Charges of a violation of RCW 46.61.502, 46.61.503, or 46.61.504, whether made by citation, complaint, or information, shall be filed, and arraignment on those charges shall be held, within twenty-one days following arrest.

       NEW SECTION. Sec. 7. The legislature finds that driving is a privilege and that the state may restrict that privilege in the interests of public safety. One such reasonable restriction is requiring certain individuals, if they choose to drive, to drive only vehicles equipped with ignition interlock devices. The legislature further finds that the costs of these devices are minimal and are affordable. It is the intent of the legislature that these devices be paid for by the drivers using them and that neither the state nor entities of local government provide any public funding for this purpose.

       NEW SECTION. Sec. 8. If this act mandates an increased level of service by local governments, the local government may, under RCW 43.135.060 and chapter 4.92 RCW, submit claims for reimbursement by the legislature. The claims shall be subject to verification by the office of financial management.

       NEW SECTION. Sec. 9. This act takes effect January 1, 1999."

       On page 1, line 1 of the title, after "devices;" strike the remainder of the title and insert "amending RCW 46.20.720, 46.20.740, and 46.55.113; reenacting and amending RCW 46.61.5055; adding a new section to chapter 46.61 RCW; creating new sections; prescribing penalties; and providing an effective date.", and the bill do pass as recommended by the Conference Committee.

      Signed by Senators Rossi, Kline, Roach; Representatives Sterk, Robertson, Constantine.

MOTION

      Senator Rossi moved that the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6165 be adopted.

POINT OF ORDER

      Senator Kohl: “A point of order, Mr. President. It seems that on any bills that come to us now in the form of a Conference Committee Report, I am not able to find anything in writing, on my desk, with regard to a bill report from what the bill was like before the Conference Committee Report--what the history of the bill was, how we voted on it before, how the House voted on it--unless I had happened to have saved the green bill book from a week or two ago--and I wouldn't even know which one it was in. Unfortunately, I did not save all of them. Is there anyway that we can have more information provided us? I represent constituents and they often ask me how I voted on something, why I voted on something or why I didn't vote for a bill. I am finding this very difficult--to be able to make good decisions on every bill when I can't refer back to anything and find out about what the bill was like, except for this Conference Committee Report. I would appreciate being able to have sufficient material so that I can make good decisions in my voting. Thank you.”

REPLY BY THE PRESIDENT

      President Owen: “Senator Kohl, the President believes that the rules only provide that you must have a copy of the Conference Committee Report available and this is the process that we have followed in the past. Although, I may agree that other information would be helpful, there is not a rule that I can find that it requires that it be there. You might want to confer with the conferees about the history--or the committee.”

      Senator Kohl: “Thank you, Mr. President, and I appreciate that there may not be a Senate Rule, but we don't seem to be having Senate Rules for everything anyway. Just for practical purposes, we are sent here, we are elected by our constituents to make good policy decisions and I don't believe I am having all the information before me to be able to do that, especially with Conference Committee Reports that sometimes other bills are added in that perhaps we would not necessarily like. We do have opportunity to look at the Conference Committee Report, that is true, but I don't find that we have enough information and I am asking--even though it is not covered by a Senate Rule--that we can get a bill report we are getting for some other bills, to find out what happened--the history of that bill as it came through the Legislature. That, at least, would be appreciated. Thank you.”

      President Owen: “Senator Kohl, the President can only respond to your point of order and the procedures are being followed properly. The rest must be taken up within the Senate members, themselves.”

      Further debate ensued.

      The President declared the question before the Senate to be the adoption of the Conference Committee Report on Engrossed Substitute Senate Bill No. 6165.

      The motion by Senator Rossi carried and the Report of the Conference Committee on Engrossed Substitute Senate Bill No. 6165 was adopted.

      The President declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6165, as recommended by the Conference Committee.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6165, as recommended by the Conference Committee, and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, Bauer, Benton, Brown, Deccio, Fairley, Finkbeiner, Franklin, Fraser, Goings, Hale, Hargrove, Haugen, Heavey, Hochstatter, Horn, Jacobsen, Johnson, Kline, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Patterson, Prentice, Prince, Rasmussen, Roach, Rossi, Schow, Sellar, Sheldon, B., Sheldon, T., Snyder, Spanel, Stevens, Strannigan, Swecker, Thibaudeau, West, Winsley, Wojahn, Wood and Zarelli - 49.     ENGROSSED SUBSTITUTE SENATE BILL NO. 6165, as recommended by the Conference Committee, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.

POINT OF INQUIRY

      Senator Kohl: “Senator Johnson, you had mentioned earlier that there has been ample opportunity for our caucuses to have discussions on Conference Committee Reports. I would like to request, in the form of a question, that we be able to have our caucus meet in order to go over Conference Committee Reports. The one that we just went over and voted on came in last night and we have not had an opportunity to caucus on this Conference Committee Report--or many others--but there could be time allowed for actual consideration. I would appreciate it.”

      Senator Johnson: “My reference, Senator Kohl, was not necessarily a caucus gathering, but the caucus staff and that sort of thing. I think, also, information is available through my office on prior bill reports and so on, but we will be caucusing in a bit.”

MESSAGE FROM THE HOUSE

March 11, 1998

MR. PRESIDENT:

      The House has adopted the Report of the Conference Committee on SUBSTITUTE SENATE BILL NO. 6181 and has passed the bill as recommended by the Conference Committee, and the same are herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk

REPORT OF CONFERENCE COMMITTEE

SSB 6181                                                                                                                                                                                     March 10, 1998

Includes “'NEW ITEM”ES

Regulating probate, trusts, and estates

MR. PRESIDENT:

MR. SPEAKER:

      We of your Conference Committee, to whom was referred SUBSTITUTE SENATE BILL NO. 6181, regulating probate, trusts, and estates, have had the same under consideration and we recommend that all previous amendments not be adopted and that the following striking amendment be adopted:

       Strike everything after the enacting clause and insert the following:

"PART I--TESTAMENTARY DISPOSITION OF NONPROBATE ASSETS

       NEW SECTION. Sec. 101. SHORT TITLE. This chapter may be known and cited as the testamentary disposition of nonprobate assets act.

       NEW SECTION. Sec. 102. PURPOSES. The purposes of this chapter are to:

       (1) Enhance and facilitate the power of testators to control the disposition of assets that pass outside their wills;

       (2) Provide simple procedures for resolution of disputes regarding entitlement to such assets; and

       (3) Protect any financial institution or other third party having possession of or control over such an asset and transferring it to a beneficiary duly designated by the testator, unless that third party has been provided notice of a testamentary disposition as required in this chapter.

       NEW SECTION. Sec. 103. CONSTRUCTION--JURISDICTION. (1) When construing sections and provisions of this chapter, the sections and provisions must:

       (a) Be liberally construed and applied to promote the purposes of this chapter;

       (b) Be considered part of a general act that is intended as unified coverage of the subject matter, and no part of this chapter may be deemed impliedly repealed by subsequent legislation if the construction can be reasonably avoided;

       (c) Not be held invalid because of the invalidity of other sections or provisions of this chapter as long as the section or provision in question can be given effect without regard to the invalid section or provision, and to this end the sections or provisions of this chapter are severable;

       (d) Not be construed by reference to section or subsection headings as used in this chapter, since these do not constitute any part of the law;

       (e) Not be deemed to alter the community or separate property nature of any asset passing outside a testator's will or any individual's community or separate rights to the asset, and a testator's community or separate property rights to the asset are not affected by whether it passes outside the will or, under this chapter, by disposition under the will; and

       (f) Not be construed as authorizing or extending the authority of any financial institution or other third party to sell or otherwise create assets that would pass outside a testator's will upon such terms as would contravene any other applicable federal or state law.

       (2) The sections and provisions of this chapter apply to an owner who dies while a resident of this state on or after the effective date of this section and to a nonprobate asset the disposition of which on the death of the owner would otherwise be governed by the law of this state.

       NEW SECTION. Sec. 104. DEFINITIONS. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

       (1)(a) "Actual knowledge" means:

       (i) For a financial institution, whether acting as personal representative or otherwise, or other third party in possession or control of a nonprobate asset, receipt of written notice that: (A) Complies with section 109 of this act; (B) pertains to the testamentary disposition or ownership of a nonprobate asset in its possession or control; and (C) is received by the financial institution or third party after the death of the owner in a time sufficient to afford the financial institution or third party a reasonable opportunity to act upon the knowledge; and

       (ii) For a personal representative that is not a financial institution, personal knowledge or possession of documents relating to the testamentary disposition or ownership of a nonprobate asset of the owner sufficient to afford the personal representative reasonable opportunity to act upon the knowledge, including reasonable opportunity for the personal representative to provide the written notice under section 109 of this act.

       (b) For the purposes of (a) of this subsection, notice of more than thirty days is presumed to be notice that is sufficient to afford the party a reasonable opportunity to act upon the knowledge, but notice of less than five business days is presumed not to be a sufficient notice for these purposes. These presumptions may be rebutted only by clear and convincing evidence to the contrary.

       (2) "Beneficiary" means the person designated to receive a nonprobate asset upon the death of the owner by means other than the owner's will.

       (3) "Broker" means a person defined as a broker or dealer under the federal securities laws.

       (4) "Date of will" means, as to any nonprobate asset, the date of signature of the will or codicil that refers to the asset and disposes of it.

       (5) "Designate" means a written means by which the owner selects a beneficiary, including but not limited to instruments under contractual arrangements and registration of accounts, and "designation" means the selection.

       (6) "Financial institution" means: A bank, trust company, mutual savings bank, savings and loan association, credit union, broker, or issuer of stock or its transfer agent.

       (7)(a) "Nonprobate asset" means a nonprobate asset within the meaning of RCW 11.02.005, but excluding the following:

       (i) A right or interest in real property passing under a joint tenancy with right of survivorship;

       (ii) A deed or conveyance for which possession has been postponed until the death of the owner;

       (iii) A right or interest passing under a community property agreement; and

       (iv) An individual retirement account or bond.

       (b) For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, see RCW 11.07.010(5).

       (8) "Owner" means a person who, during life, has beneficial ownership of the nonprobate asset.

       (9) "Request" means a request by the beneficiary for transfer of a nonprobate asset after the death of the owner, if it complies with all conditions of the arrangement, including reasonable special requirements concerning necessary signatures and regulations of the financial institution or other third party, or by the personal representative of the owner's estate or the testamentary beneficiary, if it complies with the owner's will and any additional conditions of the financial institution or third party for such transfer.

       (10) "Testamentary beneficiary" means a person named under the owner's will to receive a nonprobate asset under this chapter, including but not limited to the trustee of a testamentary trust.

       (11) "Third party" means a person, including a financial institution, having possession of or control over a nonprobate asset at the death of the owner, including the trustee of a revocable living trust and surviving joint tenant or tenants.

       NEW SECTION. Sec. 105. DISPOSITION OF NONPROBATE ASSETS UNDER WILL. (1) Subject to community property rights, upon the death of an owner the owner's interest in any nonprobate asset specifically referred to in the owner's will belongs to the testamentary beneficiary named to receive the nonprobate asset, notwithstanding the rights of any beneficiary designated before the date of the will.

       (2) A general residuary gift in an owner's will, or a will making general disposition of all of the owner's property, does not entitle the devisees or legatees to receive nonprobate assets of the owner.

       (3) A disposition in a will of the owner's interest in "all nonprobate assets" or of all of a category of nonprobate asset under section 104(7) of this act, such as "all of my payable on death bank accounts" or similar language, is deemed to be a disposition of all the nonprobate assets the beneficiaries of which are designated before the date of the will.

       (4) If the owner designates a beneficiary for a nonprobate asset after the date of the will, the will does not govern the disposition of that nonprobate asset. If the owner revokes the later beneficiary designation, the prior will does not govern the disposition of the nonprobate asset. A beneficiary designation with respect to an asset that renews without the signature of the owner is deemed to have been made on the date on which the account was first opened.

       NEW SECTION. Sec. 106. WAIVER OF RIGHT TO DISPOSE OF A NONPROBATE ASSET UNDER WILL. An owner may waive the right to dispose of a specific nonprobate asset by will under this chapter, with or without consideration, by a written instrument signed by the owner and delivered to the financial institution or other third party, including but not limited to signature cards or deposit agreements. The waiver is revocable by written instrument delivered to the financial institution or other third party unless the owner has stated that the waiver is to be irrevocable.

       NEW SECTION. Sec. 107. CONTROVERSIES BETWEEN BENEFICIARIES AND TESTAMENTARY BENEFICIARIES. This chapter is intended to establish ownership rights to nonprobate assets upon the death of the owner, as between beneficiaries and testamentary beneficiaries. This chapter is relevant only as to controversies between these persons, and has no bearing on the right of a person to transfer a nonprobate asset under its terms in the absence of a testamentary provision under this chapter.

       NEW SECTION. Sec. 108. RIGHT TO RELY ON FORM OF NONPROBATE ASSET--DISCHARGE OF FINANCIAL INSTITUTION OR OTHER THIRD PARTY. In transferring nonprobate assets, a financial institution or other third party may rely conclusively and entirely upon the form of the nonprobate asset and the terms of the nonprobate asset arrangement in effect on the date of death of the owner, unless the financial institution or other third party has actual knowledge of the existence of a claim by a testamentary beneficiary. A financial institution or other third party is not required to inquire as to either the source or ownership of any nonprobate asset in its possession or under its control, or as to the proposed application of an asset so transferred. A transfer of a nonprobate asset in accordance with this section constitutes a complete release and discharge of the financial institution or other third party from all claims relating to the nonprobate asset, regardless of whether or not the transfer is consistent with the actual ownership of the nonprobate asset.

       NEW SECTION. Sec. 109. NOTICE--FORM--LIMITATION ON LIABILITY FOR FAILURE TO PROVIDE NOTICE. (1) Written notice under this chapter must be served personally or by certified mail, return receipt requested and postage prepaid, on the financial institution or other third party having the nonprobate asset in its possession or control, on the beneficiary, on the testamentary beneficiary, and on the personal representative, and proof of the mailing or service must be made by affidavit and filed under the cause number assigned to the owner's estate. Notice to a financial institution must include notice delivered as follows:

       (a) If the nonprobate asset was maintained at a specific office of the financial institution, notice must be delivered to the office at which the nonprobate asset was maintained, which notice must be directed to the manager of the office;

       (b) If the nonprobate asset was held in a trust administered by a financial institution, notice must be delivered to the office at which the trust was administered, which notice must be directed to a named officer responsible for the administration of the trust; and

       (c) In all cases, notice must be delivered to any other location and in any other manner specifically designated in a written agreement signed by the owner and the financial institution, including but not limited to a signature card or deposit agreement.

       (2) Written notice to a financial institution or other third party of the testamentary disposition of a nonprobate asset under this chapter must be in a form substantially similar to the following:

NOTICE OF TESTAMENTARY

DISPOSITION OF NONPROBATE ASSET

The undersigned personal representative, petitioner for appointment as personal representative, attorney for the personal representative or petitioner, or testamentary beneficiary under the will of the decedent named above (as that term is defined in section 104 of this act) hereby notifies you that the decedent named above died on (DATE MUST BE SUPPLIED) and left a will dated (DATE OF WILL MUST BE SUPPLIED) disposing of the following nonprobate asset or assets in your possession or control:

(EACH SUCH ASSET MUST BE DESCRIBED WITH REASONABLE SPECIFICITY. FOR ACCOUNTS AT FINANCIAL INSTITUTIONS, THE WRITTEN NOTICE MUST SPECIFY THE OFFICE AT WHICH THE ACCOUNT WAS MAINTAINED, THE NAME OR NAMES IN WHICH THE ACCOUNT WAS HELD, AND THE FULL ACCOUNT NUMBER. FOR ASSETS HELD IN TRUST, THE WRITTEN NOTICE MUST SPECIFY THE NAME OR NAMES OF THE GRANTOR, THE NAME OF THE TRUST, IF ANY, AND THE DATE OF THE TRUST INSTRUMENT.)

Under chapter 11.-- RCW (sections 101 through 116 of this act), you may not transfer, deliver, or otherwise dispose of the asset or assets listed above in accordance with the beneficiary designation, account registration, or other arrangement made with you by the decedent. You may transfer, deliver, or otherwise dispose of the asset or assets listed above only upon receipt of the written direction of the personal representative or of the testamentary beneficiary, if the personal representative consents.

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

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

                                                                                                                                     (CAPACITY OF SIGNER)

       (3) The personal representative of the estate of the owner, a petitioner for appointment as personal representative, or the testamentary beneficiary may provide written notice under this section. The personal representative has no duty to provide written notice under this section and has no liability for failing or refusing to give the notice.

       (4) Written notice under this section may be provided at any time after the death of the owner and before discharge of the personal representative on closing of the estate, and may be provided before admission to probate of the will.

       NEW SECTION. Sec. 110. VESTING OF RIGHTS AND POWERS UNDER CHAPTER. The right to provide notice under section 109 of this act and the entitlement of the testamentary beneficiary to the nonprobate asset vest immediately upon death of the owner. The power of the personal representative to direct the financial institution or other third party having the nonprobate asset in its possession or under its control to transfer or otherwise dispose of the asset arises upon the later of appointment of the personal representative or admission of the will to probate.

       NEW SECTION. Sec. 111. OWNERSHIP RIGHTS AS BETWEEN INDIVIDUALS PRESERVED--TESTAMENTARY BENEFICIARY MAY RECOVER NONPROBATE ASSET FROM BENEFICIARY--LIMITATION ON ACTION TO RECOVER. (1) The protection accorded to financial institutions and other third parties under section 108 of this act has no bearing on the actual rights of ownership to nonprobate assets as between beneficiaries and testamentary beneficiaries, and their heirs, successors, personal representatives, and assigns.

       (2) A testamentary beneficiary entitled to a nonprobate asset otherwise transferred to a beneficiary not so entitled, and a personal representative of the owner's estate on behalf of the testamentary beneficiary, may petition the superior court having jurisdiction over the owner's estate for an order declaring that the testamentary beneficiary is so entitled, the hearing of the petition to be held in accordance with chapter 11.96 RCW.

       (3) A testamentary beneficiary claiming a nonprobate asset who has not filed such a petition within the earlier of: (a) Six months from the date of admission of the will to probate; and (b) one year from the date of the owner's death, shall be forever barred from making such a claim or commencing such an action.

       NEW SECTION. Sec. 112. NONPROBATE ASSETS NOT PROPERTY OF ESTATE. (1) Notwithstanding any provision of this chapter, a nonprobate asset disposed of under the owner's will may not be treated as a part of the owner's probate estate for any other purpose under this title, unless:

       (a) The nonprobate asset is subject to liabilities and claims, estate taxes, and expenses of administration under RCW 11.18.200; or

       (b) Any section of this title directs otherwise, by specifically referring to this section.

       (2) Provision of notice under this chapter has no effect on the administration of other assets of the estate of the owner. The personal representative has no duty to administer upon a nonprobate asset because of providing the notice, unless specifically required by this chapter or under RCW 11.18.200.

       (3) RCW 11.12.110, regarding death of a devisee or legatee before the testator, does not apply to disposition of a nonprobate asset under a will.

       NEW SECTION. Sec. 113. TRANSFER OF NONPROBATE ASSET TO TESTAMENTARY BENEFICIARY. (1) A financial institution's or third party's obligation to transfer a nonprobate asset to a testamentary beneficiary arises only after it has actual knowledge of the claim of the testamentary beneficiary, and after receiving written direction from the personal representative of the owner's estate, or if the personal representative consents in writing, from the testamentary beneficiary, to make the transfer. The financial institution may also require that its customary procedures be followed in effectuating a transfer of the nonprobate asset.

       (2) Subject to subsection (1) of this section, financial institutions and other third parties may transfer a nonprobate asset that has not already been distributed to the testamentary beneficiary entitled to the nonprobate asset under the owner's will, subject to liabilities and claims, estate taxes, and expenses of administration under RCW 11.18.200.

       NEW SECTION. Sec. 114. AUTHORITY TO WITHHOLD TRANSFER. (1) This chapter does not require any financial institution or other third party to transfer a nonprobate asset to a beneficiary, testamentary beneficiary, or other person claiming an interest in the nonprobate asset if the financial institution or third party has actual knowledge of the existence of a dispute between beneficiaries, testamentary beneficiaries, or other persons concerning rights or ownership to the nonprobate asset under this chapter, or if the financial institution or third party is otherwise uncertain as to who is entitled to receive the nonprobate asset under this chapter. In any such case, the financial institution or third party may, without liability, notify in writing all beneficiaries, testamentary beneficiaries, or other persons claiming an interest in the nonprobate asset of either its uncertainty as to who is entitled to transfer of the nonprobate asset or the existence of any dispute, and it may also, without liability, refuse to transfer a nonprobate asset to a beneficiary or a testamentary beneficiary until such time as either:

       (a) All the beneficiaries, testamentary beneficiaries, and other interested persons have consented in writing to the transfer; or

       (b) The transfer is authorized or directed by a court of proper jurisdiction.

       (2) The expense of obtaining the written consent or court authorization or direction may, by order of the court, be paid by the personal representative as an expense of administration.

       NEW SECTION. Sec. 115. ADVERSE CLAIM BOND. Notwithstanding section 114 of this act, a financial institution or other third party having actual knowledge of the existence of a dispute between beneficiaries, a testamentary beneficiary, or other persons concerning rights to a nonprobate asset under this chapter may condition transfer of the nonprobate asset on execution, in form and with security acceptable to the financial institution or other third party, of a bond in an amount that is double the fair market value of the nonprobate asset on the date of the owner's death or the amount of any adverse claim, whichever is the lesser, indemnifying the financial institution or other third party from any and all liability, loss, damage, costs, and expenses, for and on account of transfer of the nonprobate asset.     NEW SECTION. Sec. 116. APPLICATION OF CHAPTER. This chapter applies to any will of an owner who dies while a resident of this state on or after the effective date of this section, regardless of whether the will was executed or republished before or after the effective date of this section and regardless of whether the beneficiary of the nonprobate asset was designated before or after the effective date of this section.

       Sec. 117. RCW 11.02.005 and 1997 c 252 s 1 are each amended to read as follows: