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 Home > Legislative Info > State - 2006 Legislative Session Information

Laws of 2006, 2006 legislative session bills, and Initiatives of possible interest to local governments.  Click on the chapter or bill number to link to additional information for that chapter or bill.

The 2006 Regular Session adjourned sine die on March 08, 2006.

Laws of 2006 - Complete List
Laws of 2006 - Possible Interest to Local Government

How to give input to a legislative bill

2006 Legislative Session bills enacted - Complete list of bills signed into law.
AWC Legislative Priorities for 2006 includes associated bill numbers
Chapter 1, Laws of 2006 (Initiative 900) - Performance Audits of Government Entities
Chapter 2, Laws of 2006 (Initiative 901) - Clean Indoor Air Act
Chapter 3, Laws of 2006 (SHB 2370) - Funding low-income home energy assistance.

The sum of $7.6 million is appropriated from the Public Service Revolving Fund to the Washington Utilities and Transportation Commission for transfer to the Department of Community, Trade and Economic Development for the Low-Income Energy Assistance Program during the 2005-07 biennium. The appropriation may not be used for the DCTED's administrative costs.

Votes on Final Passage:
House     97   0
Senate    48   0
Effective: January 12, 2006.  
Click here for additional information.

Chapter 5, Laws of 2006 (SHB 2419) - Raising funds for hosting the national conference of lieutenant governors.

The State Ethics Act is changed to allow the Lieutenant Governor and his or her staff to solicit and accept gifts, grants, or donations beyond the $50 limitation for purposes of hosting the 2006 official conference of the National Lieutenant Governors' Association.

Votes on Final Passage:
House     93   2
Senate    48   0
Effective: February 7, 2006  
Click here for additional information.

Chapter 6, Laws of 2006 (E2SHB 2860) - Regarding water resource management in the Columbia river basin.

Columbia River Water Supply Inventory
The Department is required to work with stakeholders in developing an initial Columbia River Water Supply Inventory (Inventory) and Water Demand Forecast by November 15, 2006. The Department must update the Inventory each year after 2006 and update the Water Demand Forecast every 5 years. The Inventory must identify potential conservation and storage projects in the Columbia River basin, as well as estimate the costs and benefits of the projects. The Inventory must also rank the identified projects in a number of different ways. This includes rankings of the projects in order of expense, benefits to fish, and benefits to out-of-stream needs.

Columbia River Basin Water Storage and Supply Account
The Columbia River Basin Water Supply Development Account (Account) is created. The Account is allowed to accept direct appropriations, payments made pursuant to voluntary regional agreements, and other sources.

Expenditures from the Account may be used to assess, plan, and develop new water storage, improve existing storage, fund conservation projects, and implement actions designed to provide new access to water in the Columbia River Basin.

Before any funds from the Account can be used for construction, the Department must evaluate the water uses the new facility will serve, the benefits and costs of the project, and alternative means of achieving the same goals.

The $10 million appropriation in the 2005 Capital Budget is amended to specify that the money may be used to begin implementing the goals of the Account. Specific water supply projects are identified for the Department as a focus of their implementation of the appropriation.

Allocation of "new" water
Water supplies that are developed and secured through projects funded by the Account must be used in specified ways. Two-thirds of this water must be dedicated to out-of-stream uses, while one-third must be used by the Department to enhance instream flows.

Voluntary regional agreements
The Department is given the specific authority to enter into voluntary regional agreements that establish the approval conditions for water withdrawals from the Columbia River and Snake River. These agreements must be limited to specific geographical areas and to parties that use or propose to use water from the mainstem of the Columbia and Snake rivers.

Prior to entering into a voluntary regional agreement, the Department must consult with the Department of Fish and Wildlife and watershed planning groups regarding the benefits that could be produced for fish, wildlife, and other instream values. Any draft agreements are subject to a 30-day public review and comment period. Before providing final consultation to the Department, the Department of Fish and Wildlife must consult with fisheries co-managers.

When voluntary regional agreements lead to the allocation of water for out-of-stream uses, the Department is given specific directions as to how the water is to be allocated. All allocations must ensure that water provided for out-of-stream uses does not cause a reduction in stream flows in the mainstem of the Columbia River during July or August, or in the Snake River between April and August. Water use applicants utilizing the voluntary regional agreement process to access new appropriations must agree to efficient water use practices.

The authority to enter into voluntary regional agreements expires on June 30, 2012. Any agreements entered into prior to the expiration date remain in effect subject to the terms of the agreement.

Conserved water
Except for water conserved within the federal Columbia Basin Reclamation project, when the state funds water conservation from the Account to benefit the mainstem of the Columbia River, conserved water must be held in trust by the Department in the same proportion as the share of funding that was provided by the state for the project that led to the water conservation. This portion of the conserved water must be used to improve instream flows to benefit fish and other instream values.

Columbia Mainstem Water Resources Information System
The Department must establish and maintain a Columbia Mainstem Water Resources Information System (System) to provide information necessary for effective resource planning and management on the mainstem of the Columbia River. In developing the System, the Department must consult with, and rely on information provided by, other public entities operating in the basin.

The System must address the total aggregate quantity of water rights on the Columbia River mainstem and the total volume metered and reported by water users.

The act is null and void if $200 million is not provided in a separate bond authorization act.

Votes on Final Passage:
House     94   4
Senate    48   0
Effective: July 1, 2006  
Click here for additional information.

Chapter 7, Laws of 2006, (HB 2424) - Providing sales and use tax exemptions for users of farm fuel.

Diesel and aircraft fuel used by farmers for non-highway farm activities is exempt from sales and use tax. The exemption also covers diesel and aircraft fuel used for soil preparation services, crop cultivation services, and crop harvesting services. The exemption does not cover fuel used for home heating.

Votes on Final Passage:
House     96   1
Senate    44   4   (Senate amended)
House     97   1   (House concurred)
Effective: March 6, 2006  
Click here for additional information.

Chapter 8, Laws of 2006 (2SHB 2292) - Addressing health care liability reform.

The Legislature finds that addressing the issues of consumer access to health care and the increasing costs of medical malpractice insurance requires comprehensive solutions that encourage patient safety, increase oversight of medical malpractice insurance, and make the civil justice system more understandable, fair, and efficient.

PATIENT SAFETY

Statements of Apology. In a medical negligence action, a statement of fault, apology, or sympathy, or a statement of remedial actions that may be taken, is not admissible as evidence in a civil action if the statement was conveyed by a health care provider to the injured person or certain family members within 30 days of the act or omission, or the discovery of the act or omission, that is the basis for the claim.

Reports of Unprofessional Conduct. The statute granting immunity to a physician, dentist, or pharmacist who files charges or presents evidence about the incompetence or misconduct of another physician, dentist, or pharmacist is expanded to apply to any health care professional subject to the Uniform Disciplinary Act and to apply to reports or evidence relating to unprofessional conduct or the inability to practice with reasonable skill and safety because of a physical or mental condition. A health care professional who prevails in a civil action on the good faith defense provided in this immunity statute is entitled to recover expenses and reasonable attorneys' fees incurred in establishing the defense.

Medical Quality Assurance Commission (MQAC). The public membership component of the MQAC is increased from four to six members, and at least two of the public members must not be representatives of the health care industry.

Health Care Provider Discipline. When imposing a sanction against a health care provider, a health profession disciplining authority may consider prior findings of unprofessional conduct, stipulations to informal disposition, and the actions of other Washington or out-of-state disciplining authorities.

Disclosure of Adverse Events. A medical facility must notify the Department of Health (DOH) within 48 hours of confirmation that an adverse event has occurred. The medical facility must submit a subsequent report of the adverse event to the DOH within 45 days. The report must include a root cause analysis of the adverse event and a corrective action plan, or an explanation of the reasons for not taking corrective action. Facilities and health care workers may report the occurrence of "incidents." "Adverse event" is defined as the list of serious reportable events adopted by the National Quality Forum in 2002. "Incident" is defined as an event involving clinical care that could have injured the patient or that resulted in an unanticipated injury that does not rise to the level of an adverse event.

The DOH must contract with an independent entity to develop a secure internet-based system for the reporting of adverse events and incidents. The independent entity is responsible for receiving and analyzing the notifications and reports and developing recommendations for changes in health care practices for the purpose of reducing the number and severity of adverse events. The independent entity must report to the Legislature and the Governor on an annual basis regarding the number of adverse events and incidents reported and the information derived from the reports.

Coordinated Quality Improvement Programs. The types of programs that may apply to the DOH to become coordinated quality improvement programs are expanded to include consortiums of health care providers that consist of at least five health care providers.

Prescription Legibility. Prescriptions for legend drugs must either be hand-printed, typewritten, or generated electronically.

INSURANCE INDUSTRY REFORM
Medical Malpractice Closed Claim Reporting. Self-insurers and insuring entities that write medical malpractice insurance are required to report medical malpractice closed claims that are closed after January 1, 2008, to the Office of the Insurance Commissioner (Commissioner). Closed claims reports must be filed annually by March 1, and must include data for closed claims for the preceding year. The reports must contain specified data relating to: the type of health care provider, specialty, and facility involved; the reason for the claim and the severity of the injury; the dates when the event occurred, the claim was reported to the insurer, and the suit was filed; the injured person's age and sex; and information about the settlement, judgment, or other disposition of the claim, including an itemization of damages and litigation expenses.

If a claim is not covered by an insuring entity or self-insurer, the provider or facility must report the claim to the Commissioner after a final disposition of the claim. The Commissioner may impose a fine of up to $250 per day against an insuring entity that fails to make the required report. The DOH may require a facility or provider to take corrective action to comply with the reporting requirements.

A claimant or the claimant's attorney in a medical malpractice action that results in a final judgment, settlement, or disposition, must report to the Commissioner certain data, including the date and location of the incident, the injured person's age and sex, and information about the amount of judgment or settlement, court costs, attorneys' fees, or expert witness costs incurred in the action.

The Commissioner must use the data to prepare aggregate statistical summaries of closed claims and an annual report of closed claims and insurer financial reports. The annual report must include specified information, such as: trends in frequency and severity of claims; types of claims paid; a comparison of economic and non-economic damages; a distribution of allocated loss adjustment expenses; a loss ratio analysis for medical malpractice insurance; a profitability analysis for medical malpractice insurers; a comparison of loss ratios and profitability; and a summary of approved medical malpractice rate filings for the prior year, including analyzing the trend of losses compared to prior years.

Any information in a closed claim report that may result in the identification of a claimant, provider, health care facility, or self-insurer is exempt from public disclosure.

Underwriting Standards. During the underwriting process, an insurer may consider the following factors only in combination with other substantive underwriting factors: (1) that an inquiry was made about the nature or scope of coverage; (2) that a notification was made about a potential claim that did not result in the filing of a claim; or (3) that a claim was closed without payment. If an underwriting activity results in a higher premium or reduced coverage, the insurer must provide written notice to the insured describing the significant risk factors that led to the underwriting action.

Cancellation or Non-Renewal of Liability Insurance Policies. The mandatory notice period for cancellation or non-renewal of medical malpractice liability insurance policies is increased from 45 days to 90 days. An insurer must actually deliver or mail to the insured a written notice of the cancellation or non-renewal of the policy, which must include the actual reason for the cancellation or non-renewal and the significant risk factors that led to the action. For policies the insurer will not renew, the notice must state that the insurer will not renew the policy upon its expiration date.

Prior Approval of Medical Malpractice Insurance Rates. Medical malpractice rate filings and form filings are changed from the current "use and file" system to a prior approval system. An insurer must, prior to issuing a medical malpractice policy, file the policy rate and forms with the Commissioner. The Commissioner must review the filing, which cannot become effective until 30 days after its filing.

HEALTH CARE LIABILITY REFORM
Statutes of Limitations and Repose. Tolling of the statute of limitations during minority is eliminated.

The eight-year statute of repose is re-established. Legislative intent and findings regarding the justification for a statute of repose are provided in response to the Washington Supreme Court's decision overturning the statute of repose.

Certificate of Merit. In medical negligence actions involving a claim of a breach of the standard of care, the plaintiff must file a certificate of merit at the time of commencing the action, or no later than 45 days after filing the action if the action is filed 45 days prior to the running of the statute of limitations. The certificate of merit must be executed by a qualified expert and state that there is a reasonable probability that the defendant's conduct did not meet the required standard of care based on the information known at the time. The court for good cause may grant up to a 90-day extension for filing the certificate of merit.

Failure to file a certificate of merit that complies with these requirements results in dismissal of the case. If a case is dismissed for failure to comply with the certificate of merit requirements, the filing of the claim may not be used against the health care provider in liability insurance rate setting, personal credit history, or professional licensing or credentialing.

Voluntary Arbitration. A new voluntary arbitration system is established for disputes involving alleged professional negligence in the provision of health care. The voluntary arbitration system may be used only where all parties have agreed to submit the dispute to voluntary arbitration once the suit is filed, either through the initial complaint and answer, or after the commencement of the suit upon stipulation by all parties.

The maximum award an arbitrator may make is limited to $1 million for both economic and non-economic damages. In addition, the arbitrator may not make an award of damages based on the "ostensible agency" theory of vicarious liability.

The arbitrator is selected by agreement of the parties, and the parties may agree to more than one arbitrator. If the parties are unable to agree to an arbitrator, the court must select an arbitrator from names submitted by each side. A dispute submitted to the voluntary arbitration system must follow specified time periods that will result in the commencement of the arbitration no later than 12 months after the parties agreed to submit to voluntary arbitration.

The number of experts allowed for each side is generally limited to two experts on the issue of liability, two experts on the issue of damages, and one rebuttal expert. In addition, the parties are generally entitled to only limited discovery. Depositions of parties and expert witnesses are limited to four hours per deposition and the total number of additional depositions of other witnesses is limited to five per side, for no more than two hours per deposition.

There is no right to a trial de novo on an appeal of the arbitrator's decision. An appeal is limited to the bases for appeal provided under the current arbitration statute for vacation of an award under circumstances where there was corruption or misconduct, or for modification or correction of an award to correct evident mistakes.

Pre-Suit Notice and Mandatory Mediation. A medical malpractice action may not be commenced unless the plaintiff has provided the defendant with 90 days prior notice of the intention to file a suit. The 90-day notice requirement does not apply if the defendant's name is unknown at the time of filing the complaint.

The mandatory mediation statute is amended to require mandatory mediation of medical malpractice claims unless the claim is subject to either mandatory or voluntary arbitration. Implementation of the mediation requirement contemplates the adoption of a rule by the Supreme Court establishing a procedure for the parties to certify the manner of mediation used by the parties.

Collateral Sources. The collateral source payment statute is amended to remove the restriction on presenting evidence of collateral source payments that come from insurance purchased by the plaintiff. The plaintiff, however, may introduce evidence of amounts paid to secure the right to the collateral source payments (e.g., premiums), in addition to introducing evidence of an obligation to repay the collateral source compensation.

Frivolous Lawsuits. An attorney in a medical malpractice action, by signing and filing a claim, counterclaim, cross claim, or defense, certifies that the claim or defense is not frivolous. An attorney who signs a filing in violation of this section is subject to sanctions, including an order to pay reasonable expenses and reasonable attorneys' fees incurred by the other party.

Votes on Final Passage:
House    54   43
Senate   48    0    (Senate amended)
House    82   15   (House concurred)

Effective: June 7, 2006
              July 1, 2006 (Sections 112 and 210)  
Click here for additional information.

Chapter 11, Laws of 2006 (HB 2364) - Creating a use tax exemption when converting or merging a federal, foreign, or out-of-state credit union into a state charter.

Personal property, services, and extended warranties that are acquired by a state credit union from a federal, out-of-state, or foreign credit union as a result of a conversion or merger are exempt from use tax.

Votes on Final Passage:
House:     87   8
Senate:    47   0
Effective:  June 7, 2006  
Click here for additional information.

Chapter 17, Laws of 2006 (SB 6674) - Requiring that funds collected from construction of the second Tacoma Narrows bridge be deposited in the Tacoma Narrows toll bridge account.

Proceeds from the sale of surplus real property acquired for the purpose of constructing the new Tacoma Narrows Bridge and any liquidated damages collected on any contract used to construct the bridge are to be deposited into the Tacoma Narrows Toll Bridge Account instead of the Motor Vehicle Account.

Votes on Final Passage:
Senate     40   0
House      95   0
Effective:  June 7, 2006  
Click here for additional information.

Chapter 18, Laws of 2006 (3SHB 1458) - Concerning the management of on-site sewage systems in marine areas.
Revised for 3rd Substitute: Concerning the management of on-site sewage disposal systems in marine areas.

By July 1, 2007, local health officers in 12 counties bordering the Puget Sound must develop and approve an OSS program management plan that will guide the development and management of OSS in marine recovery areas within the local health jurisdiction. The local health jurisdictions are in the following counties and regions: Clallam, Island, Kitsap, Jefferson, Mason, San Juan, Seattle-King, Skagit, Snohomish, Tacoma-Pierce, Thurston, and Whatcom.

In developing the OSS program management plan, the local health officers must propose marine recovery areas where an OSSs is a significant factor contributing to concerns with: (1) shellfish growing areas that have been threatened or downgraded; (2) state waters listed under the CWA for low oxygen levels or fecal coliform; or (3) marine waters where nitrogen has been identified as a contaminant of concern. In determining the area's boundaries, the health officer must include geographic areas where existing OSS may have an impact. Once a marine recovery area has been proposed, the local health officer must develop and approve an on-site strategy to manage OSS within the proposed area.

The onsite strategy must address how the jurisdiction will:
  • find failing OSS and ensure system owners make repairs by July 1, 2012; and
  • find unknown OSS and ensure they are inspected or repaired by July 1, 2012.

The DOH may grant a 12-month extension where a local health jurisdiction has demonstrated substantial progress.

In addition, local health officers must require that OSS maintenance specialists and septic tank pumpers report any failing OSS. Working with the DOH, local health officers must develop an electronic data system to actively manage OSS within their jurisdiction.

The OSS management plans must be submitted to the DOH by July 1, 2007. The DOH must review all plans to ensure the required elements and designation of marine recovery areas are addressed. Within 30 days of receiving an on-site strategy, the DOH must either approve the strategy or provide in writing the reasons for not approving the strategy. If the strategy is not approved, the local board of health can revise and resubmit the strategy or may appeal the denial to the Board.

The DOH will enter into a contract with each local health jurisdiction to implement OSS plans or enhance its data systems. The contract must require evidence of progressive improvement in the marine recovery areas and other performance expected under the plan.

The DOE must offer financial and technical assistance to local governments and tribal entities in Puget Sound counties to establish or expand OSS repair and replacement loan and grant programs. The programs shall give priority to low-income home owners and award grants based on financial need.

The DOH must report to the appropriate committees of the Legislature by December 31, 2008, on progress in designating marine recovery areas and developing and implementing on-site strategies. The DOH shall convene a work group for the purpose of making recommendations to the Legislature for the development of certification or licensing of OSS maintenance specialists.

Votes on Final Passage:
House     70   26
Senate    28   15
Effective: June 7, 2006  
Click here for additional information.

Chapter 20, Laws of 2006 (SHB 2344) - Authorizing three superior court judges in Clallam county.
Revised for 1st Substitute: Increasing the number of superior court judicial positions in Clallam and Cowlitz counties.

One additional superior court judge is authorized in Clallam County and one additional superior court judge is authorized in Cowlitz County.

The additional judicial positions are effective only if each county documents its approval of the additional position and agrees to pay for its share of the costs for the position without reimbursement from the state.

Votes on Final Passage:
House      97   1
Senate     48   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 26, Laws of 2006 (SHB 2608) - Defining performance of duty for the volunteer fire fighters' and reserve officers' relief and pension act.

The definition of "performance of duty" or "performance of service" in the Volunteer Fire System includes other officially assigned duties that are secondary to duties as a fire fighter, emergency worker, or reserve officer, including maintenance, public education, inspections, investigations, court testimony, and fundraising for the benefit of the department. Performance of duty or service also includes being on call or standby under the orders of the chief or designated officer, except at the individual's home or place of business.

Votes on Final Passage:
House     97   0
Senate    47   0
Effective: June 7, 2006 
Click here for additional information.
Chapter 27, Laws of 2006 (HB 1305) - Authorizing background checks before an authorized emergency vehicle permit is issued.

The WSP's equipment and standards review unit must require a records check of all applicants for an authorized emergency vehicle permit through the WSP and the FBI. The record check is required to include a fingerprint check, and the applicant may be employed on a conditional basis pending completion of the investigation.

Votes on Final Passage:
House     96   0
Senate    46   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 32, Laws of 2006 (HB 2676) - Posting interlocal agreements in an electronic format in lieu of filing with the county auditor.

As an alternative to filing an interlocal agreement with a county auditor, a public agency may list the agreement by subject on its website or other electronically retrievable public source.

Votes on Final Passage:
House      98   0
Senate     49   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 33, Laws of 2006 (SHB 2684) - Allowing vesting after five years of service in the defined benefit portion of the public employees' retirement system, the school employees' retirement system, and the teachers' retirement system plan 3.

The vesting requirement for members of PERS, SERS, and TRS Plans 3 is reduced from 10 years or five years with one year after age 54 to five years of service with one year after age 44.

Votes on Final Passage:
House      97   0
Senate     45   0
Effective:  June 7, 2006  
Click here for additional information.

Chapter 35, Laws of 2006 (SHB 2759) - Authorizing the transfer of certain real property and facilities.

Public bodies may transfer, without further monetary consideration, real property and facilities acquired, constructed, or improved using Referendum 29 or Referendum 37 bonds to nonprofit social service providers, in exchange for the promise to continually operate services benefitting the public on the site, subject to certain conditions. The deed transferring the property must provide for immediate reversion back to the public body if the nonprofit corporation ceases to use the property for the purposes outlined in the act. Transfers may include lease renewals.

The nonprofit corporation is authorized to sell the property transferred to it only if certain conditions are satisfied. Any sale must have the prior written approval by the Department. All proceeds from the sale must be applied to the purchase price of a different property or properties of equal or greater value than the original property. Any new property must be used for the purposes stated in the act. The new property must be available for use within one year of sale. If the nonprofit corporation ceases to use the new property for the specified purposes, the nonprofit corporation must reimburse the public entity for the value of the original property at the time of the sale. If the nonprofit corporation ceases to use the property for the specified purposes, the property and facilities revert immediately to the public body. The public body must determine if the property, or the reimbursed amount in the case of reimbursement, can be used by another social service program as designated by the Department. Such programs will have priority in obtaining the property to ensure the purposes of the original referenda are carried out.

Votes on Final Passage:
House     96   2
Senate    49   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 39, Laws of 2006 (HB 2932) - Establishing a catastrophic disability allowance under the law enforcement officers' and fire fighters' retirement system, plan 2.

A member of the Law Enforcement Officers' and Fire Fighters' Retirement System, Plan 2 (LEOFF 2) who is totally disabled in the line of duty is entitled to a disability allowance equal to 70 percent of final average salary. The total disability benefit is reduced to the extent that in combination with certain workers' compensation payments and Social Security disability benefits, the disabled member would receive more that 100 percent of final average salary. Department of Fish and Wildlife Enforcement Officers' compensation insurance benefits are also reduced for any disability benefits received from LEOFF 2.

Total disability is defined as a member's inability to perform any substantial gainful activity due to a physical or mental condition that may be expected to result in death or last for at least 12 months. Substantial gainful activity is defined as average earnings of more than $860 per month, adjusted annually based on Federal Social Security standards.

The Department of Retirement Systems may require a person to submit to periodic medical examinations and disclose financial records as a condition of continued eligibility. In the event that a totally disabled member's earnings exceed the substantial gainful activity threshold, a member's benefit will be converted to a line-of-duty disability retirement allowance.

Votes on Final Passage:
House     96   0
Senate    40   0
Effective: March 14, 2006  
Click here for additional information.
Chapter 40, Laws of 2006 (ESHB 2951) - Creating a firearms training certificate program for retired law enforcement officers.

A process is created for issuing firearms certificates to retired law enforcement officers who are Washington residents in order to satisfy the certification requirements contained in the federal Law Enforcement Officers Safety Act of 2004.

The Washington Association of Sheriffs and Police Chiefs must develop a firearms certificate form to be used by local law enforcement agencies when issuing firearms certificates to retired law enforcement officers.

A retired law enforcement officer may apply to a local law enforcement agency for a firearms certificate. The law enforcement agency may issue the certificate to the retired officer if the retired officer: (1) has been qualified or otherwise found to meet the standards established by the Criminal Justice Training Commission for firearms qualifications for active law enforcement officers in the state; and (2) has undergone a background check and is not ineligible to possess a firearm. The firearms qualification may be provided either by the local law enforcement agency or by an individual or entity certified to provide firearms training.

The firearms certificate is valid for a period of one year. An applicant for the firearms certificate must pay a fee of $36, plus additional charges imposed by the Federal Bureau of Investigation that are passed on to the applicant. The fee is distributed in the same manner as the fee for a concealed pistol license. The retired law enforcement officer is also responsible for paying the costs of the firearms qualification.

Votes on Final Passage:
House     98   0
Senate    44   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 41, Laws of 2006 (HB 3056) - Allowing second class cities and towns to pay claims by check or warrant.

Second class cities and towns are given the power to adopt a policy on the payment of claims and other obligations, which are payable by warrant or check if the funds are solvent. If the funds are not solvent, warrants must be used as payment. The legislative bodies of second class cities and towns must also designate a depository upon which to draw checks and authorize or require certain officers to sign checks.

The term "warrant" includes checks where allowed by these provisions.

Votes on Final Passage:
House     98   0
Senate    47   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 47, Laws of 2006 (SSB 6359) - Ensuring employers do not evade their contribution rate.

If ESD determines that a significant purpose of transferring a business was to obtain a reduced array calculation factor rate, then one of two actions may occur:

If the successor was an employer at the time the transfer occurred, then the experience rating accounts of all employers are combined into a single account and the employers are assigned the higher of the predecessor or successor array calculation factor rate which takes effect the date of the transfer; or if the successor is not an employer at the time the transfer occurs, then the experience rating account of the acquired business cannot be transferred to the successor and, instead, a new employer rate is assigned.

If ESD assesses a delinquency against an employer, and the delinquency or a part of it is due to an intent to knowingly evade the successorship provisions, then for the rate year in which the Commissioner assesses the delinquency and for the following three rate years, the Commissioner must assign to the employer and to any business knowingly promoting the evasion of successorship provisions, a civil penalty assessment rate in addition to the assigned rate that increases the array calculation factor rate for that rate year to the maximum plus 2 percent, which total rate is not limited by any maximum array calculation factor rate.

The employer may also be criminally prosecuted. An employer subject to the civil penalty assessment must also pay the reasonable costs of auditing the employer's books and collecting the penalty.

A person, not an employer, who knowingly evades, knowingly attempts to evade, or knowingly promotes the evasion of the successorship provisions is subject to a civil penalty of $5000 per occurrence. The person must also pay the reasonable costs of auditing the employer's books and collecting the penalty.

Beginning the January 1st after the transfer occurs, the successor's contribution rate for each rate year will be based on an array calculation factor rate that combines the successor's experience with payrolls and benefits and any experience assigned to the predecessor involved in the transfer. If only a portion of the business was transferred, then the experience attributable to the acquired portion is assigned to the successor if the successor is a "qualified employer," by including the transferred experience. If the successor is not a "qualified employer" the contribution rate will equal the sum of rates determined by the Commissioner as well as the transferred experience.

Beginning the January 1st after the transfer occurs, the predecessor's contribution rate or the array calculation factor rate must be based on its experience with payrolls and benefits excluding the experience of the transferred business or portion of the business transferred.

Votes on Final Passage:
Senate      44   0
House       98   0
Effective:   January 1, 2006  
Click here for additional information.
Chapter 52, Laws of 2006 (SB 6596) - Revising the dissolution of Washington corporations.

Assets of a corporation transferred to a liquidy trust or other successor are not considered to be distributed for purposes of measuring their legality, until the trust or other successor distributes the assets to the shareholders.

A shareholder is personally liable for distributions he or she received while knowing the distribution, or a portion thereof, was made in violation of the WBCA's provisions for distribution, or made in violation of the corporation's articles of incorporation. The shareholder in violation is entitled to contribution from every other shareholder also in violation. A proceeding against the shareholder for the violation must begin within two years of the effective date of the distribution, or within three years after the date of dissolution of the corporation, whichever is earlier.

The board of directors of a corporation may dedicate the corporation's assets to the repayment of its creditors by way of assignment for the benefit of creditors, or receivership.

A majority of initial directors or incorporators may authorize dissolution of the corporation if shares have not been issued. If not prohibited by the articles of incorporation, a majority of the board of directors may authorize dissolution of the corporation without approval of the shareholders if the corporation is not able to pay its liabilities as they become due, the corporation's assets are less than the sum of its liabilities, and if ten or more days have passed since the board gave notice to all shareholders of its intention to dissolve the corporation.

Within thirty days of a voluntary dissolution, the corporation must publish notice of the dissolution and request that persons with claims present them to the corporation in a format prescribed in the initial published notice. The notice must also state that claims not filed in a timely manner may be barred. The corporation's failure to publish its dissolution does not change the effective date of the dissolution.
The corporation may give written notice of dissolution to the holders for claims known to the corporation, stating a general description of the claims or liabilities and stating that the claim may be barred if the claim holder does not respond, and stating that the claim may be rejected, in which case the claim holder will have a limited period of time in which to commence an action to enforce the claim.

As a dissolved corporation winds up its affairs, it may dispose of properties and apply the proceeds to the payment of liabilities, or dispose of the properties with the applicable liens and security interests attached, and within the applicable contractual restrictions. Once dissolved, the board of directors may determine that the payment of outstanding liabilities is provided for by an insurance policy reasonably calculated to provide for payment of the liabilities. Once that determination is made, the board may consider the liabilities satisfied and may make a subsequent distribution of remaining assets to the shareholders.

If the board of directors turns over control of the dissolved corporation to a court or receiver, the directors are relieved from any further duties of liquidating the corporation's assets and satisfying the liabilities.

Directors or shareholders may make decisions necessary to authorize the activities of dissolution.

A dissolved corporation may apply to a superior court for a determination that its proposed satisfaction of a claim or liability is reasonable. The corporation must give notice to the claim holder of such a proceeding. The superior court's determination of the amount and form of satisfaction of a claim satisfies the corporation's obligation with respect to that particular claim and further claims on the same facts are barred.

The holder of an unpaid claim may begin a proceeding against the corporation to collect on the claim. The proceeding may include a petition to collect assets that have already been distributed
to shareholders, and those shareholders may become parties to the proceeding, but the claim holder may not proceed directly against the directors, officers, or shareholders, except in limited circumstances. Claims that are barred by any of the circumstances in this act cannot be enforced against the corporation.

A dissolved corporation may seek supervision by a superior court over its winding up and liquidation. The action must occur in the county where the corporation's registered office is, or was, located. The shareholders or directors need not be made party to the proceeding unless relief is sought against them.

Survival provisions are clarified to make clear that claims arising after filing for dissolution can be asserted against the corporation, and extending the survival period to three rather than two years.

Technical changes are made to various provisions of the WBCA to comport with the new provisions. Grammatical changes are made to various provisions of the WBCA to clarify the law.

Votes on Final Passage:
Senate    41   0
House     98   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 56, Laws of 2006 (ESSB 6896) - Providing for state funding stabilization.
Revised for 1st Substitute: Providing for state funding stabilization. (REVISED FOR ENGROSSED:
Funding state budgetary reserves including an adjustment to the state expenditure limit.)

The Legislature intends to provide for the fiscal stability of the Health Services Account, the Student Achievement Fund, and the state's retirement systems by making appropriations for these purposes.

The Pension Funding Stabilization Account is established for the purpose of making employer contributions to specified state-funded retirement systems, subject to legislative appropriation. Monies in the account will be invested by the State Investment Board, with the investment earnings retained in the account. New supplemental employer contribution rates are established for the purpose of reducing the unfunded actuarial liabilities of plan 1 of the Public Employees' Retirement System and the Teachers' Retirement System. For Fiscal Year 2006, three hundred fifty million dollars is appropriated for this purpose.

For Fiscal Year 2006, two hundred million dollars is appropriated from the state General Fund to the Health Services Account to provide fiscal stability for the account.

For Fiscal Year 2006, two hundred seventy-five million dollars is appropriated from the state General Fund to the Student Achievement Fund to provide fiscal stability for the fund.

The state expenditure limit for Fiscal Year 2006 is declared to be the expenditure limit as adopted at the November 2005 meeting of the Expenditure Limit Committee and adjusted upward to include the appropriations to the Pension Funding Stabilization Account, the Health Services Account, and the Student Achievement Fund. Expenditures from the Pension Funding Stabilization Account are not considered to be a program cost shift under Initiative 601.

The authority of the Legislature to increase state revenues without a two-thirds vote is terminated on June 30, 2006.

Votes on Final Passage:
Senate     25   22
House      51   47
Effective:  March 15, 2006
               July 1, 2006 (Section 10)  
Click here for additional information.
Chapter 59, Laws of 2006 (SSB 6185) - Modifying the family and medical leave act.

Portions of the state Family Leave Law are amended to conform in part to the federal Family and Medical Leave Act.

An employee is entitled to a total of 12 workweeks of leave in a 12 month period for any of the following: the birth of a child; the placement of a child with the employee for adoption or foster care; to care for a family member of the employee, if the family member has a serious health condition; or for a serious health condition that makes the employee unable to perform his or her job duties. The leave entitlement for birth or placement of a child expires at the end of the 12 month period beginning on the date of the birth or placement.

The act applies to all employers in the state, including local governments, which employ 50 or more employees for each working day during each of 20 or more calendar workweeks in the current or preceding calendar year. The provisions of the bill also apply to the state, state institutions and state agencies, regardless of size.

Leave may be taken intermittently or on a reduced leave schedule, with the employer's agreement: for the birth or placement of a child; when medically necessary for the medical treatment of a serious health condition; or to provide care or psychological comfort to an immediate family member with a serious health condition. There is no limit on the size of the increment of intermittent or reduced leave although the employer may limit leave increments to the shortest period of time that the employer's payroll system uses to account for absences or use of leave.
Intermittent or reduced schedule leave cannot result in a reduction of the total amount of leave to which the employee is entitled.

"Serious health condition" is defined in the same manner as in regulations adopted by the federal Secretary of Labor.

If the leave for birth or placement of a child is foreseeable based on the expected birth or placement, the employee must provide the employer with at least 30 days notice before the date leave is to begin. If the birth date or placement makes giving 30 days notice impracticable, then the employee must provide as much notice to the employer as possible.

If leave to care for a family member with a serious health condition or because of the employee's health condition becomes necessary , the employee must make a reasonable effort to schedule the treatment so as to not unduly interrupt the operations of the employer. The employee must also provide the employer notice of leave at least 30 days before leave is to begin, unless impracticable.

An employer may require that a leave request for a family member's serious health condition or the employee's serious health condition be supported by a health care provider's certification. The employee must provide a copy of the certification to the employer in a timely manner. If the employer has reason to doubt the validity of the certification, he or she can request the opinion of a second health care provider.

Any person taking leave under this act is entitled to the following upon return from leave: to be restored to the position he or she held when leave started; or to be restored to an equivalent position with equal benefits, pay and other terms and conditions of employment at a workplace within 20 miles of the employee's workplace when leave commenced. Employees maintain all employment benefits accrued before leave was taken.

During the leave period, if the employee is not eligible to receive employer-paid benefits, the employee may opt to continue the benefits at the employee's expense. The premium paid by the employee cannot exceed 102 percent of the applicable premium for the leave period.

An employer cannot discharge or discriminate against any employee who takes leave under this act.

The director of the Department of Labor and Industries (L&I) is required to investigate any complaint under this act. Any employer found to have violated the act after an investigation is subject to a civil penalty of at least $1000 per violation. These penalties are collected by L&I and deposited into the Family and Medical Leave Enforcement Account, which is created in this act. Employees may also bring suit directly against the employer for violation of this act and could recover damages equal to the amount of wages, benefits, salary or other compensation lost or denied as a result of the violation or any actual monetary losses as a result of the violation up to a sum equal to 12 weeks of the employee's wages or salary.

Employers are required to post notice of the provisions of this act. Willful failure to post this notice could subject an employer to a civil penalty of $100 per violation.

Leave under this act and leave under the federal act are in addition to any sick or temporary disability leave provided because of pregnancy or childbirth. Leave under state law must be taken concurrently with leave under the federal FMLA.

The provision suspending enforcement of the State Family Leave Law is repealed.

Votes on Final Passage:
Senate    37   12
House     54   44
Effective: June 7, 2006  
Click here for additional information.
Chapter 60, Laws of 2006 (ESSB 6189) - Regulating hospitals and ambulatory surgical centers.
Revised for 1st Substitute: Requiring hospitals to provide patients certain billing information.

The Legislature's intent is to encourage hospitals to design the implementation of health information technologies to provide patients with understandable billing information.

Hospitals are required to furnish patients with a list of those professionals that commonly provide care at the hospital and from whom the patient may get a bill, along with appropriate contact information. Hospitals owned or operated by a health maintenance organization are exempt.

Votes on Final Passage:
Senate    42   1
House     96   1
Effective: June 7, 2006  
Click here for additional information.
Chapter 62, Laws of 2006 (SB 6338) - Regarding the property tax exemption for seniors and for persons retired due to disability.

The one-acre limitation on residential property eligible for the senior citizen property tax exemption program is increased to five acres of land if zoning requires this larger parcel size. The bill applies to taxes levied for collection in 2007 and thereafter.

Votes on Final Passage:
Senate      46   0
House       98   0
Effective:   June 7, 2006  
Click here for additional information.
Chapter 63, Laws of 2006 (ESSB 6366) - Concerning preparation and response to pandemic influenza.

To the extent state or federal funds are provided for this purpose, by November 1, 2006, each local health jurisdiction in the state must develop a pandemic flu preparedness and response plan consistent with the requirements and performance standards established by the state Department of Health (DOH) and the United States Department of Health and Human Services. Each plan is to be based on an initial assessment by the local health jurisdiction of its existing response capacity, and is to be developed in consultation with appropriate public and private sector partners. At a minimum, a plan must prioritize and address a list of issues enumerated in the bill, including public education, disease surveillance, communications' systems, vaccination protocols, and strategies to maintain health care and other essential community services.

DOH will provide technical assistance and distribute funds, based on a predetermined formula, to support local health jurisdictions in developing their plans. Upon receipt of a plan meeting its established requirements and standards, DOH will provide additional funds and assistance to support implementation of the identified preparedness and response activities. At least biannually, DOH is to assess the compliance of each local jurisdiction with its requirements and standards for pandemic flu preparedness.

Votes on Final Passage:
Senate    47   0
House     98   0   (House amended)
Senate               (Senate refused to concur)
House     98   0   (House amended)
Senate    44   0   (Senate concurred)
Effective: June 7, 2006  
Click here for additional information.
Chapter 76, Laws of 2006 (SHB 2715) - Regarding the state interoperability executive committee.

New responsibilities are outlined for the Committee. The Committee is charged with coordinating the purchasing of all state wireless radio communications system equipment to ensure that, at a minimum: (1) any new trunked standard, after the transition from a radio over internet protocol network, is P-25; (2) any new system that requires advanced digital features is P-25; and (3) any new system or equipment purchases are upgradeable to P-25 standards.

Votes on Final Passage:
House     93   2
Senate    42   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 82, Laws of 2006 (SHB 3120) - Concerning notice requirements for tort claims against state and local governments and their officers, employees, or volunteers.

The claim filing statutes that apply to tort claims against the state or local governments are amended to specifically provide that these statutes apply to claims against officers, employees, or volunteers of the state or local government when acting in that capacity.

A local governmental entity that fails to comply with its duty to designate and record an agent to receive claim filings is precluded from raising a defense under the claim filing statute.

Votes on Final Passage:
House      97   0
Senate     46   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 87, Laws of 2006 (SSB 6168) - Regulating business development companies and the participation of financial institutions and nondepository lenders in economic development within the state.

"Business Development Corporations" are established in statute, to promote economic development in Washington State. Minimum requirements for incorporation are set forth, along with specific, expanded corporate powers, and corporate governance standards.

The Department of Financial Institutions (DFI) has broad regulatory oversight and rulemaking authority. DFI performs confidential examinations to ensure safety and soundness, and sets standards for capital, surplus, and investment caps.

Technical details regarding transparency and ratification of insider transactions, treatment of insolvency and liquidation, mergers, and conversion to limited liability corporations are set forth, in an effort to maintain regulatory parity with the treatment of state chartered commercial banks.

Votes on Final Passage:
Senate     47   0
House      97   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 88, Laws of 2006 (EHB 3192) - Authorizing a contract extension for reimbursement by property owners for street, road, and water or sewer projects.

Subject to specified conditions, contracts by cities, towns, or water-sewer districts requiring pro rata reimbursement to a property owner for funding excess infrastructure capacity may be of a duration exceeding 15 years. However, the contract extension may not exceed the duration of pertinent legal constraints restricting applications for new development within the area benefitted by the excess infrastructure capacity.

Votes on Final Passage:
House     98   0
Senate    45   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 91, Laws of 2006 (HB 3156) - Creating a pilot program to assist low-income families.

Asset Building Program
The Department of Community, Trade, and Economic Development (CTED) must offer consulting services to Community Action Agencies who are interested in developing pilot programs to assist low-income families to accumulate assets. The Community Action Agencies are encouraged to facilitate bringing together community partners to determine the asset building programs to initiate within the community.

"Asset" or "asset building" is defined to mean an investment or saving for an investment in a family home, higher education, small business, or other long-term asset that will assist low-income families to attain greater self-sufficiency.

The CTED must select four pilot sites to whom it will offer consulting services, with at least one of the pilot sites located in eastern Washington. The CTED will select the pilot sites through an application process which must begin by July 31, 2006.

A Community Action Agency may submit an application to be selected as a pilot site. The application must include the following:
  • identification of the local agency that will be the lead agency for the pilot program;
  • identification of the community partners with whom the Community Action Agency will be collaborating and a description of how the lead agency will work with community partners to implement the program activities;
  • identification of the areas of potential need based upon input from the community partners. Areas of potential need may include financial literacy, assistance with federal income tax preparation and the use of tax credits, the use of individual development accounts, and other asset-building strategies; and
  • identification of the resources within the community that might support training for the implementation of the selected best practices chosen to address the needs identified by the community.

The CTED must report to the Legislature by December 1, 2007, on the progress of the implementation of the program including the application process, the status of the program, and any implementation issues that arose while initiating the program.

Earned Income Tax Credit
To the extent funding is appropriated, the CTED must establish a program to create an outreach campaign to increase the number of eligible families who claim the federal Earned Income Tax Credit. The CTED may work collaboratively with other state agencies, private and nonprofit agencies, local communities, and others with expertise that might assist the CTED in implementing the program.

Expiration Date
The asset building and Earned Income Tax Credit programs expire on January 1, 2008.

Votes on Final Passage:
House     93   5
Senate    48   0   (Senate amended)
House     96   1   (House concurred)
Effective: June 7, 2006  
Click here for additional information.

Chapter 97, Laws of 2006 (HB 3041) - Modifying voter registration timelines.

The option by which an elector may transfer his or her registration within 15 days of an election is removed.

Votes on Final Passage:
House     98   0
Senate    48   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 100, Laws of 2006 (HB 2972) - Determining community rates for health benefit plans.

Health benefit plans may be offered to individuals who are part of a purchasing pool consisting of 500 people in the same industry. The plans will allow contributions from more than one employer and will have premiums calculated using an adjusted community rating method that spreads financial risk across the entire purchasing pool the individual belongs to. This act will not be implemented until a federal opinion is received by the Insurance Commissioner that the provisions of this act comply with federal law.

Votes on Final Passage:
House     98   0
Senate    44   0   (Senate amended)
House     95   0   (House concurred)
Effective: June 7, 2006  
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Chapter 105, Laws of 2006 (2SHB 2498) - Establishing an industry cluster-based approach to economic development.

The Department of Community, Trade and Economic Development (DCTED) must work with industry associations and organizations to identify regional and statewide industry clusters. This includes conducting focus groups, supporting industry cluster associations, and providing methods of economic communication and information among the firms within an industry cluster. The regional and statewide industry clusters may include aerospace, agriculture, food processing, forest products, business services, financial services, health and biomedical, software, digital and interactive media, transportation and distribution, and microelectronics.

In addition to the groups the DCTED works with currently, the DCTED is directed to work with industry and cluster associations as well as federal and state industries in developing industry cluster-based economic development strategies. In developing industry-cluster based strategies, the DCTED must continue to use information gathered in each service delivery region. The DCTED may conduct focus group discussions and studies, support the formation of industry cluster associations, and provide methods for communication among firms within the industry clusters. The DCTED must also work with industry clusters, private organizations, local governments, local economic development organizations, and higher education and training institutions to develop strategies to strengthen Washington's industry clusters. On a continual basis the DCTED must evaluate the potential returns to the state from devoting additional state resources to an industry cluster-based approach to economic development.

A competitive grant program is created to assist communities to develop, in partnerships, regional economic development and industry cluster strategies and to conduct related cluster market strategies. In administering the grant program, the DCTED must work with an industry cluster advisory committee. This advisory committee must have equal representation from the Workforce Training and Education Coordinating Board, the State Board for Community and Technical Colleges, the Employment Security Department, business, and labor. The industry cluster advisory committee shall recommend criteria for evaluating applications for grant funds and recommend applicants for the grant awards. Grant applicants must include organizations from at least two counties and may include local government, economic development councils, federally recognized Indian tribes, workforce development councils, and educational institutions. Applicants should also include participants from the local business community. Financial participation of the partner organizations is required.

A grant award may be up to $100,000 per applicant, except for King, Pierce, Snohomish, and Kitsap counties, who may not receive more than $100,000 combined. The grant may be used to fund organizational activities necessary to develop the partnership's regional economic development and industry cluster strategies. It may also be used for related marketing strategies. Only 10 percent of the money appropriated for the competitive grant program may be used by the DCTED for administrative costs. The grant program expires June 30, 2007.

Votes on Final Passage:
House     96   2
Senate    41   6   (Senate amended)
House     95   2   (House concurred)
Effective: June 7, 2006  
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Chapter 111, Laws of 2006 (SHB 2670)Authorizing hospital benefit zone financing.

Counties, cities and towns may finance certain public improvements within a defined area using revenue generated through a new sales and use tax, up to $2 million per project per year, credited against the state sales and use tax, and matched with an equivalent amount of local resources. The defined area, called a benefit zone, must include a hospital that has received a certificate of need.

The public improvements that may be financed with hospital benefit zone financing include the same infrastructure projects for which community revitalization financing may be used, such as street construction and park facility improvements.

Conditions under which hospital benefit zone financing may be utilized are enumerated. Several are analogous to those under the community revitalization program, concerning the adoption of an ordinance, the expectation that the improvement will encourage private development, and the expectation that any related private developments will be consistent with the local comprehensive plan. In addition, in order to use hospital benefit zone financing, the public development must be expected to support a hospital that has received a certificate of need, as well as to increase private investment, employment, and local retail sales and use taxes within the zone.

To create a benefit zone, a local government must obtain a written agreement from another local government that imposes local sales and use tax within the zone, if the other local government opts to participate in hospital benefit zone financing. The sponsoring jurisdiction must hold a public hearing on the proposal and provide notification of the proposal through a local newspaper. The jurisdiction must then adopt an ordinance establishing the zone, with a description of the physical boundaries, expected costs of the improvements, and estimates of expected tax revenue allocated to the purpose of hospital benefit zone financing.

A local government that creates a hospital benefit zone may allocate excess excise taxes received by it from taxable activity within the zone for the purposes of financing public improvements. The excess excise tax is the amount of local sales and use taxes received by a local government within the zone over and above the amount received there during the base year. The base year is the calendar year immediately after the creation of the zone and the measurement year is a calendar year, beginning with the calendar year following the base year, that is used annually to measure the amount of excess excise taxes to be used to finance the public improvement costs. If a local government demonstrates that no retail activity occurred in the area represented by the zone in the 12 months before the creation of the zone, then all local sales and use taxes collected after the zone was created are considered excess excise taxes.

A local government that utilizes hospital benefit zone financing and receives approval from the Department of Revenue (Department) may impose a new local sales and use tax. The tax is imposed at a 6.5 percent rate and is credited against the full amount of the state sales tax. The tax may be first imposed on July 1, 2007. Imposition of the tax is contingent upon receipt of local excess excise taxes in the prior calendar year, and the tax may no longer be imposed when the bonds that are issued are retired. The tax must be suspended each fiscal year when the amount collected during the fiscal year equals either the amount of local excess excise taxes, and after local matching funds, the amount of state sales and use taxes collected in the measurement year over and above the amount in the base year, or $2 million. Money from the new local tax must be used for the sole purpose of principal and interest payments on bonds issued for an eligible public improvement within the zone and must be matched with an amount from local public sources dedicated through December 31 of the previous calendar year. Local public sources can include private monetary contributions as well as excess excise taxes.

The Department must approve the amount of the sales and use tax that an applicant may impose, but no more than $2 million per applicant. The aggregate statewide limit for credit against the state sales and use tax is $2 million per year.

The local government that utilizes the new financing tool may issue revenue bonds to pay for the public improvements. The terms and conditions are the same as for the revenue bond authority under community revitalization financing.

The local government utilizing the new sales and use tax must provide an annual report to the Department by March 1 of each year. The report must include an accounting of revenues allocated for the purposes of the program, as well as business, employment, and wage information pertaining to the benefit zone. The Department must make a report available to the public and the Legislature by June 1 of each year, based on information received from participating local governments.

Votes on Final Passage:
House     94   1
Senate    46   2
Effective: July 1, 2006  
Click here for additional information.
Chapter 119, Laws of 2006 (SHB 2812) - Modifying school district levy provisions.
Revised for 1st Substitute: Increasing the levy base for school districts.

The temporary increase in districts' levy bases provided in 2004 is extended for levy collections through calendar year 2011.

From January 1, 2006, until December 31, 2006, levy equalization allocation and maximum eligibility will be reduced by 4.37 percent of what it otherwise would be. Beginning with calendar year 2007, allocations and maximum eligibility for levy equalization will be fully funded at 100 percent and will not be reduced.

Votes on Final Passage:
House      62   36
Senate     48    0   (Senate amended)
House      98    0   (House concurred)
Effective:  June 7, 2006  
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Chapter 121, Laws of 2006 (SHB 2446) - Permitting certain school district substitute employee contracts.

An officer of a second class school district with fewer than 200 full time students may enter into an employment contract as a substitute teacher or substitute educational aide. The terms of the contract must be commensurate with the pay plan or collective bargaining agreement applicable to the district. In addition, before a school district officer may be employed as a substitute teacher or teacher's aide, the board of directors of a second class school district must make a formal finding that there is a shortage of substitute teachers in the school district.

Votes on Final Passage:
House     95   1
Senate    47   0
Effective: June 7, 2006  
Click here for additional information.
Chapter 125, Laws of 2006 (SSB 6775) - Creating the crime of criminal trespass against children.

A person working for any public or private facility, the primary purpose of which, at any time, is to provide for the education, care, or recreation of a child or children, may order certain persons from the premises of the facility. The class of persons subject to ejection from public facilities or private businesses is limited to persons who are not currently under Juvenile Rehabilitation Administration (JRA) supervision or serving a Special Sex Offender Disposition Alternative (SSODA) suspended sentence and who are Level II and Level III offenders.

The person who works at the facility must give the person ordered to leave a written notice, informing him or her that he or she must leave and may not return without the written permission of the facility.

If the person who has been ordered to leave refuses to leave or comes back another time, that person may be charged and prosecuted for the crime of criminal trespass against children, a Class C felony, ranked at a Level IV seriousness level for sentencing purposes. The types of facilities that may prohibit a person from entry include, but are not limited to, community and recreational centers, playgrounds, schools, swimming pools, and state or municipal parks.

An owner, employee, or agent of the facility is not liable for any act or omission in connection with ordering persons in the class of offenders covered by the bill to leave the facility or failing to eject covered offenders from covered entities.

The bill contains a legislative intent section and an emergency clause.

Votes on Final Passage:
Senate     44   4
House      91   7   (House amended)
Senate     47   0   (Senate concurred)
Effective:  March 20, 2006  
Click here for additional information.
Chapter 129, Laws of 2006 (SSB 6519) - Requiring sex offenders to verify twice a year that registration information is accurate.
Revised for 1st Substitute: Requiring level III sex offenders to report to law enforcement every three months. (REVISED FOR PASSED LEGISLATURE: Requiring level II and III sex offenders to report in person every ninety days.)

Persons classified by the End of Sentence Review Commission or the county sheriff as either a Level II and Level III sex offender must report to the county sheriff's office, in person, every 90 days during normal business hours. A person may petition the superior court in the county where he or she lives or reports to be relieved of the duty to report every ninety days. The court must grant the petition if the petitioner can show that he or she has complied with the reporting requirement for a period of at least five years and has not been convicted of a criminal violation for failure to register for at least five years and if the court determines that the reporting no longer serves a public safety purpose.

The county sheriff may take a photograph at any time to update the registered person's file.

Votes on Final Passage:
Senate     47   0
House      98   0   (House amended)
Senate                (Senate refused to concur)
House      98   0   (House amended)
Senate     49   0   (Senate concurred)
Effective:  June 7, 2006
               September 1, 2006 (Section 2)  
Click here for additional information.
Chapter 142, Laws of 2006 (SHB 1523) - Extending a sales and use tax exemption to the construction of new facilities to be used for the conditioning of vegetable seeds.
Revised for 1st Substitute: Extending a sales and use tax exemption to the construction of new facilities to be used for the conditioning of vegetable seed.

The definition of "manufacturing" for purposes of the rural county/distressed area sales and use tax deferred is expanded to include the conditioning of vegetable seed.

Votes on Final Passage:
House     98   0
Senate    43   5   (Senate amended)
House     97   1   (House concurred)
Effective: July 1, 2006  
Click here for additional information.
Chapter 146, Laws of 2006 (SHB 2908) - Modifying the boundary provision for Island county.

The statutory boundary descriptions for Island County are revised to include Strawberry, Baby, Minor, and Kalamut Islands. The description for Smith's Deception is revised to Smith Island and Deception Island, and Ure is renamed to Ben Ure Island.

Votes on Final Passage:
House      98   0
Senate     46   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 147, Laws of 2006 (SHB 2917) - Identifying accessory uses on agricultural lands.
Revised for 1st Substitute: Identifying accessory uses on agricultural lands. (REVISED FOR PASSED LEGISLATURE: Regarding accessory uses on agricultural lands.)

Counties and cities are provided with greater flexibility with respect to the implementation of agricultural zoning schemes governing the use of agricultural lands of long-term commercial significance. This increased flexibility is accomplished through the removal of many specified restrictions on accessory uses and replacing them with more permissive general guidelines governing the types of accessory uses that may be conducted on designated agricultural lands. An example of this shift is the elimination of the requirement that accessory uses be functionally related to the growing of crops or raising of animals and replacing it with a more general standard requiring that such uses support the continuation of the agricultural use of the property and neighboring properties. In addition, the guidelines created by the act explicitly distinguish "agricultural accessory uses" from "nonagricultural accessory uses."

Authorized "agricultural accessory uses" may include, but are not limited to, the following:
  • the storage, distribution, and marketing of regional agricultural products; and
  • the production, marketing, and distribution of value-added agricultural products, including the support services necessary to facilitate these activities.

"Nonagricultural accessory uses" are permitted provided they are consistent with the size, scale, and intensity of the existing agricultural use of the property and the existing buildings on the site. However, nonagricultural accessory uses and related development may not: (1) be located outside the general area already developed for buildings and residential uses; or (2) convert more than one acre of agricultural land to nonagricultural uses.

The list of specifically authorized types of commercial or retail accessory uses is eliminated.

Votes on Final Passage:
House      98   0
Senate     45   1   (Senate amended)
House      97   0   (House concurred)
Effective:  June 7, 2006  
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Chapter 149, Laws of 2006 (ESHB 2984) - Authorizing cities, towns, and counties to implement affordable housing incentive programs.

Affordable Housing Incentive Programs - General Provisions
Jurisdictions fully planning under the GMA may enact or expand affordable housing incentive programs (incentive programs) providing for the development of low-income housing units through development regulations. Incentive programs may include, but are not limited to, provisions pertaining to:

  • density bonuses within the UGA;
  • height and bulk bonuses;
  • fee waivers or exemptions;
  • parking reductions;
  • expedited permitting, conditioned on the provision of low-income housing units; or
  • mixed use projects.

Jurisdictions may enact or expand incentive programs whether or not the programs impose a tax, fee, or charge on the development or construction of property. If a developer chooses not to participate in an incentive program, a jurisdiction may not condition, deny, or delay the issuance of a qualifying permit or development approval, absent incentive provisions of the program.

Enacted or expanded incentive programs must satisfy numerous requirements, including:

  • requiring incentives or bonuses to provide for the construction of low-income housing units;
  • obligating jurisdictions to establish standards for low-income renter or owner occupancy housing, including guidelines that are consistent with local needs, to assist qualifying low-income households;
  • requiring jurisdictions to establish, and allowing jurisdictions to adjust, a maximum rent level or sales price for low-income housing units developed under an incentive program;
  • requiring low-income housing units to be provided in a range of sizes and to conform to more general provisions pertaining to numbers of bedrooms, distributions of units throughout buildings, and functionality;
  • requiring low-income housing units developed under an incentive program to be committed to continuing affordability for no fewer than 50 years; and
  • requiring measures to enforce continuing affordability and income standards for low-income units constructed under an incentive program.

Other requirements for enacted or expanded incentive programs are specified. Incentive programs may apply to all or part of a jurisdiction, and differing standards may be applied within a jurisdiction. Jurisdictions may modify incentive programs to meet local needs and may include qualifying provisions or requirements not expressly authorized. Additionally, jurisdictions may accept payments in lieu of continuing affordability.

Low-income housing units are encouraged to be located within market-rate housing developments for which a bonus or incentive is provided. Incentive programs may allow units to be located in adjacent buildings and may allow payments of money or property in lieu of providing low-income housing units if the payment equals the approximate cost of developing the same number and quality of housing units that would otherwise be developed. Jurisdictions accepting these payments must use the funds or property to support the development of low-income housing, including support through loans or grants to public or private recipients.

Application of Incentive Programs
Enacted or expanded incentive programs may be applied within jurisdictions to address the need for increased residential development. The application of incentive programs must be consistent with local growth management and housing policies and must comply with specific requirements obligating jurisdictions to:

  • identify certain land use designations within a geographic area where increased residential development will assist in achieving local growth management and housing policies;
  • provide increased residential development capacity through zoning changes, bonus densities, height and bulk increases, parking reductions, or other regulatory changes or incentives; and
  • determine that increased residential development capacity or other incentives can be achieved within an identified area, subject to the consideration of other regulatory controls on development.

Additionally, jurisdictions may establish a minimum amount of affordable housing that must be provided by all residential developments constructed under revised regulations, subject to incentive program requirements.

Income Requirements
Low-income households are defined for renter and owner occupancy incentive program purposes as follows:

  • Rental housing units must be affordable to and occupied by households with an income of no more than 50 percent of the county median family income, adjusted for family size.
  • Owner occupancy housing units must be affordable to and occupied by households with an income of no more than 80 percent of the county median family income, adjusted for family size.

The legislative body of a jurisdiction may establish higher or lower income levels, subject to public hearing and other requirements. Legislatively-established higher income levels must be considered "low-income" for the purposes of incentive programs.

Excise Taxes
Nothing in specified excise tax preemption provisions limits the authority of counties, cities, or towns to implement qualifying incentive programs, nor to enforce agreements made pursuant to these programs.

Votes on Final Passage:
House      60   38
Senate     47    0    (Senate amended)
House      58   39   (House concurred)
Effective:  June 7, 2006  
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Chapter 166, Laws of 2006 (SHB 2867) - Regarding expansion of WSU Tri-Cities into a four-year institution.

The WSU Tri-Cities is directed to examine resources available at the Pacific Northwest National Laboratory and to develop a plan regarding: (1) areas of need in higher education that exist in southeastern Washington, and (2) how WSU Tri-Cities may best develop into a four-year institution. The WSU Tri-Cities must submit its plan to the Legislature by November 30, 2006.

Beginning in the fall of 2007, WSU Tri-Cities may admit lower-division students directly into programs beyond the biotechnology field that were identified in the campus' plan as being in high need in southeastern Washington. Any new programs must be approved by the HECB. By adding new programs and admitting lower division students, WSU Tri-Cities is directed to develop into a four-year institution.

Votes on Final Passage:
House      97   1
Senate     44   0
Effective:  June 7, 2006  
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Chapter 169, Laws of 2006 (E2SSB 6581) - Regarding water resource management in the Columbia river basin.
Revised for 2nd Substitute: Regarding water resource management in the Columbia river basin. (REVISED FOR PASSED LEGISLATURE: Regarding a study of the instream flows of the Hanford Reach.)

Two hundred fifty thousand dollars of the state building construction account-state appropriation for fiscal year 2007 is provided to the Department of Ecology to work with interested parties in studying instream flows in the Hanford Reach and the impact of flows on the ecological condition of the Hanford Reach as it relates to studying the needs of salmon and steelhead. The Department must report its findings by July 1, 2007.

The $250,000 is part of the $12 million of bonds appropriated in 2005 for watershed planning and instream flows and is not a new appropriation.

Votes on Final Passage:
Senate     49   0
House      98   0
Effective:  June 7, 2006  
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Chapter 170, Laws of 2006 (SB 6861) - Requiring a study of competing interests of domestic water users.

DOE must provide a report to the Legislature on the issues surrounding competing users of surface water in areas where domestic water use has been curtailed by a court order. DOE must also suggest legislation or other solutions for resolving conflicts over limited water resources.

The study is to include information regarding residential water uses and the circumstances surrounding the competition between domestic uses and all other uses. The study is limited to basins currently involved in a water rights adjudication and is to focus on collection of information for seasonal residential uses.

Votes on Final Passage:
Senate     47   0
House      98   0
Effective:  June 7, 2006  
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Chapter 171, Laws of 2006 (E3SHB 2939) - Establishing the energy freedom program.

Energy Freedom Program
The Energy Freedom Program is established within the Department of Agriculture. The stated legislative purpose of the Energy Freedom Program is to develop a viable bioenergy industry, to promote public research and development in bioenergy sources and markets, and to support a viable agriculture industry to grow bioenergy crops.

Criteria for Awarding Financial Assistance
The Department of Agriculture, in cooperation with the Department of Community, Trade, and Economic Development, may award financial assistance to an applicant if the Director of the Department of Agriculture finds that:
  • the project will convert farm products or waste directly into electricity or fuel or other coproducts associated with such conversion;
  • the project demonstrates technical feasibility and directly assists in moving a commercially viable project into the marketplace;
  • the facility will produce long-term economic benefits to the state;
  • the project does not require continuing state support;
  • the assistance will result in jobs or higher incomes for the citizens of the state;
  • the state is provided an option to purchase a portion of the fuel or feedstock to be produced by the project;
  • the project will increase energy independence or diversity;
  • the project will use feedstocks produced in the state, if applicable;
  • any product produced by the project will be suitable for its intended use, meet accepted national or state standards, and will be stored in a safe and environmentally sound manner; and
  • the application provides for adequate financial reporting.

If the project is a research and development project, it must be independently reviewed by a peer review committee and the findings of that review must be provided to the director of the Department of Agriculture.

Contractual Agreements
The Director of the Department of Agriculture must enter into agreements with approved applicants. The agreement must include provisions to protect the state's investment, including a requirement that the applicant enter into contracts with any partners that may be involved in the use of the financial assistance provided under this program.

Limitations
The Director of the Department of Agriculture may award assistance in an amount of up to $5 million, provided that the assistance does not constitute more than 50 percent of the total project funding. The Director may suspend or cancel its financial assistance if a recipient fails to make reasonable progress towards completing a project, or the recipient has made misrepresentations in any information furnished to the director in connection with the project.

Energy Freedom Account
The Energy Freedom Account (Account) is created in the State Treasury. Funds from the Account may only be spent after appropriation. Expenditures may be used only for assistance for projects that are consistent with this act. Administrative costs may not exceed 3 percent of the total funds available for the Energy Freedom Program.

Any funds remaining in the Account after June 30, 2016, will revert to the State General Fund.

Report
The Director must report to the Legislature and to the Governor on an annual basis on the status of the Energy Freedom Program.

Public Disclosure
Financial and commercial information supplied by applicants under this act is exempt from public disclosure.

The Act expires on June 30, 2016.

Votes on Final Passage:
House      68   30
Senate     48    0    (Senate amended)
House      66   29   (House concurred)
Effective:  June 6, 2006
               July 1, 2006 (Sections 8 and 10)  
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Chapter 172, Laws of 2006 (SHB 2457) - Providing excise tax relief for farm machinery and equipment.
Revised for 1st Substitute: Authorizing sales and use tax exemptions for replacement parts for farm machinery and equipment.

Farmers with annual gross sales of agricultural products of $10,000 or more are exempt from sales and use tax on the purchase of replacement parts for farm machinery and equipment. The exemption covers machinery and equipment designed for the purpose of growing, raising, or producing agricultural products. Farmers must apply with the Department of Revenue for an exemption certificate. The certificate must be renewed every five years. The exemption includes parts for farm tractors and farm implements but not other farm vehicles. Replacement parts for aircraft, hand tools, hand-powered tools, and equipment with a useful life of less than one year are not included.

Votes on Final Passage:
House      86   10
Senate     40   4   (Senate amended)
House      95   0   (House concurred)
Effective:  July 1, 2006  
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Chapter 175, Laws of 2006 (SHB 2414) - Regarding Washington's academic assessment system.
Revised for 1st Substitute: Regarding local control and flexibility in the state assessment system.

Before the beginning of the 2006-07 school year, the SPI must request flexibility under the NCLB to conduct a pilot project with no more than six school districts using an assessment other than the WASL in grades three, five, six, and eight in mathematics and reading. The SPI will work with local school directors, administrators, teachers, and parents in developing the request and selecting the assessment. The districts in the pilot project must be of varying sizes and geographic locations, including urban, suburban, and rural areas. They must also enroll ethnically and economically diverse student populations.

If the request for flexibility is granted, the SPI will revise the state accountability plan to incorporate the pilot project. School districts in the pilot project will not be required to administer the WASL in reading and mathematics in grades three, five, six, and eight during the pilot. At the end of the pilot project, the SPI will evaluate whether the piloted assessment can be used on a statewide basis and forward findings and recommendations to the Legislature and the U.S. DOE.

Votes on Final Passage:
House      97   1
Senate     48   0
Effective:  June 7, 2006  
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Chapter 177, Laws of 2006 (HB 2466) - Providing excise tax relief for aerospace businesses.

The sales and use tax exemption for computer equipment and software used primarily in commercial airplane development is extended to nonmanufacturing firms. Installation is also exempt. The exemption starts July 1, 2006, and ends July 1, 2024.

The B&O tax credit for preproduction development expenditures related to commercial aircraft is extended to nonmanufacturing firms. The credit is equal to 1.5 percent of preproductions development expenditures. The credit starts July 1, 2006, and ends July 1, 2024.

The B&O tax credit for property taxes paid on property used in the manufacture of commercial airplanes and airplane components is expanded to include leasehold excise taxes. The credit starts January 1, 2007.

The reduced B&O tax rate for FAA certificated repair stations engaged in the repair of equipment used in interstate or foreign commerce is extended to July 1, 2011. The tax rate is set at 0.2904 percent.

Businesses that claim the 1.5 percent B&O tax credit for commercial aircraft preproduction development expenditures or the reduced B&O tax rate must electronically file an annual survey with the Department of Revenue (Department) by March 21. The Department may provide a filing extension if the survey is late due to circumstances beyond the control of the taxpayer.

The survey must include employment, wage, and employer-provided health and retirement benefit information. Those claiming the 1.5 percent B&O tax credit for aerospace product development expenditures must also provide information on the expenditures, assignment of the credit, and the number of research projects, products, patents, copyrights, and trademarks. The only information collected that may be disclosed is the amount of the tax incentive claimed, but claimants receiving incentives of less than $10,000 may request confidentiality of the amount claimed.

The Department must report summary statistics from the surveys annually. When taxpayer information cannot be classified to prevent the identification of individual taxpayers or returns, the Department may disclose the least amount of tax information necessary to complete the reports. Reports on the effectiveness of the incentives are due in 2010 and 2023.

Votes on Final Passage:
House      88   10
Senate     36    7   (Senate amended)
House      95    3   (House concurred)
Effective:  July 1, 2006
               January 1, 2007 (Sections 10 and 11)  
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Chapter 181, Laws of 2006 (E2SHB 2673) - Providing tools for local infrastructure financing.
Revised for 2nd Substitute: Authorizing additional alternatives for local infrastructure financing.

The local infrastructure financing tool (LIFT) program is created to assist local government promote economic development. The LIFT will be available for selected public improvement projects designed to increase private development in the area and that will utilize increased property tax revenues, excess excise tax revenues and revenues generated through a sales and use tax credited against the state sales and use tax in the revenue development area (RDA) to finance the improvements. An RDA must be comprised of contiguous tracts, lots, pieces or parcels of land and have less than $1 billion in assessed value for the taxable real property within the RDA. The average assessed value per square foot of the taxable land within the RDA may not exceed $70 per square foot. In addition, an RDA may not comprise more than 25 percent of the total assessed value of the taxable real property within the boundaries of the local government creating the RDA. Boundaries of an RDA may not be drawn in such a way as to purposely exclude parcels where economic development is unlikely to occur. A county may only have one RDA within its boundaries. Once created, the boundaries of the RDA may not be changed and may not include any part of an increment area created under Community Revitalization Financing (CRF), unless the CRF increment area was created prior to January 1, 2006.

LIFT Projects
LIFT Projects are approved by the Community Economic Revitalization Board (CERB), in consultation with the Department of Revenue (DOR) and the Department of Community, Trade, and Economic Development. However, demonstration projects must be approved prior to any other application. The demonstration projects are the Bellingham redevelopment project ($1M per year), the Spokane River district project ($1M per year), and the Vancouver Riverwest project ($500K per year). The CERB will apply the following criteria to the remainder of the projects: the project's potential to enhance the sponsoring local government's regional and/or international competitiveness; the project's ability to encourage mixed use development and the redevelopment of a geographic area; achieving an overall distribution of projects statewide that reflect geographic diversity; the estimated wages and benefits for the project is greater than the average labor market area; the estimated state and local net employment change over the life of the project; the estimated state and local net property tax change over the life of the project; and the estimated state and local sales and use taxes increase over the life of the project.


Public Improvements
The LIFT must be used to finance public improvements, including: street, bridge and road construction, and maintenance; water and sewer system construction and improvements; sidewalks, traffic controls, and streetlights; parking, terminal, and dock facilities; park and ride facilities; park facilities and recreational areas; storm water and drainage management systems; and affordable housing. The LIFT may not be used to finance public stadiums currently funded by a public facilities district. The LIFT must be used for public improvements identified within the capital facilities, utilities, housing, or transportation elements of a comprehensive plan required by the Growth Management Act (GMA), except public improvements that are considered historical preservation activities. It must be expected to encourage private investment within the RDA and to increase the fair market value of real property within the RDA. The public improvement costs may include the costs of: design, planning, acquisition, site preparation, construction, reconstruction, rehabilitation, improvement and installation of public improvements; demolishing, relocating, maintaining, and operating of property pending construction of the public improvements; the costs of financing the public improvements; assessment incurred in revaluing real property and apportioning the taxes in the RDA; and reasonably related administrative costs and feasibility studies.

Creating a Revenue Development Area
The sponsoring local government must have entered or expects to enter into an agreement with a private developer or have received a letter of intent from a private developer relating to the developer's plans for private improvements within the RDA. Such private development must be consistent with the countywide planning policy adopted by the county and the local government's comprehensive plan. The sponsoring local government must make findings that the LIFT is not expected to be used for the purpose of relocating a business from Washington, located outside the RDA, into the RDA, and it will improve the viability of existing business entities within the RDA. In addition, it must find that the RDA is in need of economic development or redevelopment. The local government must also find that the public improvements financed in whole or in part with the LIFT are reasonably likely to:
(1)   increase private investment within the RDA;
(2)   increase employment within the RDA;
(3)   generate, over the period of time that the local sales and use tax will be imposed, state and local property and sales and use tax revenues that are equal or greater than the respective state and local contributions made under this program; and
(4)   improve the viability of existing communities and increase private residential and commercial investment within the RDA.

Prior to adopting an ordinance creating an RDA, the sponsoring local government must obtain written agreement from any participating local governments and participating taxing districts to use dedicated amounts of revenues from their local public sources, local excise tax allocation revenues, and local property tax allocations for LIFT. The governing body of each participating local government and taxing district must authorize its participation. The sponsoring local government planning to create an RDA must also estimate the impact of the RDA on small business and low-income housing and develop a mitigation plan for the impacted businesses and housing. The ordinance must describe the public improvements, the boundaries of the RDA, estimate the cost of the public improvements and the portion of these costs to be financed by the LIFT, estimate the time during which regular property taxes and excess excise taxes are to be used to finance the public improvement costs, provide the date when the apportionment of the taxes will begin, and make a finding that all conditions necessary to create an RDA are met.

If a local government has created an increment area under the CRF prior to January 1, 2006, and has not issued bonds, it may convert the increment area to an RDA so long as it amends the local government ordinance and complies with all the requirements of this act.

A public hearing must be held by the sponsoring local government at least 30 days before passage of the ordinance establishing the RDA. The public hearing may be held either by the governing body of the sponsoring local government or by a committee of that body comprising at least a majority of the whole governing body. Notice of the public hearing on the proposed ordinance creating the RDA must be sent by U.S. mail to all property owners and business enterprises located within the proposed RDA at least 30 days prior to the hearing. The local government must consult with business organizations and ethnic associations to develop methods of notice that ensure that appropriate notice is provided to the business enterprises and property owners for whom English is a second language.

Local Property Tax Allocation Revenue Value
The property tax allocation revenue value is 75 percent of any increase, over the tax allocation base value, in the assessed value of real property in an RDA that is placed on the assessment roles after the RDA is created. In calculating the regular property tax allocation revenue value, regular property taxes levied by voters for a specific purpose is not to be included. Tax allocation base value is the assessed value of real property located within an RDA for taxes levied in the year in which the RDA is created for collection in the following year, plus 100 percent of any increase in the assessed value of real property located within an RDA that is placed on the assessment rolls after the RDA is created, less the property tax allocation revenue value. In the second calendar year following the effective date of the ordinance creating the RDA, the county treasurer distributes the receipts from regular taxes on real property in the RDA as follows:
(1)   Each participating taxing district and the sponsoring local government that created the RDA must receive the portion of its regular property taxes by the rate of tax levied by or for the taxing district on its tax allocation base value or upon the total assessed value of real property in the taxing district, whichever is smaller.
(2)   The sponsoring local government must receive an additional portion of the regular property taxes levied by it and by or for each participating taxing district upon the property tax allocation revenue value in the RDA. If there is no property tax allocation revenue value, the local government does not receive any additional regular property taxes.

The county assessor must allocate any increase in the assessed real property value occurring in the RDA to the tax allocation base value and the accrued value as appropriate. Revaluations of real property by the assessor for property taxation not made in accordance with the assessor's revaluation plan are not authorized. The apportionment must cease when the property tax allocation revenue value is no longer obligated or necessary to pay the last of the public improvements.

The allocation to the RDA of portions of the local regular property taxes levied by or for each participating taxing district is a public purpose of and benefit to each of those taxing districts. In addition, the allocation of local property tax allocation revenues under LIFT shall not affect or be deemed to affect the consistency of any of the taxes levied by or within the participating taxing districts with the uniformity requirement of the Washington Constitution.


Local Excess Excise Taxes

The sponsoring local government that creates an RDA or any participating local government may use annually any excess excise taxes received by it from taxable activity within the RDA to finance the public improvement costs financed in whole or in part by local infrastructure financing. When tax allocation revenues are no longer necessary or obligated to pay the costs of the public improvements, the local government may no longer retain the excess excise taxes. Any participating taxing authority may allocate excess excise taxes to the local government so long as the CERB has approved the local government's imposition of the additional local sales and use tax. The excess excise tax is the amount of excise taxes received by a local government during the measurement year within the RDA over and above the amount of excise taxes received there during the base year from taxable income within the RDA. The base year is the first calendar year following the creation of the RDA and the measurement year is a calendar year, beginning with the calendar year following the base year, that is used annually to measure the amount of excess excise taxes required to be used to finance the public improvement costs. However, if no excise taxes were received in the RDA in the 12 months prior to the creation of the area, then the excess excise taxes are the total amount of excise taxes received in each calendar year after the area is created. If an RDA is created in calendar year 2006 and had activity in the RDA prior to its creation, the amount of local excise taxes received by the sponsoring local government during the measurement year from the taxable activity within the RDA over and above the amount of local excise taxes received by the sponsoring local government during the 2007 base year will be adjusted by the DOR for any estimated impacts from retail sales and use tax sourcing changes that become effective July 1, 2007.

Sales and Use Tax

A sponsoring local government may impose a sales and use tax. The tax is in addition to other taxes authorized and will be collected from those who are taxable by the state retail sales tax and use tax for any taxable event within the jurisdiction. The rate cannot exceed 6.5 percent less the aggregate rates of any other taxes imposed on the same event that are already credited against the state sales and use taxes. The rate of the tax shall only be adjusted on the first day of a fiscal year if needed. The DOR must collect the tax on behalf of the sponsoring local government at no cost and remit it to the sponsoring government. The sales and use tax may not be imposed until after July 1, 2008, and approved by the CERB. The local sponsoring jurisdiction must first have received tax allocation revenues derived from both real property taxes or excess excise taxes during the preceding calendar year. If the local government has implemented CRF, the requirement for the receipt of property tax allocations is waived. The proceeds may only be used for the payments of principal and interest on the bonds issued for the public improvements financed through the local infrastructure financing. This tax expires when bonds issued are retired, but not more than 25 years after being imposed. In order to enact a sales and use tax, the local jurisdiction must first enact an ordinance imposing the tax that provides that:
(1)   the tax shall first be imposed on the first day of a fiscal year;
(2)   the amount of the tax received by the local government in any fiscal year shall not exceed the state contribution;
(3)   the tax shall cease to be imposed for the remainder of any fiscal year in which either:
   (a)   the amount of tax received by the sponsoring local government equals the amount of the state contribution;
   (b)   the amount of the revenue from taxes imposed under this section by all cities, towns, and counties totals the annual state contribution limit; or
   (c)   the amount of the tax received by the sponsoring local government equals the amount of the project award by the CERB.
(4)   the tax will be reimposed at the beginning of the next fiscal year if it ceased to be imposed;
(5)   neither the local excise tax allocation revenues nor the local property tax allocation revenues may be more than 80 percent of the total local funds used to earn the state contribution;
(6)   if the tax ceases to be distributed, it will be redistributed at the beginning of the next fiscal year; and
(7)   any revenue generated by the tax in excess of the amount of the state contribution limit will go to the state.

The CERB, in consultation with the DOR, will approve the amount of the sales and use tax that an applicant may impose. The amount may not exceed the lesser of $1 million or the average amount of tax revenue the applicant estimates it will receive in all fiscal years through the imposition of the sales and use tax. The state contribution limit is $5 million per year. Each year, the amount of taxes approved by the CERB for distribution to a sponsoring local government in the next fiscal year shall be the lesser of the amount of the project award in the approval notice or an amount equal to the state contribution. In determining the amount of the state contribution, the CERB will consider the information from the sponsoring local government's annual reports. Local governments must notify the DOR by March 1 the amount of local infrastructure financing dedicated in the previous calendar year to finance the authorized public improvement and the tax allocation revenues derived in the previous calendar year from the regular property taxes on the accrued value and distributed to finance the public improvements. Money must be used only for the purpose of principal and interest payments on bonds issued for a project and must be matched with an amount from local public sources dedicated through December 31 of the previous calendar year to finance the authorized public improvements. Local public sources may include private monetary contributions and tax allocation revenues. The money generated from the sales and use tax must actually be expended to pay public improvement costs or are required by law or an agreement to be used exclusively to pay public improvement costs. The new tax is available to a local jurisdiction as long as the jurisdiction has outstanding indebtedness.


Accountability

The local government utilizing the sales and use tax must provide an annual report to the DOR by March 1 of each year. If the sponsoring local government fails to comply, no tax may be imposed in subsequent fiscal years until such time as the local government complies and the DOR calculates the state contribution rate. The report must include:
(1)   the amount of tax allocation revenues, sales and use tax and local public sources received by the local government during the preceding calendar year, and how these revenues were expended;
(2)   the names, and previous business locations, of any business located within the RDA as a result of the public improvements undertaken by the local government and financed in whole or in part by this program;
(3)   the total number of permanent jobs created as a result of the public improvements undertaken by the local government and financed in whole or in part by this program;
(4)   the average wages and benefits received by the employees of all businesses locating within the RDA as a result of the public improvements; and
(5)   the local government is complying with the requirement that the local infrastructure financing proceeds are being used exclusively in the area within the jurisdiction deemed in need of economic development and/or redevelopment.

The DOR shall make the report available to the public and the Legislature by June 1 of each year. The report must include a list of the public improvements undertaken by the local governments and financed in whole or in part by community revitalization financing. The report should also include a summary of the information provided by the local governments. The full report by a local government to the DOR shall be made available to the public upon request.


Bond Authorization

A local government designating an increment area and authorizing the use of community revitalization financing may incur general indebtedness, and issue general obligation bonds or revenue bonds, to finance the public improvements and retire the indebtedness in whole or in part from tax allocations it receives. Local governments may annually pay into a fund to be established for the benefit of bonds issued for this program a fixed proportion or fixed amount of any tax allocation revenues derived from property or business activity within the increment area containing the public improvements funded by the bonds. The payments continue until all bonds payable from the fund are paid in full. A local government may annually pay into a second fund a fixed proportion or fixed amount of any revenues derived from the credit of the state sales and excise tax, such payment continuing until all bonds from the fund are paid in full. A local government that issues bonds to finance public improvements may pledge for payment of such bonds all or part of any tax allocation revenues derived from the public improvements. It can also pledge the revenues of the credit of the state sales and excise tax. The bonds issued by the local government to finance the public improvements do not constitute an obligation of the state.

Joint Legislative Audit and Review Committee (JLARC) Study

Beginning September 1, 2013, and continuing every five years thereafter, the JLARC must submit a report to the Legislature evaluating the effectiveness of the LIFT program, including a project-by-project review. The report should also include an evaluation of each project's interim results based on the project selection criteria. The report should also measure employment changes, property tax changes, sales and use tax changes, property value changes, and changes in housing and existing commercial activities. The report due in 2028 must also include any recommendations regarding whether or not the LIFT program should be expanded statewide as well as an analysis of what impact, if any, the expansion would have on Washington's economic development.

Office of Financial Management (OFM) Study
The OFM will contract with a consultant to study and report on similar programs in other states, including project selection criteria and governance. The report, with recommendations tailored to Washington's unique needs, is due to the Governor and the Legislature by December 1, 2006.

Miscellaneous
Nothing in the act gives port districts the right to impose a local sales or use tax. The DOR and the CERB must evaluate and report periodically to the Governor and Legislature on the implementation of the LIFT program. The DOR may recommend such amendments, changes in, and modification of the LIFT program as seem proper. The LIFT program expires June 30, 2039.

Votes on Final Passage:
House      89   7
Senate     41   4   (Senate amended)
House      92   6   (House concurred)
Effective:  July 1, 2006  
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Partial Veto Summary: The Governor vetoed the section directing the Office of Financial Management to contract with a consultant to study and report on similar programs in other states.

Chapter 182, Laws of 2006 (HB 2348) - Extending tax relief for aluminum smelters.

A number of tax incentives provided to firms in the aluminum smelting industry are extended until January 1, 2012.

The B&O tax rates on the manufacturing, processing for hire, and wholesaling of aluminum are reduced for aluminum smelters to .2904 percent through January 1, 2012. Aluminum smelters may take a credit against B&O tax liability for property taxes paid through January 1, 2012.

Through January 1, 2012, aluminum smelters may receive a credit against retail sales and use tax liability for the amount of the state portion of sales and use taxes paid with respect to property used at a smelter or to labor and services rendered with respect to the property. Aluminum smelters are exempt from the brokered natural gas use tax through January 1, 2012.

The act includes accountability provisions related to employment goals, reporting requirements, and an evaluation. The goals of the incentives are to (1) maintain aluminum production at a level that will preserve at least 75 percent of the jobs that were on the payroll as of January 1, 2004, adjusted for any reductions announced prior to December 2003, and (2) allow the aluminum smelting industry to continue operations in the state through 2012 when energy costs are anticipated to drop.

By December 1, 2007, the fiscal committees of the House and Senate, in consultation with the Department of Revenue, must issue a report to the Legislature evaluating the effectiveness of the incentives, including the effect on job retention. Another report to the Legislature must be conducted by December 1, 2010, and December 1, 2015.

Votes on Final Passage:
House      90   8
Senate     40   8   (Senate amended)
House      93   4   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.

Chapter 183, Laws of 2006 (ESSB 6428) - Providing electronic product recycling through manufacturer financed opportunities.
Revised for 1st Substitute: Providing for electronic product recycling.

A manufacturer-implemented and - financed system for collecting, transporting, and recycling unwanted "covered electronic products" (CEPs) is established. CEPs include most computer monitors, desktop computers, laptop or portable computers, and televisions. Households, charities, school districts, and small businesses and governments may discard CEPs free of charge at collection centers throughout the state. Manufacturers may not sell CEPs in Washington unless they participate in the system, which must be operational by 2009.

Labeling. Beginning January 1, 2007, no person may sell or offer for sale an electronic product in Washington unless the manufacturer's brand is permanently affixed and readily visible. In-state retailers possessing unlabeled products on that date may exhaust their stock through sales.

Registration. CEP manufacturers, collectors, transporters, and processors must annually register with and provide information to DOE. Retail sellers may register and be held accountable as manufacturers.

Collection and Recycling Plans. Manufacturers must participate in plans to implement and finance handling of their "equivalent share" of CEPs, as determined by DOE. A plan using nonprofit organizations for CEP collection will be given a 5 percent credit applied to its collective equivalent share for pounds received from those organizations.

A manufacturer must participate in the standard plan developed by the Washington Materials Management and Financing Authority (Authority) unless it obtains DOE approval to participate in an independent plan. An independent plan may be submitted to DOE by a manufacturer or group of manufacturers representing at least a 5 percent share of CEPs; participants may not be new entrants or white box (unbranded product) manufacturers.

Plans must provide for convenient urban and rural collection services, with at least one collection site or alternate service for municipalities with populations greater than 10,000. Plans may limit the number of CEPs accepted per customer per day.

Plans must sample CEPs entering their programs and note information needed to calculate equivalent share. If costs are passed on to consumers, manufacturers may not charge a fee when an unwanted product is delivered or collected for recycling. Collectors providing premium or curbside services may charge a fee for their additional collection costs.

All plans must be submitted to DOE for review and approval, be operational by 2009, and updated at least every five years.

Washington Materials Management and Financing Authority. The Authority, established as a public entity, must devise and implement a standard plan responsible for handling the collective equivalent shares of its participating manufacturers. The Authority is governed by a board of directors (board) appointed by the Director of DOE, comprised of 11 representatives of participating manufacturers. The Directors of DOE, the Department of Community, Trade and Economic Development, and the State Treasurer serve as ex-officio members. The board must select a chair, create bylaws, and adopt a general operating plan, conducting at least one public hearing on that plan.

Participating manufacturers must pay the Authority's administrative and operational costs based on an equitable method reviewed and approved by DOE. If a manufacturer has not met its financial obligations, the Authority will notify DOE that the manufacturer is no longer participating in the standard plan.

A participating manufacturer may appeal an assessment of charges or apportionment of costs to the Director of DOE, whose decision can be reviewed by an arbitration panel, with subsequent limited Superior Court review.

Processing Standards and International Export Limitations. Plans must ensure that processors document compliance with environmental performance standards, nonrecycled residual disposal guidelines, and international export limitations. DOE may audit processors. Plans may not use prison labor for processing.

International export of electronic waste to certain nations by processors is prohibited, under certain circumstances, if the waste violates federal hazardous waste standards. Products exported into certain nations for reuse must be tested and labeled as fully functional or needing only minor repairs.

Annual Reporting. Plans must annually report to DOE regarding total weight of CEPs recycled by county, collection services by county, weight of CEPs processed by each processor, compliance with processing standards, educational and promotional efforts, sampling results, and other information deemed necessary by DOE. Nonprofit organizations collecting CEPs must report the weight of CEPs they collected during the previous year. Financial and proprietary information is exempt from public records disclosure requirements.

Outreach. Plans must inform consumers about where and how to recycle their CEPs. DOE and local governments must promote recycling. Retailers must provide pertinent information.

State Purchasing. The Department of General Administration (GA) must adopt purchasing preferences for electronic products meeting environmental standards for reducing or eliminating hazardous materials. GA must ensure that surplus products are managed only by registered transporters and processors and directed to legal secondary materials markets.

Fees. DOE must establish registration and plan review fees based on a sliding scale representing annual sales of CEPs in Washington.

Penalties. DOE must send a written warning to manufacturers not participating in an approved plan. After the initial warning, DOE will assess a noncomplying manufacturer a penalty of up to $10,000 per violation.

If the Authority or an independent plan fails to implement an approved plan, DOE will assess a penalty of up to $5,000 for the first violation and up to $10,000 for subsequent violations.

Persons not complying with manufacturer registration, education and outreach, reporting, labeling, retailer responsibility, collector and transporter registration, or processing requirements will receive a written warning. Noncomplying persons will be assessed a penalty of up to $1,000 for the first violation and up to $2,000 for subsequent violations.

Electronic Products Recycling Account. The electronic products recycling account is created to accept manufacturer fees, payments from plans not handling their collective equivalent share, and penalties. Moneys may be used solely by DOE to fulfill agency responsibilities under the act and for expenditures to plans exceeding their collective equivalent share.

Preemption. The act is void if federal law establishes a national electronic waste collection and recycling system that substantially meets the scope and intent of the act.

Reports to Legislature. DOE must report to the Legislature by April 1, 2010 and December 31, 2012, concerning numerous elements of the act.

Votes on Final Passage:
Senate     41    8
House      69   29   (House amended)
Senate     38   11   (Senate concurred)
Effective:  July 1, 2006  
Click here for additional information.

Partial Veto Summary: The Governor vetoed restrictions regarding international export of electronic waste.
Chapter 184, Laws of 2006 (SSB 6141) - Including the value of wind turbine facilities in the property tax levy limit calculation.

Property taxes resulting from new county-assessed electric generation wind turbine facilities are added to the amount that may be levied under the levy limit.

Votes on Final Passage:
Senate     46   0
House      96   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 185, Laws of 2006 (SSB 6225) - Regulating the installation, repair, and maintenance of domestic well water systems.
Revised for 1st Substitute: Regulating the business of installing, repairing, and maintaining domestic water pumping systems.

A system is created within L&I to coordinate the registration of both the plumbing and electrical aspects of a person who installs, maintains, and repairs the pressurization and filtration equipment that acquires, treats, stores, and moves water for domestic use, including irrigation, to one or more residences, or certain owner-operated farms.

Pressurization and filtration equipment must be located either: (1) outside of a building; (2) in a well house; or (c) within a designated interior space (i.e. garage, basement, crawl space) of a residential structure. Equipment within a residential structure must be connected to electrical wiring and plumbing installed by persons otherwise authorized to perform such work under RCW 19.28 (electrical) and RCW 18.106 (plumbing). A licensed electrician must also install wiring to a designated disconnect switch for equipment located outside of a building.

The State Advisory Board of Plumbers exercises authority over a newly created specialty plumbing classification for domestic well water pump installation, and the Board is expanded to include a specialty plumber and a specialty plumbing contractor.

The Electrical Board retains authority over the electrical work performed by persons certified to perform domestic well water systems. Until July 1, 2007, instead of issuing citations, L&I will issue one written warning to each person who performs such work without a valid electrician certification and advising that the person must apply for certification within 30 days of the warning.

Electricians performing electrical work on domestic well water systems within the scope of work of their license, and plumbers performing plumbing work on domestic well water systems within the scope of work of their license are not required to possess the certification of competency created by this bill.

Votes on Final Passage:
Senate     41   0
House      97   1   (House amended)
Senate     45   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 189, Laws of 2006 (SHB 2691) - Creating optional public retirement benefits for justices and judges.

Additional Benefits
A justice or judge of the Supreme Court, Courts of Appeals, or Superior Courts participating in PERS and the JRA prior to January 1, 2007, may elect to discontinue future employee and employer contributions into the JRA and earn a total 3.5 percent of average final compensation per year defined benefit, if a member of the Teachers' Retirement System (TRS) Plan 1 or PERS Plan 1 or Plan 2, and a total 1.6 percent defined benefit if a member of PERS Plan 3.

For members of TRS serving as justices or judges of the Supreme Court, Courts of Appeals, or Superior Courts, the member contribution rate is 12.26 percent of pay. The employer contribution rate to TRS is unchanged.

The employee contribution rate to PERS for judges of District and Municipal Courts for members of PERS Plan 2 is 250 percent of the general PERS Plan 2 member contribution rate, and for members of PERS Plan 1 the member contribution rate is 12.26 percent of pay. The employer contribution rate to PERS for judges of District and Municipal Courts is unchanged.

A justice or judge participating in the 3.5 percent multiplier provisions provided for TRS Plan 1 and PERS Plan 1 or 2 may not accrue a benefit, in combination with benefits accrued prior to January 1, 2007, in excess of 75 percent of average final compensation. A justice or judge participating in the 1.6 percent of average final compensation provisions provided for members of PERS Plan 3 may not accrue a benefit, in combination with benefits accrued prior to January 1, 2007, in excess of 37.5 percent of average final compensation.

Contribution Rates
The employer contribution rate to PERS for justices and judges of the Supreme Court, Courts of Appeals, or Superior Courts is the established PERS employer contribution rate for general members, plus 2.5 percent of pay. The employee contribution rate to PERS for justices and judges of the Supreme Court, Courts of Appeals, or Superior Courts for members of PERS Plan 2 is 250 percent of the general PERS Plan 2 member contribution rate, less 2.5 percent of pay, and for members of PERS Plan 1 9.76 percent of pay.

For members of TRS serving as justices or judges of the Supreme Court, Courts of Appeals, or Superior Courts, the member contribution rate is 12.26 percent of pay.

The employer contribution rate to PERS for judges of District and Municipal Courts is the established PERS employer contribution rate for general members. The employee contribution rate to PERS for judges of District and Municipal Courts for members of PERS Plan 2 is 250 percent of the general PERS Plan 2 member contribution rate and for members of PERS Plan 1 12.26 percent of pay.

Votes on Final Passage:
House      96   1
Senate     43   0
Effective:  January 1, 2007  
Click here for additional information.
Chapter 192, Laws of 2006 (SSB 6670) - Changing court filing fee provisions.

The bill contains a number of technical amendments to provide consistency with filing fee changes made by the Legislature in 2005.

Any party filing a counterclaim, cross-claim, or third-party claim in an unlawful detainer action must pay a filing fee of $157. This filing fee is subject to division with the state for deposit in the public safety and education account. The $5 fee for certification of delinquent taxes is eliminated.

A $36 fee is charged for filing counterclaim, cross-claim, or third-party claim to a petition for modification of a decree of dissolution or paternity. This fee is not subject to division with the state. When the county clerk requests an extension of judgment in a criminal case, the $200 fee may be imposed as a cost to be paid by the offender.

Votes on Final Passage:
Senate     37   4
House      96   1
Effective:  June 7, 2006  
Click here for additional information.
Chapter 196, Laws of 2006 (ESHB 1020) - Regarding electrical transmission.

EFSEC Jurisdiction
The EFSEC jurisdiction is extended to include new electrical transmission lines that operate in excess of 115 kilovolts that are necessary to connect a power plant to the region's power grid and electrical transmission facilities in excess of 115 kilovolts in national interest electric transmission corridors. When siting transmission facilities, EFSEC must not consider the fuel source of the electricity to be carried on the facilities.

After "The EFSEC is designated as the state authority for purposes of siting transmission facilities under the national Energy Policy Act of 2005 and any accompanying regulations that may be adopted by the U.S. Secretary of Energy.", and "The EFSEC's authority regarding transmission facilities is limited to those transmission facilities that are the subject of the Energy Policy Act of 2005. When siting transmission facilities related to Energy Policy Act of 2005, the EFSEC may consider interstate benefits to be achieved by the proposed construction or modification of the facilities in the state." In addition, the EFSEC must convey to the U.S. Secretary of Energy the views of interested parties in the state concerning the appropriate limits on federal authority over transmission siting in the state.

Changes to the EFSEC Process
Various updates are made to the EFSEC process, including the consideration of local land use plans and ordinances adopted under the Growth Management Act. Also, reimbursements are authorized for the time a local government's member or designee services on the EFSEC in reviewing a siting application.

Votes on Final Passage:
House      98   0
Senate     48   0   (Senate amended)
House      96   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 197, Laws of 2006 (EHB 1069) - Requiring performance audits for tax preferences.

The Legislature recognizes that tax preferences are intended to be in the public interest. The Legislature finds that periodic review of tax preferences is needed to determine if their continued existence will serve the public interest.

The Citizen Commission for Performance Measurement of Tax Preferences (Commission) is created, with two nonvoting members and five voting members. The state auditor and the chair of the Joint Legislative Audit and Review Committee are nonvoting members. The chair of each of the two largest caucuses of the Senate and the two largest caucuses of the House of Representatives must each appoint a voting member. None of these appointees may be members of the Legislature. The Governor must select the seventh member.

The Commission must develop a schedule for review of tax preferences at least once every 10 years. The Commission is to schedule all tax preferences for review, except those required by constitutional law, those the Commission determines are a critical part of the structure of the tax system, the small business and occupation tax credit, sales and use exemptions for food and prescription drugs, property tax relief for retired persons, property tax valuations based on current use, and tax exemptions for machinery and equipment for manufacturing, research and development, or testing. An expedited review may be provided for tax preferences with an estimated biennial fiscal impact of $10 million or less. The Commission must provide a process for effective citizen input during its deliberations.

The JLARC must review tax preferences according to the10-year schedule developed by the Commission. The JLARC must consider, but is not limited to, the following factors in the review:
   (a)   the classes of individuals, types of organizations, or types of industries whose state tax liabilities are directly affected by the tax preference;
   (b)   public policy objectives that might provide a justification for the tax preference, including the extent to which the preference encourages business growth or relocation into this state, promotes growth or retention of high wage jobs, or helps stabilize communities;
   (c)   evidence that the existence of the tax preference has contributed to the achievement of any of the public policy objectives;
   (d)   the extent to which continuation of the tax preference might contribute to any of the public policy objectives;
   (e)   the extent to which terminating the tax preference may have negative effects on beneficiaries of the tax preference, and the extent to which resulting higher taxes may have negative effects on employment and the economy;
   (f)   the extent to which the tax preference may provide unintended benefits to an individual, organization, or industry;
   (g)   the feasibility of modifying the preference to provide for adjustment or recapture of the tax benefits of the preference if the objectives are not fulfilled;
   (h)   fiscal impacts of the tax preference, including past impacts and expected future impacts if it is continued;
   (i)   the extent to which termination of the tax preference would affect the distribution of liability for payment of state taxes; and
   (j)   consideration of similar tax preferences adopted in other states, and potential public policy benefits that might be gained by incorporating corresponding provisions in Washington.

For each tax preference, the JLARC must provide a recommendation as to whether the tax preference should be continued without modification, modified, scheduled for sunset review at a future date, or terminated immediately. The JLARC may recommend accountability standards for the future review of a tax preference.

The JLARC must submit a report to the Commission by August 30 of each year. The Commission may review and comment on the JLARC report. The JLARC must prepare a final report that includes any comments of the Commission and submit the report to the House Finance and Senate Ways & Means Committees by December 30. The legislative committees are to hold a joint hearing on the report.

The first report of the JLARC is due by August 30, 2006. The first report of the Commission to the Legislature is due by December 30, 2006. A special report on a shorter time line is required for tax preferences that expire before January 1, 2007. The JLARC must submit this special report to the Legislature by January 12, 2006.

Staff support to the Commission is provided by the JLARC, and the Department of Revenue and Employment Security Department are directed to provide information needed by the Commission or the JLARC.

Statutes relating to the unimplemented 1982 tax preference review are repealed.

Votes on Final Passage:
House      61   34
Senate     33   15
Effective:  June 7, 2006  
Click here for additional information.
Chapter 200, Laws of 2006 (SHB 2345) - Addressing regional fire protection service authorities.

Provision of Emergency Services
The powers granted to the Authority include the creation and operation of "emergency" services as well as fire protection services.

Creation of a Regional Ambulance Service
The Authority must comply with several procedural requirements before an ambulance service may be created that competes with an existing private ambulance service. These procedures include the requirement that the Authority formally study the adequacy of existing private ambulance services and make specific factual findings that such services are insufficient to serve the needs of the region within the jurisdiction of the Authority.

Plan Amendments not Requiring Voter Approval
The planning committee must identify within the plan those provisions that may be amended by the Authority without voter approval.

Requirements for Voter Approval of Revenue Sources
The voting requirements for public approval of a plan are clarified as follows:
  • If a plan authorizes the Authority to impose benefit charges or tax levies that by law require the approval of 60 percent of the voters, then the plan itself must be approved by 60 percent of the voters.
  • If the plan authorizes alternative sources of revenue not subject to the 60 percent voter approval requirement, then the plan must be approved by simple majority vote.
  • If the plan does not authorize the authority to impose benefit charges or tax levies requiring the approval of 60 percent of the voters, then the plan is subject to approval by simple majority vote.

Subsequent to the adoption of the plan, the Authority may impose taxes and benefit charges not specified in the original plan, provided the requisite voter approval is obtained prior to the imposition of such taxes or benefits charges.

Effective Date That an Authority Must Assume Its Duties
Following the requisite voter approval, an Authority must assume its duties on the next January 1st, or the next July 1st, whichever occurs first.

Powers and Duties of the Governing Board
The powers and duties of an Authority's governing board are clarified as follows:

  • The board shall exercise powers and perform duties as the board determines necessary to carry out the purposes, functions, and projects of the Authority.
  • The exercise of the board's powers must be in accordance with legal requirements applicable to fire protection districts if one of the jurisdictions encompassed by the authority is such a district. However, this provision does not apply if the plan specifies otherwise.
  • Provisions allowing the board to exercise eminent domain powers or to acquire, hold, or dispose of real property are deleted.

Transfers of Powers and Duties to the Authority by Participating Jurisdictions
Unless otherwise specified in the plan, the powers, duties, and functions of participating jurisdictions are transferred to the Authority.

Transfers of Assets and Debts to the Authority
Unless otherwise specified in the plan, the assets and debts of participating jurisdictions are transferred to the Authority.

Annexations Affecting Participating Jurisdictions
Territory that is annexed to a participating jurisdiction is deemed automatically annexed to the Authority as of the effective date of the annexation.

Debt and Bonding Authority
An Authority may incur general indebtedness not exceeding an amount equal to 0.75 percent of the value of the taxable property located within the jurisdiction of the Authority. The maximum term of such indebtedness may not exceed 20 years. In order to pay its obligations, an Authority may pledge payments to be received by the Authority from the state, the federal government, or any fire protection jurisdiction under an interlocal contract. Excess property tax levies may also be used to retire general indebtedness provided the requisite voter approval is obtained.

An Authority is also authorized to issue general obligation bonds for capital purposes. Such bonds, together with any outstanding general obligation debt, may not exceed an amount equal to 1.5 percent of the value of the taxable property within the jurisdiction of the Authority. The bonds may be retired through excess property tax levies following voter approval of a proposition authorizing the indebtedness and the tax levies. The requisite voter approval requires the affirmative vote of 60 percent of those voting at an election involving voter participation of not less than 40 percent of the residents who voted at the last preceding state election. The maximum term of the bonds may not exceed 20 years.

Collective Bargaining Agreements
Several provisions are added pertaining to the rights of Authority employees under collective bargaining agreements existing among the various fire protection jurisdictions encompassed by the Authority. Unless otherwise specified in a new agreement applicable to all transferring employees at the time of the creation of the Authority, such employees retain all of the rights, benefits, and privileges they had under the various collective bargaining agreements existing prior to the creation of the Authority.

Civil Service Provisions
Subject to specified conditions, an Authority is granted the power to create civil service rules applicable to its employees.

Votes on Final Passage:
House      97   1
Senate     48   0   (Senate amended)
House      98   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.

Chapter 206, Laws of 2006 (HB 2477) - Making technical changes to election laws.

Signature Verification Procedures
The language requiring the Secretary of State to establish guidelines for signature verification processes is removed from the general administrative election law provisions, and similar language is added to the Secretary of State's rule-making authority statute. The language added to the rule-making authority statute is modified from a general requirement that guidelines be established to a more specific requirement that rules be established for "standards for the verification of signatures on absentee, mail, and provisional ballot envelopes."

The language requiring that all election personnel assigned to verify signatures be trained on the guidelines is removed from the general provisions and is added to the section addressing the processing of incoming ballots in the chapter on absentee voting.

Filing Fee Petition
The name of the petition that must accompany a candidate's declaration of candidacy if he or she lacks the funds to pay the filing fee is changed from "nominating" petition to "filing fee" petition.

The Uniformed and Overseas Citizens Absentee Voting Act
The language including out-of-state voters in the statute implementing UOCAVA requirements is removed.

Repealed Statutes
The following election laws are repealed:
29A.04.157 (September primary)
29A.04.610 (Rules by Secretary of State)
29A.20.110 (Definitions -- "Convention" and "election jurisdiction")
29A.20.130 (Convention -- Notice)
29A.20.200 (Declarations of candidacy required, exceptions -- Payment of fees)
29A.24.200 (Lapse of election when no filing for single positions -- Effect)
29A.28.010 (Major party ticket)
29A.28.020 (Death or disqualification -- Correcting ballots -- Counting votes already cast)
29A.36.190 (Partisan candidates qualified for general election)
29A.44.220 (Casting vote)
29A.46.140 (Interference, assistance)
29A.46.150 (Prohibitions -- Penalty)
29A.46.210 (Procedures for voting)
29A.46.220 (Opening and closing locations)
29A.46.230 (Voters in location at closing time)
29A.46.240 (Procedures after closing)
29A.46.250 (Handling of ballots after closing)
29A.72.220 (Petitions -- Signature checking -- Registration information file)

Votes on Final Passage:
House      96   0
Senate     48   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 208, Laws of 2006 (SHB 2695) - Modifying absentee or provisional ballot notice requirements.

The county auditor must notify a voter by first class mail in the event that the voter fails to sign the outside envelope of the absentee or provisional ballot or if the voter's signature does not match the signature on file in the voter registration file. If the voter has not responded to a mail notification, or if a ballot needing correction is received within three business days of the final meeting of the canvassing board, the voter must be contacted by phone and advised of the procedure to correct the ballot.

To correct a mismatched signature, a voter may sign and return a copy of the affidavit provided by the auditor, along with a copy of a government or tribal issued identification. If the signature on the affidavit does not match the signature on file or the signature on the identification, the voter must appear in person and sign a new registration form.

Votes on Final Passage:
House      97    0
Senate     35   14   (Senate amended)
                             House Refuses to Concur
Senate                  (Senate receded)
Senate     40    9    (Senate amended)
House      55   43   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 209, Laws of 2006 (HB 2520) - Recodifying and making technical corrections to public disclosure law.

Recodifies sections in RCW 42.17 regarding public records exemptions into the new Public Records Act in RCW 42.56 and makes technical corrections.

Votes on Final Passage:
House:     95   0
Senate:    42   0
Effective:  July 1, 2006  
Click here for additional information.

Chapter 211, Laws of 2006, (HB 2606) - Allowing volunteer fire fighter personnel to hold elective or appointed office.

A volunteer fire fighter working for a city, town, or fire protection district is authorized to serve as an elected public official or hold an appointed public office, provided there is no legal prohibition preventing him or her from taking office. This authorization does not apply to a fire chief.

"Volunteer" is defined to mean any member of a fire department who undertakes firefighting duties without receiving compensation or consideration for such duties. "Compensation" and "consideration" do not include any benefits the volunteer may accrue regarding pension rights and other relief available to volunteer fire fighters.

Votes on Final Passage:
House      96   0
Senate     45   0   (Senate amended)
House      97   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 212, Laws of 2006 (HB 2617) - Allowing local jurisdictions to allow off-road vehicles to operate on designated city or county roads.

Off-Road Vehicle Use
The following cities or counties may allow the use of off-road vehicles on designated city or county roads, including highway roads: (1) cities with a population of less than 3,000; and (2) counties, if the road or highway is a direct connection between a city with a population of less than 3,000 and an ORV recreation facility.

The ORVs operating on designated city or county roads are exempt from the licensing and equipment standards that apply to vehicles operating on highway roads. Such ORVs are not exempted from the use permit, equipment, and operating standards generally applied to ORV use.

Limited Liability for Recreational Use of Lands
Limited liability for unintentional injuries sustained on recreational lands is applied to certain publicly owned ORV sports parks and public facilities accessed by a highway, street, or road for the purposes of ORV use, where a fee of not more than $20 is charged for access.

Votes on Final Passage:
House      84   11
Senate     46    0   (Senate amended)
House      90    7   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 213, Laws of 2006 (HB 2644) - Increasing temporarily the statewide cap for the customer assistance public utility tax credit.

The total amount of credit available statewide under the public utility tax credit program for qualifying contributions and billing discounts is temporarily increased to $5.5 million for state Fiscal Year 2007 alone.

Votes on Final Passage:
House      98   0
Senate     48   0   (Senate amended)
House      98   0   (House concurred)
Effective:  July 1, 2006  
Click here for additional information.
Chapter 214, Laws of 2006 (HB 2690) - Permitting members of the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, the public safety employees' retirement system, plan 1 of the law enforcement officers' and fire fighters' retirement system, and the Washington state patrol retirement system to make a one-time purchase of additional service credit.

Members of the Teachers', School Employees', and Public Employees' Plans 1, 2 and 3, the Public Safety Employees' Retirement System Plan 2, the Law Enforcement Officers' and Fire Fighters' Plan 1, and the Washington State Patrol Retirement System may purchase up to five years of service credit at time of normal or early retirement. The service credit purchased is not regular membership service and may not be used for purposes such as qualifying for improved early retirement benefits, such as the 3 percent per year reduction available to members of the PERS, TRS, and SERS Plans 2 and 3 with 30 years of service.

The cost of the additional service credit is the actuarial equivalent value of the resulting increase in the member's benefit. The member may pay all or part of the cost of the additional service with an eligible transfer from a qualified retirement plan. The DRS must adopt rules to ensure that all purchases and transfers comply with the requirements of the federal Internal Revenue Code and regulations.

The laws permitting the purchase of service credit only upon early retirement in PERS, TRS, and SERS Plans 2 and 3 are repealed.

Votes on Final Passage:
House      97   0
Senate     39   0
Effective:  July 1, 2006  
Click here for additional information.
Chapter 215, Laws of 2006 (SHB 2713) - Clarifying that state and local governing bodies may support or oppose ballot propositions.

The campaign financing law pertaining to forbidding the use of public office or agency facilities in campaigns is modified to allow members of an elected board, council, or commission of a special purpose district to take action at an open public meeting to support or oppose a ballot measure. Special purpose districts include but are not limited to:
  • fire districts;
  • public hospital districts;
  • library districts;
  • park districts;
  • port districts;
  • public utility districts;
  • school districts;
  • sewer districts; and
  • water districts

Votes on Final Passage:
House      66   30
Senate     27   20
Effective:  June 7, 2006  
Click here for additional information.

Chapter 220, Laws of 2006 (HB 2975) - Granting an exemption under the state securities act.

An additional exception to the nontransferable provision regarding exempt transactions by a mutual or cooperative association is created. The additional exception is a transfer by gift to a nonprofit entity. The entity must meet the definition of a nonprofit in the state tax exemption chapter and must be exempt from federal taxes.

House:     98  0
Senate:    47  0   (Senate amended)
House:     97  0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 222, Laws of 2006 (HB 2991) - Concerning background checks of metropolitan park district employees. (REVISED FOR PASSED LEGISLATURE: Concerning background checks of certain metropolitan park district employees, volunteers, and independent contractors.)

Metropolitan park districts must establish by resolution the requirements for a criminal history record check of all employees, volunteers, and independent contractors who will either have access to children or vulnerable adults while unsupervised or who will be responsible for monetary transactions. The background checks will be processed through the WSPCIS, as provided for in statute, and through the Federal Bureau of Investigation. The background checks must include a fingerprint check using a complete Washington criminal identification fingerprint card. Park districts are required to provide a copy of the record report to the employee, volunteer, or independent contractor (employee). Park districts may determine that it is necessary to employ someone on a conditional basis while the investigation is being conducted, may decide to waive the background check if the prospective employee has had a record check within the past year, and may require that the prospective employee pay for the record check.

The term "park policemen" is changed to "park police."

Votes on Final Passage:
House      97   1
Senate     47   0   (Senate amended)
House      96   1   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 226, Laws of 2006 (SHB 2804) - Modifying the property tax exemption for nonprofit schools and colleges.

The property tax exemption for a nonprofit school or college is nullified for the assessment year if the property is used by an individual or organization not entitled to a property tax exemption, unless one of the following exceptions apply: (1) The property may be used by students, alumni, faculty, staff, or other persons in a manner consistent with the educational, social, or athletic programs of the school or college. (2) The school or college may contract for food services for students, faculty and staff, the operation of a bookstore on campus, and related maintenance, operational, or administrative services. (3) The school or college may allow uses for pecuniary gain or to promote business activities for not more than seven days in a calendar year for each portion of the property. Sports or educational camp uses conducted by faculty members do not count against the seven days.

Any rent or donations received by the college or school for use of the property must be reasonable and not exceed maintenance and operation expenses.

An inadvertent use of the property in a manner inconsistent with school or college purposes will not nullify the exemption, if the inadvertent use is not part of a pattern of use.

Votes on Final Passage:
House      98   0
Senate     47   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 227, Laws of 2006 (ESSB 6802) - Regarding air pollution control authority boards.

Boards governing a single-county authority, with a population of 400,000 or more people, are comprised of: (1) three appointees of cities, one each from the two cities with the most population in the county and one appointee of the city selection committee representing the other cities; and (2) one representative designated by the board of county commissioners. These members then elect an additional citizen member who is a county resident and who has significant professional experience in the field of public health, air quality protection, or meteorology.

The membership of the city selection committee, for a single county, consists of the mayor of each incorporated city and town within the county, except for the mayors of the cities with the most population who have already designated appointees to the board.

Votes on Final Passage:
Senate     36   5
House      98   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 235, Laws of 2006 (ESSB 6106) - Requiring disclosure of specified health care information for law enforcement purposes.

A health care provider is required to disclose health care information about a patient without the patient's consent upon request of local, state, or federal law enforcement authorities for any patient who has been, or is being, treated for any injury arising from: (1) the discharge of a firearm; (2) a sharp or pointed instrument which law enforcement authorities reasonably believe to have been intentionally inflicted; or (3) a blunt force injury which law enforcement authorities reasonably believe resulted from a criminal act. Law enforcement authorities can make the request for the information orally or in writing to a nursing supervisor, administrator, or designated privacy official.

An individual responding to such a request must provide the following information about the patient, if known: name, address, gender, age, condition, diagnosis, status of consciousness upon admission, provider name, whether or not the patient has been transferred to another facility, and the patient's discharge time and date.

A definition is provided for "federal, state, or local law enforcement authorities." It includes those authorities who are empowered by law to investigate or prosecute alleged or potential criminal violations of law.

In the case of a person reported missing and not found within 30 days of the report, diagnostic quality copies of the missing person's dental records must be provided by the missing person's dentist if presented with written consent from the person's family. In the event family cannot be located, law enforcement authorities may submit a statement that the next of kin could not be located, or that the next of kin have refused to consent, and law enforcement authorities have reason to believe they may have been involved in the missing person's disappearance.

Votes on Final Passage:
Senate     43   0
House      97   0   (House amended)
Senate     43   0   (Senate concurred)
Effective:  March 27, 2006  
Click here for additional information.
Chapter 239, Laws of 2006 (2SSB 6197) - Creating the governor's interagency council on health disparities.
Revised for 2nd Substitute: Creating the governor's interagency coordinating council on health disparities.

The Governor's Interagency Coordinating Council (Council) on Health Disparities is established.

The Council consists of members from state commissions, boards and councils relevant to education, commerce, health care consumers, the Department of Early Learning and workforce training.

The Council is required to hold public hearings, gather information, and conduct studies to understand how the actions of state government can contribute to or help reduce health disparities. The Council is required to meet at least two times per calendar year.

The Board of Health is required to conduct health impact reviews in collaboration with the Governor's Interagency Coordinating Council on Health Disparities. Health impact reviews are defined as a review of a legislative or budgetary proposal that determines the extent to which the proposal improves or exacerbates health disparities.

Any state legislator or the Governor can request a health impact review.

Votes on Final Passage:
Senate     43   4
House      58   40   (House amended)
Senate     38   10   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 240, Laws of 2006 (SSB 6323) - Limiting exceptions to the reporting requirements under chapter 42.17 RCW.
Revised for 1st Substitute: Concerning campaign finance disclosure.

Campaign finance reporting is required of candidates for any political subdivision if the candidate receives $5,000 or more in contributions.

Votes on Final Passage:
Senate     39   3
House      97   1   (House amended)
Senate     44   2   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 244, Laws of 2006 (SB 6453) - Establishing a one thousand dollar minimum monthly benefit for certain plan 1 members of the public employees' retirement system and certain plan 1 members of the teachers' retirement system.

The $1,000 alternative minimum benefit in PERS 1 and TRS 1 is extended to members who have at least 20 years of service and who have been retired for at least 25 years. A 3 percent annual increase is added to the $1,000 minimum benefit.

Votes on Final Passage:
Senate     45   0
House      95   0
Effective:  July 1, 2006  
Click here for additional information.

Chapter 254, Laws of 2006 (SHB 2537) - Establishing a pilot program to allow employers to assist employees in completing applications for industrial insurance benefits.

The scope of the Department's initiative is amended to include encouraging the employer to provide assistance to the worker in completing the application for compensation.

By January 1, 2007, the Department must implement a pilot program in which employers assist workers in filing workers' compensation claims. The pilot program does not replace the current method of reporting. The pilot program expires on July 1, 2009.

The pilot program must consist of employers who voluntarily participate and represent a cross-section of industries, geographic areas, union and nonunion workers, large and small businesses, and other criteria established by the Department with input from business and labor leaders. The Department must develop requirements or rules for employers who participate in the pilot program, including provisions to ensure prompt reporting of the claim and communicating a worker's rights and responsibilities under the pilot program.

During the first year of the pilot, the number of participating employers is limited to 500. This number may be increased to 750 during the second year of the pilot. During the pilot program, the Department must consider steps to address the unique needs and issues of small employers.

The requirement for the Department to develop and make statutory recommendations by December 1, 2006, is eliminated and the due date for the Department's report to the Legislature is extended to December 1, 2007, and December 1, 2008. The report must include results from the pilot program and whether additional statutory changes are needed.

Votes on Final Passage:
House      97   1
Senate     45   2
Effective:  June 7, 2006  
Click here for additional information.

Chapter 256, Laws of 2006 (HB 2671) - Providing excise tax relief by modifying due dates and eliminating an assessment penalty.

Taxpayers filing monthly excise tax returns are required to report and pay taxes by the 25th of the month rather than the 20th. This change applies to tax returns due after July 31, 2006.

The 5 percent penalty for a billing of unpaid state excise taxes applies only if there is a "substantial underpayment." A substantial underpayment occurs when the payment is less than 80 percent of the tax due and the amount of underpayment is at least $1,000. This change applies to tax assessments originally issued after June 30, 2006.

If a taxpayer uses the automated clearinghouse debit procedure for an EFT, the payment will be deemed to have been received on the due date if the taxpayer initiates the transfer on or before 11:59 p.m. Pacific time on the due date with a payment effective date on or before the next banking day after the due date. A legislative findings section recites an understanding of the automated clearinghouse procedure. These EFT provisions apply to payments due after July 31, 2006.

Votes on Final Passage:
House      98   0
Senate     47   0   (Senate amended)
House      98   0   (House concurred)
Effective:  June 7, 2006
               August 1, 2006 (Sections 1-4)
               July 1, 2006     (Sections 6 and 7)  
Click here for additional information.

Chapter 257, Laws of 2006 (ESHB 2680) - Purchasing service credit in plan 2 and plan 3 of the teachers' retirement system for public education experience performed as a teacher in a public school in another state or with the federal government.

Members of TRS 2/3 may make a one-time purchase of up to seven years of service credit for public education experience outside Washington's retirement systems. The education experience must have been covered by a government retirement plan, and the member must have earned at least five years of service credit in TRS 2/3. In addition, the member must not be receiving, or be eligible to receive, a retirement benefit from the other plan.

The service credit purchased is considered membership service in TRS 2/3, and it thus may be used to qualify the member for retirement or early retirement. The member must pay a cost for the service credit equal to the actuarial value of the increase in value of the member's benefits. A member that purchases out-of-state service credit may not use credit in other state's retirement systems for the purposes of qualifying for retirement in Washington.

A member may pay for all or part of the cost of a service credit purchase with an eligible rollover from an eligible qualified retirement plan. The Department of Retirement Systems is authorized to adopt rules to ensure that all transfers or rollovers used for the purchase of service credit comply with the Internal Revenue Code and regulations adopted by the federal Internal Revenue Service.

Votes on Final Passage:
House      96   0
Senate     44   0   (Senate amended)
House      98   0   (House concurred)
Effective:  January 1, 2007  
Click here for additional information.
Chapter 261, Laws of 2006 (SHB 3024) - Increasing the number of demonstration projects that may be authorized by the school district project review board.

The number of demonstration projects using alternative public works contracting procedures authorized by the Review Board and valued over $10 million is increased from 16 to 23. The Review Board must prepare and issue a report to the Advisory Board before January 8, 2007 regarding the use of alternative public works contracting procedures by school districts.

Votes on Final Passage:
House      96   0
Senate     47   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 262, Laws of 2006 (2SHB 3070) - Increasing nonprofit housing development capacity.
Revised for 2nd Substitute: Increasing nonprofit housing development capacity. (REVISED FOR PASSED LEGISLATURE: Increasing housing development capacity.)

The HFC's debt limit is increased to $4.5 billion.

Votes on Final Passage:
House      56   42
Senate     36    8    (Senate amended)
House                   (House refused to concur)
Senate                  (Senate receded)
Senate     38    9    (Senate amended)
House      82   16   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 270, Laws of 2006 (SHB 1650) - Addressing the failure to respond to citations and notices of infractions.
Revised for 1st Substitute: Decriminalizing refusal to sign citations and notices of infractions issued electronically or by mail. (REVISED FOR PASSED LEGISLATURE: Modifying civil and traffic infraction provisions.)

The requirement that a person who is cited for a traffic or other civil infraction or citation must sign the notice of infraction or citation is removed, and the refusal to sign such notices is decriminalized. The requirement that a person who is arrested for a traffic law violation punishable as a misdemeanor must sign a notice of written promise to appear in court in order to secure his or her release is removed. A person who receives a statement of his or her options and procedures for responding to a notice of civil infraction, and who thereafter fails to exercise one of those options in a timely manner, is guilty of a misdemeanor.

Votes on Final Passage:
House      98   0
Senate     48   0   (Senate amended)
House      95   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 272, Laws of 2006 (SHB 2033) - Modifying municipal business and occupation taxation.
Revised for 1st Substitute: Modifying the allocation of printing and publishing income for municipal business and occupation taxes.

Cities that impose B&O taxes after 2007 are required for the purposes of apportionment to allow businesses to allocate income from the activities of printing or publishing to the principal place in Washington from which the business is directed or managed.

Votes on Final Passage:
House      95   0
Senate     47   0
Effective:  January 1, 2008  
Click here for additional information.
Chapter 273, Laws of 2006 (HB 2544) - Authorizing project loans recommended by the public works board.

As recommended by the Board, 51 public works project loans totaling $181.7 million are authorized for the 2006 loan cycle. The 51 authorized projects fall into the following categories: (1) 11 domestic water projects totaling $33.2 million; (2) 31 sanitary sewer projects totaling $128.8 million; (3) three storm sewer projects totaling $10.1 million; and(4) six road projects totaling $9.6 million. The Board may reimburse for expenses incurred prior to the execution of a loan agreement if the project meets the following requirements: (1) the project replaces a water line over a creek; and (2) the project need and timeline are being determined by a state agency and the city within its boundaries.

Votes on Final Passage:
House      96   0
Senate     45   0   (Senate amended)
House      97   0   (House concurred)
Effective:  March 28, 2006  
Click here for additional information.
Chapter 275, Laws of 2006 (SHB 2569) - Lowering the interest rate for the property tax deferral program.

The interest rate on deferred property taxes is reduced to 5 percent. The Department of Revenue is required to study and report on the adequacy and appropriateness of the interest rate in accomplishing the intent of the property tax deferral program.

Votes on Final Passage:
House      95   1
Senate     49   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 279, Laws of 2006 (ESHB 2884) - Concerning the use of reclaimed water.

By no later than the end of 2010, the departments of Ecology and Health are required to adopt rules for reclaimed water use. These rules must be adopted in consultation with an advisory committee made up of interested stakeholders.

The rules must address all aspects of reclaimed water use, including industrial uses, surface percolation, and stream flow augmentation. Two interim progress reports must be delivered to the Legislature prior to the final adoption in 2010.

Upon final adoption, the roles played by the Department of Health in the management and regulation of reclaimed water, other than graywater, will be conditional on the outcome of the rules adopted by the Department of Ecology. The Department of Health's new roles will be defined by the adopted rules.

The definition of "constructed treatment wetlands" is changed to exclude stormwater and wastewater and include polishing and aesthetics.

Votes on Final Passage:
House      78   19
Senate     46    0   (Senate amended)
House      98    0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 280, Laws of 2006 (HB 3019) - Clarifying the role of a chief financial officer in a charter county.

The provision pertaining to the county auditor or chief financial officer as ex officio deputy state auditor is changed in two ways. First, the reference to "chief financial officer" is modified to refer to "financial officer." Second, county auditors or designated financial officers in charter counties are designated as ex officio deputy state auditors.

Votes on Final Passage:
House      97   1
Senate     49   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 281, Laws of 2006 (SHB 3164) - Increasing the personal property exemption for the head of a family.
Revised for 1st Substitute: Increasing the head of a family personal property tax exemption amount.

The personal property tax exemption for a head of family is increased to $15,000.

This act implements the constitutional amendment in House Joint Resolution 4223. The act will take effect on January 1, 2007 only if a proposed constitutional amendment Article VII, section 1 is approved by the voters.

Votes on Final Passage:
House      97   0
Senate     43   1
Effective:  January 1, 2007  
Click here for additional information.
Chapter 285, Laws of 2006 (ESSB 6427) - Concerning schedules for the review of comprehensive plans and development regulations.

Smaller, slower-growing counties and cities are given additional time to complete their GMA updates. Counties with updates due in 2005, 2006, or 2007 that have a population of no more than 50,000 and a population increase of no more than 17 percent in the previous 10 years have 3 additional years to complete the update, including requirements to protect critical areas. Any cities with updates due in 2005, 2006, or 2007 that have a population of no more than 5,000 and a population increase of the greater of either 100 persons or no more than 17 percent in the previous 10 years, likewise have 3 additional years.

A comprehensive plan can be amended more often than once a year for a planned action, as long as all public participation and notice requirements are observed.

Votes on Final Passage:
Senate     45   0
House      98   0   (House amended)
Senate     48   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 286, Laws of 2006 (SSB 6441) - Changing the law related to judicial orders concerning distraint of personal property.

If there is probable cause to believe there is property within the county subject to distraint, any superior or district court judge in the county may, upon the request of the sheriff, county treasurer, or agent of the county treasurer, issue a warrant commanding the search for and seizure of the property described in the request for the warrant at the place described in the request for the warrant. The criminal rules of superior court and district court govern the procedure for issuance and execution and return of the warrant and for return of any property seized.

Votes on Final Passage:
Senate     45   0
House      96   1
Effective:  June 7, 2006  
Click here for additional information.
Chapter 294, Laws of 2006 (SB 6720) - Revising reporting requirements for criminal history record information.

Technical corrections to statutory language are made at the recommendation of the Task Force and consistent with legislation that passed the Legislature last year. Dependency record information and protection proceeding record information are no longer required to be sent to the WSP and references to this information are eliminated.

Votes on Final Passage:
Senate     43   0
House      98   0
Effective:  June 7, 2006  
Click here for additional information.

Chapter 298, Laws of 2006 (ESSB 6230) - Extending the state sales and use tax credit for certain public facilities districts.

The 0.033 percent sales and use tax that is credited against the state tax for a regional center is extended to public facilities districts created before July 1, 2006, in a county or counties in which there are no other public facilities districts on the effective date of the bill and in which the total population in the public facilities district is greater than ninety thousand that commences construction of a new regional center before February 1, 2007.

Votes on Final Passage:
Senate     47   1
House      98   0
Effective:  June 7, 2006  
Click here for additional information.

Chapter 299, Laws of 2006 (EHB 1383) - Requiring the public employees' benefits board to develop a health savings account option for employees.

The Public Employees Benefit Board must develop a health savings account with a high-deductible health plan as an option for employees who receive their health care coverage through the Health Care Authority.

Votes on Final Passage:
House      88   10
Senate     43    4
Effective:  June 7, 2006  
Click here for additional information.
Chapter 300, Laws of 2006 (SSB 6874) - Providing tax incentives for persons who extract, manufacture, or process timber.
Revised for 1st Substitute: Providing tax incentives for the timber and timber products industries.

The B&O tax rate is reduced for extracting or extracting for hire timber, or manufacturing or processing for hire logs, wood chips, sawdust, wood waste, pulp, recycled paper products, paper and paper products, dimensional lumber, and engineered wood products, plywood, wood doors, and wood windows. The reduced B&O rate also applies to wholesales of these products by the extractors and manufacturers. The reduced B&O tax rate is phased in: 0.4235 percent applies from July 1, 2006, to July 1, 2007, and 0.2904 percent applies from July 1, 2007, to July 1, 2024. The preferential tax rate expires July 1, 2024.

Taxpayers using the reduced tax rate are required to file an annual accountability survey and the survey and tax returns must be filed electronically. A taxpayer who fails to complete the required survey forfeits the benefits of the preferential rates and must pay interest, but not penalties, on the additional taxes due. The survey information must be compiled and provided to the Legislature annually. The fiscal committees of the Legislature are required to study the effectiveness of the preferential tax rate and to report to the Legislature by November of 2011 and 2023.

Starting July 1, 2007, a 0.052 percent surcharge is imposed on taxpayers using the reduced tax rate. The proceeds of the surcharge placed in a dedicated account and are used for implementation of the state's forests and fish report. The surcharge is suspended when the surcharge collections reach $8 million in the biennium, or the federal budget contains at least $2 million in appropriations to support tribal participation in forest and fish related activities. If the federal appropriation is less than $2 million then the surcharge rate is reduced.

Votes on Final Passage:
Senate     40   4
House      93   5   (House amended)
Senate     40   5   (Senate concurred)
Effective:  Contingent (Section 7)
               July 1, 2006 (Sections 1, 3, 4-6, and 8-12)
               July 1, 2007 (Section 2)  
Click here for additional information.
Chapter 303, Laws of 2006 (E2SSB 6630) - Protecting communities from individuals with behaviors that pose a threat of violence or sexual violence.
Revised for 2nd Substitute: Establishing the community protection program for persons with developmental disabilities.

The bill places the Community Protection Program in statute.

It sets forth criteria that a person with developmental disabilities must meet for placement in the Community Protection Program. Entry criteria includes, but is not limited to: conviction of or charged with a crime of sexual violence, including rape and child molestation; the commission of one or more violent offenses, including any class A felony, assault in the second degree, arson in the second degree, or robbery in the second degree; and constituting a current risk to others.

Prior to placement in the program, a person must first receive an assessment from a qualified professional to determine appropriateness for placement in the program.

A person is entitled to an administrative hearing under the Administrative Procedures Act if the person wants to appeal termination of community protection waiver eligibility, assignment to the community protection waiver, and denial of a request for a less restrictive community residential placement. Final decisions made by an administrative law judge may be appealed to superior court.

The process by which a program participant may seek placement in a less restrictive environment is codified. The process, enumerated within the bill, includes: success in complying with reduced supervision; remaining free of offenses that may indicate relapse for at least twelve months; and written verification of the participant's treatment progress.

DSHS's authority to take action against contracted providers of residential services who fail or refuse to comply with the terms of their contract is codified. Sanctions include decertifying or refusing to renew the certification of a provider, imposing conditions on the certification, or imposing civil penalties of not more than one hundred fifty dollars per day per violation.

Votes on Final Passage:
Senate     46   1
House      98   0   (House amended)
Senate     46   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 304, Laws of 2006 (4SHB 1483) - Creating an "investing in youth program."
Revised for 4th Substitute: Establishing a reinvesting in youth program.

Establishment of the Reinvesting in Youth Program
The Department of Social and Health Services Juvenile Rehabilitation Administration (JRA) is required to establish a Reinvesting in Youth Program that awards grants to counties for implementing research-based early intervention services that target juvenile justice-involved youth and reduce crime. The WSIPP and the JRA are required to develop the guidelines for the implementation of the program. Beginning in 2007, any county or group of counties may apply for participation in the program. In order to participate in the program, counties must meet all the following criteria:
(1)   Counties must match state moneys awarded for research-based early-intervention services with non-state resources that are at least proportional to the expected local government share of state and local government cost avoidance.
(2)   Counties must demonstrate that state funds allocated pursuant to the program are used only for the selected research-based services.
(3)   Counties must participate fully in the state quality assurance program to ensure fidelity of program implementation. If no state quality assurance program is in effect for a particular selected research-based service, the county must submit a quality assurance plan for state approval with its grant application. Failure to demonstrate continuing compliance with quality assurance plans must be grounds for termination of state funding.
(4)   Counties that submit joint applications must submit, for approval by the JRA, multi-county plans for efficient program delivery.

Counties participating in the program will have a portion of their costs of implementing the program reimbursed by the state. The amount of the reimbursement is dependent upon the calculation of cost savings to the state. In order to receive the funding, the service models utilized by the counties must meet all the following criteria:
(1)   There must be scientific evidence from at least one rigorous evaluation study of the specific service model that measures recidivism reduction.
(2)   There must be evidence that the specific service model's results can be replicated outside of an academic research environment.
(3)   The evaluation or evaluations of the service model must permit dollar cost estimates of both benefits and costs so that the benefit-cost ratio of the model can be calculated.
(4)   The public taxpayer benefits to all levels of state and local government must exceed the service model costs.

The JRA is required to form a technical advisory group to assist in the implementation of the program. The JRA is also required to establish a distribution formula to provide funding to local governments that are implementing the program. The JRA will report to the Legislature on the initial cost savings calculation methodology and the distribution formula on or before October 1, 2006.

In 2006, the WSIPP is required to publish a list of service models that are eligible for reimbursement through the Reinvesting in Youth Program. Also in 2006, the WSIPP is required to update the calculations of savings resulting from implementation of the program and a technical work group will review and comment on the WSIPP findings. The WSIPP is required to periodically update the methodology for cost savings calculations. The WSIPP must report the estimated savings and avoided costs to the Legislature.

Reinvesting in Youth Account
A Reinvesting in Youth Account is created in the state treasury, and moneys in the account may be spent only after appropriation. Expenditures from the fund may be used to reimburse local governments for implementation of the Reinvesting in Youth Program. The JRA will review and monitor expenditures made from this account.

The act does not create an entitlement for any county to receive funding under the Reinvesting in Youth Program. If specific funding is not provided for the act is null and void.

Votes on Final Passage:
House      98   0
Senate     47   0
Effective:  July 1, 2006  
Click here for additional information.
Chapter 305, Laws of 2006 (SHB 1510) - Modifying the property taxation of nonprofit entities.

The number of days a public assembly hall or meeting place may loan or rent its property for pecuniary gain or to promote business activities is increased from seven to fifteen days per year. Counties in which a public assembly hall or meeting place may be used for dance lessons, art classes, or music lessons for any number of days is increased from 10,000 to 20,000 in population. Any rents received must be used for capital improvements to the exempt property, maintenance and operation of the exempt property, or for exempt purposes.

Nonprofit nonsectarian character-building, benevolent, protective, and rehabilitative social service organizations in counties with less than 20,000 population may loan or rent their property for pecuniary gain or to promote business activities for up to 15 days per year if there is no private for-profit facility that could be used within 10 miles. These organizations may also loan or rent their property to a nonprofit community group or other nonprofit organization that might not qualify for exemption, for up to 15 days per year, if members of the community derive a benefit from the rental or use. Any rents received must be used for capital improvements to the exempt property, maintenance and operation of the exempt property, or for exempt purposes. The number of days a war veterans organization may loan or rent its property for pecuniary gain or to promote business activities is increased from three to 15 days per year. If nonprofit exempt property is transferred to a state or local government agency, no back taxes are due.

Votes on Final Passage:
House      96   0
Senate     47   0   (Senate amended)
House      95   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 309, Laws of 2006 (ESHB 2685) - Making changes to general provisions in the public safety employees' retirement system.

The list of job classes in the statutes governing eligibility requirements for the Public Safety Employees' Retirement System (PSERS) is replaced with a duty-based set of membership criteria. To be eligible for membership, employees must work full-time and hold a position: that requires completion of a certified criminal justice training course and which has the authority to arrest, investigate crimes, enforce the law, and carry a firearm; in which the primary duty is to ensure the custody and security of incarcerated individuals as a probation officer, corrections officer or jailer; that is a limited authority Washington Peace Officer; or in which the primary responsibility is to supervise employees who are eligible for membership under one of the previously listed membership criteria.

References to the PSERS system are added to provisions related to joining a second retirement plan, and to the retirement systems for which retirement benefits paid to beneficiaries of members who die in the line of duty are paid consistent with the federal Fallen Hero Survivor Benefits Fairness Act exempting them from federal income tax. Issues relating to PSERS employees are added to the responsibilities of the Select Committee on Pension Policy's public safety subcommittee.

Votes on Final Passage:
House      97   0
Senate     47   0   (Senate amended)
House                 (House refused to concur)
Senate                (Senate receded)
Senate     48   0
Effective:  March 29, 2006  
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Chapter 310, Laws of 2006 (SHB 2778) - Allowing tax deductions for nonprofit convention and tourism promotion corporations.
Revised for 1st Substitute: Exempting certain amounts received by nonprofit convention and tourism promotion corporations from business and occupation tax.

Payments received by nonprofit businesses from public entities for the purpose of promoting conventions and tourism are exempt from B&O tax. Exempt payments include eligible amounts received from the state, counties, cities, towns, municipal and quasi-municipal corporations, public corporations, port districts, and Indian tribes.

Votes on Final Passage:
House      96   0
Senate     47   0   (Senate amended)
House      98   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 311, Laws of 2006 (ESHB 2871) - Creating a regional transportation commission.
Revised for 1st Substitute: Creating a regional transportation commission. (REVISED FOR ENGROSSED: Modifying regional transportation governance provisions.)

The Regional Transportation Commission (Commission) is created with several powers and duties related to evaluating regional transportation issues and developing a regional transportation governance proposal. The Commission is comprised of nine members, all private citizens appointed by the Governor, plus the Secretary of the DOT as a nonvoting member.

The Commission must:
  • evaluate a broad range of regional transportation governance issues, including transit agency boundary adjustments, consolidation options, and coordination of all agencies (including the DOT) that have a role in regional transportation planning, funding, and operations;
  • develop a proposal that includes an option for forming a permanent, directly elected regional transportation governing entity, as well as the governing entity's finance strategy, authorized revenue sources, and planning authority; and
  • submit its governance proposal to the 2007 Legislature.

The RTID statutes are modified in several respects.

  • The RTID is allowed to change its boundaries to be contiguous with regional transit authority boundaries. The peninsula portion of Pierce County is prohibited from inclusion in the RTID.
  • The RTID must submit its finance plan as a common ballot measure along with a Sound Transit Phase 2 plan at the 2007 general election, and is permitted to have a ballot title exceeding 75 words.
  • The local match contribution required of local jurisdictions toward certain RTID projects is reduced from one-third to 15 percent.
  • The authorized sales and use tax that the RTID may impose is capped at 0.1 percent.
  • The RTID's authority to impose a motor vehicle excise tax is increased to 0.8 percent, and the RTID may spend MVET revenue on any project contained in its plan.
  • The RTID's tolling authority is broadened and specifically includes either or both Lake Washington bridges.
  • The RTID keeps the interest on its state treasury accounts.
  • The list of eligible projects which the RTID may fund is expanded to permit operations, preservation, and maintenance of tolled facilities backed by bond contracts, and is required to include operational expenses for traffic mitigation relating to construction mitigation arising from specific projects in the RTID plan.

Neither the RTID nor Sound Transit may submit a new ballot measure to the voters prior to the 2007 general election. Each entity must submit a finance plan to voters in 2007, and neither plan may be approved unless the other plan is also approved. For a county to participate in a RTID plan, the county legislative authorities must adopt an ordinance indicating that county's participation in the plan.

After December 1, 2007, King, Pierce, and Snohomish counties may establish single-county Regional Transportation Investment Districts and transportation benefit districts for broadly defined local transportation projects.

The RTID plan must contain an SR 520 proposal that provides full project funding for seismic safety and corridor connectivity on the SR 520 project between Interstate 5 and Interstate 405. Prior to commencing construction on the 520 bridge project, the DOT must also have a record of decision providing reasonable assurances to affected cities and towns that the project impacts of the SR 520 bridge replacement and HOV project will be addressed in some manner.

An expert review panel is established for the Alaskan Way viaduct and Seattle seawall replacement project and the State Route 520 bridge replacement and HOV project to review project finance plans and implementation plans on each project and report its findings by September 1, 2006, to the Governor. Seattle voters or the Seattle City Council must indicate the choice of preferred alternative on the Alaskan Way project by early November 2006. The Governor must make a finding of whether the finance and project implementation plans on the Alaskan Way and SR 520 projects are feasible and sufficient.

Environmental and financial planning work must be completed on both the Alaskan Way viaduct and Seattle seawall replacement project and the State Route 520 bridge replacement and HOV project before the Department of Transportation may commence construction on either project.

Votes on Final Passage:
House      71   26
Senate     36   10    (Senate amended)
                             House Refuses to Concur
Senate     38    7    (Senate amended)
House      70   28   (House concurred)
Effective:  June 7, 2006
               July 1, 2006 (Section 23)  
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Chapter 312, Laws of 2006 (HB 2879) - Modifying the electronic administration of the real estate excise tax.

Fees collected by the county treasurer for real estate transaction documents are revised. When REET liability is zero or less than $5, a combined tax and fee of $5 is collected by the county treasurer. The fee portion of this charge is used to defray the costs of processing tax affidavits. An additional fee of $5 is imposed on all real estate transactions, whether tax is due or not, and remitted to the State Treasurer for deposit in the state REET Electronic Technology Account. Distributions and use of money from this state account are not changed. The separate $5 fee for the county treasurer's REET Electronic Technology Account is eliminated.

If a county makes expenditures for electronic affidavit processing using money received from the state REET technology fee, those expenditures are not also eligible for reimbursement from the Department of Revenue grant program.

County treasurers are required to pay state REET revenue to the State Treasurer by noon on the last working day of each month.

Votes on Final Passage:
House      97   0
Senate     47   0
Effective:  March 29, 2006  
Click here for additional information.

Chapter 314, Laws of 2006 (ESB 5330) - Creating the economic development grants program. (REVISED FOR PASSED LEGISLATURE: Regarding an inventory of economic development grant opportunities.)

The Department of Community, Trade, and Economic Development is to create an inventory of grant opportunities for state agencies, local governments, and other community organizations engaged in economic development activities. The department may facilitate efforts to attract grants and major events.

Votes on Final Passage:
Senate     37   0
House      86   11   (House amended)
Senate                  (Senate refused to concur)
House                   (House insisted on position)
Senate     44   2    (Senate concurred)
Effective:  June 7, 2006  
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Chapter 315, Laws of 2006 (ESB 6152) - Regarding penalties for violations of the public disclosure act.

The PDC's authority to assess penalties is raised to $1,700 for a single violation and $4,200 in the aggregate for multiple violations contained in a single complaint or hearing.

Votes on Final Passage:
Senate     45   3
House      97   1
Effective:  June 7, 2006  
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Chapter 318, Laws of 2006 (SSB 6247) - Providing uniform administration of locally imposed motor vehicle excise taxes.

A standard administrative structure for the calculation and administration of any future, locally imposed MVET is established.

Base vehicle valuation is defined at 85 percent of Manufacturer's Suggested Retail Prices (MSRP) for all taxable vehicle use classes other than heavy and medium trucks. Discounting MSRP by 15 percent generally equates to the average differential between MSRP and actual purchase price paid on new vehicle sales. Base value for heavy and medium trucks is defined by latest purchase price.

Two new market based, vehicle depreciation schedules are created. One schedule is for use in valuing heavy and medium trucks and based on the average, annual national market depreciation for all vehicles in the class. The other schedule is to be used for all other vehicles and represents average, annual western-region market depreciation for passenger vehicles and light trucks.

Provisions governing the administrative role of county auditors and the department of licensing (DOL) are also codified including issuance of receipts, refunds, and distribution of revenue to the taxing authority. DOL charges for administration of the tax are capped at 1 percent of tax collections.

Lastly, redundant provisions and provisions rendered obsolete by Initiatives 695 and/or 776 are repealed.

Votes on Final Passage:
Senate     44   0
House      95   0
Effective:  June 7, 2006  
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Chapter 319, Laws of 2006 (SB 6280) - Removing the irrevocable dedication requirement for exemption from property taxes for nonprofit entities.

The irrevocable dedication requirement for property tax exemption for nonprofit organizations is eliminated.

Votes on Final Passage:
Senate     42   0
House      98   0
Effective:  June 7, 2006  
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Chapter 320, Laws of 2006 (SSB 6362) - Modifying voter registration provisions.

The auditor is required to publish voter challenges on the auditor's web-page within 72 hours of receipt. The auditor must notify any person who requests to receive notification of challenges immediately after publication. Any person, upon request, may receive copies of all materials provided to the challenged voter by the county auditor.

Challenges initiated by a registered voter against a voter who registered to vote less than 60 days before the election, or who changed residence less than 60 days before the election and didn't transfer his or her registration, must be filed no later than ten days before the election, or within ten days of the voter being added to the registration database, whichever is later. Challenges initiated by a registered voter against all other voters must be filed no later than 45 days before the election. A challenged voter may transfer or re-register until the day before the election.

A voter challenge must be based on personal knowledge, having exercised due diligence to personally verify the evidence that: the voter has been convicted of a felony and civil rights have not been restored; the voter has been declared mentally incompetent by a judge; the voter does not live at the residential address provided on his or her registration; the voter is or will not be 18 by the election; or the voter is not a citizen. Challenges based on a felony conviction discovered by the county auditor or Secretary of State are resolved under a different statute.

If the challenge is based on an allegation that the voter does not live at the address provided, the challenger must provide the voter's actual residence, or submit evidence that the challenger exercised due diligence to verify that the challenged voter does not reside at the address provided. The bill specifies the minimum actions necessary for a challenger to establish that he or she exercised due diligence, including obtaining a signed affidavit from a person who owns, manages, resides, or is employed at the address as listed on the registration form.

The challenger must provide the factual basis for the challenge and may not base the challenge on unsupported allegations or allegations by anonymous third parties. A challenge may be dismissed by the auditor if it is not in proper form or is incomplete on its face. A challenge may be prepared using an official electronic challenge form template provided by the auditor or the Secretary of State. The form must be printed and signed by the challenger.

If the challenge is filed before the ballot has been received, the ballot must be treated as a challenged ballot. If the challenge is filed after the ballot has been received, the challenge cannot affect the current election. If the challenge is filed at least 45 days before the election, the county auditor presides over the hearing. If the challenge is filed less than 45 days before the election, the canvassing board presides over the hearing.

The auditor must provide notice by certified mail of the challenge to the challenged voter, and if the challenge is based on the residential address, the auditor must give notice of exceptions to the residency requirement allowed by the constitution and statute (nontraditional address and excused absence from the state due to military service, college, prison, and navigation of high seas).

If the challenger fails to prove by clear and convincing evidence that the registration is improper, the challenge must be dismissed and the ballot must be counted. If the challenge is based on residency and the canvassing board sustains the challenge, then the challenged voter must be permitted to correct his or her registration and any races or measures on the challenged ballot that the voter would have been qualified to vote for had his or her registration been correct shall be counted.

A residential address may be a "traditional address" or a "non-traditional address." Either way, the residential address must identify the actual physical residence of the voter with sufficient detail to allow the voter to be assigned to the proper precinct and to be located to confirm his or her residence. Voters with a non-traditional address are no longer permitted to use the address of a county courthouse, city hall, or other public building as his or her address for voter registration purposes. A voter without a traditional address must provide a valid mailing address and meet the 30 day residence requirement in Article VI, section 1 of the state Constitution.

Votes on Final Passage:
Senate     40   5
House      94   4   (House amended)
Senate                (Senate concurred in part; refused to concur in part)
House      98   0   (House amended)
Senate     47   1   (Senate concurred)
Effective:  June 7, 2006  
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Chapter 321, Laws of 2006 (E2SSB 6480) - Eliminating the department of transportation's exemption from the public works apprenticeship utilization requirements.
Revised for 2nd Substitute: Modifying public works apprenticeship utilization requirements.

Effective July 1, 2007, DOT is no longer exempt from apprenticeship use requirements. DOT's required percentage use of apprenticeship labor hours is phased in over three years. DOT is required to use 10 percent apprenticeships on projects over $5 million beginning July 1, 2007. Required apprenticeship use increases to 12 percent on projects over $3 million beginning July 1, 2008, and 15 percent on projects over $2 million beginning July 1, 2009.

The Secretary of DOT is required to adjust the apprenticeship utilization percentage requirement if there is a demonstrated lack of apprentices in a specific geographic area, or a disproportionally high ratio of material costs to labor hours. The Secretary must also establish and meet regularly with an advisory committee to develop the process to be used to adjust such requirements and discuss other implementation issues. The committee is to have state-wide representation, with equal numbers of representatives of contractors and labor, and at least one representative of a contractor with less than 35 employees. A report from the advisory committee on the impact of apprenticeship requirements on, and the availability of apprentices for, transportation projects statewide is due to the legislature by January 1, 2008.

The intent section includes language supporting returning veterans through programs such as "Helmets to Hardhats." The Washington State Apprenticeship Training Council is directed to conduct training and outreach work with returning veterans to assist with the transition from military service to the construction industry.

Votes on Final Passage:
Senate     30   11
House      71   27
Effective:  June 7, 2006  
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Chapter 322, Laws of 2006 (SB 6504) - Prohibiting public hospital district employees from serving as commissioners.

A current employee of a public hospital district may not hold office as a commissioner.

Votes on Final Passage:
Senate     47   0
House      97   0
Effective:  June 7, 2006  
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Chapter 328, Laws of 2006 (SSB 6555) - Providing research and services for special purpose districts.

The bill adds special purpose districts as a category of local government that may be served by the Municipal Research Council. An additional portion of the liquor tax is transferred to the new special purpose district research services account. The amount would be specified in the biennial appropriations act. Funds from this account must only be spent on research for special purpose districts. The Municipal Research Council must report on the consulting and research services provided to special purpose districts to the Joint Legislative and Audit Review Committee by June 30, 2010.

Votes on Final Passage:
Senate     47   0
House      98   0   (House amended)
Senate     45   0   (Senate concurred)
Effective:  June 7, 2006  
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Partial Veto Summary: The Governor vetoed section 3 which provided funding for the program through a change in the distribution of Liquor Revolving Fund Revenues. The Governor also vetoed section 139 of the operating budget (ESSB 6386) which appropriated these funds.

Chapter 329, Laws of 2006 (ESSB 6566) - Revising commute trip reduction provisions.

The CTR task force is replaced with the CTR board, and the sunset date for the CTR Board is eliminated. The board consists of sixteen members, which include: (1) the Secretary of Transportation or designee; (2) a representative from the Office of the Governor or designee; (3) the director or designee of one of the following agencies, Department of General Administration, Department of Ecology, or Department of Community, Trade, and Economic Development; (4) three representatives from cities and towns or counties; (5) two representatives from transit agencies; (6) two representatives from a participating Regional Transportation Planning Organization (RTPO); (7) four representatives from employers or owners of major worksites in Washington; and (8) two citizens appointed by the Governor. The CTR board must advise Washington State Department of Transportation (WSDOT) in the adoption of the rules to govern the new program. The board is provided with a number of duties including, but not limited to: creating a state CTR plan, establishing statewide program goals, and establishing guidelines and deadlines for creating and updating local CTR plans.

Each county containing an urban growth area (UGA), and each city within an urban growth area with a state highway segment exceeding the 100 person hours-of-delay threshold calculated by the WSDOT, as well as those counties and cities located in any contiguous urban growth areas, are required to adopt a CTR plan and ordinance for major employers in the affected urban growth area. Also, those jurisdictions located within a UGA with a population greater than seventy thousand that adopted a commute trip reduction ordinance before 2000 must participate in the program.

Affected urban growth areas that had not previously implemented a CTR plan are exempted from the planning and ordinance requirements if the state has funded solutions to state highway deficiencies to address the area's congestion.

Counties, cities, and towns that do not meet the above criteria may voluntarily participate in the CTR program. State financial support for jurisdictions participating on a voluntary basis must be limited to areas that meet criteria to be developed by the CTR Board.

Jurisdictions containing a major employment installation in a county with an affected growth area are required to adopt a CTR plan and ordinance for major employers in the major employment installation. The ordinance must provide an appeals process for major employers, who as a result of special characteristics of their business or location would be unable to meet the requirements of the ordinance.

RTPOs that contain an affected urban growth area are required to adopt a CTR plan for the region consistent with rules and deadlines established by WSDOT. The minimum requirements for the regional plan are provided. The plan must be developed in collaboration with all affected jurisdictions and reviewed and approved by the CTR board. Regions without an approved plan are not eligible for state CTR funds.

Counties, cities, and towns as part of the CTR plan may identify a current or new activity center as a growth and transportation efficiency center and establish a transportation demand management (TDM) program in the designated area. In order to be eligible for state funding, designated growth and transportation efficiency centers must be certified to meet specified criteria by the applicable RTPO. The content for TDM programs for a growth and transportation efficiency center are defined. A jurisdiction that has established growth and transportation efficiency centers must provide support for vehicle trip reduction activities, and adopt policies, ordinances and funding strategies that will lead to attainment of program goals in the center.

State agencies that are co-located at a worksite in an affected urban growth area, and when combined employ over 100 full time employees, must develop and implement a joint CTR program. The worksite will be treated as a major employer worksite.

Not more than ninety days after the adoption of a jurisdiction's CTR plan, each major employer in the jurisdiction must perform a baseline measurement consistent with rules adopted by WSDOT. No more than ninety days after receiving the results of the baseline measurement, each major employer must develop a CTR plan and submit it for review to the jurisdiction. Not more than ninety days after being approved by the jurisdiction, the employer must implement the CTR program.

Employers implementing CTR programs are required to make a good faith effort to achieve the goals in the county CTR plan. Factors considered in determining whether a good faith effort has been made are modified to include: (1) whether the employer has notified the jurisdiction of its intent to substantially change its program and has either received approval of the jurisdiction to do so, or has acknowledged that the program may not be approved without additional modifications; and (2) the employer has provided adequate information and documentation of implementation when requested by the jurisdiction. Jurisdictions are required to review an employer's progress every two years instead of on an annual basis.

The CTR Board reports to the Legislature and the Governor. The CTR Board is required to determine the allocation of program funds made available. Various legislative findings are made.

Votes on Final Passage:
Senate     44   0
House      98   0   (House amended)
Senate                (Senate refused to concur)
House      98   0   (House amended)
Senate     47   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 332, Laws of 2006 (ESSB 6787) - Modifying funding for local government passenger ferry service.
Revised for 1st Substitute: Providing funding for local government passenger ferry service.

Washington State Department of Transportation (WSDOT) is directed to continue the existing Vashon to Seattle passenger-only ferry (POF) service until it is assumed by a county ferry district. Counties wishing to assume that route must submit a business plan to the Legislature and the Governor. If the Governor approves the business plan, the county ferry district is eligible for grant funding. A county ferry district assuming the Vashon to Seattle POF route must honor existing labor agreements, may not contract out operations, and must begin operations July 1, 2007.

The Office of Financial Management is directed to contract to develop a non-state government operated back-up plan for continuing service on the Vashon to Seattle POF route.

WSDOT is directed to collaborate with new and potential POF service providers for terminal operations at its terminal facilities.

WSDOT is required to sell or otherwise dispose of the state passenger ferries Snohomish and Chinook if the business plan to assume the Vashon to Seattle POF route is approved by the Govenor. The proceeds of the sales are to be deposited into the passenger ferry account.

WSDOT is directed to establish a ferry grant program. Eligible for the grants are county ferry districts and public transportation benefit areas. Priority must be given to grant applicants that provide continuity of existing passenger-only service and provide local or federal matching funds.

Before seeking grant funding for the Kingston to Seattle POF route, a Public Transportation Benefit Area must receive governor approval on a business plan submitted to the Legislature and the Governor.

County ferry district statutes are broadened so that they may be formed in any county. In addition, the county ferry district statutes apply to all ferries and not just passenger-only ferries.

The Utilities and Transportation Commission moratorium on accepting new applications for additional private POF service into King County is extended by one year.

Votes on Final Passage:
Senate     46    1
House      61   37   (House amended)
Senate     43    3   (Senate concurred)
Effective:  June 7, 2006  
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Chapter 335, Laws of 2006 (SB 6816) - Allowing county cemetery districts to include areas within cities and towns.

The 10,000 population limit for cities that can be included in a cemetery district is removed.

Votes on Final Passage:
Senate     47   0
House      97   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 336, Laws of 2006 (SB 6826) - Exempting fees and charges for public transportation services from public utility taxes.

This bill allows fare-box revenue collected by county, city, and public transportation that benefit district transit agencies to also be deducted from the gross receipts upon which state public utility taxes are levied.

Votes on Final Passage:
Senate     46   0
House      98   0   (H
ouse amended)
Senate     48   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 337, Laws of 2006 (ESSB 6839) - Modifying transportation accounts and revenue distributions.

Planned, future transfers in support of the 2005 financial plan are codified as statutory distributions. Two funds are also created in support of the financial plan including the Freight Mobility Multimodal Account and the Regional Mobility Grant Program Account. Both accounts are subject to appropriation and retain their own interest.

In response to the passage of I-900 and subsequent elimination of the Transportation Performance Audit Board (TPAB), all references to TPAB are removed from ESSB 6103. Language concerning legislative intent to reprioritize the state transportation financial plan if a regional transportation funding plan is not adopted by 2007 is also repealed.

Lastly, Capron Act fuel tax refunds are capped at the twenty-three cents per gallon fuel excise tax rate. Fuel tax receipts above the twenty-three cents per gallon excise tax rate from the affected counties are deposited to the Puget Sound Ferry Operations Account as a means to limit future ferry-fare increases to two-and-one-half percent per biennium.

Votes on Final Passage:
Senate      26   15
House       92     6   (House amended)
Senate                   (Senate refused to concur)

Conference Committee
House       92   6
Senate      44   2

Effective:   March 24, 2006 (Section 7)
                July 1, 2006 (Section 1 and 11)
                June 7, 2006  
Click here for additional information.

Chapter 339, Laws of 2006 (E2SSB 6239) - Changing provisions relating to crimes.
Revised for 2nd Substitute: Changing provisions relating to controlled substances.

Substance Abuse Reduction: Counties who impose the tax authorized in SB 5763 are eligible to seek up to $100,000 from the Legislature for additional mental health or substance abuse treatment programs for persons addicted to methamphetamine, beginning in fiscal year 2008 and ending in fiscal year 2010. Three pilot projects are established to provide rural drug task forces to the three parts of the state. Each pilot project will receive four additional deputy sheriffs, two deputy prosecutors, and one clerk. Legislative intent is declared to provide the pilot projects with $1.6 million in funding, and to provide a minimum of $4 million in funding for multijurisdictional task forces currently in operation. The definition of "neglect" of vulnerable adults and children is amended to include exposure to meth or ingredients of meth when there is intent to manufacture meth. CTED will review funding sources for local meth action teams through the Washington State meth initiative and drug task forces to determine their adequacy and report its findings to the Legislature by November 2006. However, if funding is not provided for the CTED study, the section is null and void.

Authority and Discretion of Local Health Officers: When they have probable cause, local health officers (LHOs) in consultation with law enforcement officers are granted the authority to seek a warrant to conduct inspections of property. LHOs are granted the authority to issue emergency, seventy-two-hour orders when they determine the order is necessary to protect the public health, safety, or the environment.

In addition to condemning or demolishing contaminated property, city or county officials may take additional actions such as prohibiting use, occupancy, or removal of property, or order its decontamination. These actions are appealable; however, restrictions on use, occupancy, or removal of property are enforceable while the appeal is pending. City and county personnel, and their cleanup contractors, must comply with the local health officer's orders.

It is a misdemeanor for anyone to enter property after an order declaring it to be unfit has been issued. Exceptions are provided for governmental officials performing their duties, occupants recovering uncontaminated property, and for others as authorized by a public health officer or superior court.

In addition to decontamination, the owners or authorized contractors are required to submit written work plans for demolition or disposal activities. Property owners are responsible for: 1) the costs of any property testing which may be required to demonstrate the presence or absence of hazardous chemicals; and 2) the costs of the property's decontamination, demolition, and disposal expenses, as well as costs incurred by the local health officer. Within 30 days of issuing an order of unfitness, the local health officer must establish a time period in which decontamination, demolition, and disposal will be completed and fines or legal actions may be taken upon failure to meet the deadline.

Modification to Certification Requirements for Cleanup Workers: The DOH authority to deny, suspend, revoke, or place restrictions on certificates is expanded to include: 1) failing to perform decontamination, demolition, or disposal work using department certified decontamination personnel; 2) failing to perform work that meets the requirements of the local health officers; 3) failing to properly dispose of contaminated property; 4) failing to cooperate with the DOH or the local health officer; or 5) failing the evaluation and inspection of decontamination projects pursuant to section 208 of this act. Additionally certified workers' fraudulent acts or acts of misrepresentation are expanded to include: 1) applying for, or obtaining a certification, recertification, or reinstatement; 2) seeking approval of a work plan; and 3) documenting completion of work to the DOH or local health officer.

Department of Health Cleanup Evaluations: The DOH must modify its rules to include methods for the testing of porous and nonporous surfaces. The DOH must also adopt rules about independent third party sampling to verify satisfactory decontamination of property.

The DOH may annually evaluate a number of the property decontamination projects performed by licensed contractors to determine the adequacy of the decontamination work. If a project fails the evaluation and inspection, the contractor is subject to a civil penalty and license suspension and is prohibited from performing additional work until deficiencies have been corrected.

Department of Ecology: DOE, in consultation with local health jurisdictions and their corresponding city or county governments, will conduct a pilot program to demonstrate application of existing MTCA and other available resources to cleanup methamphetamine contaminated property for public purpose. DOE will report to the Legislature on the effects of the pilot program by January 1, 2007.

Sentencing Modifications: Sentence enhancements for ranked drug offenses are to be served consecutively. Drug Offender Sentence Alternative offenders will serve 12 months or up to the half point of a sentence, whichever is greater. When the court determines that chemical dependency contributed to the felony offense, the offender, not just drug offenders, must receive a chemical dependency screening report prior to sentencing.

Washington State Institute for Public Policy: WSIPP must conduct two studies and report its findings to the Legislature by January 1, 2007. First, WSIPP will study neighboring states criminal sentencing provisions related to methamphetamine to determine if these provisions provide an incentive for traffickers and manufacturers to relocate to Washington. Second, the WSIPP will study DOSA's impact on recidivism rates for offenders participating in DOSA relative to offenders receiving community treatment or no treatment at all.

Votes on Final Passage:
Senate      42   0
House       98   0   (House amended)
Senate      48   0   (Senate concurred)

Effective:   June 7, 2006
                January 1, 2007 (Section 108)  
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Chapter 344, Laws of 2006 (ESB 6236) - Changing election dates and deadlines.

The date of the state primary election is moved to the third Tuesday in August. A number of other election-related events and deadlines are changed to conform with the new primary date as follows:

Candidate Filing. The date for filing a declaration of candidacy is changed from the fourth week in July to the first week in June. Minor party and independent candidate nominating conventions must occur between the first and second Saturdays in May. Election events are conditioned on circumstances occurring before or after the eleventh Tuesday before the primary rather than the sixth Tuesday.

Service and Overseas Voters. County auditors must mail ballots to overseas and service voters at least 30 days before any election. Requests for ballots made after the date required for mailing must be processed immediately.

Special Elections. Resolutions calling for a county, city, town, or district special election must be presented to the county auditor at least 52 days prior to the special election, rather than 45 days. If the special election is to be held on the day of the primary or the general election, the resolution must be filed with the auditor 84 days before the election.

Presidential Preference Primary. In order to appear in the presidential preference primary, nomination petitions for presidential candidates must be filed with the Secretary of State no later than 60 days before the presidential preference primary, rather than 39 days before.

Certification of Results. A county canvassing board must complete the canvass and certify the results of a primary or special election in 15 days.

Campaign Reporting. Candidates who are successful in the primary election and any continuing political committees must file a report of contributions and expenditures to the PDC the tenth day of the first month after the primary. Contribution and expenditure reporting requirements are changed to begin on the fifth month, rather than the fourth month, prior to a general election.

Post-session Campaign Freeze. The end of the campaign fund-raising freeze is changed from 30 days after session to the day of final adjournment.

Votes on Final Passage:
Senate      37   11
House       94    3
Effective:   January 1, 2007  
Click here for additional information.
Chapter 349, Laws of 2006 (E2SHB 2418) - Increasing the availability of affordable housing.

The Legislature may authorize a transfer of up to $25 million from the General Fund into the Washington Housing Trust Fund for the fiscal year ending June 30, 2006.

Any appropriated funding will be included in the calculation of annual funds available to the DCTED for determining administrative costs.

Funds will be distributed using the DCTED's competitive process for the Housing Trust Fund except for the following:
  • any funds applied to the Homeless Family Services Fund;
  • any funds appropriated to weatherization administered through the Energy Matchmakers

Program;

  • any funds appropriated for a housing voucher program; and
  • any funds for grower-provided on-farm housing.

The DCTED must report annually by December 31, 2007, to the House Housing Committee and the Senate Financial Institutions, Housing and Consumer Protection Committee on how funds were utilized on a county or city specific basis.

Interagency Council on Homelessness
The Interagency Council on Homelessness (IACH) is created which will be made up of policy level representatives from five state agencies. The IACH will work to create greater levels of interagency coordination regarding programs serving homeless households, identify policies that may contribute to homelessness, and recommend policies to improve practices or align resources related to homelessness.

Washington Homeless Client Management System
The DCTED is required to implement the Washington Homeless Client Management System by December 31, 2009. The system will include information from the Washington homeless census, from state agencies, and from organizations providing services to the homeless population. Information will be collected in a manner consistent with federal informed consent guidelines regarding human research. The information system is to serve as an on-line information and referral system.

Local governments must develop a capacity for continuous case management to assist homeless persons.

Low-Income Housing Waiting-List Study
The DCTED is directed to conduct a study by December 31, 2007, to evaluate the potential development of a low-income housing waiting list database.

Affordable Housing Database
The DCTED is required to create or purchase and implement a database which includes information on all publicly supported affordable rental units in the state by December 31, 2009.

Housing Stakeholder Feedback
Entities receiving state housing funds, or financing through the Housing Finance Commission, are asked to provide feedback to the Legislature regarding planning and reporting requirements, as well as other housing-related legislative recommendations.

Joint Housing Authority Dissolution
Joint Housing Authorities may be dissolved pursuant to substantially identical resolutions or ordinances of the legislative authority of each of the counties or cities that previously authorized that joint housing authority. Assets, obligations, and liabilities shall be distributed consistent with specific considerations outlined in statute.

Null and Void
Implementation of the activities of the act is contingent upon specific funding for the specific activities of the act from the General Fund.

Votes on Final Passage:
House     72   24
Senate    48     1   (Senate amended)
House     74   24   (House concurred)
Effective: June 7, 2006  
Click here for additional information.

Partial Veto Summary: The section requiring the Department of Community, Trade, and Economic Development (DCTED) to conduct a study to evaluate the potential development of a low-income housing waiting list database was vetoed. The section requiring DCTED to create or purchase a master affordable housing database that includes information about affordable rental housing stock was also vetoed. The null and void clause was vetoed.

Chapter 350, Laws of 2006 (SHB 2688) - Addressing the law enforcement officers' and fire fighters' retirement system plan 1.

The LEOFF 1 60 percent of final average salary cap on retirement allowances is removed.

The Governor must establish a seven member joint executive task force to study funding postretirement medical benefits for LEOFF 1. The membership consists of: the Director of the Department of Retirement Systems; the Administrator of the Health Care Authority; the State Actuary; one representative of Washington cities, one representative of Washington counties, and one active and one retired member of LEOFF 1, each appointed by the Governor. The intent of the task force is to create a funding mechanism to assist employers in providing postretirement medical benefits to LEOFF 1 members. The task force must make recommendations for proposed legislation to the appropriate committees of the Legislature by September 1, 2006, and submit a final report no later than December 1, 2006. The task force expires December 1, 2006.

Votes on Final Passage:
House      78   19
Senate     34    6    (Senate amended)
House      75   23   (House concurred)
Effective:  July 1, 2006  
Click here for additional information.
Chapter 351, Laws of 2006 (SHB 2933) - Addressing death benefit payments for law enforcement officers' and fire fighters' retirement system, plan 2.

The survivor of a LEOFF 2 member or retiree who dies as a result of occupational disease arising from employment is eligible to receive a $150,000 death benefit, like survivors of LEOFF 2 members or retirees who die from injuries sustained in the course of employment.

Votes on Final Passage:
House      96   0
Senate     48   0
Effective:  June 7, 2006  
Click here for additional information.
Chapter 352, Laws of 2006 (SSB 6618) - Revising the high school assessment system.
Revised for 1st Substitute: Requiring a study to explore options to augment the current educational assessment system.

This act is named for former Governor Booth Gardner. The intent section provides that the Legislature continues to support the Washington Assessment of Student Learning (WASL) as part of a comprehensive assessment system. However, there is interest in exploring why some students have not been able to meet the state standards and whether additional alternative methods, options, procedures, or performance measures could be used to augment the current system and enhance the success of students.

The Washington Institute of Public Policy (Institute) is directed to conduct a study that will consist of three components:
   1)   An statistical analysis of the characteristics of the students who did not meet the state standard on the WASL and identification of possible barriers to student success or possible causes of the lack of success;
   2)   A review and identification of additional alternative assessment options that will augment the current assessment system. When identifying alternative assessment options, the Institute will include a review of alternative assessments in other states and those developed and those proposed in Washington. For each option, the study must consider costs, cultural appropriateness, whether it reliably measures a student's ability to meet state learning standards, whether it meets the current requirement of rigor and objectivity, and any challenges to implementation, including any legislative action necessary for implementation; and
   3)   A review and identification of additional alternative methods, procedures, or combinations of performance measures to assess whether students have met the state learning standards. For each option, the study must consider the same issues addressed for the alternatives assessments plus whether the procedures, methods, or performance measures could be standardized across the state.

By December 1, 2006, the Institute must provide an interim report to the Legislature and a final report by December 2007. The interim report must include a preliminary statistical analysis of the student data and recommendations on at least two alternative assessment options, methods, procedures, or performance measures. The final report must include suggestions for any follow-up studies that the Legislature could undertake to continue to build on the information obtained in this study.

The Institute must consult with a number of listed experts and stakeholders in developing the initial list of possible options, procedures, methods, and measures to be reviewed under the second and third part of the study. OSPI and school districts are required to provide the Institute with access to all necessary data to conduct the study.

Votes on Final Passage:
Senate     47    0
House      71   27   (House amended)
Senate     44    0    (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 361, Laws of 2006 (SSB 6686) - Authorizing a local sales and use tax that is credited against the state sales and use tax.

Beginning July 1, 2007, a city with a population less than 400,000 and which is located in a county with a population greater than 600,000 that annexes an area consistent with its comprehensive plan may impose a sales or use tax. The tax must be taken as a credit against the sales tax, so it will not be an additional tax to a consumer.

In order to qualify for the tax, the city commences annexation of an area having a population of over 10,000 prior to January 1, 2010, and must determine by resolution or ordinance that the projected cost to provide services to the annexation area exceeds the projected revenue from the annexation area.

The rate of the tax is 0.1 percent for each annexation area with a population over 10,000 and 0.2 percent for an annexation area over 20,000. The maximum rate of credit the city can impose is 0.2 percent. The tax imposed must only be imposed at the beginning of a fiscal year and must continue for no more than ten years from the date it is imposed.

All revenue from the tax must be used to provide, maintain, and operate municipal services for the annexation area. The revenues may not exceed the difference of that which the city deems necessary to provide services for the annexation area and the general revenue received from the annexation. If the revenues due exceed that which is needed to provide the services, the tax must be suspended for the remainder of the fiscal year.

Prior to March 1st of each year, the city must notify the department of the maximum amount of distributions it is allowed to receive for the upcoming fiscal year.

Votes on Final Passage:
Senate     38   10
House      75   23
Effective:  June 7, 2006  
Click here for additional information.
Chapter 363, Laws of 2006 (HB 1439) - Allowing the state purchasing and material control director to receive electronic and web-based bids. (REVISED FOR PASSED LEGISLATURE: Modifying competitive bidding provisions.)

The state law governing the state's purchase of goods and services is amended to allow for electronic or web-based bid procedures for all purchases and contracts for purchases executed by the GA. Under competitive bidding procedures, the bid must be given in a written or electronic format. Bid prices may not be disclosed during an electronic or web-based bidding process.

Under certain competitive bidding processes the agency soliciting bids may not reject all bids after bids are opened unless there is a compelling reason. This applies to: (1) public works projects undertaken by any state agency, cities with a population greater than 100,000, or counties with a population greater than 500,000; (2) any agency or institution of state government for personal services contracts; and (3) the Information Services Board when purchasing, leasing, renting, or acquiring equipment, proprietary software, or other purchased services.

The circumstances in which a solicitation may be canceled and all bids rejected before the award, but after bid opening, are as follows:
  • unavailable, inadequate, ambiguous specifications, terms, conditions or requirements were cited;
  • specifications, terms, conditions, or requirements have been revised;
  • services being contracted for are no longer required;
  • solicitation did not provide for the consideration of all cost factors;
  • bids received indicate that needs can be met by a less expensive article or process;
  • all otherwise acceptable bids received are at unreasonable prices or only one bid is received or the public entity cannot determine the reasonableness of the bid;
  • no responsive bid was received from a responsible bidder; or
  • the bid process was not fair or equitable.

Votes on Final Passage:
House      96   0
Senate     48   0   (Senate amended)
House      98   0   (House concurred)
Effective:  June 7, 2006  
Click here for additional information.

Partial Veto Summary: Provisions relating to the rejection of bids without a compelling reason for (1) public works projects undertaken by any state agency, city with a population greater than 100,000, or county with a population greater than 500,000; (2) any agency or institution of state government for personal services contracts; and (3) the Information Services Board when purchasing, leasing, renting, or acquiring equipment, proprietary software, or other purchased services, were vetoed.

Chapter 365, Laws of 2006 (HB 2681) - Establishing minimum contribution rates for the public employees' retirement system, the public safety employees' retirement system, the school employees' retirement system, and the teachers' retirement system.

Minimum employer contribution rates are established for amortizing the UAAL beginning July 1, 2009, for PERS Plan 1 at 2.68 percent and, beginning September 1, 2009 for TRS Plan 1 at 4.71 percent. These minimum contribution rates remain in effect until the actuarial value of assets in either PERS Plan 1 or TRS Plan 1 equals 125 percent of actuarial liabilities or June 30, 2024, whichever comes first.

A process for determining minimum contribution rates for employers and employees in PERS, TRS, and SERS Plans 2 and 3 is established. The contribution rate for the normal cost portion of these Plans 2 and 3 is set at 80 percent of employer or employee normal cost calculated under the entry age normal cost method.

Upon completion of each biennial actuarial valuation, the State Actuary must review the appropriateness of the minimum contribution rates and recommend changes to the Legislature, if needed.

The term "normal cost" is defined as the portion of the cost of benefits allocated to a period of time under the actuarial method, typically twelve months.

Votes on Final Passage:
House      97   0
Senate     45   0
Effective:  July 1, 2009  
Click here for additional information.
Chapter 368, Laws of 2006 (SB 6248) - Requiring the department of transportation to reimburse drainage and diking districts for maintenance and repairs to drainage facilities if the department does not respond to written notice by the districts.

If the commissioners of any drainage or diking district determine that repair or maintenance is required on a drainage facility under the jurisdiction of the DOT, they may send a written notice to DOT requesting that the repair or maintenance be completed. If the specified repair or maintenance is not conducted within fourteen days of DOT receiving the notice, the district commissioners may independently make the repair or complete the maintenance.

The DOT must reimburse the district for all reasonable costs incurred by the district associated with the repair or maintenance.

Votes on Final Passage:
Senate     44   0
House      97   0   (House amended)
Senate     46   0   (Senate concurred)
Effective:  June 7, 2006  
Click here for additional information.
Chapter 369, Laws of 2006 (SSB 6617) - Regarding the contents of farm plans prepared by conservation districts.

Before preparing a farm plan, the conservation district is to inform the landowner or operator in writing of the types of information that is subject to disclosure to the public. Before completion of the final draft of the farm plan, the district is to send the farm plan to the landowner or operator for verification of the information. The final farm plan must not be disclosed by the conservation district until the requesting owner or operator confirms the information in the farm plan and returns a signed copy to the conservation district.

Farm plans developed by conservation districts are not subject to public disclosure unless permission is granted by the landowner or operator that requested the plan or the farm plan is used for application or issuance of a permit. Farm plans developed solely under the state clean water act are subject to the disclosure provisions contained in statutes enacted in 2005 which provide for creation of ranges to be used in reporting.

Votes on Final Passage:
Senate     46   0
House      98   0   (House amended)
Senate     43   0   (Senate concurred)
Effective:  June 7, 2006
               July 1, 2006 (Section 2)  
Click here for additional information.
Chapter 370, Laws of 2006 (SSB 6241) - Making 2006 supplemental transportation appropriations.

The 2005-07 biennial appropriations for various transportation agencies and programs are modified. (See Committee supporting documents for more detail.)

Votes on Final Passage:
Senate     45    0
House      85   13   (House amended)
Senate                  (Senate refused to concur)
Conference Committee
House      93    5
Senate     49    0
Effective:  March 31, 2006  
Click here for additional information.

Partial Veto Summary: The Governor vetoed seven sections or parts of sections (appropriation items) in the supplemental transportation appropriations act. In addition to removing certain directive language, the net effect of the seven vetoes is to decrease state appropriations originally provided in the bill by $273,000.

Chapter 371, Laws of 2006 (ESSB 6384) - Adopting the 2006 supplemental capital budget.

The 2005-07 biennial capital appropriations for various agencies and programs are modified. For additional information, see "Supplemental Capital Budget Summary" published by the Senate Ways & Means Committee. The information is also available on the Internet at
www.leg.wa.gov/senate/scs/wm/.

Votes on Final Passage:
Senate     48   0
House      91   6   (House amended)
Senate                (Senate refused to concur)
Conference Committee
House      94   4
Senate     48   0
Effective:  March 31, 2006
               June 30, 2007 (Section 232)  
Click here for additional information.

Partial Veto Summary: The Governor vetoed nine sections or portions of sections of the supplemental capital budget. For additional information, see the Governor's veto message or the Legislative Budget Notes published by the Senate Ways & Means Committee and the House Appropriations Committee.

Chapter 372, Laws of 2006 (ESSB 6386) - Making 2006 supplemental operating appropriations.

The 2005-07 biennial appropriations for various agencies and programs are modified. For additional information, see "Supplemental Operating Budget Summary" and "Statewide Summary and Agency Detail" published by the Senate Ways & Means Committee. The information is also available on the Internet at
www.leg.wa.gov/senate/scs/wm/.

Votes on Final Passage:
Senate     26   19
House      53   43   (House amended)
Senate                  (Senate refused to concur)
Conference Committee
House      57   41
House      55   43   (House reconsidered)
Senate     29   19
Effective:  March 31, 2006  
Click here for additional information.

Partial Veto Summary: The Governor vetoed 28 sections or portions of sections of the supplemental operating budget. For additional information, see the Governor's veto message or the Legislative Budget Notes published by the Senate Ways & Means Committee and the House Appropriations Committee.

Filed with Secretary of State - HCR 4413 - Providing for reintroduction of bills from last session.   Click here for additional information.
Filed with Secretary of State - HJR 4223 - Amending the state Constitution to increase the personal property tax exemption for the head of a family.

The maximum personal property tax exemption allowed under the State Constitution for a head of family is increased to $15,000.

Votes on Final Passage:
House    96   0
Senate   46   0  
Click here for additional information.

Governor Vetoed - SSB 6369 - Providing excise tax exemptions for water services provided by small water systems.  Click here for Governor's veto message.
Governor Vetoed - SB 6411 - Allowing six-year long collective bargaining agreements.  Click here for Governor's veto message.
Governor Vetoed - SB 6412 - Increasing the number of superior court judges in Clallam and Cowlitz counties.  Click here for Governor's veto message.
HB 1115 - Providing for school directors' associations.
Revised for 1st Substitute: Providing for membership in school directors' associations to be voluntary.  Introduced but not enacted.
HB 1145 - Authorizing donation of unclaimed personal property to nonprofit charitable organizations.  Introduced but not enacted.
HB 1184 - Providing training for new county officers.  Introduced but not enacted.
HB 1341 - Authorizing additional investment authority for specified hospital districts.  Introduced but not enacted.
SHB 1348 - Providing a uniform method of transferring a municipal court judgment into district court.  Introduced but not enacted.
HB 1351 - Authorizing a job creation business and occupation tax credit.
Revised for 1st Substitute: Authorizing a job creation tax credit.  Introduced but not enacted.
HB 1361 - Modifying the disbursement of funds by air pollution control agencies.  Introduced but not enacted.
HB 1395 - Modifying provisions concerning the uniform regulation of business and professions.  Introduced but not enacted.
EHB 1429 - Authorizing personal rapid transit and magnetic levitation transit systems.  Introduced but not enacted.
HB 1436 - Allowing public funding of local office campaigns.  Introduced but not enacted.
HB 1446 - Modifying requirements for voter-approved property tax levies.  Introduced but not enacted.
HB 1484 - Authorizing voter approved regular property tax levies for school purposes.
Revised for 3rd Substitute: Providing cost-of-living salary supplements to school district employees.  Introduced but not enacted.
HB 1500 - Establishing procedures for forming new counties.  Introduced but not enacted.

HB 1595 - Allowing port districts to lease land acquired from a commercial waterway district.  Introduced but not enacted.

HB 1735 - Exempting limited water storage facilities from permit requirements.  Introduced but not enacted.
HB 1740 - Clarifying the economic development powers of cities, towns, and counties.  Introduced but not enacted.
HB 1742 - Providing tax incentives for certain multiple-unit dwellings in urban centers.  Introduced but not enacted.
HB 1802 - Providing a property tax exemption for nonprofits that assist small businesses.
Revised for 2nd Substitute: Providing a property tax exemption for nonprofit small business incubators.  Introduced but not enacted.
HB 1813 - Increasing the term of nonvoter approved rural library district general obligation bonds.  Introduced but not enacted.
HB 1815 - Modifying the small business incubator program.
Revised for 3rd Substitute: Creating a competitive grant program for organizations that assist small businesses.  Introduced but not enacted.
HB 1907 - Promoting economic development and community revitalization.  Introduced but not enacted.
HB 1989 - Providing local transportation funding options.  Introduced but not enacted.
HB 2024 - Mandating open and fair public work contract bidding.  Introduced but not enacted.
HB 2217 - Changing provisions relating to growth management.
Revised for 1st Substitute: Changing provisions for growth management planning.  Introduced but not enacted.
EHB 2219 - Expanding eligibility for urban industrial land banks.  Introduced but not enacted.
EHB 2270 - Exempting payment for certain services provided by public development authorities from business and occupation taxation.
Revised for 1st Substitute: Providing excise tax relief for public development authorities.  Introduced but not enacted.
HB 2323 - Encouraging affordable rental housing.
Revised for 1st Substitute: Studying the prospect of increasing affordable rental housing through accessory dwelling units.  Introduced but not enacted.
HB 2324 - Providing incentives to encourage affordable housing.  Introduced but not enacted.
HB 2325 - Encouraging the development of affordable housing.  Introduced but not enacted.
HB 2334 - Modifying residential density requirements in fully incorporated island cities.  Introduced but not enacted.
HB 2336 - Changing the state formula for funding allocations for pupil transportation.  Introduced but not enacted.
HB 2337 - Authorizing projects recommended by the public works board.  Introduced but not enacted.
HB 2357 - Modifying work programs at correctional institutions.  Introduced but not enacted.
HB 2365 - Extending the date when counties which have authorized facilities for agriculture promotion must allow a credit for city lodging taxes.  Introduced but not enacted.
HB 2385 - Making technical corrections to certain public lands statutes.  Introduced but not enacted.
HB 2393 - Funding energy freedom projects.
Revised for 2nd Substitute: Establishing an energy freedom program.  Introduced but not enacted.
HB 2396 - Convening a work group to evaluate issues relating to school security professionals.  Introduced but not enacted.
HB 2401 - Developing regional compacts for siting transmission lines.  Introduced but not enacted.
HB 2417 - Providing excise tax relief for farm machinery and equipment.  Introduced but not enacted.
HB 2422 - Providing funding for state and local parks.  Introduced but not enacted.
HB 2423 - Encouraging the creation of a comprehensive guidance, counseling, and planning program in schools.  Introduced but not enacted.
HB 2427 - Providing restrictions on the exercise of eminent domain.  Introduced but not enacted.
HB 2432 - Modifying property tax exemptions for persons with disabilities related to the performance of military duties.  Introduced but not enacted.
HB 2433 - Providing property tax relief for senior citizens and persons retired by reason of physical disability.  Introduced but not enacted.
HB 2436 - Protecting communities from terrorist attacks at unattended service stations.  Introduced but not enacted.
HB 2438 - Prohibiting employers from requesting applicant social security numbers.  Introduced but not enacted.
HB 2439 - Providing support for military families by exempting home sales resulting from military relocation orders from real estate excise taxes.  Introduced but not enacted.
HB 2440 - Requiring persons doing business with the state and municipalities to report use of offshore items.  Introduced but not enacted.
HB 2447 - Extending the expiration date for funding the construction of new regional centers.
Revised for 1st Substitute: Extending the state sales and use tax credit for certain public facilities districts.  Introduced but not enacted.
HB 2451 - Requiring quality management, accountability, and performance systems for school districts.  Introduced but not enacted.
HB 2453 - Making the Washington essential property insurance inspection and placement program apply to all counties.  Introduced but not enacted.
HB 2478 - Clarifying laws on ballot measures.  Introduced but not enacted.
HB 2480 - Requiring that CPR be included in high school curriculum.  Introduced but not enacted.
HB 2490 - Providing a financial incentive to school districts for high school students who complete postsecondary credits.  Introduced but not enacted.
HB 2491 - Reforming regional transportation governance.  Introduced but not enacted.
HB 2493 - Limiting access to law enforcement and emergency equipment and vehicles.  Introduced but not enacted.
HB 2494 - Establishing fair market property values by considering the growth management act.  Introduced but not enacted.
HB 2496 - Providing a job creation tax credit.  Introduced but not enacted.
HB 2503 - Creating the pension funding stabilization account.  Introduced but not enacted.
HB 2504 - Exempting state and local governments from the payment of sales and use taxes.  Introduced but not enacted.
HB 2509 - Requiring fiscal information in local tax ballot measure titles.  Introduced but not enacted.
HB 2512 - Describing when special absentee ballots may not be counted.  Introduced but not enacted.
HB 2513 - Modifying county auditor duties.  Introduced but not enacted.
HB 2514 - Ensuring that cities, towns, and districts do not have to pay revote costs due to county error.  Introduced but not enacted.
HB 2515 - Changing public records provisions.  Introduced but not enacted.
HB 2516 - Changing public records provisions.  Introduced but not enacted.
HB 2518 - Providing for a special election if an election is declared void.  Introduced but not enacted.
HB 2523 - Auditing the signature verification process in elections.  Introduced but not enacted.
HB 2525 - Modifying special election dates.  Introduced but not enacted.
HB 2526 - Modifying voter challenge procedures.  Introduced but not enacted.
HB 2528 - Clarifying the circumstances under which provisional ballots may be counted.  Introduced but not enacted.
HB 2532 - Providing for election audits.  Introduced but not enacted.
HB 2534 - Requiring full disclosure of vehicle taxes and license fees.  Introduced but not enacted.
HB 2535 - Allowing public facilities districts to finance remodeling or reconstruction of existing minor league baseball stadiums and related parking facilities.  Introduced but not enacted.
HB 2542 - Requiring the development of performance measures for emergency preparedness.  Introduced but not enacted.
HB 2547 - Making certain violations of the open public meetings act gross misdemeanors.  Introduced but not enacted.
HB 2548 - Enhancing penalties for violations of the public records act.  Introduced but not enacted.
HB 2549 - Modifying provisions on reporting of election returns by precinct.  Introduced but not enacted.
HB 2550 - Amending provisions of the 2005-2007 capital budget.
Revised for 1st Substitute: Establishing an energy freedom program.  Introduced but not enacted.
HB 2557 - Requiring the public employees' benefits board to develop a health savings account option for employees.  Introduced but not enacted.
HB 2565 - Modifying the worker training business and occupation tax credit.  Introduced but not enacted.
HB 2580 - Providing excise tax relief for persons that process canned salmon.  Introduced but not enacted.
HB 2584 - Establishing a blue ribbon growth management needs and priorities task force.  Introduced but not enacted.
HB 2585 - Creating a collaborative design pilot program.  Introduced but not enacted.
HB 2590 - Exempting nonprofit organizations organized for zoological purposes from certain excise taxes.  Introduced but not enacted.
HB 2591 - Providing an exemption from special fuel taxes for regional transit authorities.  Introduced but not enacted.
HB 2594 - Providing assistance to non-English speaking voters.  Introduced but not enacted.
HB 2602 - Authorizing increased public facility construction funding by the community economic revitalization board.  Introduced but not enacted.

HB 2605 - Creating the direct property owner petition method of annexation for city and town annexations.  Introduced but not enacted.

HB 2607 - Providing counties the ability to vacate county road rights of way.  Introduced but not enacted.
HB 2609 - Modifying utility tax provisions.  Introduced but not enacted.
HB 2619 - Applying the best available science under the growth management act.  Introduced but not enacted.
HB 2620 - Adjusting the development regulations review by counties with low population densities.  Introduced but not enacted.
HB 2621 - Increasing the debt limit of the housing finance commission.  Introduced but not enacted.
HB 2626 - Reaffirming existing Washington state law in the state Constitution, state supreme court decisions, and statutes relating to the use of eminent domain by state and local governments.  Introduced but not enacted.
HB 2631 - Providing a telecommunications or internet service tax exemption.  Introduced but not enacted.
HB 2634 - Requiring full-day kindergarten.  Introduced but not enacted.
HB 2635 - Authorizing optional full-day kindergarten.  Introduced but not enacted.
HB 2636 - Consolidating regional transportation agencies for efficiency and emergency evacuation planning purposes.  Introduced but not enacted.
HB 2637 - Prioritizing basic education expenditures within the state appropriations process.  Introduced but not enacted.
HB 2645 - Providing a limited public utility tax credit for gas distribution businesses.  Introduced but not enacted.
HB 2649 - Creating an affordable housing for all program.  Introduced but not enacted.
HB 2650 - Creating programs to end homelessness.  Introduced but not enacted.
HB 2655 - Modifying disbursement of the metropolitan park district fund.  Introduced but not enacted.
HB 2656 - Modifying county lien authority.  Introduced but not enacted.
HB 2659 - Concerning water storage.  Introduced but not enacted.
HB 2667 - Providing municipal services to annexed areas.  Introduced but not enacted.
HB 2669 - Licensing specialty hospitals.  Introduced but not enacted.
HB 2672 - Providing excise tax relief by modifying due dates and eliminating an assessment penalty.  Introduced but not enacted.
HB 2677 - Creating the economic stability account.  Introduced but not enacted.
HB 2679 - Providing unreduced retirement benefits in the plans 2 and 3 of the public employees' retirement system, the teachers' retirement system, and the school employees' retirement system.  Introduced but not enacted.
HB 2683 - Funding the unfunded actuarial accrued liability in plan 1 of the public employees' retirement system and plan 1 of the teachers' retirement system.  Introduced but not enacted.
HB 2686 - Providing annual increases in certain retirement allowances.  Introduced but not enacted.
HB 2689 - Addressing the public employment of retirees from the teachers' retirement system plan 1 and the public employees' retirement system plan 1.  Introduced but not enacted.
HB 2694 - Eliminating Saturday counting of ballots.  Introduced but not enacted.
HB 2696 - Modifying election recount provisions.  Introduced but not enacted.
HB 2700 - Revising provisions relating to community protection zones.  Introduced but not enacted.
HB 2706 - Regarding a more rigorous curriculum for high school graduation.  Introduced but not enacted.