WHEREAS, The Eastern Washington Elite Dance Teams consist of three teams with 41 total dancers; and

      WHEREAS, The Senior Elite and Senior Prep teams each include 14 dancers, with members ranging from ninth grade through twelfth grade, and the Junior Elite team includes 13 dancers with members ranging from sixth grade through ninth grade; and

      WHEREAS, Members of the three teams reside throughout the Tri-Cities, Spokane, Walla Walla, and Yakima and come to practice in Kennewick with Coach Teri Rowe; and

      WHEREAS, On February 4, 2005, the teams participated in the Universal Dance Association sponsored National Dance Team Championships in Orlando, Florida; and

      WHEREAS, The Senior Elite, including Anna Merrifield, Tiffany Huber, Marisha Mikheeva, Kate Griffith, Molly Moffett, Jessica Quinn, Courtney Hutchins, Carli Forthun, Alissa Gunderson, Amanda Shortell, Ashley Sanislo, Desiree Walter, Kelsey Hamada, and Angie Barness, won the National Championships in hip-hop dance and jazz; and

      WHEREAS, The Senior Prep, including Andrea Crass, Celestan Frost, Rebecca Gaulke, Megan Huber, Ashley Georgia, Ashley Cosgrove, Melissa Johnson, Jackie Delo, Chanelle Whaley, Caroline Cayetano, Amanda Pentilla, Kelsey Skinner, Tawni Kay, and Heather King placed fourth in pom-pom dance; and

      WHEREAS, The Junior Elite, including Kelsey Wehner, Tori Stephenson, Bailey Urness, Olecia Mikheeva, Sam Minyard, Jill Wyss, Sharayah Ott, Haylee Tayamen, Paige Bobiles, Danielle Barness, Cara Scovazzo, Megan Bissell, and Carsen Rowe, won their second consecutive National Championship in hip-hop dance and placed second in jazz; and

      WHEREAS, Head coach Teri Rowe along with assistant coaches Jen Malloy, Serena Dotson, Mandy Case, and Heather Hanson provide excellent guidance and leadership.

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State Senate officially recognize the Eastern Washington Elite Dance teams, their exemplary performance at the National Dance Team Championships, and their inspiring representation of our state for all Washingtonians.

      Senator Delvin spoke in favor of adoption of the resolution.

      The President declared the question before the Senate to be the adoption of Senate Resolution No. 8675.

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

INTRODUCTION OF SPECIAL GUESTS

      The President welcomed and introduced championship Junior Elite team members Kelsey Wehner and Tori Stephenson of the Eastern Washington Elite Dance Teams who were seated in the gallery.

INTRODUCTION OF SPECIAL GUEST

      President Owen: “We have the great privilege today of having a very special guest with us, Miss Tri-Cities, 2000-2005. I wanted to introduce this young lady to you because I was going through her resume and we are very fortunate in the State of Washington to have these most outstanding students doing all sorts of things in athletics and academics and musical things. Here’s one of those outstanding students right here that covers a couple different ones. Not only is she an outstanding student, she, as a matter of fact, received the Washington State Honors Award for outstanding academic achievement. She received the Marshall/Alexander Speech/Drama Award; the WWHS Choir Ensemble Award; the Arion Award; she’s a member of the National Honor Society; and Honor Roll at Columbia Basin Community College. She is a very talented person as a classical vocalist. Not only is she scholastically accomplish but, also, she’s quite a leader as ASB Representative; Conspiracy of Hope Commissioner and organizer which is a charity talent show; Counselor and President of Young Women’s Organization at church; and she chaired the annual WWHS Teacher Appreciation Dinner; and co-organizer of Children’s Olympics. Her goals and objectives are to educate people about family values. Ladies and gentlemen, would you please help me welcome this wonderful young lady? Alainna Fielding, Miss Tri-Cities.”

REMARKS BY MISS ALAINNA FIELDING

      Miss Alainna Fielding: “They said I have a few minutes to speak to you. So, I am the youngest of seven children born to two loving parents and raised on a farm in the Columbia Basin. I attended Walla Walla High School where I had an excellent civics teacher who taught, in great detail, about the different branches of the government including the purposes and duties of the State Senate. Never once did I entertain the thought that I would one day be standing on the Senate floor speaking to those very people. I even get to sit in the Lt. Governor’s seat and that really surprised me, so that was a great honor. I am again honored and humbled to be in your presence and want to, first and foremost, extend my sincere gratitude for all that you do to uphold the principles and ideals of this great country is founded upon. From the time that I was very young my mother and dad endeavored to instill the attitude of patriotism in me and my siblings through literature and song. Maybe that is why both of my brothers have gone into law. In fact, my eldest brother just graduated from Harvard Law School a few years ago and my other brother in currently attending Duke Law School. A little over a year ago I was attending Brigham Young University in Provo, Utah. Funds were very tight and my parents being in a position where they couldn’t help me much financially I began a diligent exploration of other options. A friend of mine recommended the Miss America organization. She explained to me that it was not a beauty pageant but a scholarship program. That, in fact, it is the largest scholarship program for women in the nation, distributing over forty-five million dollars. It starts by winning a local pageant, Miss Tri-Cities, for example, and then proceeding to the state level. I will have the opportunity, the privilege, to compete for the title of Miss Washington on June 24^th and 25^th. The state titleholders complete at Miss America in September. I learned through some additional research that the overwhelming majority of the score involved in this pageant is, a whopping eighty percent, is based on interview and talent – hardly a beauty pageant. Another interesting fact is that it is a non-profit organization. Thousands of men and women including the ones that came with me here today, they’re up in the galleries supporting me, they donate countless hours of their personal time to support this program and the promising young women who participate. The Kennewick relief squad is a fine example of the type of young women to which this program caters. I personally want to congratulate you girls, and all the ones that aren’t present here today, for all your hard work and your determination and what you stand for. The motto of the Miss Washington organization sums up the result of this program perfectly. ‘Building leaders one scholarship at a time.’ It embraces the true essence of leadership and that is service. In fact by the end of this year I will have been able to have volunteer over five-hundred hours of my time to my community through speaking engagements; presentations; visiting grade schools, middle schools; and meeting and mentoring youths, just to mention a few. Through these opportunities I am getting a crash course in public relations and I am getting a clear understanding of what it means to be an effective leader and a role model. In addition, it has provided me with much needed scholarship money to continue to pursue my degree in vocal performance and my career in opera. Clearly the benefits of this program far exceed that which meets the eye and, in my mind, the most positive aspect of this program is the opportunity it provides young women to promote a personally chosen platform. I chose strengthening the family to be my focus, an issue with which I am genuinely concerned. Goethe, a revered philopher, once said, ‘Never let that which matters most be at the mercy of that which matters least.’ The families often take a back seat to the pursuit of wealth and just plain busyness in all of it’s forms. When it comes to the family, I am convinced that you, the leaders of this state, can have a tremendous impact. When considering whether to support a bill, I ask you to carefully consider the effect its passing will have on the family. Please promote those measures designed to maintain and strengthen the family as a fundamental unit of society. I want you to know that you are prayed for. May God grant you wisdom and understanding and support you in the responsibilities that you bear. His eye is on the sparrow. I know He watches this country. Thank you so much.”

MOTION

At 12:05 p.m., on motion of Senator Eide, the Senate was recessed until 1:30 p.m.

AFTERNOON SESSION

The Senate was called to order at 1:35 p.m. by the President Pro Tempore.

MOTION

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

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1806, by House Committee on State Government Operations & Accountability (originally sponsored by Representatives Kenney, Haigh, Kessler, Morrell, Dickerson, Williams, P. Sullivan, Ericks, Anderson, McDermott, Wood, Linville, Moeller and Hudgins)

      Encouraging the ethical transfer of technology for the economic benefit of the state.

      The measure was read the second time.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, Substitute House Bill No. 1806 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Kohl-Welles, Parlette and Benson spoke in favor of passage of the bill.

POINT OF INQUIRY

Senator Thibaudeau: “Would Senator Kohl-Welles yield to a question? My question has to do with how does the University – and I’m a great admirer of many of their inventions – benefit financially from these? I raised questions with some pharmaceutical manufacturers and they said universities can’t afford to market these things and we can. So, they research and we do the marketing and they make all the money. So, can you explain that a little bit for me, please?”

Senator Kohl-Welles: “Thank you Senator Thibaudeau. Yes, the institutions, the universities and colleges, are able to get royalty payments for the inventions and development of products that take place through their university research programs.”

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 1806.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1806 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 48

      Absent: Senator Brandland - 1

      SUBSTITUTE HOUSE BILL NO. 1806, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1232, by Representatives O'Brien, Pearson, Morrell, Lantz, Lovick, Wood, McCune, Wallace and Condotta

      Clarifying the ability of Washington state patrol officers to engage in private law enforcement off-duty employment in plainclothes for private benefit.

      The measure was read the second time.

MOTION

      On motion of Senator Haugen, the rules were suspended, House Bill No. 1232 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Haugen and McCaslin spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 1232.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1232 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 49

      HOUSE BILL NO. 1232, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1137, by House Committee on Health Care (originally sponsored by Representatives Morrell, Orcutt, Cody, McDonald, Green, Campbell, Clibborn, Schindler, Kagi, Woods, Hunt, Miloscia, Linville, Lantz, Moeller, Williams, Wallace and Kenney)

      Modifying the scope of care provided by physical therapists.

      The measure was read the second time.

MOTION

      Senator Keiser moved that the following committee striking amendment by the Committee on Health & Long-Term Care be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 18.74.005 and 1983 c 116 s 1 are each amended to read as follows:

      ((In order to safeguard the public safety and welfare, to protect the public from being misled by incompetent, unethical, and unauthorized persons, and to assure the highest degree of professional conduct and competency, it is)) The purpose of this chapter ((to strengthen existing regulation of persons offering physical therapy services to the public)) is to protect the public health, safety, and welfare, and to provide for state administrative control, supervision, licensure, and regulation of the practice of physical therapy. It is the intent of the legislature that only individuals who meet and maintain prescribed standards of competence and conduct be allowed to engage in the practice of physical therapy as defined and authorized by this chapter.

      Sec. 2. RCW 18.74.010 and 1997 c 275 s 8 are each amended to read as follows:

      ((Unless the context otherwise requires,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Board" means the board of physical therapy created by RCW 18.74.020.

      (2) "Department" means the department of health.

      (3) "Physical therapy" means the ((treatment of any bodily or mental condition of any person by the use of the physical, chemical, and other properties of heat, cold, air, light, water, electricity, sound, massage, and therapeutic exercise, which includes posture and rehabilitation procedures; the performance of tests and measurements of neuromuscular function as an aid to the diagnosis or treatment of any human condition; performance of treatments on the basis of test findings after consultation with and periodic review by an authorized health care practitioner except as provided in RCW 18.74.012; supervision of selective forms of treatment by trained supportive personnel; and provision of consultative services for health, education, and community agencies. The use of Roentgen rays and radium for diagnostic and therapeutic purposes, the use of electricity for surgical purposes, including cauterization, and the use of spinal manipulation or manipulative mobilization of the spine and its immediate articulations, are not included under the term "physical therapy" as used in this chapter)) care and services provided by or under the direction and supervision of a physical therapist licensed by the state. The use of Roentgen rays and radium for diagnostic and therapeutic purposes, the use of electricity for surgical purposes, including cauterization, and the use of spinal manipulation, or manipulative mobilization of the spine and its immediate articulations, are not included under the term "physical therapy" as used in this chapter.

      (4) "Physical therapist" means a person who ((practices physical therapy as defined in this chapter but does not include massage operators as defined in RCW 18.108.010)) meets all the requirements of this chapter and is licensed in this state to practice physical therapy.

      (5) "Secretary" means the secretary of health.

      (6) Words importing the masculine gender may be applied to females.

      (7) "Authorized health care practitioner" means and includes licensed physicians, osteopathic physicians, chiropractors, naturopaths, podiatric physicians and surgeons, dentists, and advanced registered nurse practitioners: PROVIDED, HOWEVER, That nothing herein shall be construed as altering the scope of practice of such practitioners as defined in their respective licensure laws.

      (8) "Practice of physical therapy" is based on movement science and means:

      (a) Examining, evaluating, and testing individuals with mechanical, physiological, and developmental impairments, functional limitations in movement, and disability or other health and movement-related conditions in order to determine a diagnosis, prognosis, plan of therapeutic intervention, and to assess and document the ongoing effects of intervention;

      (b) Alleviating impairments and functional limitations in movement by designing, implementing, and modifying therapeutic interventions that include therapeutic exercise; functional training related to balance, posture, and movement to facilitate self-care and reintegration into home, community, or work; manual therapy including soft tissue and joint mobilization and manipulation; therapeutic massage; assistive, adaptive, protective, and devices related to postural control and mobility except as restricted by (c) of this subsection; airway clearance techniques; physical agents or modalities; mechanical and electrotherapeutic modalities; and patient-related instruction;

      (c) Training for, and the evaluation of, the function of a patient wearing an orthosis or prosthesis as defined in RCW 18.200.010. Physical therapists may provide those direct-formed and prefabricated upper limb, knee, and ankle-foot orthoses, but not fracture orthoses except those for hand, wrist, ankle, and foot fractures, and assistive technology devices specified in RCW 18.200.010 as exemptions from the defined scope of licensed orthotic and prosthetic services. It is the intent of the legislature that the unregulated devices specified in RCW 18.200.010 are in the public domain to the extent that they may be provided in common with individuals or other health providers, whether unregulated or regulated under Title 18 RCW, without regard to any scope of practice;

      (d) Performing wound care services that is limited to sharp debridement, debridement with other agents, dry dressings, wet dressings, topical agents including enzymes, hydrotherapy, electrical stimulation, ultrasound, and other similar treatments. Physical therapists may not delegate sharp debridement. A physical therapist may perform wound care services only by referral from or after consultation with an authorized health care practitioner;

      (e) Reducing the risk of injury, impairment, functional limitation, and disability related to movement, including the promotion and maintenance of fitness, health, and quality of life in all age populations; and

      (f) Engaging in administration, consultation, education, and research.

      (9)(a) "Physical therapist assistant" means a person who has successfully completed a board-approved physical therapist assistant program.

      (b) "Physical therapy aide" means a person who is involved in direct physical therapy patient care who does not meet the definition of a physical therapist or physical therapist assistant and receives ongoing on-the-job training.

      (c) "Other assistive personnel" means other trained or educated health care personnel, not defined in (a) or (b) of this subsection, who perform specific designated tasks related to physical therapy under the supervision of a physical therapist, including but not limited to licensed massage practitioners, athletic trainers, and exercise physiologists. At the direction of the supervising physical therapist, and if properly credentialed and not prohibited by any other law, other assistive personnel may be identified by the title specific to their training or education.

      (10) "Direct supervision" means the supervising physical therapist must (a) be continuously on-site and present in the department or facility where assistive personnel or holders of interim permits are performing services; (b) be immediately available to assist the person being supervised in the services being performed; and (c) maintain continued involvement in appropriate aspects of each treatment session in which a component of treatment is delegated to assistive personnel.

      (11) "Sharp debridement" means the removal of devitalized tissue from a wound with scissors, scalpel, and tweezers without anesthesia. "Sharp debridement" does not mean surgical debridement. A physical therapist may perform sharp debridement, to include the use of a scalpel, only upon showing evidence of adequate education and training as established by rule. Until the rules are established, but no later than July 1, 2006, physical therapists licensed under this chapter who perform sharp debridement as of the effective date of this section shall submit to the secretary an affidavit that includes evidence of adequate education and training in sharp debridement, including the use of a scalpel.

      Sec. 3. RCW 18.74.012 and 2000 c 171 s 24 are each amended to read as follows:

      ((Notwithstanding the provisions of RCW 18.74.010(3),)) A consultation and periodic review by an authorized health care practitioner is not required for treatment of neuromuscular or musculoskeletal conditions((: PROVIDED, That a physical therapist may only provide treatment utilizing orthoses that support, align, prevent, or correct any structural problems intrinsic to the foot or ankle by referral or consultation from an authorized health care practitioner)).

      NEW SECTION. Sec. 4. (1) It is unlawful for any person to practice or in any manner hold himself or herself out to practice physical therapy or designate himself or herself as a physical therapist, unless he or she is licensed in accordance with this chapter.

      (2) This chapter does not restrict persons licensed under any other law of this state from engaging in the profession or practice for which they are licensed, if they are not representing themselves to be physical therapists or providers of physical therapy.

      (3) The following persons are exempt from licensure as physical therapists under this chapter when engaged in the following activities:

      (a) A person who is pursuing a course of study leading to a degree as a physical therapist in an approved professional education program and is satisfying supervised clinical education requirements related to his or her physical therapy education while under direct supervision of a licensed physical therapist;

      (b) A physical therapist while practicing in the United States armed services, United States public health service, or veterans administration as based on requirements under federal regulations for state licensure of health care providers; and

      (c) A physical therapist licensed in another United States jurisdiction, or a foreign-educated physical therapist credentialed in another country, performing physical therapy as part of teaching or participating in an educational seminar of no more than sixty days in a calendar year.

      NEW SECTION. Sec. 5. (1) A physical therapist licensed under this chapter is fully authorized to practice physical therapy as defined in this chapter.

      (2) A physical therapist shall refer persons under his or her care to appropriate health care practitioners if the physical therapist has reasonable cause to believe symptoms or conditions are present that require services beyond the scope of practice under this chapter or when physical therapy is contraindicated.

      (3) Physical therapists shall adhere to the recognized standards of ethics of the physical therapy profession and as further established by rule.

      (4) A physical therapist may perform electroneuromyographic examinations for the purpose of testing neuromuscular function only by referral from an authorized health care practitioner identified in RCW 18.74.010(7) and only upon demonstration of further education and training in electroneuromyographic examinations as established by rule. Within two years after July 1, 2005, the secretary shall waive the requirement for further education and training for those physical therapists licensed under this chapter who perform electroneuromyographic examinations.

      (5) A physical therapist licensed under this chapter may purchase, store, and administer medications such as hydrocortisone, fluocinonide, topical anesthetics, silver sulfadiazine, lidocaine, magnesium sulfate, zinc oxide, and other similar medications, and may administer such other drugs or medications as prescribed by an authorized health care practitioner for the practice of physical therapy. A pharmacist who dispenses such drugs to a licensed physical therapist is not liable for any adverse reactions caused by any method of use by the physical therapist.

      NEW SECTION. Sec. 6. (1) Physical therapists are responsible for patient care given by assistive personnel under their supervision. A physical therapist may delegate to assistive personnel and supervise selected acts, tasks, or procedures that fall within the scope of physical therapy practice but do not exceed the education or training of the assistive personnel.

      (2) Nothing in this chapter may be construed to prohibit other licensed health care providers from using the services of physical therapist assistants, physical therapist aides, or other assistive personnel as long as the licensed health care provider is responsible for the activities of such assistants, aides, and other personnel and provides appropriate supervision.

      NEW SECTION. Sec. 7. Sections 4 through 6 of this act are each added to chapter 18.74 RCW."

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

      The President Pro Tempore declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Health & Long-Term Care to Substitute House Bill No. 1137.

      The motion by Senator Keiser carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted.

      On page 1, line 1 of the title, after "therapy;" strike the remainder of the title and insert "amending RCW 18.74.005, 18.74.010, and 18.74.012; and adding new sections to chapter 18.74 RCW."

MOTION

      On motion of Senator Keiser, the rules were suspended, Substitute House Bill No. 1137, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Keiser and Thibaudeau spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 1137, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1137, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 40; Nays, 9; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Deccio, Doumit, Eide, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Hewitt, Honeyford, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Pflug, Poulsen, Prentice, Pridemore, Regala, Roach, Rockefeller, Schmidt, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 40

      Voting nay: Senators Carrell, Delvin, Esser, Haugen, Johnson, Parlette, Rasmussen, Schoesler and Sheldon - 9

      SUBSTITUTE HOUSE BILL NO. 1137, 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.

      The President assumed the chair.

SECOND READING

      SENATE BILL NO. 5948, by Senators Pridemore and Zarelli

      Modifying unclaimed property provisions.

      The measure was read the second time.

MOTION

      On motion of Senator Pridemore, the rules were suspended, Senate Bill No. 5948 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

MOTION

On motion of Senator Esser, Senators Finkbeiner, Hewitt , Honeyford and Parlette were excused.

      The President declared the question before the Senate to be the final passage of Senate Bill No. 5948.

ROLL CALL

      The Secretary called the roll on the final passage of Senate Bill No. 5948 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

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

      Absent: Senator Zarelli - 1

      Excused: Senators Finkbeiner, Hewitt, Honeyford and Parlette - 4

      SENATE BILL NO. 5948, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1138, by Representatives Ericksen and Holmquist

      Regulating fees for using an automated teller machine.

      The measure was read the second time.

MOTION

      On motion of Senator Fairley, the rules were suspended, House Bill No. 1138 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Fairley and Brandland spoke in favor of passage of the bill.

POINT OF INQUIRY

Senator Benton: “Would the gentleman from the 42^nd District yield to a question? Senator Brandland, is the language in this bill written such a way that it is very, very narrow and only applies to international border areas?”

Senator Brandland: “You know, I don’t know if it is that narrowly focused, but I can tell you the intent of the legislation was for that, generally, that narrow type of focus.”

Senator Benton: “So its clear, then that the intent would not apply to all teller machines throughout Washington State only on teller machines that are on the international border?”

Senator Brandland: “No, it’s intended for a Canadian. If a Canadian, for example, uses an ATM machine in the United States and they agree to continue to pay the $1.50, then with this law that will mean that Canada will reimburse that store owner, whether there in Sumas or in Seattle, that $1.50.”

Senator Benton: “But it wouldn’t apply to Italians or Mexicans or Germans. It would be Canadians?”

Senator Brandland: “My sense is that, I think, what the intent here is to deal with the Canadian traffic.”

      The President declared the question before the Senate to be the final passage of House Bill No. 1138.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1138 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

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

      Absent: Senator Zarelli - 1

      Excused: Senators Finkbeiner, Hewitt, Honeyford and Parlette - 4

      HOUSE BILL NO. 1138, 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 Esser, Senator Zarelli was excused.

RULING BY THE PRESIDENT

      President Owen: “In ruling upon the point of order raised by Senator McCaslin that House Bill 1944 is an expansion of gambling that requires a sixty percent vote under Article II, Section 24 of the Washington Constitution, the President finds and rules as follows:

      It seems clear that the main impetus of this measure is to clarify that state employee raffles for charitable purposes are permitted under the Ethics Act. Section 2 makes this clarification and, had the measure been limited to the Ethics Act, no question as to gambling expansion would arise. The first section, however, unequivocally adds state agencies to the list of nonprofit organizations which may hold charitable raffles. In so doing, it expands the class of people who may conduct gambling, and this is therefore an expansion of gambling, albeit for a limited and charitable cause. As a result, Senator McCaslin’s point is well-taken and a sixty percent vote of this body will be needed for final passage.”

MOTION

On motion of Senator Eide, House Bill No. 1944 was deferred and the bill held its place on the third reading calendar.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 1220, by House Committee on Appropriations (originally sponsored by Representatives Morrell, Schual-Berke, Cody, Simpson, Campbell, Williams, Chase, Kenney, O'Brien, Clibborn, Conway, Green, Kagi and Upthegrove)

      Establishing a joint legislative and executive task force on long-term care financing and chronic care management.

      The measure was read the second time.

MOTION

      Senator Keiser moved that the following committee striking amendment by the Committee on Health & Long-Term Care be adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. (1) The governor shall establish a joint legislative and executive task force on long-term care financing and chronic care management. The joint task force consists of eight members, as follows: The secretary of the department of social and health services; the secretary of the department of health; the administrator of the health care authority; a representative from the governor's office; two members of the senate appointed by the president of the senate, one of whom shall be a member of the majority caucus and one of whom shall be a member of the minority caucus; and two members of the house of representatives appointed by the speaker of the house of representatives, one of whom shall be a member of the majority caucus and one of whom shall be a member of the minority caucus.

      (2) The joint task force shall elect a member of the joint task force to serve as chair of the joint task force.

      (3) Consistent with funds appropriated specifically for this purpose, the joint task force shall contract for professional services. State agencies, the senate, and the house of representatives may provide staff support upon request of the joint task force.

      (4) The joint task force shall create advisory committees to assist the joint task force in its work. The task force shall actively consult with and solicit recommendations from the advisory committee or committees regarding issues under consideration by the task force.

      (5) Joint task force 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, if appointed, may not receive compensation or reimbursement for travel or expenses.

      (6) The joint task force shall review public and private mechanisms for financing long-term care and make recommendations related to:

      (a) The composition of a long-term care system that is adequate to meet the needs of persons of all ages with functional limitations, including appropriate services to be offered in the continuum of care ranging from services to support persons residing at home through residential care. This shall be accomplished by first determining capacity in each level of care in the long-term care continuum and assessing the impact, by geographic region, of increasing or decreasing capacity in each level of care;

      (b) Efficient payment models that will effectively sustain public funding of long-term care and maximize the use of financial resources to directly meet the needs of persons of all ages with functional limitations;

      (c) State laws and regulations that should be revised and/or eliminated in order to reduce or contain long-term care costs to individuals and the state;

      (d) The feasibility of private options for realistically enabling individuals to pay for long-term care and the most effective tools for implementing these options. The assessment of options should include but not be limited to: (i) Adequacy of personal savings and pensions; (ii) availability of family care, including incentives and supports for families to provide care or pay for care; (iii) creative community-based strategies or partnerships for funding quality long-term care; (iv) enhanced health insurance options; (v) long-term care insurance options, including incentives to purchase long-term care insurance through individual or group-based products; (vi) life insurance annuities; and (vii) reverse mortgage and other products that draw on home equity; and

      (e) Options that will support long-term care needs of rural communities.

      (7) The joint task force shall recommend chronic care management and disability prevention interventions that will reduce health care and long-term care costs to individuals and the state, improve the health of individuals over their life span, and encourage patient self-management of chronic care needs.

      (8) The joint task force shall incorporate a process designed to facilitate an open dialog with the public on findings and recommendations.

      (9) The joint task force shall: (a) Report its initial findings to the governor and appropriate committees of the legislature by January 1, 2006; (b) report its recommendations to the governor and appropriate committees of the legislature by January 1, 2007; and (c) submit a final report to the governor and appropriate committees of the legislature by June 30, 2007.

      NEW SECTION. Sec. 2. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2005, in the omnibus appropriations act, this act is null and void."

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

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Health & Long-Term Care to Second Substitute House Bill No. 1220.

      The motion by Senator Keiser carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted.

      On page 1, line 2 of the title, after "management;" strike the remainder of the title and insert "and creating new sections."

MOTION

      On motion of Senator Keiser, the rules were suspended, Second Substitute House Bill No. 1220, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Keiser spoke in favor of passage of the bill.

MOTION

On motion of Senator Regala, Senator Fairley was excused.

      The President declared the question before the Senate to be the final passage of Second Substitute House Bill No. 1220, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 1220, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 0; Excused, 6.

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

      Excused: Senators Fairley, Finkbeiner, Hewitt, Honeyford, Parlette and Zarelli - 6

      SECOND SUBSTITUTE HOUSE BILL NO. 1220, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1356, by Representatives Pettigrew, Holmquist and Ormsby

      Expanding local government insurance options.

      The measure was read the second time.

MOTION

      On motion of Senator Berkey, the rules were suspended, House Bill No. 1356 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Berkey and Benton spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of House Bill No. 1356.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1356 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

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

      Excused: Senators Finkbeiner, Hewitt, Honeyford, Parlette and Zarelli - 5

      HOUSE BILL NO. 1356, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1409, by Representatives Condotta, Wood and Conway

      Revising provisions relating to contract liquor stores.

      The measure was read the second time.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, House Bill No. 1409 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Kohl-Welles spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of House Bill No. 1409.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1409 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

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

      Excused: Senators Hewitt, Honeyford, Parlette and Zarelli - 4

      HOUSE BILL NO. 1409, 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.

      The Senate resumed consideration of Engrossed Substitute House Bill No. 1064 which had been deferred on the previous day.

MOTION

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

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that:

      (1) Citizens demand and deserve accountability of public programs. Public programs must continuously improve in quality, efficiency, and effectiveness in order to increase public trust;

      (2) Washington state government and other entities that receive tax dollars must continuously improve the way they operate and deliver services so citizens receive maximum value for their tax dollars;

      (3) An independent citizen advisory board is necessary to ensure that government services, customer satisfaction, program efficiency, and management systems are world class in performance;

      (4) Fair, independent, professional performance audits of state agencies are essential to improving the efficiency and effectiveness of government; and

      (5) The performance audit activities of the joint legislative audit and review committee should be supplemented by making fuller use of the state auditor's resources and capabilities.

      NEW SECTION. Sec. 2. A new section is added to chapter 43.09 RCW to read as follows:

      For purposes of sections 3 through 6, 8, 9, and 11 of this act:

      (1) "Board" means the citizen advisory board created in section 3 of this act.

      (2) "Draft work plan" means the work plan for conducting performance audits of state agencies proposed by the board and state auditor after the statewide performance review.

      (3) "Final performance audit report" means a written document jointly released by the citizen advisory board and the state auditor that includes the findings and comments from the preliminary performance audit report.

      (4) "Final work plan" means the work plan for conducting performance audits of state agencies adopted by the board and state auditor.

      (5) "Performance audit" means an objective and systematic assessment of a state agency or any of its programs, functions, or activities by an independent evaluator in order to help public officials improve efficiency, effectiveness, and accountability. Performance audits include economy and efficiency audits and program audits.

      (6) "Preliminary performance audit report" means a written document prepared after the completion of a performance audit to be submitted for comment before the final performance audit report. The preliminary performance audit report must contain the audit findings and any proposed recommendations to improve the efficiency, effectiveness, or accountability of the state agency being audited.

      (7) "State agency" or "agency" means a state agency, department, office, officer, board, commission, bureau, division, institution, or institution of higher education. "State agency" includes all offices of executive branch state government elected officials.

      NEW SECTION. Sec. 3. A new section is added to chapter 43.09 RCW to read as follows:

      (1) The citizen advisory board is created to improve efficiency, effectiveness, and accountability in state government.

      (2) The board shall consist of ten members as follows:

       (a) One member shall be the state auditor, who shall be a nonvoting member;

      (b) One member shall be the legislative auditor, who shall be a nonvoting member;

      (c) One member shall be the director of the office of financial management, who shall be a nonvoting member;

      (d) Four of the members shall be selected by the governor as follows: Each major caucus of the house of representatives and the senate shall submit a list of three names. The lists may not include the names of members of the legislature or employees of the state. The governor shall select a person from each list provided by each caucus; and

      (e) The governor shall select three citizen members who are not state employees.

      (3) The board shall elect a chair. The legislative auditor, the state auditor, and the director of the office of financial management may not serve as chair.

      (4) Appointees shall be individuals who have a basic understanding of state government operations with knowledge and expertise in performance management, quality management, strategic planning, performance assessments, or closely related fields.

      (5) Members selected under subsection (2)(d) and (e) of this section shall serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial members, two members shall serve four-year terms, two members shall serve three-year terms, and one member shall serve a two-year term, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.

      (6) The office of the state auditor shall provide clerical, technical, and management personnel to the board to serve as the board's staff.

      (7) The board shall meet at least once a quarter and may hold additional meetings at the call of the chair or by a majority vote of the members of the board.

      (8) The members of the board shall be compensated in accordance with RCW 43.03.220 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060.

      NEW SECTION. Sec. 4. A new section is added to chapter 43.09 RCW to read as follows:

      The board shall establish an assessment and performance grading program. The program shall consist of conducting performance assessments and grading state agency performance. Assessments shall be implemented on a phased-in schedule. Initial areas to be assessed shall include quality management, productivity and fiscal efficiency, program effectiveness, contract management and oversight, internal audit, internal and external customer satisfaction, statutory and regulatory compliance, and technology systems and on-line services. As part of this program, the board shall:

      (1) Consult with and seek input from elected officials, state employees including front-line employees, and professionals with a background in performance management for establishing the grading standards. In developing the criteria, the board shall consider already developed best practices and audit criteria used by government or nongovernment organizations. Before the assessment, the agencies shall be given the criteria for the assessment and the standards for grading;

      (2) Contract or partner with those public or private entities that have expertise in developing public sector reviews applying fact-based objective criteria and/or technical expertise in individual assessment areas to perform the assessments and grading of all state agencies. The board may contract or partner with more than one entity for different assessment areas; and

      (3) Submit the results of the assessment and grading program to the governor, the office of financial management, appropriate legislative committees, and the public by December 15th of each year. The results of the assessments and performance grading shall be posted on the internet.

      NEW SECTION. Sec. 5. A new section is added to chapter 43.09 RCW to read as follows:

      (1) The board and the state auditor shall collaborate with the joint legislative audit and review committee regarding performance audits of state government.

      (a) The board shall establish criteria for performance audits consistent with the criteria and standards followed by the joint legislative audit and review committee. This criteria shall include, at a minimum, the auditing standards of the United States government accountability office, as well as legislative mandates and performance objectives established by state agencies and the legislature. Mandates include, but are not limited to, agency strategies, timelines, program objectives, and mission and goals as required in RCW 43.88.090.

      (b) Using the criteria developed in (a) of this subsection, the state auditor shall contract for a statewide performance review to be completed as expeditiously as possible as a preliminary to a draft work plan for conducting performance audits. The board and the state auditor shall develop a schedule and common methodology for conducting these reviews. The purpose of these performance reviews is to identify those agencies, programs, functions, or activities most likely to benefit from performance audits and to identify likely areas warranting early review, taking into account prior performance audits, if any, and prior fiscal audits.

      (c) The board and the state auditor shall develop the draft work plan for performance audits based on input from citizens, state employees, including front-line employees, state managers, chairs and ranking members of appropriate legislative committees, the joint legislative audit and review committee, public officials, and others. The draft work plan may include a list of agencies, programs, or systems to be audited on a timeline decided by the board and the state auditor based on a number of factors including risk, importance, and citizen concerns. When putting together the draft work plan, there should be consideration of all audits and reports already required. On average, audits shall be designed to be completed as expeditiously as possible.

      (d) Before adopting the final work plan, the board shall consult with the legislative auditor and other appropriate oversight and audit entities to coordinate work plans and avoid duplication of effort in their planned performance audits of state government agencies. The board shall defer to the joint legislative audit and review committee work plan if a similar audit is included on both work plans for auditing.

      (e) The state auditor shall contract out for performance audits. In conducting the audits, agency front-line employees and internal auditors should be involved.

      (f) All audits must include consideration of reports prepared by other government oversight entities.

      (g) The audits may include:

      (i) Identification of programs and services that can be eliminated, reduced, consolidated, or enhanced;

      (ii) Identification of funding sources to the state agency, to programs, and to services that can be eliminated, reduced, consolidated, or enhanced;

      (iii) Analysis of gaps and overlaps in programs and services and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps;

      (iv) Analysis and recommendations for pooling information technology systems used within the state agency, and evaluation of information processing and telecommunications policy, organization, and management;

      (v) Analysis of the roles and functions of the state agency, its programs, and its services and their compliance with statutory authority and recommendations for eliminating or changing those roles and functions and ensuring compliance with statutory authority;

      (vi) Recommendations for eliminating or changing statutes, rules, and policy directives as may be necessary to ensure that the agency carry out reasonably and properly those functions vested in the agency by statute;

      (vii) Verification of the reliability and validity of agency performance data, self-assessments, and performance measurement systems as required under RCW 43.88.090;

      (viii) Identification of potential cost savings in the state agency, its programs, and its services;

      (ix) Identification and recognition of best practices;

      (x) Evaluation of planning, budgeting, and program evaluation policies and practices;

      (xi) Evaluation of personnel systems operation and management;

      (xii) Evaluation of state purchasing operations and management policies and practices; and

      (xiii) Evaluation of organizational structure and staffing levels, particularly in terms of the ratio of managers and supervisors to nonmanagement personnel.

      (h) The state auditor must solicit comments on preliminary performance audit reports from the audited state agency, the office of the governor, the office of financial management, the board, the chairs and ranking members of appropriate legislative committees, and the joint legislative audit and review committee for comment. Comments must be received within thirty days after receipt of the preliminary performance audit report unless a different time period is approved by the state auditor. All comments shall be incorporated into the final performance audit report. The final performance audit report shall include the objectives, scope, and methodology; the audit results, including findings and recommendations; conclusions; and identification of best practices.

      (i) The board and the state auditor shall jointly release final performance audit reports to the governor, the citizens of Washington, the joint legislative audit and review committee, and the appropriate standing legislative committees. Final performance audit reports shall be posted on the internet.

      (j) For institutions of higher education, performance audits shall not duplicate, and where applicable, shall make maximum use of existing audit records, accreditation reviews, and performance measures required by the office of financial management, the higher education coordinating board, and nationally or regionally recognized accreditation organizations including accreditation of hospitals licensed under chapter 70.41 RCW and ambulatory care facilities.

      (2) The citizen board created under RCW 44.75.030 shall be responsible for performance audits for transportation related agencies as defined under RCW 44.75.020.

      NEW SECTION. Sec. 6. A new section is added to chapter 43.09 RCW to read as follows:

      If the legislative authority of a local jurisdiction requests a performance audit of programs under its jurisdiction, the state auditor has the discretion to conduct such a review under separate contract and funded by local funds.

      NEW SECTION. Sec. 7. A new section is added to chapter 43.88 RCW to read as follows:

      In addition to the authority given the state auditor in RCW 43.88.160(6), the state auditor is authorized to contract for and oversee performance audits pursuant to section 5 of this act.

      NEW SECTION. Sec. 8. A new section is added to chapter 43.09 RCW to read as follows:

      By June 30, 2007, and each four years thereafter, the joint legislative audit and review committee shall contract with a private entity for a performance audit of the performance audit program established in section 5 of this act and the board's responsibilities under the performance audit program.

      NEW SECTION. Sec. 9. A new section is added to chapter 43.09 RCW to read as follows:

      The audited agency is responsible for follow-up and corrective action on all performance audit findings and recommendations. The audited agency's plan for addressing each audit finding and recommendation shall be included in the final audit report. The plan shall provide the name of the contact person responsible for each action, the action planned, and the anticipated completion date. If the audited agency does not agree with the audit findings and recommendations or believes action is not required, then the action plan shall include an explanation and specific reasons.

      For agencies under the authority of the governor, the governor may require periodic progress reports from the audited agency until all resolution has occurred.

      For agencies under the authority of an elected official other than the governor, the appropriate elected official may require periodic reports of the action taken by the audited agency until all resolution has occurred.

      The board may request status reports on specific audits or findings.

      NEW SECTION. Sec. 10. A new section is added to chapter 2.56 RCW to read as follows:

      The office of the administrator for the courts is encouraged to conduct performance audits of courts under the authority of the supreme court, in conformity with criteria and methods developed by the board for judicial administration that have been approved by the supreme court. In developing criteria and methods for conducting performance audits, the board for judicial administration is encouraged to consider quality improvement programs, audits, and scoring. The judicial branch is encouraged to submit the results of these efforts to the chief justice of the supreme court or his or her designee, and with any other applicable boards or committees established under the authority of the supreme court to oversee government accountability.

      NEW SECTION. Sec. 11. A new section is added to chapter 43.09 RCW to read as follows:

      (1) Each biennium the legislature shall appropriate such sums as may be necessary, not to exceed an amount equal to two one-hundredths of one percent of the total general fund state appropriation in that biennium's omnibus operating appropriations act for purposes of the performance review, performance audits, and activities of the board authorized by this chapter.

      (2) The board and the state auditor shall submit recommended budgets for their responsibilities under sections 2 through 6, 8, and 9 of this act to the auditor, who shall then prepare a consolidated budget request, in the form of request legislation, to assist in determining the funding under subsection (1) of this section."

      Senator Kastama spoke in favor of adoption of the committee striking amendment.

MOTION

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

      On page 1, beginning on line 10 of the amendment, strike all of subsections (3), (4), and (5) and insert "and

      (3) Fair, independent, professional performance audits of state agencies by the state auditor are essential to improving the efficiency and effectiveness of government."

      Beginning on page 1, line 19 of the amendment, strike all of sections 2 and 3 and insert the following:

      "NEW SECTION. Sec. 2. A new section is added to chapter 43.09 RCW to read as follows:

      For purposes of sections 3 through 6 of this act:

      (1) "Board" means the citizen accountability advisory board created in section 4 of this act.

      (2) "Performance audit" means an objective and systematic assessment of a state agency or agencies or any of their programs, functions, or activities by an independent auditor in order to help improve agency efficiency, effectiveness, and accountability. Performance audits include economy and efficiency audits and program audits.

      (3) "State agency" or "agency" means a state agency, department, office, officer, board, commission, bureau, division, institution, or institution of higher education. "State agency" includes all elective offices in the executive branch state government. This includes state agencies and programs as well as those programs and activities that cross agency lines.

      NEW SECTION. Sec. 3. A new section is added to chapter 43.09 RCW to read as follows:

      The state auditor may conduct performance audits under the provisions of sections 1 through 7, 9, and 10 of this act. The state auditor may contract for performance audits as he or she may determine.

      NEW SECTION. Sec. 4. A new section is added to chapter 43.09 RCW to read as follows:

      (1) A citizen accountability advisory board is created to provide advice to the state auditor on performance audits of state government.

      (2) The board shall consist of eight members as follows:

      (a) One member shall be selected by the state auditor;

      (b) One member shall be selected by the chair of the joint legislative audit and review committee;

      (c) One member shall be selected by the director of the office of financial management;

      (d) Four of the members shall be selected by the governor as follows: Each major caucus of the house of representatives and the senate shall submit a list of three names. The lists may not include the names of members of the legislature. The governor shall select a person from each list provided by each caucus; and

      (e) One member shall be selected by the governor.

      (3) The board shall elect a chair.

      (4) Appointees shall be individuals who have a basic understanding of state government operations with knowledge and expertise in performance management, quality management, strategic planning, performance assessments, or closely related fields.

      (5) Members shall serve for terms of four years, with the terms expiring on June 30th on the fourth year of the term. However, in the case of the initial members, two members shall serve four-year terms, two members shall serve three-year terms, and one member shall serve a two-year term, with each of the terms expiring on June 30th of the applicable year. Appointees may be reappointed to serve more than one term.

      (6) The state auditor's office shall provide staff assistance to the board.

      (7) The board shall meet at least once a quarter and may hold additional meetings at the call of the chair or by a majority vote of the members of the board. Meetings are subject to chapter 42.30 RCW.

      (8) The members of the board shall be compensated in accordance with RCW 43.03.220 and reimbursed for travel expenses in accordance with RCW 43.03.050 and 43.03.060."

      Renumber the remaining sections consecutively and correct any internal references accordingly.

      On page 3, line 30 of the amendment, after "an" insert "annual"

      On page 3, line 31 of the amendment, after "conducting" insert "annual"

      On page 4, at the beginning of line 4 of the amendment, after "employees" strike "including front-line employees"

      On page 4, line 11 of the amendment, after "partner" strike "those"

      On page 4, beginning on line 12 of the amendment, after "in" strike all material through "criteria" on line 13, and insert "public sector reviews"

      On page 4, line 20 of the amendment, after "of the" insert "annual"

      Beginning on page 4, line 22 of the amendment, strike all of sections 5 through 11 and insert the following:

      "NEW SECTION. Sec. 5. A new section is added to chapter 43.09 RCW to read as follows:

      (1) The state auditor shall establish criteria and protocols for performance audits. Agencies shall be audited using criteria that include generally accepted government auditing standards as well as legislative mandates and performance objectives established by state agencies. Mandates include, but are not limited to, agency strategies, timelines, program objectives, and mission and goals as required in RCW 43.88.090.

      (2) Using the criteria developed in subsection (1) of this section, the state auditor shall complete a statewide performance review as a preliminary to a work plan for conducting performance audits. The state auditor shall develop a schedule and common methodology for conducting these performance audits.

      (3) In developing the work plan, the state auditor shall consider input from the board, citizens, state employees, state managers, the joint legislative audit and review committee, public officials, and others. The work plan may include a list of agencies, programs, or systems to be audited on a timeline decided by the state auditor based on a number of factors including risk, importance, and citizen concerns. All audits shall be designed to be completed within a six-month period.

      (4) Before adopting the final work plan, the state auditor shall consult with the legislative auditor and other appropriate oversight and audit entities to coordinate work plans and avoid duplication of effort in their planned performance audits of state government. The state auditor shall defer to the joint legislative audit and review committee work plan if a similar audit is included on both work plans for auditing.

      (5) In conducting the audits, agency front-line employees and internal auditors should be involved. The audits may include:

      (a) Identification of programs and services that can be eliminated, reduced, consolidated, or enhanced;

      (b) Identification of funding sources to the state agency, to programs, and to services that can be eliminated, reduced, consolidated, or enhanced;

      (c) Analysis of gaps and overlaps in programs and services and recommendations for improving, dropping, blending, or separating functions to correct gaps or overlaps;

      (d) Analysis and recommendations for pooling information technology systems used within the state agency, and evaluation of information processing and telecommunications policy, organization, and management;

      (e) Analysis of the roles and functions of the state agency, its programs, and its services and their compliance with statutory authority and recommendations for eliminating or changing those roles and functions and ensuring compliance with statutory authority;

      (f) Recommendations for eliminating or changing statutes, rules, and policy directives as may be necessary to ensure that the agency carry out reasonably and properly those functions vested in the agency by statute;

      (g) Verification of the reliability and validity of agency performance data, self-assessments, and performance measurement systems as required under RCW 43.88.090;

      (h) Identification of potential cost savings in the state agency, its programs, and its services;

      (i) Identification and recognition of best practices;

      (j) Evaluation of planning, budgeting, and program evaluation policies and practices;

      (k) Evaluation of personnel systems operation and management;

      (l) Evaluation of state purchasing operations and management policies and practices; and

      (m) Evaluation of organizational structure and staffing levels, particularly in terms of the ratio of managers and supervisors to nonmanagement personnel.

      (6) The state auditor's performance audit work plan shall be updated at least annually.

      (7) The state auditor must provide the preliminary performance audit reports to the audited state agency for comment. The auditor also may seek input on the preliminary report from other appropriate officials. Comments must be received within thirty days after receipt of the preliminary performance audit report unless a different time period is approved by the state auditor. The final performance audit report shall include the objectives, scope, and methodology; the audit results, including findings and recommendations; the agency's response and conclusions; and identification of best practices.

      (8) The state auditor shall provide final performance audit reports to the citizens of Washington, the governor, the board, the joint legislative audit and review committee, the appropriate legislative committees, and other appropriate officials. Final performance audit reports shall be posted on the internet.

      (9) The state auditor may conduct performance audits for transportation-related agencies as defined under RCW 44.75.020.

      NEW SECTION. Sec. 6. A new section is added to chapter 43.09 RCW to read as follows:

      The audited agency is responsible for follow-up and corrective action on all performance audit findings and recommendations. The audited agency's plan for addressing each audit finding and recommendation shall be included in the final audit report. The plan shall provide the name of the contact person responsible for each action, the action planned, and the anticipated completion date. If the audited agency does not agree with the audit findings and recommendations or believes action is not required, then the action plan shall include an explanation and specific reasons.

      The office of financial management shall require periodic progress reports from the audited agency until all resolution has occurred. The office of financial management is responsible for achieving audit resolution. The office of financial management shall annually report by December 31st the status of performance audit resolution to the appropriate legislative committees and the state auditor. The legislature shall consider the performance audit results in connection with the state budget process.

      The auditor may request status reports on specific audits or findings.

      Sec. 7. RCW 43.88.160 and 2002 c 260 s 1 are each amended to read as follows:

      This section sets forth the major fiscal duties and responsibilities of officers and agencies of the executive branch. The regulations issued by the governor pursuant to this chapter shall provide for a comprehensive, orderly basis for fiscal management and control, including efficient accounting and reporting therefor, for the executive branch of the state government and may include, in addition, such requirements as will generally promote more efficient public management in the state.

      (1) Governor; director of financial management. The governor, through the director of financial management, shall devise and supervise a modern and complete accounting system for each agency to the end that all revenues, expenditures, receipts, disbursements, resources, and obligations of the state shall be properly and systematically accounted for. The accounting system shall include the development of accurate, timely records and reports of all financial affairs of the state. The system shall also provide for central accounts in the office of financial management at the level of detail deemed necessary by the director to perform central financial management. The director of financial management shall adopt and periodically update an accounting procedures manual. Any agency maintaining its own accounting and reporting system shall comply with the updated accounting procedures manual and the rules of the director adopted under this chapter. An agency may receive a waiver from complying with this requirement if the waiver is approved by the director. Waivers expire at the end of the fiscal biennium for which they are granted. The director shall forward notice of waivers granted to the appropriate legislative fiscal committees. The director of financial management may require such financial, statistical, and other reports as the director deems necessary from all agencies covering any period.

      (2) Except as provided in chapter 43.88C RCW, the director of financial management is responsible for quarterly reporting of primary operating budget drivers such as applicable workloads, caseload estimates, and appropriate unit cost data. These reports shall be transmitted to the legislative fiscal committees or by electronic means to the legislative evaluation and accountability program committee. Quarterly reports shall include actual monthly data and the variance between actual and estimated data to date. The reports shall also include estimates of these items for the remainder of the budget period.

      (3) The director of financial management shall report at least annually to the appropriate legislative committees regarding the status of all appropriated capital projects, including transportation projects, showing significant cost overruns or underruns. If funds are shifted from one project to another, the office of financial management shall also reflect this in the annual variance report. Once a project is complete, the report shall provide a final summary showing estimated start and completion dates of each project phase compared to actual dates, estimated costs of each project phase compared to actual costs, and whether or not there are any outstanding liabilities or unsettled claims at the time of completion.

      (4) In addition, the director of financial management, as agent of the governor, shall:

      (a) Develop and maintain a system of internal controls and internal audits comprising methods and procedures to be adopted by each agency that will safeguard its assets, check the accuracy and reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed managerial policies for accounting and financial controls. The system developed by the director shall include criteria for determining the scope and comprehensiveness of internal controls required by classes of agencies, depending on the level of resources at risk.

      Each agency head or authorized designee shall be assigned the responsibility and authority for establishing and maintaining internal audits following the standards of internal auditing of the institute of internal auditors;

      (b) Make surveys and analyses of agencies with the object of determining better methods and increased effectiveness in the use of manpower and materials; and the director shall authorize expenditures for employee training to the end that the state may benefit from training facilities made available to state employees;

      (c) Establish policies for allowing the contracting of child care services;

      (d) Report to the governor with regard to duplication of effort or lack of coordination among agencies;

      (e) Review any pay and classification plans, and changes thereunder, developed by any agency for their fiscal impact: PROVIDED, That none of the provisions of this subsection shall affect merit systems of personnel management now existing or hereafter established by statute relating to the fixing of qualifications requirements for recruitment, appointment, or promotion of employees of any agency. The director shall advise and confer with agencies including appropriate standing committees of the legislature as may be designated by the speaker of the house and the president of the senate regarding the fiscal impact of such plans and may amend or alter the plans, except that for the following agencies no amendment or alteration of the plans may be made without the approval of the agency concerned: Agencies headed by elective officials;

      (f) Fix the number and classes of positions or authorized employee years of employment for each agency and during the fiscal period amend the determinations previously fixed by the director except that the director shall not be empowered to fix the number or the classes for the following: Agencies headed by elective officials;

      (g) Adopt rules to effectuate provisions contained in (a) through (f) of this subsection.

      (5) The treasurer shall:

      (a) Receive, keep, and disburse all public funds of the state not expressly required by law to be received, kept, and disbursed by some other persons: PROVIDED, That this subsection shall not apply to those public funds of the institutions of higher learning which are not subject to appropriation;

      (b) Receive, disburse, or transfer public funds under the treasurer's supervision or custody;

      (c) Keep a correct and current account of all moneys received and disbursed by the treasurer, classified by fund or account;

      (d) Coordinate agencies' acceptance and use of credit cards and other payment methods, if the agencies have received authorization under RCW 43.41.180;

      (e) Perform such other duties as may be required by law or by regulations issued pursuant to this law.

      It shall be unlawful for the treasurer to disburse public funds in the treasury except upon forms or by alternative means duly prescribed by the director of financial management. These forms or alternative means shall provide for authentication and certification by the agency head or the agency head's designee that the services have been rendered or the materials have been furnished; or, in the case of loans or grants, that the loans or grants are authorized by law; or, in the case of payments for periodic maintenance services to be performed on state owned equipment, that a written contract for such periodic maintenance services is currently in effect; and the treasurer shall not be liable under the treasurer's surety bond for erroneous or improper payments so made. When services are lawfully paid for in advance of full performance by any private individual or business entity other than equipment maintenance providers or as provided for by RCW 42.24.035, such individual or entity other than central stores rendering such services shall make a cash deposit or furnish surety bond coverage to the state as shall be fixed in an amount by law, or if not fixed by law, then in such amounts as shall be fixed by the director of the department of general administration but in no case shall such required cash deposit or surety bond be less than an amount which will fully indemnify the state against any and all losses on account of breach of promise to fully perform such services. No payments shall be made in advance for any equipment maintenance services to be performed more than twelve months after such payment. Any such bond so furnished shall be conditioned that the person, firm or corporation receiving the advance payment will apply it toward performance of the contract. The responsibility for recovery of erroneous or improper payments made under this section shall lie with the agency head or the agency head's designee in accordance with regulations issued pursuant to this chapter. Nothing in this section shall be construed to permit a public body to advance funds to a private service provider pursuant to a grant or loan before services have been rendered or material furnished.

      (6) The state auditor shall:

      (a) Report to the legislature the results of current post audits that have been made of the financial transactions of each agency; to this end the auditor may, in the auditor's discretion, examine the books and accounts of any agency, official, or employee charged with the receipt, custody, or safekeeping of public funds. Where feasible in conducting examinations, the auditor shall utilize data and findings from the internal control system prescribed by the office of financial management. The current post audit of each agency may include a section on recommendations to the legislature as provided in (c) of this subsection.

      (b) Give information to the legislature, whenever required, upon any subject relating to the financial affairs of the state.

      (c) Make the auditor's official report on or before the thirty-first of December which precedes the meeting of the legislature. The report shall be for the last complete fiscal period and shall include determinations as to whether agencies, in making expenditures, complied with the laws of this state. ((The state auditor is authorized to perform or participate in performance verifications and performance audits as expressly authorized by the legislature in the omnibus biennial appropriations acts or in the performance audit work plan approved by the joint legislative audit and review committee. The state auditor, upon completing an audit for legal and financial compliance under chapter 43.09 RCW or a performance verification, may report to the joint legislative audit and review committee or other appropriate committees of the legislature, in a manner prescribed by the joint legislative audit and review committee, on facts relating to the management or performance of governmental programs where such facts are discovered incidental to the legal and financial audit or performance verification. The auditor may make such a report to a legislative committee only if the auditor has determined that the agency has been given an opportunity and has failed to resolve the management or performance issues raised by the auditor. If the auditor makes a report to a legislative committee, the agency may submit to the committee a response to the report. This subsection (6) shall not be construed to authorize the auditor to allocate other than de minimis resources to performance audits except as expressly authorized in the appropriations acts or in the performance audit work plan. The results of a performance audit conducted by the state auditor that has been requested by the joint legislative audit and review committee must only be transmitted to the joint legislative audit and review committee.))

      (d) Be empowered to take exception to specific expenditures that have been incurred by any agency or to take exception to other practices related in any way to the agency's financial transactions and to cause such exceptions to be made a matter of public record, including disclosure to the agency concerned and to the director of financial management. It shall be the duty of the director of financial management to cause corrective action to be taken within six months, such action to include, as appropriate, the withholding of funds as provided in RCW 43.88.110. The director of financial management shall annually report by December 31st the status of audit resolution to the appropriate committees of the legislature, the state auditor, and the attorney general. The director of financial management shall include in the audit resolution report actions taken as a result of an audit including, but not limited to, types of personnel actions, costs and types of litigation, and value of recouped goods or services.

      (e) Promptly report any irregularities to the attorney general.

      (f) Investigate improper governmental activity under chapter 42.40 RCW.

      (7) The joint legislative audit and review committee may:

      (a) Make post audits of the financial transactions of any agency and management surveys and program reviews as provided for in chapter 44.28 RCW as well as performance audits and program evaluations. To this end the joint committee may in its discretion examine the books, accounts, and other records of any agency, official, or employee.

      (b) Give information to the legislature or any legislative committee whenever required upon any subject relating to the performance and management of state agencies.

      (c) Make a report to the legislature which shall include at least the following:

      (i) Determinations as to the extent to which agencies in making expenditures have complied with the will of the legislature and in this connection, may take exception to specific expenditures or financial practices of any agencies; and

      (ii) Such plans as it deems expedient for the support of the state's credit, for lessening expenditures, for promoting frugality and economy in agency affairs, and generally for an improved level of fiscal management.

      NEW SECTION. Sec. 8. A new section is added to chapter 43.09 RCW to read as follows:

      Each biennium the legislature shall appropriate an amount equal to two one-hundredths of one percent of the total general fund state appropriation in that biennium's omnibus operating appropriations act for purposes of the performance audits conducted by the state auditor as authorized by sections 2 through 6 and 9 of this act.

      NEW SECTION. Sec. 9. A new section is added to chapter 43.09 RCW to read as follows:

      If the legislative authority of a local jurisdiction requests a performance audit of programs under its jurisdiction, the state auditor has the discretion to conduct such a review under separate contract and funded by local funds.

      NEW SECTION. Sec. 10. A new section is added to chapter 2.56 RCW to read as follows:

      The office of the administrator for the courts is encouraged to conduct performance audits of courts under the authority of the supreme court, in conformity with criteria and methods developed by the board for judicial administration that have been approved by the supreme court. In developing criteria and methods for conducting performance audits, the board for judicial administration is encouraged to consider quality improvement programs, audits, and scoring. The judicial branch is encouraged to submit the results of these efforts to the chief justice of the supreme court or his or her designee, and with any other applicable boards or committees established under the authority of the supreme court to oversee government accountability."

      On page 9, line 15 of the title amendment, before "adding" insert "amending RCW 43.88.160;"

      On page 9, at the beginning of line 16 of the title amendment, after "RCW;" strike "adding a new section to chapter 43.88 RCW;"

      On page 9, line 17 of the title amendment, after "creating" strike "new sections" and insert "a new section"

      Senators Roach and Finkbeiner spoke in favor of adoption of the amendment to the committee striking amendment.

      Senators Kastama, Regala and Rockefeller spoke against adoption of the amendment to the committee striking amendment.

      Senator Esser demanded a roll call.

      The President declared that one-sixth of the members supported the demand and the demand was sustained.

The President declared the question before the Senate to be the adoption of the amendment by Senator Roach on page 1, line 10 to the committee striking amendment to Engrossed Substitute House Bill No. 1064.

ROLL CALL

      The Secretary called the roll on the adoption of the amendment by Senator Roach to the committee striking amendment and the amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Brandland, Carrell, Deccio, Delvin, Esser, Finkbeiner, Hewitt, Honeyford, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Roach, Schmidt, Schoesler, Sheldon, Stevens, Swecker and Zarelli - 24

      Voting nay: Senators Berkey, Brown, Doumit, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Shin, Spanel, Thibaudeau and Weinstein - 25

MOTION

Senator Finkbeiner moved that the following amendment by Senators Finkbeiner and Roach to the committee striking amendment be adopted.

      On page 1, line 25, after "by the" strike "board and"

      On page 1, line 28, strike "jointly released by the citizen advisory board and" and insert "released by"

      On page 2, line 4, after "by the" strike "board and"

      On page 4, beginning on line 24, strike all of subsection (1) and insert:

"(1) The state auditor may conduct performance audits under the provisions of this act. The state auditor may contract for performance audits as he or she may determine."

      On page 4, line 27, after "The", strike "board" and insert "state auditor"

      On page 5, line 1, after "The" strike "board and the"

      On page 5, line 8 after "The" strike "board and the"

      On page 5, line 20, after "plan, the", strike "board" and insert "state auditor"

      On page 5, at the beginning of line 24, strike "board" and insert "state auditor"

      On page 7, line 4, after "The" strike "board and the state auditor shall jointly", and insert "state auditor shall"

      On page 7, beginning on line 16, strike all material through "RCW 44.75.020" on line 18.

      On page 7, beginning on line 30, strike all of section 8.

      Renumber the sections consecutively and correct any internal references accordingly.

      Senators Finkbeiner, Benton and Roach spoke in favor of adoption of the amendment to the committee striking amendment.

      Senators Kastama and Regala spoke against adoption of the amendment to the committee striking amendment.

      Senator Esser demanded a roll call.

      The President declared that one-sixth of the members supported the demand and the demand was sustained.

The President declared the question before the Senate to be the adoption of the amendment by Senators Finkbeiner and Roach on page 1, line 25 to the committee striking amendment to Engrossed Substitute House Bill No. 1064.

ROLL CALL

      The Secretary called the roll on the adoption of the amendment by Senators Finkbeiner and Roach to the committee striking amendment and the amendment was not adopted by the following vote: Yeas, 24; Nays, 25; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Brandland, Carrell, Deccio, Delvin, Esser, Finkbeiner, Hewitt, Honeyford, Johnson, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Roach, Schmidt, Schoesler, Sheldon, Stevens, Swecker and Zarelli - 24

      Voting nay: Senators Berkey, Brown, Doumit, Eide, Fairley, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Shin, Spanel, Thibaudeau and Weinstein - 25

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Ways & Means to Engrossed Substitute House Bill No. 1064.

      The motion by Senator Kastama carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted.

      On page 1, line 2 of the title, after "accountability;" strike the remainder of the title and insert "adding new sections to chapter 43.09 RCW; adding a new section to chapter 43.88 RCW; adding a new section to chapter 2.56 RCW; and creating new sections."

MOTION

      On motion of Senator Kastama, the rules were suspended, Engrossed Substitute House Bill No. 1064, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Kastama spoke in favor of passage of the bill.

      Senators Roach and Benton spoke against passage of the bill.

POINT OF ORDER

Senator Eide: “I believe a roll call was already called and the good Senator had already voted. I heard him vote.”

REPLY BY THE PRESIDENT

President Owen: “No, he had not voted as far as I know. I had called for the roll call and I checked to find out if the name had even been completed. Well, the President didn’t hear him. Otherwise, your point would have been very well taken.”

      The President declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 1064, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1064, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 30; Nays, 19; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Berkey, Brandland, Brown, Doumit, Eide, Franklin, Fraser, Hargrove, Jacobsen, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Oke, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Rockefeller, Schoesler, Shin, Spanel, Swecker, Thibaudeau, Weinstein and Zarelli - 30

      Voting nay: Senators Benton, Carrell, Deccio, Delvin, Esser, Fairley, Finkbeiner, Haugen, Hewitt, Honeyford, Johnson, Morton, Mulliken, Parlette, Pflug, Roach, Schmidt, Sheldon and Stevens - 19

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1064, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 1542, by House Committee on Appropriations (originally sponsored by Representatives Lantz, Hinkle, Appleton, Rodne, Lovick, Newhouse, Buri, Darneille, Williams, McDermott, Clibborn, Schual-Berke, O'Brien, McIntire, Kagi, Hasegawa, Dickerson, Green, Kenney and Kilmer)

      Providing indigent defense services.

      The measure was read the second time.

MOTION

      On motion of Senator Kline, the rules were suspended, Second Substitute House Bill No. 1542 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Kline and Johnson spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Second Substitute House Bill No. 1542.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 1542 and the bill passed the Senate by the following vote: Yeas, 42; Nays, 6; Absent, 1; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 42

      Voting nay: Senators Carrell, Hewitt, Honeyford, McCaslin, Morton and Schoesler - 6

      Absent: Senator Brown - 1

      SECOND SUBSTITUTE HOUSE BILL NO. 1542, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Regala, Senator Brown was excused.

SECOND READING

      ENGROSSED HOUSE BILL NO. 1561, by Representatives Appleton, Roach, Santos, Kirby, Schual-Berke, Condotta, Williams and Chase

      Prohibiting discrimination in life insurance based on lawful travel destinations.

      The measure was read the second time.

MOTION

      Senator Fairley moved that the following committee striking amendment by the Committee on Financial Institutions, Housing & Consumer Protection be adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 48.18 RCW to read as follows:

      (1) No life insurer may deny or refuse to accept an application for insurance, or refuse to insure, refuse to renew, cancel, restrict, or otherwise terminate a policy of insurance, or charge a different rate for the same coverage, based upon the applicant's or insured person's past or future lawful travel destinations.

      (2) Nothing in this section prohibits a life insurer from excluding or limiting coverage of specific lawful travel, or charging a differential rate for such coverage, when bona fide statistical differences in risk or exposure have been substantiated."

      Senator Fairley spoke in favor of adoption of the committee striking amendment.

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Financial Institutions, Housing & Consumer Protection to Engrossed House Bill No. 1561.

      The motion by Senator Fairley carried and the committee striking amendment was adopted by voice vote.

MOTION

       There being no objection, the following title amendment was adopted.

      On page 1, line 2 of the title, after "destinations;" strike the remainder of the title and insert "and adding a new section to chapter 48.18 RCW."

MOTION

      On motion of Senator Fairley, the rules were suspended, Engrossed House Bill No. 1561, as amended by the Senate, was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

MOTION

      On motion of Senator Mulliken, Senator Finkbeiner was excused.

      The President declared the question before the Senate to be the final passage of Engrossed House Bill No. 1561, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 1561, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 49

      ENGROSSED HOUSE BILL NO. 1561, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

      On motion of Senator Honeyford, Senator Esser was excused.

SECOND READING

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1888, by House Committee on Appropriations (originally sponsored by Representatives Nixon, Morris, Hunter, B. Sullivan, Simpson, Ormsby, Morrell, Haler, Clibborn, Ericks, Williams, Darneille, Dunn, Dickerson, P. Sullivan, Green and Hudgins)

      Regulating electronic mail fraud. Revised for 2nd Substitute: Regulating internet fraud.

      The measure was read the second time.

MOTION

      Senator Fairley moved that the following committee striking amendment by the Committee on Financial Institutions, Housing & Consumer Protection be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 19.190.010 and 2003 c 137 s 2 are each amended to read as follows:

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

      (1) "Assist the transmission" means actions taken by a person to provide substantial assistance or support which enables any person to formulate, compose, send, originate, initiate, or transmit a commercial electronic mail message or a commercial electronic text message when the person providing the assistance knows or consciously avoids knowing that the initiator of the commercial electronic mail message or the commercial electronic text message is engaged, or intends to engage, in any practice that violates the consumer protection act. "Assist the transmission" does not include any of the following: (a) Activities of an electronic mail service provider or other entity who provides intermediary transmission service in sending or receiving electronic mail, or provides to users of electronic mail services the ability to send, receive, or compose electronic mail; or (b) activities of any entity related to the design, manufacture, or distribution of any technology, product, or component that has a commercially significant use other than to violate or circumvent this section.

      (2) "Commercial electronic mail message" means an electronic mail message sent for the purpose of promoting real property, goods, or services for sale or lease. It does not mean an electronic mail message to which an interactive computer service provider has attached an advertisement in exchange for free use of an electronic mail account, when the sender has agreed to such an arrangement.

      (3) "Commercial electronic text message" means an electronic text message sent to promote real property, goods, or services for sale or lease.

      (4) "Electronic mail address" means a destination, commonly expressed as a string of characters, to which electronic mail may be sent or delivered.

      (5) "Electronic mail message" means an electronic message sent to an electronic mail address and a reference to an internet domain, whether or not displayed, to which an electronic mail message can be sent or delivered.

      (6) "Electronic text message" means a text message sent to a cellular telephone or pager equipped with short message service or any similar capability, whether the message is initiated as a short message service message or as an electronic mail message.

      (((6))) (7) "Initiate the transmission" refers to the action by the original sender of an electronic mail message or an electronic text message, not to the action by any intervening interactive computer service or wireless network that may handle or retransmit the message, unless such intervening interactive computer service assists in the transmission of an electronic mail message when it knows, or consciously avoids knowing, that the person initiating the transmission is engaged, or intends to engage, in any act or practice that violates the consumer protection act.

      (((7))) (8) "Interactive computer service" means any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the internet and such systems operated or services offered by libraries or educational institutions.

      (((8))) (9) "Internet" means collectively the myriad of computer and telecommunications facilities, including equipment and operating software, that comprise the interconnected world wide network of networks that employ the transmission control protocol/internet protocol, or any predecessor or successor protocols to such protocol, to communicate information of all kinds by wire or radio.

      (10) "Internet domain name" refers to a globally unique, hierarchical reference to an internet host or service, assigned through centralized internet naming authorities, comprising a series of character strings separated by periods, with the right-most string specifying the top of the hierarchy.

      (((9))) (11) "Person" means ((a person, corporation, partnership, or association)) an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency or instrumentality, public corporation, or any other legal or commercial entity.

      (12) "Personally identifying information" means an individual's: (a) Social security number; (b) driver's license number; (c) bank account number; (d) credit or debit card number; (e) personal identification number; (f) automated or electronic signature; (g) unique biometric data; (h) account passwords; or (i) any other piece of information that can be used to access an individual's financial accounts or to obtain goods or services.

      (13) "Web page" means a location, with respect to the world wide web, that has a single uniform resource locator or other single location with respect to the internet.

      NEW SECTION. Sec. 2. A new section is added to chapter 19.190 RCW to read as follows:

      It is a violation of this chapter to solicit, request, or take any action to induce a person to provide personally identifying information by means of a web page, electronic mail message, or otherwise using the internet by representing oneself, either directly or by implication, to be another person, without the authority or approval of such other person.

      NEW SECTION. Sec. 3. A new section is added to chapter 19.190 RCW to read as follows:

      (1) A person who is injured under this chapter may bring a civil action in the superior court to enjoin further violations, and to seek up to five hundred dollars per violation, or actual damages, whichever is greater. A person who seeks damages under this subsection may only bring an action against a person or entity that directly violates section 2 of this act.

      (2) A person engaged in the business of providing internet access service to the public, an owner of a web page, or trademark owner who is adversely affected by reason of a violation of section 2 of this act, may bring an action against a person who violates section 2 of this act to:

      (a) Enjoin further violations of section 2 of this act; and

      (b) Recover the greater of actual damages or five thousand dollars per violation of section 2 of this act.

      (3) In an action under subsection (2) of this section, a court may increase the damages up to three times the damages allowed by subsection (2) of this section if the defendant has engaged in a pattern and practice of violating this section. The court may award costs and reasonable attorneys' fees to a prevailing party.

      NEW SECTION. Sec. 4. A new section is added to chapter 19.190 RCW to read as follows:

      The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. A violation of this chapter is not reasonable in relation to the development and preservation of business, and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.

      NEW SECTION. Sec. 5. A new section is added to chapter 19.190 RCW to read as follows:

      It is the intent of the legislature that this chapter is a matter of statewide concern. This chapter supersedes and preempts all rules, regulations, codes, ordinances, and other laws adopted by a city, county, city and county, municipality, or local agency regarding the practices covered by this chapter and notices to consumers from computer software providers regarding information collection.

      NEW SECTION. Sec. 6. 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."

      Senator Fairley spoke in favor of adoption of the committee striking amendment.

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Financial Institutions, Housing & Consumer Protection to Engrossed Second Substitute House Bill No. 1888.

      The motion by Senator Fairley carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted.

      On page 1, line 1 of the title, after "fraud;" strike the remainder of the title and insert "amending RCW 19.190.010; adding new sections to chapter 19.190 RCW; and prescribing penalties."

MOTION

      On motion of Senator Fairley, the rules were suspended, Engrossed Second Substitute House Bill No. 1888, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Fairley and McCaslin spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed Second Substitute House Bill No. 1888, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 1888, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 49

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1888, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1605, by House Committee on Appropriations (originally sponsored by Representatives Upthegrove, Dickerson, Schual-Berke, Cody, McDermott, Hunter, B. Sullivan, Simpson, Morrell, Murray, Chase, Roberts, Kenney and Santos)

      Protecting children from area-wide soil contamination.

      The measure was read the second time.

MOTION

      Senator Poulsen moved that the following committee striking amendment by the Committee on Water, Energy & Environment be adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that state and local agencies are currently implementing actions to reduce children's exposure to soils that contain hazardous substances. The legislature further finds that it is in the public interest to enhance those efforts in western Washington in areas located within the central Puget Sound smelter plume.

      NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Area-wide soil contamination" means low to moderate arsenic and lead soil contamination dispersed over a large geographic area.

      (2) "Child care facility" means a child day-care center or a family day-care provider as those terms are defined under RCW 74.15.020.

      (3) "Department" means the department of ecology.

      (4) "Director" means the director of the department of ecology.

      (5) "Low to moderate soil contamination" means low level arsenic or lead concentrations where a child's exposure to soil contamination at a school or a child care facility may be reduced through best management practices.

      (6) "School" means a public or private kindergarten, elementary, or secondary school.

      NEW SECTION. Sec. 3. (1) The department, in cooperation with the department of social and health services, the department of health, the office of the superintendent of public instruction, and local health districts, shall assist schools and child care facilities west of the crest of the Cascade mountains to reduce the potential for children's exposure to area-wide soil contamination.

      (2) The department shall:

      (a) Identify schools and child care facilities that are located within the central Puget Sound smelter plume based on available information;

      (b) Conduct qualitative evaluations to determine the potential for children's exposure to area-wide soil contamination;

      (c) If the qualitative evaluation determines that children may be routinely exposed to area-wide soil contamination at a property, conduct soil samples at that property by December 31, 2009; and

      (d) If soil sample results confirm the presence of area-wide soil contamination, notify schools and child care facilities regarding the test results and the steps necessary for implementing best management practices.

      (3) If a school or a child care facility with area-wide soil contamination does not implement best management practices within six months of receiving written notification from the department, the superintendent or board of directors of a school or the owner or operator of a child care facility must notify parents and guardians in writing of the results of soil tests. The written notice shall be prepared by the department.

      (4) The department shall recognize schools and child care facilities that successfully implement best management practices with a voluntary certification letter confirming that the facility has successfully implemented best management practices.

      (5) Schools and child care facilities must work with the department to provide the department with site access for soil sampling at times that are the most convenient for all parties.

      NEW SECTION. Sec. 4. (1) The department shall assist schools and owners and operators of child care facilities located within the central Puget Sound smelter plume. Such assistance may include the following:

      (a) Technical assistance in conducting qualitative evaluations to determine where area-wide soil contamination exposures could occur;

      (b) Technical and financial assistance in testing soils where evaluations indicate potential for contamination; and

      (c) Technical and financial assistance to implement best management practices.

      (2) The department shall develop best management practice guidelines for schools and day care facilities with area-wide soil contamination. The guidelines shall recommend a range of methods for reducing exposure to contaminated soil, considering the concentration, extent, and location of contamination and the nature and frequency of child use of the area.

      (3) The department shall develop a grant program to assist schools and child care facilities with implementing best management practices.

      (4) The department, within available funds, may provide grants to schools and child care facilities for the purpose of implementing best management practices.

      (5) The department, within available funds, may provide financial assistance to the department of health and the department of social and health services to implement this chapter.

      (6) The department may, through an interagency agreement, authorize a local health jurisdiction to administer any activity in this chapter that is otherwise not assigned to a local health jurisdiction by this chapter.

      (7) The department shall evaluate actions to reduce child exposure to contaminated soils and submit progress reports to the governor and to the appropriate committees of the legislature by December 31, 2006, and December 31, 2008.

      NEW SECTION. Sec. 5. The department of health shall assist the department in implementing this chapter, including but not limited to developing best management practices and guidelines.

      NEW SECTION. Sec. 6. The department of social and health services shall assist the department by providing information on the location of child care facilities and contacts for these facilities.

      NEW SECTION. Sec. 7. This chapter does not apply to land devoted primarily to the commercial production of livestock or agricultural commodities.

      NEW SECTION. Sec. 8. Nothing in this chapter is intended to change ongoing actions or the authority of the department or other agencies to require actions to address soil contamination under existing laws.

      NEW SECTION. Sec. 9. Sections 1 through 8 of this act constitute a new chapter in Title 70 RCW.

      NEW SECTION. Sec. 10. If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2005, in the omnibus appropriations act, this act is null and void."

      Senator Poulsen spoke in favor of adoption of the committee striking amendment.

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Water, Energy & Environment to Engrossed Second Substitute House Bill No. 1605.

      The motion by Senator Poulsen carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted:

      On page 1, line 2 of the title, after "contamination;" strike the remainder of the title and insert "adding a new chapter to Title 70 RCW; and creating a new section."

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, Engrossed Second Substitute House Bill No. 1605, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Kohl-Welles and Morton spoke in favor of passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed Second Substitute House Bill No. 1605, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Second Substitute House Bill No. 1605, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 49

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1605, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 1591, by House Committee on Health Care (originally sponsored by Representatives Schual-Berke, Hinkle, Cody, Skinner and Moeller)

      Concerning assisted care facilities.

      The measure was read the second time.

MOTION

      Senator Keiser moved that the following committee striking amendment by the Committee on Health & Long-Term Care be adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 18.20 RCW to read as follows:

      The department of health, the department, and the building code council shall develop standards for small boarding homes between seven and sixteen beds that address at least the following issues:

      (1) Domestic food refrigeration and freezer storage;

      (2) Sinks and sink placement;

      (3) Dishwashers;

      (4) Use of heat supplements for water temperature in clothes washers;

      (5) Yard shrubbery;

      (6) Number of janitorial rooms in a facility;

      (7) Number and cross-purpose of dirty rooms;

      (8) Instant hot water faucets;

      (9) Medication refrigeration; and

      (10) Walled and gated facilities.

      Based on the standards developed under this section, the department of health and the building code council shall study the risks and benefits of modifying and simplifying construction and equipment standards for boarding homes with a capacity of seven to sixteen persons. The study shall include coordination with the department. The department of health shall report its findings and recommendations to appropriate committees of the legislature no later than December 1, 2005.

      NEW SECTION. Sec. 2. The department of health and the department of social and health services may adopt rules to implement section 1 of this act.

      Sec. 3. RCW 70.128.010 and 2001 c 319 s 6 and 2001 c 319 s 2 are each reenacted and amended to read as follows:

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

      (1) "Adult family home" means a residential home in which a person or persons provide personal care, special care, room, and board to more than one but not more than six adults who are not related by blood or marriage to the person or persons providing the services.

      (2) "Special capacity adult family home" means an adult family home licensed to provide services to seven or eight residents.

      (3) "Provider" means any person who is licensed under this chapter to operate an adult family home. For the purposes of this section, "person" means any individual, partnership, corporation, association, or limited liability company. A provider, in an adult family home licensed for seven or eight residents, means a person with one year of administration experience, in the state of Washington, in any long-term licensed care setting.

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

      (((4))) (5) "Resident" means an adult in need of personal or special care in an adult family home who is not related to the provider.

      (((5))) (6) "Adults" means persons who have attained the age of eighteen years.

      (((6))) (7) "Home" means an adult family home.

      (((7))) (8) "Imminent danger" means serious physical harm to or death of a resident has occurred, or there is a serious threat to resident life, health, or safety.

      (((8))) (9) "Special care" means care beyond personal care as defined by the department, in rule.

      (((9))) (10) "Capacity" means the maximum number of persons in need of personal or special care permitted in an adult family home at a given time. This number shall include related children or adults in the home and who received special care.

      (((10))) (11) "Resident manager" means a person employed or designated by the provider to manage the adult family home.

      NEW SECTION. Sec. 4. A new section is added to chapter 70.128 RCW to read as follows:

      The department may license an adult family home to be a special capacity adult family home. The department shall, at a minimum, consider the prior compliance history of the licensee, the experience of the licensee, the adequacy of the physical space in the home, and the number, qualification, and training of readily available staff to meet the needs of residents when determining whether to grant the license. The department shall develop rules pertaining to the licensing of special capacity adult family homes to include requirements related to licensing and the health and safety of residents.

      NEW SECTION. Sec. 5. A new section is added to chapter 70.128 RCW to read as follows:

      (1) All adult family homes licensed for seven or eight residents shall install smoke detectors. Smoke detectors must be installed in each sleeping room and installed at a central point in a corridor or area which gives access to each separate sleeping room. All smoke detectors located inside adult family homes, licensed for seven or eight residents, shall be interconnected so as to sound an alarm from all smoke detectors located in the home when any one detector is activated.

      (2) Adult family homes licensed for seven or eight residents shall have their interconnected smoke detectors monitored by a central monitoring company and the adult family home provider shall maintain the central monitoring service so long as the home is licensed as an adult family home.

      (3) Adult family homes licensed for seven or eight residents shall install a residential automatic fire sprinkler system. Installation and maintenance shall be in accordance with standards specified in the state building code. The state building code council shall adopt rules to implement the requirements of this subsection (3). The automatic fire sprinkler system shall be inspected on an annual basis by a state certified automatic sprinkler system inspection and testing technician.

      NEW SECTION. Sec. 6. A new section is added to chapter 70.128 RCW to read as follows:

      The department shall implement, as part of the required training and continuing education, food safety training and testing integrated into the curriculum that meets the standards established by the state board of health pursuant to chapter 69.06 RCW. Individual food handler permits are not required for persons who begin working in an adult family home after June 30, 2005, and successfully complete the basic and modified-basic caregiver training, provided they receive information or training regarding safe food handling practices from the employer prior to providing food handling or service for the clients. Documentation that the information or training has been provided to the individual must be kept on file by the employer.

      Licensed adult family home providers or employees who hold individual food handler permits prior to June 30, 2005, will be required to maintain continuing education of .5 hours per year in order to maintain food handling and safety training. Licensed adult family home providers or employees who hold individual food handler permits prior to June 30, 2005, will not be required to renew the permit provided the continuing education requirement as stated above is met.

      NEW SECTION. Sec. 7. A new section is added to chapter 69.06 RCW to read as follows:

      Except for the food safety training standards adopted by the state board of health under RCW 69.06.010, the provisions of this chapter do not apply to persons who work in adult family homes and successfully complete training and continuing education as required by section 6 of this act."

      Senators Keiser and Deccio spoke in favor of adoption of the committee striking amendment.

MOTION

On motion of Senator Regala, Senator Rockefeller was excused.

      The President declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Health & Long-Term Care to Substitute House Bill No. 1591.

      The motion by Senator Keiser carried and the committee striking amendment was adopted by voice vote.

MOTION

      There being no objection, the following title amendment was adopted:

      On page 1, line 1 of the title, after "facilities;" strike the remainder of the title and insert "reenacting and amending RCW 70.128.010; adding a new section to chapter 18.20 RCW; adding new sections to chapter 70.128 RCW; adding a new section to chapter 69.06 RCW; and creating a new section."

MOTION

      On motion of Senator Keiser, the rules were suspended, Substitute House Bill No. 1591, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Keiser and Deccio 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. 1591, as amended by the Senate.

MOTION

On motion of Senator Regala, Senator Franklin was excused.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 1591, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

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

      Absent: Senator Brown - 1

      Excused: Senators Franklin and Rockefeller - 2

      SUBSTITUTE HOUSE BILL NO. 1591, as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1631, by House Committee on Local Government (originally sponsored by Representatives Clibborn, Fromhold, Moeller, Wallace and Jarrett)

      Using revenues under the county conservation futures levy.

      The measure was read the second time.

MOTION

      Senator Jacobsen moved that the following committee striking amendment by the Committee on Natural Resources, Ocean & Recreation not be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 84.34.230 and 1995 c 318 s 8 are each amended to read as follows:

      Conservation futures are a useful tool for counties to preserve lands of public interest for future generations. Counties are encouraged to use some conservation futures as one tool for salmon preservation purposes.

      For the purpose of acquiring conservation futures ((as well as)) and other rights and interests in real property pursuant to RCW 84.34.210 and 84.34.220, and for maintaining and operating any property acquired with these funds, a county may levy an amount not to exceed ((six and one- quarter)) ten cents per thousand dollars of assessed valuation against the assessed valuation of all taxable property within the county. The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in this section. Any rights or interests in real property acquired under this section after the effective date of this section must be located within the assessing county.

      Sec. 2. RCW 84.34.240 and 1971 ex.s. c 243 s 5 are each amended to read as follows:

      Conservation futures are a useful tool for counties to preserve lands of public interest for future generations. Counties are encouraged to use some conservation futures as one tool for salmon preservation purposes.

      (1) Any board of county commissioners may establish by resolution a special fund which may be termed a conservation futures fund to which it may credit all taxes levied pursuant to RCW 84.34.230. Amounts placed in this fund may be used ((solely)) for the purpose of acquiring rights and interests in real property pursuant to the terms of RCW 84.34.210 and 84.34.220, and for the maintenance and operation of any property acquired with these funds. The amount of revenue used for maintenance and operations of parks and recreational land may not exceed fifteen percent of the total amount collected from the tax levied under RCW 84.34.230 in the preceding calendar year. Revenues from this tax may not be used to supplant existing maintenance and operation funding. Any rights or interests in real property acquired under this section must be located within the assessing county.

      (2) In counties greater than one hundred thousand in population, the board of county commissioners or county legislative authority shall develop a process to help ensure distribution of the tax levied under RCW 84.34.230, over time, throughout the county.

      (3)(a) Between the effective date of this section and July 1, 2008, the county legislative authority of a county with a population density of fewer than four persons per square mile may enact an ordinance offering a ballot proposal to the people of the county to determine whether or not the county legislative authority may make a one-time emergency reallocation of unspent conservation futures funds to pay for other county government purposes, where such conservation futures funds were originally levied under RCW 84.34.230 but never spent to acquire rights and interests in real property.

      (b) Upon adoption by the county legislative authority of a ballot proposal ordinance under (a) of this subsection the county auditor shall: (i) Confer with the county legislative authority and review any proposal to the people as to form and style; (ii) give the ballot proposal a number, which thereafter shall be the identifying number for the proposal; (iii) transmit a copy of the proposal to the prosecuting attorney; and (iv) submit the proposal to the people at the next general or special election that is not less than ninety days after the adoption of the ordinance by the county legislative authority.

      (c) The county prosecuting attorney shall within fifteen working days of receipt of the proposal compose a concise statement, posed as a positive question, not to exceed twenty-five words, which shall express and give a true and impartial statement of the proposal. Such concise statement shall be the ballot title.

      (d) If the measure is affirmed by a majority voting on the issue it shall become effective ten days after the results of the election are certified.

      (4) Nothing in this section shall be construed as limiting in any manner methods and funds otherwise available to a county for financing the acquisition of such rights and interests in real property.

      Sec. 3. RCW 84.52.010 and 2004 c 129 s 21 and 2004 c 80 s 3 are each reenacted and amended to read as follows:

      Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

      The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

      When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

      (1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.135, 36.54.130, 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows:

      (a) If the consolidated tax levy rate exceeds these limitations, any portion of the levy imposed under RCW 84.34.230 that is in excess of six and one-quarter cents per thousand dollars of assessed valuation shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated prior to any other levy authorized under RCW 84.34.230;

      (b) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a county under RCW 84.52.135 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

      (((b))) (c) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

      (((c))) (d) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated;

      (((d))) (e) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and

      (((e))) (f) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

      (2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

      (a) First, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

      (b) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

      (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, regional fire protection service authorities, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

      (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts created on or after January 1, 2002, shall be reduced on a pro rata basis or eliminated;

      (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to regional fire protection service authorities under RCW 52.26.140(1) (b) and (c) and fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

      (f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for regional fire protection service authorities under RCW 52.26.140(1)(a), fire protection districts under RCW 52.16.130, library districts, metropolitan park districts created before January 1, 2002, under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated."

      On page 1, line 2 of the title, after "levy;" strike the remainder of the title and insert "amending RCW 84.34.230 and 84.34.240; and reenacting and amending RCW 84.52.010."

      The President declared the question before the Senate to be the motion by Senator Jacobsen to not adopt the committee striking amendment by the Committee on Natural Resources, Ocean & Recreation to Engrossed Substitute House Bill No. 1631 and the motion carried by voice vote.

MOTION

      Senator Zarelli moved that the following striking amendment by Senators Zarelli and Jacobsen be adopted:

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 84.34.230 and 1995 c 318 s 8 are each amended to read as follows:

      Conservation futures are a useful tool for counties to preserve lands of public interest for future generations. Counties are encouraged to use some conservation futures as one tool for salmon preservation purposes.

      For the purpose of acquiring conservation futures ((as well as)) and other rights and interests in real property pursuant to RCW 84.34.210 and 84.34.220, and for maintaining and operating any property acquired with these funds, a county may levy an amount not to exceed six and one-quarter cents per thousand dollars of assessed valuation against the assessed valuation of all taxable property within the county. The limitations in RCW 84.52.043 shall not apply to the tax levy authorized in this section. Any rights or interests in real property acquired under this section after the effective date of this section must be located within the assessing county. Further, the county must determine if the rights or interests in real property acquired with these funds would reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth, as adopted in the countywide planning policies. When actions are taken that reduce capacity to accommodate planned growth, the jurisdiction shall adopt reasonable measures to increase the capacity lost by such actions.

      Sec. 2. RCW 84.34.240 and 1971 ex.s. c 243 s 5 are each amended to read as follows:

      Conservation futures are a useful tool for counties to preserve lands of public interest for future generations. Counties are encouraged to use some conservation futures as one tool for salmon preservation purposes.

      (1) Any board of county commissioners may establish by resolution a special fund which may be termed a conservation futures fund to which it may credit all taxes levied pursuant to RCW 84.34.230. Amounts placed in this fund may be used ((solely)) for the purpose of acquiring rights and interests in real property pursuant to the terms of RCW 84.34.210 and 84.34.220, and for the maintenance and operation of any property acquired with these funds. The amount of revenue used for maintenance and operations of parks and recreational land may not exceed fifteen percent of the total amount collected from the tax levied under RCW 84.34.230 in the preceding calendar year. Revenues from this tax may not be used to supplant existing maintenance and operation funding. Any rights or interests in real property acquired under this section must be located within the assessing county. Further, the county must determine if the rights or interests in real property acquired with these funds would reduce the capacity of land suitable for development necessary to accommodate the allocated housing and employment growth, as adopted in the countywide planning policies. When actions are taken that reduce capacity to accommodate planned growth, the jurisdiction shall adopt reasonable measures to increase the capacity lost by such actions.

      (2) In counties greater than one hundred thousand in population, the board of county commissioners or county legislative authority shall develop a process to help ensure distribution of the tax levied under RCW 84.34.230, over time, throughout the county.

      (3)(a) Between the effective date of this section and July 1, 2008, the county legislative authority of a county with a population density of fewer than four persons per square mile may enact an ordinance offering a ballot proposal to the people of the county to determine whether or not the county legislative authority may make a one-time emergency reallocation of unspent conservation futures funds to pay for other county government purposes, where such conservation futures funds were originally levied under RCW 84.34.230 but never spent to acquire rights and interests in real property.

      (b) Upon adoption by the county legislative authority of a ballot proposal ordinance under (a) of this subsection the county auditor shall: (i) Confer with the county legislative authority and review any proposal to the people as to form and style; (ii) give the ballot proposal a number, which thereafter shall be the identifying number for the proposal; (iii) transmit a copy of the proposal to the prosecuting attorney; and (iv) submit the proposal to the people at the next general or special election that is not less than ninety days after the adoption of the ordinance by the county legislative authority.

      (c) The county prosecuting attorney shall within fifteen working days of receipt of the proposal compose a concise statement, posed as a positive question, not to exceed twenty-five words, which shall express and give a true and impartial statement of the proposal. Such concise statement shall be the ballot title.

      (d) If the measure is affirmed by a majority voting on the issue it shall become effective ten days after the results of the election are certified.

      (4) Nothing in this section shall be construed as limiting in any manner methods and funds otherwise available to a county for financing the acquisition of such rights and interests in real property."

      Senators Zarelli and Jacobsen spoke in favor of adoption of the striking amendment.

      The President declared the question before the Senate to be the adoption of the striking amendment by Senators Zarelli and Jacobsen to Engrossed Substitute House Bill No. 1631.

      The motion by Senator Zarelli 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 "levy;" strike the remainder of the title and insert "and amending RCW 84.34.230 and 84.34.240."

MOTION

      On motion of Senator Jacobsen, the rules were suspended, Engrossed Substitute House Bill No. 1631, as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Jacobsen and Oke spoke in favor of passage of the bill.

      Senator Spanel spoke against passage of the bill.

      The President declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 1631, as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 1631, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

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

      Voting nay: Senators Pflug, Pridemore and Spanel - 3

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1631, 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.

STATEMENT FOR THE JOURNAL

      The Senate Journal reflects that I voted “No” on Engrossed Substitute House Bill No. 1631. I inadvertently voted “No” on this bill. I support the amended measure’s provisions regarding conservation futures, and should have voted “Yes” on final passage.

SENATOR CHERYL PFLUG, Legislative District No. 5

SECOND READING

      ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1794, by House Committee on Appropriations (originally sponsored by Representatives Kenney, Cox, Sommers, Fromhold, Priest, Sells, Moeller, Hasegawa, Conway, Ormsby, McCoy, Roberts, Kessler, Darneille, O'Brien, Murray, Dickerson, Lantz, Williams, Chase, Hunter, Lovick, Dunshee, Kagi, Morrell, Haigh, McDermott, Wood and Hudgins)

      Expanding access to baccalaureate degree programs.

      The measure was read the second time.

MOTION

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

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. (1) Since their creation in 1989, the research university branch campuses have significantly expanded access to baccalaureate and graduate education for placebound students in Washington's urban and metropolitan cities. Furthermore, the campuses have contributed to community revitalization and economic development in their regions. The campuses have met their overall mission through the development of new degree programs and through collaboration with community and technical colleges. These findings were confirmed by a comprehensive review of the campuses by the Washington state institute for public policy in 2002 and 2003, and reaffirmed through legislation enacted in 2004 that directed four of the campuses to make recommendations for their future evolution.

      (2) The self-studies conducted by the University of Washington Bothell, University of Washington Tacoma, Washington State University Tri-Cities, and Washington State University Vancouver reflect thoughtful and strategic planning and involved the input of numerous students, faculty, community and business leaders, community colleges, advisory committees, and board members. The higher education coordinating board's careful review provides a statewide context for the legislature to implement the next stage of the campuses.

      (3) Concurrently, the higher education coordinating board has developed a strategic master plan for higher education that sets a goal of increasing the number of students who earn college degrees at all levels: Associate, baccalaureate, and graduate. The strategic master plan also sets a goal to increase the higher education system's responsiveness to the state's economic needs.

      (4) The legislature finds that to meet both of the master plan's goals and to provide adequate educational opportunities for Washington's citizens, additional access is needed to baccalaureate degree programs. Expansion of the four campuses is one strategy for achieving the desired outcomes of the master plan. Other strategies must also be implemented through service delivery models that reflect both regional demands and statewide priorities.

      (5) Therefore, the legislature intends to increase baccalaureate access and encourage economic development through overall expansion of upper division capacity, continued development of two plus two programs in some areas of the state, authorization of four-year university programs in other areas of the state, and creation of new types of baccalaureate programs on a pilot basis. These steps will make significant progress toward achieving the master plan goals, but the legislature will also continue to monitor the development of the higher education system and evaluate what additional changes or expansion may be necessary.

      Sec. 2. RCW 28B.45.014 and 2004 c 57 s 2 are each amended to read as follows:

      (1) The primary mission of the higher education branch campuses created under this chapter remains to expand access to baccalaureate and master's level graduate education in underserved urban areas of the state in collaboration with community and technical colleges. The top priority for each of the campuses is to expand courses and degree programs for transfer and graduate students. New degree programs should be driven by the educational needs and demands of students and the community, as well as the economic development needs of local businesses and employers.

      (2) Branch campuses shall collaborate with the community and technical colleges in their region to develop articulation agreements, dual admissions policies, and other partnerships to ensure that branch campuses serve as innovative models of a two plus two educational system. Other possibilities for collaboration include but are not limited to joint development of curricula and degree programs, colocation of instruction, and arrangements to share faculty.

      (3) In communities where a private postsecondary institution is located, representatives of the private institution may be invited to participate in the conversation about meeting the baccalaureate and master's level graduate needs in underserved urban areas of the state.

      (4) However, the legislature recognizes there are alternative models for achieving this primary mission. Some campuses may have additional missions in response to regional needs and demands. At selected branch campuses, an innovative combination of instruction and research targeted to support regional economic development may be appropriate to meet the region's needs for both access and economic viability. Other campuses should focus on becoming models of a two plus two educational system through continuous improvement of partnerships and agreements with community and technical colleges. Still other campuses may be best suited to transition to a four-year ((comprehensive)) university or be removed from designation as a branch campus entirely.

      (5) ((It is the legislature's intent that each branch campus be funded commensurate with its unique mission, the degree programs offered, and the institutional combination of instruction and research, but at a level less than a research university)) The legislature recognizes that size, mix of degree programs, and proportion of lower versus upper-division and graduate enrollments are factors that affect costs at branch campuses. However over time, the legislature intends that branch campuses be funded more similarly to regional universities.

      (6) In consultation with the higher education coordinating board, a branch campus may propose legislation to authorize practice-oriented or professional doctoral programs if: (a) Unique research facilities and equipment are located near the campus; or (b) the campus can clearly demonstrate student and employer demand in the region that is linked to regional economic development.

      (7) It is not the legislature's intent to have each campus chart its own future path without legislative guidance. Instead, the legislature intends to consider carefully the mission and model of education that best suits each campus and best meets the needs of students, the community, and the region. The higher education coordinating board shall monitor and evaluate the addition of lower division students to the branch campuses and periodically report and make recommendations to the higher education committees of the legislature to ensure the campuses continue to follow the priorities established under this chapter.

      Sec. 3. RCW 28B.45.020 and 1994 c 217 s 3 are each amended to read as follows:

      (1) The University of Washington is responsible for ensuring the expansion of ((upper-division)) baccalaureate and graduate educational programs in the central Puget Sound area under rules or guidelines adopted by the higher education coordinating board and in accordance with proportionality agreements emphasizing access for transfer students developed with the state board for community and technical colleges. The University of Washington shall meet that responsibility through the operation of at least two branch campuses. One branch campus shall be located in the Tacoma area. Another branch campus shall be collocated with Cascadia Community College in the Bothell-Woodinville area.

      (2) At the University of Washington Tacoma, a top priority is expansion of upper division capacity for transfer students and graduate capacity and programs. Beginning in the fall of 2006, the campus may offer lower division courses linked to specific majors in fields not addressed at local community colleges. The campus shall admit lower division students through coadmission or coenrollment agreements with a community college, or through direct transfer for students who have accumulated approximately one year of transferable college credits. In addition to offering lower division courses linked to specific majors as addressed above, the campus may also directly admit freshmen and sophomores gradually and deliberately in accordance with the campus plan submitted to the higher education coordinating board in 2004.

      (3) At the University of Washington Bothell, a top priority is expansion of upper division capacity for transfer students and graduate capacity and programs. The campus shall also seek additional opportunities to collaborate with and maximize its collocation with Cascadia Community College. Beginning in the fall of 2006, the campus may offer lower division courses linked to specific majors in fields not addressed at local community colleges. The campus may admit lower division students through coadmission or coenrollment agreements with a community college, or through direct transfer for students who have accumulated approximately one year of transferable college credits. In addition to offering lower division courses linked to specific majors as addressed above, the campus may also directly admit freshmen and sophomores gradually and deliberately in accordance with the campus plan submitted to the higher education coordinating board in 2004.

      Sec. 4. RCW 28B.45.030 and 1989 1st ex.s. c 7 s 4 are each amended to read as follows:

      (1) Washington State University is responsible for providing ((upper-division)) baccalaureate and graduate level higher education programs to the citizens of the Tri-Cities area, under rules or guidelines adopted by the higher education coordinating board and in accordance with proportionality agreements emphasizing access for transfer students developed with the state board for community and technical colleges. Washington State University shall meet that responsibility through the operation of a branch campus in the Tri-Cities area. The branch campus shall replace and supersede the Tri-Cities university center. All land, facilities, equipment, and personnel of the Tri-Cities university center shall be transferred from the University of Washington to Washington State University.

      (2) Washington State University Tri-Cities shall continue providing innovative coadmission and coenrollment options with Columbia Basin College, and expand its upper division capacity for transfer students and graduate capacity and programs. The campus shall also seek additional opportunities to collaborate with the Pacific Northwest national laboratory. Beginning in the fall of 2006, the campus may offer lower division courses linked to specific majors in fields not addressed at local community colleges. The campus may admit lower division students through coadmission or coenrollment agreements with a community college, or through direct transfer for students who have accumulated approximately one year of transferable college credits. In addition to offering lower division courses linked to specific majors as addressed above, the campus may also directly admit freshmen and sophomores for a bachelor's degree program in biotechnology subject to approval by the higher education coordinating board. The campus may not directly admit freshmen and sophomores for degree programs other than biotechnology, however this topic shall be the subject of further study and recommendations by the higher education coordinating board.

      Sec. 5. RCW 28B.45.040 and 1989 1st ex.s. c 7 s 5 are each amended to read as follows:

      (1) Washington State University is responsible for providing ((upper-division)) baccalaureate and graduate level higher education programs to the citizens of the southwest Washington area, under rules or guidelines adopted by the higher education coordinating board and in accordance with proportionality agreements emphasizing access for transfer students developed with the state board for community and technical colleges. Washington State University shall meet that responsibility through the operation of a branch campus in the southwest Washington area.

      (2) Washington State University Vancouver shall expand upper division capacity for transfer students and graduate capacity and programs and continue to collaborate with local community colleges on coadmission and coenrollment programs. In addition, beginning in the fall of 2006, the campus may admit lower division students directly. By simultaneously admitting freshmen and sophomores, increasing transfer enrollment, coadmitting transfer students, and expanding graduate and professional programs, the campus shall develop into a four-year institution serving the southwest Washington region.

      NEW SECTION. Sec. 6. A new section is added to chapter 28B.50 RCW to read as follows:

      (1) The college board shall select four community or technical colleges to develop and offer programs of study leading to an applied baccalaureate degree. The college board shall convene a task force that includes representatives of both the community and technical colleges to develop objective selection criteria.

      (2) Colleges may submit an application to become a pilot college under this section. The college board shall review the applications and select the pilot colleges using objective criteria, including:

      (a) The college demonstrates the capacity to make a long-term commitment of resources to build and sustain a high quality program;

      (b) The college has or can readily engage faculty appropriately qualified to develop and deliver a high quality curriculum at the baccalaureate level;

      (c) The college can demonstrate demand for the proposed program from a sufficient number of students within its service area to make the program cost-effective and feasible to operate;

      (d) The college can demonstrate that employers demand the level of technical training proposed within the program, making it cost-effective for students to seek the degree; and

      (e) The proposed program fills a gap in options available for students because it is not offered by a public four-year institution of higher education in the college's geographic area.

      (3) A college selected as a pilot college under this section may develop the curriculum for and design and deliver courses leading to an applied baccalaureate degree. However, degree programs developed under this section are subject to approval by the college board under RCW 28B.50.090 and by the higher education coordinating board under RCW 28B.76.230 before a pilot college may enroll students in upper-division courses. A pilot college may not enroll students in upper division courses before the fall academic quarter of 2006.

      Sec. 7. RCW 28B.50.020 and 1991 c 238 s 21 are each amended to read as follows:

      The purpose of this chapter is to provide for the dramatically increasing number of students requiring high standards of education either as a part of the continuing higher education program or for occupational education and training, or for adult basic skills and literacy education, by creating a new, independent system of community and technical colleges which will:

      (1) Offer an open door to every citizen, regardless of his or her academic background or experience, at a cost normally within his or her economic means;

      (2) Ensure that each college district shall offer thoroughly comprehensive educational, training and service programs to meet the needs of both the communities and students served by combining high standards of excellence in academic transfer courses; realistic and practical courses in occupational education, both graded and ungraded; community services of an educational, cultural, and recreational nature; and adult education, including basic skills and general, family, and work force literacy programs and services. However, college districts containing only technical colleges shall maintain programs solely for occupational education, basic skills, and literacy purposes, and, for as long as a need exists, may continue those programs, activities, and services offered by the technical colleges during the twelve-month period preceding September 1, 1991;

      (3) Provide for basic skills and literacy education, and occupational education and technical training at technical colleges in order to prepare students for careers in a competitive work force;

      (4) Provide or coordinate related and supplemental instruction for apprentices at community and technical colleges;

      (5) Provide administration by state and local boards which will avoid unnecessary duplication of facilities or programs; and which will encourage efficiency in operation and creativity and imagination in education, training and service to meet the needs of the community and students;

      (6) Allow for the growth, improvement, flexibility and modification of the community colleges and their education, training and service programs as future needs occur; and

      (7) Establish firmly that, except on a pilot basis as provided under section 6 of this act, community colleges are, for purposes of academic training, two year institutions, and are an independent, unique, and vital section of our state's higher education system, separate from both the common school system and other institutions of higher learning, and never to be considered for conversion into four-year liberal arts colleges.

      Sec. 8. RCW 28B.50.030 and 2003 2nd sp.s. c 4 s 33 are each amended to read as follows:

      As used in this chapter, unless the context requires otherwise, the term:

      (1) "System" shall mean the state system of community and technical colleges, which shall be a system of higher education.

      (2) "Board" shall mean the work force training and education coordinating board.

      (3) "College board" shall mean the state board for community and technical colleges created by this chapter.

      (4) "Director" shall mean the administrative director for the state system of community and technical colleges.

      (5) "District" shall mean any one of the community and technical college districts created by this chapter.

      (6) "Board of trustees" shall mean the local community and technical college board of trustees established for each college district within the state.

      (7) "Occupational education" shall mean that education or training that will prepare a student for employment that does not require a baccalaureate degree, and education and training leading to an applied baccalaureate degree.

      (8) "K-12 system" shall mean the public school program including kindergarten through the twelfth grade.

      (9) "Common school board" shall mean a public school district board of directors.

      (10) "Community college" shall include those higher education institutions that conduct education programs under RCW 28B.50.020.

      (11) "Technical college" shall include those higher education institutions with the sole mission of conducting occupational education, basic skills, literacy programs, and offering on short notice, when appropriate, programs that meet specific industry needs. The programs of technical colleges shall include, but not be limited to, continuous enrollment, competency-based instruction, industry-experienced faculty, curriculum integrating vocational and basic skills education, and curriculum approved by representatives of employers and labor. For purposes of this chapter, technical colleges shall include Lake Washington Vocational-Technical Institute, Renton Vocational-Technical Institute, Bates Vocational-Technical Institute, Clover Park Vocational Institute, and Bellingham Vocational-Technical Institute.

      (12) "Adult education" shall mean all education or instruction, including academic, vocational education or training, basic skills and literacy training, and "occupational education" provided by public educational institutions, including common school districts for persons who are eighteen years of age and over or who hold a high school diploma or certificate. However, "adult education" shall not include academic education or instruction for persons under twenty-one years of age who do not hold a high school degree or diploma and who are attending a public high school for the sole purpose of obtaining a high school diploma or certificate, nor shall "adult education" include education or instruction provided by any four year public institution of higher education.

      (13) "Dislocated forest product worker" shall mean a forest products worker who: (a)(i) Has been terminated or received notice of termination from employment and is unlikely to return to employment in the individual's principal occupation or previous industry because of a diminishing demand for his or her skills in that occupation or industry; or (ii) is self-employed and has been displaced from his or her business because of the diminishing demand for the business' services or goods; and (b) at the time of last separation from employment, resided in or was employed in a rural natural resources impact area.

      (14) "Forest products worker" shall mean a worker in the forest products industries affected by the reduction of forest fiber enhancement, transportation, or production. The workers included within this definition shall be determined by the employment security department, but shall include workers employed in the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting these definitions. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(3).