H-4164              _______________________________________________

                                                   HOUSE BILL NO. 1828

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representative Ballard

Read first time 1/23/86 and referred to Committee on Social & Health Services.

AN ACT Relating to midwifery; and adding new sections to chapter 18.50 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.     Before conducting any business as a midwife, each licensee or license applicant shall file with the director and maintain a surety bond in the amount set by the director running to the state for the benefit for any person injured or damaged as a result of any violation by the licensee or agent of the licensee of any of the provisions of this chapter or of any rule adopted by the director pursuant to RCW 18.50.135.  The bond shall be on a form satisfactory to or furnished by the director, and shall be executed by the applicant as principal and by a surety company authorized to do business in this state as surety.

NEW SECTION. Sec. 2.     In lieu of the surety bond required by section 1 of this act, the license applicant may file with the director a cash deposit or other negotiable security acceptable to the director.  The security deposited with the director in lieu of the surety bond shall be returned to the licensee at the expiration of one year after the license to practice midwifery has expired or been revoked if no legal action has been instituted against the licensee or on the security deposit at the expiration of the year.

NEW SECTION. Sec. 3.     A surety may file with the director notice of withdrawal on the bond of the licensee.  Upon filing a new bond, upon the revocation of the midwifery license, or upon the expiration of sixty days after the filing of notice of withdrawal as surety by the surety, the liability of the former surety for all future acts of the licensee shall terminate.

NEW SECTION. Sec. 4.     Upon the filing of the director of notice by a surety of withdrawal as the surety on the bond of a licensee, the director shall immediately give notice to the licensee of the withdrawal.  The notice shall be sent to the licensee by registered or certified mail with a request for a return receipt and addressed to the licensee at his or her address as shown by the records of the director.  At the expiration of thirty days from the date of mailing the notice, the license of the licensee shall be terminated unless the licensee has filed a new bond with a surety satisfactory to the director.

NEW SECTION. Sec. 5.     Any person having a claim against a midwife for violation of this chapter or any rule adopted under it may bring suit upon such bond or deposit in the appropriate court of the county where the violation occurred or where the office of the midwife is located.  Action upon such bond or deposit shall be commenced by serving and filing the complaint within one year from the date of expiration of the midwifery license in force at the time the act for which the suit is brought occurred.  Two copies of the complaint shall be served by registered or certified mail upon the director at the time the suit is started and the director shall maintain a record, available for public inspection, of all suits so commenced.  Service on the director shall constitute service on the surety and the director shall transmit one copy of the complaint to the surety within five business days after it has been received.  The surety upon the bond shall not be liable in an aggregate amount in excess of the amount named in the bond, and claims shall be satisfied in the order of judgment rendered.  In the event that any final judgment impairs the liability of the surety upon the bond or the amount of the deposit so that there is not in effect a bond undertaking or deposit in the full amount prescribed in this chapter, the director shall suspend the midwifery license until the bond undertaking or deposit in the required amount, unimpaired by unsatisfied judgment claims, has been furnished.

NEW SECTION. Sec. 6.     In the event of a final judgment being entered against the deposit or security referred to in section 1 or 2 of this act, the director shall, upon receipt of a certified copy of the final judgment, order said judgment to be paid from the amount of the deposit or security.

NEW SECTION. Sec. 7.     Sections 1 through 6 of this act are each added to chapter 18.50 RCW.