WHEREAS, The students of Tahoma Senior High School in Maple Valley, Washington, enrolled in the program known as "We The People, The Citizen and Constitution," have exhibited that they have learned very well the lessons of our forefathers who wrote the Constitution of the United States. The students will be representing all of Washington State in national championship competitions; and

      WHEREAS, This knowledge will enhance the lives of the students and direct their paths as they walk through life, proud in the knowledge that Americans have long stood for justice and liberty for all Americans; and

      WHEREAS, Being armed with this knowledge is to the benefit of all citizens of this great country and state and will prepare the students to participate in the democracy men and women have fought so gallantly to preserve; and

      WHEREAS, These energetic, knowledgeable young people will one day lead this state and country, and there may very well be in their midst a legislator, governor, senator, member of Congress, or perhaps a future President; and

      WHEREAS, Their dedicated and talented teacher, Lindsey Hatch of Tahoma Senior High School, can take pride in knowing that the students enrolled in this program have the knowledge to outperform university students in every topic; and

      WHEREAS, Studies have shown that eighty percent of seniors in high school participating in this program have registered to vote compared to an average of thirty-seven percent among other high school seniors, thereby proving that this program has increased the interest in politics and in participation in government; and

      WHEREAS, For the twelfth consecutive year, Tahoma Senior High School has won the first place title at the state championship by answering questions using only their knowledge, memory, and reasoning, enabling its members to represent the whole State of Washington when they compete at the national competition in Washington, D.C. in April; and

      WHEREAS, In 2000, Tahoma Senior High School was fourth in the nation, in 2002 they won the Western Regional Award, and in 2003 the We The People Team won the top Unit Two in the Nation Award;

      NOW, THEREFORE, BE IT RESOLVED, That the Senate honor the participants in this program from Tahoma High School's first place team: Corey Allen, Griffin Bell, Kelsey Childress, Nikki Clardy, Adam Day, Josh Hansen, Jamie Huson, Sean Johnson, Danielle Judd, Jordan Kerr, Sara Kleinknecht, Jami Lukins, Jordan Michelson, Alexa Moss, Kaylene Nead, Leah Pappajohn, Keith Peck, Maria Tamaccio, Rachel Tipper, Andy Thompson, Lyle Valenzuela, Emily Wilson, and Nichole Woods; and

      BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Secretary of the Senate to the members of the We The People Team, their teacher Lindsey Hatch, and the principal of Tahoma Senior High School Terry Duty, to further show the respect of this body for a job well done and wish them success in their endeavors.

      Senators Pflug and Johnson spoke in favor of adoption of the resolution.

      The President Pro Tempore declared the question before the Senate to be the adoption of Senate Resolution No. 8721.

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

MOTION

On motion of Senator Jacobsen, Senator Doumit was excused.

MOTION

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

MOTION

On motion of Senator Mulliken, Senator Oke was excused.

SECOND READING

      HOUSE BILL NO. 1305, by Representatives Haigh, McDonald, Eickmeyer, Holmquist, Wallace, P. Sullivan, Roach, Morrell and Sells

      Authorizing background checks before an authorized emergency vehicle permit is issued.

      The measure was read the second time.

MOTION

      On motion of Senator Haugen, the rules were suspended, House Bill No. 1305 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Haugen spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 1305.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1305 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

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

      Absent: Senator McAuliffe - 1

      Excused: Senators Brown and Oke - 2

      HOUSE BILL NO. 1305, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2056, by House Committee on Commerce & Labor (originally sponsored by Representatives Conway and Wood)

      Regulating recreational vehicle shows.

      The measure was read the second time.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, Engrossed Substitute House Bill No. 2056 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 2056.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2056 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 3; Excused, 1.

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

      Absent: Senators Hargrove, McAuliffe and Thibaudeau - 3

      Excused: Senator Brown - 1

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2056, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

PERSONAL PRIVILEGE

Senator Benton: “Thank you Madam President. I wanted to thank the Majority Leader for the candy she left on my desk this morning. I followed the instructions, it says, 'Please remove the tablet from the packet before use.' So I did. I took it out of the container and bit off a piece. I thought, I originally thought it was white chocolate and then I realized it was hard, so then occurred to me that it was a mint of some sort and so even though I removed the cover as instructed the taste was not what I expected when I took a bite of this lovely present that was left on my desk and so I just wanted to warn my colleagues before they bite into their present to be careful. Don’t expect a minty taste because it’s not like that at all. It’s very, very different. It’s kind a like you're going to take a drink of something, you think it’s one thing, but it’s something else. It’s a very surprising thing that occurs to you when your expecting something and you get something totally different. I may have even chipped one of my teeth, I think, as I bit into this lovely present. So I wanted to thank her but at the same time I wanted to warn my colleagues to be very careful when they're taking advantage of this lovely present that the Majority Leader left for us this morning.”

PERSONAL PRIVILEGE

Senator McCaslin: “Now I know why we’re in the minority!”

PERSONAL PRIVILEGE

Senator Brown: “I am so sorry, Senator. Perhaps I should of put more explicit instructions. What you have here is not actually edible. Please send me the doctor bill but not the attorneys fees please. If I could avoid that, that would be great. What you have here is in light of the bill that we passed last night, related to phasing out the phosphorous in our dish washing detergent. This is a sample of the product. So this goes in your dishwasher and for those of you who passed that on to your spouse, you just pass it on to her and she’ll use it in the dishwasher. I just want to let you know that it does get your dishes and glasses spotless and clean. Thank you for helping me out with the bill and hope that you also find the product satisfactory.”

POINT OF INQUIRY

Senator Honeyford: “Will Senator Benton yield to a question? Senator, the question is are your teeth whiter and cleaner?"

Senator Benton: “Well, the answer is yes I have noticed a remarkable change in the quality of the shineness of the teeth. I’ll be careful not to smile. We wouldn’t want to give anybody a sunburn.”

PERSONAL PRIVILEGE

Senator Hargrove: “I thought this was a piece of candy I ate it. What is that going to do for me?”

PERSONAL PRIVILEGE

Senator Roach: “Madam President, members of the Senate. This brings up maybe a new discovery for us because if we were to eat these. Now, I don’t know if there is phosphorous in people effluent but if there is, this might be something that we could all take. All of humanity and certainly do good for the ecology. What do you think of that? You’ve come on something.”

PERSONAL PRIVILEGE

Senator Delvin: “Thank you Madam President. When did we go to the ninth order?”

PERSONAL PRIVILEGE

Senator Oke: “Thank you Madam President. I’ve got the arm band to prove it, but I wanted you to all know. It’s hard for me to tell everybody. Yesterday I went into the VA hospital in Seattle. My red blood count was down to twenty-three. Not a good point and I got there with Judy about one. They started the first IV into me and they gave me three. At five-thirty, I started this and at two-thirty a. m. they finished with me and my lovely wife was there with me. Having people going in and going out. The good news is this morning when they took the blood sample and looked at it I’m thirty-one so. Anything over thirty is 'Praise the Lord.' Thank you for your prayers.”

MOTION

At 11:58 a.m., on motion of Senator Eide, the Senate was declared to be at ease subject to the call of the President.

AFTERNOON SESSION

The Senate was called to order at 1:42 p.m. by President Pro Tempore.

SECOND READING

      SECOND SUBSTITUTE HOUSE BILL NO. 2805, by House Committee on Appropriations (originally sponsored by Representatives O'Brien, Ericks, Morrell, Miloscia and Green)

      Expanding provisions relating to missing persons.

      The measure was read the second time.

MOTION

      On motion of Senator Brandland, the rules were suspended, Second Substitute House Bill No. 2805 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Brandland spoke in favor of passage of the bill.

MOTION

On motion of Senator Weinstein, Senator McAuliffe was excused.

MOTION

On motion of Senator Schoesler, Senators Swecker, Finkbeiner, Zarelli, Stevens, Hewitt and Kline were excused.

      The President Pro Tempore declared the question before the Senate to be the final passage of Second Substitute House Bill No. 2805.

ROLL CALL

      The Secretary called the roll on the final passage of Second Substitute House Bill No. 2805 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

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

      Absent: Senator Deccio - 1

      Excused: Senators Brown, Finkbeiner, Kline and Zarelli - 4

      SECOND SUBSTITUTE HOUSE BILL NO. 2805, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Regala, Senator Doumit was excused.

SECOND READING

      HOUSE BILL NO. 1471, by Representatives Lovick, McDonald and Takko

      Changing provisions relating to authentication of documents.

      The measure was read the second time.

MOTION

      On motion of Senator Brandland, the rules were suspended, House Bill No. 1471 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Delvin spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 1471.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1471 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

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

      Excused: Senators Brown, Finkbeiner and Kline - 3

      HOUSE BILL NO. 1471, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 3178, by House Committee on Commerce & Labor (originally sponsored by Representatives Murray and Woods)

      Concerning collective bargaining by state ferry employees.

      The measure was read the second time.

MOTION

      Senator Haugen moved that the following committee striking amendment by the Committee on Transportation be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 47.64.011 and 1983 c 15 s 2 are each amended to read as follows:

      As used in this chapter, unless the context otherwise requires, the definitions in this section shall apply.

      (1) (("Arbitration" means the procedure whereby the parties involved in an impasse submit their differences to a third party for a final and binding decision or as provided in this chapter.

      (2) "Arbitrator" means either a single arbitrator or a panel of three arbitrators as provided in RCW 47.64.240.

      (3))) "Collective bargaining representative" means the persons designated by the ((secretary of transportation)) governor and employee organizations to be the exclusive representatives during collective bargaining negotiations.

      (((4))) (2) "Commission" means the marine employees' commission created in RCW 47.64.280.

      (3) "Department of transportation" means the department as defined in RCW 47.01.021.

(4) "Employer" means the state of Washington.

      (5) "Ferry employee" means any employee of the marine transportation division of the department of transportation who is a member of a collective bargaining unit represented by a ferry employee organization and does not include an exempt employee pursuant to RCW 41.06.079.

      (6) "Ferry employee organization" means any labor organization recognized to represent a collective bargaining unit of ferry employees.

      (7) (("Ferry system management" means those management personnel of the marine transportation division of the department of transportation who have been vested with the day-to-day management responsibilities of the Washington state ferry system by the transportation commission and who are not members of a collective bargaining unit represented by a ferry employee organization.

      (8))) "Lockout" means the refusal of ((ferry system management)) the employer to furnish work to ferry employees in an effort to get ferry employee organizations to make concessions during collective bargaining, grievance, or other labor relation negotiations. Curtailment of employment of ferry employees due to lack of work resulting from a strike or work stoppage((, as defined in subsection (11) of this section,)) shall not be considered a lockout.

      (((9) "Marine employees' commission" means the commission created in RCW 47.64.280.

      (10))) (8) "Office of financial management" means the office as created in RCW 43.41.050.

      (((11))) (9) "Strike or work stoppage" means a ferry employee's refusal, in concerted action with others, to report to duty, or his or her willful absence from his or her position, or his or her stoppage or slowdown of work, or his or her abstinence in whole or in part from the full, faithful, and proper performance of the duties of employment, for the purpose of inducing, influencing, or coercing a change in conditions, compensation, rights, privileges, or obligations of his, her, or any other ferry employee's employment. A refusal, in good faith, to work under conditions which pose an endangerment to the health and safety of ferry employees or the public, as determined by the master of the vessel, shall not be considered a strike for the purposes of this chapter.

      (((12) "Transportation commission" means the commission as defined in RCW 47.01.021.))

      NEW SECTION. Sec. 2. A new section is added to chapter 47.64 RCW to read as follows:

      (1) For the purpose of negotiating collective bargaining agreements under this chapter, the employer shall be represented by the governor or governor's designee.

      (2) Two or more ferry employee organizations may, upon agreement of the parties, negotiate, as a coalition with the employer representative as designated in subsection (1) of this section, a multiunion collective bargaining agreement on behalf of all the employees in ferry employee organization bargaining units that the exclusive bargaining representatives represent. The coalition shall bargain for a multiunion collective bargaining agreement covering all of the employees represented by the coalition. The governor's designee and the exclusive bargaining representative or representatives are authorized to enter into supplemental bargaining of bargaining unit-specific issues for inclusion in or as an addendum to the multiunion collective bargaining agreement, subject to the parties' agreement regarding the issues and procedures for supplemental bargaining. Nothing in this section impairs the right of each ferry employee organization to negotiate a collective bargaining agreement exclusive to the bargaining unit it represents.

      Sec. 3. RCW 47.64.120 and 1997 c 436 s 1 are each amended to read as follows:

      (1) ((Ferry system management)) The employer and ferry system employee organizations, through their collective bargaining representatives, shall meet at reasonable times, to negotiate in good faith with respect to wages, hours, working conditions, insurance, and health care benefits as limited by RCW 47.64.270, and other matters mutually agreed upon. Employer funded retirement benefits shall be provided under the public employees retirement system under chapter 41.40 RCW and shall not be included in the scope of collective bargaining.

      (2) Upon ratification of bargaining agreements, ferry employees are entitled to an amount equivalent to the interest earned on retroactive compensation increases. For purposes of this section, the interest earned on retroactive compensation increases is the same monthly rate of interest that was earned on the amount of the compensation increases while held in the state treasury. The interest will be computed for each employee until the date the retroactive compensation is paid, and must be allocated in accordance with appropriation authority. The interest earned on retroactive compensation is not considered part of the ongoing compensation obligation of the state and is not compensation earnable for the purposes of chapter 41.40 RCW. Negotiations shall also include grievance procedures for resolving any questions arising under the agreement, which shall be embodied in a written agreement and signed by the parties.

(3) Except as otherwise provided in this chapter, if a conflict exists between an executive order, administrative rule, or agency policy relating to wages, hours, and terms and conditions of employment and a collective bargaining agreement negotiated under this chapter, the collective bargaining agreement shall prevail. A provision of a collective bargaining agreement that conflicts with the terms of a statute is invalid and unenforceable.

      Sec. 4. RCW 47.64.130 and 1983 c 15 s 4 are each amended to read as follows:

      (1) It is an unfair labor practice for ((ferry system management)) the employer or its representatives:

      (a) To interfere with, restrain, or coerce employees in the exercise of the rights guaranteed by this chapter;

      (b) To dominate or interfere with the formation or administration of any employee organization or contribute financial or other support to it((: PROVIDED, That)). However, subject to rules made by the commission pursuant to RCW 47.64.280, an employer shall not be prohibited from permitting employees to confer with it or its representatives or agents during working hours without loss of time or pay;

      (c) To encourage or discourage membership in any employee organization by discrimination in regard to hiring, tenure of employment, or any term or condition of employment, but nothing contained in this subsection prevents an employer from requiring, as a condition of continued employment, payment of periodic dues and fees uniformly required to an exclusive bargaining representative pursuant to RCW 47.64.160((: PROVIDED, That)). However, nothing prohibits ((ferry system management)) the employer from agreeing to obtain employees by referral from a lawful hiring hall operated by or participated in by a labor organization;

      (d) To discharge or otherwise discriminate against an employee because he has filed charges or given testimony under this chapter;

      (e) To refuse to bargain collectively with the representatives of its employees.

      (2) It is an unfair labor practice for an employee organization:

       (a) To restrain or coerce (i) employees in the exercise of the rights guaranteed by this chapter((: PROVIDED, That this paragraph)). However, this subsection does not impair the right of an employee organization to prescribe its own rules with respect to the acquisition or retention of membership therein, or (ii) an employer in the selection of his representatives for the purposes of collective bargaining or the adjustment of grievances;

      (b) To cause or attempt to cause an employer to discriminate against an employee in violation of subsection (1)(c) of this section;

      (c) To refuse to bargain collectively with an employer((, when it is the representative of its employees subject to RCW 47.64.170)).

      (3) The expression of any view, argument, or opinion, or the dissemination thereof to the public, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this chapter, if the expression contains no threat of reprisal or force or promise of benefit.

      Sec. 5. RCW 47.64.140 and 1989 c 373 s 25 are each amended to read as follows:

      (1) It is unlawful for any ferry system employee or any employee organization, directly or indirectly, to induce, instigate, encourage, authorize, ratify, or participate in a strike or work stoppage against the ferry system.

      (2) It is unlawful for ((ferry system management)) the employer to authorize, consent to, or condone a strike or work stoppage; or to conduct a lockout; or to pay or agree to pay any ferry system employee for any day in which the employee participates in a strike or work stoppage; or to pay or agree to pay any increase in compensation or benefits to any ferry system employee in response to or as a result of any strike or work stoppage or any act that violates subsection (1) of this section. It is unlawful for any official, director, or representative of the ferry system to authorize, ratify, or participate in any violation of this subsection. Nothing in this subsection prevents new or renewed bargaining and agreement within the scope of negotiations as defined by this chapter, at any time. No collective bargaining agreement provision regarding suspension or modification of any court-ordered penalty provided in this section is binding on the courts.

      (3) In the event of any violation or imminently threatened violation of subsection (1) or (2) of this section, any citizen domiciled within the jurisdictional boundaries of the state may petition the superior court for Thurston county for an injunction restraining the violation or imminently threatened violation. Rules of civil procedure regarding injunctions apply to the action. However, the court shall grant a temporary injunction if it appears to the court that a violation has occurred or is imminently threatened; the plaintiff need not show that the violation or threatened violation would greatly or irreparably injure him or her; and no bond may be required of the plaintiff unless the court determines that a bond is necessary in the public interest. Failure to comply with any temporary or permanent injunction granted under this section is a contempt of court as provided in chapter 7.21 RCW. The court may impose a penalty of up to ten thousand dollars for an employee organization or the ferry system, for each day during which the failure to comply continues. The sanctions for a ferry employee found to be in contempt shall be as provided in chapter 7.21 RCW. An individual or an employee organization which makes an active good faith effort to comply fully with the injunction shall not be deemed to be in contempt.

      (4) The right of ferry system employees to engage in strike or work slowdown or stoppage is not granted and nothing in this chapter may be construed to grant such a right.

      (5) Each of the remedies and penalties provided by this section is separate and several, and is in addition to any other legal or equitable remedy or penalty.

      (6) In addition to the remedies and penalties provided by this section the successful litigant is entitled to recover reasonable attorney fees and costs incurred in the litigation.

      (7) Notwithstanding the provisions of chapter 88.04 RCW and chapter 88.08 RCW, the department of transportation shall ((promulgate)) adopt rules ((and regulations)) allowing vessels, as defined in RCW ((88.04.300)) 88.04.015, as well as other watercraft, to engage in emergency passenger service on the waters of Puget Sound in the event ferry employees engage in a work slowdown or stoppage. Such emergency rules ((and regulations)) shall allow emergency passenger service on the waters of Puget Sound within seventy-two hours following a work slowdown or stoppage. Such rules ((and regulations)) that are ((promulgated)) adopted shall give due consideration to the needs and the health, safety, and welfare of the people of the state of Washington.

      Sec. 6. RCW 47.64.170 and 1983 c 15 s 8 are each amended to read as follows:

      (1) Any ferry employee organization certified as the bargaining representative shall be the exclusive representative of all ferry employees in the bargaining unit and shall represent all such employees fairly.

      (2) A ferry employee organization or organizations and the ((secretary of transportation)) governor may each designate any individual as its representative to engage in collective bargaining negotiations.

      (3) Negotiating sessions, including strategy meetings of ((ferry system management)) the employer or employee organizations, mediation, and the deliberative process of arbitrators are exempt from the provisions of chapter 42.30 RCW. Hearings conducted by arbitrators may be open to the public by mutual consent of the parties. ((Any meeting of the transportation commission, during which a collective bargaining agreement is subject to ratification, shall be open to the public.))

      (4) Terms of any collective bargaining agreement may be enforced by civil action in Thurston county superior court upon the initiative of either party.

      (5) Ferry system employees or any employee organization shall not negotiate or attempt to negotiate directly with ((a member of the transportation commission if the commission has)) anyone other than the person who has been appointed or authorized a bargaining representative for the purpose of bargaining with the ferry employees or their representative((, unless the member of the commission is the designated bargaining representative of the ferry system)).

      (6)(a) The negotiation of a proposed collective bargaining agreement by representatives of ((ferry system management)) the employer and a ferry employee organization shall commence ((in each odd-numbered year immediately following adoption by the legislature and approval by the governor of the biennial budget)) on or about September 1st of every odd-numbered year. However, negotiations for the 2007-2009 biennial agreements may commence at any time after the effective date of this section. Negotiations for agreements pertaining to the 2009-2011 biennium and all subsequent negotiations must conclude on or about April 1st of the year following the year in which the negotiations commence. If negotiations are not concluded by April 1st, the parties shall be deemed to be at impasse and shall proceed to mediation under RCW 47.64.230 and sections 12 through 14 of this act.

      (b) For negotiations covering the 2009-2011 biennium and subsequent biennia, the time periods specified in this section, and in RCW 47.64.210 and sections 12 through 14 of this act, must ensure conclusion of all agreements on or before September 1st of the even-numbered year next preceding the biennial budget period during which the agreement should take effect. These time periods may only be altered by mutual agreement of the parties in writing. Any such agreement and any impasse procedures agreed to by the parties under RCW 47.64.200 must include an agreement regarding the new time periods that will allow final resolution by negotiations or arbitration by September 1st of each even-numbered year. Negotiations for the 2007-2009 biennium must be concluded on or before October 1, 2006.

      (7) Until a new collective bargaining agreement is ((negotiated, or until an award is made by the arbitrator)) in effect, the terms and conditions of the previous collective bargaining agreement shall remain in force. ((The wage and benefit provisions of any collective bargaining agreement, or arbitrator's award in lieu thereof, that is concluded after July 1st of an odd-numbered year shall be retroactive to July 1st.)) It is the intent of this section that the collective bargaining agreement or arbitrator's award shall commence on July 1st of each odd-numbered year and shall terminate on June 30th of the next odd-numbered year to coincide with the ensuing biennial budget year, as defined by RCW 43.88.020(7), to the extent practical. It is further the intent of this section that all collective bargaining agreements be concluded by September 1st of the even-numbered year before the commencement of the biennial budget year during which the agreements are to be in effect.

      (8) ((Any ferry union contract terminating before July 1, 1983, shall, with the agreement of the parties, remain in effect until a contract can be concluded under RCW 47.64.006, 47.64.011, and 47.64.120 through 47.64.280. The contract may be retroactive to the expiration date of the prior contract, and the cost to the department of three months retroactive compensation and benefits for this 1983 contract negotiation only shall not be included in calculating the limitation imposed by RCW 47.64.180. If the parties cannot agree to contract extension, any increase agreed to for the three-month period shall be included in calculating the limit imposed by RCW 47.64.180.

      (9) Any ferry union contract which would terminate after July 1, 1983, may, by agreement of the parties, be terminated as of July 1, 1983, and a new contract concluded pursuant to RCW 47.64.006, 47.64.011, and 47.64.120 through 47.64.280. Any contract terminating after July 1, 1983, is subject to this chapter only upon its expiration and shall not be renewed for a period beyond July 1, 1985.)) (a) The governor shall submit a request either for funds necessary to implement the collective bargaining agreements including, but not limited to, the compensation and fringe benefit provisions or for legislation necessary to implement the agreement, or both. Requests for funds necessary to implement the collective bargaining agreements shall not be submitted to the legislature by the governor unless such requests:

      (i) Have been submitted to the director of the office of financial management by October 1st before the legislative session at which the requests are to be considered; and

      (ii) Have been certified by the director of the office of financial management as being feasible financially for the state.

      (b) The governor shall submit a request either for funds necessary to implement the arbitration awards or for legislation necessary to implement the arbitration awards, or both. Requests for funds necessary to implement the arbitration awards shall not be submitted to the legislature by the governor unless such requests have been submitted to the director of the office of financial management by October 1st before the legislative session at which the requests are to be considered.

      (c) The legislature shall approve or reject the submission of the request for funds necessary to implement the collective bargaining agreements or arbitration awards as a whole for each agreement or award. The legislature shall not consider a request for funds to implement a collective bargaining agreement or arbitration award unless the request is transmitted to the legislature as part of the governor's budget document submitted under RCW 43.88.030 and 43.88.060. If the legislature rejects or fails to act on the submission, either party may reopen all or part of the agreement and award or the exclusive bargaining representative may seek to implement the procedures provided for in RCW 47.64.210 and section 12 of this act.

      (9) If, after the compensation and fringe benefit provisions of an agreement are approved by the legislature, a significant revenue shortfall occurs resulting in reduced appropriations, as declared by proclamation of the governor or by resolution of the legislature, both parties shall immediately enter into collective bargaining for a mutually agreed upon modification of the agreement.

      Sec. 7. RCW 47.64.200 and 1983 c 15 s 11 are each amended to read as follows:

      As the first step in the performance of their duty to bargain, ((ferry system management)) the employer and the employee organization shall endeavor to agree upon impasse procedures. ((The agreement shall provide for implementation of these impasse procedures not later than July 1st in each odd-numbered year following enactment of the biennial budget.)) Unless otherwise agreed to by the employee organization and the employer in their impasse procedures, the arbitrator or panel is limited to selecting the most reasonable offer, in its judgment, of the final offers on each impasse item submitted by the parties. The employee organization and the employer may mutually agree to the impasse procedure under which the arbitrator or panel may issue a decision it deems just and appropriate with respect to each impasse item. If the parties fail to agree upon impasse procedures under this section, the impasse procedures provided in RCW 47.64.210 ((through)) and 47.64.230 and sections 12 through 14 of this act apply. It is unlawful for either party to refuse to participate in the impasse procedures provided in RCW 47.64.210 ((through)) and 47.64.230 and sections 12 through 14 of this act.

      Sec. 8. RCW 47.64.210 and 1983 c 15 s 12 are each amended to read as follows:

      In the absence of an impasse agreement between the parties or the failure of either party to utilize its procedures by ((August)) April 1st in ((each odd-numbered year, the marine employees' commission shall, upon the request of either party,)) the even-numbered year preceding the biennium, either party may request the commission to appoint an impartial and disinterested person to act as mediator ((pursuant to RCW 47.64.280)). It is the function of the mediator to bring the parties together to effectuate a settlement of the dispute, but the mediator shall not compel the parties to agree.

      Sec. 9. RCW 47.64.220 and 1999 c 256 s 1 are each amended to read as follows:

      (1) Prior to collective bargaining and for purposes of collective bargaining and arbitration, the ((marine employees')) commission shall conduct a salary survey. The results of the survey shall be published in a report which shall be a public document comparing wages, hours, employee benefits, and conditions of employment of involved ferry employees with those of public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved. Such survey report shall be for the purpose of disclosing generally prevailing levels of compensation, benefits, and conditions of employment. It shall be used to guide generally but not to define or limit collective bargaining between the parties. ((The commission shall make such other findings of fact as the parties may request during bargaining or impasse.))

      (2) ((Except as provided in subsection (3) of this section,)) Salary and employee benefit information collected from private employers that identifies a specific employer with the salary and employee benefit rates which that employer pays to its employees is not subject to public disclosure under chapter 42.17 RCW.

      (((3) A person or entity, having reason to believe that the salary survey results are inaccurate, may submit a petition to the state auditor requesting an audit of the data upon which the salary survey results are based. The state auditor shall review and analyze all data collected for the salary survey, including proprietary information, but is prohibited from disclosing the salary survey data to any other person or entity, except by court order.))

      Sec. 10. RCW 47.64.220 and 2005 c 274 s 308 are each amended to read as follows:

      (1) Prior to collective bargaining and for purposes of collective bargaining and arbitration, the ((marine employees')) commission shall conduct a salary survey. The results of the survey shall be published in a report which shall be a public document comparing wages, hours, employee benefits, and conditions of employment of involved ferry employees with those of public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved. Such survey report shall be for the purpose of disclosing generally prevailing levels of compensation, benefits, and conditions of employment. It shall be used to guide generally but not to define or limit collective bargaining between the parties. ((The commission shall make such other findings of fact as the parties may request during bargaining or impasse.))

      (2) ((Except as provided in subsection (3) of this section,)) Salary and employee benefit information collected from private employers that identifies a specific employer with the salary and employee benefit rates which that employer pays to its employees is not subject to public disclosure under chapter 42.56 RCW.

      (((3) A person or entity, having reason to believe that the salary survey results are inaccurate, may submit a petition to the state auditor requesting an audit of the data upon which the salary survey results are based. The state auditor shall review and analyze all data collected for the salary survey, including proprietary information, but is prohibited from disclosing the salary survey data to any other person or entity, except by court order.))

      Sec. 11. RCW 47.64.230 and 1983 c 15 s 14 are each amended to read as follows:

      By mutual agreement, the parties may waive mediation ((and fact-finding, as provided for in RCW 47.64.210 and 47.64.220,)) and proceed with binding arbitration as provided for in ((RCW 47.64.240)) the impasse procedures agreed to under RCW 47.64.200 or in sections 12 through 14 of this act, as applicable. The waiver shall be in writing and be signed by the representatives of the parties.

      NEW SECTION. Sec. 12. A new section is added to chapter 47.64 RCW to read as follows:

      (1) If an agreement has not been reached following a reasonable period of negotiations and, when applicable, mediation, but in either event by April 15th, upon the recommendation of the assigned mediator that the parties remain at impasse, all impasse items shall be submitted to arbitration under this section. The issues for arbitration shall be limited to the issues certified by the commission.

      (2) The parties may agree to submit the dispute to a single arbitrator, whose authority and duties shall be the same as those of an arbitration panel. If the parties cannot agree on the arbitrator within five working days, the selection shall be made under subsection (3) of this section. The full costs of arbitration under this section shall be shared equally by the parties to the dispute.

      (3) Within seven days following the issuance of the determination of the commission, each party shall name one person to serve as its arbitrator on the arbitration panel. The two members so appointed shall meet within seven days following the appointment of the later appointed member to attempt to choose a third member to act as the neutral chair of the arbitration panel. Upon the failure of the arbitrators to select a neutral chair within seven days, either party may apply to the federal mediation and conciliation service, or the American arbitration association to provide a list of five qualified arbitrators from which the neutral chair shall be chosen. Each party shall pay the fees and expenses of its arbitrator, and the fees and expenses of the neutral chair shall be shared equally between the parties.

      (4) In consultation with the parties, the arbitrator or arbitration panel shall promptly establish a date, time, and place for a hearing and shall provide reasonable notice thereof to the parties to the dispute. The parties shall exchange final positions in writing, with copies to the arbitrator or arbitration panel, with respect to every issue to be arbitrated, on a date mutually agreed upon, but in no event later than ten working days before the date set for hearing. A hearing, which shall be informal, shall be held, and each party shall have the opportunity to present evidence and make argument. No member of the arbitration panel may present the case for a party to the proceedings. The rules of evidence prevailing in judicial proceedings may be considered, but are not binding, and any oral testimony or documentary evidence or other data deemed relevant by the chair of the arbitration panel may be received in evidence. A recording of the proceedings shall be taken. The arbitration panel has the power to administer oaths, require the attendance of witnesses, and require the production of such books, papers, contracts, agreements, and documents as may be deemed by the panel to be material to a just determination of the issues in dispute. If any person refuses to obey a subpoena issued by the arbitration panel, or refuses to be sworn or to make an affirmation to testify, or any witness, party, or attorney for a party is guilty of any contempt while in attendance at any hearing held hereunder, the arbitration panel may invoke the jurisdiction of the superior court in the county where the labor dispute exists, and the court has jurisdiction to issue an appropriate order. Any failure to obey the order may be punished by the court as a contempt thereof.

      (5) The neutral chair shall consult with the other members of the arbitration panel, if a panel has been created. Within thirty days following the conclusion of the hearing, the neutral chair shall make written findings of fact and a written determination of the issues in dispute, based on the evidence presented. A copy thereof shall be served on each of the other members of the arbitration panel, and on each of the parties to the dispute. That determination is final and binding upon both parties, subject to review by the superior court upon the application of either party solely upon the question of whether the decision of the panel was arbitrary or capricious.

      NEW SECTION. Sec. 13. A new section is added to chapter 47.64 RCW to read as follows:

      An interest arbitration proceeding under section 12 of this act exercises a state function and is, for the purposes of this chapter, functioning as a state agency. Chapter 34.05 RCW does not apply to an interest arbitration proceeding under this chapter.

      NEW SECTION. Sec. 14. A new section is added to chapter 47.64 RCW to read as follows:

      (1) The mediator, arbitrator, or arbitration panel may consider only matters that are subject to bargaining under this chapter.

       (2) The decision of an arbitrator or arbitration panel is not binding on the legislature and, if the legislature does not approve the funds necessary to implement provisions pertaining to compensation and fringe benefit provisions of an arbitrated collective bargaining agreement, is not binding on the state, the department of transportation, or the ferry employee organization.

      (3) In making its determination, the arbitrator or arbitration panel shall be mindful of the legislative purpose under RCW 47.64.005 and 47.64.006 and, as additional standards or guidelines to aid it in reaching a decision, shall take into consideration the following factors:

      (a) Past collective bargaining contracts between the parties including the bargaining that led up to the contracts;

      (b) The constitutional and statutory authority of the employer;

      (c) Stipulations of the parties;

      (d) The results of the salary survey as required in RCW 47.64.220;

      (e) Comparison of wages, hours, employee benefits, and conditions of employment of the involved ferry employees with those of public and private sector employees in states along the west coast of the United States, including Alaska, and in British Columbia doing directly comparable but not necessarily identical work, giving consideration to factors peculiar to the area and the classifications involved;

      (f) Changes in any of the foregoing circumstances during the pendency of the proceedings;

      (g) The limitations on ferry toll increases and operating subsidies as may be imposed by the legislature; and

      (h) Other factors that are normally or traditionally taken into consideration in the determination of matters that are subject to bargaining under this chapter.

      NEW SECTION. Sec. 15. A new section is added to chapter 47.64 RCW to read as follows:

      Collective bargaining under this act may not be for the purposes of making a collective bargaining agreement take effect before July 1, 2007. No party may engage in collective bargaining under this act to amend a collective bargaining agreement in effect on the effective date of this section. A collective bargaining agreement or amendment thereto entered into under this act shall not be effective before July 1, 2007, and may not have any retroactive effect.

      NEW SECTION. Sec. 16. (1) This act applies prospectively only and not retroactively. It applies to collective bargaining agreements, the negotiations of collective bargaining agreements, mediations, arbitrations, and other actions under this act that arise or are commenced on or after the effective date of this section.

      (2) This act does not apply to collective bargaining agreements, either in effect or for which the negotiations have begun, or mediations and arbitrations that arose or commenced under this chapter before the effective date of this section. Such collective bargaining agreements and related proceedings must be administered in accordance with the authorities, rules, and procedures that were established under this chapter as it existed before the effective date of this section. The repealers in section 19 of this act do not affect any existing right acquired, or liability or obligation incurred, under the statutes repealed or under any rule or order adopted under those statutes, nor do they affect any proceeding instituted under them.

      Sec. 17. RCW 47.64.270 and 1995 1st sp.s. c 6 s 6 are each amended to read as follows:

      Absent a collective bargaining agreement to the contrary, the department of transportation shall provide contributions to insurance and health care plans for ferry system employees and dependents, as determined by the state health care authority, under chapter 41.05 RCW; and the ((ferry system management)) employer and employee organizations may collectively bargain for other insurance and health care plans, and employer contributions may exceed that of other state agencies as provided in RCW 41.05.050((, subject to RCW 47.64.180)). To the extent that ferry employees by bargaining unit have absorbed the required offset of wage increases by the amount that the employer's contribution for employees' and dependents' insurance and health care plans exceeds that of other state general government employees in the 1985-87 fiscal biennium, employees shall not be required to absorb a further offset except to the extent the differential between employer contributions for those employees and all other state general government employees increases during any subsequent fiscal biennium. If such differential increases in the 1987-89 fiscal biennium or the 1985-87 offset by bargaining unit is insufficient to meet the required deduction, the amount available for compensation shall be reduced by bargaining unit by the amount of such increase or the 1985-87 shortage in the required offset. Compensation shall include all wages and employee benefits.

      Sec. 18. RCW 47.64.280 and 1984 c 287 s 95 are each amended to read as follows:

      (1) There is created the marine employees' commission. The governor shall appoint the commission with the consent of the senate. The commission shall consist of three members: One member to be appointed from labor, one member from industry, and one member from the public who has significant knowledge of maritime affairs. The public member shall be ((chairman)) chair of the commission. One of the original members shall be appointed for a term of three years, one for a term of four years, and one for a term of five years. Their successors shall be appointed for terms of five years each, except that any person chosen to fill a vacancy shall be appointed only for the unexpired term of the member whom he or she succeeds. Commission members are eligible for reappointment. Any member of the commission may be removed by the governor, upon notice and hearing, for neglect of duty or malfeasance in office, but for no other cause. Commission members are not eligible for state retirement under chapter 41.40 RCW by virtue of their service on the commission. Members of the commission shall be compensated in accordance with RCW 43.03.250 and shall receive reimbursement for official travel and other expenses at the same rate and on the same terms as provided for the transportation commission by RCW 47.01.061. The payments shall be made from the Puget Sound ferry operations account.

      (2) The ((marine employees')) commission shall: (a) Adjust all complaints, grievances, and disputes between labor and management arising out of the operation of the ferry system as provided in RCW 47.64.150; (b) provide for impasse mediation as required in RCW 47.64.210; (c) ((conduct fact-finding and)) provide salary surveys as required in RCW 47.64.220; and (d) ((provide for the selection of an impartial arbitrator as)) perform those duties required in ((RCW 47.64.240(5))) section 12 of this act.

       (3)(a) In adjudicating all complaints, grievances, and disputes, the party claiming labor disputes shall, in writing, notify the ((marine employees')) commission, which shall make careful inquiry into the cause thereof and issue an order advising the ferry employee, or the ferry employee organization representing him or her, and the department of transportation, as to the decision of the commission.

(b) The parties are entitled to offer evidence relating to disputes at all hearings conducted by the commission. The orders and awards of the commission are final and binding upon any ferry employee or employees or their representative affected thereby and upon the department.

(c) The commission shall adopt rules of procedure under chapter 34.05 RCW.

(d) The commission has the authority to subpoena any ferry employee or employees, or their representatives, and any member or representative of the department, and any witnesses. The commission may require attendance of witnesses and the production of all pertinent records at any hearings held by the commission. The subpoenas of the commission are enforceable by order of any superior court in the state of Washington for the county within which the proceeding may be pending. The commission may hire staff as necessary, appoint consultants, enter into contracts, and conduct studies as reasonably necessary to carry out this chapter.

      NEW SECTION. Sec. 19. The following acts or parts of acts are each repealed:

(1) RCW 47.64.180 (Agreements and awards limited by appropriation) and 1983 c 15 s 9;

(2) RCW 47.64.190 (Marine employees' commission review for compliance with fiscal limitations--Effective date of agreements and arbitration orders) and 1983 c 15 s 10; and

(3) RCW 47.64.240 (Binding arbitration) and 1989 c 327 s 3 & 1983 c 15 s 15.

      NEW SECTION. Sec. 20. Section 9 of this act expires July 1, 2006.

      NEW SECTION. Sec. 21. Except for section 10 of this act which takes effect July 1, 2006, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

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

      The President Pro Tempore declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Transportation to Substitute House Bill No. 3178.

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

MOTION

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

      On page 1, line 1 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 47.64.011, 47.64.120, 47.64.130, 47.64.140, 47.64.170, 47.64.200, 47.64.210, 47.64.220, 47.64.220, 47.64.230, 47.64.270, and 47.64.280; adding new sections to chapter 47.64 RCW; creating a new section; repealing RCW 47.64.180, 47.64.190, and 47.64.240; providing an effective date; providing an expiration date; and declaring an emergency."

MOTION

      On motion of Senator Haugen, the rules were suspended, Substitute House Bill No. 3178 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 3178 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 3178 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Excused: Senators Brown and Kline - 2

      SUBSTITUTE HOUSE BILL NO. 3178 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2804, by House Committee on Finance (originally sponsored by Representatives Conway, Holmquist, Serben, McIntire, Ahern, McDermott, Rodne, Buri, McDonald, McCune and Dunn)

      Modifying the property tax exemption for nonprofit schools and colleges.

      The measure was read the second time.

MOTION

      On motion of Senator Prentice, the rules were suspended, Substitute House Bill No. 2804 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators Prentice and Zarelli spoke in favor of passage of the bill.

MOTION

On motion of Senator Weinstein, Senator Doumit was excused.

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 2804.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2804 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Benson, Benton, Berkey, Brandland, Brown, Carrell, Deccio, Delvin, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Hargrove, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Regala, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 47

      Excused: Senators Doumit and Kline - 2

      SUBSTITUTE HOUSE BILL NO. 2804, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Brandland, Senator Carrell was excused.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2908, by House Committee on Local Government (originally sponsored by Representatives Bailey, Schindler and Strow)

      Modifying the boundary provision for Island county.

      The measure was read the second time.

MOTION

      On motion of Senator Kastama, the rules were suspended, Substitute House Bill No. 2908 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 2908.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2908 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

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

      Excused: Senators Carrell, Doumit and Kline - 3

      SUBSTITUTE HOUSE BILL NO. 2908, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2382, by Representatives Kretz, Haler and Holmquist

      Providing limited liability immunity for injuries at bovine handling facilities.

      The measure was read the second time.

MOTION

Senator Rasmussen moved that the following amendment by Senators Kline and Johnson be adopted.

      On page 2, line 14, after "means" strike "an" and insert "a cooperative not-for-profit"

      On page 2, line 14, after "facility" insert ", such as a corral,"

      On page 2, line 16, after "basis," strike "such as corrals" and insert "and does not include commercial slaughter facilities"

      Senators Johnson and Kline spoke in favor of adoption of the amendment.

The President Pro Tempore declared the question before the Senate to be the adoption of the amendment by Senators Kline and Johnson on page 2, line 14 to Substitute House Bill No. 2382.

The motion by Senator Rasmussen carried and the amendment was adopted by voice vote.

MOTION

      On motion of Senator Kline, the rules were suspended, Substitute House Bill No. 2382 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Kline spoke in favor of passage of the bill.

MOTION

On motion of Senator Schoesler, Senators Mulliken and Brandland were excused.

MOTION

On motion of Senator Weinstein, Senators Kastama, Hargrove and Regala were excused.

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 2382 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2382 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 41; Nays, 3; Absent, 1; Excused, 4.

      Voting yea: Senators Benson, Benton, Berkey, Brown, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, Oke, Parlette, Pflug, Prentice, Pridemore, Rasmussen, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau and Zarelli - 41

      Voting nay: Senators McCaslin, Poulsen and Weinstein - 3

      Absent: Senator Morton - 1

      Excused: Senators Brandland, Hargrove, Mulliken and Regala - 4

      SUBSTITUTE HOUSE BILL NO. 2382 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 2380, by Representatives Serben, Lantz, Rodne, Haler and Schual-Berke

      Changing the threshold age of minors under the uniform transfers to minors act.

      The measure was read the second time.

MOTION

      On motion of Senator Kline, the rules were suspended, House Bill No. 2380 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

MOTION

On motion of Senator Schoesler, Senator Morton was excused.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 2380.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2380 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

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

      Absent: Senator Doumit - 1

      Excused: Senators Brandland, Hargrove, Mulliken and Regala - 4

      HOUSE BILL NO. 2380, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE JOINT MEMORIAL NO. 4023, by Representatives Moeller, Buck, Kessler, DeBolt, Haigh, Talcott, Morrell, Newhouse, Williams, Serben and Eickmeyer

      Requesting Congress to enact the Kidney Care Quality Improvement Act of 2005.

      The measure was read the second time.

MOTION

      On motion of Senator Keiser, the rules were suspended, House Joint Memorial No. 4023 was advanced to third reading, the second reading considered the third and the resolution was placed on final passage.

      Senator Finkbeiner spoke in favor of passage of the memorial.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Joint Memorial No. 4023.

ROLL CALL

      The Secretary called the roll on the final passage of House Joint Memorial No. 4023 and the resolution passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 2; Excused, 4.

      Voting yea: Senators Benson, Benton, Berkey, Brown, Carrell, Deccio, Delvin, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McCaslin, Morton, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Roach, Rockefeller, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Thibaudeau, Weinstein and Zarelli - 43

      Absent: Senators Doumit and McAuliffe - 2

      Excused: Senators Brandland, Hargrove, Mulliken and Regala - 4

      HOUSE JOINT MEMORIAL NO. 4023, having received the constitutional majority, was declared passed.

MOTION

On motion of Senator Weinstein, Senators Thibaudeau, Doumit and McAuliffe were excused.

SECOND READING

      HOUSE BILL NO. 2972, by Representatives Clibborn, Hinkle, Curtis, B. Sullivan, Cody, Moeller, P. Sullivan, Kenney, Kilmer and Jarrett

      Determining community rates for health benefit plans.

      The measure was read the second time.

MOTION

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

      On page 10, after line 35 insert the following:

      "NEW SECTION. Sec. 7. No policy or contract may be solicited, or contribution collected under this act until a federal opinion is received by the insurance commissioner indicating whether the purchasing pools referenced in sections 2, 4, and 6 of this act are legal. The commissioner shall request such an opinion from the federal departments of labor, treasury, health and human services, or other appropriate federal agencies no later than August 1, 2006. Upon receipt, the commissioner shall forward the opinion to the legislature, and within 30 days, provide the legislature with a report assessing the legality and potential impact of these purchasing pools on the uninsured and insurance markets in Washington state."

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

      The President Pro Tempore declared the question before the Senate to be the adoption of the committee amendment by the Committee on Health & Long-Term Care to House Bill No. 2972.

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

MOTION

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

      On page 1, line 3, after "48.44 RCW;" strike the remainder of the title and insert "adding a new section to chapter 48.46 RCW; and creating a new section."

MOTION

      On motion of Senator Keiser, the rules were suspended, House Bill No. 2972 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 2972 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2972 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 0; Excused, 5.

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

      Excused: Senators Brandland, Doumit, Hargrove, Regala and Thibaudeau - 5

      HOUSE BILL NO. 2972 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED HOUSE BILL NO. 2579, by Representatives Upthegrove, Lantz, Dickerson, Appleton, Morrell, Hasegawa, Quall, Hunter, Haler, O'Brien, Murray, Hunt, Schual-Berke, Ormsby, Springer and Moeller

      Requiring classroom-based civics assessments.

      The measure was read the second time.

MOTION

      Senator McAuliffe moved that the following committee striking amendment by the Committee on Early Learning, K-12 & Higher Education be not adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that instruction in social studies, arts, health, and fitness is important to ensure a well-rounded and complete education. In particular, the civic mission of schools is strengthened and enhanced by comprehensive civics education and assessments. The legislature finds that effective and accountable democratic government depends upon an informed and engaged citizenry, and therefore, students should learn their rights and responsibilities as citizens, where those rights and responsibilities come from, and how to exercise them.

      Sec. 2. RCW 28A.230.095 and 2004 c 19 s 203 are each amended to read as follows:

(1) By the end of the 2008-09 school year, school districts shall have in place in elementary schools, middle schools, and high schools assessments or other strategies to assure that students have an opportunity to learn the essential academic learning requirements in social studies, the arts, and health and fitness. Social studies includes history, geography, civics, economics, and social studies skills. Beginning with the 2008-09 school year, school districts shall annually submit an implementation verification report to the office of the superintendent of public instruction.

(2) Beginning with the 2008-09 school year, school districts shall require students in the fourth or fifth grades, the seventh or eighth grades, and the eleventh or twelfth grades to each complete at least one classroom-based assessment in civics. The civics assessment may be selected from a list of classroom-based assessments approved by the office of the superintendent of public instruction. Beginning with the 2008-09 school year, school districts shall annually submit implementation verification reports to the office of the superintendent of public instruction documenting the use of the classroom-based assessments in civics.

      NEW SECTION. Sec. 3. (1) The legislature finds that the complexity of modern political life has created a demand for informed citizens who are willing not only to vote, but also to participate in the elections process.

      (2) The purpose of this section is to create a pilot project to help graduate students who are better voters, better citizens, and who are ready to take an informed and responsible place in society.

      (3) The office of the superintendent of public instruction shall work with selected county auditors' offices to develop an interactive high school civics curriculum to help students learn how to become informed citizens. The curriculum shall meet the requirements for the office of the superintendent of public instruction's classroom-based assessments. Staff from the office of the superintendent of public instruction shall work directly in the curriculum development.

      (4) Counties shall apply to, and be selected by, the office of the superintendent of public instruction to participate in the pilot project under this section. A maximum of fifteen counties may participate.

      (5) The curriculum shall include, but not be limited to:

      (a) Local government organization;

      (b) A discussion of ballot measures, initiatives, and referenda;

      (c) The role of the precinct in defining ballots, candidates, and political activities;

      (d) The roles and responsibilities of taxing jurisdictions in establishing ballot measures; and

      (e) The work of conducting elections.

      (6) The study may include in the curriculum civics essential academic learning requirements relating to examining representative government and citizen participation and analyzing the purposes and organization of government and laws.

      (7) A curriculum guide shall be developed that will help teachers and students maximize the learning of key issues in civics, and shall include strategies for helping students develop voters' guide information for ballot issues and candidates who appear on the ballot. This guide should incorporate ideas from other Washington state civics education programs, such as "We the People" and "Project Citizen." The guide should also present ideas for sharing the results of an election with the larger community and with local government officials in productive, meaningful ways.

      (8) As part of the pilot project, high school students in participating counties shall be selected who will have supervised access to the county's election reporting web site to assist the county in managing its internet election reporting system. School districts in participating counties shall select students to participate in this aspect of the pilot project. Counties shall provide technical assistance and elections expertise to participating schools, either through existing staff resources or through a county-chosen vendor.

      (9) In addition to the required components of the pilot project under this section, other activities may be included in the project, such as:

      (a) Conducting mock county elections at schools;

      (b) Using a school version of the county's reporting and election system to conduct school elections, including, where possible, having school election results posted on the county's election web site; and

      (c) Preparing an advisory issue on which the school or local community would vote, including issue preparation, conducting the election, and preparing a presentation to a local government official on the results of the advisory issue.

      (10) The pilot project shall operate for the 2006-07 and 2007-08 school years.

      (11) Funds for the pilot project shall be made available to the office of the superintendent of public instruction for a contract position in civics curriculum and for support costs for soliciting and implementing volunteer participation.

      (12) The office of the superintendent of public instruction shall adopt rules to implement this section, including rules specifying selection criteria for counties that wish to participate.

      (13) The superintendent of public instruction shall provide an interim report to appropriate committees of the legislature by December 1, 2008, and a final report by December 1, 2009, detailing the results of the project and budget recommendations for expansion, if appropriate.

       (14) This section expires January 31, 2010.

      NEW SECTION. Sec. 4. The office of the secretary of state shall enter into an interlocal agreement under chapter 39.34 RCW with the office of the superintendent of public instruction in which the office of the secretary of state shall pay the office of the superintendent of public instruction a minimum of four hundred forty thousand dollars, representing funds received by the office of the secretary of state under the federal help America vote act, for the purpose of curriculum development by the office of the superintendent of public instruction under this section. Initial payment of two hundred forty thousand dollars under this section shall be made no later than July 1, 2006. Funds under this section shall be used for an eighteen-month contract position at the office of the superintendent of public instruction, including seminars and follow-up costs.

      NEW SECTION. Sec. 5. The office of the secretary of state shall enter into an interlocal agreement under chapter 39.34 RCW with the auditor's office in which the office of the secretary of state shall pay the auditor's office a minimum of two hundred thousand dollars, representing funds received by the office of the secretary of state under the federal help America vote act, to be made available by the auditor's office directly to participating counties for internet requirements by December 31, 2008. Funding is for the purpose of supporting the prototype project. Counties may use funds for in-house development, vendor agreements, or to support existing services. Funding priority shall be given to counties in which technology and budgeting constraints would make participating in the pilot project a funding liability.

      NEW SECTION. Sec. 6. The sum of twenty-five thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2007, from the general fund to the superintendent of public instruction. The superintendent shall use the funds to provide competitive grants to school districts for curriculum alignment, development of innovative civics projects, and other activities that support the civics assessment under this act. As a condition of grant receipt, districts shall make the products developed under the grant widely available as examples of best practices."

      On page 1, line 1 of the title, after "assessments;" strike the remainder of the title and insert "amending RCW 28A.230.095; creating new sections; making an appropriation; and providing an expiration date."

      Senator McAuliffe spoke in favor of not adopting the committee striking amendment.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator McAuliffe to not adopt the committee striking amendment by the Committee on Early Learning, K-12 & Higher Education to Engrossed House Bill No. 2579.

      The motion by Senator McAuliffe carried and the committee striking amendment was not adopted by voice vote.

MOTION

      Senator McAuliffe moved that the following striking amendment by Senator McAuliffe be adopted:

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. The legislature finds that instruction in social studies, arts, health, and fitness is important to ensure a well-rounded and complete education. In particular, the civic mission of schools is strengthened and enhanced by comprehensive civics education and assessments. The legislature finds that effective and accountable democratic government depends upon an informed and engaged citizenry, and therefore, students should learn their rights and responsibilities as citizens, where those rights and responsibilities come from, and how to exercise them.

      Sec. 2. RCW 28A.230.095 and 2004 c 19 s 203 are each amended to read as follows:

(1) By the end of the 2008-09 school year, school districts shall have in place in elementary schools, middle schools, and high schools assessments or other strategies to assure that students have an opportunity to learn the essential academic learning requirements in social studies, the arts, and health and fitness. Social studies includes history, geography, civics, economics, and social studies skills. Beginning with the 2008-09 school year, school districts shall annually submit an implementation verification report to the office of the superintendent of public instruction.

(2) Beginning with the 2008-09 school year, school districts shall require students in the fourth or fifth grades, the seventh or eighth grades, and the eleventh or twelfth grades to each complete at least one classroom-based assessment in civics. The civics assessment may be selected from a list of classroom-based assessments approved by the office of the superintendent of public instruction. Beginning with the 2008-09 school year, school districts shall annually submit implementation verification reports to the office of the superintendent of public instruction documenting the use of the classroom-based assessments in civics.

      NEW SECTION. Sec. 3. (1) The legislature finds that the complexity of modern political life has created a demand for informed citizens who are willing not only to vote, but also to participate in the elections process.

      (2) The purpose of this section is to create a pilot project to help graduate students who are better voters, better citizens, and who are ready to take an informed and responsible place in society.

      (3) The office of the superintendent of public instruction shall work with selected county auditors' offices to develop an interactive high school civics curriculum to help students learn how to become informed citizens. The curriculum shall meet the requirements for the office of the superintendent of public instruction's classroom-based assessments. Staff from the office of the superintendent of public instruction shall work directly in the curriculum development.

      (4) Counties shall apply to, and be selected by, the office of the superintendent of public instruction to participate in the pilot project under this section. A maximum of fifteen counties may participate.

      (5) The curriculum shall include, but not be limited to:

      (a) Local government organization;

      (b) A discussion of ballot measures, initiatives, and referenda;

      (c) The role of the precinct in defining ballots, candidates, and political activities;

      (d) The roles and responsibilities of taxing jurisdictions in establishing ballot measures; and

      (e) The work of conducting elections.

      (6) The study may include in the curriculum civics essential academic learning requirements relating to examining representative government and citizen participation and analyzing the purposes and organization of government and laws.

      (7) A curriculum guide shall be developed that will help teachers and students maximize the learning of key issues in civics, and shall include strategies for helping students develop voters' guide information for ballot issues and candidates who appear on the ballot. This guide should incorporate ideas from other Washington state civics education programs, such as "We the People" and "Project Citizen." The guide should also present ideas for sharing the results of an election with the larger community and with local government officials in productive, meaningful ways.

      (8) In addition to the required components of the pilot project under this section, other activities may be included in the project, such as:

      (a) Conducting mock county elections at schools; and

      (b) Preparing an advisory issue on which the school would vote, including issue preparation, conducting the election, and preparing a presentation to a local government official on the results of the advisory issue.

      (9) The pilot project shall operate for the 2006-07 and 2007-08 school years.

      (10) Funds for the pilot project shall be made available to the office of the superintendent of public instruction for a contract position in civics curriculum and for support costs for soliciting and implementing volunteer participation.

      (11) The office of the superintendent of public instruction shall adopt rules to implement this section, including rules specifying selection criteria for counties that wish to participate.

      (12) The superintendent of public instruction shall provide an interim report to appropriate committees of the legislature by December 1, 2008, and a final report by December 1, 2009, detailing the results of the project and budget recommendations for expansion, if appropriate.

      (13) This section expires January 31, 2010.

      NEW SECTION. Sec. 4. The sum of twenty-five thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2007, from the general fund to the superintendent of public instruction. The superintendent shall use the funds to provide competitive grants to school districts for curriculum alignment, development of innovative civics projects, and other activities that support the civics assessment under this act. As a condition of grant receipt, districts shall make the products developed under the grant widely available as examples of best practices."

      Senator McAuliffe spoke in favor of adoption of the striking amendment.

      The President Pro Tempore declared the question before the Senate to be the adoption of the striking amendment by Senator McAuliffe to Engrossed House Bill No. 2579.

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

MOTION

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

      On page 1, line 1 of the title, after "assessments;" strike the remainder of the title and insert "amending RCW 28A.230.095; creating new sections; making an appropriation; and providing an expiration date."

MOTION

      On motion of Senator McAuliffe, the rules were suspended, Engrossed House Bill No. 2579 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senators McAuliffe, Delvin and Johnson spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of Engrossed House Bill No. 2579 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed House Bill No. 2579 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 44; Nays, 1; Absent, 0; Excused, 4.

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

      Voting nay: Senator Roach - 1

      Excused: Senators Brandland, Hargrove, Regala and Thibaudeau - 4

      ENGROSSED HOUSE BILL NO. 2579 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 3154, by Representatives Condotta, Wood and Newhouse

      Concerning the retail sale of beer.

      The measure was read the second time.

MOTION

      On motion of Senator Kohl-Welles, the rules were suspended, House Bill No. 3154 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 3154.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 3154 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 1; Absent, 0; Excused, 4.

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

      Voting nay: Senator Oke - 1

      Excused: Senators Brandland, Hargrove, Regala and Thibaudeau - 4

      HOUSE BILL NO. 3154, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 3079, by House Committee on Appropriations (originally sponsored by Representatives Conway, Cody, Sells, Dickerson, Morrell, Simpson, Schual-Berke, Hasegawa, Chase and Santos)

      Reporting on the employment status of recipients of medicaid and the basic health plan.

      The measure was read the second time.

MOTION

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

      Strike everything after the enacting clause and insert the following:

       "NEW SECTION. Sec. 1. A new section is added to chapter 70.47 RCW to read as follows:

 (1) The health care authority, in coordination with the department of social and health services, shall by November 15th of each year report to the legislature:

(a) The number of basic health plan enrollees who upon enrollment or recertification had reported being employed, or who had reported being the dependent of someone who was employed, and the total cost to the state for these enrollees. The information shall be reported by employer for employers having more than fifty employees as enrollees or with dependents as enrollees. This information shall be provided for the preceding January and June of that year.

 (b) The following aggregated information: (i) The number of employees who are enrollees or with dependents as enrollees by private and governmental employers; (ii) The number of employees who are enrollees or with dependents as enrollees by employer size for employers with 50 or fewer employees, 51 to 100 employees, 101 to 1000 employees, 1001 to 5,000 employees and more than 5,000 employees; and (iii) The number of employees who are enrollees or with dependents as enrollees by industry type.

 For each aggregated classification, the report will include the number of hours worked and total cost to the state for these enrollees. This information shall be for each quarter of the preceding year.

      NEW SECTION. Sec. 2. A new section is added to chapter 74.09 RCW to read as follows:

 (1) The department of social and health services, in coordination with the health care authority, shall by November 15th of each year report to the legislature:

(a) The number of medical assistance recipients who upon enrollment or recertification had reported being employed, or who had reported being the dependent of someone who was employed; the basis for their medical assistance eligibility, including but not limited to family medical coverage, transitional medical assistance, children's medical or aged or disabled coverage; member months; and the total cost to the state for these recipients, expressed as general fund-state, health services account and general fund-federal dollars. The information shall be reported by employer for employers having more than fifty employees as recipients or with dependents as recipients. This information shall be provided for the preceding January and June of that year.

 (b) The following aggregated information: (i) The number of employees who are recipients or with dependents as recipients by private and governmental employers; (ii) The number of employees who are recipients or with dependents as recipients by employer size for employers with 50 or fewer employees, 51 to 100 employees, 101 to 1000 employees, 1001 to 5,000 employees and more than 5,000 employees; and (iii) The number of employees who are recipients or with dependents as recipients by industry type.

 For each aggregated classification, the report will include the number of hours worked, the number of department of social and health services covered lives, and the total cost to the state for these recipients. This information shall be for each quarter of the preceding year.

      NEW SECTION. Sec. 3. If specific funding for the purpose of this act, referencing this act by bill or chapter number, is not provided by June 30, 2006, in the omnibus appropriations act, this act is null and void."

MOTION

Senator Keiser moved that the following amendment by Senators Keiser, Deccio and Brandland to the committee striking amendment be adopted.

      On page 1, line 8 after "(a)" strike all material through "enrollees" on line 11, and insert the following:

      "The number of basic health plan enrollees who: (i) upon enrollment or recertification had reported being employed, and the month and year they reported being hired; (ii) upon enrollment or recertification had reported being the dependent of someone who was employed, and the month and year they reported the employed person was hired; and (iii) the total cost to the state for these enrollees"

      On page 1, line 31 after "(a)" strike all material through "employed;" on page 2, line 1, and insert the following:

      "The number of medical assistance recipients who: (i) upon enrollment or recertification had reported being employed, and the month and year they reported being hired; or (ii) upon enrollment or recertification had reported being the dependent of someone who was employed, and the month and year they reported the employed person was hired. For recipients identified under (i) and (ii), the department shall report"

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

The President Pro Tempore declared the question before the Senate to be the adoption of the amendment by Senators Keiser, Deccio and Brandland on page 1, line 8 to the committee striking amendment to Engrossed Substitute House Bill No. 3079.

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

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

      The President Pro Tempore declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Health & Long-Term Care as amended to Engrossed Substitute House Bill No. 3079.

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

MOTION

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

      On page 1, line 1 of the title, after "services;" strike all material through "section" on line 3 and insert "adding a new section to chapter 70.47 RCW; adding a new section to chapter 74.09 RCW; and creating a new section."

MOTION

      On motion of Senator Keiser, the rules were suspended, Engrossed Substitute House Bill No. 3079 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Keiser spoke in favor of passage of the bill.

POINT OF INQUIRY

Senator Deccio: “Would Senator Keiser yield to a question? Senator Keiser, is it my understanding that all employers, including governmental entities, would be included in this survey to determine how many employees are under the Basic Health Plan that work for government. Is that correct?"

Senator Keiser: “Senator Deccio, my reading of the bill and of the striking amendment both indicate that any employer is subject to identification if they have thirty or fewer employees. So, there is a little bit of exemption based on size but not whether they're government or whether they're a private sector employer.”

      Senator Deccio spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 3079 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 3079, as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

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

      Excused: Senators Brandland, Hargrove, Regala and Thibaudeau - 4

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 3079 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2553, by House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Kirby and Morrell)

      Regulating service contracts and guarantee protection products. Revised for 1st Substitute: Regulating service contracts and protection product guarantees.

      The measure was read the second time.

MOTION

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

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 48.110.010 and 1999 c 112 s 1 are each amended to read as follows:

      The legislature finds that increasing numbers of businesses are selling service contracts for repair, replacement, and maintenance of motor vehicles, appliances, computers, electronic equipment, and other consumer products. There are risks that contract obligors will close or otherwise be unable to fulfill their contract obligations that could result in unnecessary and preventable losses to citizens of this state. The legislature declares that it is necessary to establish standards that will safeguard the public from possible losses arising from the conduct or cessation of the business of service contract obligors or the mismanagement of funds paid for service contracts. The purpose of this chapter is to create a legal framework within which service contracts may be sold in this state and to set forth requirements for conducting a service contract business.

      Sec. 2. RCW 48.110.015 and 2000 c 208 s 1 are each amended to read as follows:

      (1) The following are exempt from this title:

      (a) Warranties;

      (b) Maintenance agreements; and

      (c) Service contracts:

      (i) Paid for with separate and additional consideration;

      (ii) Issued at the point of sale, or within sixty days of the original purchase date of the property; and

      (iii) On tangible property when the tangible property for which the service contract is sold has a purchase price of fifty dollars or less, exclusive of sales tax.

       (2) This chapter does not apply to:

      (a) ((Vehicle service contracts which are governed under chapter 48.96 RCW;

      (b))) Vehicle mechanical breakdown insurance; and

      (((c))) (b) Service contracts on tangible personal property purchased by persons who are not consumers.

      Sec. 3. RCW 48.110.020 and 2000 c 208 s 2 are each amended to read as follows:

      The definitions in this section apply throughout this chapter.

      (1) "Administrator" means the person who is responsible for the administration of the service contracts ((or)), the service contracts plan, or the protection product guarantees.

      (2) "Commissioner" means the insurance commissioner of this state.

      (3) "Consumer" means an individual who buys any tangible personal property that is primarily for personal, family, or household use.

      (4) "Incidental costs" means expenses specified in the guarantee incurred by the protection product guarantee holder related to damages to other property caused by the failure of the protection product to perform as provided in the guarantee. "Incidental costs" may include, without limitation, insurance policy deductibles, rental vehicle charges, the difference between the actual value of the stolen vehicle at the time of theft and the cost of a replacement vehicle, sales taxes, registration fees, transaction fees, and mechanical inspection fees. Incidental costs may be paid under the provisions of the protection product guarantee in either a fixed amount specified in the protection product guarantee or sales agreement, or by the use of a formula itemizing specific incidental costs incurred by the protection product guarantee holder to be paid.

      (5) "Protection product" means any product offered or sold with a guarantee to repair or replace another product or pay incidental costs upon the failure of the product to perform pursuant to the terms of the protection product guarantee.

      (6) "Protection product guarantee" means a written agreement by a protection product guarantee provider to repair or replace another product or pay incidental costs upon the failure of the protection product to perform pursuant to the terms of the protection product guarantee.

       (7) "Protection product guarantee provider" means a person who is contractually obligated to the protection product guarantee holder under the terms of the protection product guarantee. Protection product guarantee provider does not include an authorized insurer providing a reimbursement insurance policy.

      (8) "Protection product guarantee holder" means a person who is the purchaser or permitted transferee of a protection product guarantee.

      (9) "Protection product seller" means the person who sells the protection product to the consumer.

      (10) "Maintenance agreement" means a contract of limited duration that provides for scheduled maintenance only.

      (((5))) (11) "Motor vehicle" means any vehicle subject to registration under chapter 46.16 RCW.

      (12) "Person" means an individual, partnership, corporation, incorporated or unincorporated association, joint stock company, reciprocal insurer, syndicate, or any similar entity or combination of entities acting in concert.

      (((6))) (13) "Premium" means the consideration paid to an insurer for a reimbursement insurance policy.

      (((7))) (14) "Provider fee" means the consideration paid by a consumer for a service contract.

      (((8))) (15) "Reimbursement insurance policy" means a policy of insurance that is issued to a service contract provider or a protection product guarantee provider to provide reimbursement to the service contract provider or the protection product guarantee provider or to pay on behalf of the service contract provider or the protection product guarantee provider all contractual obligations incurred by the service contract provider or the protection product guarantee provider under the terms of the insured service contracts or protection product guarantees issued or sold by the service contract provider or the protection product guarantee provider.

      (((9))) (16) "Service contract" means a contract or agreement for ((a separately stated)) consideration over and above the lease or purchase price of the property for a specific duration to perform the repair, replacement, or maintenance of property or the indemnification for repair, replacement, or maintenance for operational or structural failure due to a defect in materials or workmanship, or normal wear and tear. Service contracts may provide for the repair, replacement, or maintenance of property for damage resulting from power surges and accidental damage from handling, with or without additional provision for ((indemnity payments for incidental damages to other property directly caused by the failure of the property which is the subject of the service contract, provided the indemnity payment per incident does not exceed the purchase price of the property that is the subject of the service contract)) incidental payment of indemnity under limited circumstances, including towing, rental, emergency road services, or other expenses relating to the failure of the product or of a component part thereof.

      (((10))) (17) "Service contract holder" or "contract holder" means a person who is the purchaser or holder of a service contract.

      (((11))) (18) "Service contract provider" means a person who is contractually obligated to the service contract holder under the terms of the service contract.

      (((12))) (19) "Service contract seller" means the person who sells the service contract to the consumer.

      (((13))) (20) "Warranty" means a warranty made solely by the manufacturer, importer, or seller of property or services without consideration; that is not negotiated or separated from the sale of the product and is incidental to the sale of the product; and that guarantees indemnity for defective parts, mechanical or electrical breakdown, labor, or other remedial measures, such as repair or replacement of the property or repetition of services.

      Sec. 4. RCW 48.110.030 and 2005 c 223 s 33 are each amended to read as follows:

      (1) A person may not act as, or offer to act as, or hold himself or herself out to be a service contract provider in this state, nor may a service contract be sold to a consumer in this state, unless the service contract provider has a valid registration as a service contract provider issued by the commissioner.

      (2) Applicants to be a service contract provider must make an application to the commissioner upon a form to be furnished by the commissioner. The application must include or be accompanied by the following information and documents:

      (a) All basic organizational documents of the service contract provider, including any articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement, bylaws, and other applicable documents, and all amendments to those documents;

      (b) The identities of the service contract provider's executive officer or officers directly responsible for the service contract provider's service contract business, and, if more than fifty percent of the service contract provider's gross revenue is derived from the sale of service contracts, the identities of the service contract provider's directors and stockholders having beneficial ownership of ten percent or more of any class of securities;

      (c) Audited annual financial statements or other financial reports acceptable to the commissioner for the two most recent years which prove that the applicant is solvent and any information the commissioner may require in order to review the current financial condition of the applicant. If the service contract provider is relying on RCW 48.110.050(2) (((a) or)) (c) to assure the faithful performance of its obligations to service contract holders, then the audited financial statements of the service contract provider's parent company ((may be substituted for the audited financial statements of the service contract provider)) must also be filed;

      (d) An application fee of two hundred fifty dollars, which shall be deposited into the general fund; and

      (e) Any other pertinent information required by the commissioner.

      (3) The applicant shall appoint the commissioner as its attorney to receive service of legal process in any action, suit, or proceeding in any court. This appointment is irrevocable and shall bind the service contract provider or any successor in interest, shall remain in effect as long as there is in force in this state any contract or any obligation arising therefrom related to residents of this state, and shall be processed in accordance with RCW 48.05.210.

      (4) The commissioner may refuse to issue a registration if the commissioner determines that the service contract provider, or any individual responsible for the conduct of the affairs of the service contract provider under subsection (2)(b) of this section, is not competent, trustworthy, financially responsible, or has had a license as a service contract provider or similar license denied or revoked for cause by any state.

       (5) A registration issued under this section is valid, unless surrendered, suspended, or revoked by the commissioner, or not renewed for so long as the service contract provider continues in business in this state and remains in compliance with this chapter. A registration is subject to renewal annually on the first day of July upon application of the service contract provider and payment of a fee of two hundred dollars, which shall be deposited into the general fund. If not so renewed, the registration expires on the June 30th next preceding.

      (6) A service contract provider shall keep current the information required to be disclosed in its registration under this section by reporting all material changes or additions within thirty days after the end of the month in which the change or addition occurs.

      Sec. 5. RCW 48.110.040 and 2005 c 223 s 34 are each amended to read as follows:

      (1) Every registered service contract provider ((that is assuring its faithful performance of its obligations to its service contract holders by complying with RCW 48.110.050(2)(b))) must file an annual report for the preceding calendar year with the commissioner on or before March 1st of each year, or within any extension of time the commissioner for good cause may grant. The report must be in the form and contain those matters as the commissioner prescribes and shall be verified by at least two officers of the service contract provider.

      (2) At the time of filing the report, the service contract provider must pay a filing fee of twenty dollars which shall be deposited into the general fund.

      (3) As part of any investigation by the commissioner, the commissioner may require a service contract provider to file monthly financial reports whenever, in the commissioner's discretion, there is a need to more closely monitor the financial activities of the service contract provider. Monthly financial statements must be filed in the commissioner's office no later than the twenty-fifth day of the month following the month for which the financial report is being filed. These monthly financial reports are the internal financial statements of the service contract provider. The monthly financial reports that are filed with the commissioner constitute information that might be damaging to the service contract provider if made available to its competitors, and therefore shall be kept confidential by the commissioner. This information may not be made public or be subject to subpoena, other than by the commissioner and then only for the purpose of enforcement actions taken by the commissioner.

      Sec. 6. RCW 48.110.050 and 1999 c 112 s 6 are each amended to read as follows:

      (1) Service contracts shall not be issued, sold, or offered for sale in this state or sold to consumers in this state unless the service contract provider has:

      (a) Provided a receipt for, or other written evidence of, the purchase of the service contract to the contract holder; and

      (b) Provided a copy of the service contract to the service contract holder within a reasonable period of time from the date of purchase.

      (2) In order to either demonstrate its financial responsibility or assure the faithful performance of ((a)) the service contract provider's obligations to its service contract holders, every service contract provider shall ((be responsible for complying)) comply with the requirements of one of the following:

      (a) Insure all service contracts under a reimbursement insurance policy issued by an insurer holding a certificate of authority from the commissioner or a risk retention group, as defined in 15 U.S.C. Sec. 3901(a)(4), as long as that risk retention group is in full compliance with the federal liability risk retention act of 1986 (15 U.S.C. Sec. 3901 et seq.), is in good standing in its domiciliary jurisdiction, and is properly registered with the commissioner under chapter 48.92 RCW. The insurance required by this subsection must meet the following requirements:

      (i) The insurer or risk retention group must, at the time the policy is filed with the commissioner, and continuously thereafter, maintain surplus as to policyholders and paid-in capital of at least fifteen million dollars and annually file audited financial statements with the commissioner; and

      (ii) The commissioner may authorize an insurer or risk retention group that has surplus as to policyholders and paid-in capital of less than fifteen million dollars, but at least equal to ten million dollars, to issue the insurance required by this subsection if the insurer or risk retention group demonstrates to the satisfaction of the commissioner that the company maintains a ratio of direct written premiums, wherever written, to surplus as to policyholders and paid-in capital of not more than three to one;

      (b)(i) Maintain a funded reserve account for its obligations under its service contracts issued and outstanding in this state. The reserves shall not be less than forty percent of the gross consideration received, less claims paid, on the sale of the service contract for all in-force contracts. The reserve account shall be subject to examination and review by the commissioner; and

      (ii) Place in trust with the commissioner a financial security deposit, having a value of not less than five percent of the gross consideration received, less claims paid, on the sale of the service contract for all service contracts issued and in force, but not less than twenty-five thousand dollars, consisting of one of the following:

      (A) A surety bond issued by an insurer holding a certificate of authority from the commissioner;

      (B) Securities of the type eligible for deposit by authorized insurers in this state;

      (C) Cash;

      (D) An evergreen letter of credit issued by a qualified financial institution; or

      (E) Another form of security prescribed by rule by the commissioner; or

      (c)(i) Maintain, or its parent company maintain, a net worth or stockholder's equity of at least one hundred million dollars; and

      (ii) Upon request, provide the commissioner with a copy of the service contract provider's or the service contract provider's parent company's most recent form 10-K or form 20-F filed with the securities and exchange commission within the last calendar year, or if the company does not file with the securities and exchange commission, a copy of the service contract provider's or the service contract provider's parent company's audited financial statements, which shows a net worth of the service contract provider or its parent company of at least one hundred million dollars. If the service contract provider's parent company's form 10-K, form 20-F, or audited financial statements are filed with the commissioner to meet the service contract provider's financial stability requirement, then the parent company shall agree to guarantee the obligations of the service contract provider relating to service contracts sold by the service contract provider in this state. A copy of the guarantee shall be filed with the commissioner. The guarantee shall be irrevocable as long as there is in force in this state any contract or any obligation arising from service contracts guaranteed, unless the parent company has made arrangements approved by the commissioner to satisfy its obligations under the guarantee.

      (3) Service contracts shall require the service contract provider to permit the service contract holder to return the service contract within twenty days of the date the service contract was mailed to the service contract holder or within ten days of delivery if the service contract is delivered to the service contract holder at the time of sale, or within a longer time period permitted under the service contract. Upon return of the service contract to the service contract provider within the applicable period, if no claim has been made under the service contract prior to the return to the service contract provider, the service contract is void and the service contract provider shall refund to the service contract holder, or credit the account of the service contract holder with the full purchase price of the service contract. The right to void the service contract provided in this subsection is not transferable and shall apply only to the original service contract purchaser. A ten percent penalty per month shall be added to a refund of the purchase price that is not paid or credited within thirty days after return of the service contract to the service contract provider.

      (4) ((Except for service contract providers, persons marketing, selling, or offering to sell service contracts for providers are exempt from the registration requirements of RCW 48.110.030.

      (5) The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of service contracts by service contract providers and related service contract sellers, administrators, and other persons complying with this chapter are exempt from the other provisions of this title, except chapter 48.04 RCW and as otherwise provided in this chapter.)) This section does not apply to service contracts on motor vehicles or to protection product guarantees.

      Sec. 7. RCW 48.110.060 and 1999 c 112 s 7 are each amended to read as follows:

      (1) Reimbursement insurance policies insuring service contracts or protection product guarantees issued, sold, or offered for sale in this state or issued or sold to consumers in this state shall state that the insurer that issued the reimbursement insurance policy shall reimburse or pay on behalf of the service contract provider or the protection product guarantee provider all sums the service contract provider or the protection product guarantee provider is legally obligated to pay, including but not limited to the refund of the full purchase price of the service contract to the service contract holder or shall provide the service which the service contract provider or the protection product guarantee provider is legally obligated to perform according to the service contract provider's or protection product guarantee provider's contractual obligations under the service contracts or protection product guarantees issued or sold by the service contract provider or the protection product guarantee provider.

      (2) The reimbursement insurance policy shall fully insure the obligations of the service contract provider or protection product guarantee provider, rather than partially insure, or insure only in the event of service contract provider or protection product guarantee provider default.

      (3) The reimbursement insurance policy shall state that the service contract holder or protection product guarantee holder is entitled to apply directly to the reimbursement insurance company for payment or performance due.

      Sec. 8. RCW 48.110.070 and 1999 c 112 s 8 are each amended to read as follows:

      (1) Service contracts marketed, sold, offered for sale, issued, made, proposed to be made, or administered in this state or sold to residents of this state shall be written, printed, or typed in clear, understandable language that is easy to read, and disclose the requirements set forth in this section, as applicable.

      (2) Service contracts insured under a reimbursement insurance policy under RCW 48.110.050(2)(a) and 48.110.060 shall not be issued, sold, or offered for sale in this state or sold to residents of this state unless the service contract conspicuously contains a statement in substantially the following form: "Obligations of the service contract provider under this service contract are insured under a service contract reimbursement insurance policy." The service contract shall also conspicuously state the name and address of the issuer of the reimbursement (([insurance])) insurance policy and state that the service contract holder is entitled to apply directly to the reimbursement insurance company.

      (3) Service contracts not insured under a reimbursement insurance policy under RCW 48.110.050(2)(a) and 48.110.060 shall contain a statement in substantially the following form: "Obligations of the service contract provider under this contract are backed by the full faith and credit of the service contract provider."

      (4) Service contracts shall state the name and address of the service contract provider and shall identify any administrator if different from the service contract provider, the service contract seller, and the service contract holder to the extent that the name of the service contract holder has been furnished by the service contract holder. The identities of such parties are not required to be preprinted on the service contract and may be added to the service contract at the time of sale.

      (5) Service contracts shall state the purchase price of the service contract and the terms under which the service contract is sold. The purchase price is not required to be preprinted on the service contract and may be negotiated at the time of sale.

      (6) Service contracts shall state the procedure to obtain service or to file a claim, including but not limited to the procedures for obtaining prior approval for repair work, the toll-free telephone number if prior approval is necessary for service, and the procedure for obtaining emergency repairs performed outside of normal business hours or provide for twenty-four-hour telephone assistance.

      (7) Service contracts shall state the existence of any deductible amount, if applicable.

      (8) Service contracts shall specify the merchandise, parts, and services to be provided and any limitations, exceptions, or exclusions.

      (9) Service contracts shall state any restrictions governing the transferability of the service contract, if applicable.

      (10) Service contracts shall state the terms, restrictions, or conditions governing cancellation of the service contract prior to the termination or expiration date of the service contract by either the service contract provider or by the service contract holder, which rights can be no more restrictive than provided in RCW 48.110.050(3). The service contract provider of the service contract shall mail a written notice to the service contract holder at the last known address of the service contract holder contained in the records of the service contract provider at least twenty-one days prior to cancellation by the service contract provider. The notice shall state the effective date of the cancellation and the true and actual reason for the cancellation.

      (11) Service contracts shall set forth the obligations and duties of the service contract holder, including but not limited to the duty to protect against any further damage and any requirement to follow owner's manual instructions.

      (12) Service contracts shall state whether or not the service contract provides for or excludes consequential damages or preexisting conditions.

      (13) Service contracts shall state any exclusions of coverage.

      (14) Service contracts shall not contain a provision which requires that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than this state. Service contracts that authorize binding arbitration to resolve claims or disputes ((may)) must allow for arbitration proceedings to be held at a location in closest proximity to the service contract holder's permanent residence.

This section does not apply to service contracts on motor vehicles or to protection product guarantees.

      Sec. 9. RCW 48.110.080 and 1999 c 112 s 9 are each amended to read as follows:

      (1) A service contract provider or protection product guarantee provider shall not use in its name the words insurance, casualty, guaranty, surety, mutual, or any other words descriptive of the insurance, casualty, guaranty, or surety business; or a name deceptively similar to the name or description of any insurance or surety corporation, or to the name of any other service contract provider or protection product guarantee provider. This subsection does not apply to a company that was using any of the prohibited language in its name prior to January 1, 1999. However, a company using the prohibited language in its name shall conspicuously disclose in its service contracts or protection product guarantees the following statement: "This agreement is not an insurance contract."

      (2) Every service contract provider or protection product guarantee provider shall conduct its business in its own legal name, unless the commissioner has approved the use of another name.

      (3) A service contract provider or protection product guarantee provider or ((its)) their representatives shall not in ((its)) their service contracts or protection product guarantees or literature make, permit, or cause to be made any false or misleading statement, or deliberately omit any material statement that would be considered misleading if omitted.

      (4) A person, such as a bank, savings and loan association, lending institution, manufacturer, or seller shall not require the purchase of a service contract or protection product as a condition of a loan or a condition for the sale of any property.

      Sec. 10. RCW 48.110.090 and 1999 c 112 s 10 are each amended to read as follows:

      (1) The service contract provider or protection product guarantee provider shall keep accurate accounts, books, and records concerning transactions regulated under this chapter.

      (2) The service contract provider's or protection product guarantee provider's accounts, books, and records shall include the following:

      (a) Copies of each type of service contract or protection product guarantees offered, issued, or sold;

      (b) The name and address of each service contract holder or protection product guarantee holder, to the extent that the name and address have been furnished by the service contract holder or protection product guarantee holder;

      (c) A list of the locations where the service contracts or protection products are marketed, sold, or offered for sale; and

      (d) Written claim files that contain at least the dates, amounts, and descriptions of claims related to the service contracts or protection products.

      (3) Except as provided in subsection (5) of this section, the service contract provider or protection product guarantee provider shall retain all records required to be maintained by subsection (1) of this section for at least six years after the specified coverage has expired.

      (4) The records required under this chapter may be, but are not required to be, maintained on a computer disk or other recordkeeping technology. If the records are maintained in other than hard copy, the records shall be capable of duplication to legible hard copy.

      (5) A service contract provider or protection product guarantee provider discontinuing business in this state shall maintain its records until it furnishes the commissioner satisfactory proof that it has discharged all obligations to service contract holders or protection product guarantee holders in this state.

      Sec. 11. RCW 48.110.100 and 1999 c 112 s 11 are each amended to read as follows:

      As applicable, an insurer that issued a reimbursement insurance policy shall not terminate the policy until a notice of termination in accordance with RCW 48.18.290 has been given to the service contract provider or protection product guarantee provider and has been delivered to the commissioner. The termination of a reimbursement insurance policy does not reduce the issuer's responsibility for service contracts issued by service contract providers or protection product guarantees issued by protection product guarantee providers prior to the effective date of the termination.

      Sec. 12. RCW 48.110.110 and 1999 c 112 s 12 are each amended to read as follows:

      (1) Service contract providers or protection product guarantee providers are considered to be the agent of the insurer which issued the reimbursement insurance policy for purposes of obligating the insurer to service contract holders or protection product guarantee holders in accordance with the service contract or protection product guarantee holders and this chapter. Payment of the provider fee by the consumer to the service contract seller, service contract provider, or administrator or payment of consideration for the protection product to the protection product seller constitutes payment by the consumer to the service contract provider or protection product guarantee provider and to the insurer which issued the reimbursement insurance policy. In cases where a service contract provider or protection product guarantee provider is acting as an administrator and enlists other service contract providers or protection product guarantee providers, the service contract provider or protection product guarantee provider acting as the administrator shall notify the insurer of the existence and identities of the other service contract providers or protection product guarantee providers.

      (2) ((Chapter 112, Laws of 1999)) This chapter does not prevent or limit the right of an insurer which issued a reimbursement insurance policy to seek indemnification or subrogation against a service contract provider or protection product guarantee provider if the issuer pays or is obligated to pay the service contract holder or protection product guarantee holder sums that the service contract provider or protection product guarantee provider was obligated to pay under the provisions of the service contract or protection product guarantee.

      Sec. 13. RCW 48.110.120 and 1999 c 112 s 13 are each amended to read as follows:

      (1) The commissioner may conduct investigations of service contract providers or protection product guarantee providers, administrators, service contract sellers or protection product sellers, insurers, and other persons to enforce this chapter and protect service contract holders or protection product guarantee holders in this state. Upon request of the commissioner, the service contract provider or protection product guarantee provider shall make all accounts, books, and records concerning service contracts or protection products offered, issued, or sold by the service contract provider or protection product guarantee provider available to the commissioner which are necessary to enable the commissioner to determine compliance or noncompliance with this chapter.

      (2) The commissioner may take actions under RCW 48.02.080 or 48.04.050 which are necessary or appropriate to enforce this chapter and the commissioner's rules and orders, and to protect service contract holders or protection product guarantee holders in this state.

      Sec. 14. RCW 48.110.130 and 1999 c 112 s 14 are each amended to read as follows:

      (1) The commissioner may, subject to chapter 48.04 RCW, deny, suspend, or revoke the registration of a service contract provider or protection product guarantee provider if the commissioner finds that the service contract provider or protection product guarantee provider:

      (a) Has violated this chapter or the commissioner's rules and orders;

      (b) Has refused to be investigated or to produce its accounts, records, and files for investigation, or if any of its officers have refused to give information with respect to its affairs or refused to perform any other legal obligation as to an investigation, when required by the commissioner;

      (c) Has, without just cause, refused to pay proper claims or perform services arising under its contracts or has, without just cause, caused service contract holders or protection product guarantee holders to accept less than the amount due them or caused service contract holders or protection product guarantee holders to employ attorneys or bring suit against the service contract provider or protection product guarantee provider to secure full payment or settlement of claims;

      (d) Is affiliated with or under the same general management or interlocking directorate or ownership as another service contract provider or protection product guarantee provider which unlawfully transacts business in this state without having a registration;

      (e) At any time fails to meet any qualification for which issuance of the registration could have been refused had such failure then existed and been known to the commissioner;

      (f) Has been convicted of, or has entered a plea of guilty or nolo contendere to, a felony;

      (g) Is under suspension or revocation in another state with respect to its service contract business or protection product business;

      (h) Has made a material misstatement in its application for registration;

      (i) Has obtained or attempted to obtain a registration through misrepresentation or fraud;

      (j) Has, in the transaction of business under its registration, used fraudulent, coercive, or dishonest practices; ((or))

      (k) Has failed to pay any judgment rendered against it in this state regarding a service contract or protection product guarantee within sixty days after the judgment has become final; or

      (l) Has failed to respond promptly to any inquiry from the insurance commissioner relative to service contract or protection product business. A lack of response within fifteen business days from receipt of an inquiry is untimely. A response must be in writing, unless otherwise indicated in the inquiry.

      (2) The commissioner may, without advance notice or hearing thereon, immediately suspend the registration of a service contract provider or protection product guarantee provider if the commissioner finds that any of the following circumstances exist:

      (a) The provider is insolvent;

      (b) A proceeding for receivership, conservatorship, rehabilitation, or other delinquency proceeding regarding the service contract provider or protection product guarantee provider has been commenced in any state; or

      (c) The financial condition or business practices of the service contract provider or protection product guarantee provider otherwise pose an imminent threat to the public health, safety, or welfare of the residents of this state.

      (3) If the commissioner finds that grounds exist for the suspension or revocation of a registration issued under this chapter, the commissioner may, in lieu of suspension or revocation, impose a fine upon the service contract provider or protection product guarantee provider in an amount not more than two thousand dollars per violation.

      Sec. 15. RCW 48.110.140 and 1999 c 112 s 15 are each amended to read as follows:

      The legislature finds that the practices covered by this chapter are matters vitally affecting the public interest for the purpose of applying the consumer protection act, chapter 19.86 RCW. Violations of this chapter are not reasonable in relation to the development and preservation of business. A violation of this chapter is an unfair or deceptive act or practice in the conduct of trade or commerce and an unfair method of competition, as specifically contemplated by RCW 19.86.020, and is a violation of the consumer protection act, chapter 19.86 RCW. Any service contract holder or protection product guarantee holder injured as a result of a violation of a provision of this chapter shall be entitled to maintain an action pursuant to chapter 19.86 RCW against the service contract provider or protection product guarantee provider and the insurer issuing the applicable service contract or protection product guarantee reimbursement (([insurance])) insurance policy and shall be entitled to all of the rights and remedies afforded by that chapter.

      Sec. 16. RCW 48.110.900 and 1999 c 112 s 17 are each amended to read as follows:

      This chapter applies to all service contracts, other than on motor vehicles, sold or offered for sale ninety or more days after July 25, 1999. This chapter applies to all service contracts on motor vehicles and protection products sold or offered for sale after September 30, 2006.

      NEW SECTION. Sec. 17. A new section is added to chapter 48.110 RCW to read as follows:

      (1) This section applies to protection product guarantee providers.

      (2) A person shall not act as, or offer to act as, or hold himself or herself out to be a protection product guarantee provider in this state, nor may a protection product be sold to a consumer in this state, unless the protection product guarantee provider has:

      (a) A valid registration as a protection product guarantee provider issued by the commissioner; and

      (b) Either demonstrated its financial responsibility or assured the faithful performance of the protection product guarantee provider's obligations to its protection product guarantee holders by insuring all protection product guarantees under a reimbursement insurance policy issued by an insurer holding a certificate of authority from the commissioner or a risk retention group, as defined in 15 U.S.C. Sec. 3901(a)(4), as long as that risk retention group is in full compliance with the federal liability risk retention act of 1986 (15 U.S.C. Sec. 3901 et seq.), is in good standing in its domiciliary jurisdiction, and properly registered with the commissioner under chapter 48.92 RCW. The insurance required by this subsection must meet the following requirements:

      (i) The insurer or risk retention group must, at the time the policy is filed with the commissioner, and continuously thereafter, maintain surplus as to policyholders and paid-in capital of at least fifteen million dollars and annually file audited financial statements with the commissioner; and

      (ii) The commissioner may authorize an insurer or risk retention group that has surplus as to policyholders and paid-in capital of less than fifteen million dollars, but at least equal to ten million dollars, to issue the insurance required by this subsection if the insurer or risk retention group demonstrates to the satisfaction of the commissioner that the company maintains a ratio of direct written premiums, wherever written, to surplus as to policyholders and paid-in capital of not more than three to one.

      (3) Applicants to be a protection product guarantee provider shall make an application to the commissioner upon a form to be furnished by the commissioner. The application shall include or be accompanied by the following information and documents:

      (a) The names of the protection product guarantee provider's executive officer or officers directly responsible for the protection product guarantee provider's protection product guarantee business and their biographical affidavits on a form prescribed by the commissioner;

      (b) The name, address, and telephone number of any administrators designated by the protection product guarantee provider to be responsible for the administration of protection product guarantees in this state;

      (c) A copy of the protection product guarantee reimbursement insurance policy or policies;

      (d) A copy of each protection product guarantee the protection product guarantee provider proposes to use in this state;

      (e) Any other pertinent information required by the commissioner; and

      (f) A nonrefundable application fee of two hundred fifty dollars.

      (4) The applicant shall appoint the commissioner as its attorney to receive service of legal process in any action, suit, or proceeding in any court. This appointment is irrevocable and shall bind the protection product guarantee provider or any successor in interest, shall remain in effect as long as there is in force in this state any protection product guarantee or any obligation arising therefrom related to residents of this state, and shall be processed in accordance with RCW 48.05.210.

       (5) The commissioner may refuse to issue a registration if the commissioner determines that the protection product guarantee provider, or any individual responsible for the conduct of the affairs of the protection product guarantee provider under subsection (3)(a) of this section, is not competent, trustworthy, financially responsible, or has had a license as a protection product guarantee provider or similar license denied or revoked for cause by any state.

      (6) A registration issued under this section is valid, unless surrendered, suspended, or revoked by the commissioner, or not renewed for so long as the protection product guarantee provider continues in business in this state and remains in compliance with this chapter. A registration is subject to renewal annually on the first day of July upon application of the protection product guarantee provider and payment of a fee of two hundred fifty dollars. If not so renewed, the registration expires on the June 30th next preceding.

      (7) A protection product guarantee provider shall keep current the information required to be disclosed in its registration under this section by reporting all material changes or additions within thirty days after the end of the month in which the change or addition occurs.

      NEW SECTION. Sec. 18. A new section is added to chapter 48.110 RCW to read as follows:

      (1) This section applies to service contracts on motor vehicles.

      (2) Service contracts shall not be issued, sold, or offered for sale in this state or sold to consumers in this state unless:

      (a) The service contract provider has either demonstrated its financial responsibility or assured the faithful performance of the service contract provider's obligations to its service contract holders by insuring all service contracts under a reimbursement insurance policy issued by an insurer holding a certificate of authority from the commissioner or a risk retention group, as defined in 15 U.S.C. Sec. 3901(a)(4), as long as that risk retention group is in full compliance with the federal liability risk retention act of 1986 (15 U.S.C. Sec. 3901 et seq.), is in good standing in its domiciliary jurisdiction, and properly registered with the commissioner under chapter 48.92 RCW. The insurance required by this subsection must meet the following requirements:

       (i) The insurer or risk retention group must, at the time the policy is filed with the commissioner, and continuously thereafter, maintain surplus as to policyholders and paid-in capital of at least fifteen million dollars and annually file audited financial statements with the commissioner; and

      (ii) The commissioner may authorize an insurer or risk retention group that has surplus as to policyholders and paid-in capital of less than fifteen million dollars, but at least equal to ten million dollars, to issue the insurance required by this subsection if the insurer or risk retention group demonstrates to the satisfaction of the commissioner that the company maintains a ratio of direct written premiums, wherever written, to surplus as to policyholders and paid-in capital of not more than three to one;

      (b) The service contract conspicuously states that the obligations of the provider to the service contract holder are guaranteed under the reimbursement insurance policy, the name and address of the issuer of the reimbursement insurance policy, the applicable policy number, and the means by which a service contract holder may file a claim under the policy;

      (c) The service contract conspicuously and unambiguously states the name and address of the service contract provider and identifies any administrator if different from the service contract provider, the service contract seller, and the service contract holder. The identity of the service contract seller and the service contract holder are not required to be preprinted on the service contract and may be added to the service contract at the time of sale;

      (d) The service contract states the purchase price of the service contract and the terms under which the service contract is sold. The purchase price is not required to be preprinted on the service contract and may be negotiated at the time of sale;

      (e) The contract contains a conspicuous statement that has been initialed by the service contract holder and discloses:

      (i) Any material conditions that the service contract holder must meet to maintain coverage under the contract including, but not limited to, any maintenance schedule to which the service contract holder must adhere, any requirement placed on the service contract holder for documenting repair or maintenance work, any duty to protect against any further damage, and any procedure to which the service contract holder must adhere for filing claims;

      (ii) The work and parts covered by the contract;

      (iii) Any time or mileage limitations;

      (iv) That the implied warranty of merchantability on the motor vehicle is not waived if the contract has been purchased within ninety days of the purchase date of the motor vehicle from a provider or service contract seller who also sold the motor vehicle covered by the contract;

      (v) Any exclusions of coverage; and

      (vi) The contract holder's right to return the contract for a refund, which right can be no more restrictive than provided for in subsection (4) of this section;

      (f) The service contract states the procedure to obtain service or to file a claim, including but not limited to the procedures for obtaining prior approval for repair work, the toll-free telephone number if prior approval is necessary for service, and the procedure for obtaining emergency repairs performed outside of normal business hours or for obtaining twenty-four-hour telephone assistance;

      (g) The service contract states the existence of any deductible amount, if applicable;

      (h) The service contract states any restrictions governing the transferability of the service contract, if applicable; and

      (i) The service contract states whether or not the service contract provides for or excludes consequential damages or preexisting conditions.

      (3) Service contracts shall not contain a provision which requires that any civil action brought in connection with the service contract must be brought in the courts of a jurisdiction other than this state. Service contracts that authorize binding arbitration to resolve claims or disputes must allow for arbitration proceedings to be held at a location in closest proximity to the service contract holder's permanent residence.

      (4)(a) At a minimum, every provider shall permit the service contract holder to return the contract within thirty days of its purchase if no claim has been made under the contract, and shall refund to the holder the full purchase price of the contract unless the service contract holder returns the contract ten or more days after its purchase, in which case the provider may charge a cancellation fee not exceeding twenty-five dollars.

      (b) If no claim has been made and a contract holder returns the contract after thirty days, the provider shall refund the purchase price pro rata based upon either elapsed time or mileage computed from the date the contract was purchased and the mileage on that date, less a cancellation fee not exceeding twenty-five dollars.

      (c) A ten percent penalty shall be added to any refund that is not paid within thirty days of return of the contract to the provider.

      (d) If a contract holder returns the contract under this subsection, the contract is void from the beginning and the parties are in the same position as if no contract had been issued.

      (e) If a service contract holder returns the contract in accordance with this section, the insurer issuing the reimbursement insurance policy covering the contract shall refund to the provider the full premium by the provider for the contract if canceled within thirty days or a pro rata refund if canceled after thirty days.

      (5) A service contract provider shall not deny a claim for coverage based upon the service contract holder's failure to properly maintain the vehicle, unless the failure to maintain the vehicle involved the failed part or parts.

      (6) A contract provider has only sixty days from the date of the sale of the service contract to the holder to determine whether or not the vehicle qualifies under the provider's program for that vehicle. After sixty days the vehicle qualifies for the service contract that was issued and the service contract provider may not cancel the contract and is fully obligated under the terms of the contract sold to the service contract holder.

      NEW SECTION. Sec. 19. A new section is added to chapter 48.110 RCW to read as follows:

      (1) Except for service contract providers or protection product guarantee providers, persons marketing, selling, or offering to sell service contracts or protection products for providers are exempt from the registration requirements of RCW 48.110.030.

      (2) The marketing, sale, offering for sale, issuance, making, proposing to make, and administration of service contracts or protection products by service contract providers or protection product guarantee providers and related service contract or protection product sellers, administrators, and other persons complying with this chapter are exempt from the other provisions of this title, except chapters 48.04 and 48.30 RCW and as otherwise provided in this chapter.

      NEW SECTION. Sec. 20. A new section is added to chapter 48.110 RCW to read as follows:

      (1) If the service contract provider or protection product guarantee provider is using reimbursement insurance policy to satisfy the requirements of RCW 48.110.050(2)(a) or section 17(2)(b) or 18(2)(a) of this act, then the reimbursement insurance policy shall be filed with and approved by the commissioner in accordance with and pursuant to the requirements of chapter 48.18 RCW.

      (2) All service contracts forms covering motor vehicles must be filed with and approved by the commissioner prior to the service contract forms being used, issued, delivered, sold, or marketed in this state or to residents of this state.

      (3) All service contracts forms covering motor vehicles being used, issued, delivered, sold, or marketed in this state or to residents of this state by motor vehicle manufacturers or import distributors or wholly owned subsidiaries thereof must be filed with the commissioner for approval within sixty days after the motor vehicle manufacturer or import distributor or wholly owned subsidiary thereof begins using the service contracts forms.

      (4) The commissioner shall disapprove any motor vehicle service contract form if:

      (a) The form is in any respect in violation of, or does not comply with, this chapter or any applicable order or regulation of the commissioner issued under this chapter;

      (b) The form contains or incorporates by reference any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions;

      (c) The form has any title, heading, or other indication of its provisions that is misleading; or

      (d) The purchase of the contract is being solicited by deceptive advertising.

      NEW SECTION. Sec. 21. (1) RCW 48.110.030 (2) (a) and (b), (3), and (4), 48.110.040, 48.110.060, 48.110.100, 48.110.110, section 18 (2)(a) and (b) and (4)(e) of this act, and section 20 (1) and (2) of this act do not apply to motor vehicle service contracts issued by a motor vehicle manufacturer or import distributor covering vehicles manufactured or imported by the motor vehicle manufacturer or import distributor.

      (2) RCW 48.110.030(2)(c) does not apply to a publicly traded motor vehicle manufacturer or import distributor.

      (3) RCW 48.110.030 (2) (a) through (c), (3), and (4), 48.110.040, and section 20(2) of this act do not apply to wholly owned subsidiaries of motor vehicle manufacturers or import distributors.

      (4) The adoption of this act does not imply that a vehicle protection product warranty was insurance prior to October 1, 2006.

      NEW SECTION. Sec. 22. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

      NEW SECTION. Sec. 23. The following acts or parts of acts are each repealed:

(1) RCW 48.96.005 (Purpose) and 1990 c 239 s 2;

(2) RCW 48.96.010 (Definitions) and 1987 c 99 s 1;

(3) RCW 48.96.020 (Reimbursement policy required for sale of service contract) and 1987 c 99 s 2;

(4) RCW 48.96.025 (Reimbursement policy--Insurer's responsibility) and 1990 c 239 s 3;

(5) RCW 48.96.030 (Reimbursement policy--Required provisions) and 1990 c 239 s 6 & 1987 c 99 s 3;

(6) RCW 48.96.040 (Service contract--Required statements) and 1990 c 239 s 7 & 1987 c 99 s 4;

(7) RCW 48.96.045 (Service contract--Notice to holder) and 1990 c 239 s 4;

(8) RCW 48.96.047 (Service contract--Holder's right to return) and 1990 c 239 s 5;

(9) RCW 48.96.050 (Service contracts--Excluded parties) and 1990 c 239 s 8 & 1987 c 99 s 5;

(10) RCW 48.96.060 (Noncompliance as unfair competition, trade practice--Remedies) and 1990 c 239 s 9 & 1987 c 99 s 6;

(11) RCW 48.96.900 (Application of chapter--Date) and 1987 c 99 s 7; and

(12) RCW 48.96.901 (Effective date--1990 c 239 §§ 2-10) and 1990 c 239 s 11.

      NEW SECTION. Sec. 24. This act takes effect October 1, 2006."

      On page 1, line 2 of the title, after "products;" strike the remainder of the title and insert "amending RCW 48.110.010, 48.110.015, 48.110.020, 48.110.030, 48.110.040, 48.110.050, 48.110.060, 48.110.070, 48.110.080, 48.110.090, 48.110.100, 48.110.110, 48.110.120, 48.110.130, 48.110.140, and 48.110.900; adding new sections to chapter 48.110 RCW; creating a new section; repealing RCW 48.96.005, 48.96.010, 48.96.020, 48.96.025, 48.96.030, 48.96.040, 48.96.045, 48.96.047, 48.96.050, 48.96.060, 48.96.900, and 48.96.901; prescribing penalties; and providing an effective date."

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

MOTION

On motion of Senator Schoesler, Senator Honeyford was excused.

MOTION

On motion of Senator Eide, further consideration of Substitute House Bill No. 2553 was deferred and the bill held its place on the second reading calendar.

SECOND READING

      HOUSE BILL NO. 2606, by Representatives Curtis, Takko, Orcutt, McDonald, Grant, Hinkle, Clements, Moeller, Chandler, Wallace, Tom, Kretz, Nixon, Blake, Kessler, Rodne, Haigh, B. Sullivan and Morrell

      Allowing volunteer fire fighter personnel to hold elective or appointed office.

      The measure was read the second time.

MOTION

      Senator Zarelli moved that the following committee striking amendment by the Committee on Government Operations & Elections be adopted.

      Strike everything after the enacting clause and insert the following:

      "NEW SECTION. Sec. 1. A new section is added to chapter 35.21 RCW to read as follows:

      (1) Except as otherwise prohibited by law, a volunteer member of any fire department who does not serve as fire chief for the department may be:

      (a) A candidate for elective public office and serve in that public office if elected; or

      (b) Appointed to any public office and serve in that public office if appointed.

      (2) For purposes of this section, "volunteer" means a member of any fire department who performs voluntarily any assigned or authorized duties on behalf of or at the direction of the fire department without receiving compensation or consideration for performing such duties.

      (3) For purposes of this section, "compensation" and "consideration" do not include any benefits the volunteer may have accrued or is accruing under chapter 41.24 RCW.

      NEW SECTION. Sec. 2. A new section is added to chapter 52.30 RCW to read as follows:

      (1) Except as otherwise prohibited by law, a volunteer member of any fire protection district who does not serve as fire chief for the district may be:

      (a) A candidate for elective public office and serve in that public office if elected; or

      (b) Appointed to any public office and serve in that public office if appointed.

      (2) For purposes of this section, "volunteer" means a member of any fire protection district who performs voluntarily any assigned or authorized duties on behalf of or at the direction of the fire protection district without receiving compensation or consideration for performing such duties.

      (3) For purposes of this section, "compensation" and "consideration" do not include any benefits the volunteer may have accrued or is accruing under chapter 41.24 RCW."

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

      The President Pro Tempore declared the question before the Senate to be the adoption of the committee striking amendment by the Committee on Government Operations & Elections to House Bill No. 2606.

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

MOTION

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

      On page 1, line 2 of the title, after "office;" strike the remainder of the title and insert "adding a new section to chapter 35.21 RCW; and adding a new section to chapter 52.30 RCW."

MOTION

      On motion of Senator Zarelli, the rules were suspended, House Bill No. 2606 as amended by the Senate was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 2606 as amended by the Senate.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2606 as amended by the Senate and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

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

      Excused: Senators Brandland, Hargrove, Regala and Thibaudeau - 4

      HOUSE BILL NO. 2606 as amended by the Senate, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2876, by Representatives Ericksen, Wood, Dunn, Armstrong and Ericks

      Clarifying procedures for sound and video recordings by law enforcement officers.

      The measure was read the second time.

MOTION

      On motion of Senator Weinstein, the rules were suspended, Substitute House Bill No. 2876 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Weinstein spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 2876.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2876 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 2; Excused, 4.

      Voting yea: Senators Benson, Benton, Berkey, Carrell, Deccio, Delvin, Doumit, Eide, Esser, Fairley, Finkbeiner, Franklin, Fraser, Haugen, Hewitt, Honeyford, Jacobsen, Johnson, Kastama, Keiser, Kline, Kohl-Welles, McAuliffe, McCaslin, Morton, Mulliken, Oke, Parlette, Pflug, Poulsen, Prentice, Pridemore, Rasmussen, Roach, Schmidt, Schoesler, Sheldon, Shin, Spanel, Stevens, Swecker, Weinstein and Zarelli - 43

      Absent: Senators Brown and Rockefeller - 2

      Excused: Senators Brandland, Hargrove, Regala and Thibaudeau - 4

      SUBSTITUTE HOUSE BILL NO. 2876, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      SUBSTITUTE HOUSE BILL NO. 2394, by House Committee on Children & Family Services (originally sponsored by Representatives Dickerson, Morrell, Appleton, Moeller, Lantz, Hasegawa, Williams, Darneille, Santos, Haler, Wallace, Walsh, McIntire and Simpson)

      Including financial literacy in work activity provisions.

      The measure was read the second time.

MOTION

      On motion of Senator Regala, the rules were suspended, Substitute House Bill No. 2394 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

MOTION

On motion of Senator Schoesler, Senators Parlette and Hewitt were excused.

      Senator Regala spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of Substitute House Bill No. 2394.

ROLL CALL

      The Secretary called the roll on the final passage of Substitute House Bill No. 2394 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 0; Excused, 4.

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

      Excused: Senators Brandland, Hewitt, Parlette and Thibaudeau - 4

      SUBSTITUTE HOUSE BILL NO. 2394, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 2857, by Representatives Kenney, Sells, Cox, Rodne and Kessler

      Revising terms of appointment of student regents and trustees.

      The measure was read the second time.

MOTION

      On motion of Senator McAuliffe, the rules were suspended, House Bill No. 2857 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator McAuliffe spoke in favor of passage of the bill.

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 2857.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 2857 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 0; Absent, 1; Excused, 3.

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

      Absent: Senator Brown - 1

      Excused: Senators Brandland, Hewitt and Parlette - 3

      HOUSE BILL NO. 2857, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2951, by House Committee on Judiciary (originally sponsored by Representatives Campbell, Morrell, McCune and Green)

      Creating a firearms training certificate program for retired law enforcement officers.

      The measure was read the second time.

MOTION

      On motion of Senator Kline, the rules were suspended, Engrossed Substitute House Bill No. 2951 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Senator Kline spoke in favor of passage of the bill.

MOTION

On motion of Senator Regala, Senator Brown was excused.

      The President Pro Tempore declared the question before the Senate to be the final passage of Engrossed Substitute House Bill No. 2951.

ROLL CALL

      The Secretary called the roll on the final passage of Engrossed Substitute House Bill No. 2951 and the bill passed the Senate by the following vote: Yeas, 44; Nays, 0; Absent, 1; Excused, 4.

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

      Absent: Senator Kohl-Welles - 1

      Excused: Senators Brandland, Brown, Hewitt and Parlette - 4

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 2951, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

SECOND READING

      HOUSE BILL NO. 1641, by Representatives Kretz, Blake, Ahern, Buri, Ericks, Serben, DeBolt, Schindler, Kristiansen, Condotta, Orcutt, Strow, Cox, Buck and Armstrong

      Decriminalizing vessel registration violations.

      The measure was read the second time.

MOTION

      On motion of Senator Jacobsen, the rules were suspended, House Bill No. 1641 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

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

      The President Pro Tempore declared the question before the Senate to be the final passage of House Bill No. 1641.

ROLL CALL

      The Secretary called the roll on the final passage of House Bill No. 1641 and the bill passed the Senate by the following vote: Yeas, 43; Nays, 0; Absent, 2; Excused, 4.

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

      Absent: Senators Deccio and Kohl-Welles - 2

      Excused: Senators Brandland, Brown, Hewitt and Parlette - 4

      HOUSE BILL NO. 1641, having received the constitutional majority, was declared passed. There being no objection, the title of the bill was ordered to stand as the title of the act.

MOTION

On motion of Senator Weinstein, Senators Kohl-Welles and Rockefeller were excused.

SECOND READING

      ENGROSSED SUBSTITUTE HOUSE BILL NO. 1080, by House Committee on Criminal Justice & Corrections (originally sponsored by Representatives McDonald, O'Brien and Morrell)

      Protecting dependent persons.

      The measure was read the second time.

MOTION

      Senator Kline moved that the following committee striking amendment by the Committee on Judiciary be adopted.

      Strike everything after the enacting clause and insert the following:

      "Sec. 1. RCW 9A.42.010 and 1997 c 392 s 508 are each amended to read as follows:

      As used in this chapter:

      (1) "Basic necessities of life" means food, water, shelter, clothing, and medically necessary health care, including but not limited to health-related treatment or activities, hygiene, oxygen, and medication.

      (2)(a) "Bodily injury" means physical pain or injury, illness, or an impairment of physical condition;

      (b) "Substantial bodily harm" means bodily injury which involves a temporary but substantial disfigurement, or which causes a temporary but substantial loss or impairment of the function of any bodily part or organ, or which causes a fracture of any bodily part;

      (c) "Great bodily harm" means bodily injury which creates a high probability of death, or which causes serious permanent disfigurement, or which causes a permanent or protracted loss or impairment of the function of any bodily part or organ.

      (3) "Child" means a person under eighteen years of age.

      (4) "Dependent person" means a person who, because of physical or mental disability, or because of extreme advanced age, is dependent upon another person to provide the basic necessities of life. A resident of a nursing home, as defined in RCW 18.51.010, a resident of an adult family home, as defined in RCW 70.128.010, and a frail elder or vulnerable adult, as defined in RCW 74.34.020(((8))) (13), is presumed to be a dependent person for purposes of this chapter.

      (5) "Employed" means hired by a dependent person, another person acting on behalf of a dependent person, or by an organization or governmental entity, to provide to a dependent person any of the basic necessities of life. A person may be "employed" regardless of whether the person is paid for the services or, if paid, regardless of who pays for the person's services.

      (6) "Parent" has its ordinary meaning and also includes a guardian and the authorized agent of a parent or guardian.

      (7) "Abandons" means leaving a child or other dependent person without the means or ability to obtain one or more of the basic necessities of life.

(8) "Good samaritan" means any individual or group of individuals who: (a) Is not related to the dependent person; (b) voluntarily provides assistance or services of any type to the dependent person; (c) is not paid, given gifts, or made a beneficiary of any assets valued at five hundred dollars or more, for any reason, by the dependent person, the dependent person's family, or the dependent person's estate; and (d) does not commit or attempt to commit any other crime against the dependent person or the dependent person's estate.

      Sec. 2. RCW 9A.42.020 and 1997 c 392 s 510 are each amended to read as follows:

      (1) A parent of a child, the person entrusted with the physical custody of a child or dependent person, a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or a person employed to provide to the child or dependent person the basic necessities of life is guilty of criminal mistreatment in the first degree if he or she recklessly, as defined in RCW 9A.08.010, causes great bodily harm to a child or dependent person by withholding any of the basic necessities of life.

      (2) Criminal mistreatment in the first degree is a class B felony.

      Sec. 3. RCW 9A.42.030 and 1997 c 392 s 511 are each amended to read as follows:

      (1) A parent of a child, the person entrusted with the physical custody of a child or dependent person, a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or a person employed to provide to the child or dependent person the basic necessities of life is guilty of criminal mistreatment in the second degree if he or she recklessly, as defined in RCW 9A.08.010, either (a) creates an imminent and substantial risk of death or great bodily harm, or (b) causes substantial bodily harm by withholding any of the basic necessities of life.

      (2) Criminal mistreatment in the second degree is a class C felony.

      Sec. 4. RCW 9A.42.035 and 2000 c 76 s 1 are each amended to read as follows:

      (1) A person is guilty of the crime of criminal mistreatment in the third degree if the person is the parent of a child, is a person entrusted with the physical custody of a child or other dependent person, is a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or is a person employed to provide to the child or dependent person the basic necessities of life, and either:

      (a) With criminal negligence, creates an imminent and substantial risk of substantial bodily harm to a child or dependent person by withholding any of the basic necessities of life; or

      (b) With criminal negligence, causes substantial bodily harm to a child or dependent person by withholding any of the basic necessities of life.

      (2) For purposes of this section, "a person who has assumed the responsibility to provide to a dependent person the basic necessities of life" means a person other than: (a) A government agency that regularly provides assistance or services to dependent persons, including but not limited to the department of social and health services; or (b) a good samaritan as defined in RCW 9A.42.010.

      (3) Criminal mistreatment in the third degree is a gross misdemeanor.

      Sec. 5. RCW 9A.42.037 and 2002 c 219 s 2 are each amended to read as follows:

      (1) A person is guilty of the crime of criminal mistreatment in the fourth degree if the person is the parent of a child, is a person entrusted with the physical custody of a child or other dependent person, is a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or is a person employed to provide to the child or dependent person the basic necessities of life, and either:

       (a) With criminal negligence, creates an imminent and substantial risk of bodily injury to a child or dependent person by withholding any of the basic necessities of life; or

      (b) With criminal negligence, causes bodily injury or extreme emotional distress manifested by more than transient physical symptoms to a child or dependent person by withholding the basic necessities of life.

      (2) For purposes of this section, "a person who has assumed the responsibility to provide to a dependent person the basic necessities of life" means a person other than: (a) A government agency that regularly provides assistance or services to dependent persons, including but not limited to the department of social and health services; or (b) a good samaritan as defined in RCW 9A.42.010.

      (3) Criminal mistreatment in the fourth degree is a misdemeanor.

      Sec. 6. RCW 9A.42.060 and 2002 c 331 s 3 are each amended to read as follows:

      (1) Except as provided in subsection (2) of this section, a person is guilty of the crime of abandonment of a dependent person in the first degree if:

      (a) The person is the parent of a child, a person entrusted with the physical custody of a child or other dependent person, a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or a person employed to provide to the child or other dependent person any of the basic necessities of life;

      (b) The person recklessly abandons the child or other dependent person; and

      (c) As a result of being abandoned, the child or other dependent person suffers great bodily harm.

      (2) A parent of a newborn who transfers the newborn to a qualified person at an appropriate location pursuant to RCW 13.34.360 is not subject to criminal liability under this section.

      (3) Abandonment of a dependent person in the first degree is a class B felony.

      Sec. 7. RCW 9A.42.070 and 2002 c 331 s 4 are each amended to read as follows:

      (1) Except as provided in subsection (2) of this section, a person is guilty of the crime of abandonment of a dependent person in the second degree if:

      (a) The person is the parent of a child, a person entrusted with the physical custody of a child or other dependent person, a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or a person employed to provide to the child or other dependent person any of the basic necessities of life; and

      (b) The person recklessly abandons the child or other dependent person; and:

      (i) As a result of being abandoned, the child or other dependent person suffers substantial bodily harm; or

      (ii) Abandoning the child or other dependent person creates an imminent and substantial risk that the child or other dependent person will die or suffer great bodily harm.

      (2) A parent of a newborn who transfers the newborn to a qualified person at an appropriate location pursuant to RCW 13.34.360 is not subject to criminal liability under this section.

      (3) Abandonment of a dependent person in the second degree is a class C felony.

      Sec. 8. RCW 9A.42.080 and 2002 c 331 s 5 are each amended to read as follows:

      (1) Except as provided in subsection (2) of this section, a person is guilty of the crime of abandonment of a dependent person in the third degree if:

      (a) The person is the parent of a child, a person entrusted with the physical custody of a child or other dependent person, a person who has assumed the responsibility to provide to a dependent person the basic necessities of life, or a person employed to provide to the child or dependent person any of the basic necessities of life; and

      (b) The person recklessly abandons the child or other dependent person; and:

      (i) As a result of being abandoned, the child or other dependent person suffers bodily harm; or

      (ii) Abandoning the child or other dependent person creates an imminent and substantial risk that the child or other person will suffer substantial bodily harm.

       (2) A parent of a newborn who transfers the newborn to a qualified person at an appropriate location pursuant to RCW 13.34.360 is not subject to criminal liability under this section.

      (3) Abandonment of a dependent person in the third degree is a gross misdemeanor.

      Sec. 9. RCW 9.94A.515 and 2005 c 458 s 2 and 2005 c 183 s 9 are each reenacted and amended to read as follows: