G OVERNOR MIKE LOWRY'S 1997 executive request legislation, as summarized in this document, continues his long-standing commitment to protecting the health, safety, and welfare of the state's citizens, particularly its children and others who are least able to protect themselves.

The executive request package is also aimed at enhancing environmental protection by continuing oil spill prevention programs and funding watershed plan implementation; continuing support for worker training and education and assistance to economically-distressed communities; and addressing other critical statewide issues, such as inappropriate commercial use of government electronic records, the rapidly expanding inmate population, the growing property-tax burden, and the difficulties facing many families in meeting college financial needs.

Safeguarding the welfare of children and less fortunate citizens

In response to dramatic reductions in federal assistance under the new federal welfare law, budget and legislative proposals would provide state assistance to address some of the shortfalls, especially for legal immigrants and those dependent on sharply reduced food programs. Other proposals provide greater protection for children through a comprehensive child fatality review process, create penalties for leaving a firearm within easy access of children, promote victim safety and greater offender accountability in domestic violence crimes, and improve the state's juvenile justice system.

Protecting the environment

The independence and efficacy of the Office of Marine Safety (OMS), the state's oil spill prevention agency, could be jeopardized if current law is not modified to continue the office as a separate entity. The Governor proposes that OMS remain a separate agency, focused on prevention of oil spills. Other legislation establishes a long-term, comprehensive approach to fund "on-the-ground" projects in local watershed plans.

Helping families and communities meet growing financial pressures

To allow homeowners of modest means to remain in their homes yet still meet their tax obligations, the Governor is again proposing a property tax deferral program. Another executive request bill is designed to address rising tuition costs by establishing a prepaid tuition program to help families meet future higher education financial needs. Dislocated and unemployed workers would be assisted by the Governor's proposal to reauthorize the Employment and Training Trust Fund, using its current funding source. Rural communities hit hard by economic downturns in the timber and fishing industries will benefit from proposed legislation to renew the Governor's Rural Community Assistance Team and the programs it administers to help these distressed communities and workers.

Protecting citizens from the effects of tobacco smoke

In response to growing evidence of the deadly effects of environmental tobacco smoke and the increasing experimentation by children with tobacco, the Governor is proposing two bills. Washington's Clean Indoor Air Act would be modified by proposing a referendum to the people that prohibits, with only limited exceptions, smoking in nearly all indoor worksites and public places, including restaurants, bars, and taverns. In addition, problems in the current law governing youth access to tobacco would be addressed by prohibiting mail-order sales and distribution of free samples, strengthening enforcement requirements, and limiting tobacco advertising and promotional activities near schools and playgrounds.

Addressing critical management, organizational, and budget issues

To address growing privacy concerns about commercial access to government electronic records, the Governor is proposing legislation that would impose penalties for unauthorized use and resale of these records and place restrictions on their release and commercial use when they contain personally identifiable information. Other legislation would propose a constitutional amendment to allow a simple majority voter approval for school levies, reauthorize the Indeterminate Sentence Review Board, address rapidly rising corrections costs by providing sentencing options for nonviolent offenders, and eliminate and consolidate a number of obsolete and overlapping boards and commissions.

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Responding to the Challenge
New Federal Welfare Law

O N AUGUST 22, 1996, PRESIDENT CLINTON signed into law a sweeping bill designed to, in his words, "end welfare as we know it." The Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (P.L. 104-193) represents the most significant change in federal public assistance policy in more than 60 years.

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The new federal welfare law is expected to save $54.5 billion in federal expenditures through the year 2002. According to a recent report by the Urban Institute, it will also increase the number of Americans living in poverty by 2.6 million, including 1.1 million children. How low-income families living in Washington State will be affected depends largely on how state lawmakers respond to the challenges and choices presented by the new federal law.

Background

The new law eliminates the long-standing individual entitlement to federal welfare benefits. It abolishes Aid to Families with Dependent Children (AFDC), which has been the primary income assistance program for low income families with children since 1936. AFDC is replaced by a capped block grant program called Temporary Assistance for Needy Families (TANF). This new block grant program puts significant new restrictions on who can qualify for assistance and under what conditions.

The federal welfare reform law also makes sharp cutbacks in the federal Food Stamp Program and denies aid to millions of legal immigrants in the United States simply because they are not U.S. citizens. According to preliminary estimates by the state Office of Financial Management (OFM), the new law will reduce federal support for public assistance programs in Washington by approximately $1 billion through 2002, while imposing additional costs necessary to qualify for federal funds.

The impact of these federal law changes on Washington's families and communities is significant:

Washington families will lose approximately $600 million in food stamp benefits by 2002.
More than 200,000 low income families will face cutbacks in food stamps and other food subsidy programs. Many of these families may also see reductions in AFDC, child care, or other benefits.
Of that total, 38,000 legal immigrants, including working parents with children, will be dropped from the Food Stamp Program entirely.
Approximately 11,000 legal immigrants who are blind, elderly, or disabled will lose Supplemental Security Income (SSI) financial assistance, an average loss of about $470 a month.
An estimated 1,000 non-immigrant children with severe behavioral disorders will also lose SSI disability benefits because of changes in federal eligibility criteria.
Many of the 97,000 families - including 175,000 children - currently receiving AFDC income assistance in Washington could lose their benefits if the parents are unable to find a job within a prescribed period of time.

In addition to the legislative proposals listed below, the Governor has responded to the new federal law by proposing a TANF state plan that would allow Washington to continue its current welfare-to-work program rather than drop families from assistance without the education and training necessary to earn a sustainable income. The Governor's budget proposal also helps mitigate the impact on families and children cut off from federal assistance.

Proposed Legislation

Of all the people affected by the federal law, none were singled out for harsher treatment than legal immigrants to the United States. Most legal immigrants lose their eligibility for food stamps and SSI benefits. (Exceptions include refugees, deportees, military personnel and their families, and those who can demonstrate they have worked in the U.S. for ten years.)
The 38,000 legal immigrants now receiving food stamps - including children with working parents - will lose them as soon as their cases are reviewed, beginning in April 1997. In addition, about 11,000 legal immigrants currently receiving SSI will lose their benefits as of August 1997. Approximately 60 percent of those people are age 65 or older; more than half have physical or mental disabilities; one percent are blind.
The Governor's legislation would establish a state-funded food assistance program for legal immigrants who have been cut off from food stamp benefits due to their status as legal immigrants. This proposed state program is funded in the Governor's budget at a level that would restore the immigrants' food benefits to two-thirds of their lost federal food stamp benefits. Cost: $47.8 million General Fund-State
The legislation would direct the Department of Social and Health Services (DSHS) to provide child care assistance to families receiving TANF who are participating in approved employment and training activities and to needy families for up to 12 months after going off TANF and becoming self supporting. It would permit rehabilitated drug felons to become eligible for assistance under TANF under certain conditions. Finally, it would create administrative efficiencies by streamlining eligibility and work flow processes. Savings: $2.2 million General Fund-State and $1.8 million General Fund-Federal.
This proposal would allow the Employment Security Department to provide DSHS access with employer wage files for statistical analysis, research, and evaluation so that DSHS can measure the work force participation of its TANF clients. It also makes other technical and administrative changes necessary to implement the federal requirements.
A number of low income families need help meeting a short-term emergency need, but are job-ready and do not need or want ongoing welfare assistance. This proposal would establish a grant diversion program to provide short-term emergency assistance to help a family avoid going on public assistance Under this program, a family could receive help targeted to their specific needs. Savings: $143,000 General Fund-State and $265,000 General Fund-Federal.
The federal law requires many changes in state law governing child support. In addition to numerous required technical changes, this proposed legislation would make driver, professional, and recreational licenses subject to suspension for failure to pay child support. This proposal would expand the new hire reporting requirement from the six industries currently covered to all employers, effective July 1988, as mandated by federal law. It also would eliminate the $50 pass through for recipients, for which there is no longer federal cost sharing. Savings: $24.4 million General Fund-State; Cost: $1.5 million other funds.

Staff Contact

Peggy Brown, Office of the Governor, (360) 586-0907.
Jean Soliz, Office of the Governor, (360) 753-5463.

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Preventing Child Fatalities

A CCORDING TO THE WASHINGTON STATE DEPARTMENT OF HEALTH (DOH), approximately 900 children under the age of 18 die in Washington each year. These deaths result from a variety of causes, including congenital abnormalities, problems during pregnancy or delivery, Sudden Infant Death Syndrome (SIDS), intentional and unintentional injuries, and infectious and noninfectious diseases. Many of these deaths are preventable; some result from lack of access to care, child abuse and neglect, and risk-taking behaviors. To gain a better understanding of why children die and to reduce the incidence of preventable deaths of Washington's children, Governor Lowry proposes to establish a statewide process for the systematic and comprehensive review of all sudden and unexpected child deaths in Washington state.

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Background

As child injuries, youth violence, and child abuse and neglect have gained the attention of the public, it has become increasingly clear that we often do not have the complete picture of the circumstances surrounding a child's sudden and unexpected death. The first step in preventing childhood deaths is to collect more complete information about why these deaths occur and how such tragedies might be avoided in the future. A statewide system of comprehensive child death review teams is critical to accomplish these ends.

Currently there is no systematic review of sudden and unexpected child deaths in Washington State, nor any standard statewide data relating to child fatalities. In 1992, the DOH and the Department of Social and Health Services (DSHS) created the State Child Death Prevention and Review Team to provide technical assistance to local teams across the state and to encourage standard data collection. In November 1995, DOH published a report entitled, Washington Child Death Review and Prevention, A Strategy to Answer, 'Why Do Children Die?' Governor Lowry's proposal is based in part on the community-based child fatality review model set forth in the 1995 report. It also reflects aspects of models that have been successfully implemented in other states.

The development and implementation of child fatality review teams has been recommended by a number of organizations, including the U.S. Department of Health and Human Services, the Child Welfare League of America, the American Bar Association and the American Academy of Pediatrics.

This new process is separate and independent from the standard fatality review process that the DSHS Children's Administration will continue to undertake for all unexpected deaths of children receiving child welfare services. The DSHS fatality review process will continue to focus on identifying and analyzing any agency practice issues that may have contributed to a child fatality, while the proposed fatality review process would consider all of the possible contributing circumstances.

Proposed Legislation

Specifically, the Governor's proposal would:

Establish a formal partnership between DOH and DSHS for the purpose of reviewing all sudden, unexpected deaths of children ages 0 to 17; developing protocols for consistency in the review process, data collection, analysis and report writing; collecting detailed data; identifying system changes; and implementing prevention strategies.
Establish an interdisciplinary State Child Death Prevention and Review Team to coordinate and monitor state systems as they relate to child death review; provide technical assistance, consultation and training to local teams; review individual cases referred by local teams; compile data and publish an annual child death review report; makes recommendations regarding policy and legislative changes; develop prevention strategies; and educate the public.
Establish five-member interdisciplinary fatality review teams in localities or regions across the state to review all sudden, unexpected child deaths, report findings to program staff, identify and refer to the state team those cases requiring in-depth review, and make recommendations.

Fiscal Impact

The Governor's budget recommendation for this proposal totals $1,650,000 General Fund-State and $56,000 other funds.

Staff Contact

Rita Schmidt, Department of Health, (360) 753-2481.
Jennifer Strus, Department of Social and Health Services, (360) 902-7911.

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Strengthening Accountability
Child Protective Services System

I NFORMATION MAINTAINED by the Department of Social and Health Services (DSHS) relating to specific Child Protective Services (CPS) cases is subject to strict state and federal confidentiality laws that prohibit public disclosure. The department's inability to respond to public inquiries about its actions in these cases undermines its accountability to the public and diminishes public confidence in CPS. In an effort to improve openness and accountability within the CPS system, while also protecting the legitimate privacy interests of children and families involved with CPS, Governor Lowry proposes to allow DSHS, under specified conditions, to disclose confidential CPS information.

Background

In recent years, DSHS's inability to release information in high profile CPS cases has generated great concern and even outrage among Washington residents who want to be able to evaluates the department's actions in order to ensure fairness and accountability. Confidentiality restrictions that preclude DSHS from publicly disclosing information about its actions in a CPS case currently operate even when a child has died, or when a parent, attorney, or other governmental agency has publicly disclosed information about the case.

In February 1996, following the tragic death of six-year old Elisa Izquierdo, who died after years of abuse, allegedly at the hands of her mother and stepfather, the state of New York enacted legislation which, consistent with federal law, modifies standards for disclosing confidential CPS information. Governor Lowry's proposal is based on New York's statute. The Governor's proposal seeks to improve the quality of CPS investigations and to encourage greater accountability in the CPS system.

The Governor's 1995 Child Protection Roundtable and the CPS Symposium Work Group, which was established after the statewide CPS Symposium held in June 1996, each have recommended modifying confidentiality restrictions to permit DSHS to disclose CPS information.

Proposed Legislation

The Governor's proposal would:

Authorize the DSHS Secretary to disclose information regarding the abuse or neglect of a child, the investigation of such abuse or neglect, and any services related to the abuse or neglect of a child in specified circumstances. However, prior to disclosing confidential information, the Secretary must first determine that the disclosure is not contrary to the best interests of the child, the child's siblings or other children in the household. In making this determination, the Secretary must consider the privacy interests of the child, the child's family and the effects which disclosure may have on efforts to reunite and provide services to the family.
Restrict disclosure to those situations where: (1) the subject of the CPS investigation has been arrested and charged with committing a crime related to a report of abuse or neglect; (2) the subject of the CPS investigation has publicly, knowingly, and voluntarily disclosed the CPS report; (3) a law enforcement official or agency, prosecuting attorney, other investigating agency, or court has publicly disclosed the investigation through an official report that is required to be made public; or (4) the child named in the report has died.
Limit the type of information that may be disclosed to: (1) the child's name; (2) determinations made by the department relating to abuse or neglect referrals; (3) actions taken by the department in response to abuse or neglect reports concerning a child who has died; and (4) identification of any services or actions provided by the department to the child or the child's family. Psychological, psychiatric, clinical or medical reports of the child or the child's family may not be disclosed.
Allow the Secretary also to disclose pertinent information concerning the circumstances of the abuse or neglect of the child and the investigation that resulted if the Secretary determines that such disclosure is consistent with the public interest.

Staff Contact

Jennifer Strus, Department of Social and Health Services, (360) 902-7911.

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Enhancing Juvenile
Sentencing and Rehabilitation

W ASHINGTON RESIDENTS CONTINUE to be concerned about youth crime and how the juvenile justice system responds to juvenile offenders. Governor Lowry's proposal adopts the recommendations of two groups that have conducted an extensive, comprehensive review of juvenile sentencing laws and practices. The proposed legislation would make improvements to the juvenile sentencing scheme, but would leave intact the basic principle of the 1977 Juvenile Justice Act that punishment and rehabilitation are both important goals in dealing with juvenile offenders.

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Background

Last session, the Legislature transferred to the Sentencing Guidelines Commission general authority for monitoring, evaluating, and proposing revisions of sentencing standards and sentencing practices for juvenile offenders. As part of its new responsibilities, the Commission was charged with making recommendations to the 1997 Legislature on revisions to the juvenile sentencing standards. The Legislature also directed that the revisions should reflect the following priorities: greater simplicity in sentencing standards, confinement for violent and repeat offenders, more judicial discretion by broadening sentencing ranges, and alternatives to total confinement for nonviolent offenders. Governor Lowry's proposed legislation includes all of the Commission's recommendations.

The Governor's proposal also includes recommendations from the 1994 Council on Families, Youth and Justice established by Governor Lowry and Attorney General Gregoire. The Council's recommendations emphasized proportionate and flexible sentencing, meaningful early intervention and rehabilitation, and parental involvement.

Proposed Legislation

This proposal takes a comprehensive, systemic approach to dealing with juvenile offenders by creating and expanding sentencing and rehabilitation options. The provisions of this legislation provide judges, prosecutors, and probation officers with more tools to better fashion an appropriate sentence which balances the twin goals of punishment and rehabilitation. Specifically, the proposed legislation would:

Juvenile Sentencing

Simplify the sentencing grid to allow for greater judicial flexibility in tailoring an appropriate sentence. More emphasis is placed on the seriousness of the offense; the offender's age and the recency of prior offenses are de-emphasized as sentencing factors.
Expand the sentencing ranges for first-time, minor offenders and middle offenders, providing judges with greater flexibility.
Authorize zero to ten days of confinement for repeat assaultive offenders by reclassifying them as middle offenders.
Increase the penalties for the use of a firearm in the commission of an offense, and for offenders who commit crimes while on parole.
Increase the seriousness categories for first degree child rape, first and second degree child molestation, and obstructing a law enforcement officer. Mandatory minimums are increased for first degree child rape and child molestation. Courts are also authorized to impose a longer, "manifest injustice" disposition when the juvenile is sentenced to the special Sex Offender Disposition Alternative (SSODA).
Rank the following offenses: (1) failure to register as a sex offender, (2) first and second degree reckless endangerment, (3) stalking, and (4) theft of a firearm.
Create a "youthful offender" sentencing option that would combine juvenile and adult sentences for certain juvenile offenders. The court would be allowed to impose the adult sentence when the offender turns 21 if it determines that the offender failed to rehabilitate while serving his or her juvenile sentence.
Require a "decline" hearing for offenders who escape from the juvenile rehabilitation administration while serving a sentence to the age of 21. At the decline hearing, the court will decide if the offender should be prosecuted as an adult.

Early Intervention and Rehabilitation

Expand parole conditions to include participation in substance abuse and mental health treatment, and other offense-related services.
Extend the permissible parole supervision period for sex offenders to 36 months.
Expand options for diversion agreements to include more time for informational and educational classes, and participation in adult mentoring programs and community monitoring programs.

Parental Involvement

Require parents of juvenile offenders to attend their children's detention, adjudication, and disposition hearings. Parents may be held in contempt of court for not attending.
Create a new parent-child-attorney privilege allowing the parents to participate in discussions between their child and their child's attorney.
Authorize the Department of Social and Health Services to collect from parents the cost of parole supervision.

Fiscal Impact

The Governor's budget recommendation for this legislative proposal totals $7,513,000 General Fund-State. The Governor's budget also includes a request for $8,734,000 General Fund-State and $330,000 in General Fund-Federal to enhance early intervention, mental health and rehabilitation services, and job training programs for youthful offenders.

Staff Contact

Lorraine Lee, Office of the Governor, (360) 753-1022.
Sid Sidorowicz, Juvenile Rehabilitation Administration, (360) 902-7804.

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Preventing Children's Access to Firearms

I N RECENT MONTHS TWO CHILDREN DIED when accidentally shot by other children playing with firearms. One victim was eight years old and the other was fourteen. Earlier this month a 14-year-old boy killed himself after shooting his mother and sister to death. In this latest incident multiple firearms were found in the home. The proposed legislation would hold adults criminally responsible for leaving firearms within easy access of children.

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Background

The recent tragedies add to the number of children in Washington killed by gunfire. Between 1980 and 1995, 436 children (18 years old and younger) died from gunshot wounds that were self-inflicted or the result of accidental shootings.

When children shoot themselves or their playmates, oftentimes the firearm belonged to a parent or relative. Injury prevention experts believe that many of these tragedies could have been prevented if the firearms were properly stored and inaccessible to children.

Approximately 641,237 children under 18 years of age live in Washington homes with guns. Fifteen states have enacted laws holding gun owners criminally liable for the improper storage of firearms. Florida and California have reported decreases in the number of accidental gun deaths after passing laws that punish gun owners for leaving firearms in children's reach.

Proposed Legislation

Governor Lowry proposes to strengthen prevention efforts by encouraging the proper storage of firearms.

The legislation would make it a gross misdemeanor offense to leave a firearm in a place that an adult knows to be accessible to children and the negligent storage results in a child's possession of the firearm. Liability is exempted when the firearm has a trigger lock or a similar device that prevents it from discharging.

A gross misdemeanor offense is punishable by up to one year of imprisonment and a fine.

Fiscal Impact

Indeterminate.

Staff Contact

Lorraine Lee, Office of the Governor, (360) 753-1022.

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Protecting Domestic Violence
Victims and Their Children

D OMESTIC VIOLENCE CONTINUES to be a troubling issue for Washington State. Between July and December 1995, 20,238 domestic violence crimes were reported to law enforcement agencies throughout the state, according to data collected by the Washington Association of Sheriffs and Police Chiefs. More than 19,000 simple assaults were committed against a family or household member during that period. Twenty-eight percent of homicides resulted from domestic violence. Governor Lowry proposes legislation that will strengthen laws that protect victims and their children from their batterers, and hold repeat perpetrators more accountable.

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Background

The Washington figures echo national statistics on the prevalence of domestic violence in homes and in workplaces across America. Every 9 seconds, a woman is battered by her partner. Three to four million women are victims of domestic violence each year. Domestic abuse creates 100,000 days of hospitalizations and 30,000 emergency room visits annually. The U.S. Surgeon General has warned that family violence - not heart attacks or cancer or strokes - poses the single largest threat of injury to adult women in this country.

Family violence can become a vicious cycle when children are involved. Studies show that three million children a year who witness violence in their homes are more likely to drop out of school, abuse alcohol and drugs, attempt suicide, and grow up to become victims or abusers themselves. Early intervention can break this cycle of violence and prevent a new generation of batterers and victims.

Domestic violence is not a private family matter; it seriously affects the workplace. Indeed, murder by a current or former partner is the leading cause of death for women in the workplace. In recognition of this impact, Governor Lowry earlier this year signed Executive Order 96-05 which directs all executive agencies to adopt personnel policies that respond to domestic violence, making Washington State a national leader in this effort to deal with the impact of domestic violence in the workplace.

Executive Order 96-05 was part of Governor Lowry's Domestic Violence Initiative. The initiative also included an assessment of the state's service delivery and responsiveness to domestic violence. Additionally, Governor Lowry visited various organizations and programs throughout the state that have made a difference in the education and prevention of domestic violence. These visits reaffirmed Governor Lowry's belief that Washington's efforts to eradicate domestic violence must emphasize recognition of the serious impact of domestic violence, safety and compassion for the victims, accountability for perpetrators, and collaboration on prevention and response systems at the state and local levels.

Proposed Legislation

The proposed legislation is also part of Governor Lowry's Domestic Violence Initiative. It would:

Require the Department of Health to keep confidential the birth certificates of participants in the Address Confidentiality Program. This closes an existing gap which has enabled perpetrators to find out their victims' new addresses by accessing the victims' birth certificate.
Expand the mandatory arrest period from 4 to 24 hours. This enhances victims' safety by providing them more time to find safe haven. It also ensures that law enforcement will make an arrest of the perpetrator during the 24 hour period following a domestic violence incident.
Create a testimonial privilege between domestic violence victims and their counselors. This would encourage victims to freely communicate with their counselors without fear that the information will be made public or used against them in court by the batterers.
Authorize the effects of physical and sexual abuse to be admissible evidence in criminal proceedings when the victim defends against a criminal charge based on the defense of duress.
Increase the penalty for the second conviction of fourth degree assault on the same victim by reclassifying it from a gross misdemeanor offense to a class C felony. The confinement term may be followed by two years of community supervision.
Direct the Sentencing Guidelines Commission to develop guidelines on court-ordered batterer treatment as part of the perpetrators' sentence.

Fiscal Impact

The proposed legislation has no determinate fiscal impact. Governor Lowry's budget request includes $3.9 million in General Fund-Federal and $1.3 million in General Fund-State to strengthen state and local services for domestic violence victims and their children.

Staff Contact

Lorraine Lee, Office of the Governor, (360) 753-1022.
Judith Brighton, Office of the Governor, (360) 586-3028.

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Maintaining the Office of Marine Safety

W ASHINGTON' S 1991 LANDMARK OIL SPILL PREVENTION law established the Office of Marine Safety (OMS) to protect against major oil spills in Puget Sound and Washington's marine waters. Under that legislation, OMS was scheduled to merge into the Department of Ecology in 1997. The Governor believes OMS should be maintained as a separate agency so that Washington will continue to have a focused program to prevent oil spills. A single major spill in Washington's marine waters could undo years of efforts to protect these waters and could have extensive economic impacts on Washington citizens. In view of this concern, the Governor is proposing legislation to keep OMS as a separate state agency.

See associated chart

Background

Between 1984 and 1994, there were 21 significant oil spills, marine casualties, or near misses in Washington's waters. Four marine accidents resulted in spills of over 170,000 gallons of oil, causing environmental damage and extensive loss of marine life. These experiences, plus that of the Exxon Valdez in Prince William Sound, prompted Washington State in 1991 to pass the Oil Spill Prevention Act.

Since on average, only 10 to 20 percent of oil can be cleaned up after a spill, the emphasis of the state law is on establishing new practices to prevent oil spills from occurring in the first place. OMS was set up as a separate state agency, and was charged to develop spill prevention measures for tankers, barges, and cargo vessels carrying large volumes of bunker fuel. Under the 1991 Act, OMS was scheduled for review by the Legislative Budget Committee, now Joint Legislative Audit and Review Committee (JLARC). Absent reauthorization by the Legislature, OMS will be abolished and its programs merged into the Department of Ecology.

In its short five-year history, OMS has gained national and international attention for its leadership in developing innovative programs aimed at reducing human error, which accounts for 85 percent of all marine accidents. Recently, the state won a major federal court case upholding its right to regulate and protect its marine waters from the risk of an accident by oil tankers. The U.S. District Court decision against Intertanko (International Association of Oil Tanker Owners) ruled that the state's rules are constitutionally valid, and do not violate the commerce clause or foreign affairs clause of the U.S. Constitution.

Given the serious impacts of spills in recent years and the enormous potential for disaster from a major oil spill, Governor Lowry believes the state should maintain the strongest possible vigilance to minimize the risk of a major spill from happening here. Experience suggests that this can best be accomplished by a state agency whose sole focus is to develop policies designed to prevent maritime accidents and to oversee implementation of those policies.

A 1996 JLARC staff report concluded that there is no compelling need to merge OMS with the Department of Ecology, since there is little evidence that the current organizational structure is a problem. Problems could develop, however, if OMS is merged with a much larger agency that has many other issues competing for attention. In addition, the JLARC staff report concluded that there would be an increased cost associated with a merger because of Ecology's higher overhead. For these reasons, the Governor supports keeping OMS as a separate agency.

Proposed Legislation

The Governor's request legislation is designed to achieve three objectives identified in the JLARC study on the OMS merger issue:

The proposed bill would remove the language that moves OMS to Ecology on July 1, 1997, thereby keeping OMS as a separate agency.
The bill would eliminate one area of possible overlap by transferring OMS' current responsibility for oil-spill response planning for vessels to the Department of Ecology, which has the responsibility to respond when there is an actual spill.
Finally, the legislation would clarify the relationship between OMS and the federal Coast Guard regarding oil spill prevention activities.

Staff Contact

Bob Nichols, Office of the Governor, (360) 586-0826.

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Funding Watershed Plan Implementation

M ANY CONCERNED CITIZENS and organizations throughout the state are interested in developing watershed protection plans, but a major obstacle is the lack of funding for implementation. Recognizing the need to move ahead with real on-the-ground actions, Governor Lowry proposes legislation that would establish a long-term program to fund implementation of local watershed plans that meet certain criteria. The legislation also promotes a comprehensive and integrated approach to watershed management that benefits the economic and environmental health of watersheds.

See associated charts

Background

The state's watersheds are seriously threatened. Numerous basins are closed to appropriation or repeatedly face drought-like conditions. Much of Washington's marine and fresh water suffer from poor water quality. Flooding events do extensive damage to property and habitat. Water for public water systems, industrial use, and agricultural development compete with the needs of salmon. Competition over water uses causes strife among neighboring citizens who depend on the health of watersheds. The National Marine Fisheries Service is currently reviewing numerous stocks of salmon and steelhead throughout the state for listings under the federal Endangered Species Act (ESA). If listings do occur, significant restrictions on water and land uses in the state's watersheds can be expected.

The most effective way to resolve watershed problems is at the local level. Citizens, businesses, agriculture, environmentalists, fishers, recreationists, and private landowners all have an intimate relationship with the watershed and care about how the watershed is to be used. A locally-driven process is best suited to bring competing interests together to resolve the needs of all of the interests in a watershed. Many local watershed plans have been developed or are currently underway. Many at the local level would like to initiate a watershed planning effort. But a significant obstacle to moving ahead is the lack of funding for implementation.

Another major obstacle to watershed planning and implementation is the lack of coordination among the federal, state, tribal, local government, and citizens group programs and activities. Instead of looking at problems from an integrated and comprehensive point of view, many of these programs approach the watershed in a segmented manner, without any particular coordination with other activities, including other planning efforts. Incompatible objectives, overlapping responsibilities, and inefficiency is often the result.

Proposed Legislation

The Governor proposes legislation authorizing a major funding program for watershed plan implementation. Specifically, the bill would:

Authorize, through a referendum to the people, the use of $258 million in bonds for grants to local governments to fund implementation of watershed plans. The bond authorization would also cover the administration of the grant program.
The bill establishes statutory criteria by which completed watershed plans would be evaluated to qualify for state funding assistance. Emphasis would be on funding those plans that are integrated with other planning efforts, comprehensive in scope, and have a particular focus on salmon and federal Endangered Species Act listings, flood prevention, water quality and quantity issues, and Puget Sound Plan implementation.
State agencies would review and prioritize watershed plans submitted for funding. The Interagency Committee for Outdoor Recreation (IAC) will convene a panel consisting of citizens from each congressional district and representatives from local and tribal governments who will make formal recommendations for funding to the Governor.
The panel's recommendations on watershed plans would be included as part of the Governor's biennial budget request. The Governor and the Legislature could delete but not add to the list.
The Interagency Committee for Outdoor Recreation would administer the local watershed implementation grant program.

Fiscal Impact

Grants to local government for implementation of local watershed plans would be funded through a $258 million bond authorization that would go to a vote of the people in November 1997. Subject to voter approval the Governor's proposed 1997-99 biennial budget contains $15 million to implement local watershed plans. In addition to this legislation the Governor's proposal budget also includes funding to assist local communities in watershed planning efforts, strengthen the data and information base necessary for local decision making on water-related activities, and increase support for statewide responsibilities dealing with water and salmon recovery.

Staff Contact

Lloyd Moody, Office of the Governor, (360) 753-4704.
Kay Baxstrom, Office of Financial Management, (360) 753-1754.

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Reauthorizing the Employment
and Training Trust Fund

T HE LEGISLATURE ESTABLISHED the Employment and Training Trust Fund in 1993 to finance education programs for dislocated and unemployed workers at community and technical colleges, and to increase the capacity of the Employment Security Department to help the unemployed find jobs. Since then, the trust fund has provided training to 20,000 dislocated and unemployed workers. The fund is scheduled to sunset in January 1998, unless the Legislature takes action to continue it. Despite improvements in the state's economy since 1993, many workers, especially those affected by industrial downsizing, still need additional education and training to adapt to a changing economy. For this reason, the Governor is proposing to continue the Employment and Training Trust Fund under its current funding source.

See associated chart

Background

Since the 1930s, the state has funded unemployment insurance for workers who lose their jobs as part of the national unemployment insurance program. Benefits are paid from the state's Unemployment Insurance Trust Fund, which is supported by employer paid unemployment insurance. Prior to 1993, this state did not have a dedicated source of funding to pay for retraining workers affected by industrial downsizing and other economic shifts.

The need for this type of support became apparent in the early 1990s, when disruptions in the aerospace and natural resource industries left many workers in need of training to qualify for jobs in other fields. Community and technical colleges did not have the enrollment capacity to meet these additional demands for education and training services. In 1993, the Legislature responded by creating a dedicated Employment and Training Trust Fund. The Legislature funded the trust fund by a 12/100 of 1 percent of taxable payroll, reducing unemployment taxes by a small amount, and establishing a dedicated tax of the same amount to fund workforce training. Net costs to employers have not changed as a result of the Employment and Training Trust Fund.

The new trust fund supports community and technical college classes for dislocated and unemployed workers, as well as support services and financial aid to allow them to complete their job training courses. Workers who participate in the program have been finding jobs at salary levels averaging 93 percent of their earnings prior to being laid off, while fully 80 percent of the graduates from the program in 1994-95 were employed seven to nine months after graduation. The Legislature also authorized funds from this program to increase the efficiency of the Employment Security Department, so that its services to assist unemployed workers could be more effective. Without legislative action, the funding for the program will end in January 1998, and program authority will end June 30, 1998.

Proposed Legislation

This legislation to preserve the Employment and Training Trust Fund would continue the current dedicated tax for employment and training, while maintaining unemployment insurance taxes at their reduced rate. Under the Governor's proposal, growth in the program would be limited in the 1997-99 Biennium by sending all revenues in the Employment and Training Trust Fund over the appropriated level to the Unemployment Insurance Trust Fund. In addition, the Governor's proposal would cap program growth in subsequent biennia, requiring that any funds above a specified target flow to the Unemployment Insurance Trust Fund. This target would ensure that the program has more funds in periods of economic distress and less in times when the economy is performing well.

The Governor's proposal would continue the current mix of programs financed by the trust fund, with approximately 86 percent of the funding providing placement to 7,200 unemployed and dislocated workers per year at community and technical colleges, and financial assistance for those students. The remaining funds would be used to improve job placement services, labor market information, and automation at the Employment Security Department. Existing efforts to co-locate Employment Security employees at community and technical colleges would be expanded from the current 24 sites to all community and technical colleges in the state, with additional services targeted to those colleges serving areas with the greatest economic dislocation and the greatest need for job placement assistance.

Fiscal Impact

If the program is renewed, an estimated $76,920,000 in revenue would be deposited in the Employment and Training Trust Fund in the 1997-99 Biennium. If the program is not renewed, the program is projected to generate $23,460,000 in revenue between the beginning of the biennium and January 1998, when the fund source would be discontinued. If the program is not renewed, $53,460,000 would be deposited to the Unemployment Insurance Trust Fund rather than to the Employment and Training Trust Fund.

Staff Contact

Steve Hodes, Office of the Governor, (360) 586-6771.
Dan McConnon, State Board for Community and Technical Colleges, (360) 753-0878.
Stan Marshburn, Employment Security Department, (360) 902-9311.

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Reauthorizing the Governor's
Rural Community Assistance Team

H ELPING FAMILIES AND COMMUNITIES in rural Washington hurt by cutbacks in timber and salmon harvests remains a major priority for the state. While the unemployment rate in areas dependent upon natural resources extraction has dropped during the past biennium, it still remains more than two points above the state average. The state needs to continue its efforts to assist dislocated workers in the transition to new employment and help impacted communities rebuild their economic capacity. For these reasons, the Governor is proposing legislation that would reauthorize the Rural Community Assistance Team, and the various programs designed to assist dislocated workers and communities.

See associated chart

Background

The impact of the court ordered reduction of timber harvest in 1990 has been the loss of an estimated 20,000 forest products-related jobs and severe economic problems for communities dependent upon those industries. Many of the same coastal communities, already struggling with the timber crisis, suffered another blow during the last three years with the virtual shutdown of the commercial and recreational salmon fishing industry.

The state's response has been a comprehensive multi-agency effort that includes basic support and retraining for workers and economic assistance for communities. Federal assistance, patterned after the state approach, came in the Economic Adjustment Initiative of the Forest Plan in 1993. The state programs were extended to address the salmon crisis in 1995 legislation. The Rural Community Assistance Team coordinates this seamless program delivery effort.

While the state and federal effort to deal with the timber crisis has shown positive results, major problems remain. An accelerated harvest of privately held timber has kept a reduced number of mills operating the past few years, but supply and economic problems have brought a recent round of shutdowns. Numerous mills with up to 400 employees each have either closed, made major workforce reductions, or are at risk in small rural communities dependent upon their payroll

The critical status of wild salmon stocks in the Northwest and proposed recovery efforts have the potential of creating even more severe problems for rural communities than the timber crisis. The imminent Endangered Species Act listings of salmon species will bring major economic impacts not only for the Coastal and Puget Sound fisheries, but other water-dependent industries in the Columbia River drainage.

Proposed Legislation

The legislation would reauthorize the Rural Community Assistance Team and the various state programs designed to assist dislocated workers and communities. The programs include:

Extended unemployment benefits for workers while in retraining programs.
Mortgage and rental assistance to prevent families of dislocated workers from losing their homes.
Additional access to four year and community college classes for dislocated workers.
Direct human services funds to communities to fill social services gaps.
Infrastructure assistance under the Community Economic Revitalization Board.
Technical assistance to help communities redirect and expand local economies.

The legislation also would broaden the definition of impacted salmon workers to assure that fishers are eligible for assistance through programs from which they may be currently excluded.

In addition, the definition of "Rural Impact Areas" would be modified to more closely target program resources to individuals and communities with the greatest need. Seventeen nonmetropolitan counties and rural areas in three metropolitan counties would qualify under the proposed definition.

Fiscal Impact

The Governor's proposal calls for funding the Rural Community Assistance Team at $600,000 for the 1997-99 Biennium - the same level as for the current biennium. Half of the amount would come from the Employment Security Administrative Contingency Fund and half from General Fund.

The Timber/Salmon Retraining Benefits reauthorization is estimated to impact the Unemployment Insurance Trust Fund by approximately $60 million for the next biennium. This program, which provides income support to dislocated workers while they are in retraining, does not impact the state General-Fund.

Other programs would be funded at the current budget level.

Staff Contact

Dean Judd, Office of the Governor, (360) 586-4046.

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Instituting a Prepaid College Tuition Program

T HE COST OF HIGHER EDUCATION for students and families has been steadily increasing over the last two decades, threatening the ability of lower and middle income families to pay for a college degree. As the student population continues to grow rapidly, academic loans and limited financial aid resources are not sufficient to support an equitable educational opportunity for middle income families and individuals. Consistent with similar programs in other states, the Governor is proposing legislation to initiate a prepaid college tuition program to help these families meet their higher education financial needs.

See associated chart

Background

Prepaid tuition programs allow individuals and families to financially prepare for the future cost of higher education by purchasing tuition at today's rate and allowing it to be redeemed in a future year at no additional cost to the beneficiary (student). Several states have prepaid tuition programs or are in the process of developing these programs. The first state-sponsored prepaid tuition program was started in Michigan in 1987. The states of Florida, Ohio, and Alabama quickly followed Michigan's lead, although they incorporated modifications that made their programs significantly different from Michigan's.

Recent congressional actions have confirmed that qualified state tuition plans are exempt from federal taxation. This development along with an increasing awareness of the successful programs in Florida, Ohio, and Alabama have rekindled interest in state prepaid tuition programs.

In 1996, the Washington State Legislature passed legislation requiring the Higher Education Coordinating Board (HECB) to recommend a program design and draft a prepaid tuition proposal for the Legislature to consider in the 1997 session. The Legislature appropriated $140,000 for these activities.

Proposed Legislation

Governor Lowry's state prepaid tuition proposal, based on the HECB's recommendations, would allow students or families to purchase tuition prior to enrolling in a higher education institution. The program will allow families to purchase college tuition at today's prices for use in a future year or fractions of credit hours, at state research universities, regional universities, and community colleges. When the beneficiary enrolls in a state institution of higher education, the tuition may be redeemed without any additional cost, regardless of the tuition price increases which may have occurred in the intervening years. The state guarantees the tuition unit purchased will retain full value at the time of redemption.

Beneficiaries may also elect to use the program as an educational savings plan, to help pay tuition and fees at private colleges, private vocational schools, and out-of-state schools. Purchasers may receive refunds under a series of specific conditions.

A trust account would be established for the deposit of all money received for the purchase of tuition credit hours and for the deposit of investment proceeds. Tuition payments to institutions are made from the trust account. The trust account is managed by the State Treasurer's Office. The investment policy for the account is established by the State Investment Board.

There would be an annual actuarial review of the program. If it is determined to be actuarially unsound and unable to keep pace with tuition growth, the program would be terminated. Once termination has been declared, the state honors its commitments for tuition to students for the next ten years or refunds the money to the purchaser.

This program helps middle income families by providing a state guaranteed mechanism to both save for and invest in future higher education tuition expense at the current cost.

Fiscal Impact

$1 million loan from General Fund for start up costs.

Staff Contact

Stephen Smith, Office of the Governor, (360) 586-4158.
Mike Bigelow, Office of Financial Management, (360) 753-4702.

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Providing Property Tax Deferrals
for Homeowners

D URING THE PAST DECADE, population growth together with a generally strong economy have worked to push up the value of family homes, especially in the Puget Sound region. Although the increase in home values has raised the net worth of many homeowners, many have found that their annual income has not kept pace with the rapid growth in their property tax liabilities. The Governor is proposing legislation to help homeowners with modest incomes to cope with rapidly growing property tax bills by allowing them to defer a portion of their property taxes.

See associated chart

Background

In calendar year 1996, property taxes due total $4.293 billion. Of that amount about 25 percent will be collected for the state levy, 40 percent for local regular levies, and the remaining 35 percent for special levies. The average state-wide total property tax rate for 1996 is $13.82 per $1,000 or assessed value. Despite the various limits on property taxes, total property taxes levied have grown at an average annual rate of almost 8 percent in the 1990s. Personal income for the state, on the other hand, has grown at a rate of only 6 percent per year on average during the same period.

The Governor's proposal would especially benefit homeowners whose property taxes are rising faster than their incomes, or whose financial situation makes it difficult to meet all their financial obligations. It would help people avoid being "taxed out of their homes," but still meet their property tax obligations by deferring payment of the taxes, plus interest, until they sell their homes or die. Others may choose the deferral as a means to tap the increasing value of their homes - for many people, their largest asset - to meet current obligations, rather than further stretch already tight family budgets.

Recent research by the Department of Revenue indicates that about 50 percent of all homeowners in the state have incomes of $50,000 or less. The department estimates that about 11.1 percent of Washington homeowners eligible for the deferral would participate in the program. That represents about 21,000 Washington homeowners. This legislation would not replace existing senior citizen property tax deferral and exemption programs.

Proposed Legislation

The Governor is proposing legislation that would grant a partial deferral of property taxes to qualified homeowners. Homeowners with adjusted gross income (AGI) of less than $50,000 could defer the portion of their property tax bill that exceeds 5 percent of AGI. For example, a homeowner with an annual AGI of $40,000 could defer any amount of property taxes over the first $2,000 in property taxes. In total, homeowners could defer up to 80 percent of their equity in their primary residence over their lifetime. The deferred taxes would then be paid back, with interest, upon the sale of the property or death of the homeowner, if there is no surviving spouse.

Fiscal Impact

The deferral program would become effective for property taxes levied in 1997 and due for payment in 1998. Assuming a participation rate of 11.1 percent of eligible homeowners in the first year, $20.2 million in property taxes would be deferred in Fiscal Year 1998 and $20.7 million in Fiscal Year 1999 for a total of $40.9 million in deferrals for the 1997-99 Biennium. Direct General Fund-State revenue losses from the deferral are $10.8 million from the state property tax levy in Fiscal Year 1998 and another $10.9 million from the state property tax levy in Fiscal Year 1999. Another $19.2 million in General Fund-State revenues would be expended by the Department of Revenue to the counties to offset the losses to local regular and special levies caused by the deferral. Eventually all the deferred taxes will be paid back to the state, with interest, although no repayments are expected in the 1997-99 Biennium. Administrative costs for the program are estimated to be $3.9 million during the 1997-99 Biennium, of which $1.6 million are one time only costs.

Staff Contact

Len McComb, Department of Revenue, (360)753-5574.
Jim Schmidt, Office of Financial Management, (360)753-0258.

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Strengthening Restrictions
Tobacco Sales To Children

C IGARETTE SMOKING IS THE MOST DEADLY - and preventable - cause of disease and premature death. Tobacco use kills 430,000 Americans each year through heart disease, stroke, cancer, lung disease, and other diseases. Despite stronger laws and clear evidence of the dangers of smoking, experimentation with cigarette smoking by children and adolescents is on the rise in this state. In response to these statistics and overwhelming evidence of the deadly effects of smoking, the Governor is proposing legislation to strengthen the state's laws governing youth access to tobacco.

See associated chart

Background

The statistics on youth and smoking paint a devastating picture of early addiction, premature death, and inadequate laws. More than 80 percent of smokers begin smoking before age 18. The average teenage smoker starts smoking at 14 and becomes a regular smoker by 18. Each day, another 3,000 American young people become smokers; nearly a third of them will eventually die because of their addiction. In this state, studies show that experimentation with cigarette smoking among eighth graders jumped from 31 percent in 1992 to 48.9 percent in 1995.

Studies also show that youth who do smoke underestimate the chances that they will become addicted. Although only five percent of daily smokers surveyed in high school said they would still definitely be smoking in five years, nearly 75 percent continued smoking seven to nine years later. People do, however, give up smoking. As of 1992, about 3,500 Americans successfully stopped smoking every day. These people, combined with the 1,178 people who die each day as a result of smoking create a problem for sellers of tobacco. They need to recruit nearly 5,000 new smokers every day to maintain sales levels. Nearly all new smokers are children and adolescents.

Young people and some merchandisers have found ways to circumvent current state laws governing youth access to tobacco products. Mail order sales and self-service tobacco displays provide easier access to tobacco for young people. Free samples distributed by tobacco companies also create opportunities for youth to obtain cigarettes. While samplers must obtain a license from the Liquor Control Board (LCB), sampling events have been conducted without notifying the Board, making enforcement and monitoring difficult.

Another area of easy youth access to tobacco is the sale of single cigarettes or "kiddy" packs. At 25 cents per cigarette, the sale of single cigarettes makes them affordable to youth. Current law requires sales in original, unopened packages, but several manufacturers have tried to by-pass the intent of the law by packaging single cigarettes in plastic tubes. The U.S. Food and Drug Administration recommends that cigarettes be sold in packages of no less than 20 to discourage youth purchases.

In addition, there are problems connected with enforcement of youth access laws. The LCB reports that flexibility in imposing penalties will enhance effective enforcement. Enforcement officers are experiencing increasing resistance in situations where they must take action. The LCB has, therefore, recommended that it should be a misdemeanor to resist an enforcement officer. Enforcement officers have also encountered problems preventing sales of tobacco products without a license, which is currently not required for retailers who sell smokeless tobacco but not cigarettes. When a retailer is penalized, manufacturers sometimes pay the fine, undermining deterrence from future offenses.

Proposed Legislation

To address these and other problems contributing to tobacco use among children, Governor Lowry is proposing legislation that does the following:

Mail order sales of cigarettes and smokeless tobacco and distribution of free samples of tobacco products would be prohibited.
Cigarettes must be sold in original, unopened containers of 20 cigarettes or more. No single sales of cigarettes would be allowed, regardless of their packaging.
Self-service displays of tobacco products would be prohibited. All such products must be sold behind the counter by means of an in-person transaction, except for vending machine sales in authorized locations.
Fixed outdoor tobacco advertising displays or promotion could not occur within a one-mile radius of schools or playgrounds. Advertising of tobacco products in facilities owned or funded by the state would be prohibited.
Special cigarette licensure requirements would apply to the sale of all tobacco products. The LCB would be authorized to impose a range of penalties for violation of tobacco laws. Persons who resist or oppose tobacco enforcement officers would be guilty of a misdemeanor. Possession of tobacco products without a license with intent to sell would also be a misdemeanor. Tobacco manufacturers, wholesalers, or their agents would be prohibited from paying a retailer's monetary penalty.
The current language that preempts local government from adopting more restrictive ordinances regarding youth access to tobacco would be deleted. The state law would not supersede local regulation that is at least as restrictive as the state law.

Staff Contact

Fred Hellberg, Office of the Governor, (360) 586-1649.

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Increasing Protection Against
Environmental Tobacco Smoke

T OBACCO SMOKE RELEASED in enclosed spaces is both dirty and dangerous. In the United States deaths attributed to passive smoke ranked third among all causes of death. Efforts to prohibit smoking indoors have had only partial success, leaving thousands of workers and much of the general public unwillingly exposed to the threat of environmental tobacco smoke. To reduce the health risks to non-smokers, the Governor proposes to offer a referendum to the people of the state that would expand the application of Washington's Clean Indoor Air Act in order to prohibit smoking in all enclosed worksites and public places, including bars and restaurants, with very narrow exceptions.

See associated chart

Background

A study done in 1980 by the US Environmental Protection Agency (EPA) showed that indoor places where smoking was allowed had air pollution concentrations that would be prohibited under the nation's environmental laws if the air were outdoors. This pollution is more than an inconvenience - secondhand smoke is listed by the EPA as a Group A carcinogen, associating it with other lethal substances such as asbestos, benzene, and radon. This smoke contains more than 4,000 chemicals, three fourths of which are known cancer causes.

Evidence of the health threat posed by passive smoke shows that there is a 30 percent increase in the risk of heart disease among non-smokers who are married to smokers. For every eight deaths caused by active smoking, one non-smoker dies from indirect exposure to tobacco smoke.

Washington's Clean Indoor Air Act was passed by the Legislature in 1985. While the act prohibits smoking in public places, its many exceptions still permit much of the general public to be unwillingly exposed to smoke. The act also allows the designation of smoking areas in restaurants and other enclosed areas that do not seal dangerous smoke away from the public.

In 1994, in order to protect the health of workers, the Department of Labor and Industries began enforcing by rule, an indoor smoking ban for offices. This ban is applicable only to indoor office work environments. Other work areas are not included, even if they are enclosed.

While these two governmental actions have had the effect of reducing involuntary exposure to tobacco smoke, exposure is still permitted in such places as open areas in airports, restaurants, bars, bowling alleys, and non-office work environments. Workers who must enter smoke-polluted spaces to earn their livelihood are especially vulnerable to the threat of environmental tobacco smoke.

Proposed Legislation

The proposed bill amends the Clean Indoor Air Act (Chapter 70.160 RCW) in order to prohibit smoking in all enclosed worksites and public places, with the following exceptions only:

Private residences, except when they are being operated as family care homes;
Privately owned or leased passenger vehicles and business vehicles where no non-smoking employees are present;
Twenty-five percent of the rooms in a hotel or motel;
In conjunction with religious ceremonies and theatrical performances;
For medical research or treatment purposes;
In smoking rooms designated by employers;
On the premises of sole proprietorships or partnerships that are directly vented to the outdoors and where no employees are present; and
In private clubs and fraternal organizations where no employees are present.

Designated smoking rooms must be in non-work areas that are vented directly to the outdoors. If such rooms are designated for smokers, smoke free breakrooms must be provided for non-smoking employees.

Violations of the chapter would be subject to penalty as Class Two civil infractions and each day of violation constitutes a separate infraction. The act would be enforced by the Department of Labor and Industries, the Liquor Control Board, and local health and law enforcement agencies wherever these agencies exercise jurisdiction. The agencies are empowered to adopt rules to enforce the chapter, and are required to coordinate both rules and enforcement efforts.

Any local ordinances that restrict smoking in ways that are less strict than the act would be superseded by state law, but stricter local ordinances would be permitted.

The Secretary of State is directed to submit this proposal to the people as a referendum.

Staff Contact

Bill Daley, Office of the Governor, (360) 586-0829.

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Reauthorizing the Indeterminate
Sentence Review Board

T HE INDETERMINATE SENTENCE REVIEW BOARD (ISRB) controls and manages the population of offenders who are serving sentences under the old, indeterminate sentencing laws in effect prior to July 1984. The ISRB, also commonly referred to as the "parole board," is scheduled to sunset on June 30, 1998. Current law requires that the Governor recommend to the 1997 Legislature whether to continue the Board, or transfer its functions to the courts or to another executive agency. Governor Lowry recommends the reauthorization of the Board for a ten-year period.

See associated chart

Background

The ISRB has two primary functions. It determines when an inmate is fit for release from confinement. Parole is granted only upon determination that the offender has rehabilitated and is safe to be released into the community. Absent such a finding, the ISRB has the power to reset the offender's term of confinement and extend the release date up to the maximum term.

The ISRB's second main function relates to the offenders on parole. When a parolee violates a parole condition, the ISRB decides what sanctions to impose. These can include parole revocation and return to prison.

There are approximately 1250 offenders under the ISRB's sole jurisdiction: 850 are in prison and 400 are on parole in the community. Of the 850 inmates, one-third are serving sentences for homicide offenses, one-third for sex offenses, and the remaining one-third for violent crimes.

The last comprehensive inquiry into the feasibility of transferring the ISRB's functions elsewhere occurred in 1989. A legislatively created committee developed alternative means of managing the ISRB's offender population. The options reviewed were: transferring the ISRB's functions to the superior courts, transferring them to another executive agency, and giving the offenders a definite release date. Based on the committee's report, the Legislature did not opt for any of these alternatives. Instead, the Legislature extended the ISRB's sunset date until 1998 and requested that the Governor make recommendations on this issue to the 1997 legislature.

This summer, a workgroup was convened to revisit the issue. Workgroup participants included representatives of the ISRB, the Office of Financial Management, the Department of Corrections, the Office of the Administrator for the Courts, the associations of Superior Court Judges, prosecuting attorneys and defense attorneys, and victim advocates.

In its evaluation of different options the workgroup considered such issues as public safety, inmates' liberty interests, legal constraints, and process considerations. The group examined the possibilities of transferring the ISRB's duties and responsibilities to the courts or to another executive agency. The workgroup, with the exception of the defense attorneys, concluded that the best option is to continue the board. No other alternative satisfies public safety concerns and legal constraints.

In addition to three full-time board members, the ISRB is staffed by an executive secretary and seven other employees. Workload projections indicate that by FY 1999, the ISRB can be phased down by changing two board member positions to part-time and eliminating one hearing officer position. The ISRB's offender population is expected to decline steadily over the next decade, reaching half of its current level by FY 2005.

Proposed Legislation

Governor Lowry proposes that the ISRB's sunset date be extended to June 30, 2008. The proposed legislation also lifts the prohibition against board members holding public office or engaging in other business or employment. Under the proposed legislation, board members would be allowed to engage in these activities if they obtain the approval of the Executive Ethics Board.

Fiscal Impact

The ISRB's operating budget will be $2,158,000 General Fund-State for the FY 1997-99 Biennium, a decrease from its $2,339,000 budget for the current biennium.

Staff Contact

Lorraine Lee, Office of the Governor, (360) 753-1022.
Kit Bail, Chair, ISRB, (360) 493-9271.
Dennis Marsh, Executive Secretary, ISRB, (360) 493-9266.

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Improving the Use of Sentencing Options
for Nonviolent, Drug Offenders

T HE STATE'S PRISON POPULATION has doubled over the past eight years, increasing from 6,053 inmates in 1988 to the present population of 12,127. This 100 percent increase far exceeds the 19.3 percent growth in the state's general population over the same period. The inmate population is expected to increase to 17,000 over the next decade. In response to this dramatic growth in the prison population, Governor Lowry proposes to expand the use of sentencing options for nonviolent, drug offenders.

See associated chart

Background

The prison population increase since 1988 is primarily attributable to the imposition of more and longer sentences mandated by the Legislature and by citizen initiatives for certain offenses and offenders. Over this period, for example, the Legislature mandated longer sentences for drug offenses, property crimes, and sex offenses. In 1994, voters passed Initiative 593, "Three Strikes and You're Out," which requires life sentences for third-time serious violent offenders. In 1995, voters approved Initiative 159, the "Hard Time for Armed Crime Act," which significantly increases sentences for offenses committed with a firearm.

No other functional area of government has grown as quickly as corrections. Between the 1989-91 and 1995-97 Biennium, the Department of Corrections' (DOC) percentage of the General Fund-State (GF-S) budget increased from 3.3 percent to 4.2 percent. DOC's operating budget in the current biennium is $759 million GF-S. With current caseload projections, it is estimated that the DOC budget will grow an average of $136 million per biennium, with operating expenditures in excess of $1.3 billion by the 2003-05 Biennium.

Under current sentencing policies and assuming existing trends, DOC will need an additional 3,852 beds by fiscal year (FY) 2002. The inmate population is expected to increase to 17,000 over the next decade, a 39 percent increase. In comparison, the state's general population is expected to increase by 15.6 percent.

Corrections costs are expected to increase further as the inmate population growth continues to climb and changing inmate demographics increase the demand for services. Drug offenders make up a larger portion of the population. In FY 1987, drug offenders accounted for 4 percent of the population (295 inmates). By FY 1996, they made up 25 percent (3,028 inmates).

Proposed Legislation

As an alternative to building more prisons to house the growing inmate population, Governor Lowry proposes sentencing alternatives for nonviolent offenders. The proposed legislation would expand the use of two sentencing options - the Work Ethic Camp Program and the Special Drug Offender Sentencing Alternative - for nonviolent and drug offenders. The proposal would also establish different sentencing ranges for drug dealers based on the quantity of drugs, with the result that small-time drug dealers will serve less prison time than those who deal in large quantities.

These proposed changes promote the purposes of the 1984 Sentencing Reform Act to make frugal use of the state's resources, to offer the offender an opportunity for self-improvement, and to ensure that the punishment is proportionate to the seriousness of the offense.

Specifically, the proposed legislation would:

Establish three different sentencing ranges for drug sales, depending on the quantity involved:

Offender Quantity Seriousness Ranking Sentencing Range

Drug Wholesaler 10 grams or more Level IX 31 to 41 months

Drug Dealer more than 3 and less than 10 grams Level VIII 21 to 27 months

Drug Facilitator up to 3 grams Level VI 12+ to 14 months

Expand the use of the Special Drug Offender Sentencing Alternative to include offenders with prior convictions for possession and nonviolent offenses. Currently only first-time drug felons are eligible. This sentencing option includes comprehensive substance abuse assessment and treatment, and suspension of half of the offender's sentence.
Expand the use of the Work Ethic Camp Program to include non-violent, non-sex offenders with a sentence of up to 48 months. Existing restrictions limit eligibility to those with a sentence of up to 36 months. Successful completion of the Work Ethic Camp Program results in a shorter sentence of four to six months.

Fiscal Impact

The proposed legislation results in a savings of $641,000 General Fund-State in the FY 1998-99 biennium, and $8.8 million General Fund-State in the ensuing biennium.

Staff Contact

Lorraine Lee, Office of the Governor, (360) 753-1022.

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Simple Majority School Levy
Constitutional Amendment

I N RECENT YEARS, school districts around the state have found it increasingly difficult to obtain the required voter approval to pass their local levies. Because a super-majority, 60 percent YES vote, is required, many districts have been denied this important funding even though ballots have shown that more than half the voters approve. This bill would amend the State Constitution to allow a simple majority, 50 percent voter approval for school levies, significantly increasing the potential for schools to receive necessary funding for quality education.

See associated chart

Background

The Washington State Constitution grants school districts the authority to levy local property taxes if the district's voters approve a levy. This approval requires at least a 60 percent YES vote, and also requires voter turnout to be at least equal to 40 percent of the voter turnout at the previous general election. A maintenance and operation (M&O), or capital projects levy may still be approved with voter turnout of less than 40 percent of the previous general election turnout, if the number of YES votes equals at least 60 percent of the number that represents 40 percent of the previous general election turnout.

For school districts to receive approval to issue bonds for capital purposes, the same super-majority requirement applies, and voter turnout equal to 40 percent of the voter turnout at the previous general election is required.

Analysis of recent levy failures demonstrate the need for this change in the State Constitution. In the February 1996 school levy elections, 38 of 207 school districts' M&O levies failed. Thirty-six of the 38 levies that failed received YES votes of greater than 50 percent. Most of these school districts were able to pass their levies in a subsequent levy election a few months later. At year-end, seven districts had attempted, but failed to pass their M&O levies for 1997.

Of the 19 school districts that proposed bond issues to voters in February 1996, nine of these bond measures failed. Five of the nine received YES votes greater than 50 percent. Similarly, of the 14 school districts submitting capital project levies to voters in the same election, eight passed and six failed. Five of the six capital levies that failed received YES votes greater than 50 percent.

Proposed Legislation

The Governor's proposal will amend the State Constitution to reduce the voter approval requirement for school district levies from the current super-majority, 60 percent YES vote, to a simple majority. This amendment will also eliminate the minimum voter turnout requirement.

Fiscal Impact

If this proposed constitutional amendment is approved, most of the fiscal impact would occur at the local level. However, there could be secondary state budget impacts. With more successful capital bond levies, demand for state matching funds for school construction would also be likely to increase. As more eligible school districts succeed in passing M&O levies, state levy equalization payments would also increase. Based on the outcomes of the February 1996 elections, the estimated state fiscal impact is about $1.3 million per year beginning in calendar year 1999. Of this amount, $737,000 falls in the 1997-99 Biennium.

Staff Contact

Mike Bigelow, Office of Financial Management, (360) 753-4702.
Stephen Smith, Office of the Governor, (360) 586-4158.

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Regulating the Commercial Use
Electronic Government Records

T ECHNOLOGICAL CHANGE has made many public records a valuable commodity. Government records in electronic format are increasingly in demand for a wide range of commercial purposes, and some of the most valuable records include personal information about citizens. Commercial use of personal information contained in electronic public records raises new concerns about citizens' privacy as technology makes it possible to combine and search records cheaply and easily. Based on recommendations of a joint executive-legislative work group, the Governor is proposing legislation that would prohibit certain invasive commercial uses, provide additional protection against inappropriate commercial use of electronic records, and allow agencies to recover a reasonable share of the cost of providing enhanced access to these records.

See associated chart

Background

In 1996, the Legislature approved three measures that would have expanded commercial use of electronic government records that included personal information about citizens. Governor Lowry vetoed these measures, citing concerns about citizens' privacy and the lack of a consistent state policy to guide agencies and protect the public in a rapidly changing electronic marketplace. Last spring, the Governor called together a work group of state officials to "recommend whether and under what circumstances government records in electronic format should be released for commercial, profit-making purposes, with particular emphasis on safeguarding the privacy rights of individuals who are the subjects of those records."

The Governor's Work Group on Commercial Access to Government Electronic Records addressed three questions:

How, and under what circumstances, should public records in electronic format be released for business or commercial purposes?
How can citizens be assured that personal information about them will be safeguarded when public records in electronic format are released for business or commercial purposes?
If public records in electronic format are to be released for business or commercial purposes, how should the state allocate and recover costs?

The Work Group reviewed state laws, surveyed state and local agencies, consulted with experts in the field, and heard from private citizens as well as representatives of 28 business interests. Its findings were as follows:

Eighty-five percent of the agencies surveyed have received requests for data or systems for commercial purposes. Twenty-five percent collect personal information from citizens that currently can be released for commercial purposes under state law. Yet only two agencies reported that they inform citizens that the information may be used for commercial purposes.
While some commercial uses of personal information were clearly invasive of citizens' privacy, others were not. Businesses should be allowed to continue using government information for purposes that serve legitimate public interests without invading the privacy of citizens.
The law should provide some definition of prohibited commercial use, and existing law should be strengthened to impose penalties on businesses that misuse personal information in government records.
Current law does not include a consistent or comprehensive way of treating commercial use of sensitive records, including personal information and proprietary and financial records of businesses. Some businesses' records are exempt from disclosure; others must be disclosed upon request to competitors.
Privacy in the electronic age is a pressing concern to citizens. Citizens trust and expect government to safeguard their personally identifiable information, and want to know when and why information about them may be disclosed for commercial use.
The state spends millions of dollars in the development of computer software that supports the public missions of its agencies. Under current law, that software can be defined as a public record, allowing private-sector companies to request copies of the software at the cost of duplication without contributing to its development costs.
Many businesses, with the exception of the newspaper industry, do not object to paying fees for enhanced access to electronic records for authorized business uses. The newspaper industry raised concerns about potential restrictions to public access.
Taxpayers should not have to pay to inspect public records. However, government should charge fees to recover reasonable development costs for enhanced electronic products or services. Any such revenues should be allocated to enhance public access systems and system refurbishment.

Proposed Legislation

The legislation recommended by the Work Group and proposed by the Governor would do the following:

Make a distinction between prohibited commercial uses of personally identifiable information and allowable legitimate business uses that serve a public purpose and do not invade citizens' privacy.
Create penalties for unauthorized commercial use, and allow agencies to use "tracers" to detect unauthorized use.
Allow businesses to request exemptions from disclosure for their own proprietary information.
Require state and local agencies that collect personally identifiable information from citizens to post notices explaining which information can be disclosed as a public record, and for what purposes.
Exempt software that is developed by agencies from the definition of public record.
Allow agencies to charge fees for enhanced electronic access to public records in order to recover a reasonable share of the costs of providing the access, with revenues linked to the development of public access systems and system refurbishment.

Staff Contact

Steve Kolodney, Department of Information Services, (360) 902-3500.
Fred Hellberg, Office of the Governor, (360) 586-1649.

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Eliminating and Consolidating
Boards and Commissions

S TATE GOVERNMENT EXPERIENCED a significant increase in the number of boards and commissions in the early 1990s. Since 1994, however, both the Governor and the Legislature recognized the value of periodically reviewing these groups to determine if some of them could be consolidated or eliminated to reduce duplication, achieve greater operational efficiency, and control their proliferation. As he did in 1994 and 1995, the Governor again proposes legislation to eliminate obsolete or inactive boards and consolidate boards with like functions.

See associated chart

Background

Executive and legislative interest in boards and commissions has resulted in fewer boards being created by law and by state agencies through administrative action. The Office of Financial Management's (OFM) 1995 official survey of boards and commissions found that there were 478 boards in existence during the 1993-95 Biennium, with at least 25 of those groups being phased out during that period. This is more than 100 boards fewer than the high water mark of 569 boards that were reported to OFM during the 1991-93 biennial survey.

Much of this reduction was due to executive and legislative action to eliminate boards, and to a more cautious approach to creating new ones. In 1994 and 1995, Governor's request bills eliminated or merged 96 boards and commissions, with combined biennial savings of more than $1 million. In the 1994 boards and commissions law, the Governor was directed to submit legislation in January of every odd-numbered year that eliminated or merged boards. This 1997 legislation is in response to that requirement.

To develop the legislation, the Governor asked state agencies to review their boards in accordance with the statutory criteria in RCW 43.41.220, and requested recommendations for abolishing and merging boards. In addition, OFM's 1995 statutory survey of boards and commissions was reviewed. Based on these efforts, 16 boards were identified for elimination and consolidation in 1997.

Proposed Legislation

The legislation proposed by the Governor would terminate or merge 16 boards, councils, and committees, as follows:

Consolidation of the Cemetery Board and the Board of Funeral Directors and Embalmers. Increasingly, funeral homes and cemeteries are merging their business operations. A consolidated board would be better equipped to deal with regulatory issues concerning the growing number of these joint ownership businesses. It would also provide a focal point for public information and for citizen concerns and complaints about death care issues. A merged board eliminates duplication of hearing costs and other staff-related functions.
Council on Vocational Education. This statutory board is no longer needed since the federal law requiring its existence has been eliminated.
Collection Agency Board. The regulatory functions of this board can be carried out in a more efficient and timely manner by administrative law judges. With the board meeting only twice a year, it now takes approximately one year from the time a complaint is received regarding collection agency practices to the time charges are actually filed.
Advisory Council on Criminal Justice Services. The membership and duties of this statutory body overlap with three other committees in the information systems area. This separate statutory advisory group to the State Patrol is no longer necessary.
Local Government Advisory Council, Health Care Assistants Advisory Committee, and Community Diversification Advisory Committee. These groups have met very infrequently during the past few years. Because of their inactive status, they should be abolished.
Lower Columbia River Bi-State Water Quality Steering Committee. Since this group has completed its advisory work on water quality conditions, it can be eliminated.
Department of Corrections Work Release Siting Committees. Seven of these committees have completed their work and can be eliminated.

Fiscal Impact

The total 1997-99 biennial savings resulting from this legislation is $314,440.

Staff Contact

Fred Hellberg, Office of the Governor, (360) 586-1649.

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Return to Governor Lowry's Proposed 97-99 Budget Table of Contents

Offender	Quantity	Seriousness Ranking	Sentencing Range
Drug Wholesaler	10 grams or more	Level IX	31 to 41 months
Drug Dealer	more than 3 and less than 10 grams	Level VIII	21 to 27 months
Drug Facilitator	up to 3 grams	Level VI	12+ to 14 months