~~regional support network~~)) behavioral health organization or private provider, and a representative of the department of corrections shall develop policies to guide the pilot program, provide dispute resolution including making determinations as to when entrance criteria or required services may be waived in individual cases, advise the department of corrections and the ((~~regional support network~~)) behavioral health organization or private provider on the selection of eligible offenders, and set minimum requirements for service contracts. The selected ((~~regional support network~~)) behavioral health organization or private provider shall implement the policies and service contracts. The following services shall be provided:

(a) Intensive case management to include a full range of intensive community support and treatment in client-to-staff ratios of not more than ten offenders per case manager including: (i) A minimum of weekly group and weekly individual counseling; (ii) home visits by the program manager at least two times per month; and (iii) counseling focusing on relapse prevention and past, current, or future behavior of the offender.

(b) The case manager shall attempt to locate and procure housing appropriate to the living and clinical needs of the offender and as needed to maintain the psychiatric stability of the offender. The entire range of emergency, transitional, and permanent housing and involuntary hospitalization must be considered as available housing options. A housing subsidy may be provided to offenders to defray housing costs up to a maximum of six thousand six hundred dollars per offender per year and be administered by the case manager. Additional funding sources may be used to offset these costs when available.

(c) The case manager shall collaborate with the assigned prison, work release, or community corrections staff during release planning, prior to discharge, and in ongoing supervision of the offender while under the authority of the department of corrections.

(d) Medications including the full range of psychotropic medications including atypical antipsychotic medications may be required as a condition of the program. Medication prescription, medication monitoring, and counseling to support offender understanding, acceptance, and compliance with prescribed medication regimens must be included.

(e) A systematic effort to engage offenders to continuously involve themselves in current and long-term treatment and appropriate habilitative activities shall be made.

(f) Classes appropriate to the clinical and living needs of the offender and appropriate to his or her level of understanding.

(g) The case manager shall assist the offender in the application and qualification for entitlement funding, including medicaid, state assistance, and other available government and private assistance at any point that the offender is qualified and resources are available.

(h) The offender shall be provided access to daily activities such as drop-in centers, prevocational and vocational training and jobs, and volunteer activities.

(4) Once an offender has been selected into the pilot program, the offender shall remain in the program until the end of his or her sentence or unless the offender is released from the pilot program earlier by the department of corrections.

(5) Specialized training in the management and supervision of high- crime risk ((~~mentally ill~~)) offenders with mental illness shall be provided to all participating mental health providers by the department and the department of corrections prior to their participation in the program and as requested thereafter.

(6) The pilot program provided for in this section must be providing services by July 1, 1998.

Sec. 44. RCW 71.24.470 and 2009 c 319 s 1 are each amended to read as follows:

(1) The secretary shall contract, to the extent that funds are appropriated for this purpose, for case management services and such other services as the secretary deems necessary to assist offenders identified under RCW 72.09.370 for participation in the offender reentry community safety program. The contracts may be with ((~~regional support networks~~)) behavioral health organizations or any other qualified and appropriate entities.

(2) The case manager has the authority to assist these offenders in obtaining the services, as set forth in the plan created under RCW 72.09.370(2), for up to five years. The services may include coordination of mental health services, assistance with unfunded medical expenses, obtaining chemical dependency treatment, housing, employment services, educational or vocational training, independent living skills, parenting education, anger management services, and such other services as the case manager deems necessary.

(3) The legislature intends that funds appropriated for the purposes of RCW 72.09.370, 71.05.145, and 71.05.212, and this section and distributed to the ((~~regional support networks~~)) behavioral health organizations are to supplement and not to supplant general funding. Funds appropriated to implement RCW 72.09.370, 71.05.145, and 71.05.212, and this section are not to be considered available resources as defined in RCW 71.24.025 and are not subject to the priorities, terms, or conditions in the appropriations act established pursuant to RCW 71.24.035.

(4) The offender reentry community safety program was formerly known as the community integration assistance program.

Sec. 45. RCW 71.24.480 and 2009 c 319 s 2 are each amended to read as follows:

(1) A licensed service provider or ((~~regional support network~~)) behavioral health organization, acting in the course of the provider's or ((~~network's~~)) organization's duties under this chapter, is not liable for civil damages resulting from the injury or death of another caused by a participant in the offender reentry community safety program who is a client of the provider or ((~~network~~)) organization, unless the act or omission of the provider or ((~~network~~)) organization constitutes:

(a) Gross negligence;

(b) Willful or wanton misconduct; or

(c) A breach of the duty to warn of and protect from a client's threatened violent behavior if the client has communicated a serious threat of physical violence against a reasonably ascertainable victim or victims.

(2) In addition to any other requirements to report violations, the licensed service provider and ((~~regional support network~~)) behavioral health organization shall report an offender's expressions of intent to harm or other predatory behavior, regardless of whether there is an ascertainable victim, in progress reports and other established processes that enable courts and supervising entities to assess and address the progress and appropriateness of treatment.

(3) A licensed service provider's or ((~~regional support network's~~)) behavioral health organization's mere act of treating a participant in the offender reentry community safety program is not negligence. Nothing in this subsection alters the licensed service provider's or ((~~regional support network's~~)) behavioral health organization's normal duty of care with regard to the client.

(4) The limited liability provided by this section applies only to the conduct of licensed service providers and ((~~regional support networks~~)) behavioral health organizations and does not apply to conduct of the state.

(5) For purposes of this section, "participant in the offender reentry community safety program" means a person who has been identified under RCW 72.09.370 as an offender who: (a) Is reasonably believed to be dangerous to himself or herself or others; and (b) has a mental disorder.

Sec. 46. RCW 71.24.845 and 2013 c 230 s 1 are each amended to read as follows:

The ((~~regional support networks~~)) behavioral health organizations shall jointly develop a uniform transfer agreement to govern the transfer of clients between ((~~regional support networks~~)) behavioral health organizations. By September 1, 2013, the ((~~regional support networks~~)) behavioral health organizations shall submit the uniform transfer agreement to the department. By December 1, 2013, the department shall establish guidelines to implement the uniform transfer agreement and may modify the uniform transfer agreement as necessary to avoid impacts on state administrative systems.

Sec. 47. RCW 71.24.055 and 2007 c 359 s 4 are each amended to read as follows:

As part of the system transformation initiative, the department of social and health services shall undertake the following activities related specifically to children's mental health services:

(1) The development of recommended revisions to the access to care standards for children. The recommended revisions shall reflect the policies and principles set out in RCW 71.36.005, 71.36.010, and 71.36.025, and recognize that early identification, intervention and prevention services, and brief intervention services may be provided outside of the ((~~regional support network~~)) behavioral health organization system. Revised access to care standards shall assess a child's need for mental health services based upon the child's diagnosis and its negative impact upon his or her persistent impaired functioning in family, school, or the community, and should not solely condition the receipt of services upon a determination that a child is engaged in high risk behavior or is in imminent need of hospitalization or out-of-home placement. Assessment and diagnosis for children under five years of age shall be determined using a nationally accepted assessment tool designed specifically for children of that age. The recommendations shall also address whether amendments to RCW 71.24.025 ((~~(26) and~~)) (27) and (28) and 71.24.035(5) are necessary to implement revised access to care standards;

(2) Development of a revised children's mental health benefit package. The department shall ensure that services included in the children's mental health benefit package reflect the policies and principles included in RCW 71.36.005 and 71.36.025, to the extent allowable under medicaid, Title XIX of the federal social security act. Strong consideration shall be given to developmentally appropriate evidence-based and research‑based practices, family-based interventions, the use of natural and peer supports, and community support services. This effort shall include a review of other states' efforts to fund family‑centered children's mental health services through their medicaid programs;

(3) Consistent with the timeline developed for the system transformation initiative, recommendations for revisions to the children's access to care standards and the children's mental health services benefits package shall be presented to the legislature by January 1, 2009.

Sec. 48. RCW 71.24.065 and 2007 c 359 s 10 are each amended to read as follows:

To the extent funds are specifically appropriated for this purpose, the department of social and health services shall contract for implementation of a wraparound model of integrated children's mental health services delivery in up to four ((~~regional support network~~)) behavioral health organization regions in Washington state in which wraparound programs are not currently operating, and in up to two ((~~regional support network~~)) behavioral health organization regions in which wraparound programs are currently operating. Contracts in regions with existing wraparound programs shall be for the purpose of expanding the number of children served.

(1) Funding provided may be expended for: Costs associated with a request for proposal and contracting process; administrative costs associated with successful bidders' operation of the wraparound model; the evaluation under subsection (5) of this section; and funding for services needed by children enrolled in wraparound model sites that are not otherwise covered under existing state programs. The services provided through the wraparound model sites shall include, but not be limited to, services covered under the medicaid program. The department shall maximize the use of medicaid and other existing state- funded programs as a funding source. However, state funds provided may be used to develop a broader service package to meet needs identified in a child's care plan. Amounts provided shall supplement, and not supplant, state, local, or other funding for services that a child being served through a wraparound site would otherwise be eligible to receive.

(2) The wraparound model sites shall serve children with serious emotional or behavioral disturbances who are at high risk of residential or correctional placement or psychiatric hospitalization, and who have been referred for services from the department, a county juvenile court, a tribal court, a school, or a licensed mental health provider or agency.

(3) Through a request for proposal process, the department shall contract, with ((~~regional support networks~~)) behavioral health organizations, alone or in partnership with either educational service districts or entities licensed to provide mental health services to children with serious emotional or behavioral disturbances, to operate the wraparound model sites. The contractor shall provide care coordination and facilitate the delivery of services and other supports to families using a strength‑based, highly individualized wraparound process. The request for proposal shall require that:

(a) The ((~~regional support network~~)) behavioral health organization agree to use its medicaid revenues to fund services included in the existing ((~~regional support network's~~)) behavioral health organization's benefit package that a medicaid-eligible child participating in the wraparound model site is determined to need;

(b) The contractor provide evidence of commitments from at least the following entities to participate in wraparound care plan development and service provision when appropriate: Community mental health agencies, schools, the department of social and health services children's administration, juvenile courts, the department of social and health services juvenile rehabilitation administration, and managed health care systems contracting with the department under RCW 74.09.522; and

(c) The contractor will operate the wraparound model site in a manner that maintains fidelity to the wraparound process as defined in RCW 71.36.010.

(4) Contracts for operation of the wraparound model sites shall be executed on or before April 1, 2008, with enrollment and service delivery beginning on or before July 1, 2008.

(5) The evidence‑based practice institute established in RCW 71.24.061 shall evaluate the wraparound model sites, measuring outcomes for children served. Outcomes measured shall include, but are not limited to: Decreased out-of-home placement, including residential, group, and foster care, and increased stability of such placements, school attendance, school performance, recidivism, emergency room utilization, involvement with the juvenile justice system, decreased use of psychotropic medication, and decreased hospitalization.

(6) The evidence-based practice institute shall provide a report and recommendations to the appropriate committees of the legislature by December 1, 2010.

Sec. 49. RCW 71.24.240 and 2005 c 503 s 10 are each amended to read as follows:

In order to establish eligibility for funding under this chapter, any ((~~regional support network~~)) behavioral health organization seeking to obtain federal funds for the support of any aspect of a community mental health program as defined in this chapter shall submit program plans to the secretary for prior review and approval before such plans are submitted to any federal agency.

Sec. 50. RCW 71.24.320 and 2008 c 261 s 5 are each amended to read as follows:

(1) If an existing ((~~regional support network~~)) behavioral health organization chooses not to respond to a request for ((~~qualifications~~)) a detailed plan, or is unable to substantially meet the requirements of a request for ((~~qualifications~~)) a detailed plan, or notifies the department of social and health services it will no longer serve as a ((~~regional support network~~)) behavioral health organization, the department shall utilize a procurement process in which other entities recognized by the secretary may bid to serve as the ((~~regional support network~~)) behavioral health organization.

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

(b) The department shall provide detailed briefings to all bidders in accordance with department and state procurement policies.

(c) The request for proposal shall also include a scoring factor for proposals submitted by nonprofit entities that include a component to maximize the utilization of state provided resources and the leverage of other funds for the support of mental health services to persons with mental illness.

(2) A ((~~regional support network~~)) behavioral health organization that voluntarily terminates, refuses to renew, or refuses to sign a mandatory amendment to its contract to act as a ((~~regional support network~~)) behavioral health organization is prohibited from responding to a procurement under this section or serving as a ((~~regional support network~~)) behavioral health organization for five years from the date that the department signs a contract with the entity that will serve as the ((~~regional support network~~)) behavioral health organization.

Sec. 51. RCW 71.24.330 and 2013 c 320 s 9 are each amended to read as follows:

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

(b) The department shall incorporate the criteria to measure the performance of service coordination organizations into contracts with ((~~regional support networks~~)) behavioral health organizations as provided in chapter 70.320 RCW.

(2) The ((~~regional support network~~)) behavioral health organization procurement processes shall encourage the preservation of infrastructure previously purchased by the community mental health service delivery system, the maintenance of linkages between other services and delivery systems, and maximization of the use of available funds for services versus profits. However, a ((~~regional support network~~)) behavioral health organization selected through the procurement process is not required to contract for services with any county‑owned or operated facility. The ((~~regional support network~~)) behavioral health organization procurement process shall provide that public funds appropriated by the legislature shall not be used to promote or deter, encourage, or discourage employees from exercising their rights under Title 29, chapter 7, subchapter II, United States Code or chapter 41.56 RCW.

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

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

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

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

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

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

(f) Include a negotiated alternative dispute resolution clause; and

(g) Include a provision requiring either party to provide one hundred eighty days' notice of any issue that may cause either party to voluntarily terminate, refuse to renew, or refuse to sign a mandatory amendment to the contract to act as a ((~~regional support network~~)) behavioral health organization. If either party decides to voluntarily terminate, refuse to renew, or refuse to sign a mandatory amendment to the contract to serve as a ((~~regional support network~~)) behavioral health organization they shall provide ninety days' advance notice in writing to the other party.

Sec. 52. RCW 71.24.360 and 2012 c 91 s 1 are each amended to read as follows:

(1) The department may establish new ((~~regional support network~~)) behavioral health organization boundaries in any part of the state:

(a) Where more than one ((~~network~~)) organization chooses not to respond to, or is unable to substantially meet the requirements of, the request for ((~~qualifications~~)) a detailed plan under RCW 71.24.320;

(b) Where a ((~~regional support network~~)) behavioral health organization is subject to reprocurement under RCW 71.24.330; or

(c) Where two or more ((~~regional support networks~~)) behavioral health organizations propose to reconfigure themselves to achieve consolidation, in which case the procurement process described in RCW 71.24.320 and 71.24.330(2) does not apply.

(2) The department may establish no fewer than six and no more than fourteen ((~~regional support networks~~)) behavioral health organizations under this chapter. No entity shall be responsible for more than three ((~~regional support networks~~)) behavioral health organizations.

Sec. 53. RCW 71.24.405 and 2001 c 323 s 19 are each amended to read as follows:

The department shall establish a comprehensive and collaborative effort within ((~~regional support networks~~)) behavioral health organizations and with local mental health service providers aimed at creating innovative and streamlined community mental health service delivery systems, in order to carry out the purposes set forth in RCW 71.24.400 and to capture the diversity of the community mental health service delivery system.

The department must accomplish the following:

(1) Identification, review, and cataloging of all rules, regulations, duplicative administrative and monitoring functions, and other requirements that currently lead to inefficiencies in the community mental health service delivery system and, if possible, eliminate the requirements;

(2) The systematic and incremental development of a single system of accountability for all federal, state, and local funds provided to the community mental health service delivery system. Systematic efforts should be made to include federal and local funds into the single system of accountability;

(3) The elimination of process regulations and related contract and reporting requirements. In place of the regulations and requirements, a set of outcomes for mental health adult and children clients according to chapter 71.24 RCW must be used to measure the performance of mental health service providers and ((~~regional support networks~~)) behavioral health organizations. Such outcomes shall focus on stabilizing out-of-home and hospital care, increasing stable community living, increasing age-appropriate activities, achieving family and consumer satisfaction with services, and system efficiencies;

(4) Evaluation of the feasibility of contractual agreements between the department of social and health services and ((~~regional support networks~~)) behavioral health organizations and mental health service providers that link financial incentives to the success or failure of mental health service providers and ((~~regional support networks~~)) behavioral health organizations to meet outcomes established for mental health service clients;

(5) The involvement of mental health consumers and their representatives. Mental health consumers and their representatives will be involved in the development of outcome standards for mental health clients under section 5 of this act; and

(6) An independent evaluation component to measure the success of the department in fully implementing the provisions of RCW 71.24.400 and this section.

Sec. 54. RCW 71.24.430 and 2001 c 323 s 3 are each amended to read as follows:

(1) The department shall ensure the coordination of allied services for mental health clients. The department shall implement strategies for resolving organizational, regulatory, and funding issues at all levels of the system, including the state, the ((~~regional support networks~~)) behavioral health organizations, and local service providers.

(2) The department shall propose, in operating budget requests, transfers of funding among programs to support collaborative service delivery to persons who require services from multiple department programs. The department shall report annually to the appropriate committees of the senate and house of representatives on actions and projects it has taken to promote collaborative service delivery.

Sec. 55. RCW 74.09.522 and 2013 2nd sp.s. c 17 s 13 are each amended to read as follows:

(1) For the purposes of this section:

(a) "Managed health care system" means any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, health insuring organizations, or any combination thereof, that provides directly or by contract health care services covered under this chapter and rendered by licensed providers, on a prepaid capitated basis and that meets the requirements of section 1903(m)(1)(A) of Title XIX of the federal social security act or federal demonstration waivers granted under section 1115(a) of Title XI of the federal social security act;

(b) "Nonparticipating provider" means a person, health care provider, practitioner, facility, or entity, acting within their scope of practice, that does not have a written contract to participate in a managed health care system's provider network, but provides health care services to enrollees of programs authorized under this chapter whose health care services are provided by the managed health care system.

(2) The authority shall enter into agreements with managed health care systems to provide health care services to recipients of temporary assistance for needy families under the following conditions:

(a) Agreements shall be made for at least thirty thousand recipients statewide;

(b) Agreements in at least one county shall include enrollment of all recipients of temporary assistance for needy families;

(c) To the extent that this provision is consistent with section 1903(m) of Title XIX of the federal social security act or federal demonstration waivers granted under section 1115(a) of Title XI of the federal social security act, recipients shall have a choice of systems in which to enroll and shall have the right to terminate their enrollment in a system: PROVIDED, That the authority may limit recipient termination of enrollment without cause to the first month of a period of enrollment, which period shall not exceed twelve months: AND PROVIDED FURTHER, That the authority shall not restrict a recipient's right to terminate enrollment in a system for good cause as established by the authority by rule;

(d) To the extent that this provision is consistent with section 1903(m) of Title XIX of the federal social security act, participating managed health care systems shall not enroll a disproportionate number of medical assistance recipients within the total numbers of persons served by the managed health care systems, except as authorized by the authority under federal demonstration waivers granted under section 1115(a) of Title XI of the federal social security act;

(e)(i) In negotiating with managed health care systems the authority shall adopt a uniform procedure to enter into contractual arrangements, to be included in contracts issued or renewed on or after January 1, 2015, including:

(A) Standards regarding the quality of services to be provided;

(B) The financial integrity of the responding system;

(C) Provider reimbursement methods that incentivize chronic care management within health homes, including comprehensive medication management services for patients with multiple chronic conditions consistent with the findings and goals established in RCW 74.09.5223;

(D) Provider reimbursement methods that reward health homes that, by using chronic care management, reduce emergency department and inpatient use;

(E) Promoting provider participation in the program of training and technical assistance regarding care of people with chronic conditions described in RCW 43.70.533, including allocation of funds to support provider participation in the training, unless the managed care system is an integrated health delivery system that has programs in place for chronic care management;

(F) Provider reimbursement methods within the medical billing processes that incentivize pharmacists or other qualified providers licensed in Washington state to provide comprehensive medication management services consistent with the findings and goals established in RCW 74.09.5223; ((~~and~~))

(G) Evaluation and reporting on the impact of comprehensive medication management services on patient clinical outcomes and total health care costs, including reductions in emergency department utilization, hospitalization, and drug costs; and
(H) Established consistent processes to incentivize integration of behavioral health services in the primary care setting, promoting care that is integrated, collaborative, co-located, and preventive.

(ii)(A) Health home services contracted for under this subsection may be prioritized to enrollees with complex, high cost, or multiple chronic conditions.

(B) Contracts that include the items in (e)(i)(C) through (G) of this subsection must not exceed the rates that would be paid in the absence of these provisions;

(f) The authority shall seek waivers from federal requirements as necessary to implement this chapter;

(g) The authority shall, wherever possible, enter into prepaid capitation contracts that include inpatient care. However, if this is not possible or feasible, the authority may enter into prepaid capitation contracts that do not include inpatient care;

(h) The authority shall define those circumstances under which a managed health care system is responsible for out-of-plan services and assure that recipients shall not be charged for such services;

(i) Nothing in this section prevents the authority from entering into similar agreements for other groups of people eligible to receive services under this chapter; and

(j) The authority must consult with the federal center for medicare and medicaid innovation and seek funding opportunities to support health homes.

(3) The authority shall ensure that publicly supported community health centers and providers in rural areas, who show serious intent and apparent capability to participate as managed health care systems are seriously considered as contractors. The authority shall coordinate its managed care activities with activities under chapter 70.47 RCW.

(4) The authority shall work jointly with the state of Oregon and other states in this geographical region in order to develop recommendations to be presented to the appropriate federal agencies and the United States congress for improving health care of the poor, while controlling related costs.

(5) The legislature finds that competition in the managed health care marketplace is enhanced, in the long term, by the existence of a large number of managed health care system options for medicaid clients. In a managed care delivery system, whose goal is to focus on prevention, primary care, and improved enrollee health status, continuity in care relationships is of substantial importance, and disruption to clients and health care providers should be minimized. To help ensure these goals are met, the following principles shall guide the authority in its healthy options managed health care purchasing efforts:

(a) All managed health care systems should have an opportunity to contract with the authority to the extent that minimum contracting requirements defined by the authority are met, at payment rates that enable the authority to operate as far below appropriated spending levels as possible, consistent with the principles established in this section.

(b) Managed health care systems should compete for the award of contracts and assignment of medicaid beneficiaries who do not voluntarily select a contracting system, based upon:

(i) Demonstrated commitment to or experience in serving low-income populations;

(ii) Quality of services provided to enrollees;

(iii) Accessibility, including appropriate utilization, of services offered to enrollees;

(iv) Demonstrated capability to perform contracted services, including ability to supply an adequate provider network;

(v) Payment rates; and

(vi) The ability to meet other specifically defined contract requirements established by the authority, including consideration of past and current performance and participation in other state or federal health programs as a contractor.

(d) Quality, accessibility, and demonstrated commitment to serving low-income populations shall be given significant weight in the contracting, evaluation, and assignment process.

(e) All contractors that are regulated health carriers must meet state minimum net worth requirements as defined in applicable state laws. The authority shall adopt rules establishing the minimum net worth requirements for contractors that are not regulated health carriers. This subsection does not limit the authority of the Washington state health care authority to take action under a contract upon finding that a contractor's financial status seriously jeopardizes the contractor's ability to meet its contract obligations.

(f) Procedures for resolution of disputes between the authority and contract bidders or the authority and contracting carriers related to the award of, or failure to award, a managed care contract must be clearly set out in the procurement document.

(6) The authority may apply the principles set forth in subsection (5) of this section to its managed health care purchasing efforts on behalf of clients receiving supplemental security income benefits to the extent appropriate.

      (7) By April 1, 2016, any contract with a managed health care system to provide services to medical assistance enrollees shall require that managed health care systems offer contracts to behavioral health organizations, mental health providers, or chemical dependency treatment providers to provide access to primary care services integrated into behavioral health clinical settings, for individuals with behavioral health and medical comorbidities.
      (8) Managed health care system contracts effective on or after April 1, 2016, shall serve geographic areas that correspond to the regional service areas established in section 2 of this act.
      (9) A managed health care system shall pay a nonparticipating provider that provides a service covered under this chapter to the system's enrollee no more than the lowest amount paid for that service under the managed health care system's contracts with similar providers in the state.

((~~(8)~~)) (10) For services covered under this chapter to medical assistance or medical care services enrollees and provided on or after August 24, 2011, nonparticipating providers must accept as payment in full the amount paid by the managed health care system under subsection (7) of this section in addition to any deductible, coinsurance, or copayment that is due from the enrollee for the service provided. An enrollee is not liable to any nonparticipating provider for covered services, except for amounts due for any deductible, coinsurance, or copayment under the terms and conditions set forth in the managed health care system contract to provide services under this section.

((~~(9)~~)) (11) Pursuant to federal managed care access standards, 42 C.F.R. Sec. 438, managed health care systems must maintain a network of appropriate providers that is supported by written agreements sufficient to provide adequate access to all services covered under the contract with the authority, including hospital-based physician services. The authority will monitor and periodically report on the proportion of services provided by contracted providers and nonparticipating providers, by county, for each managed health care system to ensure that managed health care systems are meeting network adequacy requirements. No later than January 1st of each year, the authority will review and report its findings to the appropriate policy and fiscal committees of the legislature for the preceding state fiscal year.

((~~(10)~~)) (12) Payments under RCW 74.60.130 are exempt from this section.

((~~(11)~~)) (13) Subsections ((~~(7)~~)) (9) through ((~~(9)~~)) (11) of this section expire July 1, 2016.

Sec. 56. RCW 9.41.280 and 2009 c 453 s 1 are each amended to read as follows:

(1) It is unlawful for a person to carry onto, or to possess on, public or private elementary or secondary school premises, school- provided transportation, or areas of facilities while being used exclusively by public or private schools:

(a) Any firearm;

(b) Any other dangerous weapon as defined in RCW 9.41.250;

(c) Any device commonly known as "nun-chu-ka sticks", consisting of two or more lengths of wood, metal, plastic, or similar substance connected with wire, rope, or other means;

(d) Any device, commonly known as "throwing stars", which are multi-pointed, metal objects designed to embed upon impact from any aspect;

(e) Any air gun, including any air pistol or air rifle, designed to propel a BB, pellet, or other projectile by the discharge of compressed air, carbon dioxide, or other gas; or

(f)(i) Any portable device manufactured to function as a weapon and which is commonly known as a stun gun, including a projectile stun gun which projects wired probes that are attached to the device that emit an electrical charge designed to administer to a person or an animal an electric shock, charge, or impulse; or

(ii) Any device, object, or instrument which is used or intended to be used as a weapon with the intent to injure a person by an electric shock, charge, or impulse.

(2) Any such person violating subsection (1) of this section is guilty of a gross misdemeanor. If any person is convicted of a violation of subsection (1)(a) of this section, the person shall have his or her concealed pistol license, if any revoked for a period of three years. Anyone convicted under this subsection is prohibited from applying for a concealed pistol license for a period of three years. The court shall send notice of the revocation to the department of licensing, and the city, town, or county which issued the license.

Any violation of subsection (1) of this section by elementary or secondary school students constitutes grounds for expulsion from the state's public schools in accordance with RCW 28A.600.010. An appropriate school authority shall promptly notify law enforcement and the student's parent or guardian regarding any allegation or indication of such violation.

Upon the arrest of a person at least twelve years of age and not more than twenty-one years of age for violating subsection (1)(a) of this section, the person shall be detained or confined in a juvenile or adult facility for up to seventy-two hours. The person shall not be released within the seventy-two hours until after the person has been examined and evaluated by the designated mental health professional unless the court in its discretion releases the person sooner after a determination regarding probable cause or on probation bond or bail.

Within twenty-four hours of the arrest, the arresting law enforcement agency shall refer the person to the designated mental health professional for examination and evaluation under chapter 71.05 or 71.34 RCW and inform a parent or guardian of the person of the arrest, detention, and examination. The designated mental health professional shall examine and evaluate the person subject to the provisions of chapter 71.05 or 71.34 RCW. The examination shall occur at the facility in which the person is detained or confined. If the person has been released on probation, bond, or bail, the examination shall occur wherever is appropriate.

The designated mental health professional may determine whether to refer the person to the county-designated chemical dependency specialist for examination and evaluation in accordance with chapter 70.96A RCW. The county-designated chemical dependency specialist shall examine the person subject to the provisions of chapter 70.96A RCW. The examination shall occur at the facility in which the person is detained or confined. If the person has been released on probation, bond, or bail, the examination shall occur wherever is appropriate.

Upon completion of any examination by the designated mental health professional or the county-designated chemical dependency specialist, the results of the examination shall be sent to the court, and the court shall consider those results in making any determination about the person.

The designated mental health professional and county-designated chemical dependency specialist shall, to the extent permitted by law, notify a parent or guardian of the person that an examination and evaluation has taken place and the results of the examination. Nothing in this subsection prohibits the delivery of additional, appropriate mental health examinations to the person while the person is detained or confined.

If the designated mental health professional determines it is appropriate, the designated mental health professional may refer the person to the local ((~~regional support network~~)) behavioral health organization for follow-up services or the department of social and health services or other community providers for other services to the family and individual.

(3) Subsection (1) of this section does not apply to:

(a) Any student or employee of a private military academy when on the property of the academy;

(b) Any person engaged in military, law enforcement, or school district security activities. However, a person who is not a commissioned law enforcement officer and who provides school security services under the direction of a school administrator may not possess a device listed in subsection (1)(f) of this section unless he or she has successfully completed training in the use of such devices that is equivalent to the training received by commissioned law enforcement officers;

(c) Any person who is involved in a convention, showing, demonstration, lecture, or firearms safety course authorized by school authorities in which the firearms of collectors or instructors are handled or displayed;

(d) Any person while the person is participating in a firearms or air gun competition approved by the school or school district;

(e) Any person in possession of a pistol who has been issued a license under RCW 9.41.070, or is exempt from the licensing requirement by RCW 9.41.060, while picking up or dropping off a student;

(f) Any nonstudent at least eighteen years of age legally in possession of a firearm or dangerous weapon that is secured within an attended vehicle or concealed from view within a locked unattended vehicle while conducting legitimate business at the school;

(g) Any nonstudent at least eighteen years of age who is in lawful possession of an unloaded firearm, secured in a vehicle while conducting legitimate business at the school; or

(h) Any law enforcement officer of the federal, state, or local government agency.

(4) Subsections (1)(c) and (d) of this section do not apply to any person who possesses nun-chu-ka sticks, throwing stars, or other dangerous weapons to be used in martial arts classes authorized to be conducted on the school premises.

(5) Subsection (1)(f)(i) of this section does not apply to any person who possesses a device listed in subsection (1)(f)(i) of this section, if the device is possessed and used solely for the purpose approved by a school for use in a school authorized event, lecture, or activity conducted on the school premises.

(6) Except as provided in subsection (3)(b), (c), (f), and (h) of this section, firearms are not permitted in a public or private school building.

(7) "GUN-FREE ZONE" signs shall be posted around school facilities giving warning of the prohibition of the possession of firearms on school grounds.

Sec. 57. RCW 10.31.110 and 2011 c 305 s 7 and 2011 c 148 s 3 are each reenacted and amended to read as follows:

(1) When a police officer has reasonable cause to believe that the individual has committed acts constituting a nonfelony crime that is not a serious offense as identified in RCW 10.77.092 and the individual is known by history or consultation with the ((~~regional support network~~)) behavioral health organization to suffer from a mental disorder, the arresting officer may:

(a) Take the individual to a crisis stabilization unit as defined in RCW 71.05.020(6). Individuals delivered to a crisis stabilization unit pursuant to this section may be held by the facility for a period of up to twelve hours. The individual must be examined by a mental health professional within three hours of arrival;

(b) Take the individual to a triage facility as defined in RCW 71.05.020. An individual delivered to a triage facility which has elected to operate as an involuntary facility may be held up to a period of twelve hours. The individual must be examined by a mental health professional within three hours of arrival;

(c) Refer the individual to a mental health professional for evaluation for initial detention and proceeding under chapter 71.05 RCW; or

(d) Release the individual upon agreement to voluntary participation in outpatient treatment.

(2) If the individual is released to the community, the mental health provider shall inform the arresting officer of the release within a reasonable period of time after the release if the arresting officer has specifically requested notification and provided contact information to the provider.

(3) In deciding whether to refer the individual to treatment under this section, the police officer shall be guided by standards mutually agreed upon with the prosecuting authority, which address, at a minimum, the length, seriousness, and recency of the known criminal history of the individual, the mental health history of the individual, where available, and the circumstances surrounding the commission of the alleged offense.

(4) Any agreement to participate in treatment shall not require individuals to stipulate to any of the alleged facts regarding the criminal activity as a prerequisite to participation in a mental health treatment alternative. The agreement is inadmissible in any criminal or civil proceeding. The agreement does not create immunity from prosecution for the alleged criminal activity.

(5) If an individual violates such agreement and the mental health treatment alternative is no longer appropriate:

(a) The mental health provider shall inform the referring law enforcement agency of the violation; and

(b) The original charges may be filed or referred to the prosecutor, as appropriate, and the matter may proceed accordingly.

(6) The police officer is immune from liability for any good faith conduct under this section.

Sec. 58. RCW 10.77.010 and 2011 c 89 s 4 are each amended to read as follows:

As used in this chapter:

(1) "Admission" means acceptance based on medical necessity, of a person as a patient.

(2) "Commitment" means the determination by a court that a person should be detained for a period of either evaluation or treatment, or both, in an inpatient or a less-restrictive setting.

(3) "Conditional release" means modification of a court-ordered commitment, which may be revoked upon violation of any of its terms.

(4) A "criminally insane" person means any person who has been acquitted of a crime charged by reason of insanity, and thereupon found to be a substantial danger to other persons or to present a substantial likelihood of committing criminal acts jeopardizing public safety or security unless kept under further control by the court or other persons or institutions.

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

(6) "Designated mental health professional" has the same meaning as provided in RCW 71.05.020.

(7) "Detention" or "detain" means the lawful confinement of a person, under the provisions of this chapter, pending evaluation.

(8) "Developmental disabilities professional" means a person who has specialized training and three years of experience in directly treating or working with persons with developmental disabilities and is a psychiatrist or psychologist, or a social worker, and such other developmental disabilities professionals as may be defined by rules adopted by the secretary.

(9) "Developmental disability" means the condition as defined in RCW 71A.10.020((~~(3)~~))(4).

(10) "Discharge" means the termination of hospital medical authority. The commitment may remain in place, be terminated, or be amended by court order.

(11) "Furlough" means an authorized leave of absence for a resident of a state institution operated by the department designated for the custody, care, and treatment of the criminally insane, consistent with an order of conditional release from the court under this chapter, without any requirement that the resident be accompanied by, or be in the custody of, any law enforcement or institutional staff, while on such unescorted leave.

(12) "Habilitative services" means those services provided by program personnel to assist persons in acquiring and maintaining life skills and in raising their levels of physical, mental, social, and vocational functioning. Habilitative services include education, training for employment, and therapy. The habilitative process shall be undertaken with recognition of the risk to the public safety presented by the person being assisted as manifested by prior charged criminal conduct.

(13) "History of one or more violent acts" means violent acts committed during: (a) The ten-year period of time prior to the filing of criminal charges; plus (b) the amount of time equal to time spent during the ten-year period in a mental health facility or in confinement as a result of a criminal conviction.

(14) "Immediate family member" means a spouse, child, stepchild, parent, stepparent, grandparent, sibling, or domestic partner.

(15) "Incompetency" means a person lacks the capacity to understand the nature of the proceedings against him or her or to assist in his or her own defense as a result of mental disease or defect.

(16) "Indigent" means any person who is financially unable to obtain counsel or other necessary expert or professional services without causing substantial hardship to the person or his or her family.

(17) "Individualized service plan" means a plan prepared by a developmental disabilities professional with other professionals as a team, for an individual with developmental disabilities, which shall state:

(a) The nature of the person's specific problems, prior charged criminal behavior, and habilitation needs;

(b) The conditions and strategies necessary to achieve the purposes of habilitation;

(d) The rationale for using this plan of habilitation to achieve those intermediate and long-range goals;

(e) The staff responsible for carrying out the plan;

(f) Where relevant in light of past criminal behavior and due consideration for public safety, the criteria for proposed movement to less-restrictive settings, criteria for proposed eventual release, and a projected possible date for release; and

(g) The type of residence immediately anticipated for the person and possible future types of residences.

(18) "Professional person" means:

(a) A psychiatrist licensed as a physician and surgeon in this state who has, in addition, completed three years of graduate training in psychiatry in a program approved by the American medical association or the American osteopathic association and is certified or eligible to be certified by the American board of psychiatry and neurology or the American osteopathic board of neurology and psychiatry;

(b) A psychologist licensed as a psychologist pursuant to chapter 18.83 RCW; or

(c) A social worker with a master's or further advanced degree from a social work educational program accredited and approved as provided in RCW 18.320.010.

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

(20) "Release" means legal termination of the court-ordered commitment under the provisions of this chapter.

(21) "Secretary" means the secretary of the department of social and health services or his or her designee.

(22) "Treatment" means any currently standardized medical or mental health procedure including medication.

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

(24) "Violent act" means behavior that: (a)(i) Resulted in; (ii) if completed as intended would have resulted in; or (iii) was threatened to be carried out by a person who had the intent and opportunity to carry out the threat and would have resulted in, homicide, nonfatal injuries, or substantial damage to property; or (b) recklessly creates an immediate risk of serious physical injury to another person. As used in this subsection, "nonfatal injuries" means physical pain or injury, illness, or an impairment of physical condition. "Nonfatal injuries" shall be construed to be consistent with the definition of "bodily injury," as defined in RCW 9A.04.110.

Sec. 59. RCW 10.77.065 and 2013 c 214 s 1 are each amended to read as follows:

(1)(a)(i) The expert conducting the evaluation shall provide his or her report and recommendation to the court in which the criminal proceeding is pending. For a competency evaluation of a defendant who is released from custody, if the evaluation cannot be completed within twenty‑one days due to a lack of cooperation by the defendant, the evaluator shall notify the court that he or she is unable to complete the evaluation because of such lack of cooperation.

(ii) A copy of the report and recommendation shall be provided to the designated mental health professional, the prosecuting attorney, the defense attorney, and the professional person at the local correctional facility where the defendant is being held, or if there is no professional person, to the person designated under (a)(iv) of this subsection. Upon request, the evaluator shall also provide copies of any source documents relevant to the evaluation to the designated mental health professional.

(iii) Any facility providing inpatient services related to competency shall discharge the defendant as soon as the facility determines that the defendant is competent to stand trial. Discharge shall not be postponed during the writing and distribution of the evaluation report. Distribution of an evaluation report by a facility providing inpatient services shall ordinarily be accomplished within two working days or less following the final evaluation of the defendant. If the defendant is discharged to the custody of a local correctional facility, the local correctional facility must continue the medication regimen prescribed by the facility, when clinically appropriate, unless the defendant refuses to cooperate with medication.

(iv) If there is no professional person at the local correctional facility, the local correctional facility shall designate a professional person as defined in RCW 71.05.020 or, in cooperation with the ((~~regional support network~~)) behavioral health organization, a professional person at the ((~~regional support network~~)) behavioral health organization to receive the report and recommendation.

(v) Upon commencement of a defendant's evaluation in the local correctional facility, the local correctional facility must notify the evaluator of the name of the professional person, or person designated under (a)(iv) of this subsection, to receive the report and recommendation.

(b) If the evaluator concludes, under RCW 10.77.060(3)(f), the person should be evaluated by a designated mental health professional under chapter 71.05 RCW, the court shall order such evaluation be conducted prior to release from confinement when the person is acquitted or convicted and sentenced to confinement for twenty-four months or less, or when charges are dismissed pursuant to a finding of incompetent to stand trial.

(2) The designated mental health professional shall provide written notification within twenty-four hours of the results of the determination whether to commence proceedings under chapter 71.05 RCW. The notification shall be provided to the persons identified in subsection (1)(a) of this section.

(3) The prosecuting attorney shall provide a copy of the results of any proceedings commenced by the designated mental health professional under subsection (2) of this section to the secretary.

(4) A facility conducting a civil commitment evaluation under RCW 10.77.086(4) or 10.77.088(1)(b)(ii) that makes a determination to release the person instead of filing a civil commitment petition must provide written notice to the prosecutor and defense attorney at least twenty-four hours prior to release. The notice may be given by electronic mail, facsimile, or other means reasonably likely to communicate the information immediately.

(5) The fact of admission and all information and records compiled, obtained, or maintained in the course of providing services under this chapter may also be disclosed to the courts solely to prevent the entry of any evaluation or treatment order that is inconsistent with any order entered under chapter 71.05 RCW.

Sec. 60. RCW 28A.310.202 and 2007 c 359 s 9 are each amended to read as follows:

Educational service district boards may partner with ((~~regional support networks~~)) behavioral health organizations to respond to a request for proposal for operation of a wraparound model site under chapter 359, Laws of 2007 and, if selected, may contract for the provision of services to coordinate care and facilitate the delivery of services and other supports under a wraparound model.

Sec. 61. RCW 43.185.060 and 1994 c 160 s 2 are each amended to read as follows:

Organizations that may receive assistance from the department under this chapter are local governments, local housing authorities, ((~~regional support networks~~)) behavioral health organizations established under chapter 71.24 RCW, nonprofit community or neighborhood-based organizations, federally recognized Indian tribes in the state of Washington, and regional or statewide nonprofit housing assistance organizations.

Eligibility for assistance from the department under this chapter also requires compliance with the revenue and taxation laws, as applicable to the recipient, at the time the grant is made.

Sec. 62. RCW 43.185.070 and 2013 c 145 s 3 are each amended to read as follows:

(1) During each calendar year in which funds from the housing trust fund or other legislative appropriations are available for use by the department for the housing assistance program, the department must announce to all known interested parties, and through major media throughout the state, a grant and loan application period of at least ninety days' duration. This announcement must be made as often as the director deems appropriate for proper utilization of resources. The department must then promptly grant as many applications as will utilize available funds less appropriate administrative costs of the department as provided in RCW 43.185.050.

(2) In awarding funds under this chapter, the department must:

(a) Provide for a geographic distribution on a statewide basis; and

(b) Until June 30, 2013, consider the total cost and per-unit cost of each project for which an application is submitted for funding under RCW 43.185.050(2) (a) and (j), as compared to similar housing projects constructed or renovated within the same geographic area.

(3) The department, with advice and input from the affordable housing advisory board established in RCW 43.185B.020, or a subcommittee of the affordable housing advisory board, must report recommendations for awarding funds in a cost-effective manner. The report must include an implementation plan, timeline, and any other items the department identifies as important to consider to the legislature by December 1, 2012.

(4) The department must give first priority to applications for projects and activities which utilize existing privately owned housing stock including privately owned housing stock purchased by nonprofit public development authorities and public housing authorities as created in chapter 35.82 RCW. As used in this subsection, privately owned housing stock includes housing that is acquired by a federal agency through a default on the mortgage by the private owner. Such projects and activities must be evaluated under subsection (5) of this section. Second priority must be given to activities and projects which utilize existing publicly owned housing stock. All projects and activities must be evaluated by some or all of the criteria under subsection (5) of this section, and similar projects and activities shall be evaluated under the same criteria.

(5) The department must give preference for applications based on some or all of the criteria under this subsection, and similar projects and activities must be evaluated under the same criteria:

(a) The degree of leveraging of other funds that will occur;

(b) The degree of commitment from programs to provide necessary habilitation and support services for projects focusing on special needs populations;

(c) Recipient contributions to total project costs, including allied contributions from other sources such as professional, craft and trade services, and lender interest rate subsidies;

(d) Local government project contributions in the form of infrastructure improvements, and others;

(e) Projects that encourage ownership, management, and other project-related responsibility opportunities;

(f) Projects that demonstrate a strong probability of serving the original target group or income level for a period of at least twenty- five years;

(g) The applicant has the demonstrated ability, stability and resources to implement the project;

(h) Projects which demonstrate serving the greatest need;

(i) Projects that provide housing for persons and families with the lowest incomes;

(j) Projects serving special needs populations which are under statutory mandate to develop community housing;

(k) Project location and access to employment centers in the region or area;

(l) Projects that provide employment and training opportunities for disadvantaged youth under a youthbuild or youthbuild-type program as defined in RCW 50.72.020; and

(m) Project location and access to available public transportation services.

(6) The department may only approve applications for projects for persons with mental illness that are consistent with a ((~~regional support network~~)) behavioral health organization six-year capital and operating plan.

Sec. 63. RCW 43.185.110 and 1993 c 478 s 15 are each amended to read as follows:

The affordable housing advisory board established in RCW 43.185B.020 shall advise the director on housing needs in this state, including housing needs for persons ((~~who are mentally ill or developmentally disabled~~)) with mental illness or developmental disabilities or youth who are blind or deaf or otherwise disabled, operational aspects of the grant and loan program or revenue collection programs established by this chapter, and implementation of the policy and goals of this chapter. Such advice shall be consistent with policies and plans developed by ((~~regional support networks~~)) behavioral health organizations according to chapter 71.24 RCW for ((~~the mentally ill~~)) individuals with mental illness and the developmental disabilities planning council for ((~~the developmentally disabled~~)) individuals with developmental disabilities.

Sec. 64. RCW 43.20A.895 and 2013 c 338 s 2 are each amended to read as follows:

(1) The systems responsible for financing, administration, and delivery of publicly funded mental health and chemical dependency services to adults must be designed and administered to achieve improved outcomes for adult clients served by those systems through increased use and development of evidence-based, research-based, and promising practices, as defined in RCW 71.24.025. For purposes of this section, client outcomes include: Improved health status; increased participation in employment and education; reduced involvement with the criminal justice system; enhanced safety and access to treatment for forensic patients; reduction in avoidable utilization of and costs associated with hospital, emergency room, and crisis services; increased housing stability; improved quality of life, including measures of recovery and resilience; and decreased population level disparities in access to treatment and treatment outcomes.

(2) The department and the health care authority must implement a strategy for the improvement of the adult behavioral health system.

(a) The department must establish a steering committee that includes at least the following members: Behavioral health service recipients and their families; local government; representatives of ((~~regional support networks~~)) behavioral health organizations; representatives of county coordinators; law enforcement; city and county jails; tribal representatives; behavioral health service providers, including at least one chemical dependency provider and at least one psychiatric advanced registered nurse practitioner; housing providers; medicaid managed care plan representatives; long-term care service providers; organizations representing health care professionals providing services in mental health settings; the Washington state hospital association; the Washington state medical association; individuals with expertise in evidence-based and research-based behavioral health service practices; and the health care authority.

(b) The adult behavioral health system improvement strategy must include:

(i) An assessment of the capacity of the current publicly funded behavioral health services system to provide evidence-based, research- based, and promising practices;

(ii) Identification, development, and increased use of evidence- based, research-based, and promising practices;

(iii) Design and implementation of a transparent quality management system, including analysis of current system capacity to implement outcomes reporting and development of baseline and improvement targets for each outcome measure provided in this section;

(iv) Identification and phased implementation of service delivery, financing, or other strategies that will promote improvement of the behavioral health system as described in this section and incentivize the medical care, behavioral health, and long-term care service delivery systems to achieve the improvements described in this section and collaborate across systems. The strategies must include phased implementation of public reporting of outcome and performance measures in a form that allows for comparison of performance and levels of improvement between geographic regions of Washington; and

(v) Identification of effective methods for promoting workforce capacity, efficiency, stability, diversity, and safety.

(c) The department must seek private foundation and federal grant funding to support the adult behavioral health system improvement strategy.

(d) By May 15, 2014, the Washington state institute for public policy, in consultation with the department, the University of Washington evidence-based practice institute, the University of Washington alcohol and drug abuse institute, and the Washington institute for mental health research and training, shall prepare an inventory of evidence-based, research-based, and promising practices for prevention and intervention services pursuant to subsection (1) of this section. The department shall use the inventory in preparing the behavioral health improvement strategy. The department shall provide the institute with data necessary to complete the inventory.

(e) By August 1, 2014, the department must report to the governor and the relevant fiscal and policy committees of the legislature on the status of implementation of the behavioral health improvement strategy, including strategies developed or implemented to date, timelines, and costs to accomplish phased implementation of the adult behavioral health system improvement strategy.

(3) The department must contract for the services of an independent consultant to review the provision of forensic mental health services in Washington state and provide recommendations as to whether and how the state's forensic mental health system should be modified to provide an appropriate treatment environment for individuals with mental disorders who have been charged with a crime while enhancing the safety and security of the public and other patients and staff at forensic treatment facilities. By August 1, 2014, the department must submit a report regarding the recommendations of the independent consultant to the governor and the relevant fiscal and policy committees of the legislature.

Sec. 65. RCW 43.20A.897 and 2013 c 338 s 7 are each amended to read as follows:

(1) By November 30, 2013, the department and the health care authority must report to the governor and the relevant fiscal and policy committees of the legislature, consistent with RCW 43.01.036, a plan that establishes a tribal-centric behavioral health system incorporating both mental health and chemical dependency services. The plan must assure that child, adult, and older adult American Indians and Alaskan Natives eligible for medicaid have increased access to culturally appropriate mental health and chemical dependency services. The plan must:

(a) Include implementation dates, major milestones, and fiscal estimates as needed;

(b) Emphasize the use of culturally appropriate evidence-based and promising practices;

(c) Address equitable access to crisis services, outpatient care, voluntary and involuntary hospitalization, and behavioral health care coordination;

(d) Identify statutory changes necessary to implement the tribal- centric behavioral health system; and

(e) Be developed with the department's Indian policy advisory committee and the American Indian health commission, in consultation with Washington's federally recognized tribes.

(2) The department shall enter into agreements with the tribes and urban Indian health programs and modify ((~~regional support network~~)) behavioral health organization contracts as necessary to develop a tribal-centric behavioral health system that better serves the needs of the tribes.

Sec. 66. RCW 43.20C.020 and 2012 c 232 s 3 are each amended to read as follows:

The department of social and health services shall accomplish the following in consultation and collaboration with the Washington state institute for public policy, the evidence-based practice institute at the University of Washington, a university-based child welfare partnership and research entity, other national experts in the delivery of evidence-based services, and organizations representing Washington practitioners:

(1) By September 30, 2012, the Washington state institute for public policy, the University of Washington evidence-based practice institute, in consultation with the department shall publish descriptive definitions of evidence-based, research-based, and promising practices in the areas of child welfare, juvenile rehabilitation, and children's mental health services.

(a) In addition to descriptive definitions, the Washington state institute for public policy and the University of Washington evidence- based practice institute must prepare an inventory of evidence-based, research-based, and promising practices for prevention and intervention services that will be used for the purpose of completing the baseline assessment described in subsection (2) of this section. The inventory shall be periodically updated as more practices are identified.

(b) In identifying evidence-based and research-based services, the Washington state institute for public policy and the University of Washington evidence-based practice institute must:

(i) Consider any available systemic evidence-based assessment of a program's efficacy and cost-effectiveness; and

(ii) Attempt to identify assessments that use valid and reliable evidence.

(c) Using state, federal, or private funds, the department shall prioritize the assessment of promising practices identified in (a) of this subsection with the goal of increasing the number of such practices that meet the standards for evidence-based and research-based practices.

(2) By June 30, 2013, the department and the health care authority shall complete a baseline assessment of utilization of evidence-based and research-based practices in the areas of child welfare, juvenile rehabilitation, and children's mental health services. The assessment must include prevention and intervention services provided through medicaid fee-for-service and healthy options managed care contracts. The assessment shall include estimates of:

(a) The number of children receiving each service;

(b) For juvenile rehabilitation and child welfare services, the total amount of state and federal funds expended on the service;

(c) For children's mental health services, the number and percentage of encounters using these services that are provided to children served by ((~~regional support networks~~)) behavioral health organizations and children receiving mental health services through medicaid fee-for-service or healthy options;

(d) The relative availability of the service in the various regions of the state; and

(e) To the extent possible, the unmet need for each service.

(3)(a) By December 30, 2013, the department and the health care authority shall report to the governor and to the appropriate fiscal and policy committees of the legislature on recommended strategies, timelines, and costs for increasing the use of evidence-based and research-based practices. The report must distinguish between a reallocation of existing funding to support the recommended strategies and new funding needed to increase the use of the practices.

(b) The department shall provide updated recommendations to the governor and the legislature by December 30, 2014, and by December 30, 2015.

(4)(a) The report required under subsection (3) of this section must include recommendations for the reallocation of resources for evidence-based and research-based practices and substantial increases above the baseline assessment of the use of evidence-based and research-based practices for the 2015-2017 and the 2017-2019 biennia. The recommendations for increases shall be consistent with subsection (2) of this section.

(b) If the department or health care authority anticipates that it will not meet its recommended levels for an upcoming biennium as set forth in its report, it must report to the legislature by November 1st of the year preceding the biennium. The report shall include:

(i) The identified impediments to meeting the recommended levels;

(ii) The current and anticipated performance level; and

(iii) Strategies that will be undertaken to improve performance.

(5) Recommendations made pursuant to subsections (3) and (4) of this section must include strategies to identify programs that are effective with ethnically diverse clients and to consult with tribal governments, experts within ethnically diverse communities, and community organizations that serve diverse communities.

Sec. 67. RCW 43.20C.030 and 2012 c 232 s 4 are each amended to read as follows:

The department of social and health services, in consultation with a university-based evidence-based practice institute entity in Washington, the Washington partnership council on juvenile justice, the child mental health systems of care planning committee, the children, youth, and family advisory committee, the Washington state racial disproportionality advisory committee, a university-based child welfare research entity in Washington state, ((~~regional support networks~~)) behavioral health organizations, the Washington association of juvenile court administrators, and the Washington state institute for public policy, shall:

(1) Develop strategies to use unified and coordinated case plans for children, youth, and their families who are or are likely to be involved in multiple systems within the department;

(2) Use monitoring and quality control procedures designed to measure fidelity with evidence-based and research-based prevention and treatment programs; and

(3) Utilize any existing data reporting and system of quality management processes at the state and local level for monitoring the quality control and fidelity of the implementation of evidence-based and research-based practices.

Sec. 68. RCW 44.28.800 and 1998 c 297 s 61 are each amended to read as follows:

The joint legislative audit and review committee shall conduct an evaluation of the efficiency and effectiveness of chapter 297, Laws of 1998 in meeting its stated goals. Such an evaluation shall include the operation of the state mental hospitals and the ((~~regional support networks~~)) behavioral health organizations, as well as any other appropriate entity. The joint legislative audit and review committee shall prepare an interim report of its findings which shall be delivered to the appropriate legislative committees of the house of representatives and the senate no later than September 1, 2000. In addition, the joint legislative audit and review committee shall prepare a final report of its findings which shall be delivered to the appropriate legislative committees of the house of representatives and the senate no later than January 1, 2001.

Sec. 69. RCW 48.01.220 and 1993 c 462 s 104 are each amended to read as follows:

The activities and operations of mental health ((~~regional support networks~~)) behavioral health organizations, to the extent they pertain to the operation of a medical assistance managed care system in accordance with chapters 71.24 and 74.09 RCW, are exempt from the requirements of this title.

Sec. 70. RCW 70.02.010 and 2013 c 200 s 1 are each amended to read as follows: