SIXTY SECOND LEGISLATURE - REGULAR SESSION

 

 

NINETY FOURTH DAY

 

 

House Chamber, Olympia, Wednesday, April 13, 2011

 


The House was called to order at 10:00 a.m. by the Speaker (Representative Moeller presiding) .  The Clerk called the roll and a quorum was present.

 

The flags were escorted to the rostrum by the Naval Station Everett Color Guard, Jose Fernandez and Zumrat Makhkamova.  The Speaker (Representative Moeller presiding) led the Chamber in the Pledge of Allegiance.  The National Anthem was sung by Musician Third Class Stephanie Brainard, Navy Band Northwest.  The prayer was offered by Deputy Region Chaplain Captain Barry Crane, Navy Region Northwest, Washington.  The Five Star Brass Quintet from Navy Band Northwest, comprised of Musician Second Class Christopher bourgeois, Musician Third Class Ian Wheeler, Musician Third Class Gregory Lopes, Musician Third Class Billy Collins and Musician Seaman Christopher McGann, performed the Navy Hymn “Eternal Father”.

 

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

 

RESOLUTION

 

HOUSE RESOLUTION NO. 2011-4648, by Representatives Bailey, Seaquist, Smith, Rolfes, Appleton, Ahern, Alexander, Anderson, Angel, Armstrong, Asay, Billig, Blake, Buys, Carlyle, Chandler, Chopp, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haigh, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Ross, Ryu, Santos, Schmick, Sells, Shea, Short, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, and Zeiger

 

      WHEREAS, Washington state is uniquely positioned politically, economically, and geographically to deal with the opportunities and challenges presented by Asia and the Pacific Rim countries; and

      WHEREAS, The Navy is the military service that secures sea lanes, allowing free flow of commerce to and from our state, and the service whose power projection promotes stability for our friends and deters aggression from our foes; and

      WHEREAS, The Navy has been a presence in Puget Sound for one hundred seventy years, and Puget Sound is today the Navy's third largest Fleet concentration area; and

      WHEREAS, The United States Navy spends 1.9 billion dollars in expenditures and 3.9 billion dollars in compensation in Washington State and provides economic stability to dozens of Washington cities and tens of thousands of Washington State citizens; and

      WHEREAS, Washington was chosen as the new homeport for the aircraft carrier USS Nimitz, making our state home to 3 aircraft carriers, 10 warships, 15 submarines, and 115 aircraft; and

      WHEREAS, Washington State naval bases consistently receive awards for the quality of life they provide to sailors and family members, are recognized as models for other military facilities, and are continually being improved in energy efficiency and environmental responsibility; and

      WHEREAS, Navy personnel provide homeland security, disaster assistance, and rescue services to Washington State citizens; and

      WHEREAS, More than 150,000 members of the Navy family including active duty, retired, dependent, and civilian Navy personnel consider Washington State home and are community leaders, role models, and mentors who invest millions of dollars and thousands of hours to the economy, local charities, and community programs; and

      WHEREAS, We as Washingtonians come together and celebrate the 100th Anniversary of Naval Aviation; and

      WHEREAS, The 100th Anniversary is an astounding milestone that gives the United States Sea Services an opportunity to commemorate the unique contributions Naval Aviation has made to our security;

      NOW, THEREFORE, BE IT RESOLVED, That the Washington State House of Representatives recognize and express appreciation for all those who have ever served in the United States Navy, and all the family members and friends who shared their sacrifices with them; and

      BE IT FURTHER RESOLVED, That the House of Representatives recognize all the many contributions the Navy and its personnel make for everyone living in the United States and the entire global community, and observe Navy Day.

 

Representative Bailey moved adoption of HOUSE RESOLUTION NO. 4648

 

      Representatives Bailey, Seaquist and Dammeier spoke in favor of the adoption of the resolution.

 

HOUSE RESOLUTION NO. 4648 was adopted.

 

MESSAGES FROM THE SENATE

 

April 12, 2011

MR. SPEAKER:

 

The Senate has passed:

ENGROSSED HOUSE BILL 1177

HOUSE BILL 1425

SUBSTITUTE HOUSE BILL 1600

HOUSE BILL 1867

SECOND SUBSTITUTE HOUSE BILL 1909

and the same are herewith transmitted.

Thomas Hoemann, Secretary

 

April 12, 2011

MR. SPEAKER:

 

The Senate has passed:

HOUSE BILL 1726

ENGROSSED HOUSE BILL 1730

HOUSE BILL 1794

and the same are herewith transmitted.

Thomas Hoemann, Secretary

 

April 12, 2011

MR. SPEAKER:

 

The President has signed:

SUBSTITUTE SENATE BILL 5167

SENATE BILL 5367

SENATE BILL 5389

SENATE BILL 5480

and the same are herewith transmitted.

Thomas Hoemann, Secretary

 

INTRODUCTIONS AND FIRST READING

 

HB 2079 by Representative Morris

 

AN ACT Relating to Washington state ferry system management and ferry construction; amending RCW 47.64.280, 47.64.011, 47.64.150, and 47.60.315; reenacting and amending RCW 43.84.092; adding new sections to chapter 47.60 RCW; adding new sections to chapter 47.64 RCW; adding a new section to chapter 41.58 RCW; creating new sections; recodifying RCW 47.64.280; and declaring an emergency.

 

Referred to Committee on Transportation.

 

HB 2080 by Representative Hasegawa

 

AN ACT Relating to modifying tax refund and interest provisions; amending RCW 82.32.050, 82.32.060, 82.32.062, 82.45.100, 82.12.045, 83.100.130, 84.56.440, 35.102.080, 35.102.110, and 74.60.050; and creating a new section.

 

Referred to Committee on Ways & Means.

 

HB 2081 by Representatives Pedersen and Hudgins

 

AN ACT Relating to providing support for judicial branch agencies by extending surcharges on court fees; amending RCW 12.40.020, 36.18.018, and 43.79.505; reenacting and amending RCW 3.62.060 and 36.18.020; providing an effective date; and declaring an emergency.

 

Referred to Committee on Ways & Means.

 

HB 2082 by Representatives Darneille, Goodman, Dickerson, Roberts, Pettigrew, Appleton, Ryu, Fitzgibbon, Finn, Orwall, Ormsby and Ladenburg

 

AN ACT Relating to reforming the disability lifeline program through essential needs and housing support for persons not likely to meet federal supplemental security income disability standards, continued aid and support for other disability lifeline recipients, and modification of the disability lifeline medical care services needed to receive federal funding; amending RCW 74.04.005; reenacting and amending RCW 74.09.035; adding new sections to chapter 74.04 RCW; adding new sections to chapter 43.185C RCW; creating new sections; repealing RCW 43.330.175; providing an effective date; and declaring an emergency.

 

Referred to Committee on Ways & Means.

 

HB 2083 by Representative Rolfes

 

AN ACT Relating to funding for the construction of a ferry boat vessel with a capacity of at least one hundred forty-four cars; adding a new section to chapter 82.32 RCW; making an appropriation; providing an effective date; and declaring an emergency.

 

Referred to Committee on Ways & Means.

 

HB 2084 by Representative Hasegawa

 

AN ACT Relating to evaluating the impacts of budget decisions; amending RCW 43.88A.020; and creating a new section.

 

Referred to Committee on Ways & Means.

 

ESSB 5742      by Senate Committee on Transportation (originally sponsored by Senators Haugen, Ranker and Shin)

 

AN ACT Relating to providing funding and cost saving measures for the Washington state ferry system; amending RCW 47.60.530, 47.60.315, 82.08.0255, 82.12.0256, 47.64.011, 47.64.210, 47.64.150, 41.58.060, and 39.04.320; reenacting and amending RCW 43.84.092, 47.64.090, and 41.06.070; adding a new section to chapter 47.60 RCW; creating a new section; and repealing RCW 47.64.280.

 

Referred to Committee on Transportation.

 

There being no objection, the bills listed on the day’s introduction sheet under the fourth order of business were referred to the committees so designated.

 

REPORTS OF STANDING COMMITTEES

 

April 12, 20110)

HB 1348             Prime Sponsor, Representative Dunshee: Concerning state general obligation bonds and related accounts.  Reported by Committee on Capital Budget

 

MAJORITY recommendation:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by Representatives Dunshee, Chair; Ormsby, Vice Chair; Warnick, Ranking Minority Member; Zeiger, Assistant Ranking Minority Member; Asay; Jinkins; Lytton; Moeller; Pearson; Smith and Tharinger.

 

April 12, 20110)

HB 1497             Prime Sponsor, Representative Dunshee: Adopting a 2011-2013 capital budget.  Reported by Committee on Capital Budget

 

MAJORITY recommendation:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by Representatives Dunshee, Chair; Ormsby, Vice Chair; Warnick, Ranking Minority Member; Zeiger, Assistant Ranking Minority Member; Asay; Jinkins; Lytton; Moeller; Pearson; Smith and Tharinger.

 

April 12, 20110)

HB 2040             Prime Sponsor, Representative Dunshee: Providing for assistance for financing infrastructure and economic development.  Reported by Committee on Capital Budget

 

MAJORITY recommendation:  The substitute bill be substituted therefor and the substitute bill do pass.  Signed by Representatives Dunshee, Chair; Ormsby, Vice Chair; Jinkins; Lytton; Moeller and Tharinger.

 

MINORITY recommendation:  Do not pass.  Signed by Representatives Warnick, Ranking Minority Member; Zeiger, Assistant Ranking Minority Member; Asay; Pearson and Smith.

 

      There being no objection, the bills listed on the day’s committee reports under the fifth order of business were placed on the second reading calendar.

 

There being no objection, the House advanced to the seventh order of business.

 

THIRD READING

 

MESSAGE FROM THE SENATE

April 1, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1026   with the following amendment:

0) 

Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 7.28 RCW to read as follows:

(1) A party who prevails against the holder of record title at the time an action asserting title to real property by adverse possession was filed, or against a subsequent purchaser from such holder, may be required to:

(a) Reimburse such holder or purchaser for part or all of any taxes or assessments levied on the real property during the period the prevailing party was in possession of the real property in question and which are proven by competent evidence to have been paid by such holder or purchaser; and

(b) Pay to the treasurer of the county in which the real property is located part or all of any taxes or assessments levied on the real property after the filing of the adverse possession claim and which are due and remain unpaid at the time judgment on the claim is entered.

(2) If the court orders reimbursement for taxes or assessments paid or payment of taxes or assessments due under subsection (1) of this section, the court shall determine how to allocate taxes or assessments between the property acquired by adverse possession and the property retained by the title holder.  In making its determination, the court shall consider all the facts and shall order such reimbursement or payment as appears equitable and just.

NEW SECTION.  Sec. 2.  This act applies to actions filed on or after July 1, 2012."

On page 1, line 1 of the title, after "possession;" strike the remainder of the title and insert "adding a new section to chapter 7.28 RCW; and creating a new section."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House refused to concur in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1026 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 4, 2011

Mr. Speaker:

 

                The Senate has passed SUBSTITUTE HOUSE BILL NO. 1037   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 4.24 RCW to read as follows:

      If a person serving a criminal sentence in a federal, state, local, or privately operated correctional facility seeks leave to proceed in state court without payment of filing fees in any civil action or appeal against the state, a state or local governmental agency or entity, or a state or local official, employee, or volunteer acting in such capacity, except an action that, if successful, would affect the duration of the person's confinement, the court shall deny the request for waiver of the court filing fees if the person has, on three or more occasions while incarcerated or detained in any such facility, brought an action or appeal that was dismissed by a state or federal court on grounds that it was frivolous or malicious.  One of the three previous dismissals must have involved an action or appeal commenced after the effective date of this section.  A court may permit the person to commence the action or appeal without payment of filing fees if the court determines the person is in imminent danger of serious physical or psychological injury."

On page 1, line 2 of the title, after "facilities;" strike the remainder of the title and insert "and adding a new section to chapter 4.24 RCW."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

SENATE AMENDMENT TO HOUSE BILL

 

                There being no objection, the House refused to concur in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1037 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 9, 2011

Mr. Speaker:

 

                The Senate has passed SUBSTITUTE HOUSE BILL NO. 1046   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 46.12 RCW under the subchapter heading "general provisions" to read as follows:

      (1) The application for a quick title of a vehicle must be submitted by the owner or the owner's representative to the department, participating county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

      (a) A description of the vehicle, including make, model, vehicle identification number, type of body, and the odometer reading at the time of delivery of the vehicle, when required;

      (b) The name and address of the person who is to be the registered owner of the vehicle and, if the vehicle is subject to a security interest, the name and address of the secured party; and

      (c) Other information as may be required by the department.

      (2) The application for a quick title must be signed by the person applying to be the registered owner and be sworn to by that person in the manner described under RCW 9A.72.085.  The department must keep a copy of the application.

      (3) The application for a quick title must be accompanied by:

      (a) All fees and taxes due for an application for a certificate of title, including a quick title service fee under section 2 of this act; and

      (b) The most recent certificate of title or other satisfactory evidence of ownership.

      (4) All applications for quick title must meet the requirements established by the department.

      (5) For the purposes of this section, "quick title" means a certificate of title printed at the time of application.

      (6) The quick title process authorized under this section may not be used to obtain the first title issued to a vehicle previously designated as a salvage vehicle as defined in RCW 46.04.514.

      (7) A subagent may process a quick title under this section only after (a) the department has instituted a process in which blank certificates of title can be inventoried; (b) the county auditor of the county in which the subagent is located has processed quick titles for a minimum of six months; and (c) the county auditor approves a request from a subagent in its county to process quick titles.

NEW SECTION.  Sec. 2.  A new section is added to chapter 46.17 RCW under the subchapter heading "certificate of title fees" to read as follows:

      Before accepting an application for a quick title of a vehicle under section 1 of this act, the department, participating county auditor or other agent, or subagent appointed by the director shall require the applicant to pay a twenty-five dollar quick title service fee in addition to any other fees and taxes required by law.  The quick title service fee must be distributed under section 3 of this act.

NEW SECTION.  Sec. 3.  A new section is added to chapter 46.68 RCW to read as follows:

      (1) The quick title service fee imposed under section 2 of this act must be distributed as follows:

      (a) If the fee is paid to the director, the fee must be deposited to the motor vehicle fund established under RCW 46.68.070.

      (b) If the fee is paid to the participating county auditor or other agent or subagent appointed by the director, twelve dollars and fifty cents must be deposited to the motor vehicle fund established under RCW 46.68.070.  The remainder must be retained by the county treasurer in the same manner as other fees collected by the county auditor.

      (2) For the purposes of this section, "quick title" has the same meaning as in section 1 of this act.

NEW SECTION.  Sec. 4.  A new section is added to chapter 88.02 RCW under the subchapter heading "certificates of title" to read as follows:

      (1) The application for a quick title of a vessel must be made by the owner or the owner's representative to the department, participating county auditor or other agent, or subagent appointed by the director on a form furnished or approved by the department and must contain:

      (a) A description of the vessel, including make, model, hull identification number, series, and body;

      (b) The name and address of the person who is to be the registered owner of the vessel and, if the vessel is subject to a security interest, the name and address of the secured party; and

      (c) Other information as may be required by the department.

      (2) The application for a quick title must be signed by the person applying to be the registered owner and be sworn to by that person in the manner described under RCW 9A.72.085.  The department must keep a copy of the application.

      (3) The application for a quick title must be accompanied by:

      (a) All fees and taxes due for an application for a certificate of title, including a quick title service fee under RCW 88.02.640(1); and

      (b) The most recent certificate of title or other satisfactory evidence of ownership.

      (4) All applications for quick title must meet the requirements established by the department.

      (5) For the purposes of this section, "quick title" means a certificate of title printed at the time of application.

      (6) A subagent may process a quick title under this section only after (a) the department has instituted a process in which blank certificates of title can be inventoried; (b) the county auditor of the county in which the subagent is located has processed quick titles for a minimum of six months; and (c) the county auditor approves a request from a subagent in its county to process quick titles.

Sec. 5.  RCW 88.02.640 and 2010 c 161 s 1028 are each amended to read as follows:

      (1) In addition to any other fees and taxes required by law, the department, county auditor or other agent, or subagent appointed by the director shall charge the following vessel fees:

 

FEE

AMOUNT

AUTHORITY

DISTRIBUTION

(a) Dealer temporary permit

$5.00

RCW 88.02.800(2)

General fund

(b) Derelict vessel and

invasive species removal

Subsection (3) of this

section

Subsections (3) and (4) of

this section

Subsection (3) of this

section

(c) Duplicate registration

$1.25

RCW 88.02.590(1)(c)

General fund

(d) Filing

RCW 46.17.005

RCW 46.17.005

RCW 46.68.440

(e) License plate

technology

RCW 46.17.015

RCW 46.17.015

RCW 46.68.400

(f) License service

RCW 46.17.025

RCW 46.17.025

RCW 46.68.220

(g) Nonresident vessel

permit

$25.00

RCW 88.02.620(3)

Subsection (6) of this

section

(h) Quick title service

$25.00

Section 4(3) of this act

Subsection (7) of this
section

(i) Registration

$10.50

RCW 88.02.560(2)

General fund

(((i))) (j) Replacement

decal

$1.25

RCW 88.02.595(1)(c)

General fund

(((j))) (k) Title application

$5.00

RCW 88.02.515

General fund

(((k))) (l) Transfer

$1.00

RCW 88.02.560(7)

General fund

(((l))) (m) Vessel visitor

permit

$30.00

RCW 88.02.610(3)

General fund

 

      (2) The five dollar dealer temporary permit fee required in subsection (1) of this section must be credited to the payment of registration fees at the time application for registration is made.

      (3)(a) Until June 30, 2012, the derelict vessel and invasive species removal fee required in subsection (1) of this section is five dollars and must be distributed as follows:

      (i) One dollar and fifty cents must be deposited in the aquatic invasive species prevention account created in RCW 77.12.879;

      (ii) One dollar must be deposited into the freshwater aquatic algae control account created in RCW 43.21A.667;

      (iii) Fifty cents must be deposited into the aquatic invasive species enforcement account created in RCW 43.43.400; and

      (iv) Two dollars must be deposited in the derelict vessel removal account created in RCW 79.100.100.

      (b) On and after June 30, 2012, the derelict vessel and invasive species removal fee is two dollars and must be deposited into the derelict vessel removal account created in RCW 79.100.100.  If the department of natural resources indicates that the balance of the derelict vessel removal account, not including any transfer or appropriation of funds into the account or funds deposited into the account collected under subsection (5) of this section reaches one million dollars as of March 1st of any year, the collection of the two dollar derelict vessel and invasive species removal fee must be suspended for the following fiscal year.

      (4) Until January 1, 2014, an annual derelict vessel removal surcharge of one dollar must be charged with each vessel registration.  The surcharge:

      (a) Is to address the significant backlog of derelict vessels accumulated in Washington state waters that pose a threat to the health and safety of the people and to the environment;

      (b) Is to be used only for the removal of vessels that are less than seventy-five feet in length; and

      (c) Must be deposited into the derelict vessel removal account created in RCW 79.100.100.

      (5) The twenty-five dollar nonresident vessel permit fee must be paid by the vessel owner to the department for the cost of providing the identification document by the department.  Any moneys remaining from the fee after the payment of costs must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.655.

      (6) The thirty dollar vessel visitor permit fee must be distributed as follows:

      (a) Five dollars must be deposited in the derelict vessel removal account created in RCW 79.100.100;

      (b) The department may keep an amount to cover costs for providing the vessel visitor permit;

      (c) Any moneys remaining must be allocated to counties by the state treasurer for approved boating safety programs under RCW 88.02.655; and

      (d) Any fees required for licensing agents under RCW 46.17.005 are in addition to any other fee or tax due for the titling and registration of vessels.

(7)(a) The twenty-five dollar quick title service fee must be distributed as follows:
      (i) If the fee is paid to the director, the fee must be deposited to the general fund.
      (ii) If the fee is paid to the participating county auditor or other agent or subagent appointed by the director, twelve dollars and fifty cents must be deposited to the general fund.  The remainder must be retained by the county treasurer in the same manner as other fees collected by the county auditor.
      (b) For the purposes of this subsection, "quick title" has the same meaning as in section 4 of this act.

NEW SECTION.  Sec. 6.  This act applies to quick title transactions processed on and after January 1, 2012.

NEW SECTION.  Sec. 7.  This act takes effect January 1, 2012."

On page 1, line 1 of the title, after "title;" strike the remainder of the title and insert "amending RCW 88.02.640; adding a new section to chapter 46.12 RCW; adding a new section to chapter 46.17 RCW; adding a new section to chapter 46.68 RCW; adding a new section to chapter 88.02 RCW; creating a new section; and providing an effective date."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

SENATE AMENDMENT TO HOUSE BILL

 

                There being no objection, the House refused to concur in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1046 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

                The Senate has passed SUBSTITUTE HOUSE BILL NO. 1053   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 11.88.020 and 1997 c 312 s 1 are each amended to read as follows:

      (1) Any suitable person over the age of eighteen years, or any parent under the age of eighteen years or, if the petition is for appointment of a professional guardian, any individual or guardianship service that meets any certification requirements established by the administrator for the courts, may, if not otherwise disqualified, be appointed guardian or limited guardian of the person and/or the estate of an incapacitated person.  A financial institution subject to the jurisdiction of the department of financial institutions and authorized to exercise trust powers, and a federally chartered financial institution when authorized to do so, may act as a guardian of the estate of an incapacitated person without having to meet the certification requirements established by the administrator for the courts.  No person is qualified to serve as a guardian who is

      (a) under eighteen years of age except as otherwise provided herein;

      (b) of unsound mind;

      (c) convicted of a felony or of a misdemeanor involving moral turpitude;

      (d) a nonresident of this state who has not appointed a resident agent to accept service of process in all actions or proceedings with respect to the estate and caused such appointment to be filed with the court;

      (e) a corporation not authorized to act as a fiduciary, guardian, or limited guardian in the state;

      (f) a person whom the court finds unsuitable.

      (2) The professional guardian certification requirements required under this section shall not apply to a testamentary guardian appointed under RCW 11.88.080.

(3) If a guardian or limited guardian is not a certified professional guardian or financial institution authorized under this section, the guardian or limited guardian shall complete any standardized training video or web cast for lay guardians made available by the administrative office of the courts and the superior court where the petition is filed unless granted a waiver by the court under RCW 11.92.043 or 11.92.040.  The training video or web cast must be provided at no cost to the guardian or limited guardian.
      (a) If a petitioner requests the appointment of a specific individual to act as a guardian or limited guardian, the petition for guardianship or limited guardianship shall include evidence of the successful completion of the required training video or web cast by the proposed guardian or limited guardian.  The superior court may defer the completion of the training requirement to a date no later than ninety days after appointment if the petitioner requests expedited appointment due to emergent circumstances.
      (b) If no person is identified to be appointed guardian or limited guardian at the time the petition is filed, then the court shall require the completion of the required training video or web cast by a date no later than ninety days after the appointment.

Sec. 2.  RCW 11.88.030 and 2009 c 521 s 36 are each amended to read as follows:

      (1) Any person or entity may petition for the appointment of a qualified person, ((trust company, national bank, or nonprofit corporation)) certified professional guardian, or financial institution authorized in RCW 11.88.020 as the guardian or limited guardian of an incapacitated person.  No liability for filing a petition for guardianship or limited guardianship shall attach to a petitioner acting in good faith and upon reasonable basis.  A petition for guardianship or limited guardianship shall state:

      (a) The name, age, residence, and post office address of the alleged incapacitated person;

      (b) The nature of the alleged incapacity in accordance with RCW 11.88.010;

      (c) The approximate value and description of property, including any compensation, pension, insurance, or allowance, to which the alleged incapacitated person may be entitled;

      (d) Whether there is, in any state, a guardian or limited guardian, or pending guardianship action for the person or estate of the alleged incapacitated person;

      (e) The residence and post office address of the person whom petitioner asks to be appointed guardian or limited guardian;

      (f) The names and addresses, and nature of the relationship, so far as known or can be reasonably ascertained, of the persons most closely related by blood, marriage, or state registered domestic partnership to the alleged incapacitated person;

      (g) The name and address of the person or facility having the care and custody of the alleged incapacitated person;

      (h) The reason why the appointment of a guardian or limited guardian is sought and the interest of the petitioner in the appointment, and whether the appointment is sought as guardian or limited guardian of the person, the estate, or both;

      (i) A description of any alternate arrangements previously made by the alleged incapacitated person, such as trusts or powers of attorney, including identifying any guardianship nominations contained in a power of attorney, and why a guardianship is nevertheless necessary;

      (j) The nature and degree of the alleged incapacity and the specific areas of protection and assistance requested and the limitation of rights requested to be included in the court's order of appointment;

      (k) The requested term of the limited guardianship to be included in the court's order of appointment; and

      (l) Whether the petitioner is proposing a specific individual to act as guardian ad litem and, if so, the individual's knowledge of or relationship to any of the parties, and why the individual is proposed.

(2) The petition shall include evidence of successful completion of any training required under RCW 11.88.020 by the proposed guardian or limited guardian unless the petitioner requests expedited appointment due to emergent circumstances.

      (((2))) (3)(a) The attorney general may petition for the appointment of a guardian or limited guardian in any case in which there is cause to believe that a guardianship is necessary and no private party is able and willing to petition.

      (b) Prepayment of a filing fee shall not be required in any guardianship or limited guardianship brought by the attorney general.  Payment of the filing fee shall be ordered from the estate of the incapacitated person at the hearing on the merits of the petition, unless in the judgment of the court, such payment would impose a hardship upon the incapacitated person, in which case the filing shall be waived.

      (((3))) (4) No filing fee shall be charged by the court for filing either a petition for guardianship or a petition for limited guardianship if the petition alleges that the alleged incapacitated person has total assets of a value of less than three thousand dollars.

      (((4))) (5)(a) Notice that a guardianship proceeding has been commenced shall be personally served upon the alleged incapacitated person and the guardian ad litem along with a copy of the petition for appointment of a guardian.  Such notice shall be served not more than five court days after the petition has been filed.

      (b) Notice under this subsection shall include a clear and easily readable statement of the legal rights of the alleged incapacitated person that could be restricted or transferred to a guardian by a guardianship order as well as the right to counsel of choice and to a jury trial on the issue of incapacity.  Such notice shall be in substantially the following form and shall be in capital letters, double-spaced, and in a type size not smaller than ten-point type:

 

             IMPORTANT NOTICE              PLEASE READ CAREFULLY

 

A PETITION TO HAVE A GUARDIAN APPOINTED FOR YOU HAS BEEN FILED IN THE . . . . . . COUNTY SUPERIOR COURT BY . . . . . .  IF A GUARDIAN IS APPOINTED, YOU COULD LOSE ONE OR MORE OF THE FOLLOWING RIGHTS:

      (1) TO MARRY, DIVORCE, OR ENTER INTO OR END A STATE REGISTERED DOMESTIC PARTNERSHIP;

      (2) TO VOTE OR HOLD AN ELECTED OFFICE;

      (3) TO ENTER INTO A CONTRACT OR MAKE OR REVOKE A WILL;

      (4) TO APPOINT SOMEONE TO ACT ON YOUR BEHALF;

      (5) TO SUE AND BE SUED OTHER THAN THROUGH A GUARDIAN;

      (6) TO POSSESS A LICENSE TO DRIVE;

      (7) TO BUY, SELL, OWN, MORTGAGE, OR LEASE PROPERTY;

      (8) TO CONSENT TO OR REFUSE MEDICAL TREATMENT;

      (9) TO DECIDE WHO SHALL PROVIDE CARE AND ASSISTANCE;

      (10) TO MAKE DECISIONS REGARDING SOCIAL ASPECTS OF YOUR LIFE.

 

UNDER THE LAW, YOU HAVE CERTAIN RIGHTS.

 

YOU HAVE THE RIGHT TO BE REPRESENTED BY A LAWYER OF YOUR OWN CHOOSING.  THE COURT WILL APPOINT A LAWYER TO REPRESENT YOU IF YOU ARE UNABLE TO PAY OR PAYMENT WOULD RESULT IN A SUBSTANTIAL HARDSHIP TO YOU.

 

YOU HAVE THE RIGHT TO ASK FOR A JURY TO DECIDE WHETHER OR NOT YOU NEED A GUARDIAN TO HELP YOU.

 

YOU HAVE THE RIGHT TO BE PRESENT IN COURT AND TESTIFY WHEN THE HEARING IS HELD TO DECIDE WHETHER OR NOT YOU NEED A GUARDIAN.  IF A GUARDIAN AD LITEM IS APPOINTED, YOU HAVE THE RIGHT TO REQUEST THE COURT TO REPLACE THAT PERSON.

 

      (((5))) (6) All petitions filed under the provisions of this section shall be heard within sixty days unless an extension of time is requested by a party or the guardian ad litem within such sixty day period and granted for good cause shown.  If an extension is granted, the court shall set a new hearing date.

Sec. 3.  RCW 11.92.043 and 1991 c 289 s 11 are each amended to read as follows:

      It shall be the duty of the guardian or limited guardian of the person:

      (1) To file within three months after appointment a personal care plan for the incapacitated person which shall include (a) an assessment of the incapacitated person's physical, mental, and emotional needs and of such person's ability to perform or assist in activities of daily living, and (b) the guardian's specific plan for meeting the identified and emerging personal care needs of the incapacitated person.

      (2) To file annually or, where a guardian of the estate has been appointed, at the time an account is required to be filed under RCW 11.92.040, a report on the status of the incapacitated person, which shall include:

      (a) The address and name of the incapacitated person and all residential changes during the period;

      (b) The services or programs which the incapacitated person receives;

      (c) The medical status of the incapacitated person;

      (d) The mental status of the incapacitated person;

      (e) Changes in the functional abilities of the incapacitated person;

      (f) Activities of the guardian for the period;

      (g) Any recommended changes in the scope of the authority of the guardian;

      (h) The identity of any professionals who have assisted the incapacitated person during the period;
      (i)(i) Evidence of the guardian or limited guardian's successful completion of any standardized training video or web cast for guardians or limited guardians made available by the administrative office of the courts and the superior court when the guardian or limited guardian:  (A) Was appointed prior to July 24, 2011; (B) is not a certified professional guardian or financial institution authorized under RCW 11.88.020; and (C) has not previously completed the requirements of RCW 11.88.020(3).  The training video or web cast must be provided at no cost to the guardian or limited guardian.
      (ii) The superior court may, upon (A) petition by the guardian or limited guardian; or (B) any other method as provided by local court rule:  (I) For good cause, waive this requirement for guardians appointed prior to July 24, 2011.  Good cause shall require evidence that the guardian already possesses the requisite knowledge to serve as a guardian without completing the training.  When determining whether there is good cause to waive the training requirement, the court shall consider, among other facts about the guardianship, whether the guardian is a family member caring for another family member with a developmental disability whose estate is worth three thousand dollars or less; the length of time the guardian has been serving the incapacitated person; whether the guardian has timely filed all required reports with the court; whether the guardian is monitored by other state or local agencies; and whether there have been any allegations of abuse, neglect, or a breach of fiduciary duty against the guardian; or (II) extend the time period for completion of the training requirement for ninety days; and
      (j) Evidence of the guardian or limited guardian's successful completion of any additional or updated training video or web cast offered by the administrative office of the courts and the superior court as is required at the discretion of the superior court unless the guardian or limited guardian is a certified professional guardian or financial institution authorized under RCW 11.88.020.  The training video or web cast must be provided at no cost to the guardian or limited guardian.

      (3) To report to the court within thirty days any substantial change in the incapacitated person's condition, or any changes in residence of the incapacitated person.

      (4) Consistent with the powers granted by the court, to care for and maintain the incapacitated person in the setting least restrictive to the incapacitated person's freedom and appropriate to the incapacitated person's personal care needs, assert the incapacitated person's rights and best interests, and if the incapacitated person is a minor or where otherwise appropriate, to see that the incapacitated person receives appropriate training and education and that the incapacitated person has the opportunity to learn a trade, occupation, or profession.

      (5) Consistent with RCW 7.70.065, to provide timely, informed consent for health care of the incapacitated person, except in the case of a limited guardian where such power is not expressly provided for in the order of appointment or subsequent modifying order as provided in RCW 11.88.125 as now or hereafter amended, the standby guardian or standby limited guardian may provide timely, informed consent to necessary medical procedures if the guardian or limited guardian cannot be located within four hours after the need for such consent arises.  No guardian, limited guardian, or standby guardian may involuntarily commit for mental health treatment, observation, or evaluation an alleged incapacitated person who is unable or unwilling to give informed consent to such commitment unless the procedures for involuntary commitment set forth in chapter 71.05 or 72.23 RCW are followed.  Nothing in this section shall be construed to allow a guardian, limited guardian, or standby guardian to consent to:

      (a) Therapy or other procedure which induces convulsion;

      (b) Surgery solely for the purpose of psychosurgery;

      (c) Other psychiatric or mental health procedures that restrict physical freedom of movement, or the rights set forth in RCW ((71.05.370)) 71.05.217.

      A guardian, limited guardian, or standby guardian who believes these procedures are necessary for the proper care and maintenance of the incapacitated person shall petition the court for an order unless the court has previously approved the procedure within the past thirty days.  The court may order the procedure only after an attorney is appointed in accordance with RCW 11.88.045 if no attorney has previously appeared, notice is given, and a hearing is held in accordance with RCW 11.88.040.

Sec. 4.  RCW 11.88.095 and 1995 c 297 s 5 are each amended to read as follows:

      (1) In determining the disposition of a petition for guardianship, the court's order shall be based upon findings as to the capacities, condition, and needs of the alleged incapacitated person, and shall not be based solely upon agreements made by the parties.

      (2) Every order appointing a full or limited guardian of the person or estate shall include:

      (a) Findings as to the capacities, condition, and needs of the alleged incapacitated person;

      (b) The amount of the bond, if any, or a bond review period;

      (c) ((When the next report of the guardian is due;
      (d))) The date the account or report shall be filed.  The date of filing an account or report shall be within ninety days after the anniversary date of the appointment;
      (d) A directive to the clerk of court to issue letters of guardianship;
      (e) Whether the guardian ad litem shall continue acting as guardian ad litem;

      (((e))) (f) Whether a review hearing shall be required upon the filing of the inventory;

      (((f))) (g) Whether a review hearing is required upon filing the initial personal care plan;
      (h) The authority of the guardian, if any, for investment and expenditure of the ward's estate; ((and
      (g))) (i) Names and addresses of those persons described in RCW 11.88.090(5)(d), if any, whom the court believes should receive copies of further pleadings filed by the guardian with respect to the guardianship.  The guardian, within ninety days from the date of the appointment, shall, in writing, notify the persons identified by the court of their right to request special notice of proceedings as described in RCW 11.92.150; and
      (j) A guardianship summary placed directly below the case caption or on a separate cover page in the following form, or a substantially similar form, containing the following information:

 

GUARDIANSHIP SUMMARY

 

Date Guardian Appointed:

     

Due Date for Report and
Accounting:


     

Date of Next Hearing

     

Bond Amount:

$   

Restricted Account
Agreements Required


     

Due Date for Inventory:

     

Due Date for Care Plan:

     

 



Incapacitated Person
(IP)

Guardian of:  [ ] Estate [ ]
Person

Name:

Name:

Address:

Address:

Phone:

Phone:

Facsimile:

Facsimile:

 

Interested Parties

Address

Relation to IP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      (3) If the court determines that a limited guardian should be appointed, the order shall specifically set forth the limits by either stating exceptions to the otherwise full authority of the guardian or by stating the specific authority of the guardian.

      (4) In determining the disposition of a petition for appointment of a guardian or limited guardian of the estate only, the court shall consider whether the alleged incapacitated person is capable of giving informed medical consent or of making other personal decisions and, if not, whether a guardian or limited guardian of the person of the alleged incapacitated person should be appointed for that purpose.

      (5) Unless otherwise ordered, any powers of attorney or durable powers of attorney shall be revoked upon appointment of a guardian or limited guardian of the estate.

      If there is an existing medical power of attorney, the court must make a specific finding of fact regarding the continued validity of that medical power of attorney before appointing a guardian or limited guardian for the person.

Sec. 5.  RCW 11.88.125 and 2008 c 6 s 805 are each amended to read as follows:

      (1) The person appointed by the court as either guardian or limited guardian of the person and/or estate of an incapacitated person((,)) shall file in writing with the court, within ninety days from the date of appointment, a notice designating a standby limited guardian or guardian to serve as limited guardian or guardian at the death or legal incapacity of the court-appointed guardian or limited guardian.  The notice shall state the name, address, zip code, and telephone number of the designated standby or limited guardian.  Notice of the guardian's designation of the standby guardian shall be given to the standby guardian, the incapacitated person and his or her spouse or domestic partner and adult children, any facility in which the incapacitated person resides, and any person entitled to special notice under RCW 11.92.150 or any person entitled to receive pleadings pursuant to RCW 11.88.095(2)(((g))) (i).  Such standby guardian or limited guardian shall have all the powers, duties, and obligations of the regularly appointed guardian or limited guardian and in addition shall, within a period of thirty days from the death or adjudication of incapacity of the regularly appointed guardian or limited guardian, file with the superior court in the county in which the guardianship or limited guardianship is then being administered, a petition for appointment of a substitute guardian or limited guardian.  Upon the court's appointment of a new, substitute guardian or limited guardian, the standby guardian or limited guardian shall make an accounting and report to be approved by the court, and upon approval of the court, the standby guardian or limited guardian shall be released from all duties and obligations arising from or out of the guardianship or limited guardianship.

      (2) Letters of guardianship shall be issued to the standby guardian or limited guardian upon filing an oath and posting a bond as required by RCW 11.88.100 as now or hereafter amended.  The oath may be filed prior to the appointed guardian or limited guardian's death.  Notice of such appointment shall be provided to the standby guardian, the incapacitated person, and any facility in which the incapacitated person resides.  The provisions of RCW 11.88.100 through 11.88.110 as now or hereafter amended shall apply to standby guardians and limited guardians.

      (3) In addition to the powers of a standby limited guardian or guardian as noted in subsection (1) of this section, the standby limited guardian or guardian shall have the authority to provide timely, informed consent to necessary medical procedures, as authorized in RCW 11.92.040 as now or hereafter amended, if the guardian or limited guardian cannot be located within four hours after the need for such consent arises.

NEW SECTION.  Sec. 6.  A new section is added to chapter 11.88 RCW to read as follows:

      A guardian or limited guardian may not act on behalf of the incapacitated person without valid letters of guardianship.  Upon appointment and fulfilling all legal requirements to serve, as set forth in the court's order, the clerk shall issue letters of guardianship to a guardian or limited guardian appointed by the court in the following form, or a substantially similar form:

 

IN THE SUPERIOR COURT OF THE

STATE OF WASHINGTON IN AND FOR THE

COUNTY OF  . . . . . . . . .

 

IN THE MATTER OF

THE

GUARDIANSHIP OF

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

Guardianship Cause No.

 . . . . . . . .

Incapacitated Person

LETTERS OF

GUARDIANSHIP OR LIMITED

GUARDIANSHIP

 

THESE LETTERS OF GUARDIANSHIP PROVIDE OFFICIAL VERIFICATION OF THE FOLLOWING:

 

On the . . . . . . . . . day of . . . . . . . ., 20 . . . . the Court appointed . . . . . . . . . . .to serve as:

 

Guardian of the Person              Full             Limited

Guardian of the Estate               Full             Limited

 

for . . . . . . . . . . . ., the incapacitated person, in the above referenced matter.

 

      The Guardian has fulfilled all legal requirements to serve, including, but not limited to:  Taking and filing the oath;

filing any bond consistent with the court's order; filing any blocked account agreement consistent with the court's order;

and appointing a resident agent for a nonresident guardian.

 

      The Court, having found the Guardian duly qualified, now makes it known . . . . . . . . . is authorized as the Guardian

for . . . . . . . . . . . . . . designated in the Court's order as referenced above.

 

      The next filing and reporting deadline in this matter is on the . . . day of . . . . . . ., . . . . . ..

      This matter is before the Honorable . . . . . . . . of Superior Court, the seal of the Court being affixed

this . . . . of . . . . . . . ..

 

 

State of Washington)

 

           ) ss.

 

 

County of . . . . . . . . . )

 

      I, . . . . . . . ., Clerk of the Superior Court of said County and State, certify that this document represents true and

correct Letters of Guardianship in the above entitled case, entered upon the record on this . . . . . . .  day of . . . . . ., . . . ..

 

      The seal of Superior Court has been affixed and witnessed by my hand this . . . . . . . day of . . . . . . . . ., . . . ..

 

 

      . . . . . . . . . ., Clerk of Superior Court

 

      By . . . . . . . . ., Deputy

 

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

      (Signature of Deputy)

Sec. 7.  RCW 11.88.140 and 1991 c 289 s 9 are each amended to read as follows:

      (1) TERMINATION WITHOUT COURT ORDER.  A guardianship or limited guardianship is terminated:

      (a) Upon the attainment of full and legal age, as defined in RCW 26.28.010 as now or hereafter amended, of any person defined as an incapacitated person pursuant to RCW 11.88.010 as now or hereafter amended solely by reason of youth, RCW 26.28.020 to the contrary notwithstanding, subject to subsection (2) of this section;

      (b) By an adjudication of capacity or an adjudication of termination of incapacity;

      (c) By the death of the incapacitated person;

      (d) By expiration of the term of limited guardianship specified in the order appointing the limited guardian, unless prior to such expiration a petition has been filed and served, as provided in RCW 11.88.040 as now or hereafter amended, seeking an extension of such term.

      (2) TERMINATION OF GUARDIANSHIP FOR A MINOR BY DECLARATION OF COMPLETION.  A guardianship for the benefit of a minor may be terminated upon the minor's attainment of legal age, as defined in RCW 26.28.010 as now or hereafter amended, by the guardian filing a declaration that states:

      (a) The date the minor attained legal age;

      (b) That the guardian has paid all of the minor's funds in the guardian's possession to the minor, who has signed a receipt for the funds, and that the receipt has been filed with the court;

      (c) That the guardian has completed the administration of the minor's estate and the guardianship is ready to be closed; and

      (d) The amount of fees paid or to be paid to each of the following:  (i) The guardian, (ii) lawyer or lawyers, (iii) accountant or accountants; and that the guardian believes the fees are reasonable and does not intend to obtain court approval of the amount of the fees or to submit a guardianship accounting to the court for approval.  Subject to the requirement of notice as provided in this section, unless the minor petitions the court either for an order requiring the guardian to obtain court approval of the amount of fees paid or to be paid to the guardian, lawyers, or accountants, or for an order requiring an accounting, or both, within thirty days from the filing of the declaration of completion of guardianship, the guardian shall be automatically discharged without further order of the court.  The guardian's powers will cease thirty days after filing the declaration of completion of guardianship.  The declaration of completion of guardianship shall, at the time, be the equivalent of an entry of a decree terminating the guardianship, distributing the assets, and discharging the guardian for all legal intents and purposes.

      Within five days of the date of filing the declaration of completion of guardianship, the guardian or the guardian's lawyer shall mail a copy of the declaration of completion to the minor together with a notice that shall be substantially as follows:

 


CAPTION OF CASE

NOTICE OF FILING A

DECLARATION OF

COMPLETION OF

GUARDIANSHIP

 

      NOTICE IS GIVEN that the attached Declaration of

Completion of Guardianship was filed by the undersigned

in the above-entitled court on the  . . . . . . day of  . . . . . .,

19 . . .; unless you file a petition in the above-entitled court

requesting the court to review the reasonableness of the

fees, or for an accounting, or both, and serve a copy of the

petition on the guardian or the guardian's lawyer, within

thirty days after the filing date, the amount of fees paid or

to be paid will be deemed reasonable, the acts of the

guardian will be deemed approved, the guardian will be

automatically discharged without further order of the court

and the Declaration of Completion of Guardianship will be

final and deemed the equivalent of an order terminating the

guardianship, discharging the guardian and decreeing the

distribution of the guardianship assets.

      If you file and serve a petition within the period

specified, the undersigned will request the court to fix a

time and place for the hearing of your petition, and you will

be notified of the time and place of the hearing, by mail, or

by personal service, not less than ten days before the

hearing on the petition.

 

      DATED this  . . . . . . day of  . . . . . ., 19 . . .

 

     

 

Guardian



      If the minor, after reaching legal age, waives in writing the notice required by this section, the guardian will be automatically discharged without further order of the court and the declaration of completion of guardianship will be effective as an order terminating the guardianship without an accounting upon filing the declaration.  If the guardian has been required to furnish a bond, and a declaration of completion of guardianship is filed according to this section, any bond furnished by the guardian shall be automatically discharged upon the discharge of the guardian.

      (3) TERMINATION ON COURT ORDER.  A guardianship or limited guardianship may be terminated by court order after such notice as the court may require if the guardianship or limited guardianship is no longer necessary.

      The guardian or limited guardian shall, within ((thirty)) ninety days of the date of termination of the guardianship, unless the court orders a different deadline for good cause, prepare and file with the court a final verified account of administration.  The final verified account of administration shall contain the same information as required for (a) an intermediate verified account of administration of the estate under RCW 11.92.040(2) and (b) an intermediate personal care status report under RCW 11.92.043(2).

      (4) EFFECT OF TERMINATION.  When a guardianship or limited guardianship terminates other than by the death of the incapacitated person, the powers of the guardian or limited guardian cease, except that a guardian or limited guardian of the estate may make disbursements for claims that are or may be allowed by the court, for liabilities already properly incurred for the estate or for the incapacitated person, and for expenses of administration.  When a guardianship or limited guardianship terminates by death of the incapacitated person, the guardian or limited guardian of the estate may proceed under RCW 11.88.150 as now or hereafter amended, but the rights of all creditors against the incapacitated person's estate shall be determined by the law of decedents' estates.

Sec. 8.  RCW 11.92.053 and 1995 c 297 s 7 are each amended to read as follows:

      Within ninety days, unless the court orders a different deadline for good cause, after the termination of a guardianship for any reason, the guardian or limited guardian of the estate shall petition the court for an order settling his or her account as filed in accordance with RCW 11.92.040(2) with regard to any receipts, expenditures, and investments made and acts done by the guardian to the date of the termination.  Upon the filing of the petition, the court shall set a date for the hearing of the petition after notice has been given in accordance with RCW 11.88.040.  Any person interested may file objections to the petition or may appear at the time and place fixed for the hearing thereof and present his or her objections thereto.  The court may take such testimony as it deems proper or necessary to determine whether an order settling the account should be issued and the transactions of the guardian be approved, and the court may appoint a guardian ad litem to review the report.

      At the hearing on the petition of the guardian or limited guardian, if the court is satisfied that the actions of the guardian or limited guardian have been proper, and that the guardian has in all respects discharged his or her trust with relation to the receipts, expenditures, investments, and acts, then, in such event, the court shall enter an order approving the account, and the order shall be final and binding upon the incapacitated person, subject only to the right of appeal as upon a final order.  However, within one year after the incompetent attains his or her majority any such account may be challenged by the incapacitated person on the ground of fraud.

Sec. 9.  RCW 11.92.040 and 1991 c 289 s 10 are each amended to read as follows:

      It shall be the duty of the guardian or limited guardian of an estate:

      (1) To file within three months after the guardian's appointment a verified inventory of all the property of the incapacitated person which comes into the guardian's possession or knowledge, including a statement of all encumbrances, liens, and other secured charges on any item;

      (2) To file annually, within ninety days after the anniversary date of the guardian's or limited guardian's appointment, and also within ((thirty)) ninety days after termination of the appointment, unless the court for good cause orders a different deadline to file following termination, a written verified account of the administration, which account shall contain at least the following information:

      (a) Identification of property of the guardianship estate as of the date of the last account or, in the case of the initial account, as of the date of inventory;

      (b) Identification of all additional property received into the guardianship, including income by source;

      (c) Identification of all expenditures made during the account period by major categories;

      (d) Any adjustments to the guardianship estate required to establish its present fair market value, including gains or losses on sale or other disposition and any mortgages, deeds of trust or other encumbrances against the guardianship estate; and

      (e) Identification of all property held in the guardianship estate as of the date of account, the assessed value of any real property and the guardian's estimate of the present fair market values of other property (including the basis on which such estimate is made), and the total net fair market value of the guardianship estate.  In addition, immediately following such statement of present fair market value, the account shall set forth a statement of current amount of the guardian's bond and any other court-ordered protection for the security of the guardianship assets;

      (3) The court in its discretion may allow reports at intervals of up to thirty-six months for estates with assets (exclusive of real property) having a value of not more than twice the homestead exemption.  Notwithstanding contrary provisions of this section, the guardian or limited guardian of an estate need not file an annual report with the court if the funds of the guardianship are held for the benefit of a minor in a blocked account unless the guardian requests a withdrawal from such account, in which case the guardian shall provide a written verified account of the administration of the guardianship estate along with the guardian's petition for the withdrawal.  The guardian or limited guardian shall report any substantial change in income or assets of the guardianship estate within thirty days of the occurrence of the change.  A hearing shall be scheduled for court review and determination of provision for increased bond or other provision in accordance with RCW 11.88.100;

      (4) If the court reviews an account or report filed by a guardian or limited guardian, a court order approving the account or report must contain a guardianship summary placed directly below the case caption or on a separate cover page in the following form, or a substantially similar form, containing the following information:

 

GUARDIANSHIP SUMMARY

 

Date Guardian Appointed:

     

Due Date for Report and
Accounting:


     

Date of Next Hearing:

     

Bond Amount:

$   

Restricted Account
Agreements Required


     

 

Incapacitated Person
(IP)

Guardian of:  [ ] Estate [ ] Person

Name:

Name:

Address:

Address:

Phone:

Phone:

Facsimile:

Facsimile:

 

Standby Guardian

Address

Relation to IP

 

 

 

 

Interested Parties

Address

Relation to IP

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(5) To protect and preserve the guardianship estate, to apply it as provided in this chapter, to account for it faithfully, to perform all of the duties required by law, and at the termination of the guardianship or limited guardianship, to deliver the assets of the incapacitated person to the persons entitled thereto.  Except as provided to the contrary herein, the court may authorize a guardian or limited guardian to do anything that a trustee can do under the provisions of RCW 11.98.070 for a period not exceeding one year from the date of the order or for a period corresponding to the interval in which the guardian's or limited guardian's report is required to be filed by the court pursuant to subsection (2) of this section, whichever period is longer;

      (((5))) (6) To invest and reinvest the property of the incapacitated person in accordance with the rules applicable to investment of trust estates by trustees as provided in chapter 11.100 RCW, except that:

      (a) No investments shall be made without prior order of the court in any property other than unconditional interest bearing obligations of this state or of the United States and in obligations the interest and principal of which are unconditionally guaranteed by the United States, and in share accounts or deposits which are insured by an agency of the United States government.  Such prior order of the court may authorize specific investments, or, in the discretion of the court, may authorize the guardian or limited guardian to invest and reinvest as provided in chapter 11.100 RCW without further order of the court;

      (b) If it is for the best interests of the incapacitated person that a specific property be used by the incapacitated person rather than sold and the proceeds invested, the court may so order;

      (((6))) (7) To apply to the court no later than the filing of the inventory for an order authorizing disbursements on behalf of the incapacitated person:  PROVIDED, HOWEVER, That the guardian or limited guardian of the estate, or the person, department, bureau, agency, or charitable organization having the care and custody of an incapacitated person, may apply to the court for an order directing the guardian or limited guardian of the estate to pay to the person, department, bureau, agency, or charitable organization having the care and custody of an incapacitated person, or if the guardian or limited guardian of the estate has the care and custody of the incapacitated person, directing the guardian or limited guardian of the estate to apply an amount weekly, monthly, quarterly, semi-annually, or annually, as the court may direct, to be expended in the care, maintenance, and education of the incapacitated person and of his or her dependents.  In proper cases, the court may order payment of amounts directly to the incapacitated person for his or her maintenance or incidental expenses.  The amounts authorized under this section may be decreased or increased from time to time by direction of the court.  If payments are made to another under an order of the court, the guardian or limited guardian of the estate is not bound to see to the application thereof;
      (8) To provide evidence of the guardian or limited guardian's successful completion of any standardized training video or web cast for guardians or limited guardians made available by the administrative office of the courts and the superior court when the guardian or limited guardian:  (a) Was appointed prior to July 24, 2011; (b) is not a certified professional guardian or financial institution authorized under RCW 11.88.020; and (c) has not previously completed the requirements of RCW 11.88.020(3).  The training video or web cast must be provided at no cost to the guardian or limited guardian.  The superior court may, upon (i) petition by the guardian or limited guardian; or (ii) any other method as provided by local court rule:  (A) For good cause, waive this requirement for guardians appointed prior to July 24, 2011.  Good cause shall require evidence that the guardian already possesses the requisite knowledge to serve as a guardian without completing the training.  When determining whether there is good cause to waive the training requirement, the court shall consider, among other facts about the guardianship, whether the guardian is a family member caring for another family member with a developmental disability whose estate is worth three thousand dollars or less; the length of time the guardian has been serving the incapacitated person; whether the guardian has timely filed all required reports with the court; whether the guardian is monitored by other state or local agencies; and whether there have been any allegations of abuse, neglect, or a breach of fiduciary duty against the guardian; or (B) extend the time period for completion of the training requirement for ninety days; and
      (9) To provide evidence of the guardian or limited guardian's successful completion of any additional or updated training video or web cast offered by the administrative office of the courts and the superior court as is required at the discretion of the superior court unless the guardian or limited guardian is a certified professional guardian or financial institution authorized under RCW 11.88.020.  The training video or web cast must be provided at no cost to the guardian or limited guardian.

Sec. 10.  RCW 11.92.050 and 1995 c 297 s 6 are each amended to read as follows:

      (1) Upon the filing of any intermediate guardianship or limited guardianship account or report required by statute, or of any intermediate account or report required by court rule or order, the guardian or limited guardian may petition the court for an order settling ((his or her)) the guardianship account or report with regard to any receipts, expenditures, and investments made and acts done by the guardian or limited guardian to the date of the interim report.
      (2) Upon such ((petition)) account or report being filed, the court may in its discretion, where the size or condition of the estate warrants it, set a date for the hearing of the petition and require the service of the petition and a notice of the hearing as provided in RCW 11.88.040 as now or hereafter amended or as specified by the court; and, in the event a hearing is ordered, the court may also appoint a guardian ad litem, whose duty it shall be to investigate the account or report of the guardian or limited guardian of the estate and to advise the court thereon at the hearing, in writing.

(3) At the hearing on or upon the court's review of the account or report of the guardian or limited guardian, if the court is satisfied that the actions of the guardian or limited guardian have been proper, and that the guardian or limited guardian has in all respects discharged his or her trust with relation to the receipts, expenditures, investments, and acts, then, in such event, the court shall enter an order approving such account or report.

(4) If a guardian or limited guardian fails to file the account or report or fails to appear at a hearing, the court may enter an order to show cause and require the guardian or limited guardian to appear at a show cause hearing.  At the show cause hearing the court may enter an order for one or more of the following actions:
      (a) Directing the guardian or limited guardian to appear before the court subject to contempt sanctions;
      (b) Appointing a guardian ad litem;
      (c) Removing the guardian or limited guardian and appointing a successor;
      (d) Requiring the completion of any approved guardianship training made available to the guardian by the court; or
      (e) Providing other and further relief the court deems just and equitable.
      (5) If the court has appointed a guardian ad litem, the order shall be final and binding upon the incapacitated person, subject only to the right of appeal as upon a final order; provided that at the time of final account of said guardian or limited guardian or within one year after the incapacitated person attains his or her majority any such interim account may be challenged by the incapacitated person on the ground of fraud.

      (((2))) (6) The procedure established in ((subsection (1) of)) this section for financial accounts by guardians or limited guardians of the estate shall apply to personal care reports filed by guardians or limited guardians of the person under RCW 11.92.043."

      On page 1, line 3 of the title, after "force;" strike the remainder of the title and insert "amending RCW 11.88.020, 11.88.030, 11.92.043, 11.88.095, 11.88.125, 11.88.140, 11.92.053, 11.92.040, and 11.92.050; and adding a new section to chapter 11.88 RCW."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

SENATE AMENDMENT TO HOUSE BILL

 

                There being no objection, the House refused to concur in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1053 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 1, 2011

Mr. Speaker:

 

                The Senate has passed SUBSTITUTE HOUSE BILL NO. 1081   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  (1) The legislature finds a growing interest in small scale renewable energy systems for the provision of electricity to homes and farms.

      (2) While many local governments are interested in helping homeowners and farmers achieve energy self-sufficiency, the legislature finds that most local governments have little or no experience in siting and permitting these small scale renewable energy systems.

      (3) The legislature finds that some small scale renewable energy systems may not be appropriate for certain locations and may at times face opposition from neighbors and the community.

      (4) Therefore, the legislature finds a need for cities and counties to have technical assistance, model ordinances, and development regulations to assist them with the siting and permitting of small scale renewable energy systems.

NEW SECTION.  Sec. 2.  A new section is added to chapter 36.70A RCW to read as follows:

      (1) The department, in consultation with the Washington State University extension energy program and statewide county and city organizations, must recommend a range of model ordinances, all of which are to assist cities and counties in siting and permitting small scale renewable energy systems.  The recommendations must take into consideration the size of an energy system, its generating capacity, and its appropriateness for small urban, large urban, suburban, and rural communities.

      (2) Counties or cities without ordinances to site small scale renewable energy systems, must adopt an ordinance, considering the recommendations developed by the department.  However, any recommended ordinance may be tailored to meet local circumstances as long as the generating capacity threshold is met.  An ordinance adopted under this subsection may be done concurrently with the scheduled updates provided in RCW 36.70A.130.

      (a) A county is not required to adopt ordinances under this section for any facilities with a generating capacity greater than three and one-half kilowatts within residential areas.

      (b) A county is required to adopt ordinances under this section for wind facilities with a generating capacity greater than three and one-half kilowatts and not more than five megawatts on agricultural and forest lands.

      (c) A city is not required to adopt ordinances under this section for any facilities with a generating capacity greater than three and one-half kilowatts.

      (d) No petition alleging noncompliance with this section may be heard under RCW 36.70A.280.

      (3) For the purposes of this section, "small scale renewable energy systems" means:  (a) A wind facility with a generating capacity of not more than five megawatts; and (b) any facility that meets the definition of a "net metering system" under RCW 80.60.010, except facilities that use biomass as a fuel.

NEW SECTION.  Sec. 3.  By December 31, 2012, the department of commerce must do the following with its recommendations developed under section 2 of this act:  (1) Report the recommendations to the appropriate committees of the legislature; and (2) make the recommendations available for counties, cities, and statewide city and county organizations.

NEW SECTION.  Sec. 4.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2011, in the omnibus appropriations act, this act is null and void."

On page 1, line 1 of the title, after "siting;" strike the remainder of the title and insert "adding a new section to chapter 36.70A RCW; and creating new sections."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House refused to concur in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1081 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

March 29, 2011

Mr. Speaker:

 

                The Senate has passed HOUSE BILL NO. 1229   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 46.25.010 and 2009 c 181 s 2 are each amended to read as follows:

      The definitions set forth in this section apply throughout this chapter.

      (1) "Alcohol" means any substance containing any form of alcohol, including but not limited to ethanol, methanol, propanol, and isopropanol.

      (2) "Alcohol concentration" means:

      (a) The number of grams of alcohol per one hundred milliliters of blood; or

      (b) The number of grams of alcohol per two hundred ten liters of breath.

      (3) "Commercial driver's license" (CDL) means a license issued to an individual under chapter 46.20 RCW that has been endorsed in accordance with the requirements of this chapter to authorize the individual to drive a class of commercial motor vehicle.

      (4) The "commercial driver's license information system" (CDLIS) is the information system established pursuant to ((the CMVSA)) 49 U.S.C. Sec. 31309 to serve as a clearinghouse for locating information related to the licensing and identification of commercial motor vehicle drivers.

      (5) "Commercial driver's instruction permit" means a permit issued under RCW 46.25.060(5).

      (6) "Commercial motor vehicle" means a motor vehicle or combination of motor vehicles used in commerce to transport passengers or property if the motor vehicle:

      (a) Has a gross vehicle weight rating of 11,794 kilograms or more (26,001 pounds or more) inclusive of a towed unit with a gross vehicle weight rating of more than 4,536 kilograms (10,000 pounds or more); or

      (b) Has a gross vehicle weight rating of 11,794 kilograms or more (26,001 pounds or more); or

      (c) Is designed to transport sixteen or more passengers, including the driver; or

      (d) Is of any size and is used in the transportation of hazardous materials as defined in this section; or

      (e) Is a school bus regardless of weight or size.

      (7) "Conviction" means an unvacated adjudication of guilt, or a determination that a person has violated or failed to comply with the law in a court of original jurisdiction or by an authorized administrative tribunal, an unvacated forfeiture of bail or collateral deposited to secure the person's appearance in court, a plea of guilty or nolo contendere accepted by the court, the payment of a fine or court cost, entry into a deferred prosecution program under chapter 10.05 RCW, or violation of a condition of release without bail, regardless of whether or not the penalty is rebated, suspended, or probated.

      (8) "Disqualification" means a prohibition against driving a commercial motor vehicle.

      (9) "Drive" means to drive, operate, or be in physical control of a motor vehicle in any place open to the general public for purposes of vehicular traffic.  For purposes of RCW 46.25.100, 46.25.110, and 46.25.120, "drive" includes operation or physical control of a motor vehicle anywhere in the state.

      (10) "Drugs" are those substances as defined by RCW 69.04.009, including, but not limited to, those substances defined by 49 C.F.R. Sec. 40.3.

      (11) "Employer" means any person, including the United States, a state, or a political subdivision of a state, who owns or leases a commercial motor vehicle, or assigns a person to drive a commercial motor vehicle.

      (12) "Gross vehicle weight rating" (GVWR) means the value specified by the manufacturer as the maximum loaded weight of a single vehicle.  The GVWR of a combination or articulated vehicle, commonly referred to as the "gross combined weight rating" or GCWR, is the GVWR of the power unit plus the GVWR of the towed unit or units.  If the GVWR of any unit cannot be determined, the actual gross weight will be used.  If a vehicle with a GVWR of less than 11,794 kilograms (26,001 pounds or less) has been structurally modified to carry a heavier load, then the actual gross weight capacity of the modified vehicle, as determined by RCW 46.44.041 and 46.44.042, will be used as the GVWR.

      (13) "Hazardous materials" means any material that has been designated as hazardous under 49 U.S.C. Sec. 5103 and is required to be placarded under subpart F of 49 C.F.R. Part 172 or any quantity of a material listed as a select agent or toxin in 42 C.F.R. Part 73.

      (14) "Motor vehicle" means a vehicle, machine, tractor, trailer, or semitrailer propelled or drawn by mechanical power used on highways, or any other vehicle required to be registered under the laws of this state, but does not include a vehicle, machine, tractor, trailer, or semitrailer operated exclusively on a rail.

      (15) "Out-of-service order" means a declaration by an authorized enforcement officer of a federal, state, Canadian, Mexican, or local jurisdiction that a driver, a commercial motor vehicle, or a motor carrier operation is out‑of‑service pursuant to 49 C.F.R. Secs. 386.72, 392.5, 395.13, 396.9, or compatible laws, or the North American uniform out‑of‑service criteria.

      (16) "Positive alcohol confirmation test" means an alcohol confirmation test that:

      (a) Has been conducted by a breath alcohol technician under 49 C.F.R. Part 40; and

      (b) Indicates an alcohol concentration of 0.04 or more.

      A report that a person has refused an alcohol test, under circumstances that constitute the refusal of an alcohol test under 49 C.F.R. Part 40, will be considered equivalent to a report of a positive alcohol confirmation test for the purposes of this chapter.

      (17) "School bus" means a commercial motor vehicle used to transport preprimary, primary, or secondary school students from home to school, from school to home, or to and from school-sponsored events.  School bus does not include a bus used as a common carrier.

      (18) "Serious traffic violation" means:

      (a) Excessive speeding, defined as fifteen miles per hour or more in excess of the posted limit;

      (b) Reckless driving, as defined under state or local law;

      (c) A violation of a state or local law relating to motor vehicle traffic control, other than a parking violation, arising in connection with an accident or collision resulting in death to any person;

      (d) Driving a commercial motor vehicle without obtaining a commercial driver's license;

      (e) Driving a commercial motor vehicle without a commercial driver's license in the driver's possession; however, any individual who provides proof to the court by the date the individual must appear in court or pay any fine for such a violation, that the individual held a valid CDL on the date the citation was issued, is not guilty of a "serious traffic offense";

      (f) Driving a commercial motor vehicle without the proper class of commercial driver's license endorsement or endorsements for the specific vehicle group being operated or for the passenger or type of cargo being transported; and

      (g) Any other violation of a state or local law relating to motor vehicle traffic control, other than a parking violation, that the department determines by rule to be serious.

      (19) "State" means a state of the United States and the District of Columbia.

      (20) "Substance abuse professional" means an alcohol and drug specialist meeting the credentials, knowledge, training, and continuing education requirements of 49 C.F.R. Sec. 40.281.

      (21) "Tank vehicle" means a vehicle that is designed to transport a liquid or gaseous material within a tank that is either permanently or temporarily attached to the vehicle or the chassis.  Tank vehicles include, but are not limited to cargo tanks and portable tanks.  However, this definition does not include portable tanks having a rated capacity under one thousand gallons.

      (22) "Type of driving" means one of the following:
      (a) "Nonexcepted interstate," which means the CDL holder or applicant operates or expects to operate in interstate commerce, is both subject to and meets the qualification requirements under 49 C.F.R. Part 391 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, and is required to obtain a medical examiner's certificate under 49 C.F.R. Sec. 391.45 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section;
      (b) "Excepted interstate," which means the CDL holder or applicant operates or expects to operate in interstate commerce, but engages exclusively in transportation or operations excepted under 49 C.F.R. Secs. 390.3(f), 391.2, 391.68, or 398.3, as they existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, from all or parts of the qualification requirements of 49 C.F.R. Part 391 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section, and is therefore not required to obtain a medical examiner's certificate under 49 C.F.R. Sec. 391.45 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section;
      (c) "Nonexcepted intrastate," which means the CDL holder or applicant operates only in intrastate commerce and is therefore subject to state driver qualification requirements; or
      (d) "Excepted intrastate," which means the CDL holder or applicant operates in intrastate commerce, but engages exclusively in transportation or operations excepted from all or parts of the state driver qualification requirements.
      (23) "United States" means the fifty states and the District of Columbia.

      (((23))) (24) "Verified positive drug test" means a drug test result or validity testing result from a laboratory certified under the authority of the federal department of health and human services that:

      (a) Indicates a drug concentration at or above the cutoff concentration established under 49 C.F.R. Sec. 40.87; and

      (b) Has undergone review and final determination by a medical review officer.

      A report that a person has refused a drug test, under circumstances that constitute the refusal of a federal department of transportation drug test under 49 C.F.R. Part 40, will be considered equivalent to a report of a verified positive drug test for the purposes of this chapter.

Sec. 2.  RCW 46.25.080 and 2004 c 249 s 8 and 2004 c 187 s 5 are each reenacted and amended to read as follows:

      (1) The commercial driver's license must be marked "commercial driver's license" or "CDL," and must be, to the maximum extent practicable, tamperproof.  It must include, but not be limited to, the following information:

      (a) The name and residence address of the person;

      (b) The person's color photograph;

      (c) A physical description of the person including sex, height, weight, and eye color;

      (d) Date of birth;

      (e) The person's social security number or any number or identifier deemed appropriate by the department;

      (f) The person's signature;

      (g) The class or type of commercial motor vehicle or vehicles that the person is authorized to drive, together with any endorsements or restrictions;

      (h) The name of the state; and

      (i) The dates between which the license is valid.

      (2) Commercial driver's licenses may be issued with the classifications, endorsements, and restrictions set forth in this subsection.  The holder of a valid commercial driver's license may drive all vehicles in the class for which that license is issued and all lesser classes of vehicles except motorcycles and vehicles that require an endorsement, unless the proper endorsement appears on the license.

      (a) Licenses may be classified as follows:

      (i) Class A is a combination of vehicles with a gross combined weight rating (GCWR) of 26,001 pounds or more, if the GVWR of the vehicle or vehicles being towed is in excess of 10,000 pounds.

      (ii) Class B is a single vehicle with a GVWR of 26,001 pounds or more, and any such vehicle towing a vehicle not in excess of 10,000 pounds.

      (iii) Class C is a single vehicle with a GVWR of less than 26,001 pounds or any such vehicle towing a vehicle with a GVWR not in excess of 10,000 pounds consisting of:

      (A) Vehicles designed to transport sixteen or more passengers, including the driver; or

      (B) Vehicles used in the transportation of hazardous materials.

      (b) The following endorsements and restrictions may be placed on a license:

      (i) "H" authorizes the driver to drive a vehicle transporting hazardous materials.

      (ii) "K" restricts the driver to vehicles not equipped with air brakes.

      (iii) "T" authorizes driving double and triple trailers.

      (iv) "P1" authorizes driving all vehicles, other than school buses, carrying passengers.

      (v) "P2" authorizes driving vehicles with a GVWR of less than 26,001 pounds, other than school buses, carrying sixteen or more passengers, including the driver.

      (vi) "N" authorizes driving tank vehicles.

      (vii) "X" represents a combination of hazardous materials and tank vehicle endorsements.

      (viii) "S" authorizes driving school buses.

(ix) "V" means that the driver has been issued a medical variance.

      The license may be issued with additional endorsements and restrictions as established by rule of the director.

      (3) All school bus drivers must have either a "P1" or "P2" endorsement depending on the GVWR of the school bus being driven.

      (4) Before issuing a commercial driver's license, the department shall obtain driving record information:

      (a) Through the commercial driver's license information system;

      (b) Through the national driver register;

      (c) From the current state of record; and

      (d) From all states where the applicant was previously licensed over the last ten years to drive any type of motor vehicle.

      A check under (d) of this subsection need be done only once, either at the time of application for a new commercial driver's license, or upon application for a renewal of a commercial driver's license for the first time after July 1, 2005, provided a notation is made on the driver's record confirming that the driving record check has been made and noting the date it was completed.

      (5) Within ten days after issuing a commercial driver's license, the department must notify the commercial driver's license information system of ((that fact,)) the information required under 49 C.F.R. Sec. 383.73 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section and provide all information required to ensure identification of the person.

      (6) A commercial driver's license shall expire in the same manner as provided in RCW 46.20.181.

      (7) When applying for renewal of a commercial driver's license, the applicant shall:

      (a) Complete the application form required by RCW 46.25.070(1), providing updated information and required certifications;

      (b) Submit the application to the department in person; and

      (c) If the applicant wishes to retain a hazardous materials endorsement, take and pass the written test for a hazardous materials endorsement.

NEW SECTION.  Sec. 3.  A new section is added to chapter 46.25 RCW to read as follows:

      (1)(a) Any person applying for a CDL must certify that he or she is or expects to be engaged in one of the following types of driving:

      (i) Nonexcepted interstate;

      (ii) Excepted interstate;

      (iii) Nonexcepted intrastate; or

      (iv) Excepted intrastate.

      (b) From January 30, 2012, to January 30, 2014, the department may require that any person holding a CDL prior to the effective date of this section must provide the department with the certification required under (a) of this subsection.  The CDL of a person failing to submit the required certification is subject to downgrade under subsection (4) of this section.

      (2) A CDL applicant or holder who certifies under subsection (1)(a)(i) of this section that he or she is or expects to be engaged in nonexcepted interstate commerce must provide a copy of a medical examiner's certificate prepared by a medical examiner, as defined in 49 C.F.R. Sec. 390.5 as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section.  Upon submission, a copy of the medical examiner's certificate must be date-stamped by the department.  A CDL holder who certifies under subsection (1)(a)(i) of this section must submit a copy of each subsequently issued medical examiner's certificate.

      (3) For each operator of a commercial motor vehicle required to have a commercial driver's license, the department must meet the following requirements:

      (a)(i) The driver's self-certification of type of driving under subsection (1) of this section must be maintained on the driver's record and the CDLIS driver record;

      (ii) The copy of a medical examiner's certificate, when submitted under subsection (2) of this section, must by retained for three years beyond the date the certificate was issued; and

      (iii) When a medical examiner's certificate is submitted under subsection (2) of this section, the information required under 49 C.F.R. Sec. 383.73(j)(1)(iii) as it existed on the effective date of this section, or such subsequent date as may be provided by the department by rule, consistent with the purposes of this section must be posted to the CDLIS driver record within ten calendar days from the date submitted.  The indicator of medical certification status, such as "certified" or "not-certified," must be maintained on the driver's record.

      (b) Within ten calendar days of the driver's medical certification status expiring or a medical variance expiring or being rescinded, the medical certification status of the driver must be updated to "not- certified."

      (c) Within ten calendar days of receiving information from the federal motor carrier safety administration regarding issuance or renewal of a medical variance for a driver, the department must update the CDLIS driver record to include the medical variance information.

      (4)(a) If a driver's medical certification or medical variance expires, or the federal motor carrier safety administration notifies the department that a medical variance was removed or rescinded, the department must:

      (i) Notify the driver of his or her "not-certified" medical certification status and that the CDL privilege will be removed from the driver's license unless the driver submits a current medical certificate or medical variance, or changes his or her self- certification to driving only in excepted or intrastate commerce; and

      (ii) Initiate procedures for downgrading the license.  The CDL downgrade must be completed and recorded within sixty days of the driver's medical certification status becoming "not-certified" to operate a commercial motor vehicle.

      (b) Beginning January 30, 2014, if a driver fails to provide the department with the certification required in subsection (1) of this section, or a current medical examiner's certificate if the driver self-certifies under subsection (1)(a)(i) of this section that he or she is operating in nonexcepted interstate commerce as required in subsection (2) of this section, the department must mark the CDLIS driver record as "not-certified" and initiate a CDL downgrade in accordance with (a)(ii) of this subsection.

      (c) A driver whose CDL has been downgraded under this subsection may restore the CDL privilege by providing the necessary certifications or medical variance information to the department.

Sec. 4.  RCW 46.25.090 and 2006 c 327 s 4 are each amended to read as follows:

      (1) A person is disqualified from driving a commercial motor vehicle for a period of not less than one year if a report has been received by the department pursuant to RCW 46.20.308 or 46.25.120, or if the person has been convicted of a first violation, within this or any other jurisdiction, of:

      (a) Driving a motor vehicle under the influence of alcohol or any drug;

      (b) Driving a commercial motor vehicle while the alcohol concentration in the person's system is 0.04 or more, or driving a noncommercial motor vehicle while the alcohol concentration in the person's system is 0.08 or more, or is 0.02 or more if the person is under age twenty‑one, as determined by any testing methods approved by law in this state or any other state or jurisdiction;

      (c) Leaving the scene of an accident involving a motor vehicle driven by the person;

      (d) Using a motor vehicle in the commission of a felony;

      (e) Refusing to submit to a test or tests to determine the driver's alcohol concentration or the presence of any drug while driving a motor vehicle;

      (f) Driving a commercial motor vehicle when, as a result of prior violations committed while operating a commercial motor vehicle, the driver's commercial driver's license is revoked, suspended, or canceled, or the driver is disqualified from operating a commercial motor vehicle;

      (g) Causing a fatality through the negligent operation of a commercial motor vehicle, including but not limited to the crimes of vehicular homicide and negligent homicide.

      If any of the violations set forth in this subsection occurred while transporting hazardous material, the person is disqualified for a period of not less than three years.

      (2) A person is disqualified for life if it has been determined that the person has committed or has been convicted of two or more violations of any of the offenses specified in subsection (1) of this section, or any combination of those offenses, arising from two or more separate incidents.

      (3) The department may adopt rules, in accordance with federal regulations, establishing guidelines, including conditions, under which a disqualification for life under subsection (2) of this section may be reduced to a period of not less than ten years.

      (4) A person is disqualified from driving a commercial motor vehicle for life who uses a motor vehicle in the commission of a felony involving the manufacture, distribution, or dispensing of a controlled substance, as defined by chapter 69.50 RCW, or possession with intent to manufacture, distribute, or dispense a controlled substance, as defined by chapter 69.50 RCW.

      (5)(a) A person is disqualified from driving a commercial motor vehicle for a period of:

      (i) Not less than sixty days if:

      (A) Convicted of or found to have committed a second serious traffic violation while driving a commercial motor vehicle; or

      (B) Convicted of reckless driving, where there has been a prior serious traffic violation; or

      (ii) Not less than one hundred twenty days if:

      (A) Convicted of or found to have committed a third or subsequent serious traffic violation while driving a commercial motor vehicle; or

      (B) Convicted of reckless driving, where there has been two or more prior serious traffic violations.

      (b) The disqualification period under (a)(ii) of this subsection must be in addition to any other previous period of disqualification.

      (c) For purposes of determining prior serious traffic violations under this subsection, each conviction of or finding that a driver has committed a serious traffic violation while driving a commercial motor vehicle or noncommercial motor vehicle, arising from a separate incident occurring within a three-year period, must be counted.

      (6) A person is disqualified from driving a commercial motor vehicle for a period of:

      (a) Not less than ((ninety)) one hundred eighty days nor more than one year if convicted of or found to have committed a first violation of an out-of-service order while driving a commercial vehicle;

      (b) Not less than ((one)) two years nor more than five years if, during a ten-year period, the person is convicted of or is found to have committed two violations of out-of-service orders while driving a commercial motor vehicle in separate incidents;

      (c) Not less than three years nor more than five years if, during a ten-year period, the person is convicted of or is found to have committed three or more violations of out-of-service orders while driving commercial motor vehicles in separate incidents;

      (d) Not less than one hundred eighty days nor more than two years if the person is convicted of or is found to have committed a first violation of an out-of-service order while transporting hazardous materials, or while operating motor vehicles designed to transport sixteen or more passengers, including the driver.  A person is disqualified for a period of not less than three years nor more than five years if, during a ten-year period, the person is convicted of or is found to have committed subsequent violations of out-of-service orders, in separate incidents, while transporting hazardous materials, or while operating motor vehicles designed to transport sixteen or more passengers, including the driver.

      (7) A person is disqualified from driving a commercial motor vehicle if a report has been received by the department under RCW 46.25.125 that the person has received a verified positive drug test or positive alcohol confirmation test as part of the testing program conducted under 49 C.F.R. 40.  A disqualification under this subsection remains in effect until the person undergoes a drug and alcohol assessment by a substance abuse professional meeting the requirements of 49 C.F.R. 40, and the person presents evidence of satisfactory participation in or successful completion of a drug or alcohol treatment and/or education program as recommended by the substance abuse professional, and until the person has met the requirements of RCW 46.25.100.  The substance abuse professional shall forward a diagnostic evaluation and treatment recommendation to the department of licensing for use in determining the person's eligibility for driving a commercial motor vehicle.  Persons who are disqualified under this subsection more than twice in a five-year period are disqualified for life.

      (8)(a) A person is disqualified from driving a commercial motor vehicle for the period of time specified in (b) of this subsection if he or she is convicted of or is found to have committed one of the following six offenses at a railroad-highway grade crossing while operating a commercial motor vehicle in violation of a federal, state, or local law or regulation:

      (i) For drivers who are not required to always stop, failing to slow down and check that the tracks are clear of an approaching train;

      (ii) For drivers who are not required to always stop, failing to stop before reaching the crossing, if the tracks are not clear;

      (iii) For drivers who are always required to stop, failing to stop before driving onto the crossing;

      (iv) For all drivers, failing to have sufficient space to drive completely through the crossing without stopping;

      (v) For all drivers, failing to obey a traffic control device or the directions of an enforcement officer at the crossing;

      (vi) For all drivers, failing to negotiate a crossing because of insufficient undercarriage clearance.

      (b) A person is disqualified from driving a commercial motor vehicle for a period of:

      (i) Not less than sixty days if the driver is convicted of or is found to have committed a first violation of a railroad-highway grade crossing violation;

      (ii) Not less than one hundred twenty days if the driver is convicted of or is found to have committed a second railroad-highway grade crossing violation in separate incidents within a three-year period;

      (iii) Not less than one year if the driver is convicted of or is found to have committed a third or subsequent railroad-highway grade crossing violation in separate incidents within a three-year period.

      (9) A person is disqualified from driving a commercial motor vehicle for not more than one year if a report has been received by the department from the federal motor carrier safety administration that the person's driving has been determined to constitute an imminent hazard as defined by 49 C.F.R. 383.5.  A person who is simultaneously disqualified from driving a commercial motor vehicle under this subsection and under other provisions of this chapter, or under 49 C.F.R. 383.52, shall serve those disqualification periods concurrently.

      (10) Within ten days after suspending, revoking, or canceling a commercial driver's license or disqualifying a driver from operating a commercial motor vehicle, the department shall update its records to reflect that action.

Sec. 5.  RCW 46.32.100 and 2010 c 161 s 1116 are each amended to read as follows:

      (1)(a) In addition to all other penalties provided by law, and except as provided otherwise in (a)(i), (ii), or (iii) of this subsection, a commercial motor vehicle that is subject to compliance reviews under this chapter and an officer, agent, or employee of a company operating a commercial motor vehicle who violates or who procures, aids, or abets in the violation of this title or any order or rule of the state patrol is liable for a penalty of one hundred dollars for each violation.

      (i) It is a violation of this chapter for a person operating a commercial motor vehicle to fail to comply with the requirements of 49 C.F.R. Pt. 382, controlled substances and alcohol use and testing, 49 C.F.R. Sec. 391.15, disqualification of drivers, and 49 C.F.R. Sec. 396.9(c)(2), moving a vehicle placed out of service before the out of service defects have been satisfactorily repaired.  For each violation the person is liable for a penalty of five hundred dollars.

      (ii) The driver of a commercial motor vehicle who ((violates)) is convicted of violating an out-of-service order is liable for a penalty of at least ((one)) two thousand ((one)) five hundred dollars ((but not more than two thousand seven hundred fifty dollars for each)) for a first violation, and not less than five thousand dollars for second or subsequent violation.

      (iii) An employer who allows ((a driver to operate)) the operation of a commercial motor vehicle when there is an out-of-service order is liable for a penalty of at least two thousand seven hundred fifty dollars but not more than ((eleven)) twenty-five thousand dollars for each violation.

      (iv) Each violation under this subsection (1)(a) is a separate and distinct offense, and in case of a continuing violation every day's continuance is a separate and distinct violation.

      (b) In addition to all other penalties provided by law, any motor carrier, company, or any officer or agent of a motor carrier or company operating a commercial motor vehicle subject to compliance reviews under this chapter who refuses entry or to make the required records, documents, and vehicles available to a duly authorized agent of the state patrol is liable for a penalty of at least five thousand dollars as well as an out-of-service order being placed on the department of transportation number, as defined in RCW 46.16A.010, and vehicle registration to operate.  Each violation is a separate and distinct offense, and in case of a continuing violation every day's continuance is a separate and distinct violation.

      (c) A motor carrier operating a commercial motor vehicle after receiving a final unsatisfactory rating or being placed out of service is liable for a penalty of not more than eleven thousand dollars for each violation.  Each violation is a separate and distinct offense, and in case of a continuing violation every day's continuance is a separate and distinct violation.

      (d) A high-risk carrier is liable for double the amount of the penalty of a prior violation if the high-risk carrier repeats the same violation during a follow-up compliance review.  Each repeat violation is a separate and distinct offense, and in case of a repeat continuing violation every day's continuance is a separate and distinct violation.

      (2) The Washington state patrol may place an out-of-service order on a department of transportation number, as defined in RCW 46.16A.010, for violations of this chapter or for nonpayment of any monetary penalties assessed by the state patrol or the utilities and transportation commission, as a result of compliance reviews, or for violations of cease and desist orders issued by the utilities and transportation commission.  The state patrol shall notify the department of licensing when an out-of-service order has been placed on a motor carrier's department of transportation number.  The state patrol shall notify the motor carrier when there has been an out-of- service order placed on the motor carrier's department of transportation number and the vehicle registrations have been revoked by sending a notice by first-class mail using the last known address for the registered or legal owner or owners, and recording the transmittal on an affidavit of first-class mail.  Notices under this section fulfill the requirements of RCW 46.12.550.  Motor carriers may not be eligible for a new department of transportation number, vehicle registration, or temporary permits to operate unless the violations that resulted in the out-of-service order have been corrected.

      (3) Any penalty provided in this section is due and payable when the person incurring it receives a notice in writing from the state patrol describing the violation and advising the person that the penalty is due.

      (a)(i) Any motor carrier who incurs a penalty as provided in this section, except for a high-risk carrier that incurs a penalty for a repeat violation during a follow-up compliance review, may, upon written application, request that the state patrol mitigate the penalty.  An application for mitigation must be received by the state patrol within twenty days of the receipt of notice.

      (ii) The state patrol may decline to consider any application for mitigation.

      (b) Any motor carrier who incurs a penalty as provided in this section has a right to an administrative hearing under chapter 34.05 RCW to contest the violation or the penalty imposed, or both.  In all such hearings, the procedure and rules of evidence are as specified in chapter 34.05 RCW except as otherwise provided in this chapter.  Any request for an administrative hearing must be made in writing and must be received by the state patrol within twenty days after the later of (i) receipt of the notice imposing the penalty, or (ii) disposition of a request for mitigation, or the right to a hearing is waived.

      (c) All penalties recovered under this section shall be paid into the state treasury and credited to the state patrol highway account of the motor vehicle fund.

Sec. 6.  RCW 46.20.049 and 2005 c 314 s 309 are each amended to read as follows:

      There shall be an additional fee for issuing any class of commercial driver's license in addition to the prescribed fee required for the issuance of the original driver's license.  The additional fee for each class shall be ((thirty)) seventy-five dollars for the original commercial driver's license or subsequent renewals.  If the commercial driver's license is renewed or extended for a period other than five years, the fee for each class shall be ((six)) fifteen dollars for each year that the commercial driver's license is renewed or extended.  The fee shall be deposited in the highway safety fund.

NEW SECTION.  Sec. 7.  Sections 1 through 3 of this act take effect January 30, 2012."

On page 1, line 1 of the title, after "Relating to" strike the remainder of the title and insert "certain commercial motor vehicle provisions; amending RCW 46.25.010, 46.25.090, 46.32.100, and 46.20.049; reenacting and amending RCW 46.25.080; adding a new section to chapter 46.25 RCW; prescribing penalties; and providing an effective date."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

               

SENATE AMENDMENT TO HOUSE BILL

 

                There being no objection, the House refused to concur in the Senate amendment to HOUSE BILL NO. 1229 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

                The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1725   with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 51.04.030 and 2004 c 65 s 1 are each amended to read as follows:

      (1) The director shall supervise the providing of prompt and efficient care and treatment, including care provided by physician assistants governed by the provisions of chapters 18.57A and 18.71A RCW, acting under a supervising physician, including chiropractic care, and including care provided by licensed advanced registered nurse practitioners, to workers injured during the course of their employment at the least cost consistent with promptness and efficiency, without discrimination or favoritism, and with as great uniformity as the various and diverse surrounding circumstances and locations of industries will permit and to that end shall, from time to time, establish and adopt and supervise the administration of printed forms, rules, regulations, and practices for the furnishing of such care and treatment:  PROVIDED, That the medical coverage decisions of the department do not constitute a "rule" as used in RCW 34.05.010(16), nor are such decisions subject to the rule-making provisions of chapter 34.05 RCW except that criteria for establishing medical coverage decisions shall be adopted by rule after consultation with the workers' compensation advisory committee established in RCW 51.04.110:  PROVIDED FURTHER, That the department may recommend to an injured worker particular health care services and providers where specialized treatment is indicated or where cost effective payment levels or rates are obtained by the department:  AND PROVIDED FURTHER, That the department may enter into contracts for goods and services including, but not limited to, durable medical equipment so long as statewide access to quality service is maintained for injured workers.

      (2) The director shall, in consultation with interested persons, establish and, in his or her discretion, periodically change as may be necessary, and make available a fee schedule of the maximum charges to be made by any physician, surgeon, chiropractor, hospital, druggist, licensed advanced registered nurse practitioner, physicians' assistants as defined in chapters 18.57A and 18.71A RCW, acting under a supervising physician or other agency or person rendering services to injured workers.  The department shall coordinate with other state purchasers of health care services to establish as much consistency and uniformity in billing and coding practices as possible, taking into account the unique requirements and differences between programs.  No service covered under this title, including services provided to injured workers, whether aliens or other injured workers, who are not residing in the United States at the time of receiving the services, shall be charged or paid at a rate or rates exceeding those specified in such fee schedule, and no contract providing for greater fees shall be valid as to the excess.  The establishment of such a schedule, exclusive of conversion factors, does not constitute "agency action" as used in RCW 34.05.010(3), nor does such a fee schedule and its associated billing or payment instructions and policies constitute a "rule" as used in RCW 34.05.010(16).

      (3) The director or self-insurer, as the case may be, shall make a record of the commencement of every disability and the termination thereof and, when bills are rendered for the care and treatment of injured workers, shall approve and pay those which conform to the adopted rules, regulations, established fee schedules, and practices of the director and may reject any bill or item thereof incurred in violation of the principles laid down in this section or the rules, regulations, or the established fee schedules and rules and regulations adopted under it.

Sec. 2.  RCW 51.04.082 and 1986 c 9 s 2 are each amended to read as follows:

      Any notice or order required by this title to be mailed to any employer may be served in the manner prescribed by law for personal service of summons and complaint in the commencement of actions in the superior courts of the state, but if the notice or order is mailed, it shall be addressed to the address of the employer as shown by the records of the department, or, if no such address is shown, to such address as the department is able to ascertain by reasonable effort. If requested by the employer, any notice or order may be sent by secure electronic means except orders communicating the closure of a claim.  Correspondence and notices sent electronically are considered received on the date sent by the department.  Failure of the employer to receive such notice or order whether served or mailed shall not release the employer from any tax or any increases or penalties thereon.

Sec. 3.  RCW 51.24.060 and 2001 c 146 s 9 are each amended to read as follows:

      (1) If the injured worker or beneficiary elects to seek damages from the third person, any recovery made shall be distributed as follows:

      (a) The costs and reasonable attorneys' fees shall be paid proportionately by the injured worker or beneficiary and the department and/or self-insurer:  PROVIDED, That the department and/or self-insurer may require court approval of costs and attorneys' fees or may petition a court for determination of the reasonableness of costs and attorneys' fees;

      (b) The injured worker or beneficiary shall be paid twenty-five percent of the balance of the award:  PROVIDED, That in the event of a compromise and settlement by the parties, the injured worker or beneficiary may agree to a sum less than twenty-five percent;

      (c) The department and/or self-insurer shall be paid the balance of the recovery made, but only to the extent necessary to reimburse the department and/or self-insurer for benefits paid;

      (i) The department and/or self-insurer shall bear its proportionate share of the costs and reasonable attorneys' fees incurred by the worker or beneficiary to the extent of the benefits paid under this title:  PROVIDED, That the department's and/or self-insurer's proportionate share shall not exceed one hundred percent of the costs and reasonable attorneys' fees;

      (ii) The department's and/or self-insurer's proportionate share of the costs and reasonable attorneys' fees shall be determined by dividing the gross recovery amount into the benefits paid amount and multiplying this percentage times the costs and reasonable attorneys' fees incurred by the worker or beneficiary;

      (iii) The department's and/or self-insurer's reimbursement share shall be determined by subtracting their proportionate share of the costs and reasonable attorneys' fees from the benefits paid amount;

      (d) Any remaining balance shall be paid to the injured worker or beneficiary; and

      (e) Thereafter no payment shall be made to or on behalf of a worker or beneficiary by the department and/or self-insurer for such injury until the amount of any further compensation and benefits shall equal any such remaining balance minus the department's and/or self-insurer's proportionate share of the costs and reasonable attorneys' fees in regards to the remaining balance.  This proportionate share shall be determined by dividing the gross recovery amount into the remaining balance amount and multiplying this percentage times the costs and reasonable attorneys' fees incurred by the worker or beneficiary.  Thereafter, such benefits shall be paid by the department and/or self- insurer to or on behalf of the worker or beneficiary as though no recovery had been made from a third person.

      (2) The recovery made shall be subject to a lien by the department and/or self-insurer for its share under this section.

      (3) The department or self-insurer has sole discretion to compromise the amount of its lien.  In deciding whether or to what extent to compromise its lien, the department or self-insurer shall consider at least the following:

      (a) The likelihood of collection of the award or settlement as may be affected by insurance coverage, solvency, or other factors relating to the third person;

      (b) Factual and legal issues of liability as between the injured worker or beneficiary and the third person.  Such issues include but are not limited to possible contributory negligence and novel theories of liability; and

      (c) Problems of proof faced in obtaining the award or settlement.

      (4) In an action under this section, the self-insurer may act on behalf and for the benefit of the department to the extent of any compensation and benefits paid or payable from state funds.

      (5) It shall be the duty of the person to whom any recovery is paid before distribution under this section to advise the department or self-insurer of the fact and amount of such recovery, the costs and reasonable attorneys' fees associated with the recovery, and to distribute the recovery in compliance with this section.

      (6) The distribution of any recovery made by award or settlement of the third party action shall be confirmed by department order, served by ((registered or certified mail)) a method for which receipt can be confirmed or tracked, and shall be subject to chapter 51.52 RCW.  In the event the order of distribution becomes final under chapter 51.52 RCW, the director or the director's designee may file with the clerk of any county within the state a warrant in the amount of the sum representing the unpaid lien plus interest accruing from the date the order became final.  The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of such worker or beneficiary mentioned in the warrant, the amount of the unpaid lien plus interest accrued and the date when the warrant was filed.  The amount of such warrant as docketed shall become a lien upon the title to and interest in all real and personal property of the injured worker or beneficiary against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of such clerk.  The sheriff shall then proceed in the same manner and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in the superior court.  Such warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the department in the manner provided by law in the case of judgment, wholly or partially unsatisfied.  The clerk of the court shall be entitled to a filing fee under RCW 36.18.012(10), which shall be added to the amount of the warrant.  A copy of such warrant shall be mailed to the injured worker or beneficiary within three days of filing with the clerk.

      (7) The director, or the director's designee, may issue to any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, a notice and order to withhold and deliver property of any kind if he or she has reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property which is due, owing, or belonging to any worker or beneficiary upon whom a warrant has been served by the department for payments due to the state fund.  The notice and order to withhold and deliver shall be served by the sheriff of the county or by the sheriff's deputy; by ((certified mail, return receipt requested)) a method for which receipt can be confirmed or tracked; or by any authorized representatives of the director.  Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order to withhold and deliver.  In the event there is in the possession of the party named and served with such notice and order, any property which may be subject to the claim of the department, such property shall be delivered forthwith to the director or the director's authorized representative upon demand.  If the party served and named in the notice and order fails to answer the notice and order within the time prescribed in this section, the court may, after the time to answer such order has expired, render judgment by default against the party named in the notice for the full amount claimed by the director in the notice together with costs.  In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, the employer may assert in the answer to all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.

Sec. 4.  RCW 51.32.240 and 2008 c 280 s 2 are each amended to read as follows:

      (1)(a) Whenever any payment of benefits under this title is made because of clerical error, mistake of identity, innocent misrepresentation by or on behalf of the recipient thereof mistakenly acted upon, or any other circumstance of a similar nature, all not induced by willful misrepresentation, the recipient thereof shall repay it and recoupment may be made from any future payments due to the recipient on any claim with the state fund or self-insurer, as the case may be.  The department or self-insurer, as the case may be, must make claim for such repayment or recoupment within one year of the making of any such payment or it will be deemed any claim therefor has been waived.

      (b) Except as provided in subsections (3), (4), and (5) of this section, the department may only assess an overpayment of benefits because of adjudicator error when the order upon which the overpayment is based is not yet final as provided in RCW 51.52.050 and 51.52.060.  "Adjudicator error" includes the failure to consider information in the claim file, failure to secure adequate information, or an error in judgment.

      (c) The director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise his or her discretion to waive, in whole or in part, the amount of any such timely claim where the recovery would be against equity and good conscience.

      (2) Whenever the department or self-insurer fails to pay benefits because of clerical error, mistake of identity, or innocent misrepresentation, all not induced by recipient willful misrepresentation, the recipient may request an adjustment of benefits to be paid from the state fund or by the self-insurer, as the case may be, subject to the following:

      (a) The recipient must request an adjustment in benefits within one year from the date of the incorrect payment or it will be deemed any claim therefore has been waived.

      (b) The recipient may not seek an adjustment of benefits because of adjudicator error.  Adjustments due to adjudicator error are addressed by the filing of a written request for reconsideration with the department of labor and industries or an appeal with the board of industrial insurance appeals within sixty days from the date the order is communicated as provided in RCW 51.52.050.  "Adjudicator error" includes the failure to consider information in the claim file, failure to secure adequate information, or an error in judgment.

      (3) Whenever the department issues an order rejecting a claim for benefits paid pursuant to RCW 51.32.190 or 51.32.210, after payment for temporary disability benefits has been paid by a self-insurer pursuant to RCW 51.32.190(3) or by the department pursuant to RCW 51.32.210, the recipient thereof shall repay such benefits and recoupment may be made from any future payments due to the recipient on any claim with the state fund or self-insurer, as the case may be.  The director, under rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise discretion to waive, in whole or in part, the amount of any such payments where the recovery would be against equity and good conscience.

      (4) Whenever any payment of benefits under this title has been made pursuant to an adjudication by the department or by order of the board or any court and timely appeal therefrom has been made where the final decision is that any such payment was made pursuant to an erroneous adjudication, the recipient thereof shall repay it and recoupment may be made from any future payments due to the recipient on any claim whether state fund or self-insured.

      (a) The director, pursuant to rules adopted in accordance with the procedures provided in the administrative procedure act, chapter 34.05 RCW, may exercise discretion to waive, in whole or in part, the amount of any such payments where the recovery would be against equity and good conscience.  However, if the director waives in whole or in part any such payments due a self-insurer, the self-insurer shall be reimbursed the amount waived from the self-insured employer overpayment reimbursement fund.

      (b) The department shall collect information regarding self-insured claim overpayments resulting from final decisions of the board and the courts, and recoup such overpayments on behalf of the self-insurer from any open, new, or reopened state fund or self-insured claims.  The department shall forward the amounts collected to the self-insurer to whom the payment is owed.  The department may provide information as needed to any self-insurers from whom payments may be collected on behalf of the department or another self-insurer.  Notwithstanding RCW 51.32.040, any self-insurer requested by the department to forward payments to the department pursuant to this subsection shall pay the department directly.  The department shall credit the amounts recovered to the appropriate fund, or forward amounts collected to the appropriate self-insurer, as the case may be.

      (c) If a self-insurer is not fully reimbursed within twenty-four months of the first attempt at recovery through the collection process pursuant to this subsection and by means of processes pursuant to subsection (6) of this section, the self-insurer shall be reimbursed for the remainder of the amount due from the self-insured employer overpayment reimbursement fund.

      (d) For purposes of this subsection, "recipient" does not include health service providers whose treatment or services were authorized by the department or self-insurer.

      (e) The department or self-insurer shall first attempt recovery of overpayments for health services from any entity that provided health insurance to the worker to the extent that the health insurance entity would have provided health insurance benefits but for workers' compensation coverage.

      (5)(a) Whenever any payment of benefits under this title has been induced by willful misrepresentation the recipient thereof shall repay any such payment together with a penalty of fifty percent of the total of any such payments and the amount of such total sum may be recouped from any future payments due to the recipient on any claim with the state fund or self-insurer against whom the willful misrepresentation was committed, as the case may be, and the amount of such penalty shall be placed in the supplemental pension fund.  Such repayment or recoupment must be demanded or ordered within three years of the discovery of the willful misrepresentation.

      (b) For purposes of this subsection (5), it is willful misrepresentation for a person to obtain payments or other benefits under this title in an amount greater than that to which the person otherwise would be entitled.  Willful misrepresentation includes:

      (i) Willful false statement; or

      (ii) Willful misrepresentation, omission, or concealment of any material fact.

      (c) For purposes of this subsection (5), "willful" means a conscious or deliberate false statement, misrepresentation, omission, or concealment of a material fact with the specific intent of obtaining, continuing, or increasing benefits under this title.

      (d) For purposes of this subsection (5), failure to disclose a work-type activity must be willful in order for a misrepresentation to have occurred.

      (e) For purposes of this subsection (5), a material fact is one which would result in additional, increased, or continued benefits, including but not limited to facts about physical restrictions, or work-type activities which either result in wages or income or would be reasonably expected to do so.  Wages or income include the receipt of any goods or services.  For a work-type activity to be reasonably expected to result in wages or income, a pattern of repeated activity must exist.  For those activities that would reasonably be expected to result in wages or produce income, but for which actual wage or income information cannot be reasonably determined, the department shall impute wages pursuant to RCW 51.08.178(4).

      (6) The worker, beneficiary, or other person affected thereby shall have the right to contest an order assessing an overpayment pursuant to this section in the same manner and to the same extent as provided under RCW 51.52.050 and 51.52.060.  In the event such an order becomes final under chapter 51.52 RCW and notwithstanding the provisions of subsections (1) through (5) of this section, the director, director's designee, or self-insurer may file with the clerk in any county within the state a warrant in the amount of the sum representing the unpaid overpayment and/or penalty plus interest accruing from the date the order became final.  The clerk of the county in which the warrant is filed shall immediately designate a superior court cause number for such warrant and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of the worker, beneficiary, or other person mentioned in the warrant, the amount of the unpaid overpayment and/or penalty plus interest accrued, and the date the warrant was filed.  The amount of the warrant as docketed shall become a lien upon the title to and interest in all real and personal property of the worker, beneficiary, or other person against whom the warrant is issued, the same as a judgment in a civil case docketed in the office of such clerk.  The sheriff shall then proceed in the same manner and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in the superior court.  Such warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the department or self-insurer in the manner provided by law in the case of judgment, wholly or partially unsatisfied.  The clerk of the court shall be entitled to a filing fee under RCW 36.18.012(10), which shall be added to the amount of the warrant.  A copy of such warrant shall be mailed to the worker, beneficiary, or other person within three days of filing with the clerk.

      The director, director's designee, or self-insurer may issue to any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, a notice to withhold and deliver property of any kind if there is reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state, property that is due, owing, or belonging to any worker, beneficiary, or other person upon whom a warrant has been served for payments due the department or self- insurer.  The notice and order to withhold and deliver shall be served by ((certified mail)) a method for which receipt can be confirmed or tracked accompanied by an affidavit of service by mailing or served by the sheriff of the county, or by the sheriff's deputy, or by any authorized representative of the director, director's designee, or self-insurer.  Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or agency of the state upon whom service has been made shall answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired or in the notice and order to withhold and deliver.  In the event there is in the possession of the party named and served with such notice and order, any property that may be subject to the claim of the department or self-insurer, such property shall be delivered forthwith to the director, the director's authorized representative, or self-insurer upon demand.  If the party served and named in the notice and order fails to answer the notice and order within the time prescribed in this section, the court may, after the time to answer such order has expired, render judgment by default against the party named in the notice for the full amount, plus costs, claimed by the director, director's designee, or self-insurer in the notice.  In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, the employer may assert in the answer all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.

      This subsection shall only apply to orders assessing an overpayment which are issued on or after July 28, 1991:  PROVIDED, That this subsection shall apply retroactively to all orders assessing an overpayment resulting from fraud, civil or criminal.

      (7) Orders assessing an overpayment which are issued on or after July 28, 1991, shall include a conspicuous notice of the collection methods available to the department or self-insurer.

Sec. 5.  RCW 51.48.120 and 1995 c 160 s 5 are each amended to read as follows:

      If any employer should default in any payment due to the state fund the director or the director's designee may issue a notice of assessment certifying the amount due, which notice shall be served upon the employer by mailing such notice to the employer by ((certified mail)) a method for which receipt can be confirmed or tracked to the employer's last known address or served in the manner prescribed for the service of a summons in a civil action.  Such notice shall contain the information that an appeal must be filed with the board of industrial insurance appeals and the director by mail or personally within thirty days of the date of service of the notice of assessment in order to appeal the assessment unless a written request for reconsideration is filed with the department of labor and industries.

Sec. 6.  RCW 51.48.150 and 1995 c 160 s 6 are each amended to read as follows:

      The director or the director's designee is hereby authorized to issue to any person, firm, corporation, municipal corporation, political subdivision of the state, a public corporation, or any agency of the state, a notice and order to withhold and deliver property of any kind whatsoever when he or she has reason to believe that there is in the possession of such person, firm, corporation, municipal corporation, political subdivision of the state, public corporation, or any agency of the state, property which is or shall become due, owing, or belonging to any employer upon whom a notice of assessment has been served by the department for payments due to the state fund.  The effect of a notice and order to withhold and deliver shall be continuous from the date such notice and order to withhold and deliver is first made until the liability out of which such notice and order to withhold and deliver arose is satisfied or becomes unenforceable because of lapse of time.  The department shall release the notice and order to withhold and deliver when the liability out of which the notice and order to withhold and deliver arose is satisfied or becomes unenforceable by reason of lapse of time and shall notify the person against whom the notice and order to withhold and deliver was made that such notice and order to withhold and deliver has been released.

      The notice and order to withhold and deliver shall be served by the sheriff of the county or by the sheriff's deputy, by ((certified mail, return receipt requested)) a method for which receipt can be confirmed or tracked, or by any duly authorized representatives of the director.  Any person, firm, corporation, municipal corporation, political subdivision of the state, public corporation or any agency of the state upon whom service has been made is hereby required to answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice and order to withhold and deliver.  In the event there is in the possession of the party named and served with a notice and order to withhold and deliver, any property which may be subject to the claim of the department, such property shall be delivered forthwith to the director or the director's duly authorized representative upon service of the notice to withhold and deliver which will be held in trust by the director for application on the employer's indebtedness to the department, or for return without interest, in accordance with a final determination of a petition for review, or in the alternative such party shall furnish a good and sufficient surety bond satisfactory to the director conditioned upon final determination of liability.  Should any party served and named in the notice to withhold and deliver fail to make answer to such notice and order to withhold and deliver, within the time prescribed herein, it shall be lawful for the court, after the time to answer such order has expired, to render judgment by default against the party named in the notice to withhold and deliver for the full amount claimed by the director in the notice to withhold and deliver together with costs.  In the event that a notice to withhold and deliver is served upon an employer and the property found to be subject thereto is wages, then the employer shall be entitled to assert in the answer to all exemptions provided for by chapter 6.27 RCW to which the wage earner may be entitled.

Sec. 7.  RCW 51.52.050 and 2008 c 280 s 1 are each amended to read as follows:

      (1) Whenever the department has made any order, decision, or award, it shall promptly serve the worker, beneficiary, employer, or other person affected thereby, with a copy thereof by mail, ((which shall be addressed to such person at his or her last known address as shown by the records of the department)) or if the worker, beneficiary, employer, or other person affected thereby chooses, the department may send correspondence and other legal notices by secure electronic means except for orders communicating the closure of a claim.  Persons who choose to receive correspondence and other legal notices electronically shall be provided information to assist them in ensuring all electronic documents and communications are received.  Correspondence and notices must be addressed to such a person at his or her last known postal or electronic address as shown by the records of the department.  Correspondence and notices sent electronically are considered received on the date sent by the department.  The copy, in case the same is a final order, decision, or award, shall bear on the same side of the same page on which is found the amount of the award, a statement, set in black faced type of at least ten point body or size, that such final order, decision, or award shall become final within sixty days from the date the order is communicated to the parties unless a written request for reconsideration is filed with the department of labor and industries, Olympia, or an appeal is filed with the board of industrial insurance appeals, Olympia.  However, a department order or decision making demand, whether with or without penalty, for repayment of sums paid to a provider of medical, dental, vocational, or other health services rendered to an industrially injured worker, shall state that such order or decision shall become final within twenty days from the date the order or decision is communicated to the parties unless a written request for reconsideration is filed with the department of labor and industries, Olympia, or an appeal is filed with the board of industrial insurance appeals, Olympia.

      (2)(a) Whenever the department has taken any action or made any decision relating to any phase of the administration of this title the worker, beneficiary, employer, or other person aggrieved thereby may request reconsideration of the department, or may appeal to the board.  In an appeal before the board, the appellant shall have the burden of proceeding with the evidence to establish a prima facie case for the relief sought in such appeal.

      (b) An order by the department awarding benefits shall become effective and benefits due on the date issued.  Subject to (b)(i) and (ii) of this subsection, if the department order is appealed the order shall not be stayed pending a final decision on the merits unless ordered by the board.  Upon issuance of the order granting the appeal, the board will provide the worker with notice concerning the potential of an overpayment of benefits paid pending the outcome of the appeal and the requirements for interest on unpaid benefits pursuant to RCW 51.52.135.  A worker may request that benefits cease pending appeal at any time following the employer's motion for stay or the board's order granting appeal.  The request must be submitted in writing to the employer, the board, and the department.  Any employer may move for a stay of the order on appeal, in whole or in part.  The motion must be filed within fifteen days of the order granting appeal.  The board shall conduct an expedited review of the claim file provided by the department as it existed on the date of the department order.  The board shall issue a final decision within twenty-five days of the filing of the motion for stay or the order granting appeal, whichever is later.  The board's final decision may be appealed to superior court in accordance with RCW 51.52.110.  The board shall grant a motion to stay if the moving party demonstrates that it is more likely than not to prevail on the facts as they existed at the time of the order on appeal.  The board shall not consider the likelihood of recoupment of benefits as a basis to grant or deny a motion to stay.  If a self‑insured employer prevails on the merits, any benefits paid may be recouped pursuant to RCW 51.32.240.

      (i) If upon reconsideration requested by a worker or medical provider, the department has ordered an increase in a permanent partial disability award from the amount reflected in an earlier order, the award reflected in the earlier order shall not be stayed pending a final decision on the merits.  However, the increase is stayed without further action by the board pending a final decision on the merits.

      (ii) If any party appeals an order establishing a worker's wages or the compensation rate at which a worker will be paid temporary or permanent total disability or loss of earning power benefits, the worker shall receive payment pending a final decision on the merits based on the following:

      (A) When the employer is self-insured, the wage calculation or compensation rate the employer most recently submitted to the department; or

      (B) When the employer is insured through the state fund, the highest wage amount or compensation rate uncontested by the parties.

      Payment of benefits or consideration of wages at a rate that is higher than that specified in (b)(ii)(A) or (B) of this subsection is stayed without further action by the board pending a final decision on the merits.

      (c) In an appeal from an order of the department that alleges willful misrepresentation, the department or self-insured employer shall initially introduce all evidence in its case in chief.  Any such person aggrieved by the decision and order of the board may thereafter appeal to the superior court, as prescribed in this chapter."

On page 1, line 2 of the title, after "program;" strike the remainder of the title and insert "and amending RCW 51.04.030, 51.04.082, 51.24.060, 51.32.240, 51.48.120, 51.48.150, and 51.52.050."

 

and the same is herewith transmitted.

Thomas Hoemann, Secretary

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House refused to concur in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1725 and asked the Senate to recede therefrom.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1041 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 9.41.060 and 2005 c 453 s 3 are each amended to read as follows:

      The provisions of RCW 9.41.050 shall not apply to:

      (1) Marshals, sheriffs, prison or jail wardens or their deputies, correctional personnel and community corrections officers as long as they are employed as such who have completed government-sponsored law enforcement firearms training and have been subject to a check through the national instant criminal background check system or an equivalent background check within the past five years, or other law enforcement officers of this state or another state.  Correctional personnel and community corrections officers seeking the waiver provided for by this section are required to pay for any background check that is needed in order to exercise the waiver;

      (2) Members of the armed forces of the United States or of the national guard or organized reserves, when on duty;

      (3) Officers or employees of the United States duly authorized to carry a concealed pistol;

      (4) Any person engaged in the business of manufacturing, repairing, or dealing in firearms, or the agent or representative of the person, if possessing, using, or carrying a pistol in the usual or ordinary course of the business;

      (5) Regularly enrolled members of any organization duly authorized to purchase or receive pistols from the United States or from this state;

      (6) Regularly enrolled members of clubs organized for the purpose of target shooting, when those members are at or are going to or from their places of target practice;

      (7) Regularly enrolled members of clubs organized for the purpose of modern and antique firearm collecting, when those members are at or are going to or from their collector's gun shows and exhibits;

      (8) Any person engaging in a lawful outdoor recreational activity such as hunting, fishing, camping, hiking, or horseback riding, only if, considering all of the attendant circumstances, including but not limited to whether the person has a valid hunting or fishing license, it is reasonable to conclude that the person is participating in lawful outdoor activities or is traveling to or from a legitimate outdoor recreation area;

      (9) Any person while carrying a pistol unloaded and in a closed opaque case or secure wrapper; or

      (10) Law enforcement officers retired for service or physical disabilities, except for those law enforcement officers retired because of mental or stress-related disabilities.  This subsection applies only to a retired officer who has:  (a) Obtained documentation from a law enforcement agency within Washington state from which he or she retired that is signed by the agency's chief law enforcement officer and that states that the retired officer was retired for service or physical disability; and (b) not been convicted or found not guilty by reason of insanity of a crime making him or her ineligible for a concealed pistol license.

Sec. 2.  RCW 9.41.300 and 2008 c 33 s 1 are each amended to read as follows:

      (1) It is unlawful for any person to enter the following places when he or she knowingly possesses or knowingly has under his or her control a weapon:

      (a) The restricted access areas of a jail, or of a law enforcement facility, or any place used for the confinement of a person (i) arrested for, charged with, or convicted of an offense, (ii) held for extradition or as a material witness, or (iii) otherwise confined pursuant to an order of a court, except an order under chapter 13.32A or 13.34 RCW.  Restricted access areas do not include common areas of egress or ingress open to the general public;

      (b) Those areas in any building which are used in connection with court proceedings, including courtrooms, jury rooms, judge's chambers, offices and areas used to conduct court business, waiting areas, and corridors adjacent to areas used in connection with court proceedings.  The restricted areas do not include common areas of ingress and egress to the building that is used in connection with court proceedings, when it is possible to protect court areas without restricting ingress and egress to the building.  The restricted areas shall be the minimum necessary to fulfill the objective of this subsection (1)(b).

      For purposes of this subsection (1)(b), "weapon" means any firearm, explosive as defined in RCW 70.74.010, or any weapon of the kind usually known as slung shot, sand club, or metal knuckles, or any knife, dagger, dirk, or other similar weapon that is capable of causing death or bodily injury and is commonly used with the intent to cause death or bodily injury.

      In addition, the local legislative authority shall provide either a stationary locked box sufficient in size for pistols and key to a weapon owner for weapon storage, or shall designate an official to receive weapons for safekeeping, during the owner's visit to restricted areas of the building.  The locked box or designated official shall be located within the same building used in connection with court proceedings.  The local legislative authority shall be liable for any negligence causing damage to or loss of a weapon either placed in a locked box or left with an official during the owner's visit to restricted areas of the building.

      The local judicial authority shall designate and clearly mark those areas where weapons are prohibited, and shall post notices at each entrance to the building of the prohibition against weapons in the restricted areas;

      (c) The restricted access areas of a public mental health facility certified by the department of social and health services for inpatient hospital care and state institutions for the care of the mentally ill, excluding those facilities solely for evaluation and treatment.  Restricted access areas do not include common areas of egress and ingress open to the general public;

      (d) That portion of an establishment classified by the state liquor control board as off-limits to persons under twenty-one years of age; or

      (e) The restricted access areas of a commercial service airport designated in the airport security plan approved by the federal transportation security administration, including passenger screening checkpoints at or beyond the point at which a passenger initiates the screening process.  These areas do not include airport drives, general parking areas and walkways, and shops and areas of the terminal that are outside the screening checkpoints and that are normally open to unscreened passengers or visitors to the airport.  Any restricted access area shall be clearly indicated by prominent signs indicating that firearms and other weapons are prohibited in the area.

      (2) Cities, towns, counties, and other municipalities may enact laws and ordinances:

      (a) Restricting the discharge of firearms in any portion of their respective jurisdictions where there is a reasonable likelihood that humans, domestic animals, or property will be jeopardized.  Such laws and ordinances shall not abridge the right of the individual guaranteed by Article I, section 24 of the state Constitution to bear arms in defense of self or others; and

      (b) Restricting the possession of firearms in any stadium or convention center, operated by a city, town, county, or other municipality, except that such restrictions shall not apply to:

      (i) Any pistol in the possession of a person licensed under RCW 9.41.070 or exempt from the licensing requirement by RCW 9.41.060; or

      (ii) Any showing, demonstration, or lecture involving the exhibition of firearms.

      (3)(a) Cities, towns, and counties may enact ordinances restricting the areas in their respective jurisdictions in which firearms may be sold, but, except as provided in (b) of this subsection, a business selling firearms may not be treated more restrictively than other businesses located within the same zone.  An ordinance requiring the cessation of business within a zone shall not have a shorter grandfather period for businesses selling firearms than for any other businesses within the zone.

      (b) Cities, towns, and counties may restrict the location of a business selling firearms to not less than five hundred feet from primary or secondary school grounds, if the business has a storefront, has hours during which it is open for business, and posts advertisements or signs observable to passersby that firearms are available for sale.  A business selling firearms that exists as of the date a restriction is enacted under this subsection (3)(b) shall be grandfathered according to existing law.

      (4) Violations of local ordinances adopted under subsection (2) of this section must have the same penalty as provided for by state law.

      (5) The perimeter of the premises of any specific location covered by subsection (1) of this section shall be posted at reasonable intervals to alert the public as to the existence of any law restricting the possession of firearms on the premises.

      (6) Subsection (1) of this section does not apply to:

      (a) A person engaged in military activities sponsored by the federal or state governments, while engaged in official duties;

      (b) Law enforcement personnel, except that subsection (1)(b) of this section does apply to a law enforcement officer who is present at a courthouse building as a party to an action under chapter 10.14, 10.99, or 26.50 RCW, or an action under Title 26 RCW where any party has alleged the existence of domestic violence as defined in RCW 26.50.010; or

      (c) Security personnel while engaged in official duties.

      (7) Subsection (1)(a), (b), (c), and (e) of this section does not apply to correctional personnel or community corrections officers, as long as they are employed as such, who have completed government-sponsored law enforcement firearms training, except that subsection (1)(b) of this section does apply to a correctional employee or community corrections officer who is present at a courthouse building as a party to an action under chapter 10.14, 10.99, or 26.50 RCW, or an action under Title 26 RCW where any party has alleged the existence of domestic violence as defined in RCW 26.50.010.
      (8) Subsection (1)(a) of this section does not apply to a person licensed pursuant to RCW 9.41.070 who, upon entering the place or facility, directly and promptly proceeds to the administrator of the facility or the administrator's designee and obtains written permission to possess the firearm while on the premises or checks his or her firearm.  The person may reclaim the firearms upon leaving but must immediately and directly depart from the place or facility.

      (((8))) (9) Subsection (1)(c) of this section does not apply to any administrator or employee of the facility or to any person who, upon entering the place or facility, directly and promptly proceeds to the administrator of the facility or the administrator's designee and obtains written permission to possess the firearm while on the premises.

      (((9))) (10) Subsection (1)(d) of this section does not apply to the proprietor of the premises or his or her employees while engaged in their employment.

      (((10))) (11) Government-sponsored law enforcement firearms training must be training that correctional personnel and community corrections officers receive as part of their job requirement and reference to such training does not constitute a mandate that it be provided by the correctional facility.
      (12) Any person violating subsection (1) of this section is guilty of a gross misdemeanor.

      (((11))) (13) "Weapon" as used in this section means any firearm, explosive as defined in RCW 70.74.010, or instrument or weapon listed in RCW 9.41.250.

NEW SECTION.  Sec. 3.  A new section is added to chapter 9.41 RCW to read as follows:

      The exemptions from firearms restrictions in RCW 9.41.060 and 9.41.300 for correctional personnel and community corrections officers who complete government-sponsored law enforcement firearms training do not create a duty on the part of the state or local governmental entities with respect to the off-duty conduct of correctional personnel and community corrections officers involving the use or misuse of a firearm.

      The state of Washington, local governmental entities, and their officers, employees, and agents are not liable for any civil damages caused by the use or misuse of a firearm by off-duty correctional personnel or community corrections officers based on any act or omission in the provision of government-sponsored firearms training to the correctional personnel or community corrections officers."

      On page 1, line 4 of the title, after "restrictions;" strike the remainder of the title and insert "amending RCW 9.41.060 and 9.41.300; and adding a new section to chapter 9.41 RCW."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1041 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Green and Rodne spoke in favor of the passage of the bill.

 

MOTION

 

On motion of Representative Van De Wege, Representative Haigh was excused.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1041, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1041, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 92; Nays, 4; Absent, 0; Excused, 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representatives Hasegawa, Kagi, Maxwell and Roberts.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1041, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 6, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1051 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 11.02.005 and 2008 c 6 s 901 are each amended to read as follows:

      When used in this title, unless otherwise required from the context:

      (1) "Personal representative" includes executor, administrator, special administrator, and guardian or limited guardian and special representative.

      (2) "Net estate" refers to the real and personal property of a decedent exclusive of homestead rights, exempt property, the family allowance and enforceable claims against, and debts of, the deceased or the estate.

      (3) "Representation" refers to a method of determining distribution in which the takers are in unequal degrees of kinship with respect to a decedent, and is accomplished as follows:  After first determining who, of those entitled to share in the estate, are in the nearest degree of kinship, the estate is divided into equal shares, the number of shares being the sum of the number of persons who survive the decedent who are in the nearest degree of kinship and the number of persons in the same degree of kinship who died before the decedent but who left issue surviving the decedent; each share of a deceased person in the nearest degree shall be divided among those of the deceased person's issue who survive the decedent and have no ancestor then living who is in the line of relationship between them and the decedent, those more remote in degree taking together the share which their ancestor would have taken had he or she survived the decedent.

      (4) "Issue" means all the lineal descendants of an individual.  An adopted individual is a lineal descendant of each of his or her adoptive parents and of all individuals with regard to which each adoptive parent is a lineal descendant.  A child conceived prior to the death of a parent but born after the death of the deceased parent is considered to be the surviving issue of the deceased parent for purposes of this title.

      (5) "Degree of kinship" means the degree of kinship as computed according to the rules of the civil law; that is, by counting upward from the intestate to the nearest common ancestor and then downward to the relative, the degree of kinship being the sum of these two counts.

      (6) "Heirs" denotes those persons, including the surviving spouse or surviving domestic partner, who are entitled under the statutes of intestate succession to the real and personal property of a decedent on the decedent's death intestate.

      (7) "Real estate" includes, except as otherwise specifically provided herein, all lands, tenements, and hereditaments, and all rights thereto, and all interest therein possessed and claimed in fee simple, or for the life of a third person.

      (8) "Will" means an instrument validly executed as required by RCW 11.12.020.

      (9) "Codicil" means a will that modifies or partially revokes an existing earlier will.  A codicil need not refer to or be attached to the earlier will.

      (10) "Guardian" or "limited guardian" means a personal representative of the person or estate of an incompetent or disabled person as defined in RCW 11.88.010 and the term may be used in lieu of "personal representative" wherever required by context.

      (11) "Administrator" means a personal representative of the estate of a decedent and the term may be used in lieu of "personal representative" wherever required by context.

      (12) "Executor" means a personal representative of the estate of a decedent appointed by will and the term may be used in lieu of "personal representative" wherever required by context.

      (13) "Special administrator" means a personal representative of the estate of a decedent appointed for limited purposes and the term may be used in lieu of "personal representative" wherever required by context.

      (14) "Trustee" means an original, added, or successor trustee and includes the state, or any agency thereof, when it is acting as the trustee of a trust to which chapter 11.98 RCW applies.

      (15) "Nonprobate asset" means those rights and interests of a person having beneficial ownership of an asset that pass on the person's death under a written instrument or arrangement other than the person's will.  "Nonprobate asset" includes, but is not limited to, a right or interest passing under a joint tenancy with right of survivorship, joint bank account with right of survivorship, payable on death or trust bank account, transfer on death security or security account, deed or conveyance if possession has been postponed until the death of the person, trust of which the person is grantor and that becomes effective or irrevocable only upon the person's death, community property agreement, individual retirement account or bond, or note or other contract the payment or performance of which is affected by the death of the person.  "Nonprobate asset" does not include:  A payable-on-death provision of a life insurance policy, annuity, or other similar contract, or of an employee benefit plan; a right or interest passing by descent and distribution under chapter 11.04 RCW; a right or interest if, before death, the person has irrevocably transferred the right or interest, the person has waived the power to transfer it or, in the case of contractual arrangement, the person has waived the unilateral right to rescind or modify the arrangement; or a right or interest held by the person solely in a fiduciary capacity.  For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, RCW 11.07.010(5) applies.  For the definition of "nonprobate asset" relating to revocation of a provision for a former spouse upon dissolution of marriage or declaration of invalidity of marriage, see RCW 11.07.010(5).  For the definition of "nonprobate asset" relating to testamentary disposition of nonprobate assets, see RCW 11.11.010(7).

      (16) "Internal Revenue Code" means the United States Internal Revenue Code of 1986, as amended or renumbered as of January 1, 2001.

      (17) References to "section 2033A" of the Internal Revenue Code in wills, trust agreements, powers of appointment, beneficiary designations, and other instruments governed by or subject to this title shall be deemed to refer to the comparable or corresponding provisions of section 2057 of the Internal Revenue Code, as added by section 6006(b) of the Internal Revenue Service Restructuring Act of 1998 (H.R. 2676, P.L. 105-206); and references to the section 2033A "exclusion" shall be deemed to mean the section 2057 deduction.

      (18) "Surviving spouse" or "surviving domestic partner" does not include an individual whose marriage to or state registered domestic partnership with the decedent has been terminated, dissolved, or invalidated unless, by virtue of a subsequent marriage or state registered domestic partnership, he or she is married to or in a domestic partnership with the decedent at the time of death.  A decree of separation that does not terminate the status of spouses or domestic partners is not a dissolution or invalidation for purposes of this subsection.

(19) "Trustor" means a person, including a testator, who creates, or contributes property to, a trust.
      (20) "Settlor" has the same meaning as provided for "trustor" in this section.

      Words that import the singular number may also be applied to the plural of persons and things.

      Words importing the masculine gender only may be extended to females also.

Sec. 2.  RCW 11.28.237 and 1997 c 252 s 85 are each amended to read as follows:

      (1) Within twenty days after appointment, the personal representative of the estate of a decedent shall cause written notice of his or her appointment and the pendency of said probate proceedings, to be served personally or by mail to each heir, legatee and devisee of the estate and each beneficiary or transferee of a nonprobate asset of the decedent whose names and addresses are known to him or her, and proof of such mailing or service shall be made by affidavit and filed in the cause.  If a trust is a legatee or devisee of the estate or a beneficiary or transferee of a nonprobate asset of the decedent, then notice to the trustee is sufficient.

      (2) If the personal representative does not otherwise give notice to creditors under chapter 11.40 RCW within thirty days after appointment, the personal representative shall cause written notice of his or her appointment and the pendency of the probate proceedings to be mailed to the state of Washington department of social and health services' office of financial recovery, and proof of the mailing shall be made by affidavit and filed in the cause.

Sec. 3.  RCW 11.68.090 and 2003 c 254 s 3 are each amended to read as follows:

      (1) Any personal representative acting under nonintervention powers may borrow money on the general credit of the estate and may mortgage, encumber, lease, sell, exchange, convey, and otherwise have the same powers, and be subject to the same limitations of liability, that a trustee has under ((RCW 11.98.070 and)) chapters 11.98, 11.100, and 11.102 RCW with regard to the assets of the estate, both real and personal, all without an order of court and without notice, approval, or confirmation, and in all other respects administer and settle the estate of the decedent without intervention of court.  Except as otherwise specifically provided in this title or by order of court, a personal representative acting under nonintervention powers may exercise the powers granted to a personal representative under chapter 11.76 RCW but is not obligated to comply with the duties imposed on personal representatives by that chapter.  A party to such a transaction and the party's successors in interest are entitled to have it conclusively presumed that the transaction is necessary for the administration of the decedent's estate.

      (2) Except as otherwise provided in chapter 11.108 RCW or elsewhere in order to preserve a marital deduction from estate taxes, a testator may by a will relieve the personal representative from any or all of the duties, restrictions, and liabilities imposed:  Under common law; by chapters 11.54, 11.56, 11.100, 11.102, and 11.104A RCW; or by RCW 11.28.270 and 11.28.280, 11.68.095, and 11.98.070.  In addition, a testator may likewise alter or deny any or all of the privileges and powers conferred by this title, and may add duties, restrictions, liabilities, privileges, or powers to those imposed or granted by this title.  If any common law or any statute referenced earlier in this subsection is in conflict with a will, the will controls whether or not specific reference is made in the will to this section.  However, notwithstanding the rest of this subsection, a personal representative may not be relieved of the duty to act in good faith and with honest judgment.

Sec. 4.  RCW 11.94.050 and 2001 c 203 s 12 are each amended to read as follows:

      (1) Although a designated attorney-in-fact or agent has all powers of absolute ownership of the principal, or the document has language to indicate that the attorney-in-fact or agent shall have all the powers the principal would have if alive and competent, the attorney-in-fact or agent shall not have the power to make, amend, alter, or revoke the principal's wills or codicils, and shall not have the power, unless specifically provided otherwise in the document:  To make, amend, alter, or revoke any of the principal's life insurance, annuity, or similar contract beneficiary designations, employee benefit plan beneficiary designations, trust agreements, registration of the principal's securities in beneficiary form, payable on death or transfer on death beneficiary designations, designation of persons as joint tenants with right of survivorship with the principal with respect to any of the principal's property, community property agreements, or any other provisions for nonprobate transfer at death contained in nontestamentary instruments described in RCW 11.02.091; to make any gifts of property owned by the principal; to exercise the principal's rights to distribute property in trust or cause a trustee to distribute property in trust to the extent consistent with the terms of the trust agreement; to make transfers of property to any trust (whether or not created by the principal) unless the trust benefits the principal alone and does not have dispositive provisions which are different from those which would have governed the property had it not been transferred into the trust((,)); or to disclaim property.

      (2) Nothing in subsection (1) of this section prohibits an attorney-in-fact or agent from making any transfer of resources not prohibited under chapter 74.09 RCW when the transfer is for the purpose of qualifying the principal for medical assistance or the limited casualty program for the medically needy.

Sec. 5.  RCW 11.96A.030 and 2009 c 525 s 20 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Citation" or "cite" and other similar terms, when required of a person interested in the estate or trust or a party to a petition, means to give notice as required under RCW 11.96A.100.  "Citation" or "cite" and other similar terms, when required of the court, means to order, as authorized under RCW 11.96A.020 and 11.96A.060, and as authorized by law.

      (2) "Matter" includes any issue, question, or dispute involving:

      (a) The determination of any class of creditors, devisees, legatees, heirs, next of kin, or other persons interested in an estate, trust, nonprobate asset, or with respect to any other asset or property interest passing at death;

      (b) The direction of a personal representative or trustee to do or to abstain from doing any act in a fiduciary capacity;

      (c) The determination of any question arising in the administration of an estate or trust, or with respect to any nonprobate asset, or with respect to any other asset or property interest passing at death, that may include, without limitation, questions relating to:  (i) The construction of wills, trusts, community property agreements, and other writings; (ii) a change of personal representative or trustee; (iii) a change of the situs of a trust; (iv) an accounting from a personal representative or trustee; or (v) the determination of fees for a personal representative or trustee;

      (d) The grant to a personal representative or trustee of any necessary or desirable power not otherwise granted in the governing instrument or given by law;

      (e) An action or proceeding under chapter 11.84 RCW;

      (f) The amendment, reformation, or conformation of a will or a trust instrument to comply with statutes and regulations of the United States internal revenue service in order to achieve qualification for deductions, elections, and other tax requirements, including the qualification of any gift thereunder for the benefit of a surviving spouse who is not a citizen of the United States for the estate tax marital deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a qualified domestic trust under section 2056A of the internal revenue code, the qualification of any gift thereunder as a qualified conservation easement as permitted by federal law, or the qualification of any gift for the charitable estate tax deduction permitted by federal law, including the addition of mandatory governing instrument requirements for a charitable remainder trust; ((and))

      (g) With respect to any nonprobate asset, or with respect to any other asset or property interest passing at death, including joint tenancy property, property subject to a community property agreement, or assets subject to a pay on death or transfer on death designation:

      (i) The ascertaining of any class of creditors or others for purposes of chapter 11.18 or 11.42 RCW;

      (ii) The ordering of a qualified person, the notice agent, or resident agent, as those terms are defined in chapter 11.42 RCW, or any combination of them, to do or abstain from doing any particular act with respect to a nonprobate asset;

      (iii) The ordering of a custodian of any of the decedent's records relating to a nonprobate asset to do or abstain from doing any particular act with respect to those records;

      (iv) The determination of any question arising in the administration under chapter 11.18 or 11.42 RCW of a nonprobate asset;

      (v) The determination of any questions relating to the abatement, rights of creditors, or other matter relating to the administration, settlement, or final disposition of a nonprobate asset under this title;

      (vi) The resolution of any matter referencing this chapter, including a determination of any questions relating to the ownership or distribution of an individual retirement account on the death of the spouse of the account holder as contemplated by RCW 6.15.020(6);

      (vii) The resolution of any other matter that could affect the nonprobate asset; and
      (h) The reformation of a will or trust to correct a mistake under section 11 of this act.

      (3) "Nonprobate assets" has the meaning given in RCW 11.02.005.

      (4) "Notice agent" has the meanings given in RCW 11.42.010.

      (5) "Party" or "parties" means each of the following persons who has an interest in the subject of the particular proceeding and whose name and address are known to, or are reasonably ascertainable by, the petitioner:

      (a) The trustor if living;

      (b) The trustee;

      (c) The personal representative;

      (d) An heir;

      (e) A beneficiary, including devisees, legatees, and trust beneficiaries;

      (f) The surviving spouse or surviving domestic partner of a decedent with respect to his or her interest in the decedent's property;

      (g) A guardian ad litem;

      (h) A creditor;

      (i) Any other person who has an interest in the subject of the particular proceeding;

      (j) The attorney general if required under RCW 11.110.120;

      (k) Any duly appointed and acting legal representative of a party such as a guardian, special representative, or attorney-in-fact;

      (l) Where applicable, the virtual representative of any person described in this subsection the giving of notice to whom would meet notice requirements as provided in RCW 11.96A.120;

      (m) Any notice agent, resident agent, or a qualified person, as those terms are defined in chapter 11.42 RCW; and

      (n) The owner or the personal representative of the estate of the deceased owner of the nonprobate asset that is the subject of the particular proceeding, if the subject of the particular proceeding relates to the beneficiary's liability to a decedent's estate or creditors under RCW 11.18.200.

      (6) "Persons interested in the estate or trust" means the trustor, if living, all persons beneficially interested in the estate or trust, persons holding powers over the trust or estate assets, the attorney general in the case of any charitable trust where the attorney general would be a necessary party to judicial proceedings concerning the trust, and any personal representative or trustee of the estate or trust.

      (7) (("Principal place of administration of the trust" means the trustee's usual place of business where the day-to-day records pertaining to the trust are kept, or the trustee's residence if the trustee has no such place of business.
      (8))) "Representative" and other similar terms refer to a person who virtually represents another under RCW 11.96A.120.

      (((9) The "situs" of a trust means the place where the principal place of administration of the trust is located, unless otherwise provided in the instrument creating the trust.
      (10))) (8) "Trustee" means any acting and qualified trustee of the trust.

Sec. 6.  RCW 11.96A.050 and 2001 c 203 s 10 are each amended to read as follows:

      (1) Venue for proceedings pertaining to trusts shall be:

      (a) For testamentary trusts established under wills probated in the state of Washington, in the superior court of the county where ((letters testamentary were granted to a personal representative of the estate subject to the will or, in the alternative, the superior court of the county of the situs of the trust; and
      (b) For all other trusts, in the superior court of the county in which the situs of the trust is located, or, if the situs is not located in the state of Washington, in any county)) the probate of the will is being administered or was completed or, in the alternative, the superior court of the county where any beneficiary of the trust entitled to notice under RCW 11.97.010 resides, the county where any trustee resides or has a place of business, or the county where any real property that is an asset of the trust is located; and
      (b) For all other trusts, in the superior court of the county where any beneficiary of the trust entitled to notice under RCW 11.97.010 resides, the county where any trustee resides or has a place of business, or the county where any real property that is an asset of the trust is located.  If no county has venue for proceedings pertaining to a trust under the preceding sentence, then in any county.

      (2) A party to a proceeding pertaining to a trust may request that venue be changed.  If the request is made within four months of the giving of the first notice of a proceeding pertaining to the trust, except for good cause shown, venue must be moved to the county with the strongest connection to the trust as determined by the court, considering such factors as the residence of a beneficiary of the trust entitled to notice under RCW 11.97.010, the residence or place of business of a trustee, and the location of any real property that is an asset of the trust.
      (3) Venue for proceedings subject to chapter 11.88 or 11.92 RCW shall be determined under the provisions of those chapters.

      (((3))) (4) Venue for proceedings pertaining to the probate of wills, the administration and disposition of a decedent's property, including nonprobate assets, and any other matter not identified in subsection (1) ((or)), (2), or (3) of this section, ((may)) shall be in any county in the state of Washington that the petitioner selects.  A party to a proceeding may request that venue be changed if the request is made within four months of the mailing of the notice of appointment and pendency of probate required by RCW 11.28.237, and except for good cause shown, venue must be moved as follows:

      (a) If the decedent was a resident of the state of Washington at the time of death, to the county of the decedent's residence; or

      (b) If the decedent was not a resident of the state of Washington at the time of death, to any of the following:

      (i) Any county in which any part of the probate estate might be;

      (ii) If there are no probate assets, any county where any nonprobate asset might be; or

      (iii) The county in which the decedent died.

      (((4))) (5) Once letters testamentary or of administration have been granted in the state of Washington, all orders, settlements, trials, and other proceedings under this title shall be had or made in the county in which such letters have been granted unless venue is moved as provided in subsection (((2))) (4) of this section.

      (((5))) (6) Venue for proceedings pertaining to powers of attorney shall be in the superior court of the county of the principal's residence, except for good cause shown.

      (((6))) (7) If venue is moved, an action taken before venue is changed is not invalid because of the venue.

      (((7))) (8) Any request to change venue that is made more than four months after the commencement of the action may be granted in the discretion of the court.

Sec. 7.  RCW 11.96A.070 and 1999 c 42 s 204 are each amended to read as follows:

      (1)(a) ((An action against the trustee of an express trust for a breach of fiduciary duty must be brought within three years from the earlier of:  (i) The time the alleged breach was discovered or reasonably should have been discovered; (ii) the discharge of a trustee from the trust as provided in RCW 11.98.041 or by agreement of the parties under RCW 11.96A.220; or (iii) the time of termination of the trust or the trustee's repudiation of the trust.
      (b) The provisions of (a) of this subsection apply to all express trusts, no matter when created, however it shall not apply to express trusts created before June 10, 1959, until the date that is three years after January 1, 2000.
      (c))) A beneficiary of an express trust may not commence a proceeding against a trustee for breach of trust more than three years after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust and informed the beneficiary of the time allowed for commencing a proceeding.
      (b) A report adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.  A report that includes the following information is presumed to have provided such sufficient information regarding the existence of potential claims for breach of trust:
      (i) A statement of receipts and disbursements of principal and income that have occurred during the accounting period;
      (ii) A statement of the assets and liabilities of the trust and their values at the beginning and end of the period;
      (iii) The trustee's compensation for the period;
      (iv) The agents hired by the trustee, their relationship to the trustee, if any, and their compensation, for the period;
      (v) Disclosure of any pledge, mortgage, option, or lease of trust property, or other agreement affecting trust property binding for a period of five years or more that was granted or entered into during the accounting period;
      (vi) Disclosure of all transactions during the period that are equivalent to one of the types of transactions described in section 32 of this act or otherwise could have been affected by a conflict between the trustee's fiduciary and personal interests;
      (vii) A statement that the recipient of the account information may petition the superior court pursuant to chapter 11.106 RCW to obtain review of the statement and of acts of the trustee disclosed in the statement; and
      (viii) A statement that claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives the statement.
      (c) If (a) of this subsection does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within three years after the first to occur of:
      (i) The removal, resignation, or death of the trustee;
      (ii) The termination of the beneficiary's interest in the trust; or
      (iii) The termination of the trust.
      (d) For purposes of this section, "express trust" does not include resulting trusts, constructive trusts, business trusts in which certificates of beneficial interest are issued to the beneficiary, investment trusts, voting trusts, trusts in the nature of mortgages or pledges, ((trusts created by the judgment or decree of a court not sitting in probate,)) liquidation trusts, or trusts for the sole purpose of paying dividends, interest, interest coupons, salaries, wages, pensions, or profits, trusts created in deposits in any financial institution under chapter 30.22 RCW, unless any such trust that is created in writing specifically incorporates this chapter in whole or in part.

      (2) Except as provided in RCW 11.96A.250 with respect to special representatives, an action against a personal representative for alleged breach of fiduciary duty by an heir, legatee, or other interested party must be brought before discharge of the personal representative.

      (3) The legislature hereby confirms the long standing public policy of promoting the prompt and efficient resolution of matters involving trusts and estates.  To further implement this policy, the legislature adopts the following statutory provisions in order to:  (a) Encourage and facilitate the participation of qualified individuals as special representatives; (b) serve the public's interest in having a prompt and efficient resolution of matters involving trusts or estates; and (c) promote complete and final resolution of proceedings involving trusts and estates.

      (i) Actions against a special representative must be brought before the earlier of:

      (A) Three years from the discharge of the special representative as provided in RCW 11.96A.250; or

      (B) The entry of an order by a court of competent jurisdiction under RCW 11.96A.240 approving the written agreement executed by all interested parties in accord with the provisions of RCW 11.96A.220.

      (ii) If a legal action is commenced against the special representative after the expiration of the period during which claims may be brought against the special representative as provided in (c)(i) of this subsection, alleging property damage, property loss, or other civil liability caused by or resulting from an alleged act or omission of the special representative arising out of or by reason of the special representative's duties or actions as special representative, the special representative shall be indemnified:  (A) From the assets held in the trust or comprising the estate involved in the dispute; and (B) by the persons bringing the legal action, for all expenses, attorneys' fees, judgments, settlements, decrees, or amounts due and owing or paid in satisfaction of or incurred in the defense of the legal action.  To the extent possible, indemnification must be made first by the persons bringing the legal action, second from that portion of the trust or estate that is held for the benefit of, or has been distributed or applied to, the persons bringing the legal action, and third from the other assets held in the trust or comprising the estate involved in the dispute.

      (4) The tolling provisions of RCW 4.16.190 apply to this chapter except that the running of a statute of limitations under subsection (1) or (2) of this section, or any other applicable statute of limitations for any matter that is the subject of dispute under this chapter, is not tolled as to an individual who had a guardian ad litem, limited or general guardian of the estate, or a special representative to represent the person during the probate or dispute resolution proceeding.

Sec. 8.  RCW 11.96A.110 and 1999 c 42 s 304 are each amended to read as follows:

      (1) Subject to RCW 11.96A.160, in all judicial proceedings under this title that require notice, the notice must be personally served on or mailed to all parties or the parties' virtual representatives at least twenty days before the hearing on the petition unless a different period is provided by statute or ordered by the court.  The date of service shall be determined under the rules of civil procedure. Notwithstanding the foregoing, notice that is provided in an electronic transmission and electronically transmitted complies with this section if the party receiving notice has previously consented in a record delivered to the party giving notice to receiving notice by electronic transmission.  Consent to receive notice by electronic transmission may be revoked at any time by a record delivered to the party giving notice.  Consent is deemed revoked if the party giving notice is unable to electronically transmit two consecutive notices given in accordance with the consent.

      (2) Proof of the service ((or)), mailing, or electronic delivery required in this section must be made by affidavit or declaration filed at or before the hearing.

(3) For the purposes of this title, the terms "electronic transmission" and "electronically transmitted" have the same meaning as set forth in RCW 23B.01.400.

Sec. 9.  RCW 11.96A.120 and 2008 c 6 s 928 are each amended to read as follows:

      (1) With respect to a particular matter that affects a trust, probate estate, guardianship estate, or property subject to a power of attorney, in which the interests of such fiduciary estate and the beneficiaries are not in conflict:
      (a) A guardian may represent and bind the estate that the guardian controls;
      (b) An agent having authority to act with respect to the particular question or dispute may represent and bind the principal;
      (c) A trustee may represent and bind the beneficiaries of the trust; and
      (d) A personal representative of a decedent's estate may represent and bind persons interested in the estate.
      (2) This section is intended to adopt the common law concept of virtual representation.  This section supplements the common law relating to the doctrine of virtual representation and shall not be construed as limiting the application of that common law doctrine.

      (((2))) (3) Any notice requirement in this title is satisfied if ((notice is given as follows)):

      (a) Where an interest in an estate, trust, or nonprobate asset or an interest that may be affected by a power of attorney has been given to persons who comprise a certain class upon the happening of a certain event, notice may be given to the living persons who would constitute the class if the event had happened immediately before the commencement of the proceeding requiring notice, and the persons shall virtually represent all other members of the class;

      (b) Where an interest in an estate, trust, or nonprobate asset or an interest that may be affected by a power of attorney has been given to a living person, and the same interest, or a share in it, is to pass to the surviving spouse or surviving domestic partner or to persons who are, or might be, the distributees, heirs, issue, or other kindred of that living person upon the happening of a future event, notice may be given to that living person, and the living person shall virtually represent the surviving spouse or surviving domestic partner, distributees, heirs, issue, or other kindred of the person; ((and))

      (c) Except as otherwise provided in this subsection, where an interest in an estate, trust, or nonprobate asset or an interest that may be affected by a power of attorney has been given to a person or a class of persons, or both, upon the happening of any future event, and the same interest or a share of the interest is to pass to another person or class of persons, or both, upon the happening of an additional future event, notice may be given to the living person or persons who would take the interest upon the happening of the first event, and the living person or persons shall virtually represent the persons and classes of persons who might take on the happening of the additional future event((.
      (3) A party is not virtually represented by a person receiving notice if a conflict of interest involving the matter is known to exist between the notified person and the party.
      (4))); and
      (d) The holder of a general power of appointment, exercisable either during the power holder's life or by will, or a limited power of appointment, exercisable either during the power holder's life or by will, that excludes as possible appointees only the power holder, his or her estate, his or her creditors, and the creditors of his or her estate, may accept notice and virtually represent and bind persons whose interests, as permissible appointees, takers in default, or otherwise, are subject to the power, to the extent there is no conflict of interest between the holder of the power of appointment and the persons represented with respect to the particular question or dispute.
      (4) A party is not virtually represented by a person receiving notice if a conflict of interest involving the matter is known to exist between the notified person and the party.
      (5) An action taken by the court is conclusive and binding upon each person receiving actual or constructive notice or who is otherwise ((virtually)) represented under this section.

NEW SECTION.  Sec. 10.  A new section is added to chapter 11.96A RCW to read as follows:

      (1) Except as otherwise provided in subsection (2) of this section, with respect to any charitable disposition made in a will or trust, if a particular charitable purpose becomes unlawful, impracticable, impossible to achieve, or wasteful:

      (a) The disposition does not fail, in whole or in part;

      (b) The subject property does not revert to the alternative, residuary, or intestate heirs of the estate or, in the case of a trust, the trustor or the trustor's successors in interest; and

      (c) The court may modify or terminate the trust by directing that the property be applied or distributed, in whole or in part, in a manner consistent with the testator's or trustor's charitable purposes.

      (2) A provision in the terms of a will or charitable trust that would result in distribution of the property to a noncharitable beneficiary prevails over the power of the court under subsection (1) of this section to modify or terminate the will provision or trust only if, when the provision takes effect:

      (a) The property is to revert to the trustor and the trustor is still living; or

      (b) Fewer than twenty-one years have elapsed since the following:

      (i) In the case of a charitable disposition in trust, the date of the trust's creation or the date the trust became irrevocable; or

      (ii) In the case of a charitable disposition in a will, the death of the testator, in the case of a charitable disposition in a will.

      (3) For purposes of this title, a charitable purpose is one for the relief of poverty, the advancement of education or religion, the promotion of health, governmental or municipal purposes, or other purposes the achievement of which is beneficial to a community.

NEW SECTION.  Sec. 11.  A new section is added to chapter 11.96A RCW to read as follows:

      The terms of a will or trust, even if unambiguous, may be reformed by judicial proceedings or binding nonjudicial procedure under this chapter to conform the terms to the intention of the testator or trustor if it is proved by clear, cogent, and convincing evidence, or the parties to a binding nonjudicial agreement agree that there is clear, cogent, and convincing evidence, that both the intent of the testator or trustor and the terms of the will or trust were affected by a mistake of fact or law, whether in expression or inducement.

Sec. 12.  RCW 11.97.010 and 2003 c 254 s 4 are each amended to read as follows:

(1) The trustor of a trust may by the provisions of the trust relieve the trustee from any or all of the duties, restrictions, and liabilities which would otherwise be imposed by chapters 11.95, 11.98, 11.100, and 11.104A RCW and RCW 11.106.020, or may alter or deny any or all of the privileges and powers conferred by those provisions; or may add duties, restrictions, liabilities, privileges, or powers to those imposed or granted by those provisions.  If any specific provision of those chapters is in conflict with the provisions of a trust, the provisions of the trust control whether or not specific reference is made in the trust to any of those chapters, except as provided in RCW 6.32.250, 11.96A.190, 19.36.020, 11.98.200 through 11.98.240 ((and)), 11.95.100 through 11.95.150, and chapter 11.--- RCW (the new chapter created in section 39 of this act).  In no event may a trustee be relieved of the duty to act in good faith and with honest judgment or the duty to provide information to beneficiaries as required in this section.  Notwithstanding the breadth of discretion granted to a trustee in the terms of the trust, including the use of such terms as "absolute," "sole," or "uncontrolled," the trustee shall exercise a discretionary power in good faith and in accordance with the terms and purposes of the trust and the interests of the beneficiaries.
      (2) Within sixty days after the date of acceptance of the position of trustee of an irrevocable trust, or the date the trustee of a formerly revocable trust acquires knowledge that the trust has become irrevocable, whether by the death of the trustor or otherwise, the trustee shall give notice of:  (a) The existence of the trust, (b) the identity of the trustor or trustors, (c) the trustee's name, address, and telephone number, and (d) the right to request such information as is reasonably necessary to enable the notified person to enforce his or her rights under the trust, to all persons interested in the trust, as defined in RCW 11.96A.030, and who would be entitled to notice under RCW 11.96A.110 and 11.96A.120 if they were a party to judicial proceedings regarding the trust.  If any such person is a minor and no guardian has been appointed for such person by any court, then such notice may be given to a parent of the person.  If a person otherwise entitled to notice under this section is a charitable organization, and the charitable organization's only interest in the trust is a future interest that may be revoked, then such notice shall instead be given to the attorney general.  A trustee who gives notice pursuant to this section satisfies the duty to inform the beneficiaries of the existence of the trust.  The notice required under this subsection (2) applies only to irrevocable trusts created after December 31, 2011, and revocable trusts that become irrevocable after December 31, 2011, provided that all common law duties of a trustee to notify beneficiaries applicable to trusts created or that became irrevocable before such date are not affected.
      (3) A trustee shall keep all persons interested in the trust, as defined in RCW 11.96A.030, and who would be entitled to notice under RCW 11.96A.110 and 11.96A.120 if they were a party to judicial proceedings regarding the trust, reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests.  A report that contains the following is presumed to satisfy the trustee's duty to keep such persons reasonably informed for the relevant period of trust administration:
      (a) A statement of receipts and disbursements of principal and income that have occurred during the accounting period;
      (b) A statement of the assets and liabilities of the trust and their values at the beginning and end of the period;
      (c) The trustee's compensation for the period;
      (d) The agents hired by the trustee, their relationship to the trustee, if any, and their compensation, for the period;
      (e) Disclosure of any pledge, mortgage, option, or lease of trust property, or other agreement affecting trust property binding for a period of five years or more that was granted or entered into during the accounting period;
      (f) Disclosure of all transactions during the period that are equivalent to one of the types of transactions described in section 32 of this act or otherwise could have been affected by a conflict between the trustee's fiduciary and personal interests;
      (g) A statement that the recipient of the account information may petition the superior court pursuant to chapter 11.106 RCW to obtain review of the statement and of acts of the trustee disclosed in the statement; and
      (h) A statement that claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives the statement.
      (4) Unless unreasonable under the circumstances, a trustee shall promptly respond to any beneficiary's request for information related to the administration of the trust.
      (5) If a person entitled to notice under this section requests information reasonably necessary to enable the notified person to enforce his or her rights under the trust, then the trustee must provide such information within sixty days of receipt of such request.  Delivery of the entire trust instrument to the persons entitled to notice under this section who request information concerning the terms of the trust reasonably necessary to enable the notified person to enforce his or her rights under the trust is deemed to satisfy the trustee's obligations under this subsection.

NEW SECTION.  Sec. 13.  A new section is added to chapter 11.97 RCW to read as follows:

      The rules of construction that apply in this state to the interpretation of a will and disposition of property by will also apply as appropriate to the interpretation of the terms of a trust and the disposition of the trust property.

Sec. 14.  RCW 11.98.009 and 1985 c 30 s 40 are each amended to read as follows:

      Except as provided in this section, this chapter applies to express trusts executed by the trustor after June 10, 1959, and does not apply to resulting trusts, constructive trusts, business trusts where certificates of beneficial interest are issued to the beneficiary, investment trusts, voting trusts, trusts in the nature of mortgages or pledges, ((trusts created by the judgment or decree of a court not sitting in probate,)) liquidation trusts, or trusts for the sole purpose of paying dividends, interest, interest coupons, salaries, wages, pensions or profits, trusts created in deposits in any financial institution pursuant to chapter 30.22 RCW, unless any such trust which is created in writing incorporates this chapter in whole or in part.

NEW SECTION.  Sec. 15.  A new section is added to chapter 11.98 RCW to read as follows:

      METHODS OF CREATING A TRUST.  A trust may be created by:

      (1) Transfer of property to another person as trustee during the trustor's lifetime or by will or other disposition taking effect upon the trustor's death;

      (2) Declaration by the owner of property that the owner holds identifiable property as trustee; or

      (3) Exercise of a power of appointment in favor of a trustee.

NEW SECTION.  Sec. 16.  A new section is added to chapter 11.98 RCW to read as follows:

      REQUIREMENTS FOR CREATION.  (1) A trust is created only if:

      (a) The trustor has capacity to create a trust;

      (b) The trustor indicates an intention to create the trust;

      (c) The trust has a definite beneficiary or is:

      (i) A charitable trust;

      (ii) A trust for the care of an animal, as provided in chapter 11.118 RCW; or

      (iii) A trust for a noncharitable purpose, as provided in section 20 of this act;

      (d) The trustee has duties to perform; and

      (e) The same person is not the sole trustee and sole beneficiary.

      (2) A beneficiary is definite if the beneficiary can be ascertained now or in the future, subject to any applicable rule against perpetuities.

      (3) A power in a trustee to select a beneficiary from an indefinite class is valid, except to the extent that the trustee may distribute trust property to himself or herself.  If the power is not exercised within a reasonable time, the power fails and the property subject to the power passes to the persons who would have taken the property had the power not been conferred.

NEW SECTION.  Sec. 17.  A new section is added to chapter 11.98 RCW to read as follows:

      TRUSTS CREATED IN OTHER JURISDICTIONS.  A trust not created by will is validly created if its creation complies with the law of the jurisdiction in which the trust instrument was executed, or the law of the jurisdiction in which, at the time of creation or in the case of a revocable trust, at the time the trust became irrevocable:

      (1) The trustor was domiciled, had a residence, or was a national;

      (2) The trustee was domiciled or had a place of business; or

      (3) Any trust property was located.

NEW SECTION.  Sec. 18.  A new section is added to chapter 11.98 RCW to read as follows:

      TRUST PURPOSES.  A trust may be created only to the extent its purposes are lawful, not contrary to public policy, and possible to achieve.

NEW SECTION.  Sec. 19.  A new section is added to chapter 11.98 RCW to read as follows:

      EVIDENCE OF ORAL TRUST.  Except as required by a statute other than this title, a trust need not be evidenced by a trust instrument, but the creation of an oral trust and its terms may be established only by clear, cogent, and convincing evidence.

NEW SECTION.  Sec. 20.  A new section is added to chapter 11.98 RCW to read as follows:

      NONCHARITABLE TRUST WITHOUT ASCERTAINABLE BENEFICIARY.  Except as otherwise provided in chapter 11.118 RCW or by another statute, the following rules apply:

      (1) A trust may be created for a noncharitable purpose without a definite or definitely ascertainable beneficiary or for a noncharitable but otherwise valid purpose to be selected by the trustee.  The trust may not be enforced for longer than the time period specified in RCW 11.98.130 as the period during which a trust cannot be deemed to violate the rule against perpetuities;

      (2) A trust authorized by this section may be enforced by a person appointed in the terms of the trust or, if no person is so appointed, by a person appointed by the court; and

      (3) Property of a trust authorized by this section may be applied only to its intended use, except to the extent the court determines that the value of the trust property exceeds the amount required for the intended use.  Except as otherwise provided in the terms of the trust, property not required for the intended use must be distributed to the trustor, if then living, otherwise to the trustor's successors in interest.  Successors in interest include the beneficiaries under the trustor's will, if the trustor has a will, or, in the absence of an effective will provision, the trustor's heirs.

Sec. 21.  RCW 11.98.039 and 2005 c 97 s 13 are each amended to read as follows:

      (1) Where a vacancy occurs in the office of the trustee and there is a successor trustee who is willing to serve as trustee and (a) is named in the governing instrument as successor trustee or (b) has been selected to serve as successor trustee under the procedure established in the governing instrument for the selection of a successor trustee, the outgoing trustee, or any other interested party, shall give notice of such vacancy, whether arising because of the trustee's resignation or because of any other reason, and of the successor trustee's agreement to serve as trustee, to each adult distributee or permissible distributee of trust income or of trust principal or of both trust income and trust principal.  If there are no such adults, no notice need be given.  The successor trustee named in the governing instrument or selected pursuant to the procedure therefor established in the governing instrument shall be entitled to act as trustee except for good cause or disqualification.  The successor trustee shall serve as of the effective date of the discharge of the predecessor trustee as provided in RCW 11.98.041.

      (2) Where a vacancy exists or occurs in the office of the trustee and there is no successor trustee who is named in the governing instrument or who has been selected to serve as successor trustee under the procedure established in the governing instrument for the selection of a successor trustee, and who is willing to serve as trustee, then all parties with an interest in the trust may agree to a nonjudicial change of the trustee under RCW 11.96A.220.  The successor trustee shall serve as of the effective date of the discharge of the predecessor trustee as provided in RCW 11.98.041 or, in circumstances where there is no predecessor trustee, as of the effective date of the trustee's appointment.

      (3) When there is a desire to name one or more cotrustees to serve with the existing trustee, then all parties with an interest in the trust may agree to the nonjudicial addition of one or more cotrustees under RCW 11.96A.220.  The additional cotrustee shall serve as of the effective date of the cotrustee's appointment.

      (4) Unless subsection (1), (2), or (3) of this section applies, any beneficiary of a trust, the trustor, if alive, or the trustee may petition the superior court having jurisdiction for the appointment or change of a trustee or cotrustee under the procedures provided in RCW 11.96A.080 through 11.96A.200:  (a) Whenever the office of trustee becomes vacant; (b) upon filing of a petition of resignation by a trustee; or (c) for any other reasonable cause.

      (5) For purposes of this subsection, the term fiduciary includes both trustee and personal representative.

      (a) Except as otherwise provided in the governing instrument, a successor fiduciary, absent actual knowledge of a breach of fiduciary duty:  (i) Is not liable for any act or omission of a predecessor fiduciary and is not obligated to inquire into the validity or propriety of any such act or omission; (ii) is authorized to accept as conclusively accurate any accounting or statement of assets tendered to the successor fiduciary by a predecessor fiduciary; and (iii) is authorized to receipt only for assets actually delivered and has no duty to make further inquiry as to undisclosed assets of the trust or estate.

      (b) Nothing in this section relieves a successor fiduciary from liability for retaining improper investments, nor does this section in any way bar the successor fiduciary, trust beneficiaries, or other party in interest from bringing an action against a predecessor fiduciary arising out of the acts or omissions of the predecessor fiduciary, nor does it relieve the successor fiduciary of liability for its own acts or omissions except as specifically stated or authorized in this section.

(6) A change of trustee to a foreign trustee does not change the situs of the trust.  Transfer of situs of a trust to another jurisdiction requires compliance with section 22 of this act and RCW 11.98.045 through 11.98.055.

NEW SECTION.  Sec. 22.  A new section is added to chapter 11.98 RCW to read as follows:

      SITUS OF TRUST AND GOVERNING LAW.  (1) If provisions of a trust instrument designate Washington as the situs of the trust or designate Washington law to govern the trust or any of its terms, then the situs of the trust is Washington provided that one of the following conditions is met:

      (a) A trustee has a place of business in or a trustee is a resident of Washington; or

      (b) More than an insignificant part of the trust administration occurs in Washington; or

      (c) The trustor resides in Washington at the time situs is being established, or resided in Washington at the time the trust became irrevocable; or

      (d) One or more of the beneficiaries resides in Washington; or

      (e) An interest in real property located in Washington is an asset of the trust.

      (2)(a) Unless the trust instrument designates a state other than Washington as the situs of the trust and does not expressly authorize transfer of situs, the trustee may register the trust as a Washington trust if any of the factors in subsection (1)(a) through (e) of this section are present.  The trustee shall register the trust by filing with the clerk of the court in any county where venue lies for the trust under RCW 11.96A.050, a statement including the following information:

      (i) The name and address of the trustee;

      (ii) The date of the trust, name of the trustor, and name of the trust, if any;

      (iii) The factor or factors listed in subsection (1)(a) through (e) of this section that are present for the trust and which qualify the trust for registration.

      (b) Within five days of filing the registration with the court, the trustee shall mail a copy of the registration to each person who would be entitled to notice under RCW 11.97.010 and has not waived notice of the registration, in writing, filed in the cause, together with a notice that must be in substantially the same form as set forth in this section.  Persons receiving such notice shall have thirty days from the date of filing the registration to file a petition in the court objecting to such registration and requesting the court to issue an order that Washington is not the proper situs of the trust, and to serve a copy of such petition upon the trustee or the trustee's lawyer.  If a petition objecting to the registration is filed within thirty days of the date of filing the registration, the trustee must request the court to fix a time and place for the hearing of the petition and notify by mail, personal service or electronic transmission, if a valid consent to electronic transmission is in effect under the terms of RCW 11.96A.110, all persons who were entitled to notice of the registration of the time and place of the hearing, not less than ten days before the hearing on the petition.

      (c) Unless a person receiving notice of the registration files a petition with the court objecting to the registration within thirty days of the date of filing the registration, the registration shall be deemed the equivalent of an order entered by the court declaring that the situs of the trust is Washington.  After expiration of the thirty-day period following filing of the registration, the trustee may obtain a certificate of registration signed by the clerk, and issued under the seal of the court, which may be in the form specified in (d) of this subsection.

      (d) Notice of registration and certificates of registration may be in the following form:

      (i) Notice form:

 

      NOTICE OF FILING OF REGISTRATION OF [NAME AND DATE OF TRUST] AS A WASHINGTON TRUST

      NOTICE IS GIVEN that the attached Registration of Trust was filed by the undersigned in the above-entitled court on the . . . . day of . . . . . ., 20. . .; unless you file a petition in the above-entitled court objecting to such registration and requesting the court to issue an order that Washington is not the proper situs of the trust, and serve a copy thereof upon the trustee or the trustee's lawyer, within thirty days after the date of the filing, the registration will be deemed the equivalent of an order entered by the court declaring that the situs of the trust is Washington.

      If you file and serve a petition within the period specified, the undersigned will request the court to fix a time and place for the hearing of your petition, and you will be notified of the time and place thereof, by mail, or personal service, not less than ten days before the hearing on the petition.

      (ii) Certificate of Registration:

State of Washington, County of . . . . . .

In the superior court of the county of . . . . . .

      Whereas, the attached Registration of Trust was filed with this court on . . . ., the attached Notice of Filing Registration of Trust and Affidavit of Mailing Notice of Filing Registration of Trust were filed with this court on . . . ., and no objections to such Registration have been filed with this court, the trust known as . . . ., under trust agreement dated . . . ., between . . . . as Trustor and . . . . as Trustee, is hereby registered as a Washington trust.

   Witness my hand and the seal of said court this . . . day of . . . . . .,  20 . . ..

 

      (3) If the instrument establishing a trust does not designate Washington as the situs or designate Washington law to apply to the trust, and the trustee of the trust has not registered the trust as allowed in subsection (2) of this section, the situs of the trust is Washington if the conditions specified in this subsection (3) are met.

      (a) For a testamentary trust, the situs of the trust is Washington if:

      (i) The will was admitted to probate in Washington; or

      (ii) The will has not been admitted to probate in Washington, but any trustee of the trust resides or has a place of business in Washington, any beneficiary entitled to notice under RCW 11.97.010 resides in Washington, or any real property that is an asset of the trust is located in Washington.

      (b) For an intervivos trust where the trustor is domiciled in Washington either when the trust becomes irrevocable or, in the case of a revocable trust, when judicial proceedings under chapter 11.96A RCW are commenced, the situs of the trust is Washington if:

      (i) The trustor is living and Washington is the trustor's domicile or any of the trustees reside in or have a place of business in Washington; or

      (ii) The trustor is deceased, situs has not previously been established by any court proceeding, and:

      (A) The trustor's will was admitted to probate in Washington;

      (B) The trustor's will was not admitted to probate in Washington, but any person entitled to notice under RCW 11.97.010 resides in Washington, any trustee resides or has a place of business in Washington, or any real property that is an asset of the trust is located in Washington.

      (c) If the situs of the trust is not determined under (a) or (b) of this subsection, the determination regarding the situs of the trust is a matter for purposes of RCW 11.96A.030.  Whether Washington is the situs shall be determined by a court in a judicial proceeding conducted under RCW 11.96A.080 if:

      (i) A trustee has a place of business in or a trustee is a resident of Washington; or

      (ii) More than an insignificant part of the trust administration occurs in Washington; or

      (iii) One or more of the beneficiaries resides in Washington; or

      (iv) An interest in real property located in Washington is an asset of the trust.

      (d) Determination of situs under (c) of this subsection (3) cannot be made by nonjudicial agreement under RCW 11.96A.220.

Sec. 23.  RCW 11.98.045 and 1985 c 30 s 45 are each amended to read as follows:

      (1) ((A trustee may transfer trust assets to a trustee in another jurisdiction or may transfer the place of administration of a trust to another jurisdiction)) If a trust is a Washington trust under section 22 of this act, a trustee may transfer the situs of the trust to a jurisdiction other than Washington if the trust instrument so provides or in accordance with RCW 11.98.051 or 11.98.055.

      (2) Transfer under this section is permitted only if:

      (a) The transfer would facilitate the economic and convenient administration of the trust;

      (b) The transfer would not materially impair the interests of the beneficiaries or others interested in the trust;

      (c) The transfer does not violate the terms of the trust; ((and))

      (d) The new trustee is qualified and able to administer the trust or such assets on the terms set forth in the trust; and
      (e) The trust meets at least one condition for situs listed in section 22(1) of this act with respect to the new jurisdiction.

      (3) Acceptance of such transfer by a foreign corporate trustee or trust company under this section((,)) or RCW 11.98.051((,)) or 11.98.055 shall not be construed to be doing a "trust business" as described in RCW 30.08.150(9).

Sec. 24.  RCW 11.98.051 and 1999 c 42 s 619 are each amended to read as follows:

      (1) The trustee may transfer ((trust assets or the place of administration)) trust situs (a) in accordance with RCW 11.96A.220((.  In addition, the trustee shall give)); or (b) by giving written notice to those persons entitled to notice as provided for under RCW 11.96A.110 and to the attorney general in the case of a charitable trust subject to chapter 11.110 RCW not less than sixty days before initiating the transfer.  The notice ((shall)) must:

      (a) State the name and mailing address of the trustee;

      (b) Include a copy of the governing instrument of the trust;

      (c) Include a statement of assets and liabilities of the trust dated within ninety days of the notice;

      (d) State the name and mailing address of the trustee to whom the ((assets or administration)) trust will be transferred together with evidence that the trustee has agreed to accept the ((assets or)) trust ((administration)) in the manner provided by law of the new ((place of administration)) situs.  The notice ((shall)) must also contain a statement of the trustee's qualifications and the name of the court, if any, having jurisdiction of that trustee or in which a proceeding with respect to the administration of the trust may be heard;

      (e) State the facts supporting the requirements of RCW 11.98.045(2);

      (f) Advise the beneficiaries of the ((right to petition for judicial determination of the proposed transfer as provided in RCW 11.98.055)) date, not less than sixty days after the giving of the notice, by which the beneficiary must notify the trustee of an objection to the proposed transfer; and

      (g) Include a form on which the recipient may indicate consent or objection to the proposed transfer.

      (2) If the ((trustee receives written consent to the proposed transfer from all persons entitled to notice)) date upon which the beneficiaries' right to object to the transfer expires without receipt by the trustee of any objection, the trustee may transfer the trust ((assets or place of administration)) situs as provided in the notice.  ((Transfer in accordance with the notice is a full discharge of the trustee's duties in relation to all property referred to therein.  Any person dealing with the trustee is entitled to rely on the authority of the trustee to act and is not obliged to inquire into the validity or propriety of the transfer.)) If the trust was registered under RCW 11.98.045(2), the trustee must file a notice of transfer of situs and termination of registration with the court of the county where the trust was registered.
      (3) The authority of a trustee under this section to transfer a trust's situs terminates if a beneficiary notifies the trustee of an objection to the proposed transfer on or before the date specified in the notice.
      (4) A change of trust situs does not authorize a change of trustee.  Change of trustee of a trust requires compliance with RCW 11.98.039.

Sec. 25.  RCW 11.98.055 and 1999 c 42 s 620 are each amended to read as follows:

      (1) Any trustee, beneficiary, or beneficiary representative may petition the superior court of the county of the situs of the trust for a transfer of ((trust assets or transfer of the place of administration)) the situs of a trust in accordance with RCW 11.96A.080 through 11.96A.200.

      (2) At the conclusion of the hearing, if the court finds the requirements of RCW 11.98.045(2) have been satisfied, it may direct the transfer of ((trust assets or the place of trust administration)) the situs of a trust on such terms and conditions as it deems appropriate.  The court in its discretion may provide for payment from the trust of reasonable fees and expenses for any party to the proceeding.  Delivery of trust assets in accordance with the court's order is a full discharge of the trustee's duties in relation to all transferred property.

(3) A change of trust situs does not authorize a change of trustee.  Change of trustee of a trust requires compliance with RCW 11.98.039.

Sec. 26.  RCW 11.98.070 and 2010 c 8 s 2091 are each amended to read as follows:

      A trustee, or the trustees jointly, of a trust, in addition to the authority otherwise given by law, have discretionary power to acquire, invest, reinvest, exchange, sell, convey, control, divide, partition, and manage the trust property in accordance with the standards provided by law, and in so doing may:

      (1) Receive property from any source as additions to the trust or any fund of the trust to be held and administered under the provisions of the trust;

      (2) Sell on credit;

      (3) Grant, purchase or exercise options;

      (4) Sell or exercise subscriptions to stock or other corporate securities and to exercise conversion rights;

      (5) Deposit stock or other corporate securities with any protective or other similar committee;

      (6) Assent to corporate sales, leases, and encumbrances;

      (7) Vote trust securities in person or by proxy with power of substitution; and enter into voting trusts;

      (8) Register and hold any stocks, securities, or other property in the name of a nominee or nominees without mention of the trust relationship, provided the trustee or trustees are liable for any loss occasioned by the acts of any nominee, except that this subsection shall not apply to situations covered by subsection (31) of this section;

      (9) Grant leases of trust property, with or without options to purchase or renew, to begin within a reasonable period and for terms within or extending beyond the duration of the trust, for any purpose including exploration for and removal of oil, gas and other minerals; enter into community oil leases, pooling and unitization agreements;

      (10) Subdivide, develop, dedicate to public use, make or obtain the vacation of public plats, adjust boundaries, partition real property, and on exchange or partition to adjust differences in valuation by giving or receiving money or money's worth;

      (11) Compromise or submit claims to arbitration;

      (12) Borrow money, secured or unsecured, from any source, including a corporate trustee's banking department, or from the individual trustee's own funds;

      (13) Make loans, either secured or unsecured, at such interest as the trustee may determine to any person, including any beneficiary of a trust, except that no trustee who is a beneficiary of a trust may participate in decisions regarding loans to such beneficiary from the trust((, unless the loan is as described in RCW 83.110.020(2),)) and then only to the extent of the loan, and also except that if a beneficiary or the grantor of a trust has the power to change a trustee of the trust, the power to loan shall be limited to loans at a reasonable rate of interest and for adequate security;

      (14) Determine the hazards to be insured against and maintain insurance for them;

      (15) Select any part of the trust estate in satisfaction of any partition or distribution, in kind, in money or both; make nonpro rata distributions of property in kind; allocate particular assets or portions of them or undivided interests in them to any one or more of the beneficiaries without regard to the income tax basis of specific property allocated to any beneficiary and without any obligation to make an equitable adjustment;

      (16)(a) Pay ((any income or principal distributable to or for the use of any beneficiary, whether that beneficiary is under legal disability, to the beneficiary or for the beneficiary's use to the beneficiary's parent, guardian, custodian under the uniform gifts to minors act of any state, person with whom he or she resides, or third person)) an amount distributable to a beneficiary who is under a legal disability or who the trustee reasonably believes is incapacitated, by paying it directly to the beneficiary or applying it for the beneficiary's benefit, or by:
      (i) Paying it to the beneficiary's guardian;
      (ii) Paying it to the beneficiary's custodian under chapter 11.114 RCW, and, for that purpose, creating a custodianship;
      (iii) If the trustee does not know of a guardian or custodian, paying it to an adult relative or other person having legal or physical care or custody of the beneficiary, with instructions to expend the funds on the beneficiary's behalf; or
      (iv) Managing it as a separate fund on the beneficiary's behalf, subject to the beneficiary's continuing right to withdraw the distribution.
      (b) If the trustee pays any amount to a third party under (a)(i) through (iii) of this subsection, the trustee has no further obligations regarding the amounts so paid;

      (17) Change the character of or abandon a trust asset or any interest in it;

      (18) Mortgage, pledge the assets or the credit of the trust estate, or otherwise encumber trust property, including future income, whether an initial encumbrance or a renewal or extension of it, for a term within or extending beyond the term of the trust, in connection with the exercise of any power vested in the trustee;

      (19) Make ordinary or extraordinary repairs or alterations in buildings or other trust property, demolish any improvements, raze existing structures, and make any improvements to trust property;

      (20) Create restrictions, easements, including easements to public use without consideration, and other servitudes;

      (21) Manage any business interest, including any farm or ranch interest, regardless of form, received by the trustee from the trustor of the trust, as a result of the death of a person, or by gratuitous transfer from any other transferor, and with respect to the business interest, have the following powers:

      (a) To hold, retain, and continue to operate that business interest solely at the risk of the trust, without need to diversify and without liability on the part of the trustee for any resulting losses;

      (b) To enlarge or diminish the scope or nature or the activities of any business;

      (c) To authorize the participation and contribution by the business to any employee benefit plan, whether or not qualified as being tax deductible, as may be desirable from time to time;

      (d) To use the general assets of the trust for the purpose of the business and to invest additional capital in or make loans to such business;

      (e) To endorse or guarantee on behalf of the trust any loan made to the business and to secure the loan by the trust's interest in the business or any other property of the trust;

      (f) To leave to the discretion of the trustee the manner and degree of the trustee's active participation in the management of the business, and the trustee is authorized to delegate all or any part of the trustee's power to supervise, manage, or operate to such persons as the trustee may select, including any partner, associate, director, officer, or employee of the business; and also including electing or employing directors, officers, or employees of the trustee to take part in the management of the business as directors or officers or otherwise, and to pay that person reasonable compensation for services without regard to the fees payable to the trustee;

      (g) To engage, compensate, and discharge or to vote for the engaging, compensating, and discharging of managers, employees, agents, lawyers, accountants, consultants, or other representatives, including anyone who may be a beneficiary of the trust or any trustee;

      (h) To cause or agree that surplus be accumulated or that dividends be paid;

      (i) To accept as correct financial or other statements rendered by any accountant for any sole proprietorship or by any partnership or corporation as to matters pertaining to the business except upon actual notice to the contrary;

      (j) To treat the business as an entity separate from the trust, and in any accounting by the trustee it is sufficient if the trustee reports the earning and condition of the business in a manner conforming to standard business accounting practice;

      (k) To exercise with respect to the retention, continuance, or disposition of any such business all the rights and powers that the trustor of the trust would have if alive at the time of the exercise, including all powers as are conferred on the trustee by law or as are necessary to enable the trustee to administer the trust in accordance with the instrument governing the trust, subject to any limitations provided for in the instrument; and

      (l) To satisfy contractual and tort liabilities arising out of an unincorporated business, including any partnership, first out of the business and second out of the estate or trust, but in no event may there be a liability of the trustee, except as provided in RCW 11.98.110 (2) and (4), and if the trustee is liable, the trustee is entitled to indemnification from the business and the trust, respectively;

      (22) Participate in the establishment of, and thereafter in the operation of, any business or other enterprise according to subsection (21) of this section except that the trustee shall not be relieved of the duty to diversify;

      (23) Cause or participate in, directly or indirectly, the formation, reorganization, merger, consolidation, dissolution, or other change in the form of any corporate or other business undertaking where trust property may be affected and retain any property received pursuant to the change;

      (24) Limit participation in the management of any partnership and act as a limited or general partner;

      (25) Charge profits and losses of any business operation, including farm or ranch operation, to the trust estate as a whole and not to the trustee; make available to or invest in any business or farm operation additional moneys from the trust estate or other sources;

      (26) Pay reasonable compensation to the trustee or co-trustees considering all circumstances including the time, effort, skill, and responsibility involved in the performance of services by the trustee and reimburse the trustee, with interest as appropriate, for expenses that were properly incurred in the administration of the trust;

      (27) Employ persons, including lawyers, accountants, investment advisors, or agents, even if they are associated with the trustee, to advise or assist the trustee in the performance of the trustee's duties or to perform any act, regardless of whether the act is discretionary, and to act without independent investigation upon their recommendations, except that:

      (a) A trustee may not delegate all of the trustee's duties and responsibilities;

      (b) This power to employ and to delegate duties does not relieve the trustee of liability for such person's discretionary acts, that, if done by the trustee, would result in liability to the trustee;

      (c) This power to employ and to delegate duties does not relieve the trustee of the duty to select and retain a person with reasonable care;

      (d) The trustee, or a successor trustee, may sue the person to collect any damages suffered by the trust estate even though the trustee might not be personally liable for those damages, subject to the statutes of limitation that would have applied had the claim been one against the trustee who was serving when the act or failure to act occurred;

      (28) Appoint an ancillary trustee or agent to facilitate management of assets located in another state or foreign country;

      (29) Retain and store such items of tangible personal property as the trustee selects and pay reasonable storage charges thereon from the trust estate;

      (30) Issue proxies to any adult beneficiary of a trust for the purpose of voting stock of a corporation acting as the trustee of the trust;

      (31) Place all or any part of the securities at any time held by the trustee in the care and custody of any bank, trust company, or member firm of the New York Stock Exchange with no obligation while the securities are so deposited to inspect or verify the same and with no responsibility for any loss or misapplication by the bank, trust company, or firm, so long as the bank, trust company, or firm was selected and retained with reasonable care, and have all stocks and registered securities placed in the name of the bank, trust company, or firm, or in the name of its nominee, and to appoint such bank, trust company, or firm agent as attorney to collect, receive, receipt for, and disburse any income, and generally may perform, but is under no requirement to perform, the duties and services incident to a so-called "custodian" account;

      (32) Determine at any time that the corpus of any trust is insufficient to implement the intent of the trust, and upon this determination by the trustee, terminate the trust by distribution of the trust to the current income beneficiary or beneficiaries of the trust or their legal representatives, except that this determination may only be made by the trustee if the trustee is neither the grantor nor the beneficiary of the trust, and if the trust has no charitable beneficiary;

      (33) Continue to be a party to any existing voting trust agreement or enter into any new voting trust agreement or renew an existing voting trust agreement with respect to any assets contained in trust; ((and))

      (34)(a) Donate a qualified conservation easement, as defined by ((section)) 26 U.S.C. Sec. 2031(c) of the federal internal revenue code, on any real property, or consent to the donation of a qualified conservation easement on any real property by a personal representative of an estate of which the trustee is a devisee, to obtain the benefit of the estate tax exclusion allowed under ((section)) 26 U.S.C. Sec. 2031(c) of the federal internal revenue code or the deduction allowed under ((section)) 26 U.S.C. Sec. 2055(f) of the federal internal revenue code as long as:

      (i)(A) The governing instrument authorizes the donation of a qualified conservation easement on the real property; or

      (B) Each beneficiary that may be affected by the qualified conservation easement consents to the donation under the provisions of chapter 11.96A RCW; and

      (ii) The donation of a qualified conservation easement will not result in the insolvency of the decedent's estate.

      (b) The authority granted under this subsection includes the authority to amend a previously donated qualified conservation easement, as defined under ((section)) 26 U.S.C. Sec. 2031(c)(8)(B) of the federal internal revenue code, and to amend a previously donated unqualified conservation easement for the purpose of making the easement a qualified conservation easement under ((section)) 26 U.S.C. Sec. 2031(c)(8)(B);
      (35) Pay or contest any claim, settle a claim by or against the trust, and release, in whole or in part, a claim belonging to the trust;
      (36) Exercise elections with respect to federal, state, and local taxes;
      (37) Prosecute or defend an action, claim, or judicial proceeding in any jurisdiction to protect trust property and the trustee in the performance of the trustee's duties;
      (38) On termination of the trust, exercise the powers appropriate to wind up the administration of the trust and distribute the trust property to the persons entitled to it; and
      (39) Select a mode of payment under any employee benefit or retirement plan, annuity, or life insurance payable to the trustee, exercise rights thereunder, including exercise of the right to indemnification for expenses and against liabilities, and take appropriate action to collect the proceeds.

NEW SECTION.  Sec. 27.  A new section is added to chapter 11.98 RCW to read as follows:

      DISTRIBUTION UPON TERMINATION.  (1) Upon termination or partial termination of a trust, the trustee may send, by personal service, certified mail with return receipt requested, or in an electronic transmission if there is a consent of the recipient to electronic transmission then in effect under the terms of RCW 11.96A.110, to the beneficiaries a proposed plan to distribute existing trust assets.  The right of any beneficiary to object to the plan to distribute existing trust assets, including the right to object to nonpro rata distributions authorized under RCW 11.98.070(15), terminates if the beneficiary does not notify the trustee of an objection within thirty days after the proposal was sent but only if the proposal informed the beneficiary of the right to object and of the time allowed for objection.

      (2) Upon the occurrence of an event terminating or partially terminating a trust, the trustee shall proceed expeditiously to distribute the trust property to the persons entitled to it, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, and taxes.

NEW SECTION.  Sec. 28.  A new section is added to chapter 11.98 RCW to read as follows:

      NONLIABILITY OF THIRD PERSONS WITHOUT KNOWLEDGE OF BREACH.  (1) A person other than a beneficiary who in good faith assists a trustee, or who in good faith and for value deals with a trustee, without knowledge that the trustee is exceeding or improperly exercising the trustee's powers is protected from liability as if the trustee properly exercised the power.

      (2) A person other than a beneficiary who in good faith deals with a trustee is not required to inquire into the extent of the trustee's powers or the propriety of their exercise.

      (3) A person who in good faith delivers assets to a trustee need not ensure their proper application.

      (4) A person other than a beneficiary who in good faith assists a former trustee, or who in good faith and for value deals with a former trustee, without knowledge that the trusteeship has terminated is protected from liability as if the former trustee were still a trustee.

      (5) Comparable protective provisions of other laws relating to commercial transactions or transfer of securities by fiduciaries prevail over the protection provided by this section.

NEW SECTION.  Sec. 29.  A new section is added to chapter 11.98 RCW to read as follows:

      EXCULPATION OF TRUSTEE.  (1) An exculpatory term which was inserted as the result of an abuse of a fiduciary or confidential relationship between the trustor and the trustee is unenforceable.

      (2) An exculpatory term drafted or caused to be drafted by the trustee is invalid as an abuse of a fiduciary or confidential relationship unless the trustee proves that the exculpatory term is fair under the circumstances and that its existence and contents were adequately communicated to the trustor.

NEW SECTION.  Sec. 30.  A new section is added to chapter 11.98 RCW to read as follows:

      BENEFICIARY'S CONSENT, RELEASE, OR RATIFICATION.  A trustee is not liable to a beneficiary for breach of trust if the beneficiary consented to the conduct constituting the breach, released the trustee from liability for the breach, or ratified the transaction constituting the breach, unless:

      (1) The consent, release, or ratification of the beneficiary was induced by improper conduct of the trustee; or

      (2) At the time of the consent, release, or ratification, the beneficiary did not know of the beneficiary's rights or of the material facts relating to the breach.

NEW SECTION.  Sec. 31.  A new section is added to chapter 11.98 RCW to read as follows:

      CERTIFICATION OF TRUST.  (1) Instead of furnishing a copy of the trust instrument to a person other than a beneficiary, the trustee may furnish to the person a certification of trust containing the following information:

      (a) That the trust exists and the date the trust instrument was executed;

      (b) The identity of the trustor;

      (c) The identity and address of the currently acting trustee;

      (d) Relevant powers of the trustee;

      (e) The revocability or irrevocability of the trust and the identity of any person holding a power to revoke the trust;

      (f) The authority of cotrustees to sign or otherwise authenticate and whether all or less than all are required in order to exercise powers of the trustee; and

      (g) The name of the trust or the titling of the trust property.

      (2) A certification of trust may be signed or otherwise authenticated by any trustee or by an attorney for the trust.

      (3) A certification of trust must state that the trust has not been revoked, modified, or amended in any manner that would cause the representations contained in the certification of trust to be incorrect.

      (4) A certification of trust need not contain the dispositive terms of a trust.

      (5) A recipient of a certification of trust may require the trustee to furnish copies of those excerpts from the original trust instrument and later amendments which designate the trustee and confer upon the trustee the power to act in the pending transaction or any other reasonable information.

      (6) A person who acts in reliance upon a certification of trust without knowledge that the representations contained therein are incorrect is not liable to any person for so acting and may assume without inquiry the existence of the facts contained in the certification.  Knowledge of the terms of the trust may not be inferred solely from the fact that a copy of all or part of the trust instrument is held by the person relying upon the certification.

      (7) A person who in good faith enters into a transaction in reliance upon a certification of trust may enforce the transaction against the trust property as if the representations contained in the certification were correct.

      (8) A person making a demand for the trust instrument in addition to a certification of trust or excerpts is liable for damages, including reasonable attorney fees, if the court determines that the person did not act in good faith in demanding the trust instrument.

      (9) This section does not limit the right of a person to obtain a copy of the trust instrument in a judicial proceeding concerning the trust.

NEW SECTION.  Sec. 32.  A new section is added to chapter 11.98 RCW to read as follows:

      DUTY OF LOYALTY.  (1) A trustee shall administer the trust solely in the interests of the beneficiaries.

      (2) Subject to the rights of persons dealing with or assisting the trustee as provided in RCW 11.98.090, a sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account or which is otherwise affected by a conflict between the trustee's fiduciary and personal interests is voidable by a beneficiary affected by the transaction unless:

      (a) The transaction was authorized by the terms of the trust;

      (b) The transaction was approved by the court or approved in a nonjudicial binding agreement in compliance with RCW 11.96A.210 through 11.96A.250;

      (c) The beneficiary did not commence a judicial proceeding within the time allowed by RCW 11.96A.070;

      (d) The beneficiary consented to the trustee's conduct, ratified the transaction, or released the trustee in compliance with section 30 of this act; or

      (e) The transaction involves a contract entered into or claim acquired by the trustee before the person became or contemplated becoming trustee.

      (3)(a) A sale, encumbrance, or other transaction involving the investment or management of trust property is presumed to be "otherwise affected" by a conflict between fiduciary and personal interests under this section if it is entered into by the trustee with:

      (i) The trustee's spouse or registered domestic partner;

      (ii) The trustee's descendants, siblings, parents, or their spouses or registered domestic partners;

      (iii) An agent or attorney of the trustee; or

      (iv) A corporation or other person or enterprise in which the trustee, or a person that owns a significant interest in the trustee, has an interest that might affect the trustee's best judgment.

      (b) The presumption is rebutted if the trustee establishes that the conflict did not adversely affect the interests of the beneficiaries.

      (4) A sale, encumbrance, or other transaction involving the investment or management of trust property entered into by the trustee for the trustee's own personal account that is voidable under subsection (2) of this section may be voided by a beneficiary without further proof.

      (5) An investment by a trustee in securities of an investment company or investment trust to which the trustee, or its affiliate, provides services in a capacity other than as trustee is not presumed to be affected by a conflict between personal and fiduciary interests if the investment complies with the prudent investor rule of chapter 11.100 RCW.  In addition to its compensation for acting as trustee, the trustee may be compensated by the investment company or investment trust for providing those services out of fees charged to the trust.  If the trustee receives compensation from the investment company or investment trust for providing investment advisory or investment management services, the trustee must at least annually notify the persons entitled under RCW 11.106.020 to receive a copy of the trustee's annual report of the rate and method by which that compensation was determined.

      (6) The following transactions, if fair to the beneficiaries, cannot be voided under this section:

      (a) An agreement between a trustee and a beneficiary relating to the appointment or compensation of the trustee;

      (b) Payment of reasonable compensation to the trustee and any affiliate providing services to the trust, provided total compensation is reasonable;

      (c) A transaction between a trust and another trust, decedent's estate, or guardianship of which the trustee is a fiduciary or in which a beneficiary has an interest;

      (d) A deposit of trust money in a regulated financial-service institution operated by the trustee or its affiliate;

      (e) A delegation and any transaction made pursuant to the delegation from a trustee to an agent that is affiliated or associated with the trustee; or

      (f) Any loan from the trustee or its affiliate.

      (7) The court may appoint a special fiduciary to make a decision with respect to any proposed transaction that might violate this section if entered into by the trustee.

      (8) If a trust has two or more beneficiaries, the trustee shall act impartially in administering the trust and distributing the trust property, giving due regard to the beneficiaries' respective interests.

NEW SECTION.  Sec. 33.  A new section is added to chapter 11.98 RCW to read as follows:

      DAMAGES FOR BREACH OF TRUST.  (1) A trustee who commits a breach of trust is liable for the greater of:

      (a) The amount required to restore the value of the trust property and trust distributions to what they would have been had the breach not occurred; or

      (b) The profit the trustee made by reason of the breach.

      (2) Except as otherwise provided in this subsection, if more than one trustee is liable to the beneficiaries for a breach of trust, a trustee is entitled to contribution from the other trustee or trustees.  A trustee is not entitled to contribution if the trustee was substantially more at fault than another trustee or if the trustee committed the breach of trust in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries.  A trustee who received a benefit from the breach of trust is not entitled to contribution from another trustee to the extent of the benefit received.

Sec. 34.  RCW 11.100.090 and 1985 c 30 s 75 are each amended to read as follows:

      Unless the instrument creating the trust expressly provides to the contrary and except as authorized in section 32 of this act, any fiduciary in carrying out the obligations of the trust, may not buy or sell investments from or to himself, herself, or itself or any affiliated or subsidiary company or association.  This section shall not be construed as prohibiting the trustee's powers under RCW 11.98.070(12).

NEW SECTION.  Sec. 35.  CAPACITY OF TRUSTOR OF REVOCABLE TRUST. The capacity required to create, amend, revoke, or add property to a revocable trust, or to direct the actions of the trustee of a revocable trust, is the same as that required to make a will.

NEW SECTION.  Sec. 36.  REVOCATION OR AMENDMENT OF REVOCABLE TRUST. (1) Unless the terms of a trust expressly provide that the trust is revocable, the trustor may not revoke or amend the trust.

      (2) If a revocable trust is created or funded by more than one trustor and unless the trust agreement provides otherwise:

      (a) To the extent the trust consists of community property, the trust may be revoked by either spouse or either domestic partner acting alone but may be amended only by joint action of both spouses or both domestic partners;

      (b) To the extent the trust consists of property other than community property, each trustor may revoke or amend the trust with regard to the portion of the trust property attributable to that trustor's contribution;

      (c) The character of community property or separate property is unaffected by its transfer to and from a revocable trust; and

      (d) Upon the revocation or amendment of the trust by fewer than all of the trustors, the trustee shall promptly notify the other trustors of the revocation or amendment.

      (3) The trustor may revoke or amend a revocable trust:

      (a) By substantial compliance with a method provided in the terms of the trust; or

      (b)(i) If the terms of the trust do not provide a method or the method provided in the terms is not expressly made exclusive, by:

      (A) A later will or codicil that expressly refers to the trust or specifically devises property that would otherwise have passed according to the terms of the trust; or

      (B) A written instrument signed by the trustor evidencing intent to revoke or amend.

      (ii) The requirements of chapter 11.11 RCW do not apply to revocation or amendment of a revocable trust under (b)(i) of this subsection.

      (4) Upon revocation of a revocable trust, the trustee shall deliver the trust property as the trustor directs.

      (5) A trustor's powers with respect to revocation, amendment, or distribution of trust property may be exercised by an agent under a power of attorney only to the extent expressly authorized by the terms of the power, as provided in RCW 11.94.050(1) and to the extent consistent with or expressly authorized by the trust agreement.

      (6) A guardian of the trustor may exercise a trustor's powers with respect to revocation, amendment, or distribution of trust property only with the approval of the court supervising the guardianship pursuant to RCW 11.92.140.

      (7) A trustee who does not know that a trust has been revoked or amended is not liable to the trustor or trustor's successors in interest for distributions made and other actions taken on the assumption that the trust had not been amended or revoked.

      (8) This section does not limit or affect operation of RCW 11.96A.220 through 11.96A.240.

NEW SECTION.  Sec. 37.  TRUSTOR'S POWERS--POWERS OF WITHDRAWAL. While a trust is revocable by the trustor, rights of the beneficiaries are subject to the control of, and the duties of the trustee are owed exclusively to, the trustor.  If a revocable trust has more than one trustor, the duties of the trustee are owed to all of the trustors having the right to revoke the trust.

NEW SECTION.  Sec. 38.  LIMITATION ON ACTION CONTESTING VALIDITY OF REVOCABLE TRUST--DISTRIBUTION OF TRUST PROPERTY.  (1) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the trustor's death within the earlier of:

      (a) Twenty-four months after the trustor's death; or

      (b) Four months after the trustee sent to the person by personal service, mail, or in an electronic transmission if there is a consent of the recipient to electronic transmission then in effect under the terms of RCW 11.96A.110, a notice with the information required in RCW 11.97.010, and notice of the time allowed for commencing a proceeding.

      (2) Upon the death of the trustor of a trust that was revocable at the trustor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust, unless:

      (a) The trustee knows of a pending judicial proceeding contesting the validity of the trust; or

      (b) A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification.

      (3) A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.

NEW SECTION.  Sec. 39.  Sections 35 through 38 of this act constitute a new chapter in Title 11 RCW.

NEW SECTION.  Sec. 40.  APPLICATION.  Except as otherwise provided in this act:

      (1) This act applies to all trusts created before, on, or after January 1, 2012;

      (2) This act applies to all judicial proceedings concerning trusts commenced on or after January 1, 2012;

      (3) Any rule of construction or presumption provided in this act applies to trust instruments executed before January 1, 2012, unless there is a clear indication of a contrary intent in the terms of the trust;

      (4) An action taken before January 1, 2012, is not affected by this act; and

      (5) If a right is acquired, extinguished, or barred upon the expiration of a prescribed period that has commenced to run under any other statute before January 1, 2012, that statute continues to apply to the right even if it has been repealed or superseded.

NEW SECTION.  Sec. 41.  EFFECTIVE DATE.  This act takes effect January 1, 2012."

On page 1, line 1 of the title, after "estates;" strike the remainder of the title and insert "amending RCW 11.02.005, 11.28.237, 11.68.090, 11.94.050, 11.96A.030, 11.96A.050, 11.96A.070, 11.96A.110, 11.96A.120, 11.97.010, 11.98.009, 11.98.039, 11.98.045, 11.98.051, 11.98.055, 11.98.070, and 11.100.090; adding new sections to chapter 11.96A RCW; adding a new section to chapter 11.97 RCW; adding new sections to chapter 11.98 RCW; adding a new chapter to Title 11 RCW; creating a new section; and providing an effective date."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1051 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Pedersen and Rodne spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1051, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1051, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1051, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 4, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1071 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  Urban main streets should be designed to provide safe access to all users, including bicyclists, pedestrians, motorists, and public transportation users.  Context sensitive design and engineering principles allow for flexible solutions depending on a community's needs, and result in many positive outcomes for cities and towns, including improving the health and safety of a community.  It is the intent of the legislature to encourage street designs that safely meet the needs of all users and also protect and preserve a community's environment and character.

NEW SECTION.  Sec. 2.  A new section is added to chapter 47.04 RCW to read as follows:

      (1) The department shall establish a complete streets grant program within the department's highways and local programs division, or its successor.  During program development, the department shall include, at a minimum, the department of archaeology and historic preservation, local governments, and other organizations or groups that are interested in the complete streets grant program.  The purpose of the grant program is to encourage local governments to adopt urban arterial retrofit street ordinances designed to provide safe access to all users, including bicyclists, pedestrians, motorists, and public transportation users, with the goals of:

      (a) Promoting healthy communities by encouraging walking, bicycling, and using public transportation;

      (b) Improving safety by designing major arterials to include features such as wider sidewalks, dedicated bicycle facilities, medians, and pedestrian streetscape features, including trees where appropriate.

      (c) Protecting the environment and reducing congestion by providing safe alternatives to single-occupancy driving; and

      (d) Preserving community character by involving local citizens and stakeholders to participate in planning and design decisions.

      (2) For purposes of this section:

      (a) "Eligible project" means (i) a local government street retrofit project that includes the addition of, or significant repair to, facilities that provide street access with all users in mind, including pedestrians, bicyclists, and public transportation users; or (ii) a retrofit project on city streets that are part of a state highway that include the addition of, or significant repair to, facilities that provide street access with all users in mind, including pedestrians, bicyclists, and public transportation users.

      (b) "Local government" means incorporated cities and towns that have adopted a jurisdiction-wide complete streets ordinance that plans for the needs of all users and is consistent with sound engineering principles.

      (c) "Sound engineering principles" means peer-reviewed, context sensitive solutions guides, reports, and publications, consistent with the purposes of this section.

      (3) In carrying out the purposes of this section, the department may award funding, subject to the availability of amounts appropriated for this specific purpose, only to eligible projects that are designed consistent with sound engineering principles.

      (4) The department must report annually to the transportation committees of the legislature on the status of any grant projects funded by the program created under this section.

NEW SECTION.  Sec. 3.  A new section is added to chapter 47.04 RCW to read as follows:

      (1) The complete streets grant program account is created in the state treasury.  Moneys in the account may be spent only after appropriation.  Only the department may authorize expenditures from the account.  The department may use complete streets grant program funds for city streets, and city streets that are part of a state highway.  Expenditures from the account may be used solely for the grants provided under section 2 of this act.

      (2) The department may solicit and receive gifts, grants, or endowments from private and other sources that are made, in trust or otherwise, for the use and benefit of the purposes of the complete streets grant program as provided in section 2 of this act.

NEW SECTION.  Sec. 4.  A new section is added to chapter 47.04 RCW to read as follows:

      When constructing, reconstructing, or making major improvements to streets described in RCW 47.24.010, the department must, for street projects initially planned or scoped after July 1, 2011:

      (1) Consult with local jurisdictions in the design and planning phases.  Consultation with local jurisdictions must include public outreach and meetings with interested stakeholders in the predesign phase for the purpose of clarifying community goals and priorities through community design exercises prior to developing any designs or visualizations; and

(2) Consider the needs of all users by applying context sensitive design solutions consistent with peer-reviewed, context sensitive solutions guides, reports, and publications, consistent with the purposes of this section."

On page 1, beginning on line 2 of the title, strike the remainder of the title and insert "adding new sections to chapter 47.04 RCW; and creating a new section."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1071 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Liias spoke in favor of the passage of the bill.

 

      Representative Hargrove spoke against the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1071, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1071, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 53; Nays, 43; Absent, 0; Excused, 1.

      Voting yea: Representatives Appleton, Billig, Blake, Carlyle, Clibborn, Cody, Darneille, Dickerson, Dunshee, Eddy, Finn, Fitzgibbon, Frockt, Goodman, Green, Hasegawa, Hudgins, Hunt, Hunter, Hurst, Jinkins, Kagi, Kelley, Kenney, Kirby, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Ormsby, Orwall, Pedersen, Pettigrew, Reykdal, Roberts, Rolfes, Ryu, Santos, Seaquist, Sells, Springer, Stanford, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege and Mr. Speaker.

      Voting nay: Representatives Ahern, Alexander, Anderson, Angel, Armstrong, Asay, Bailey, Buys, Chandler, Condotta, Crouse, Dahlquist, Dammeier, DeBolt, Fagan, Haler, Hargrove, Harris, Hinkle, Hope, Johnson, Klippert, Kretz, Kristiansen, McCune, Nealey, Orcutt, Overstreet, Parker, Pearson, Probst, Rivers, Rodne, Ross, Schmick, Shea, Short, Smith, Taylor, Walsh, Warnick, Wilcox and Zeiger.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1071, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 9, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1136 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  It is important to the citizens of this state to have confidence in the security of the mail.  Mail contains personal information, medical records, and financial documents.  Theft of mail has become a serious problem in our state because mail is a key source of information for identity thieves.  Currently, there is no law that adequately addresses the seriousness of this crime.  This act is intended to accurately recognize the seriousness of taking personal, medical, or financial identifying information and compromising the integrity of our mail system.

Sec. 2.  RCW 9A.56.010 and 2006 c 277 s 4 are each amended to read as follows:

      The following definitions are applicable in this chapter unless the context otherwise requires:

      (1) "Access device" means any card, plate, code, account number, or other means of account access that can be used alone or in conjunction with another access device to obtain money, goods, services, or anything else of value, or that can be used to initiate a transfer of funds, other than a transfer originated solely by paper instrument;

      (2) "Appropriate lost or misdelivered property or services" means obtaining or exerting control over the property or services of another which the actor knows to have been lost or mislaid, or to have been delivered under a mistake as to identity of the recipient or as to the nature or amount of the property;

      (3) "Beverage crate" means a plastic or metal box-like container used by a manufacturer or distributor in the transportation or distribution of individually packaged beverages to retail outlets, and affixed with language stating "property of . . . . .," "owned by . . . . .," or other markings or words identifying ownership;

      (4) "By color or aid of deception" means that the deception operated to bring about the obtaining of the property or services; it is not necessary that deception be the sole means of obtaining the property or services;

      (5) "Deception" occurs when an actor knowingly:

      (a) Creates or confirms another's false impression which the actor knows to be false; or

      (b) Fails to correct another's impression which the actor previously has created or confirmed; or

      (c) Prevents another from acquiring information material to the disposition of the property involved; or

      (d) Transfers or encumbers property without disclosing a lien, adverse claim, or other legal impediment to the enjoyment of the property, whether that impediment is or is not valid, or is or is not a matter of official record; or

      (e) Promises performance which the actor does not intend to perform or knows will not be performed;

      (6) "Deprive" in addition to its common meaning means to make unauthorized use or an unauthorized copy of records, information, data, trade secrets, or computer programs;

      (7) "Mail," in addition to its common meaning, means any letter, postal card, package, bag, or other item that is addressed to a specific address for delivery by the United States postal service or any commercial carrier performing the function of delivering similar items to residences or businesses, provided the mail:
      (a)(i) Is addressed with a specific person's name, family name, or company, business, or corporation name on the outside of the item of mail or on the contents inside; and
      (ii) Is not addressed to a generic unnamed occupant or resident of the address without an identifiable person, family, or company, business, or corporation name on the outside of the item of mail or on the contents inside; and
      (b) Has been left for collection or delivery in any letter box, mail box, mail receptacle, or other authorized depository for mail, or given to a mail carrier, or left with any private business that provides mail boxes or mail addresses for customers or when left in a similar location for collection or delivery by any commercial carrier; or
      (c) Is in transit with a postal service, mail carrier, letter carrier, commercial carrier, or that is at or in a postal vehicle, postal station, mail box, postal airplane, transit station, or similar location of a commercial carrier; or
      (d) Has been delivered to the intended address, but has not been received by the intended addressee.
      Mail, for purposes of this act, does not include magazines, catalogs, direct mail inserts, newsletters, advertising circulars, or any mail that is considered third class mail by the United States postal service;
      (8) "Mail box," in addition to its common meaning, means any authorized depository or receptacle of mail for the United States postal service or authorized depository for a commercial carrier that provides services to the general public, including any address to which mail is or can be addressed, or a place where the United States postal service or equivalent commercial carrier delivers mail to its addressee;
      (9) "Merchandise pallet" means a wood or plastic carrier designed and manufactured as an item on which products can be placed before or during transport to retail outlets, manufacturers, or contractors, and affixed with language stating "property of . . .," "owned by . . .," or other markings or words identifying ownership;

      (((8))) (10) "Obtain control over" in addition to its common meaning, means:

      (a) In relation to property, to bring about a transfer or purported transfer to the obtainer or another of a legally recognized interest in the property; or

      (b) In relation to labor or service, to secure performance thereof for the benefits of the obtainer or another;

      (((9))) (11) "Owner" means a person, other than the actor, who has possession of or any other interest in the property or services involved, and without whose consent the actor has no authority to exert control over the property or services;

      (((10))) (12) "Parking area" means a parking lot or other property provided by retailers for use by a customer for parking an automobile or other vehicle;

      (((11))) (13) "Receive" includes, but is not limited to, acquiring title, possession, control, or a security interest, or any other interest in the property;

      (((12))) (14) "Received by the intended addressee" means that the addressee, owner of the delivery mail box, or authorized agent has removed the delivered mail from its delivery mail box;
      (15) "Services" includes, but is not limited to, labor, professional services, transportation services, electronic computer services, the supplying of hotel accommodations, restaurant services, entertainment, the supplying of equipment for use, and the supplying of commodities of a public utility nature such as gas, electricity, steam, and water;

      (((13))) (16) "Shopping cart" means a basket mounted on wheels or similar container generally used in a retail establishment by a customer for the purpose of transporting goods of any kind;

      (((14))) (17) "Stolen" means obtained by theft, robbery, or extortion;

      (((15))) (18) "Subscription television service" means cable or encrypted video and related audio and data services intended for viewing on a home television by authorized members of the public only, who have agreed to pay a fee for the service.  Subscription services include but are not limited to those video services presently delivered by coaxial cable, fiber optic cable, terrestrial microwave, television broadcast, and satellite transmission;

      (((16))) (19) "Telecommunication device" means (a) any type of instrument, device, machine, or equipment that is capable of transmitting or receiving telephonic or electronic communications; or (b) any part of such an instrument, device, machine, or equipment, or any computer circuit, computer chip, electronic mechanism, or other component, that is capable of facilitating the transmission or reception of telephonic or electronic communications;

      (((17))) (20) "Telecommunication service" includes any service other than subscription television service provided for a charge or compensation to facilitate the transmission, transfer, or reception of a telephonic communication or an electronic communication;

      (((18))) (21) Value.  (a) "Value" means the market value of the property or services at the time and in the approximate area of the criminal act.

      (b) Whether or not they have been issued or delivered, written instruments, except those having a readily ascertained market value, shall be evaluated as follows:

      (i) The value of an instrument constituting an evidence of debt, such as a check, draft, or promissory note, shall be deemed the amount due or collectible thereon or thereby, that figure ordinarily being the face amount of the indebtedness less any portion thereof which has been satisfied;

      (ii) The value of a ticket or equivalent instrument which evidences a right to receive transportation, entertainment, or other service shall be deemed the price stated thereon, if any; and if no price is stated thereon, the value shall be deemed the price of such ticket or equivalent instrument which the issuer charged the general public;

      (iii) The value of any other instrument that creates, releases, discharges, or otherwise affects any valuable legal right, privilege, or obligation shall be deemed the greatest amount of economic loss which the owner of the instrument might reasonably suffer by virtue of the loss of the instrument.

      (c) Except as provided in RCW 9A.56.340(4) and 9A.56.350(4), whenever any series of transactions which constitute theft, would, when considered separately, constitute theft in the third degree because of value, and said series of transactions are a part of a criminal episode or a common scheme or plan, then the transactions may be aggregated in one count and the sum of the value of all said transactions shall be the value considered in determining the degree of theft involved.

      For purposes of this subsection, "criminal episode" means a series of thefts committed by the same person from one or more mercantile establishments on three or more occasions within a five-day period.

      (d) Whenever any person is charged with possessing stolen property and such person has unlawfully in his possession at the same time the stolen property of more than one person, then the stolen property possessed may be aggregated in one count and the sum of the value of all said stolen property shall be the value considered in determining the degree of theft involved.  Thefts committed by the same person in different counties that have been aggregated in one county may be prosecuted in any county in which one of the thefts occurred.

      (e) Property or services having value that cannot be ascertained pursuant to the standards set forth above shall be deemed to be of a value not exceeding two hundred and fifty dollars;

      (((19))) (22) "Wrongfully obtains" or "exerts unauthorized control" means:

      (a) To take the property or services of another;

      (b) Having any property or services in one's possession, custody or control as bailee, factor, lessee, pledgee, renter, servant, attorney, agent, employee, trustee, executor, administrator, guardian, or officer of any person, estate, association, or corporation, or as a public officer, or person authorized by agreement or competent authority to take or hold such possession, custody, or control, to secrete, withhold, or appropriate the same to his or her own use or to the use of any person other than the true owner or person entitled thereto; or

      (c) Having any property or services in one's possession, custody, or control as partner, to secrete, withhold, or appropriate the same to his or her use or to the use of any person other than the true owner or person entitled thereto, where the use is unauthorized by the partnership agreement.

NEW SECTION.  Sec. 3.  A new section is added to chapter 9A.56 RCW to read as follows:

      (1) A person is guilty of mail theft if he or she:  (a) Commits theft of mail addressed to three or more different addresses; and (b) commits theft of a minimum of ten separate pieces of mail.

      (2) Each set of ten separate pieces of stolen mail addressed to three or more different mail boxes constitutes a separate and distinct crime and may be punished accordingly.

      (3) Mail theft is a class C felony.

NEW SECTION.  Sec. 4.  A new section is added to chapter 9A.56 RCW to read as follows:

      (1) A person is guilty of possession of stolen mail if he or she:  (a) Possesses stolen mail addressed to three or more different mail boxes; and (b) possesses a minimum of ten separate pieces of stolen mail.

      (2) "Possesses stolen mail" means to knowingly receive, retain, possess, conceal, or dispose of stolen mail knowing that it has been stolen, and to withhold or appropriate to the use of any person other than the true owner, or the person to whom the mail is addressed.

      (3) The fact that the person who stole the mail has not been convicted, apprehended, or identified is not a defense to the charge of possessing stolen mail.

      (4) Each set of ten separate pieces of stolen mail addressed to three or more different mail boxes constitutes a separate and distinct crime and may be punished accordingly.

      (5) Possession of stolen mail is a class C felony.

NEW SECTION.  Sec. 5.  A new section is added to chapter 9A.56 RCW to read as follows:

      Every person who, in the commission of mail theft or possession of stolen mail, shall commit any other crime, may be punished therefor as well as for the mail theft or possession of stolen mail, and may be prosecuted for each crime separately."

On page 1, line 1 of the title, after "theft;" strike the remainder of the title and insert "amending RCW 9A.56.010; adding new sections to chapter 9A.56 RCW; creating a new section; and prescribing penalties."

 

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1136 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Eddy and Armstrong spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1136, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1136, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1136, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1145 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  It is important to the citizens of this state to have confidence in the security of the mail.  Mail contains personal information, medical records, and financial documents.  Theft of mail has become a serious problem in our state because mail is a key source of information for identity thieves.  Currently, there is no law that adequately addresses the seriousness of this crime.  This act is intended to accurately recognize the seriousness of taking personal, medical, or financial identifying information and compromising the integrity of our mail system.

Sec. 2.  RCW 9A.56.010 and 2006 c 277 s 4 are each amended to read as follows:

      The following definitions are applicable in this chapter unless the context otherwise requires:

      (1) "Access device" means any card, plate, code, account number, or other means of account access that can be used alone or in conjunction with another access device to obtain money, goods, services, or anything else of value, or that can be used to initiate a transfer of funds, other than a transfer originated solely by paper instrument;

      (2) "Appropriate lost or misdelivered property or services" means obtaining or exerting control over the property or services of another which the actor knows to have been lost or mislaid, or to have been delivered under a mistake as to identity of the recipient or as to the nature or amount of the property;

      (3) "Beverage crate" means a plastic or metal box-like container used by a manufacturer or distributor in the transportation or distribution of individually packaged beverages to retail outlets, and affixed with language stating "property of . . . . .," "owned by . . . . .," or other markings or words identifying ownership;

      (4) "By color or aid of deception" means that the deception operated to bring about the obtaining of the property or services; it is not necessary that deception be the sole means of obtaining the property or services;

      (5) "Deception" occurs when an actor knowingly:

      (a) Creates or confirms another's false impression which the actor knows to be false; or

      (b) Fails to correct another's impression which the actor previously has created or confirmed; or

      (c) Prevents another from acquiring information material to the disposition of the property involved; or

      (d) Transfers or encumbers property without disclosing a lien, adverse claim, or other legal impediment to the enjoyment of the property, whether that impediment is or is not valid, or is or is not a matter of official record; or

      (e) Promises performance which the actor does not intend to perform or knows will not be performed;

      (6) "Deprive" in addition to its common meaning means to make unauthorized use or an unauthorized copy of records, information, data, trade secrets, or computer programs;

      (7) "Mail," in addition to its common meaning, means any letter, postal card, package, bag, or other item that is addressed to a specific address for delivery by the United States postal service or any commercial carrier performing the function of delivering similar items to residences or businesses, provided the mail:
      (a)(i) Is addressed with a specific person's name, family name, or company, business, or corporation name on the outside of the item of mail or on the contents inside; and
      (ii) Is not addressed to a generic unnamed occupant or resident of the address without an identifiable person, family, or company, business, or corporation name on the outside of the item of mail or on the contents inside; and
      (b) Has been left for collection or delivery in any letter box, mail box, mail receptacle, or other authorized depository for mail, or given to a mail carrier, or left with any private business that provides mail boxes or mail addresses for customers or when left in a similar location for collection or delivery by any commercial carrier; or
      (c) Is in transit with a postal service, mail carrier, letter carrier, commercial carrier, or that is at or in a postal vehicle, postal station, mail box, postal airplane, transit station, or similar location of a commercial carrier; or
      (d) Has been delivered to the intended address, but has not been received by the intended addressee.
      Mail, for purposes of this act, does not include magazines, catalogs, direct mail inserts, newsletters, advertising circulars, or any mail that is considered third class mail by the United States postal service;
      (8) "Mail box," in addition to its common meaning, means any authorized depository or receptacle of mail for the United States postal service or authorized depository for a commercial carrier that provides services to the general public, including any address to which mail is or can be addressed, or a place where the United States postal service or equivalent commercial carrier delivers mail to its addressee;
      (9) "Merchandise pallet" means a wood or plastic carrier designed and manufactured as an item on which products can be placed before or during transport to retail outlets, manufacturers, or contractors, and affixed with language stating "property of . . .," "owned by . . .," or other markings or words identifying ownership;

      (((8))) (10) "Obtain control over" in addition to its common meaning, means:

      (a) In relation to property, to bring about a transfer or purported transfer to the obtainer or another of a legally recognized interest in the property; or

      (b) In relation to labor or service, to secure performance thereof for the benefits of the obtainer or another;

      (((9))) (11) "Owner" means a person, other than the actor, who has possession of or any other interest in the property or services involved, and without whose consent the actor has no authority to exert control over the property or services;

      (((10))) (12) "Parking area" means a parking lot or other property provided by retailers for use by a customer for parking an automobile or other vehicle;

      (((11))) (13) "Receive" includes, but is not limited to, acquiring title, possession, control, or a security interest, or any other interest in the property;

      (((12))) (14) "Received by the intended addressee" means that the addressee, owner of the delivery mail box, or authorized agent has removed the delivered mail from its delivery mail box;
      (15) "Services" includes, but is not limited to, labor, professional services, transportation services, electronic computer services, the supplying of hotel accommodations, restaurant services, entertainment, the supplying of equipment for use, and the supplying of commodities of a public utility nature such as gas, electricity, steam, and water;

      (((13))) (16) "Shopping cart" means a basket mounted on wheels or similar container generally used in a retail establishment by a customer for the purpose of transporting goods of any kind;

      (((14))) (17) "Stolen" means obtained by theft, robbery, or extortion;

      (((15))) (18) "Subscription television service" means cable or encrypted video and related audio and data services intended for viewing on a home television by authorized members of the public only, who have agreed to pay a fee for the service.  Subscription services include but are not limited to those video services presently delivered by coaxial cable, fiber optic cable, terrestrial microwave, television broadcast, and satellite transmission;

      (((16))) (19) "Telecommunication device" means (a) any type of instrument, device, machine, or equipment that is capable of transmitting or receiving telephonic or electronic communications; or (b) any part of such an instrument, device, machine, or equipment, or any computer circuit, computer chip, electronic mechanism, or other component, that is capable of facilitating the transmission or reception of telephonic or electronic communications;

      (((17))) (20) "Telecommunication service" includes any service other than subscription television service provided for a charge or compensation to facilitate the transmission, transfer, or reception of a telephonic communication or an electronic communication;

      (((18))) (21) Value.  (a) "Value" means the market value of the property or services at the time and in the approximate area of the criminal act.

      (b) Whether or not they have been issued or delivered, written instruments, except those having a readily ascertained market value, shall be evaluated as follows:

      (i) The value of an instrument constituting an evidence of debt, such as a check, draft, or promissory note, shall be deemed the amount due or collectible thereon or thereby, that figure ordinarily being the face amount of the indebtedness less any portion thereof which has been satisfied;

      (ii) The value of a ticket or equivalent instrument which evidences a right to receive transportation, entertainment, or other service shall be deemed the price stated thereon, if any; and if no price is stated thereon, the value shall be deemed the price of such ticket or equivalent instrument which the issuer charged the general public;

      (iii) The value of any other instrument that creates, releases, discharges, or otherwise affects any valuable legal right, privilege, or obligation shall be deemed the greatest amount of economic loss which the owner of the instrument might reasonably suffer by virtue of the loss of the instrument.

      (c) Except as provided in RCW 9A.56.340(4) and 9A.56.350(4), whenever any series of transactions which constitute theft, would, when considered separately, constitute theft in the third degree because of value, and said series of transactions are a part of a criminal episode or a common scheme or plan, then the transactions may be aggregated in one count and the sum of the value of all said transactions shall be the value considered in determining the degree of theft involved.

      For purposes of this subsection, "criminal episode" means a series of thefts committed by the same person from one or more mercantile establishments on three or more occasions within a five-day period.

      (d) Whenever any person is charged with possessing stolen property and such person has unlawfully in his possession at the same time the stolen property of more than one person, then the stolen property possessed may be aggregated in one count and the sum of the value of all said stolen property shall be the value considered in determining the degree of theft involved.  Thefts committed by the same person in different counties that have been aggregated in one county may be prosecuted in any county in which one of the thefts occurred.

      (e) Property or services having value that cannot be ascertained pursuant to the standards set forth above shall be deemed to be of a value not exceeding two hundred and fifty dollars;

      (((19))) (22) "Wrongfully obtains" or "exerts unauthorized control" means:

      (a) To take the property or services of another;

      (b) Having any property or services in one's possession, custody or control as bailee, factor, lessee, pledgee, renter, servant, attorney, agent, employee, trustee, executor, administrator, guardian, or officer of any person, estate, association, or corporation, or as a public officer, or person authorized by agreement or competent authority to take or hold such possession, custody, or control, to secrete, withhold, or appropriate the same to his or her own use or to the use of any person other than the true owner or person entitled thereto; or

      (c) Having any property or services in one's possession, custody, or control as partner, to secrete, withhold, or appropriate the same to his or her use or to the use of any person other than the true owner or person entitled thereto, where the use is unauthorized by the partnership agreement.

NEW SECTION.  Sec. 3.  A new section is added to chapter 9A.56 RCW to read as follows:

      (1) A person is guilty of mail theft if he or she:  (a) Commits theft of mail addressed to three or more different addresses; and (b) commits theft of a minimum of ten separate pieces of mail.

      (2) Each set of ten separate pieces of stolen mail addressed to three or more different mail boxes constitutes a separate and distinct crime and may be punished accordingly.

      (3) Mail theft is a class C felony.

NEW SECTION.  Sec. 4.  A new section is added to chapter 9A.56 RCW to read as follows:

      (1) A person is guilty of possession of stolen mail if he or she:  (a) Possesses stolen mail addressed to three or more different mail boxes; and (b) possesses a minimum of ten separate pieces of stolen mail.

      (2) "Possesses stolen mail" means to knowingly receive, retain, possess, conceal, or dispose of stolen mail knowing that it has been stolen, and to withhold or appropriate to the use of any person other than the true owner, or the person to whom the mail is addressed.

      (3) The fact that the person who stole the mail has not been convicted, apprehended, or identified is not a defense to the charge of possessing stolen mail.

      (4) Each set of ten separate pieces of stolen mail addressed to three or more different mail boxes constitutes a separate and distinct crime and may be punished accordingly.

      (5) Possession of stolen mail is a class C felony.

NEW SECTION.  Sec. 5.  A new section is added to chapter 9A.56 RCW to read as follows:

      Every person who, in the commission of mail theft or possession of stolen mail, shall commit any other crime, may be punished therefor as well as for the mail theft or possession of stolen mail, and may be prosecuted for each crime separately."

On page 1, line 1 of the title, after "theft;" strike the remainder of the title and insert "amending RCW 9A.56.010; adding new sections to chapter 9A.56 RCW; creating a new section; and prescribing penalties."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1145 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Overstreet and Ladenburg spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1145, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1145, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 95; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representative Liias.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1145, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 4, 2011

Mr. Speaker:

 

The Senate has passed SECOND SUBSTITUTE HOUSE BILL NO. 1163 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  The legislature finds that having updated school district policies and procedures is a step in the right direction for preventing bullying, intimidation, and harassment, but more steps are needed.  A work group could help to maintain focus and attention on antibullying and antiharassment, as well as monitor progress.  In addition, students' knowledge and understanding of two key correlates of bullying and harassment, depression and youth suicide, could be enhanced through instruction and assessments that address mental health and suicide prevention.

NEW SECTION.  Sec. 2.  A new section is added to chapter 28A.300 RCW to read as follows:

      (1) The office of the superintendent of public instruction and the office of the education ombudsman shall convene a work group on school bullying and harassment prevention to develop, recommend, and implement strategies to improve school climate and create respectful learning environments in all public schools in Washington.  The superintendent of public instruction or a designee shall serve as the chair of the work group.

      (2) The work group shall:

      (a) Consider whether additional disaggregated data should be collected regarding incidents of bullying and harassment or disciplinary actions and make recommendations to the office of the superintendent of public instruction for collection of such data;

      (b) Examine possible procedures for anonymous reporting of incidents of bullying and harassment;

      (c) Identify curriculum and best practices for school districts to improve school climate, create respectful learning environments, and train staff and students in de-escalation and intervention techniques;

      (d) Identify curriculum and best practices for incorporating instruction about mental health, youth suicide prevention, and prevention of bullying and harassment;

      (e) Recommend best practices for informing parents about the harassment, intimidation, and bullying prevention policy and procedure under RCW 28A.300.285 and involving parents in improving school climate;

      (f) Recommend training for district personnel who are designated as the primary contact regarding the policy and procedure and for school resource officers and other school security personnel;

      (g) Recommend educator preparation and certification requirements in harassment, intimidation, and bullying prevention and de-escalation and intervention techniques for teachers, educational staff associates, and school administrators;

      (h) Examine and recommend policies for discipline of students and staff who harass, intimidate, or bully; and

      (i) In collaboration with the state board for community and technical colleges, examine and recommend policies to protect K-12 students attending community and technical colleges from harassment, intimidation, and bullying.

      (3) The work group must include representatives from the state board of education, the Washington state parent teacher association, the Washington state association of school psychologists, school directors, school administrators, principals, teachers, school counselors, classified school staff, youth, community organizations, and parents.

      (4) The work group shall submit a biennial progress and status report to the governor and the education committees of the legislature, beginning December 1, 2011, with additional reports by December 1, 2013, and December 1, 2015.

      (5) The work group is terminated effective January 1, 2016.

NEW SECTION.  Sec. 3.  The office of the superintendent of public instruction shall work with state agency and community partners to develop pilot projects to assist schools in implementing youth suicide prevention activities.

NEW SECTION.  Sec. 4.  (1) The state board for community and technical colleges shall compile and analyze policies and procedures adopted by community and technical colleges regarding harassment, intimidation, and bullying prevention.

      (2) The higher education coordinating board shall compile and analyze policies and procedures adopted by four-year institutions of higher education regarding harassment, intimidation, and bullying prevention.

      (3) Each board under this section shall submit a report with recommendations for improvements in the policies and procedures to the education and higher education committees of the legislature by December 1, 2011, to include:

      (a) Whether additional disaggregated data should be collected regarding incidents of bullying and harassment or disciplinary actions;

      (b) Recommendations as to training for institutional personnel who are designated as the primary contact regarding the policy and procedure; and

      (c) An examination of and recommendations for policies for disciplining students and staff who harass, intimidate, or bully.

Sec. 5.  RCW 28A.230.095 and 2009 c 556 s 8 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 chosen by the district 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.  Health and fitness includes, but is not limited to, mental health and suicide prevention education.  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.  The office of the superintendent of public instruction may not require school districts to use a classroom-based assessment in social studies, the arts, and health and fitness to meet the requirements of this section and shall clearly communicate to districts their option to use other strategies chosen by the district.

      (2) Beginning with the 2008-09 school year, school districts shall require students in the seventh or eighth grade, and the eleventh or twelfth grade to each complete at least one classroom-based assessment in civics.  Beginning with the 2010-11 school year, school districts shall require students in the fourth or fifth grade to 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.

      (3) Verification reports shall require school districts to report only the information necessary to comply with this section.

NEW SECTION.  Sec. 6.  Section 5 of this act takes effect July 1, 2012."

 

On page 1, line 2 of the title, after "prevention;" strike the remainder of the title and insert "amending RCW 28A.230.095; adding a new section to chapter 28A.300 RCW; creating new sections; and providing an effective date."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SECOND SUBSTITUTE HOUSE BILL NO. 1163 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Liias and Anderson spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Second Substitute House Bill No. 1163, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Second Substitute House Bill No. 1163, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 73; Nays, 23; Absent, 0; Excused, 1.

      Voting yea: Representatives Alexander, Anderson, Appleton, Armstrong, Asay, Billig, Blake, Carlyle, Clibborn, Cody, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Finn, Fitzgibbon, Frockt, Goodman, Green, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Orcutt, Ormsby, Orwall, Parker, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Seaquist, Sells, Smith, Springer, Stanford, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox and Mr. Speaker.

      Voting nay: Representatives Ahern, Angel, Bailey, Buys, Chandler, Condotta, Crouse, Dahlquist, Fagan, Haler, Hargrove, Klippert, Kretz, Kristiansen, McCune, Nealey, Overstreet, Pearson, Schmick, Shea, Short, Taylor and Zeiger.

      Excused: Representative Haigh.

 

SECOND SUBSTITUTE HOUSE BILL NO. 1163, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

STATEMENT FOR THE JOURNAL

 

I intended to vote YEA on Second Substitute House Bill No. 1163.

Representative Bailey, 10th District

 

STATEMENT FOR THE JOURNAL

 

I intended to vote YEA on Second Substitute House Bill No. 1163.

Representative Pearson, 39th District

 

THIRD READING

 

MESSAGE FROM THE SENATE

March 31, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1183 with the following amendment:

0) 

      On page 2, after line 4, insert the following:

"NEW SECTION.  Sec. 3.  A new section is added to chapter 28B.115 RCW to read as follows:

      A foreign osteopathic or allopathic medical school may not prohibit a hospital or physician from entering into an agreement to provide student clinical rotations to qualified osteopathic or allopathic medical students."

On page 1, line 2 of the title, after "adding" strike "a new section" and insert "new sections"

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1183 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Johnson and Cody spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1183, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1183, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1183, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1186 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 88.46.010 and 2009 c 11 s 7 are each reenacted and amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Best achievable protection" means the highest level of protection that can be achieved through the use of the best achievable technology and those staffing levels, training procedures, and operational methods that provide the greatest degree of protection achievable.  The director's determination of best achievable protection shall be guided by the critical need to protect the state's natural resources and waters, while considering:

      (a) The additional protection provided by the measures;

      (b) The technological achievability of the measures; and

      (c) The cost of the measures.

      (2)(a) "Best achievable technology" means the technology that provides the greatest degree of protection taking into consideration:

      (((a))) (i) Processes that are being developed, or could feasibly be developed, given overall reasonable expenditures on research and development((,)); and

      (((b))) (ii) Processes that are currently in use.

(b) In determining what is best achievable technology, the director shall consider the effectiveness, engineering feasibility, and commercial availability of the technology.

      (3) "Bulk" means material that is stored or transported in a loose, unpackaged liquid, powder, or granular form capable of being conveyed by a pipe, bucket, chute, or belt system.

      (4) "Cargo vessel" means a self-propelled ship in commerce, other than a tank vessel or a passenger vessel, of three hundred or more gross tons, including but not limited to, commercial fish processing vessels and freighters.

      (5) "Covered vessel" means a tank vessel, cargo vessel, or passenger vessel.

      (6) "Department" means the department of ecology.

      (7) "Director" means the director of the department of ecology.

      (8) "Discharge" means any spilling, leaking, pumping, pouring, emitting, emptying, or dumping.

      (9)(a) "Facility" means any structure, group of structures, equipment, pipeline, or device, other than a vessel, located on or near the navigable waters of the state that transfers oil in bulk to or from a tank vessel or pipeline, that is used for producing, storing, handling, transferring, processing, or transporting oil in bulk.

      (b) A facility does not include any:  (i) Railroad car, motor vehicle, or other rolling stock while transporting oil over the highways or rail lines of this state; (ii) retail motor vehicle motor fuel outlet; (iii) facility that is operated as part of an exempt agricultural activity as provided in RCW 82.04.330; (iv) underground storage tank regulated by the department or a local government under chapter 90.76 RCW; or (v) marine fuel outlet that does not dispense more than three thousand gallons of fuel to a ship that is not a covered vessel, in a single transaction.

      (10) "Marine facility" means any facility used for tank vessel wharfage or anchorage, including any equipment used for the purpose of handling or transferring oil in bulk to or from a tank vessel.

      (11) "Navigable waters of the state" means those waters of the state, and their adjoining shorelines, that are subject to the ebb and flow of the tide and/or are presently used, have been used in the past, or may be susceptible for use to transport intrastate, interstate, or foreign commerce.

      (12) "Offshore facility" means any facility located in, on, or under any of the navigable waters of the state, but does not include a facility any part of which is located in, on, or under any land of the state, other than submerged land.  "Offshore facility" does not include a marine facility.

      (13) "Oil" or "oils" means oil of any kind that is liquid at atmospheric temperature and any fractionation thereof, including, but not limited to, crude oil, petroleum, gasoline, fuel oil, diesel oil, biological oils and blends, oil sludge, oil refuse, and oil mixed with wastes other than dredged spoil.  Oil does not include any substance listed in Table 302.4 of 40 C.F.R. Part 302 adopted August 14, 1989, under section 101(14) of the federal comprehensive environmental response, compensation, and liability act of 1980, as amended by P.L. 99‑499.

      (14) "Onshore facility" means any facility any part of which is located in, on, or under any land of the state, other than submerged land, that because of its location, could reasonably be expected to cause substantial harm to the environment by discharging oil into or on the navigable waters of the state or the adjoining shorelines.

      (15)(a) "Owner or operator" means (i) in the case of a vessel, any person owning, operating, or chartering by demise, the vessel; (ii) in the case of an onshore or offshore facility, any person owning or operating the facility; and (iii) in the case of an abandoned vessel or onshore or offshore facility, the person who owned or operated the vessel or facility immediately before its abandonment.

      (b) "Operator" does not include any person who owns the land underlying a facility if the person is not involved in the operations of the facility.

      (16) "Passenger vessel" means a ship of three hundred or more gross tons with a fuel capacity of at least six thousand gallons carrying passengers for compensation.

      (17) "Person" means any political subdivision, government agency, municipality, industry, public or private corporation, copartnership, association, firm, individual, or any other entity whatsoever.

      (18) "Race Rocks light" means the nautical landmark located southwest of the city of Victoria, British Columbia.

      (19) "Severe weather conditions" means observed nautical conditions with sustained winds measured at forty knots and wave heights measured between twelve and eighteen feet.

      (20) "Ship" means any boat, ship, vessel, barge, or other floating craft of any kind.

      (21) "Spill" means an unauthorized discharge of oil into the waters of the state.

      (22) "Strait of Juan de Fuca" means waters off the northern coast of the Olympic Peninsula seaward of a line drawn from New Dungeness light in Clallam county to Discovery Island light on Vancouver Island, British Columbia, Canada.

      (23) "Tank vessel" means a ship that is constructed or adapted to carry, or that carries, oil in bulk as cargo or cargo residue, and that:

      (a) Operates on the waters of the state; or

      (b) Transfers oil in a port or place subject to the jurisdiction of this state.

      (24) "Vessel emergency" means a substantial threat of pollution originating from a covered vessel, including loss or serious degradation of propulsion, steering, means of navigation, primary electrical generating capability, and seakeeping capability.

      (25) "Waters of the state" includes lakes, rivers, ponds, streams, inland waters, underground water, salt waters, estuaries, tidal flats, beaches and lands adjoining the seacoast of the state, sewers, and all other surface waters and watercourses within the jurisdiction of the state of Washington.

      (26) "Worst case spill" means:  (a) In the case of a vessel, a spill of the entire cargo and fuel of the vessel complicated by adverse weather conditions; and (b) in the case of an onshore or offshore facility, the largest foreseeable spill in adverse weather conditions.

(27) "Vessels of opportunity response system" means nondedicated boats and operators, including fishing and other vessels, that are under contract with and equipped by contingency plan holders to assist with oil spill response activities, including on-water oil recovery in the near shore environment and the placement of oil spill containment booms to protect sensitive habitats.
      (28) "Regional vessels of opportunity response group" means a group of nondedicated vessels participating in a vessels of opportunity response system to respond when needed and available to spills in a defined geographic area.
      (29) "Volunteer coordination system" means an oil spill response system that, before a spill occurs, prepares for the coordination of volunteers to assist with appropriate oil spill response activities, which may include shoreline protection and cleanup, wildlife recovery, field observation, light construction, facility maintenance, donations management, clerical support, and other aspects of a spill response.
      (30) "Umbrella plan holder" means a nonprofit corporation established consistent with this chapter for the purposes of providing oil spill response and contingency plan coverage.

NEW SECTION.  Sec. 2.  A new section is added to chapter 88.46 RCW to read as follows:

      (1) The department shall evaluate and update planning standards for oil spill response equipment required under contingency plans required by this chapter, including aerial surveillance, in order to ensure access in the state to equipment that represents the best achievable protection to respond to a worst case spill and provide for continuous operation of oil spill response activities to the maximum extent practicable and without jeopardizing crew safety, as determined by the incident commander or the unified command.

      (2) The department shall by rule update the planning standards at five-year intervals to ensure the maintenance of best available protection over time.  Rule updates to covered nontank vessels shall minimize potential impacts to discretionary cargo moved through the state.

      (3) The department shall evaluate and update planning standards for tank vessels by December 31, 2012.

NEW SECTION.  Sec. 3.  A new section is added to chapter 88.46 RCW to read as follows:

      By December 31, 2012, the department shall complete rule making for purposes of improving the effectiveness of the vessels of opportunity system to participate in spill response.

NEW SECTION.  Sec. 4.  A new section is added to chapter 88.46 RCW to read as follows:

      (1) The department shall establish a volunteer coordination system.  The volunteer coordination system may be included as a part of the state's overall oil spill response strategy, and may be implemented by local emergency management organizations, in coordination with any analogous federal efforts, to supplement the state's timely and effective response to spills.

      (2) The department should consider how the volunteer coordination system will:

      (a) Coordinate with the incident commander or unified command of an oil spill and any affected local governments to receive, screen, and register volunteers who are not affiliated with the emergency management organization or a local nongovernmental organization;

      (b) Coordinate the management of volunteers with local nongovernmental organizations and their affiliated volunteers;

      (c) Coordinate appropriate response operations with different classes of volunteers, including pretrained volunteers and convergent volunteers, to fulfill requests by the department or an oil spill incident commander or unified command;

      (d) Coordinate public outreach regarding the need for and use of volunteers;

      (e) Determine minimum participation criteria for volunteers; and

      (f) Identify volunteer training requirements and, if applicable, provide training opportunities for volunteers prior to an oil spill response incident.

      (3) An act or omission by any volunteer participating in a spill response or training as part of a volunteer coordination system, while engaged in such activities, does not impose any liability on any state agency, any participating local emergency management organization, or the volunteer for civil damages resulting from the act or omission.  However, the immunity provided under this subsection does not apply to an act or omission that constitutes gross negligence or willful or wanton misconduct.

      (4) The decisions to utilize volunteers in an oil spill response, which volunteers to utilize, and to determine which response activities are appropriate for volunteer participation in any given response are the sole responsibilities of the designated incident commander or unified command.

NEW SECTION.  Sec. 5.  A new section is added to chapter 88.46 RCW to read as follows:

      (1) The department is responsible for requiring joint large-scale, multiple plan equipment deployment drills of tank vessels to determine the adequacy of the owner's or operator's compliance with the contingency plan requirements of this chapter.  The department must order at least one drill as outlined in this section every three years.

      (2) Drills required under this section must focus on, at a minimum, the following:

      (a) The functional ability for multiple contingency plans to be simultaneously activated with the purpose of testing the ability for dedicated equipment and trained personnel cited in multiple contingency plans to be activated in a large scale spill; and

      (b) The operational readiness during both the first six hours of a spill and, at the department's discretion, over multiple operational periods of response.

      (3) Drills required under this section may be incorporated into other drill requirements under this chapter to avoid increasing the number of drills and equipment deployments otherwise required.

      (4) Each successful drill conducted under this section may be considered by the department as a drill of the underlying contingency plan and credit may be awarded to the plan holder accordingly.

      (5) The department shall, when practicable, coordinate with applicable federal agencies, the state of Oregon, and the province of British Columbia to establish a drill incident command and to help ensure that lessons learned from the drills are evaluated with the goal of improving the underlying contingency plans.

Sec. 6.  RCW 88.46.060 and 2005 c 78 s 2 are each amended to read as follows:

      (1) Each covered vessel shall have a contingency plan for the containment and cleanup of oil spills from the covered vessel into the waters of the state and for the protection of fisheries and wildlife, shellfish beds, natural resources, and public and private property from such spills.  The department shall by rule adopt and periodically revise standards for the preparation of contingency plans.  The department shall require contingency plans, at a minimum, to meet the following standards:

      (a) Include full details of the method of response to spills of various sizes from any vessel which is covered by the plan;

      (b) Be designed to be capable in terms of personnel, materials, and equipment, of promptly and properly, to the maximum extent practicable, as defined by the department, removing oil and minimizing any damage to the environment resulting from a worst case spill;

      (c) Provide a clear, precise, and detailed description of how the plan relates to and is integrated into relevant contingency plans which have been prepared by cooperatives, ports, regional entities, the state, and the federal government;

      (d) Provide procedures for early detection of spills and timely notification of such spills to appropriate federal, state, and local authorities under applicable state and federal law;

      (e) State the number, training preparedness, and fitness of all dedicated, prepositioned personnel assigned to direct and implement the plan;

      (f) Incorporate periodic training and drill programs consistent with this chapter to evaluate whether personnel and equipment provided under the plan are in a state of operational readiness at all times;

      (g) Describe important features of the surrounding environment, including fish and wildlife habitat, shellfish beds, environmentally and archaeologically sensitive areas, and public facilities.  The departments of ecology, fish and wildlife, ((and)) natural resources, and ((the office of)) archaeology and historic preservation, upon request, shall provide information that they have available to assist in preparing this description.  The description of archaeologically sensitive areas shall not be required to be included in a contingency plan until it is reviewed and updated pursuant to subsection (9) of this section;

      (h) State the means of protecting and mitigating effects on the environment, including fish, shellfish, marine mammals, and other wildlife, and ensure that implementation of the plan does not pose unacceptable risks to the public or the environment;

      (i) Establish guidelines for the use of equipment by the crew of a vessel to minimize vessel damage, stop or reduce any spilling from the vessel, and, only when appropriate and only when vessel safety is assured, contain and clean up the spilled oil;

      (j) Provide arrangements for the prepositioning of spill containment and cleanup equipment and trained personnel at strategic locations from which they can be deployed to the spill site to promptly and properly remove the spilled oil;

      (k) Provide arrangements for enlisting the use of qualified and trained cleanup personnel to implement the plan;

      (l) Provide for disposal of recovered spilled oil in accordance with local, state, and federal laws;

      (m) Until a spill prevention plan has been submitted pursuant to RCW 88.46.040, state the measures that have been taken to reduce the likelihood that a spill will occur, including but not limited to, design and operation of a vessel, training of personnel, number of personnel, and backup systems designed to prevent a spill;

      (n) State the amount and type of equipment available to respond to a spill, where the equipment is located, and the extent to which other contingency plans rely on the same equipment; ((and))

      (o) If the department has adopted rules permitting the use of dispersants, the circumstances, if any, and the manner for the application of the dispersants in conformance with the department's rules;
      (p) Compliance with section 7 of this act if the contingency plan is submitted by an umbrella plan holder; and
      (q) Include any additional elements of contingency plans as required by this chapter.

      (2)(((a))) The owner or operator of a ((tank)) covered vessel ((of three thousand gross tons or more shall)) must submit ((a)) any required contingency plan updates to the department within ((six months after)) the timelines established by the department ((adopts rules establishing standards for contingency plans under subsection (1) of this section.
      (b) Contingency plans for all other covered vessels shall be submitted to the department within eighteen months after the department has adopted rules under subsection (1) of this section.  The department may adopt a schedule for submission of plans within the eighteen-month period)).

      (3)(a) The owner or operator of a tank vessel or of the facilities at which the vessel will be unloading its cargo, or a ((Washington state)) nonprofit corporation established for the purpose of oil spill response and contingency plan coverage and of which the owner or operator is a member, shall submit the contingency plan for the tank vessel.  Subject to conditions imposed by the department, the owner or operator of a facility may submit a single contingency plan for tank vessels of a particular class that will be unloading cargo at the facility.

      (b) The contingency plan for a cargo vessel or passenger vessel may be submitted by the owner or operator of the cargo vessel or passenger vessel, by the agent for the vessel resident in this state, or by a ((Washington state)) nonprofit corporation established for the purpose of oil spill response and contingency plan coverage and of which the owner or operator is a member.  Subject to conditions imposed by the department, the owner, operator, or agent may submit a single contingency plan for cargo vessels or passenger vessels of a particular class.

      (c) A person who has contracted with a covered vessel to provide containment and cleanup services and who meets the standards established pursuant to RCW 90.56.240, may submit the plan for any covered vessel for which the person is contractually obligated to provide services.  Subject to conditions imposed by the department, the person may submit a single plan for more than one covered vessel.

      (4) A contingency plan prepared for an agency of the federal government or another state that satisfies the requirements of this section and rules adopted by the department may be accepted by the department as a contingency plan under this section.  The department shall ensure that to the greatest extent possible, requirements for contingency plans under this section are consistent with the requirements for contingency plans under federal law.

      (5) In reviewing the contingency plans required by this section, the department shall consider at least the following factors:

      (a) The adequacy of containment and cleanup equipment, personnel, communications equipment, notification procedures and call down lists, response time, and logistical arrangements for coordination and implementation of response efforts to remove oil spills promptly and properly and to protect the environment;

      (b) The nature and amount of vessel traffic within the area covered by the plan;

      (c) The volume and type of oil being transported within the area covered by the plan;

      (d) The existence of navigational hazards within the area covered by the plan;

      (e) The history and circumstances surrounding prior spills of oil within the area covered by the plan;

      (f) The sensitivity of fisheries and wildlife, shellfish beds, and other natural resources within the area covered by the plan;

      (g) Relevant information on previous spills contained in on-scene coordinator reports prepared by the director; and

      (h) The extent to which reasonable, cost-effective measures to prevent a likelihood that a spill will occur have been incorporated into the plan.

      (6)(a) The department shall approve a contingency plan only if it determines that the plan meets the requirements of this section and that, if implemented, the plan is capable, in terms of personnel, materials, and equipment, of removing oil promptly and properly and minimizing any damage to the environment.

(b) The department must notify the plan holder in writing within sixty-five days of an initial or amended plan's submittal to the department as to whether the plan is disapproved, approved, or conditionally approved.  If a plan is conditionally approved, the department must clearly describe each condition and specify a schedule for plan holders to submit required updates.

      (7) The approval of the contingency plan shall be valid for five years.  Upon approval of a contingency plan, the department shall provide to the person submitting the plan a statement indicating that the plan has been approved, the vessels covered by the plan, and other information the department determines should be included.

      (8) An owner or operator of a covered vessel shall notify the department in writing immediately of any significant change of which it is aware affecting its contingency plan, including changes in any factor set forth in this section or in rules adopted by the department.  The department may require the owner or operator to update a contingency plan as a result of these changes.

      (9) The department by rule shall require contingency plans to be reviewed, updated, if necessary, and resubmitted to the department at least once every five years.

      (10) Approval of a contingency plan by the department does not constitute an express assurance regarding the adequacy of the plan nor constitute a defense to liability imposed under this chapter or other state law.

NEW SECTION.  Sec. 7.  A new section is added to chapter 88.46 RCW to read as follows:

      (1) When submitting a contingency plan to the department under RCW 88.46.060, any umbrella plan holder that enrolls both tank vessels and covered vessels that are not tank vessels must, in addition to satisfying the other requirements of this chapter, specify:

      (a) The maximum worst case discharge volume from covered vessels that are not tank vessels to be covered by the umbrella plan holder's contingency plan; and

      (b) The maximum worst case discharge volume from tank vessels to be covered by the umbrella plan holder's contingency plan.

      (2) Any owner or operator of a covered vessel having a worst case discharge volume that exceeds the maximum volume covered by an approved umbrella plan holder may enroll with the umbrella plan holder if the owner or operator of the covered vessel maintains an agreement with another entity to provide supplemental equipment sufficient to meet the requirements of this chapter.

      (3) The department must approve an umbrella plan holder that covers vessels having a worst case discharge volume that exceeds the maximum volume if:

      (a) The department determines that the umbrella plan holder should be approved for a lower discharge volume;

      (b) The vessel owner or operator provides documentation to the umbrella plan holder authorizing the umbrella plan holder to activate additional resources sufficient to meet the worst case discharge volume of the vessel; and

      (c) The department has previously approved a plan that provides access to the same resources identified in (3)(b) to meet the requirements of this chapter for worst case discharge volumes equal to or greater than the worst case discharge volume of the vessel.

      (4) The umbrella plan holder must describe in the plan how the activation of additional resources will be implemented and provide the department the ability to review and inspect any documentation that the umbrella plan holder relies on to enroll a vessel with a worst case discharge that exceeds the plan's maximum volume.

Sec. 8.  RCW 88.46.100 and 2000 c 69 s 10 are each amended to read as follows:

      (((1))) In ((order to assist the state in identifying areas of the navigable waters of the state needing special attention, the owner or operator of a covered vessel shall notify the)) addition to any notifications that the owner or operator of a covered vessel must provide to the United States coast guard ((within one hour:
      (a) Of the disability of the covered vessel if the disabled vessel is within twelve miles of the shore of the state; and
      (b) Of a collision or a near miss incident within twelve miles of the shore of the state.
      (2) The state military department and the department shall request the coast guard to notify the state military department as soon as possible after the coast guard receives notice of a disabled covered vessel or of a collision or near miss incident within twelve miles of the shore of the state.  The department shall negotiate an agreement with the coast guard governing procedures for coast guard notification to the state regarding disabled covered vessels and collisions and near miss incidents.
      (3) The department shall prepare a summary of the information collected under this section and provide the summary to the regional marine safety committees, the coast guard, and others in order to identify problems with the marine transportation system.
      (4) For the purposes of this section:
      (a) A tank vessel or cargo vessel is considered disabled if any of the following occur:
      (i) Any accidental or intentional grounding;
      (ii) The total or partial failure of the main propulsion or primary steering or any component or control system that causes a reduction in the maneuvering capabilities of the vessel;
      (iii) An occurrence materially and adversely affecting the vessel's seaworthiness or fitness for service, including but not limited to, fire, flooding, or collision with another vessel;
      (iv) Any other occurrence that creates the serious possibility of an oil spill or an occurrence that may result in such a spill.
      (b) A barge is considered disabled if any of the following occur:
      (i) The towing mechanism becomes disabled;
      (ii) The towboat towing the barge becomes disabled through occurrences defined in (a) of this subsection.
      (c) A near miss incident is an incident that requires the pilot or master of a covered vessel to take evasive actions or make significant course corrections in order to avoid a collision with another ship or to avoid a grounding as required by the international rules of the road.
      (5) Failure of any person to make a report under this section shall not be used as the basis for the imposition of any fine or penalty)) regarding a vessel emergency, the owner or operator of a covered vessel must notify the state of any vessel emergency that results in the discharge or substantial threat of discharge of oil to state waters or that may affect the natural resources of the state within one hour of the onset of that emergency.  The purpose of this notification is to enable the department to coordinate with the vessel operator, contingency plan holder, and the United States coast guard to protect the public health, welfare, and natural resources of the state and to ensure all reasonable spill preparedness and response measures are in place prior to a spill occurring.

Sec. 9.  RCW 90.48.366 and 2007 c 347 s 1 are each amended to read as follows:

(1) The department, in consultation with the departments of fish and wildlife and natural resources, and the parks and recreation commission, shall adopt rules establishing a compensation schedule for the discharge of oil in violation of this chapter and chapter 90.56 RCW.  The amount of compensation assessed under this schedule shall be:
      (a) For spills totaling one thousand gallons or more in any one event, no less than ((one dollar)) three dollars per gallon of oil spilled and no greater than ((one)) three hundred dollars per gallon of oil spilled; and
      (b) For spills totaling less than one thousand gallons in any one event, no less than one dollar per gallon of oil spilled and no greater than one hundred dollars per gallon of oil spilled.

(2) Persistent oil recovered from the surface of the water within forty-eight hours of a discharge must be deducted from the total spill volume for purposes of determining the amount of compensation assessed under the compensation schedule.
      (3) The compensation schedule adopted under this section shall reflect adequate compensation for unquantifiable damages or for damages not quantifiable at reasonable cost for any adverse environmental, recreational, aesthetic, or other effects caused by the spill and shall take into account:

      (((1))) (a) Characteristics of any oil spilled, such as toxicity, dispersibility, solubility, and persistence, that may affect the severity of the effects on the receiving environment, living organisms, and recreational and aesthetic resources;

      (((2))) (b) The sensitivity of the affected area as determined by such factors as:

      (((a))) (i) The location of the spill;

      (((b))) (ii) Habitat and living resource sensitivity;

      (((c))) (iii) Seasonal distribution or sensitivity of living resources;

      (((d))) (iv) Areas of recreational use or aesthetic importance;

      (((e))) (v) The proximity of the spill to important habitats for birds, aquatic mammals, fish, or to species listed as threatened or endangered under state or federal law;

      (((f))) (vi) Significant archaeological resources as determined by the department of archaeology and historic preservation; and

      (((g))) (vii) Other areas of special ecological or recreational importance, as determined by the department; and

      (((3))) (c) Actions taken by the party who spilled oil or any party liable for the spill that:

      (((a))) (i) Demonstrate a recognition and affirmative acceptance of responsibility for the spill, such as the immediate removal of oil and the amount of oil removed from the environment; or

      (((b))) (ii) Enhance or impede the detection of the spill, the determination of the quantity of oil spilled, or the extent of damage, including the unauthorized removal of evidence such as injured fish or wildlife.

Sec. 10.  RCW 90.56.370 and 2000 c 69 s 21 are each amended to read as follows:

      (1) Any person owning oil or having control over oil that enters the waters of the state in violation of RCW 90.56.320 shall be strictly liable, without regard to fault, for the damages to persons or property, public or private, caused by such entry.

      (2) Damages for which responsible parties are liable under this section include loss of income, net revenue, the means of producing income or revenue, or an economic benefit resulting from an injury to or loss of real or personal property or natural resources.
      (3) Damages for which responsible parties are liable under this section include damages provided in subsections (1) and (2) of this section resulting from the use and deployment of chemical dispersants or from in situ burning in response to a violation of RCW 90.56.320.
      (4) In any action to recover damages resulting from the discharge of oil in violation of RCW 90.56.320, the owner or person having control over the oil shall be relieved from strict liability, without regard to fault, if that person can prove that the discharge was caused solely by:

      (a) An act of war or sabotage;

      (b) An act of God;

      (c) Negligence on the part of the United States government; or

      (d) Negligence on the part of the state of Washington.

      (((3))) (5) The liability established in this section shall in no way affect the rights which:  (a) The owner or other person having control over the oil may have against any person whose acts may in any way have caused or contributed to the discharge of oil, or (b) the state of Washington may have against any person whose actions may have caused or contributed to the discharge of oil.

NEW SECTION.  Sec. 11.  (1) The director of the department of ecology must formally request that the federal government contribute to the establishment of regional oil spill response equipment caches in Washington to ensure adequate response capabilities during a multiple spill event.

      (2) This section expires December 31, 2014."

On page 1, line 2 of the title, after "program;" strike the remainder of the title and insert "amending RCW 88.46.060, 88.46.100, 90.48.366, and 90.56.370; reenacting and amending RCW 88.46.010; adding new sections to chapter 88.46 RCW; creating a new section; prescribing penalties; and providing an expiration date."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1186 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Rolfes spoke in favor of the passage of the bill.

 

      Representative Short spoke against the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Second Substitute House Bill No. 1186, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1186, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 62; Nays, 34; Absent, 0; Excused, 1.

      Voting yea: Representatives Alexander, Angel, Appleton, Billig, Blake, Carlyle, Clibborn, Cody, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Finn, Fitzgibbon, Frockt, Goodman, Green, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Jinkins, Kagi, Kelley, Kenney, Kirby, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Ormsby, Orwall, Pedersen, Pettigrew, Probst, Reykdal, Roberts, Rodne, Rolfes, Ryu, Santos, Seaquist, Sells, Smith, Springer, Stanford, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Zeiger and Mr. Speaker.

      Voting nay: Representatives Ahern, Anderson, Armstrong, Asay, Bailey, Buys, Chandler, Condotta, Crouse, Dahlquist, Fagan, Haler, Hargrove, Harris, Hurst, Johnson, Klippert, Kretz, Kristiansen, McCune, Nealey, Orcutt, Overstreet, Parker, Pearson, Rivers, Ross, Schmick, Shea, Short, Taylor, Walsh, Warnick and Wilcox.

      Excused: Representative Haigh.

 

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1186, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

STATEMENT FOR THE JOURNAL

 

I intended to vote YEA on Engrossed Second Substitute House Bill No. 1186.

Representative Bailey, 10th District

 

THIRD READING

 

MESSAGE FROM THE SENATE

March 30, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1202 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  (1) The liquor control board shall establish a pilot project to allow spirits sampling in state liquor stores as defined in RCW 66.16.010 and contract stores as defined in RCW 66.04.010(11) for the purpose of promoting the sponsor's products.  For purposes of this section, "sponsors" means:  A domestic distiller licensed under RCW 66.24.140 or an accredited representative of a distiller, manufacturer, importer, or distributor of spirituous liquor licensed under RCW 66.24.310.

      (a) The pilot project shall consist of thirty locations with at least six samplings to be conducted at each location between September 1, 2011, and September 1, 2012.  However, no state liquor store or contract store may hold more than one spirits sampling per week during the project period.

      (b) The pilot project locations shall be determined by the board.  Before the board determines which state liquor stores or contract stores will be eligible to participate in the sampling pilot, it shall give:

      (i) Due consideration to the location of the state liquor store or contract store with respect to the proximity of places of worship, schools, and public institutions;

      (ii) Due consideration to motor vehicle accident data in the proximity of the state liquor store or contract store; and

      (iii) Written notice by certified mail of the proposed spirits sampling to places of worship, schools, and public institutions within five hundred feet of the liquor store proposed to offer spirits sampling.

      (c) Sampling must be conducted under the following conditions:

      (i) Sampling may take place only in an area of a state liquor store or contract store in which access to persons under twenty-one years of age is prohibited;

      (ii) Samples may be provided free of charge;

      (iii) Only persons twenty-one years of age or over may sample spirits;

      (iv) Each sample must be one-quarter ounce or less, with no more than one ounce of samples provided per person per day;

      (v) Only sponsors may serve samples;

      (vi) Any person involved in the serving of such samples must have completed a mandatory alcohol server training program;

      (vii) No person who is apparently intoxicated may sample spirits;

      (viii) The product provided for sampling must be available for sale at the state liquor store or contract store where the sampling occurs at the time of the sampling; and

      (ix) Customers must remain on the state liquor store or contract store premise while consuming samples.

      (d) The liquor control board may prohibit sampling at a pilot project location that is within the boundaries of an alcohol impact area recognized by resolution of the board if the board finds that the sampling activities at the location are having an adverse effect on the reduction of chronic public inebriation in the area.

      (e) All other criteria needed to establish and monitor the pilot project shall be determined by the board.

      (f) The board shall report on the pilot project to the appropriate committees of the legislature by December 1, 2012.  The board's report shall include the results of a survey of liquor store managers and contract liquor store managers.

      (2) The liquor control board may adopt rules to implement this section.

Sec. 2.  RCW 66.08.050 and 2005 c 151 s 3 are each amended to read as follows:

      The board, subject to the provisions of this title and the rules, shall:

      (1) Determine the localities within which state liquor stores shall be established throughout the state, and the number and situation of the stores within each locality;

      (2) Appoint in cities and towns and other communities, in which no state liquor store is located, contract liquor stores.  In addition, the board may appoint, in its discretion, a manufacturer that also manufactures liquor products other than wine under a license under this title, as a contract liquor store for the purpose of sale of liquor products of its own manufacture on the licensed premises only.  Such contract liquor stores shall be authorized to sell liquor under the guidelines provided by law, rule, or contract, and such contract liquor stores shall be subject to such additional rules and regulations consistent with this title as the board may require.  Sampling on contract store premises is permitted under this act;

      (3) Establish all necessary warehouses for the storing and bottling, diluting and rectifying of stocks of liquors for the purposes of this title;

      (4) Provide for the leasing for periods not to exceed ten years of all premises required for the conduct of the business; and for remodeling the same, and the procuring of their furnishings, fixtures, and supplies; and for obtaining options of renewal of such leases by the lessee.  The terms of such leases in all other respects shall be subject to the direction of the board;

      (5) Determine the nature, form and capacity of all packages to be used for containing liquor kept for sale under this title;

      (6) Execute or cause to be executed, all contracts, papers, and documents in the name of the board, under such regulations as the board may fix;

      (7) Pay all customs, duties, excises, charges and obligations whatsoever relating to the business of the board;

      (8) Require bonds from all employees in the discretion of the board, and to determine the amount of fidelity bond of each such employee;

      (9) Perform services for the state lottery commission to such extent, and for such compensation, as may be mutually agreed upon between the board and the commission;

      (10) Accept and deposit into the general fund-local account and disburse, subject to appropriation, federal grants or other funds or donations from any source for the purpose of improving public awareness of the health risks associated with alcohol consumption by youth and the abuse of alcohol by adults in Washington state.  The board's alcohol awareness program shall cooperate with federal and state agencies, interested organizations, and individuals to effect an active public beverage alcohol awareness program;

      (11) Perform all other matters and things, whether similar to the foregoing or not, to carry out the provisions of this title, and shall have full power to do each and every act necessary to the conduct of its business, including all buying, selling, preparation and approval of forms, and every other function of the business whatsoever, subject only to audit by the state auditor:  PROVIDED, That the board shall have no authority to regulate the content of spoken language on licensed premises where wine and other liquors are served and where there is not a clear and present danger of disorderly conduct being provoked by such language.

Sec. 3.  RCW 66.16.070 and 1933 ex.s. c 62 s 10 are each amended to read as follows:

      No employee in a state liquor store shall open or consume, or allow to be opened or consumed any liquor on the store premises, except for the purposes of conducting on-premise spirits sampling pursuant to the provisions of this act.

Sec. 4.  RCW 66.28.040 and 2009 c 373 s 8 are each amended to read as follows:

      Except as permitted by the board under RCW 66.20.010, no domestic brewery, microbrewery, distributor, distiller, domestic winery, importer, rectifier, certificate of approval holder, or other manufacturer of liquor shall, within the state of Washington, give to any person any liquor; but nothing in this section nor in RCW 66.28.010 shall prevent a domestic brewery, microbrewery, distributor, domestic winery, distiller, certificate of approval holder, or importer from furnishing samples of beer, wine, or spirituous liquor to authorized licensees for the purpose of negotiating a sale, in accordance with regulations adopted by the liquor control board, provided that the samples are subject to taxes imposed by RCW 66.24.290 and 66.24.210, and in the case of spirituous liquor, any product used for samples must be purchased at retail from the board; nothing in this section shall prevent the furnishing of samples of liquor to the board for the purpose of negotiating the sale of liquor to the state liquor control board; nothing in this section shall prevent a domestic brewery, microbrewery, domestic winery, distillery, certificate of approval holder, or distributor from furnishing beer, wine, or spirituous liquor for instructional purposes under RCW 66.28.150; nothing in this section shall prevent a domestic winery, certificate of approval holder, or distributor from furnishing wine without charge, subject to the taxes imposed by RCW 66.24.210, to a not-for-profit group organized and operated solely for the purpose of enology or the study of viticulture which has been in existence for at least six months and that uses wine so furnished solely for such educational purposes or a domestic winery, or an out-of-state certificate of approval holder, from furnishing wine without charge or a domestic brewery, or an out-of-state certificate of approval holder, from furnishing beer without charge, subject to the taxes imposed by RCW 66.24.210 or 66.24.290, or a domestic distiller licensed under RCW 66.24.140 or an accredited representative of a distiller, manufacturer, importer, or distributor of spirituous liquor licensed under RCW 66.24.310, from furnishing spirits without charge, to a nonprofit charitable corporation or association exempt from taxation under section 501(c)(3) or (6) of the internal revenue code of 1986 (26 U.S.C. Sec. 501(c)(3) or (6)) for use consistent with the purpose or purposes entitling it to such exemption; nothing in this section shall prevent a domestic brewery or microbrewery from serving beer without charge, on the brewery premises; nothing in this section shall prevent donations of wine for the purposes of RCW 66.12.180; nothing in this section shall prevent a domestic winery from serving wine without charge, on the winery premises; ((and)) nothing in this section shall prevent a craft distillery from serving spirits without charge, on the distillery premises subject to RCW 66.24.145; and nothing in this section prohibits spirits sampling under this act.

NEW SECTION.  Sec. 5.  This act expires December 1, 2012."

On page 1, line 1 of the title, after "sampling;" strike the remainder of the title and insert "amending RCW 66.08.050, 66.16.070, and 66.28.040; creating a new section; and providing an expiration date."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1202 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Hunt and Taylor spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1202, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1202, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 85; Nays, 11; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kelley, Kenney, Kirby, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Orcutt, Ormsby, Overstreet, Parker, Pettigrew, Probst, Reykdal, Rivers, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representatives Frockt, Goodman, Kagi, Klippert, McCune, Nealey, Orwall, Pearson, Pedersen, Roberts and Walsh.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1202, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 9, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1211 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 54.16 RCW to read as follows:

      (1) Public utility districts may request voluntary donations from their customers for the purpose of supporting hunger programs.

      (2) Voluntary donations collected by public utility districts under this section must be used by the public utility district to support the maintenance and operation of hunger programs.

      (3) Donations received under this section do not contribute to the gross income of a light and power business or gas distribution business under chapter 82.16 RCW.

      (4) Nothing in this section precludes a public utility district from requesting voluntary donations to support other programs.

NEW SECTION.  Sec. 2.  A new section is added to chapter 35.92 RCW to read as follows:

      (1) Municipal utilities under this chapter may request voluntary donations from their customers for the purpose of supporting hunger programs.

      (2) Voluntary donations collected by municipal utilities under this section must be used by the municipal utility to support the maintenance and operation of hunger programs.

      (3) Donations received under this section do not contribute to the gross income of a light and power business or gas distribution business under chapter 82.16 RCW.

      (4) Nothing in this section precludes a municipal utility from requesting voluntary donations to support other programs.

NEW SECTION.  Sec. 3.  A new section is added to chapter 35A.80 RCW to read as follows:

      (1) Code cities providing utility services under this chapter may request voluntary donations from their customers for the purpose of supporting hunger programs.

      (2) Voluntary donations collected by code cities under this section must be used by the code city to support the maintenance and operation of hunger programs.

      (3) Donations received under this section do not contribute to the gross income of a light and power business or gas distribution business under chapter 82.16 RCW.

      (4) Nothing in this section precludes a code city providing utility services from requesting voluntary donations to support other programs."

On page 1, line 1 of the title, after "programs;" strike the remainder of the title and insert "adding a new section to chapter 54.16 RCW; adding a new section to chapter 35.92 RCW; and adding a new section to chapter 35A.80 RCW."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1211 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Rivers and Van De Wege spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1211, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1211, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1211, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 7, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1220 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 48.02.120 and 1985 c 264 s 2 are each amended to read as follows:

      (1) The commissioner shall preserve in permanent form records of his or her proceedings, hearings, investigations, and examinations, and shall file such records in his or her office.

      (2) The records of the commissioner and insurance filings in his or her office shall be open to public inspection, except as otherwise provided by this code.

      (3) Except as provided in subsection (4) of this section, actuarial formulas, statistics, and assumptions submitted in support of a rate or form filing by an insurer, health care service contractor, or health maintenance organization or submitted to the commissioner upon his or her request shall be withheld from public inspection in order to preserve trade secrets or prevent unfair competition.

(4) For individual and small group health benefit plan rate filings submitted on or after July 1, 2011, subsection (3) of this section applies only to the numeric values of each small group rating factor used by a health carrier as authorized by RCW 48.21.045(3)(a), 48.44.023(3)(a), and 48.46.066(3)(a).  Subsection (3) of this section may continue to apply for a period of one year from the date a new individual or small group product filing is submitted or until the next rate filing for the product, whichever occurs earlier, if the commissioner determines that the proposed rate filing is for a new product that is distinct and unique from any of the carrier's currently or previously offered health benefit plans.  Carriers must make a written request for a product classification as a new product under this subsection and must receive subsequent written approval by the commissioner for this subsection to apply.
      (5) Unless the commissioner has determined that a filing is for a new product pursuant to subsection (4) of this section, for all individual or small group health benefit rate filings submitted on or after July 1, 2011, the health carrier must submit part I rate increase summary and part II written explanation of the rate increase as set forth by the department of health and human services at the time of filing, and the commissioner must:
      (a) Make each filing and the part I rate increase summary and part II written explanation of the rate increase available for public inspection on the tenth calendar day after the commissioner determines that the rate filing is complete and accepts the filing for review through the electronic rate and form filing system; and
      (b) Prepare a standardized rate summary form, to explain his or her findings after the rate review process is completed.  The commissioner's summary form must be included as part of the rate filing documentation and available to the public electronically."

On page 1, line 1 of the title, after "rates;" strike the remainder of the title and insert "and amending RCW 48.02.120."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1220 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Rolfes and Schmick spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1220, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1220, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 95; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representative Hope.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1220, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

STATEMENT FOR THE JOURNAL

 

I intended to vote YEA on Engrossed Substitute House Bill No. 1220.

Representative Hope, 44th District

 

THIRD READING

 

MESSAGE FROM THE SENATE

April 11, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1254  with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  (1) The legislature finds that there are many challenges facing the forest sector, such as climate change, loss of forest cover in rural and urban areas, forest health and fire risks, the development of environmental service markets, the enhancement of habitat and biodiversity, timber and water supply, restoration of forest ecosystems, and the economic health of forest-dependent communities that rely on the retention of working forests.

      (2) The legislature further finds that these forest issues, which occur in both rural and urban environments, and the approaches taken to address the issues, transcend the expertise and mission of the University of Washington school of forest resources and the associated centers and cooperatives.  While each of these centers and cooperatives contribute expertise and resources, the structure and continuity for the integrated, interdisciplinary approach needed to address these complex issues is lacking.

      (3) It is the intent of the legislature for the institute of forest resources to provide the structure and continuity needed by drawing contributions from the associated centers and cooperatives into a more consolidated, collaborative, interdisciplinary, and integrated process that is responsive to the critical issues confronting the forest sector.

Sec. 2.  RCW 76.44.070 and 2010 c 188 s 2 are each amended to read as follows:

      The legislature finds that there are many issues facing the forest sector, such as climate change, forest health and fire, carbon accounting, habitat and diversity, timber and water supplies, economic competitiveness, and the economic health of forest dependent communities.  Enhancing the capability to effectively address these forest issues is critical to the state of Washington.  To meet this need, the University of Washington school of forest resources will continue to work with the various interests concerned with the state's forest resources, including the legislature, state and federal governments, environmental organizations, local communities, the timber industry, and tribes, to improve these entities' ability to competitively recruit, educate, and train a high quality workforce.  In order to meet these goals, it is important to our state, and in particular the University of Washington, to continue to have strong undergraduate and graduate programs in forestry and natural resources to provide well-trained professionals to meet workforce needs.

Sec. 3.  RCW 76.44.020 and 1988 c 81 s 21 are each amended to read as follows:

      The institute of forest resources shall be administered and directed by the ((dean of the college)) director of the school of forest resources ((of)) at the University of Washington ((who shall also be the director of the institute)).

Sec. 4.  RCW 76.44.030 and 1979 c 50 s 5 are each amended to read as follows:

(1) The institute of forest resources shall pursue coordinated research and education related to the forest ((resource)) sector and its multiple ((use)) components, including ((its)):
      (a) Forest conservation, restoration, sustainable management, and utilization; ((its))

(b) The evaluation of the economic, ecological, and societal value of forest land ((use and the maintenance of its)) in both the rural and urban environment;

(c) The manufacture and marketing of forest products, including timber products, nontimber products, environmental services, and the provision of recreation and aesthetic values.

(2) The institute of forest resources must seek to provide a framework for identifying, prioritizing, funding, and conducting interdisciplinary research critical to the forest sector and the development of integrated, synthesized information and decision support tools that improve the understanding of complex forestry issues for stakeholders, policymakers, and other interested parties.
      (3) In pursuit of these objectives, the institute of forest resources is authorized to cooperate, when cooperation advances the objectives listed in this section, with other entities, including but not limited to:
      (a) Universities((,));
      (b) State and federal agencies((, industrial institutions,));
      (c) Conservation and environmental organizations;
      (d) Community and urban forestry organizations; and
      (e) Domestic or foreign((, where such cooperation advances these objectives)) industrial and business institutions.

Sec. 5.  RCW 76.44.050 and 1979 c 50 s 7 are each amended to read as follows:

(1) The institute ((is authorized to)) of forest resources may solicit ((and/or accept funds through)) gifts, grants, ((contracts, or institutional consulting arrangements for the prosecution of any research or education activity which it may undertake in pursuit of its objectives)) conveyances, bequests, and devices, including both real or personal property, in trust or otherwise, to be directed to the institute for carrying out the objectives of the institute as provided in this chapter.
      (2) The institute of forest resources may solicit contracts for work, financial and in-kind contributions, and support from private industries, interest groups, federal and state sources, and other sources deemed appropriate by the director of the institute.
      (3) The institute of forest resources may utilize separately appropriated funds of the University of Washington for the institute's operations and activities.

NEW SECTION.  Sec. 6.  A new section is added to chapter 76.44 RCW to read as follows:

      (1) The director of the school of forest resources at the University of Washington may, at the discretion of the director, appoint and maintain an eleven-member policy advisory committee to advise the director on policies for the institute of forest resources that are consistent with the institute's objectives as provided in this chapter.

      (2) If activated, the membership of the policy advisory committee must represent, to the extent possible, the various interests concerned with the institute of forest resources, including state and federal agencies, tribal governments, conservation and environmental organizations, urban forestry interests, rural communities, industry, and business.

      (3) Members of the advisory committee may not receive any salary or other compensation for service on the advisory committee.  However, each member may be compensated, at the discretion of the director of the institute, for each day in actual attendance at or traveling to and from meetings of the advisory committee in accordance with RCW 43.03.220 together with travel expenses in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION.  Sec. 7.  A new section is added to chapter 76.44 RCW to read as follows:

      The director of the school of forest resources at the University of Washington shall coordinate the various cooperatives and centers within the school of forest resources to promote a holistic, efficient, and integrated approach that broadens the research and outreach programs and addresses issues facing the forest sector."

On page 1, line 1 of the title, after "resources;" strike the remainder of the title and insert "amending RCW 76.44.070, 76.44.020, 76.44.030, and 76.44.050; adding new sections to chapter 76.44 RCW; and creating a new section."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1254 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Lytton and Chandler spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1254, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1254, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1254, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 8, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1290 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 49.28.130 and 2002 c 112 s 2 are each amended to read as follows:

      The definitions in this section apply throughout this section and RCW 49.28.140 and 49.28.150 unless the context clearly requires otherwise.

      (1) "Employee" means a licensed practical nurse or a registered nurse licensed under chapter 18.79 RCW employed by a health care facility who is involved in direct patient care activities or clinical services and receives an hourly wage.

      (2) "Employer" means an individual, partnership, association, corporation, the state ((institution)), a political subdivision of the state, or person or group of persons, acting directly or indirectly in the interest of a health care facility.

      (3)(a) "Health care facility" means the following facilities, or any part of the facility, including such facilities if owned and operated by a political subdivision or instrumentality of the state, that operate((s)) on a twenty-four hours per day, seven days per week basis:

(i) Hospices licensed under chapter 70.127 RCW((,));
      (ii) Hospitals licensed under chapter 70.41 RCW((,));
      (iii) Rural health care facilities as defined in RCW 70.175.020((, and));
      (iv) Psychiatric hospitals licensed under chapter 71.12 RCW((, and includes such facilities if owned and operated by a political subdivision or instrumentality of the state)); or
      (v) Facilities owned and operated by the department of corrections or by a governing unit as defined in RCW 70.48.020 in a correctional institution as defined in RCW 9.94.049 that provide health care services to inmates as defined in RCW 72.09.015.

(b) If a nursing home regulated under chapter 18.51 RCW or a home health agency regulated under chapter 70.127 RCW is operating under the license of a health care facility, the nursing home or home health agency is considered part of the health care facility for the purposes of this subsection.

      (4) "Overtime" means the hours worked in excess of an agreed upon, predetermined, regularly scheduled shift within a twenty-four hour period not to exceed twelve hours in a twenty-four hour period or eighty hours in a consecutive fourteen-day period.

      (5) "On-call time" means time spent by an employee who is not working on the premises of the place of employment but who is compensated for availability or who, as a condition of employment, has agreed to be available to return to the premises of the place of employment on short notice if the need arises.

      (6) "Reasonable efforts" means that the employer, to the extent reasonably possible, does all of the following but is unable to obtain staffing coverage:

      (a) Seeks individuals to volunteer to work extra time from all available qualified staff who are working;

      (b) Contacts qualified employees who have made themselves available to work extra time;

      (c) Seeks the use of per diem staff; and

      (d) Seeks personnel from a contracted temporary agency when such staffing is permitted by law or an applicable collective bargaining agreement, and when the employer regularly uses a contracted temporary agency.

      (7) "Unforeseeable emergent circumstance" means (a) any unforeseen declared national, state, or municipal emergency; (b) when a health care facility disaster plan is activated; or (c) any unforeseen disaster or other catastrophic event which substantially affects or increases the need for health care services.

NEW SECTION.  Sec. 2.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2011, in the omnibus appropriations act, this act is null and void."

On page 1, line 2 of the title, after "employees;" strike the remainder of the title and insert "amending RCW 49.28.130; and creating a new section."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1290 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Green spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1290, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1290, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1290, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 7, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1306 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 46.25.060 and 2009 c 339 s 1 are each amended to read as follows:

      (1)(a) No person may be issued a commercial driver's license unless that person is a resident of this state, has successfully completed a course of instruction in the operation of a commercial motor vehicle that has been approved by the director or has been certified by an employer as having the skills and training necessary to operate a commercial motor vehicle safely, and has passed a knowledge and skills test for driving a commercial motor vehicle that complies with minimum federal standards established by federal regulation enumerated in 49 C.F.R. part 383, subparts G and H, and has satisfied all other requirements of the CMVSA in addition to other requirements imposed by state law or federal regulation.  The tests must be prescribed and conducted by the department.  In addition to the fee charged for issuance or renewal of any license, the applicant shall pay a fee of no more than ten dollars for each classified knowledge examination, classified endorsement knowledge examination, or any combination of classified license and endorsement knowledge examinations.  The applicant shall pay a fee of no more than one hundred dollars for each classified skill examination or combination of classified skill examinations conducted by the department.

      (b) The department may authorize a person, including an agency of this or another state, an employer, a private driver training facility, or other private institution, or a department, agency, or instrumentality of local government, to administer the skills test specified by this section under the following conditions:

      (i) The test is the same which would otherwise be administered by the state;

      (ii) The third party has entered into an agreement with the state that complies with the requirements of 49 C.F.R. part 383.75; and

      (iii) The director has adopted rules as to the third party testing program and the development and justification for fees charged by any third party.

      (c) If the applicant's primary use of a commercial driver's license is for any of the following, then the applicant shall pay a fee of no more than seventy-five dollars for each classified skill examination or combination of classified skill examinations whether conducted by the department or a third-party tester:

      (i) Public benefit not-for-profit corporations that are federally supported head start programs; or

      (ii) Public benefit not-for-profit corporations that support early childhood education and assistance programs as described in RCW 43.215.405(((4))) (2).

      (2) The department shall work with the office of the superintendent of public instruction to develop modified P1 and P2 skill examinations that also include the skill examination components required to obtain an "S" endorsement.  In no event may a new applicant for an "S" endorsement be required to take two separate examinations to obtain an "S" endorsement and either a P1 or P2 endorsement, unless that applicant is upgrading his or her existing commercial driver's license to include an "S" endorsement.  The combined P1/S or P2/S skill examination must be offered to the applicant at the same cost as a regular P1 or P2 skill examination.

      (3)(a) The department may waive the skills test and the requirement for completion of a course of instruction in the operation of a commercial motor vehicle specified in this section for a commercial driver's license applicant who meets the requirements of 49 C.F.R. part 383.77.

      (b) An applicant who operates a commercial motor vehicle for agribusiness purposes is exempt from the course of instruction completion and employer skills and training certification requirements under this section.  By January 1, 2010, the department shall submit recommendations regarding the continuance of this exemption to the transportation committees of the legislature.  For purposes of this subsection (3)(b), "agribusiness" means a private carrier who in the normal course of business primarily transports:

      (i) Farm machinery, farm equipment, implements of husbandry, farm supplies, and materials used in farming;

      (ii) Agricultural inputs, such as seed, feed, fertilizer, and crop protection products;

      (iii) Unprocessed agricultural commodities, as defined in RCW 17.21.020, where such commodities are produced by farmers, ranchers, vineyardists, or orchardists; or

      (iv) Any combination of (b)(i) through (iii) of this subsection.

      ((This subsection (3)(b) expires July 1, 2011.)) The department shall notify the transportation committees of the legislature if the federal government takes action affecting the exemption provided in this subsection (3)(b).

      (4) A commercial driver's license or commercial driver's instruction permit may not be issued to a person while the person is subject to a disqualification from driving a commercial motor vehicle, or while the person's driver's license is suspended, revoked, or canceled in any state, nor may a commercial driver's license be issued to a person who has a commercial driver's license issued by any other state unless the person first surrenders all such licenses, which must be returned to the issuing state for cancellation.

      (5)(a) The department may issue a commercial driver's instruction permit to an applicant who is at least eighteen years of age and holds a valid Washington state driver's license and who has submitted a proper application, passed the general knowledge examination required for issuance of a commercial driver's license under subsection (1) of this section, and paid the appropriate fee for the knowledge examination and an application fee of ten dollars.

      (b) A commercial driver's instruction permit may not be issued for a period to exceed six months.  Only one renewal or reissuance may be granted within a two-year period.

      (c) The holder of a commercial driver's instruction permit may drive a commercial motor vehicle on a highway only when accompanied by the holder of a commercial driver's license valid for the type of vehicle driven who occupies a seat beside the individual for the purpose of giving instruction in driving the commercial motor vehicle.  The holder of a commercial driver's instruction permit is not authorized to operate a commercial motor vehicle transporting hazardous materials.

      (d) The department shall transmit the fees collected for commercial driver's instruction permits to the state treasurer.

NEW SECTION.  Sec. 2.  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 July 1, 2011."

On page 1, line 3 of the title, after "requirements;" strike the remainder of the title and insert "amending RCW 46.25.060; providing an effective date; and declaring an emergency."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1306 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Lytton and Armstrong spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1306, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1306, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1306, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

STATEMENT FOR THE JOURNAL

 

I intended to vote NAY on House Bill No. 1306.

Representative Hasegawa, 11th District

 

THIRD READING

 

MESSAGE FROM THE SENATE

April 6, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1309 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 64.34.020 and 2008 c 115 s 8 are each amended to read as follows:

      In the declaration and bylaws, unless specifically provided otherwise or the context requires otherwise, and in this chapter:

      (1) "Affiliate" means any person who controls, is controlled by, or is under common control with the referenced person.  A person "controls" another person if the person:  (a) Is a general partner, officer, director, or employer of the referenced person; (b) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent of the voting interest in the referenced person; (c) controls in any manner the election of a majority of the directors of the referenced person; or (d) has contributed more than twenty percent of the capital of the referenced person.  A person "is controlled by" another person if the other person:  (i) Is a general partner, officer, director, or employer of the person; (ii) directly or indirectly or acting in concert with one or more other persons, or through one or more subsidiaries, owns, controls, holds with power to vote, or holds proxies representing, more than twenty percent of the voting interest in the person; (iii) controls in any manner the election of a majority of the directors of the person; or (iv) has contributed more than twenty percent of the capital of the person.  Control does not exist if the powers described in this subsection are held solely as security for an obligation and are not exercised.

      (2) "Allocated interests" means the undivided interest in the common elements, the common expense liability, and votes in the association allocated to each unit.

      (3) "Assessment" means all sums chargeable by the association against a unit including, without limitation:  (a) Regular and special assessments for common expenses, charges, and fines imposed by the association; (b) interest and late charges on any delinquent account; and (c) costs of collection, including reasonable attorneys' fees, incurred by the association in connection with the collection of a delinquent owner's account.

      (4) "Association" or "unit owners' association" means the unit owners' association organized under RCW 64.34.300.

      (5) "Board of directors" means the body, regardless of name, with primary authority to manage the affairs of the association.

      (6) "Common elements" means all portions of a condominium other than the units.

      (7) "Common expenses" means expenditures made by or financial liabilities of the association, together with any allocations to reserves.

      (8) "Common expense liability" means the liability for common expenses allocated to each unit pursuant to RCW 64.34.224.

      (9) "Condominium" means real property, portions of which are designated for separate ownership and the remainder of which is designated for common ownership solely by the owners of those portions.  Real property is not a condominium unless the undivided interests in the common elements are vested in the unit owners, and unless a declaration and a survey map and plans have been recorded pursuant to this chapter.

      (10) "Contribution rate" means, in a reserve study as described in RCW 64.34.380, the amount contributed to the reserve account so that the association will have cash reserves to pay major maintenance, repair, or replacement costs without the need of a special assessment.

      (11) "Conversion condominium" means a condominium (a) that at any time before creation of the condominium was lawfully occupied wholly or partially by a tenant or subtenant for residential purposes pursuant to a rental agreement, oral or written, express or implied, for which the tenant or subtenant had not received the notice described in (b) of this subsection; or (b) that, at any time within twelve months before the conveyance of, or acceptance of an agreement to convey, any unit therein other than to a declarant or any affiliate of a declarant, was lawfully occupied wholly or partially by a residential tenant of a declarant or an affiliate of a declarant and such tenant was not notified in writing, prior to lawfully occupying a unit or executing a rental agreement, whichever event first occurs, that the unit was part of a condominium and subject to sale.  "Conversion condominium" shall not include a condominium in which, before July 1, 1990, any unit therein had been conveyed or been made subject to an agreement to convey to any transferee other than a declarant or an affiliate of a declarant.

      (12) "Conveyance" means any transfer of the ownership of a unit, including a transfer by deed or by real estate contract and, with respect to a unit in a leasehold condominium, a transfer by lease or assignment thereof, but shall not include a transfer solely for security.

      (13) "Dealer" means a person who, together with such person's affiliates, owns or has a right to acquire either six or more units in a condominium or fifty percent or more of the units in a condominium containing more than two units.

      (14) "Declarant" means:

      (a) Any person who executes as declarant a declaration as defined in subsection (16) of this section; or

      (b) Any person who reserves any special declarant right in the declaration; or

      (c) Any person who exercises special declarant rights or to whom special declarant rights are transferred; or

      (d) Any person who is the owner of a fee interest in the real property which is subjected to the declaration at the time of the recording of an instrument pursuant to RCW 64.34.316 and who directly or through one or more affiliates is materially involved in the construction, marketing, or sale of units in the condominium created by the recording of the instrument.

      (15) "Declarant control" means the right of the declarant or persons designated by the declarant to appoint and remove officers and members of the board of directors, or to veto or approve a proposed action of the board or association, pursuant to RCW 64.34.308 (((4) or)) (5) or (6).

      (16) "Declaration" means the document, however denominated, that creates a condominium by setting forth the information required by RCW 64.34.216 and any amendments to that document.

      (17) "Development rights" means any right or combination of rights reserved by a declarant in the declaration to:  (a) Add real property or improvements to a condominium; (b) create units, common elements, or limited common elements within real property included or added to a condominium; (c) subdivide units or convert units into common elements; (d) withdraw real property from a condominium; or (e) reallocate limited common elements with respect to units that have not been conveyed by the declarant.

      (18) "Dispose" or "disposition" means a voluntary transfer or conveyance to a purchaser or lessee of any legal or equitable interest in a unit, but does not include the transfer or release of a security interest.

      (19) "Effective age" means the difference between the estimated useful life and remaining useful life.

      (20) "Eligible mortgagee" means the holder of a mortgage on a unit that has filed with the secretary of the association a written request that it be given copies of notices of any action by the association that requires the consent of mortgagees.

      (21) "Foreclosure" means a forfeiture or judicial or nonjudicial foreclosure of a mortgage or a deed in lieu thereof.

      (22) "Fully funded balance" means the current value of the deteriorated portion, not the total replacement value, of all the reserve components.  The fully funded balance for each reserve component is calculated by multiplying the current replacement cost of that reserve component by its effective age, then dividing the result by that reserve component's useful life.  The sum total of all reserve components' fully funded balances is the association's fully funded balance.

      (23) "Identifying number" means the designation of each unit in a condominium.

      (24) "Leasehold condominium" means a condominium in which all or a portion of the real property is subject to a lease, the expiration or termination of which will terminate the condominium or reduce its size.

      (25) "Limited common element" means a portion of the common elements allocated by the declaration or by operation of RCW 64.34.204 (2) or (4) for the exclusive use of one or more but fewer than all of the units.

      (26) "Master association" means an organization described in RCW 64.34.276, whether or not it is also an association described in RCW 64.34.300.

      (27) "Mortgage" means a mortgage, deed of trust or real estate contract.

      (28) "Person" means a natural person, corporation, partnership, limited partnership, trust, governmental subdivision or agency, or other legal entity.

      (29) "Purchaser" means any person, other than a declarant or a dealer, who by means of a disposition acquires a legal or equitable interest in a unit other than (a) a leasehold interest, including renewal options, of less than twenty years at the time of creation of the unit, or (b) as security for an obligation.

      (30) "Real property" means any fee, leasehold or other estate or interest in, over, or under land, including structures, fixtures, and other improvements thereon and easements, rights and interests appurtenant thereto which by custom, usage, or law pass with a conveyance of land although not described in the contract of sale or instrument of conveyance.  "Real property" includes parcels, with or without upper or lower boundaries, and spaces that may be filled with air or water.

      (31) "Remaining useful life" means the estimated time, in years, ((that a reserve component can be expected to continue to serve)) before a reserve component will require major maintenance, repair, or replacement to perform its intended function.

      (32) "Replacement cost" means the current cost of replacing, repairing, or restoring a reserve component to its original functional condition.

      (33) "Residential purposes" means use for dwelling or recreational purposes, or both.

      (34) "Reserve component((s))" means a common element((s)) whose cost of maintenance, repair, or replacement is infrequent, significant, and impractical to include in an annual budget.

      (35) "Reserve study professional" means an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with RCW 64.34.380 and 64.34.382.

      (36) "Special declarant rights" means rights reserved for the benefit of a declarant to:  (a) Complete improvements indicated on survey maps and plans filed with the declaration under RCW 64.34.232; (b) exercise any development right under RCW 64.34.236; (c) maintain sales offices, management offices, signs advertising the condominium, and models under RCW 64.34.256; (d) use easements through the common elements for the purpose of making improvements within the condominium or within real property which may be added to the condominium under RCW 64.34.260; (e) make the condominium part of a larger condominium or a development under RCW 64.34.280; (f) make the condominium subject to a master association under RCW 64.34.276; or (g) appoint or remove any officer of the association or any master association or any member of the board of directors, or to veto or approve a proposed action of the board or association, during any period of declarant control under RCW 64.34.308(((4))) (5).

      (37) "Timeshare" shall have the meaning specified in the timeshare act, RCW 64.36.010(11).

      (38) "Unit" means a physical portion of the condominium designated for separate ownership, the boundaries of which are described pursuant to RCW 64.34.216(1)(d).  "Separate ownership" includes leasing a unit in a leasehold condominium under a lease that expires contemporaneously with any lease, the expiration or termination of which will remove the unit from the condominium.

      (39) "Unit owner" means a declarant or other person who owns a unit or leases a unit in a leasehold condominium under a lease that expires simultaneous­ly with any lease, the expiration or termination of which will remove the unit from the condominium, but does not include a person who has an interest in a unit solely as security for an obligation.  "Unit owner" means the vendee, not the vendor, of a unit under a real estate contract.

      (40) "Useful life" means the estimated time, ((in)) between years, that ((a reserve component can be expected to serve its intended function)) major maintenance, repair, or replacement is estimated to occur.

(41) "Baseline funding plan" means establishing a reserve funding goal of maintaining a reserve account balance above zero dollars throughout the thirty-year study period described under RCW 64.34.380.
      (42) "Full funding plan" means setting a reserve funding goal of achieving one hundred percent fully funded reserves by the end of the thirty-year study period described under RCW 64.34.380, in which the reserve account balance equals the sum of the deteriorated portion of all reserve components.
      (43) "Significant assets" means that the current total cost of major maintenance, repair, and replacement of the reserve components is fifty percent or more of the gross budget of the association, excluding reserve account funds.

Sec. 2.  RCW 64.34.308 and 1992 c 220 s 15 are each amended to read as follows:

      (1) Except as provided in the declaration, the bylaws, subsection (2) of this section, or other provisions of this chapter, the board of directors shall act in all instances on behalf of the association.  In the performance of their duties, the officers and members of the board of directors are required to exercise:  (a) If appointed by the declarant, the care required of fiduciaries of the unit owners; or (b) if elected by the unit owners, ordinary and reasonable care.

      (2) The board of directors shall not act on behalf of the association to amend the declaration in any manner that requires the vote or approval of the unit owners pursuant to RCW 64.34.264, to terminate the condominium pursuant to RCW 64.34.268, or to elect members of the board of directors or determine the qualifications, powers, and duties, or terms of office of members of the board of directors pursuant to subsection (((6))) (7) of this section; but the board of directors may fill vacancies in its membership for the unexpired portion of any term.

      (3) Within thirty days after adoption of any proposed budget for the condominium, the board of directors shall provide a summary of the budget to all the unit owners and shall set a date for a meeting of the unit owners to consider ratification of the budget not less than fourteen nor more than sixty days after mailing of the summary.  Unless at that meeting the owners of units to which a majority of the votes in the association are allocated or any larger percentage specified in the declaration reject the budget, the budget is ratified, whether or not a quorum is present.  In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the unit owners shall be continued until such time as the unit owners ratify a subsequent budget proposed by the board of directors.

      (4) As part of the summary of the budget provided to all unit owners, the board of directors shall disclose to the unit owners:
      (a) The current amount of regular assessments budgeted for contribution to the reserve account, the recommended contribution rate from the reserve study, and the funding plan upon which the recommended contribution rate is based;
      (b) If additional regular or special assessments are scheduled to be imposed, the date the assessments are due, the amount of the assessments per each unit per month or year, and the purpose of the assessments;
      (c) Based upon the most recent reserve study and other information, whether currently projected reserve account balances will be sufficient at the end of each year to meet the association's obligation for major maintenance, repair, or replacement of reserve components during the next thirty years;
      (d) If reserve account balances are not projected to be sufficient, what additional assessments may be necessary to ensure that sufficient reserve account funds will be available each year during the next thirty years, the approximate dates assessments may be due, and the amount of the assessments per unit per month or year;
      (e) The estimated amount recommended in the reserve account at the end of the current fiscal year based on the most recent reserve study, the projected reserve account cash balance at the end of the current fiscal year, and the percent funded at the date of the latest reserve study;
      (f) The estimated amount recommended in the reserve account based upon the most recent reserve study at the end of each of the next five budget years, the projected reserve account cash balance in each of those years, and the projected percent funded for each of those years; and
      (g) If the funding plan approved by the association is implemented, the projected reserve account cash balance in each of the next five budget years and the percent funded for each of those years.
      (5)(a) Subject to subsection (((5))) (6) of this section, the declaration may provide for a period of declarant control of the association, during which period a declarant, or persons designated by the declarant, may:  (i) Appoint and remove the officers and members of the board of directors; or (ii) veto or approve a proposed action of the board or association.  A declarant's failure to veto or approve such proposed action in writing within thirty days after receipt of written notice of the proposed action shall be deemed approval by the declarant.

      (b) Regardless of the period provided in the declaration, a period of declarant control terminates no later than the earlier of:  (i) Sixty days after conveyance of seventy-five percent of the units which may be created to unit owners other than a declarant; (ii) two years after the last conveyance or transfer of record of a unit except as security for a debt; (iii) two years after any development right to add new units was last exercised; or (iv) the date on which the declarant records an amendment to the declaration pursuant to which the declarant voluntarily surrenders the right to further appoint and remove officers and members of the board of directors.  A declarant may voluntarily surrender the right to appoint and remove officers and members of the board of directors before termination of that period pursuant to (i), (ii), and (iii) of this subsection (((4))) (5)(b), but in that event the declarant may require, for the duration of the period of declarant control, that specified actions of the association or board of directors, as described in a recorded instrument executed by the declarant, be approved by the declarant before they become effective.

      (((5))) (6) Not later than sixty days after conveyance of twenty- five percent of the units which may be created to unit owners other than a declarant, at least one member and not less than twenty-five percent of the members of the board of directors must be elected by unit owners other than the declarant.  Not later than sixty days after conveyance of fifty percent of the units which may be created to unit owners other than a declarant, not less than thirty-three and one-third percent of the members of the board of directors must be elected by unit owners other than the declarant.

      (((6))) (7) Within thirty days after the termination of any period of declarant control, the unit owners shall elect a board of directors of at least three members, at least a majority of whom must be unit owners.  The number of directors need not exceed the number of units then in the condominium.  The board of directors shall elect the officers.  Such members of the board of directors and officers shall take office upon election.

      (((7))) (8) Notwithstanding any provision of the declaration or bylaws to the contrary, the unit owners, by a two-thirds vote of the voting power in the association present and entitled to vote at any meeting of the unit owners at which a quorum is present, may remove any member of the board of directors with or without cause, other than a member appointed by the declarant.  The declarant may not remove any member of the board of directors elected by the unit owners.  Prior to the termination of the period of declarant control, the unit owners, other than the declarant, may remove by a two-thirds vote, any director elected by the unit owners.

Sec. 3.  RCW 64.34.380 and 2008 c 115 s 1 are each amended to read as follows:

      (1) An association is encouraged to establish a reserve account with a financial institution to fund major maintenance, repair, and replacement of common elements, including limited common elements that will require major maintenance, repair, or replacement within thirty years.  ((A reserve account shall be established in the name of the association.)) If the association establishes a reserve account, the account must be in the name of the association.  The board of directors is responsible for administering the reserve account.

      (2) Unless doing so would impose an unreasonable hardship, an association with significant assets shall prepare and update a reserve study, in accordance with the association's governing documents and RCW 64.34.224(1).  The initial reserve study must be based upon a visual site inspection conducted by a reserve study professional.

      (3) Unless doing so would impose an unreasonable hardship, the association shall update the reserve study annually.  At least every three years, an updated reserve study must be prepared and based upon a visual site inspection conducted by a reserve study professional.

      (4) This section and RCW 64.34.382 through ((64.34.390)) 64.34.392 apply to condominiums governed by chapter 64.32 RCW or this chapter and intended in whole or in part for residential purposes.  These sections do not apply to condominiums consisting solely of units that are restricted in the declaration to nonresidential use.  An association's governing documents may contain stricter requirements.

Sec. 4.  RCW 64.34.382 and 2008 c 115 s 2 are each amended to read as follows:

      (1) A reserve study as described in RCW 64.34.380 is supplemental to the association's operating and maintenance budget.  In preparing a reserve study, the association shall estimate the anticipated major maintenance, repair, and replacement costs, whose infrequent and significant nature make them impractical to be included in an annual budget.

      (2) A reserve study ((shall)) must include:

      (a) A reserve component list, including roofing, painting, paving, decks, siding, plumbing, windows, and any other reserve component that would cost more than one percent of the annual budget for major maintenance, repair, or replacement.  If one of these reserve components is not included in the reserve study, the study should provide commentary explaining the basis for its exclusion.  The study must also include quantities and estimates for the useful life of each reserve component, remaining useful life of each reserve component, and current repair and replacement cost for each component;

      (b) The date of the study and a statement that the study meets the requirements of this section;

      (c) The following level of reserve study performed:

      (i) Level I:  Full reserve study funding analysis and plan;

      (ii) Level II:  Update with visual site inspection; or

      (iii) Level III:  Update with no visual site inspection;

      (d) The association's reserve account balance;

      (e) The percentage of the fully funded balance that the reserve account is funded;

      (f) Special assessments already implemented or planned;

      (g) Interest and inflation assumptions;

      (h) Current reserve account contribution rate;

      (i) A recommended reserve account contribution rate, a contribution rate for a full funding plan to achieve one hundred percent fully funded reserves by the end of the thirty-year study period, a baseline funding plan to maintain the reserve balance above zero throughout the thirty-year study period without special assessments, and a contribution rate recommended by a reserve study professional;

      (j) A projected reserve account balance for thirty years and a funding plan to pay for projected costs from those reserves without reliance on future unplanned special assessments; and

      (k) A statement on whether the reserve study was prepared with the assistance of a reserve study professional.

      (3) A reserve study shall include the following disclosure:

 

                       "This reserve study should be reviewed carefully.  It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement.  The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component."

 

Sec. 5.  RCW 64.34.384 and 2008 c 115 s 3 are each amended to read as follows:

      An association may withdraw funds from its reserve account to pay for unforeseen or unbudgeted costs that are unrelated to maintenance, repair, or replacement of the reserve components.  The board of directors shall record any such withdrawal in the minute books of the association, cause notice of any such withdrawal to be hand delivered or sent prepaid by first-class United States mail to the mailing address of each unit or to any other mailing address designated in writing by the unit owner, and adopt a repayment schedule not to exceed twenty-four months unless it determines that repayment within twenty- four months would impose an unreasonable burden on the unit owners. Payment for major maintenance, repair, or replacement of the reserve components out of cycle with the reserve study projections or not included in the reserve study may be made from the reserve account without meeting the notification or repayment requirements under this section.

Sec. 6.  RCW 64.34.010 and 2008 c 115 s 7 and 2008 c 114 s 1 are each reenacted and amended to read as follows:

      (1) This chapter applies to all condominiums created within this state after July 1, 1990.  RCW 64.34.040 (separate titles and taxation), RCW 64.34.050 (applicability of local ordinances, regulations, and building codes), RCW 64.34.060 (condemnation), RCW 64.34.208 (construction and validity of declaration and bylaws), RCW 64.34.268 (1) through (7) and (10) (termination of condominium), RCW 64.34.212 (description of units), RCW 64.34.304­(1) (a) through (f) and (k) through (((r))) (t) (powers of unit owners' association), RCW 64.34.308(1) (board of directors and officers), RCW 64.34.340 (voting—‌proxies), RCW 64.34.344 (tort and contract liability), RCW 64.34.354 (notification on sale of unit), RCW 64.34.360(3) (common expenses—‌assessments), RCW 64.34.364 (lien for assessments), RCW 64.34.372 (association records), RCW 64.34.425 (resales of units), RCW 64.34.455 (effect of violation on rights of action; attorney's fees), RCW 64.34.380 through ((34.34.390)) 64.34.392 (reserve studies and accounts), and RCW 64.34.020 (definitions) to the extent necessary in construing any of those sections, apply to all condominiums created in this state before July 1, 1990; but those sections apply only with respect to events and circumstances occurring after July 1, 1990, and do not invalidate or supersede existing, inconsistent provisions of the declaration, bylaws, or survey maps or plans of those condominiums.

      (2) The provisions of chapter 64.32 RCW do not apply to condominiums created after July 1, 1990, and do not invalidate any amendment to the declaration, bylaws, and survey maps and plans of any condominium created before July 1, 1990, if the amendment would be permitted by this chapter.  The amendment must be adopted in conformity with the procedures and requirements specified by those instruments and by chapter 64.32 RCW.  If the amendment grants to any person any rights, powers, or privileges permitted by this chapter which are not otherwise provided for in the declaration or chapter 64.32 RCW, all correlative obligations, liabilities, and restrictions in this chapter also apply to that person.

      (3) This chapter does not apply to condominiums or units located outside this state.

      (4) RCW 64.34.400 (applicability—‌waiver), RCW 64.34.405 (liability for public offering statement requirements), RCW 64.34.410 (public offering statement—‌general provisions), RCW 64.34.415 (public offering statement—‌conversion condominiums), RCW 64.34.420 (purchaser's right to cancel), RCW 64.34.430 (escrow of deposits), RCW 64.34.440 (conversion condominiums—‌notice—‌tenants(([-relocation assistance]))-relocation assistance), and RCW 64.34.455 (effect of violations on rights of action—‌attorney's fees) apply with respect to all sales of units pursuant to purchase agreements entered into after July 1, 1990, in condominiums created before July 1, 1990, in which as of July 1, 1990, the declarant or an affiliate of the declarant owns or had the right to create at least ten units constituting at least twenty percent of the units in the condominium.

Sec. 7.  RCW 64.38.010 and 1995 c 283 s 2 are each amended to read as follows:

      For purposes of this chapter:

      (1) "Homeowners' association" or "association" means a corporation, unincorporated association, or other legal entity, each member of which is an owner of residential real property located within the association's jurisdiction, as described in the governing documents, and by virtue of membership or ownership of property is obligated to pay real property taxes, insurance premiums, maintenance costs, or for improvement of real property other than that which is owned by the member.  "Homeowners' association" does not mean an association created under chapter 64.32 or 64.34 RCW.

      (2) "Governing documents" means the articles of incorporation, bylaws, plat, declaration of covenants, conditions, and restrictions, rules and regulations of the association, or other written instrument by which the association has the authority to exercise any of the powers provided for in this chapter or to manage, maintain, or otherwise affect the property under its jurisdiction.

      (3) "Board of directors" or "board" means the body, regardless of name, with primary authority to manage the affairs of the association.

      (4) "Common areas" means property owned, or otherwise maintained, repaired or administered by the association.

      (5) "Common expense" means the costs incurred by the association to exercise any of the powers provided for in this chapter.

      (6) "Residential real property" means any real property, the use of which is limited by law, covenant or otherwise to primarily residential or recreational purposes.

(7) "Assessment" means all sums chargeable to an owner by an association in accordance with RCW 64.38.020.
      (8) "Baseline funding plan" means establishing a reserve funding goal of maintaining a reserve account balance above zero dollars throughout the thirty-year study period described under section 9 of this act.
      (9) "Contribution rate" means, in a reserve study as described in RCW 64.34.380, the amount contributed to the reserve account so that the association will have cash reserves to pay major maintenance, repair, or replacement costs without the need of a special assessment.
      (10) "Effective age" means the difference between the estimated useful life and remaining useful life.
      (11) "Full funding plan" means setting a reserve funding goal of achieving one hundred percent fully funded reserves by the end of the thirty-year study period described under section 9 of this act, in which the reserve account balance equals the sum of the deteriorated portion of all reserve components.
      (12) "Fully funded balance" means the current value of the deteriorated portion, not the total replacement value, of all the reserve components.  The fully funded balance for each reserve component is calculated by multiplying the current replacement cost of the reserve component by its effective age, then dividing the result by the reserve component's useful life.  The sum total of all reserve components' fully funded balances is the association's fully funded balance.
      (13) "Lot" means a physical portion of the real property located within an association's jurisdiction designated for separate ownership.
      (14) "Owner" means the owner of a lot, but does not include a person who has an interest in a lot solely as security for an obligation.  "Owner" also means the vendee, not the vendor, of a lot under a real estate contract.
      (15) "Remaining useful life" means the estimated time, in years, before a reserve component will require major maintenance, repair, or replacement to perform its intended function.
      (16) "Replacement cost" means the current cost of replacing, repairing, or restoring a reserve component to its original functional condition.
      (17) "Reserve component" means a common element whose cost of maintenance, repair, or replacement is infrequent, significant, and impractical to include in an annual budget.
      (18) "Reserve study professional" means an independent person who is suitably qualified by knowledge, skill, experience, training, or education to prepare a reserve study in accordance with RCW 64.34.380 and 64.34.382.
      (19) "Significant assets" means that the current replacement value of the major reserve components is seventy-five percent or more of the gross budget of the association, excluding the association's reserve account funds.
      (20) "Useful life" means the estimated time, between years, that major maintenance, repair, or replacement is estimated to occur.

Sec. 8.  RCW 64.38.025 and 1995 c 283 s 5 are each amended to read as follows:

      (1) Except as provided in the association's governing documents or this chapter, the board of directors shall act in all instances on behalf of the association.  In the performance of their duties, the officers and members of the board of directors shall exercise the degree of care and loyalty required of an officer or director of a corporation organized under chapter 24.03 RCW.

      (2) The board of directors shall not act on behalf of the association to amend the articles of incorporation, to take any action that requires the vote or approval of the owners, to terminate the association, to elect members of the board of directors, or to determine the qualifications, powers, and duties, or terms of office of members of the board of directors; but the board of directors may fill vacancies in its membership of the unexpired portion of any term.

      (3) Within thirty days after adoption by the board of directors of any proposed regular or special budget of the association, the board shall set a date for a meeting of the owners to consider ratification of the budget not less than fourteen nor more than sixty days after mailing of the summary.  Unless at that meeting the owners of a majority of the votes in the association are allocated or any larger percentage specified in the governing documents reject the budget, in person or by proxy, the budget is ratified, whether or not a quorum is present.  In the event the proposed budget is rejected or the required notice is not given, the periodic budget last ratified by the owners shall be continued until such time as the owners ratify a subsequent budget proposed by the board of directors.

      (4) As part of the summary of the budget provided to all owners, the board of directors shall disclose to the owners:
      (a) The current amount of regular assessments budgeted for contribution to the reserve account, the recommended contribution rate from the reserve study, and the funding plan upon which the recommended contribution rate is based;
      (b) If additional regular or special assessments are scheduled to be imposed, the date the assessments are due, the amount of the assessments per each owner per month or year, and the purpose of the assessments;
      (c) Based upon the most recent reserve study and other information, whether currently projected reserve account balances will be sufficient at the end of each year to meet the association's obligation for major maintenance, repair, or replacement of reserve components during the next thirty years;
      (d) If reserve account balances are not projected to be sufficient, what additional assessments may be necessary to ensure that sufficient reserve account funds will be available each year during the next thirty years, the approximate dates assessments may be due, and the amount of the assessments per owner per month or year;
      (e) The estimated amount recommended in the reserve account at the end of the current fiscal year based on the most recent reserve study, the projected reserve account cash balance at the end of the current fiscal year, and the percent funded at the date of the latest reserve study;
      (f) The estimated amount recommended in the reserve account based upon the most recent reserve study at the end of each of the next five budget years, the projected reserve account cash balance in each of those years, and the projected percent funded for each of those years; and
      (g) If the funding plan approved by the association is implemented, the projected reserve account cash balance in each of the next five budget years and the percent funded for each of those years.
      (5) The owners by a majority vote of the voting power in the association present, in person or by proxy, and entitled to vote at any meeting of the owners at which a quorum is present, may remove any member of the board of directors with or without cause.

NEW SECTION.  Sec. 9.  A new section is added to chapter 64.38 RCW to read as follows:

      (1) An association is encouraged to establish a reserve account with a financial institution to fund major maintenance, repair, and replacement of common elements, including limited common elements that will require major maintenance, repair, or replacement within thirty years.  If the association establishes a reserve account, the account must be in the name of the association.  The board of directors is responsible for administering the reserve account.

      (2) Unless doing so would impose an unreasonable hardship, an association with significant assets shall prepare and update a reserve study, in accordance with the association's governing documents and this chapter.  The initial reserve study must be based upon a visual site inspection conducted by a reserve study professional.

      (3) Unless doing so would impose an unreasonable hardship, the association shall update the reserve study annually.  At least every three years, an updated reserve study must be prepared and based upon a visual site inspection conducted by a reserve study professional.

      (4) The decisions relating to the preparation and updating of a reserve study must be made by the board of directors in the exercise of the reasonable discretion of the board.  The decisions must include whether a reserve study will be prepared or updated, and whether the assistance of a reserve study professional will be utilized.

NEW SECTION.  Sec. 10.  A new section is added to chapter 64.38 RCW to read as follows:

      (1) A reserve study as described in section 9 of this act is supplemental to the association's operating and maintenance budget.  In preparing a reserve study, the association shall estimate the anticipated major maintenance, repair, and replacement costs, whose infrequent and significant nature make them impractical to be included in an annual budget.

      (2) A reserve study must include:

      (a) A reserve component list, including any reserve component that would cost more than one percent of the annual budget of the association, not including the reserve account, for major maintenance, repair, or replacement.  If one of these reserve components is not included in the reserve study, the study should provide commentary explaining the basis for its exclusion.  The study must also include quantities and estimates for the useful life of each reserve component, remaining useful life of each reserve component, and current major maintenance, repair, or replacement cost for each reserve component;

      (b) The date of the study, and a statement that the study meets the requirements of this section;

      (c) The following level of reserve study performed:

      (i) Level I:  Full reserve study funding analysis and plan;

      (ii) Level II:  Update with visual site inspection; or

      (iii) Level III:  Update with no visual site inspection;

      (d) The association's reserve account balance;

      (e) The percentage of the fully funded balance that the reserve account is funded;

      (f) Special assessments already implemented or planned;

      (g) Interest and inflation assumptions;

      (h) Current reserve account contribution rates for a full funding plan and baseline funding plan;

      (i) A recommended reserve account contribution rate, a contribution rate for a full funding plan to achieve one hundred percent fully funded reserves by the end of the thirty-year study period, a baseline funding plan to maintain the reserve balance above zero throughout the thirty-year study period without special assessments, and a contribution rate recommended by the reserve study professional;

      (j) A projected reserve account balance for thirty years and a funding plan to pay for projected costs from that reserve account balance without reliance on future unplanned special assessments; and

      (k) A statement on whether the reserve study was prepared with the assistance of a reserve study professional.

      (3) A reserve study must also include the following disclosure:  "This reserve study should be reviewed carefully.  It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement.  The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component."

NEW SECTION.  Sec. 11.  A new section is added to chapter 64.38 RCW to read as follows:

      An association may withdraw funds from its reserve account to pay for unforeseen or unbudgeted costs that are unrelated to maintenance, repair, or replacement of the reserve components.  The board of directors shall record any such withdrawal in the minute books of the association, cause notice of any such withdrawal to be hand delivered or sent prepaid by first-class United States mail to the mailing address of each owner or to any other mailing address designated in writing by the owner, and adopt a repayment schedule not to exceed twenty-four months unless it determines that repayment within twenty- four months would impose an unreasonable burden on the owners.  Payment for major maintenance, repair, or replacement of the reserve components out of cycle with the reserve study projections or not included in the reserve study may be made from the reserve account without meeting the notification or repayment requirements under this section.

NEW SECTION.  Sec. 12.  A new section is added to chapter 64.38 RCW to read as follows:

      (1) When more than three years have passed since the date of the last reserve study prepared by a reserve study professional, the owners to which at least thirty-five percent of the votes are allocated may demand, in writing, to the association that the cost of a reserve study be included in the next budget and that the study be prepared by the end of that budget year.  The written demand must refer to this section.  The board of directors shall, upon receipt of the written demand, provide the owners who make the demand reasonable assurance that the board will include a reserve study in the next budget and, if the budget is not rejected by a majority of the owners, will arrange for the completion of a reserve study.

      (2) If a written demand under this section is made and a reserve study is not timely prepared, a court may order specific performance and award reasonable attorneys' fees to the prevailing party in any legal action brought to enforce this section.  An association may assert unreasonable hardship as an affirmative defense in any action brought against it under this section.  Without limiting this affirmative defense, an unreasonable hardship exists where the cost of preparing a reserve study would exceed five percent of the association's annual budget.

      (3) An owner's duty to pay for common expenses is not excused because of the association's failure to comply with this section or this chapter.  A budget ratified by the owners is not invalidated because of the association's failure to comply with this section or this chapter.

NEW SECTION.  Sec. 13.  A new section is added to chapter 64.38 RCW to read as follows:

      Monetary damages or any other liability may not be awarded against or imposed upon the association, the officers or board of directors of the association, or those persons who may have provided advice or assistance to the association or its officers or directors, for failure to:  Establish a reserve account; have a current reserve study prepared or updated in accordance with the requirements of this chapter; or make the reserve disclosures in accordance with this chapter.

NEW SECTION.  Sec. 14.  A new section is added to chapter 64.38 RCW to read as follows:

      An association is not required to follow the reserve study requirements under RCW 64.38.025 and sections 9 through 13 of this act if the cost of the reserve study exceeds five percent of the association's annual budget, the association does not have significant assets, or there are ten or fewer homes in the association.

NEW SECTION.  Sec. 15.  This act takes effect January 1, 2012."

On page 1, line 2 of the title, after "associations;" strike the remainder of the title and insert "amending RCW 64.34.020, 64.34.308, 64.34.380, 64.34.382, 64.34.384, 64.38.010, and 64.38.025; reenacting and amending RCW 64.34.010; adding new sections to chapter 64.38 RCW; and providing an effective date."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1309 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Roberts and Rodne spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1309, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1309, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 95; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representative Van De Wege.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1309, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 7, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1315 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 18.51 RCW to read as follows:

      (1) A nursing home licensed under this chapter may employ physicians for the provision of professional services to its residents under the following conditions:

      (a) The nursing home may not in any manner, directly or indirectly, supplant, diminish, or regulate any employed physician's judgment concerning the practice of medicine or the diagnosis and treatment of any patient; and

      (b) The employed physicians may provide professional services only to residents of the nursing home or a related living facility.

      (2) The employment of physicians as authorized by this section may be through the following entities:

      (a) The entity licensed to operate the nursing home; or

      (b) A separate entity authorized to conduct business in the state of Washington that has common or overlapping ownership as an affiliate or subsidiary of the licensee, as long as the licensee complies with subsection (3) of this section.

      (3) Nothing in this section relieves the licensee of its ultimate responsibility for the daily operations of the nursing home.

      (4) Nothing in this section may be construed to interfere with the federal resident rights requirements found in 42 C.F.R. 483.10, or successor rules, or found in this chapter, chapter 74.42 RCW, or the rules adopted by the department addressing resident's rights under this chapter or chapter 74.42 RCW.

      (5) As used in this section, "related living facility" means (a) a separate nursing home that is owned, controlled, or managed by the same or an affiliated or subsidiary entity; or (b) a facility that (i) provides independent living services or boarding home services under chapter 18.20 RCW, in a single contiguous campus as the nursing home, and (ii) is owned, controlled, or managed by the same or related entity as the nursing home.  For purposes of this subsection "contiguous" means land adjoining or touching property on which the nursing home is located, including land divided by a public road.

Sec. 2.  RCW 74.42.010 and 2010 c 94 s 27 are each reenacted and amended to read as follows:

      Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

      (1) "Department" means the department of social and health services and the department's employees.

      (2) "Facility" refers to a nursing home as defined in RCW 18.51.010.

      (3) "Licensed practical nurse" means a person licensed to practice practical nursing under chapter 18.79 RCW.

      (4) "Medicaid" means Title XIX of the Social Security Act enacted by the social security amendments of 1965 (42 U.S.C. Sec. 1396; 79 Stat. 343), as amended.

      (5) "Nurse practitioner" means a person licensed to practice advanced registered nursing under chapter 18.79 RCW.

      (6) "Nursing care" means that care provided by a registered nurse, an advanced registered nurse practitioner, a licensed practical nurse, or a nursing assistant in the regular performance of their duties.

      (7) "Physician" means a person practicing pursuant to chapter 18.57 or 18.71 RCW, including, but not limited to, a physician employed by the facility as provided in chapter 18.51 RCW.
      (8) "Physician assistant" means a person practicing pursuant to chapter((s)) 18.57A ((and)) or 18.71A RCW.

      (((8))) (9) "Qualified therapist" means:

      (a) An activities specialist who has specialized education, training, or experience specified by the department.

      (b) An audiologist who is eligible for a certificate of clinical competence in audiology or who has the equivalent education and clinical experience.

      (c) A mental health professional as defined in chapter 71.05 RCW.

      (d) An intellectual disabilities professional who is a qualified therapist or a therapist approved by the department and has specialized training or one year experience in treating or working with persons with intellectual or developmental disabilities.

      (e) An occupational therapist who is a graduate of a program in occupational therapy or who has equivalent education or training.

      (f) A physical therapist as defined in chapter 18.74 RCW.

      (g) A social worker who is a graduate of a school of social work.

      (h) A speech pathologist who is eligible for a certificate of clinical competence in speech pathology or who has equivalent education and clinical experience.

      (((9))) (10) "Registered nurse" means a person licensed to practice registered nursing under chapter 18.79 RCW.

      (((10))) (11) "Resident" means an individual residing in a nursing home, as defined in RCW 18.51.010.

NEW SECTION.  Sec. 3.  The department of social and health services shall monitor nursing homes who hire physicians on staff and report to the legislature by January 1, 2013.  The report shall include information on consumer satisfaction and medical cost implications of including physicians on staff in nursing facilities."

On page 1, line 1 of the title, after "homes;" strike the remainder of the title and insert "reenacting and amending RCW 74.42.010; adding a new section to chapter 18.51 RCW; and creating a new section."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1315 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Kelley spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1315, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1315, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1315, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 9, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1329 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 46.18.200 and 2010 c 161 s 611 are each amended to read as follows:

      (1) ((The legislature recognizes that the special license plate review board established in RCW 46.16.705 reviews and approves applications for special license plate series.
      (2))) Special license plate series reviewed and approved by the ((special license plate review board)) department:

      (a) May be issued in lieu of standard issue or personalized license plates for vehicles required to display one and two license plates unless otherwise specified;

      (b) Must be issued under terms and conditions established by the department;

      (c) Must not be issued for vehicles registered under chapter 46.87 RCW; and

      (d) Must display a symbol or artwork approved by the ((special license plate review board)) department.

      (((3) The special license plate review board approves, and)) (2) The department approves and shall issue((,)) the following special license plates:

 

LICENSE PLATE

DESCRIPTION, SYMBOL, OR ARTWORK

Armed forces collection

Recognizes the contribution of veterans, active duty

military personnel, reservists, and members of the national

guard, and includes six separate designs, each containing a

symbol representing a different branch of the armed forces

to include army, navy, air force, marine corps, coast guard,

and national guard.

Endangered wildlife

Displays a symbol or artwork, approved by the special

license plate review board and the legislature.

Gonzaga University alumni

Recognizes the Gonzaga University alumni association.

Helping kids speak

Recognizes an organization that supports programs that

provide no-cost speech pathology programs to children.

Keep kids safe

Recognizes efforts to prevent child abuse and neglect.

Law enforcement memorial

Honors law enforcement officers in Washington killed in

the line of duty.

Music matters

Displays the "Music Matters" logo.

Professional firefighters and paramedics

Recognizes professional firefighters and paramedics who

are members of the Washington state council of

firefighters.

Share the road

Recognizes an organization that promotes bicycle safety

and awareness education.

Ski & ride Washington

Recognizes the Washington snowsports industry.

Washington lighthouses

Recognizes an organization that supports selected

Washington state lighthouses and provides environmental

education programs.

Washington state parks

Recognizes Washington state parks as premier destinations

of uncommon quality that preserve significant natural,

cultural, historical, and recreational resources.

Washington's national park fund

Builds awareness of Washington's national parks and

supports priority park programs and projects in

Washington's national parks, such as enhancing visitor

experience, promoting volunteerism, engaging

communities, and providing educational opportunities

related to Washington's national parks.

Washington's wildlife collection

Recognizes Washington's wildlife.

We love our pets

Recognizes an organization that assists local member

agencies of the federation of animal welfare and control

agencies to promote and perform spay/neuter surgery on

Washington state pets to reduce pet overpopulation.

Wild on Washington

Symbolizes wildlife viewing in Washington state.

 

      (4) Applicants for initial and renewal professional firefighters and paramedics special license plates must show proof eligibility by providing a certificate of current membership from the Washington state council of firefighters.

NEW SECTION.  Sec. 2.  A new section is added to chapter 46.04 RCW to read as follows:

      "Music Matters license plates" means special license plates issued under RCW 46.18.200 that display the "Music Matters" logo.

Sec. 3.  RCW 46.17.220 and 2010 c 161 s 521 are each amended to read as follows:

      (1) In addition to all fees and taxes required to be paid upon application for a vehicle registration in chapter ((46.16)) 46.16A RCW, the holder of a special license plate shall pay the appropriate special license plate fee as listed in this section.

 

PLATE TYPE

INITIAL FEE

RENEWAL FEE

DISTRIBUTED UNDER

(a) Amateur radio license

$ 5.00

 N/A

RCW 46.68.070

(b) Armed forces

$ 40.00

$ 30.00

RCW 46.68.425

(c) Baseball stadium

$ 40.00

$ 30.00

Subsection (2) of this

section

(d) Collector vehicle

$ 35.00

 N/A

RCW 46.68.030

(e) Collegiate

$ 40.00

$ 30.00

RCW 46.68.430

(f) Endangered wildlife

$ 40.00

$ 30.00

RCW 46.68.425

(g) Gonzaga University

      alumni

$ 40.00

$ 30.00

RCW 46.68.420

(h) Helping kids speak

$ 40.00

$ 30.00

RCW 46.68.420

(i) Horseless carriage

$ 35.00

 N/A

RCW 46.68.030

(j) Keep kids safe

$ 45.00

$ 30.00

RCW 46.68.425

(k) Law enforcement

      memorial

$ 40.00

$ 30.00

RCW 46.68.420

(l) Military affiliate radio

      system

$ 5.00

 N/A

RCW 46.68.070

(m) Music matters

$ 40.00

$ 30.00

RCW 46.68.420

(n) Professional firefighters

      and paramedics

$ 40.00

$ 30.00

RCW 46.68.420

(((n))) (o) Ride share

$ 25.00

 N/A

RCW 46.68.030

(((o))) (p) Share the road

$ 40.00

$ 30.00

RCW 46.68.420

(((p))) (q) Ski and ride

      Washington

$ 40.00

$ 30.00

RCW 46.68.420

(((q))) (r) Square dancer

$ 40.00

 N/A

RCW 46.68.070

(((r))) (s) Washington

      lighthouses

$ 40.00

$ 30.00

RCW 46.68.420

(((s))) (t) Washington state

parks

$ 40.00

$ 30.00

RCW 46.68.425

(((t))) (u) Washington's

      national parks

$ 40.00

$ 30.00

RCW 46.68.420

(((u))) (v) Washington's

      wildlife collection

$ 40.00

$ 30.00

RCW 46.68.425

(((v))) (w) We love our pets

$ 40.00

$ 30.00

RCW 46.68.420

(((w))) (x) Wild on

Washington

$ 40.00

$ 30.00

RCW 46.68.425

 

      (2) After deducting administration and collection expenses for the sale of baseball stadium license plates, the remaining proceeds must be distributed to a county for the purpose of paying the principal and interest payments on bonds issued by the county to construct a baseball stadium, as defined in RCW 82.14.0485, including reasonably necessary preconstruction costs, while the taxes are being collected under RCW 82.14.360.  After this date, the state treasurer shall credit the funds to the state general fund.

Sec. 4.  RCW 46.68.420 and 2010 c 161 s 809 are each amended to read as follows:

      (1) The department shall:

      (a) Collect special license plate fees established under RCW 46.17.220 ((that were approved by the special license plate review board under RCW 46.18.200));

      (b) Deduct an amount not to exceed twelve dollars for initial issue and two dollars for renewal issue for administration and collection expenses incurred by it; and

      (c) Remit the remaining proceeds to the custody of the state treasurer with a proper identifying detailed report.

      (2) The state treasurer shall credit the proceeds to the motor vehicle account until the department determines that the state has been reimbursed for the cost of implementing the special license plate.  Upon determination by the department that the state has been reimbursed, the state treasurer shall credit the remaining special license plate fee amounts for each special license plate to the following appropriate account as created in this section in the custody of the state treasurer:

 

ACCOUNT

CONDITIONS FOR USE OF FUNDS

Gonzaga University alumni association

Scholarship funds to needy and qualified students

attending or planning to attend Gonzaga University

Helping kids speak

Provide free diagnostic and therapeutic services to families

of children who suffer from a delay in language or speech

development

Law enforcement memorial

Provide support and assistance to survivors and families of

law enforcement officers in Washington killed in the line

of duty and to organize, finance, fund, construct, utilize,

and maintain a memorial on the state capitol grounds to

honor those fallen officers

Lighthouse environmental programs

Support selected Washington state lighthouses that are

accessible to the public and staffed by volunteers; provide

environmental education programs; provide grants for

other Washington lighthouses to assist in funding

infrastructure preservation and restoration; encourage and

support interpretive programs by lighthouse docents

Music matters awareness

Promote music education in schools throughout
Washington

Share the road

Promote bicycle safety and awareness education in

communities throughout Washington

Ski & ride Washington

Promote winter snowsports, such as skiing and

snowboarding, and related programs, such as ski and ride

safety programs, underprivileged youth ski and ride

programs, and active, healthy lifestyle programs

Washington state council of firefighters benevolent fund

Receive and disseminate funds for charitable purposes on

behalf of members of the Washington state council of

firefighters, their families, and others deemed in need

Washington's national park fund

Build awareness of Washington's national parks and

support priority park programs and projects in

Washington's national parks, such as enhancing visitor

experience, promoting volunteerism, engaging

communities, and providing educational opportunities

related to Washington's national parks

We love our pets

Support and enable the Washington federation of animal

welfare and control agencies to promote and perform

spay/neuter surgery of Washington state pets in order to

reduce pet population

 

      (3) Only the director or the director's designee may authorize expenditures from the accounts described in subsection (2) of this section.  The accounts are subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

      (4) Funds in the special license plate accounts described in subsection (2) of this section must be disbursed subject to the conditions described in subsection (2) of this section and under contract between the department and qualified nonprofit organizations that provide the services described in subsection (2) of this section.

      (5) For the purposes of this section, a "qualified nonprofit organization" means a not-for-profit corporation operating in Washington that has received a determination of tax exempt status under 26 U.S.C. Sec. 501(c)(3).  The qualified nonprofit organization must meet all the requirements under RCW 46.18.100(1).

Sec. 5.  RCW 46.18.060 and 2010 1st sp.s. c 7 s 94 and 2010 c 161 s 604 are each reenacted and amended to read as follows:

      (1) ((The creation of the board does not in any way preclude the authority of the legislature to independently propose and enact special license plate legislation.
      (2))) The ((board)) department must review and either approve or reject special license plate applications submitted by sponsoring organizations.

      (((3))) (2) Duties of the ((board)) department include, but are not limited to, the following:

      (a) Review and approve the annual financial reports submitted by sponsoring organizations with active special license plate series and present those annual financial reports to the ((senate and house transportation committees)) joint transportation committee;

      (b) Report annually to the ((senate and house of representatives transportation committees)) joint transportation committee on the special license plate applications that were considered by the ((board)) department;

      (c) Issue approval and rejection notification letters to sponsoring organizations, ((the department,)) the ((chairs of the senate and house of representatives transportation committees)) joint transportation committee, and the legislative sponsors identified in each application.  The letters must be issued within seven days of making a determination on the status of an application; and

      (d) Review annually the number of plates sold for each special license plate series created after January 1, 2003.  The ((board)) department may submit a recommendation to discontinue a special plate series to the chairs of the ((senate and house of representatives transportation committees; and
      (e) Provide policy guidance and directions to the department concerning the adoption of rules necessary to limit the number of special license plates for which an organization or a governmental entity may apply)) joint transportation committee.

      (((4))) (3) Except as provided in RCW 46.18.245, in order to assess the effects and impact of the proliferation of special license plates, the legislature declares a temporary moratorium on the issuance of any additional plates until July 1, 2011.  During this period of time, ((the special license plate review board created in RCW 46.16.705 and)) the department ((are)) is prohibited from accepting, reviewing, processing, or approving any applications.  Additionally, a special license plate may not be enacted by the legislature during the moratorium, unless the proposed license plate has been approved by the former special license plate review board before February 15, 2005.

(4) The Music Matters license plates created under RCW 46.18.200 are exempt from the requirements of subsection (3) of this section.

NEW SECTION.  Sec. 6.  This act takes effect January 1, 2012."

On page 1, line 1 of the title, after "plates;" strike the remainder of the title and insert "amending RCW 46.18.200, 46.17.220, and 46.68.420; reenacting and amending RCW 46.18.060; adding a new section to chapter 46.04 RCW; and providing an effective date."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1329 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Maxwell and Armstrong spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1329, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1329, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 94; Nays, 2; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representatives Anderson and Hasegawa.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1329, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 8, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1367 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 51.12 RCW to read as follows:

      The legislature finds that taxicab, limousine, and other for hire vehicle operators are at significant risk of injury due to work-related accidents or crimes such as robbery that may not be covered by standard vehicle insurance policies.  Since almost all taxicab, limousine, and other for hire vehicle business operations are independent small business franchises, their owners or operators may opt out of industrial insurance coverage without full consideration for the risk of financial exposure to themselves or to their businesses.  As a result, health care may be provided to them at public expense or not at all, and erroneous claims may be made by health care providers for insurance coverage, against the state department of labor and industries, private businesses, or the taxicab associations in which certain municipalities require participation.  Most for hire vehicle operators do not enjoy the benefit of the broad public policy embodied in this title that mandates industrial insurance protection for workers.  The legislature therefore declares that all taxicab, limousine, for hire vehicle businesses, and for hire vehicle operators are subject to mandatory industrial insurance coverage under this title.

NEW SECTION.  Sec. 2.  A new section is added to chapter 51.12 RCW to read as follows:

      (1) Any business that owns and operates a for hire vehicle licensed under chapter 46.72 RCW, a limousine under chapter 46.72A RCW, or a taxicab under chapter 81.72 RCW and the for hire operator or chauffeur of such vehicle is within the mandatory coverage of this title.

      (2) Any business that as owner or agent leases a for hire vehicle licensed under chapter 46.72 RCW, a limousine under chapter 46.72A RCW, or a taxicab under chapter 81.72 RCW to a for hire operator or a chauffeur and the for hire operator or chauffeur of such vehicle is within the mandatory coverage of this title.

      (3) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise:

      (a) "Chauffeur" has the same meaning as provided in RCW 46.04.115; and

      (b) "For hire operator" means a person who is operating a vehicle for the purpose of carrying persons for compensation.

NEW SECTION.  Sec. 3.  A new section is added to chapter 51.16 RCW to read as follows:

      (1) For the purposes of section 2 of this act:

      (a) By no later than January 1, 2012, the department must determine by rule the basis for industrial insurance premiums for:  (i) Any business that owns and operates for hire, limousine, or taxicab vehicles; and (ii) any business that owns and leases for hire, limousine, or taxicab vehicles to a business operating such vehicle; and

      (b) Not more than ninety days after the department has determined the basis for industrial insurance premiums by rule under (a) of this subsection, the department must assess such premiums on:  (i) Any business that owns and operates for hire, limousine, or taxicab vehicles; and (ii) any business that owns and leases for hire, limousine, or taxicab vehicles to a business operating such vehicle.

      (2) In determining the basis under this section, the department must consider:

      (a) The unique economic structures of the taxicab, for hire vehicle, and limousine industries;

      (b) The difficulty of equitably assessing industrial insurance premiums on classes of businesses that utilize both employer/employee and independent contractor business models;

      (c) The economic impact on businesses of a rate and assessment alternative, such as a flat rate and assessment levied on a per vehicle or a miles driven basis, compared to that of an assessment based on hours worked;

      (d) The department's costs and efficiency of administration;

      (e) The cost to businesses and covered workers; and

      (f) Anticipated effectiveness in implementing mandatory industrial insurance coverage of for hire vehicle operators as provided in section 2 of this act.

NEW SECTION.  Sec. 4.  A new section is added to chapter 51.12 RCW to read as follows:

      (1) In order to assist the department with controlling costs related to the self-monitoring of industrial insurance claims by independent owner-operated for hire vehicle, limousine, and taxicab businesses, the department may appoint a panel of individuals with for hire vehicle, limousine, or taxicab transportation industry experience and expertise to advise the department.

      (2) The owner of any for hire, limousine, or taxicab vehicle subject to mandatory industrial insurance pursuant to section 2 of this act is eligible for inclusion in a retrospective rating program authorized and established pursuant to chapter 51.18 RCW.

NEW SECTION.  Sec. 5.  A new section is added to chapter 46.72 RCW to read as follows:

      (1) A for hire vehicle certificate issued pursuant to this chapter must be suspended or revoked and may not be renewed in the event of failure to pay the mandatory for hire vehicle operator industrial insurance premium as charged by the department of labor and industries under sections 2 and 3 of this act.

      (2)(a) A for hire vehicle and its operator must have evidence of payment in good standing with the department of labor and industries of the for hire vehicle operator industrial insurance premium, whenever the for hire vehicle is operated on public streets and highways for compensation.

      (b) Failure to produce evidence of payment of the for hire vehicle insurance premium upon demand by a law enforcement officer or other government agent acting under the authority of this chapter is a civil infraction punishable by a fine of not more than two hundred fifty dollars per infraction separately upon both the for hire vehicle owner and the for hire vehicle operator if they are not one and the same.

      (3) For hire vehicle license suspension or revocation and the administration thereof for failure to pay the mandatory industrial insurance premium must be at the direction and expense of the department of labor and industries.

      (4) The department of labor and industries and the department of licensing may adopt rules and enter into cooperative agreements to implement this section.

NEW SECTION.  Sec. 6.  A new section is added to chapter 46.72A RCW to read as follows:

      (1) A business license and vehicle certificate issued pursuant to RCW 46.72A.050 must be suspended or revoked and must not be renewed in the event of failure to pay the mandatory for hire vehicle operator industrial insurance premium as charged by the department of labor and industries under sections 2 and 3 of this act.

      (2)(a) A limousine and its chauffeur must have evidence of payment in good standing with the department of labor and industries of the for hire vehicle operator industrial insurance premium, whenever the limousine is operated on public streets and highways for compensation.

      (b) Failure to produce evidence of payment of the for hire vehicle insurance premium upon demand by a law enforcement officer or other government agent acting under the authority of this chapter is a civil infraction punishable by a fine of not more than two hundred fifty dollars per infraction separately upon both the limousine vehicle owner and the limousine chauffeur if they are not one and the same.

      (3) Business license and vehicle certificate suspension or revocation and the administration thereof for failure to pay the mandatory industrial insurance premium must be at the direction and expense of the department of labor and industries.

      (4) The department of labor and industries and the department of licensing may adopt rules and enter into cooperative agreements to implement this section.

NEW SECTION.  Sec. 7.  A new section is added to chapter 81.72 RCW to read as follows:

      (1) A license issued pursuant to this chapter must be suspended or revoked and may not be renewed in the event of failure to pay the mandatory for hire vehicle operator industrial insurance premium as charged by the department of labor and industries under sections 2 and 3 of this act.

      (2)(a) A taxicab vehicle and its operator must have evidence of payment in good standing with the department of labor and industries of the for hire vehicle operator industrial insurance premium, whenever the taxicab vehicle is operated on public streets and highways for compensation.

      (b) Failure to produce evidence of payment of the for hire vehicle insurance premium upon demand by a law enforcement officer or other government agent acting under the authority of this chapter is a civil infraction punishable by a fine of not more than two hundred fifty dollars per infraction separately upon both the taxicab vehicle owner and the taxicab vehicle operator if they are not one and the same.

      (3) Taxicab vehicle license suspension or revocation and the administration thereof for failure to pay the mandatory industrial insurance premium must be at the direction and expense of the department of labor and industries.

      (4)(a) The department of labor and industries, the department of licensing, cities, towns, counties, and port districts may enter into cooperative agreements to implement this section.

      (b) The department of licensing and the department of labor and industries may adopt rules to implement this section.

      (c) Cities, towns, counties, and port districts may take legislative action to implement this section.

NEW SECTION.  Sec. 8.  A new section is added to chapter 81.72 RCW to read as follows:

      (1) Any city, town, county, or port district setting the rates charged for taxicab services under this chapter must adjust rates to accommodate changes in the cost of industrial insurance or in other industry-wide costs.

      (2) Any business that as owner leases a taxicab licensed under this chapter to a for hire operator must make a reasonable effort to train the for hire operator in motor vehicle operation and safety requirements and monitor operator compliance.  Monitoring operator compliance may include the use of vehicle operator monitoring cameras.

NEW SECTION.  Sec. 9.  Except for section 3 of this act, this act takes effect January 1, 2012."

 

      On page 1, line 2 of the title, after "operators;" strike the remainder of the title and insert "adding new sections to chapter 51.12 RCW; adding a new section to chapter 51.16 RCW; adding a new section to chapter 46.72 RCW; adding a new section to chapter 46.72A RCW; adding new sections to chapter 81.72 RCW; creating a new section; prescribing penalties; and providing an effective date."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1367 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Green and Condotta spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 1367, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 1367, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 95; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representative Overstreet.

      Excused: Representative Haigh.

 

ENGROSSED SUBSTITUTE HOUSE BILL NO. 1367, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 7, 2011

Mr. Speaker:

 

The Senate has passed ENGROSSED HOUSE BILL NO. 1409 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 39.33.010 and 2003 c 303 s 1 are each amended to read as follows:

      (1) The state or any municipality or any political subdivision thereof, may sell, transfer, exchange, lease or otherwise dispose of any property, real or personal, or property rights, including but not limited to the title to real property, to the state or any municipality or any political subdivision thereof, or the federal government, or a federally recognized Indian tribe, on such terms and conditions as may be mutually agreed upon by the proper authorities of the state and/or the subdivisions concerned.  In addition, the state, or any municipality or any political subdivision thereof, may sell, transfer, exchange, lease, or otherwise dispose of personal property, except weapons, to a foreign entity.

      (2) This section shall be deemed to provide an alternative method for the doing of the things authorized herein, and shall not be construed as imposing any additional condition upon the exercise of any other powers vested in the state, municipalities or political subdivisions.

      (3) No intergovernmental transfer, lease, or other disposition of property made pursuant to any other provision of law prior to May 23, 1972, shall be construed to be invalid solely because the parties thereto did not comply with the procedures of this section."

On page 1, line 2 of the title, after "property;" strike the remainder of the title and insert "and amending RCW 39.33.010."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to ENGROSSED HOUSE BILL NO. 1409 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Appleton spoke in favor of the passage of the bill.

 

      Representative Taylor spoke against the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Engrossed House Bill No. 1409, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Engrossed House Bill No. 1409, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 60; Nays, 36; Absent, 0; Excused, 1.

      Voting yea: Representatives Anderson, Appleton, Bailey, Billig, Blake, Carlyle, Clibborn, Cody, Dammeier, Darneille, Dickerson, Dunshee, Eddy, Finn, Fitzgibbon, Frockt, Goodman, Green, Hasegawa, Hudgins, Hunt, Hunter, Hurst, Jinkins, Kagi, Kelley, Kenney, Kirby, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Ormsby, Orwall, Pedersen, Pettigrew, Probst, Reykdal, Roberts, Rodne, Rolfes, Ryu, Santos, Seaquist, Sells, Smith, Springer, Stanford, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Zeiger and Mr. Speaker.

      Voting nay: Representatives Ahern, Alexander, Angel, Armstrong, Asay, Buys, Chandler, Condotta, Crouse, Dahlquist, DeBolt, Fagan, Haler, Hargrove, Harris, Hinkle, Hope, Johnson, Klippert, Kretz, Kristiansen, McCune, Nealey, Orcutt, Overstreet, Parker, Pearson, Rivers, Ross, Schmick, Shea, Short, Taylor, Walsh, Warnick and Wilcox.

      Excused: Representative Haigh.

 

ENGROSSED HOUSE BILL NO. 1409, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 4, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1422 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  The legislature finds that the work that is already underway in exploring the potential of linking Washington's forest products and aeronautics industries in producing a sustainable aviation biofuel with feedstock from the state's public and private forest lands is important to this state's economy and its sustainable energy policies.  The sustainable aviation fuel Northwest initiative has set the stage by beginning the process and initiating stakeholder involvement in assessing the options for developing the biofuel industry in the Northwest.

      The legislature further finds that the work that is being done by the department of natural resources and our state research universities in exploring opportunities to develop aviation biofuel in Washington will provide the scientific and technological analyses needed to determine a pathway for the sustainable use of forest biomass to produce biofuels.

NEW SECTION.  Sec. 2.  (1) The departments of natural resources and commerce are authorized to cooperate and consult with the University of Washington and Washington State University in their development of forest biomass to aviation fuel by:

      (a) Identifying opportunities for state lands to generate trust income for beneficiaries;

      (b) Identifying how to manage trust lands with potential for contributing to biomass to aviation fuel projects in a manner consistent with any findings by the University of Washington concerning operationally and ecologically sustainable feedstock supply;

      (c) Identifying the most cost-effective, efficient, and ecologically sound techniques to deliver forest biomass from the forest to the production site;

      (d) Addressing and planning to ensure sustainability of forest biomass supply;

      (e) Exploring linkages with other biofuel efforts;

      (f) Identifying any barriers to developing aviation biofuel in Washington;

      (g) Entering into partnerships with research universities and the private sector to conduct a pilot project;

      (h) Collaborating with the federal government, other states, and Canadian provinces; and

      (i) Identifying and applying for funding sources.

      (2) The department of natural resources must provide a report to the governor and the appropriate committees of the legislature:

      (a) By December 1, 2011, regarding all of its activities pertaining to forest biomass to aviation fuel, including expenditures and revenue sources;

      (b) By December 1, 2011, and December 1, 2012, with a summary of research activities, scientific reports, and pilot projects pertaining to forest biomass to aviation fuel by state research institutions, including the status of ongoing activities and summaries of the findings with their implications for management of forest trust lands;

      (c) By December 1, 2011, and December 1, 2012, on the progress of the forest practices board's forest biomass policy work group's consideration of the science, policy, available technologies, and best management practices related to forest biomass harvest, including final recommendations to the forest practices board.

NEW SECTION.  Sec. 3.  A new section is added to chapter 28B.10 RCW to read as follows:

      If a state university or foundation derives income from the commercialization of patents, copyrights, proprietary processes, or licenses developed by the forest biomass to aviation fuel demonstration project in section 2 of this act, a percentage of that income, proportionate to the percent of state resources used to develop and commercialize the patent, copyright, proprietary process, or license must be deposited in the state general fund."

On page 1, line 4 of the title, after "production;" strike the remainder of the title and insert "adding a new section to chapter 28B.10 RCW; and creating new sections."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1422 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Stanford spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1422, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1422, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1422, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 8, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1431 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  (1) The superintendent of public instruction shall convene educational service districts to analyze options and make recommendations for a clear legal framework and process for dissolution of a school district on the basis of financial insolvency.

      (2) The analysis must include, but not be limited to:

      (a) A definition of financial insolvency;

      (b) A time frame, criteria, and process for initiating a dissolution of an insolvent school district;

      (c) Roles and responsibilities of the office of the superintendent of public instruction, educational service districts, and regional committees on school district organization; and

      (d) Recommendations for how to address such issues as:

      (i) Limiting a school board's ability to incur additional debt during the dissolution process;

      (ii) Terminating staff contracts expeditiously;

      (iii) Liquidation of liabilities;

      (iv) Waiving requirements of the school accounting manual;

      (v) Clarifying effective dates of transfers of property for taxation purposes;

      (vi) Dealing with bonded indebtedness; and

      (vii) Circumstances that require approval of voters in either the annexing school district or the dissolving school district, or both.

      (3) In conducting the analysis, the educational service districts must consult with individuals with legal and financial expertise.

      (4) As part of their report, the educational service districts may recommend a financial early warning system for consistent, early identification of school districts with potential fiscal difficulties.

      (5) The superintendent of public instruction must submit a final report and recommendations to the governor and the education and fiscal committees of the legislature by January 5, 2012.  The recommendations must specifically address amendments to current law as well as propose new laws as necessary.

NEW SECTION.  Sec. 2.  If specific funding for the purposes of this act, referencing this act by bill or chapter number, is not provided by June 30, 2011, in the omnibus appropriations act, this act is null and void."

On page 1, line 2 of the title, after "districts;" strike the remainder of the title and insert "and creating new sections."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1431 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Anderson and Probst spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1431, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1431, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1431, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 9, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1455 with the following amendment:

0) 

      On page 6, after line 24, insert the following:

"Sec. 3.  RCW 36.23.030 and 2002 c 30 s 1 are each amended to read as follows:

      The clerk of the superior court at the expense of the county shall keep the following records:

      (1) A record in which he or she shall enter all appearances and the time of filing all pleadings in any cause;

      (2) A docket in which before every session, he or she shall enter the titles of all causes pending before the court at that session in the order in which they were commenced, beginning with criminal cases, noting in separate columns the names of the attorneys, the character of the action, the pleadings on which it stands at the commencement of the session.  One copy of this docket shall be furnished for the use of the court and another for the use of the members of the bar;

      (3) A record for each session in which he or she shall enter the names of witnesses and jurors, with time of attendance, distance of travel, and whatever else is necessary to enable him or her to make out a complete cost bill;

      (4) A record in which he or she shall record the daily proceedings of the court, and enter all verdicts, orders, judgments, and decisions thereof, which may, as provided by local court rule, be signed by the judge; but the court shall have full control of all entries in the record at any time during the session in which they were made;

      (5) An execution docket and also one for a final record in which he or she shall make a full and perfect record of all criminal cases in which a final judgment is rendered, and all civil cases in which by any order or final judgment the title to real estate, or any interest therein, is in any way affected, and such other final judgments, orders, or decisions as the court may require;

      (6) A record in which shall be entered all orders, decrees, and judgments made by the court and the minutes of the court in probate proceedings;

      (7) A record of wills and bonds shall be maintained.  Originals shall be placed in the original file and shall be preserved or duplicated pursuant to RCW 36.23.065;

      (8) A record of letters testamentary, administration, and guardianship in which all letters testamentary, administration, and guardianship shall be recorded;

      (9) A record of claims shall be entered in the appearance docket under the title of each estate or case, stating the name of each claimant, the amount of his or her claim and the date of filing of such;

      (10) A memorandum of the files, in which at least one page shall be given to each estate or case, wherein shall be noted each paper filed in the case, and the date of filing each paper;

      (11) A record of the number of petitions filed for restoration of the right to possess a firearm under chapter 9.41 RCW and the outcome of the petitions;
      (12) Such other records as are prescribed by law and required in the discharge of the duties of his or her office."

On page 1, line 2 of the title, after "9.41.040" strike "and 9.41.047" and insert ", 9.41.047, and 36.23.030"

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1455 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives McCune and Pedersen spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1455, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1455, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1455, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 5, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1465 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 66.24.010 and 2009 c 271 s 6 are each amended to read as follows:

      (1) Every license shall be issued in the name of the applicant, and the holder thereof shall not allow any other person to use the license.

      (2) For the purpose of considering any application for a license, or the renewal of a license, the board may cause an inspection of the premises to be made, and may inquire into all matters in connection with the construction and operation of the premises.  For the purpose of reviewing any application for a license and for considering the denial, suspension, revocation, or renewal or denial thereof, of any license, the liquor control board may consider any prior criminal conduct of the applicant including an administrative violation history record with the board and a criminal history record information check.  The board may submit the criminal history record information check to the Washington state patrol and to the identification division of the federal bureau of investigation in order that these agencies may search their records for prior arrests and convictions of the individual or individuals who filled out the forms.  The board shall require fingerprinting of any applicant whose criminal history record information check is submitted to the federal bureau of investigation.  The provisions of RCW 9.95.240 and of chapter 9.96A RCW shall not apply to such cases.  Subject to the provisions of this section, the board may, in its discretion, grant or deny the renewal or license applied for.  Denial may be based on, without limitation, the existence of chronic illegal activity documented in objections submitted pursuant to subsections (8)(d) and (12) of this section.  Authority to approve an uncontested or unopposed license may be granted by the board to any staff member the board designates in writing.  Conditions for granting such authority shall be adopted by rule.  No retail license of any kind may be issued to:

      (a) A person doing business as a sole proprietor who has not resided in the state for at least one month prior to receiving a license, except in cases of licenses issued to dining places on railroads, boats, or aircraft;

      (b) A copartnership, unless all of the members thereof are qualified to obtain a license, as provided in this section;

      (c) A person whose place of business is conducted by a manager or agent, unless such manager or agent possesses the same qualifications required of the licensee;

      (d) A corporation or a limited liability company, unless it was created under the laws of the state of Washington or holds a certificate of authority to transact business in the state of Washington.

      (3)(a) The board may, in its discretion, subject to the provisions of RCW 66.08.150, suspend or cancel any license; and all rights of the licensee to keep or sell liquor thereunder shall be suspended or terminated, as the case may be.

      (b) The board shall immediately suspend the license or certificate of a person who has been certified pursuant to RCW 74.20A.320 by the department of social and health services as a person who is not in compliance with a support order.  If the person has continued to meet all other requirements for reinstatement during the suspension, reissuance of the license or certificate shall be automatic upon the board's receipt of a release issued by the department of social and health services stating that the licensee is in compliance with the order.

      (c) The board may request the appointment of administrative law judges under chapter 34.12 RCW who shall have power to administer oaths, issue subpoenas for the attendance of witnesses and the production of papers, books, accounts, documents, and testimony, examine witnesses, and to receive testimony in any inquiry, investigation, hearing, or proceeding in any part of the state, under such rules and regulations as the board may adopt.

      (d) Witnesses shall be allowed fees and mileage each way to and from any such inquiry, investigation, hearing, or proceeding at the rate authorized by RCW 34.05.446.  Fees need not be paid in advance of appearance of witnesses to testify or to produce books, records, or other legal evidence.

      (e) In case of disobedience of any person to comply with the order of the board or a subpoena issued by the board, or any of its members, or administrative law judges, or on the refusal of a witness to testify to any matter regarding which he or she may be lawfully interrogated, the judge of the superior court of the county in which the person resides, on application of any member of the board or administrative law judge, shall compel obedience by contempt proceedings, as in the case of disobedience of the requirements of a subpoena issued from said court or a refusal to testify therein.

      (4) Upon receipt of notice of the suspension or cancellation of a license, the licensee shall forthwith deliver up the license to the board.  Where the license has been suspended only, the board shall return the license to the licensee at the expiration or termination of the period of suspension.  The board shall notify all vendors in the city or place where the licensee has its premises of the suspension or cancellation of the license; and no employee may allow or cause any liquor to be delivered to or for any person at the premises of that licensee.

      (5)(a) At the time of the original issuance of a spirits, beer, and wine restaurant license, the board shall prorate the license fee charged to the new licensee according to the number of calendar quarters, or portion thereof, remaining until the first renewal of that license is required.

      (b) Unless sooner canceled, every license issued by the board shall expire at midnight of the thirtieth day of June of the fiscal year for which it was issued.  However, if the board deems it feasible and desirable to do so, it may establish, by rule pursuant to chapter 34.05 RCW, a system for staggering the annual renewal dates for any and all licenses authorized by this chapter.  If such a system of staggered annual renewal dates is established by the board, the license fees provided by this chapter shall be appropriately prorated during the first year that the system is in effect.

      (6) Every license issued under this section shall be subject to all conditions and restrictions imposed by this title or by rules adopted by the board.  All conditions and restrictions imposed by the board in the issuance of an individual license ((shall)) may be listed on the face of the individual license along with the trade name, address, and expiration date.  Conditions and restrictions imposed by the board may also be included in official correspondence separate from the license.

      (7) Every licensee shall post and keep posted its license, or licenses, and any additional correspondence containing conditions and restrictions imposed by the board in a conspicuous place on the premises.

      (8)(a) Unless (b) of this subsection applies, before the board issues a new or renewal license to an applicant it shall give notice of such application to the chief executive officer of the incorporated city or town, if the application is for a license within an incorporated city or town, or to the county legislative authority, if the application is for a license outside the boundaries of incorporated cities or towns.

      (b) If the application for a special occasion license is for an event held during a county, district, or area fair as defined by RCW 15.76.120, and the county, district, or area fair is located on property owned by the county but located within an incorporated city or town, the county legislative authority shall be the entity notified by the board under (a) of this subsection.  The board shall send a duplicate notice to the incorporated city or town within which the fair is located.

      (c) The incorporated city or town through the official or employee selected by it, or the county legislative authority or the official or employee selected by it, shall have the right to file with the board within twenty days after the date of transmittal of such notice for applications, or at least thirty days prior to the expiration date for renewals, written objections against the applicant or against the premises for which the new or renewal license is asked.  The board may extend the time period for submitting written objections.

      (d) The written objections shall include a statement of all facts upon which such objections are based, and in case written objections are filed, the city or town or county legislative authority may request and the liquor control board may in its discretion hold a hearing subject to the applicable provisions of Title 34 RCW.  If the board makes an initial decision to deny a license or renewal based on the written objections of an incorporated city or town or county legislative authority, the applicant may request a hearing subject to the applicable provisions of Title 34 RCW.  If such a hearing is held at the request of the applicant, liquor control board representatives shall present and defend the board's initial decision to deny a license or renewal.

      (e) Upon the granting of a license under this title the board shall send written notification to the chief executive officer of the incorporated city or town in which the license is granted, or to the county legislative authority if the license is granted outside the boundaries of incorporated cities or towns.  When the license is for a special occasion license for an event held during a county, district, or area fair as defined by RCW 15.76.120, and the county, district, or area fair is located on county-owned property but located within an incorporated city or town, the written notification shall be sent to both the incorporated city or town and the county legislative authority.

      (9)(a) Before the board issues any license to any applicant, it shall give (i) due consideration to the location of the business to be conducted under such license with respect to the proximity of churches, schools, and public institutions and (ii) written notice, with receipt verification, of the application to public institutions identified by the board as appropriate to receive such notice, churches, and schools within five hundred feet of the premises to be licensed.  The board shall not issue a liquor license for either on-premises or off-premises consumption covering any premises not now licensed, if such premises are within five hundred feet of the premises of any tax-supported public elementary or secondary school measured along the most direct route over or across established public walks, streets, or other public passageway from the main entrance of the school to the nearest public entrance of the premises proposed for license, and if, after receipt by the school of the notice as provided in this subsection, the board receives written objection, within twenty days after receiving such notice, from an official representative or representatives of the school within five hundred feet of said proposed licensed premises, indicating to the board that there is an objection to the issuance of such license because of proximity to a school.  The board may extend the time period for submitting objections.  For the purpose of this section, "church" means a building erected for and used exclusively for religious worship and schooling or other activity in connection therewith.  For the purpose of this section, "public institution" means institutions of higher education, parks, community centers, libraries, and transit centers.

      (b) No liquor license may be issued or reissued by the board to any motor sports facility or licensee operating within the motor sports facility unless the motor sports facility enforces a program reasonably calculated to prevent alcohol or alcoholic beverages not purchased within the facility from entering the facility and such program is approved by local law enforcement agencies.

      (c) It is the intent under this subsection (9) that a retail license shall not be issued by the board where doing so would, in the judgment of the board, adversely affect a private school meeting the requirements for private schools under Title 28A RCW, which school is within five hundred feet of the proposed licensee.  The board shall fully consider and give substantial weight to objections filed by private schools.  If a license is issued despite the proximity of a private school, the board shall state in a letter addressed to the private school the board's reasons for issuing the license.

      (10) The restrictions set forth in subsection (9) of this section shall not prohibit the board from authorizing the assumption of existing licenses now located within the restricted area by other persons or licenses or relocations of existing licensed premises within the restricted area.  In no case may the licensed premises be moved closer to a church or school than it was before the assumption or relocation.

      (11)(a) Nothing in this section prohibits the board, in its discretion, from issuing a temporary retail or distributor license to an applicant to operate the retail or distributor premises during the period the application for the license is pending.  The board may establish a fee for a temporary license by rule.

      (b) A temporary license issued by the board under this section shall be for a period not to exceed sixty days.  A temporary license may be extended at the discretion of the board for additional periods of sixty days upon payment of an additional fee and upon compliance with all conditions required in this section.

      (c) Refusal by the board to issue or extend a temporary license shall not entitle the applicant to request a hearing.  A temporary license may be canceled or suspended summarily at any time if the board determines that good cause for cancellation or suspension exists.  RCW 66.08.130 applies to temporary licenses.

      (d) Application for a temporary license shall be on such form as the board shall prescribe.  If an application for a temporary license is withdrawn before issuance or is refused by the board, the fee which accompanied such application shall be refunded in full.

      (12) In determining whether to grant or deny a license or renewal of any license, the board shall give substantial weight to objections from an incorporated city or town or county legislative authority based upon chronic illegal activity associated with the applicant's operations of the premises proposed to be licensed or the applicant's operation of any other licensed premises, or the conduct of the applicant's patrons inside or outside the licensed premises.  "Chronic illegal activity" means (a) a pervasive pattern of activity that threatens the public health, safety, and welfare of the city, town, or county including, but not limited to, open container violations, assaults, disturbances, disorderly conduct, or other criminal law violations, or as documented in crime statistics, police reports, emergency medical response data, calls for service, field data, or similar records of a law enforcement agency for the city, town, county, or any other municipal corporation or any state agency; or (b) an unreasonably high number of citations for violations of RCW 46.61.502 associated with the applicant's or licensee's operation of any licensed premises as indicated by the reported statements given to law enforcement upon arrest.

Sec. 2.  RCW 66.24.410 and 2007 c 370 s 18 are each amended to read as follows:

      (1) "Spirituous liquor," as used in RCW 66.24.400 to 66.24.450, inclusive, means "liquor" as defined in RCW 66.04.010, except "wine" and "beer" sold as such.

      (2) "Restaurant" as used in RCW 66.24.400 to 66.24.450, inclusive, means an establishment provided with special space and accommodations where, in consideration of payment, food, without lodgings, is habitually furnished to the public, not including drug stores and soda fountains:  PROVIDED, That such establishments shall be approved by the board and that the board shall be satisfied that such establishment is maintained in a substantial manner as a place for preparing, cooking and serving of complete meals.  ((The service of only fry orders or such food and victuals as sandwiches, hamburgers, or salads shall not be deemed in compliance with this definition)) Requirements for complete meals shall be determined by the board in rules adopted pursuant to chapter 34.05 RCW.

      (3) "Hotel," "clubs," "wine" and "beer" are used in RCW 66.24.400 to 66.24.450, inclusive, with the meaning given in chapter 66.04 RCW.

Sec. 3.  RCW 66.04.010 and 2009 c 373 s 1 and 2009 c 271 s 2 are each reenacted and amended to read as follows:

      In this title, unless the context otherwise requires:

      (1) "Alcohol" is that substance known as ethyl alcohol, hydrated oxide of ethyl, or spirit of wine, which is commonly produced by the fermentation or distillation of grain, starch, molasses, or sugar, or other substances including all dilutions and mixtures of this substance.  The term "alcohol" does not include alcohol in the possession of a manufacturer or distiller of alcohol fuel, as described in RCW 66.12.130, which is intended to be denatured and used as a fuel for use in motor vehicles, farm implements, and machines or implements of husbandry.

      (2) "Authorized representative" means a person who:

      (a) Is required to have a federal basic permit issued pursuant to the federal alcohol administration act, 27 U.S.C. Sec. 204;

      (b) Has its business located in the United States outside of the state of Washington;

      (c) Acquires ownership of beer or wine for transportation into and resale in the state of Washington; and which beer or wine is produced by a brewery or winery in the United States outside of the state of Washington; and

      (d) Is appointed by the brewery or winery referenced in (c) of this subsection as its authorized representative for marketing and selling its products within the United States in accordance with a written agreement between the authorized representative and such brewery or winery pursuant to this title.

      (3) "Beer" means any malt beverage, flavored malt beverage, or malt liquor as these terms are defined in this chapter.

      (4) "Beer distributor" means a person who buys beer from a domestic brewery, microbrewery, beer certificate of approval holder, or beer importers, or who acquires foreign produced beer from a source outside of the United States, for the purpose of selling the same pursuant to this title, or who represents such brewer or brewery as agent.

      (5) "Beer importer" means a person or business within Washington who purchases beer from a beer certificate of approval holder or who acquires foreign produced beer from a source outside of the United States for the purpose of selling the same pursuant to this title.

      (6) "Board" means the liquor control board, constituted under this title.

      (7) "Brewer" or "brewery" means any person engaged in the business of manufacturing beer and malt liquor.  Brewer includes a brand owner of malt beverages who holds a brewer's notice with the federal bureau of alcohol, tobacco, and firearms at a location outside the state and whose malt beverage is contract-produced by a licensed in-state brewery, and who may exercise within the state, under a domestic brewery license, only the privileges of storing, selling to licensed beer distributors, and exporting beer from the state.

      (8) "Club" means an organization of persons, incorporated or unincorporated, operated solely for fraternal, benevolent, educational, athletic or social purposes, and not for pecuniary gain.

      (9) "Confection" means a preparation of sugar, honey, or other natural or artificial sweeteners in combination with chocolate, fruits, nuts, dairy products, or flavorings, in the form of bars, drops, or pieces.

      (10) "Consume" includes the putting of liquor to any use, whether by drinking or otherwise.

      (11) "Contract liquor store" means a business that sells liquor on behalf of the board through a contract with a contract liquor store manager.

      (12) "Craft distillery" means a distillery that pays the reduced licensing fee under RCW 66.24.140.

      (13) "Dentist" means a practitioner of dentistry duly and regularly licensed and engaged in the practice of his profession within the state pursuant to chapter 18.32 RCW.

      (14) "Distiller" means a person engaged in the business of distilling spirits.

      (15) "Domestic brewery" means a place where beer and malt liquor are manufactured or produced by a brewer within the state.

      (16) "Domestic winery" means a place where wines are manufactured or produced within the state of Washington.

      (17) "Drug store" means a place whose principal business is, the sale of drugs, medicines and pharmaceutical preparations and maintains a regular prescription department and employs a registered pharmacist during all hours the drug store is open.

      (18) "Druggist" means any person who holds a valid certificate and is a registered pharmacist and is duly and regularly engaged in carrying on the business of pharmaceutical chemistry pursuant to chapter 18.64 RCW.

      (19) "Employee" means any person employed by the board.

      (20) "Flavored malt beverage" means:

      (a) A malt beverage containing six percent or less alcohol by volume to which flavoring or other added nonbeverage ingredients are added that contain distilled spirits of not more than forty‑nine percent of the beverage's overall alcohol content; or

      (b) A malt beverage containing more than six percent alcohol by volume to which flavoring or other added nonbeverage ingredients are added that contain distilled spirits of not more than one and one‑half percent of the beverage's overall alcohol content.

      (21) "Fund" means 'liquor revolving fund.'

      (22) "Hotel" means buildings, structures, and grounds, having facilities for preparing, cooking, and serving food, that are kept, used, maintained, advertised, or held out to the public to be a place where food is served and sleeping accommodations are offered for pay to transient guests, in which twenty or more rooms are used for the sleeping accommodation of such transient guests.  The buildings, structures, and grounds must be located on adjacent property either owned or leased by the same person or persons.

      (23) "Importer" means a person who buys distilled spirits from a distillery outside the state of Washington and imports such spirituous liquor into the state for sale to the board or for export.

      (24) "Imprisonment" means confinement in the county jail.

      (25) "Liquor" includes the four varieties of liquor herein defined (alcohol, spirits, wine and beer), and all fermented, spirituous, vinous, or malt liquor, or combinations thereof, and mixed liquor, a part of which is fermented, spirituous, vinous or malt liquor, or otherwise intoxicating; and every liquid or solid or semisolid or other substance, patented or not, containing alcohol, spirits, wine or beer, and all drinks or drinkable liquids and all preparations or mixtures capable of human consumption, and any liquid, semisolid, solid, or other substance, which contains more than one percent of alcohol by weight shall be conclusively deemed to be intoxicating.  Liquor does not include confections or food products that contain one percent or less of alcohol by weight.

      (26) "Malt beverage" or "malt liquor" means any beverage such as beer, ale, lager beer, stout, and porter obtained by the alcoholic fermentation of an infusion or decoction of pure hops, or pure extract of hops and pure barley malt or other wholesome grain or cereal in pure water containing not more than eight percent of alcohol by weight, and not less than one-half of one percent of alcohol by volume.  For the purposes of this title, any such beverage containing more than eight percent of alcohol by weight shall be referred to as "strong beer."

      (27) "Manufacturer" means a person engaged in the preparation of liquor for sale, in any form whatsoever.

      (28) "Nightclub" means an establishment that provides entertainment and has as its primary source of revenue (a) the sale of alcohol for consumption on the premises, (b) cover charges, or (c) both((, and has an occupancy load of one hundred or more)).

      (29) "Package" means any container or receptacle used for holding liquor.

      (30) "Passenger vessel" means any boat, ship, vessel, barge, or other floating craft of any kind carrying passengers for compensation.

      (31) "Permit" means a permit for the purchase of liquor under this title.

      (32) "Person" means an individual, copartnership, association, or corporation.

      (33) "Physician" means a medical practitioner duly and regularly licensed and engaged in the practice of his profession within the state pursuant to chapter 18.71 RCW.

      (34) "Prescription" means a memorandum signed by a physician and given by him to a patient for the obtaining of liquor pursuant to this title for medicinal purposes.

      (35) "Public place" includes streets and alleys of incorporated cities and towns; state or county or township highways or roads; buildings and grounds used for school purposes; public dance halls and grounds adjacent thereto; those parts of establishments where beer may be sold under this title, soft drink establishments, public buildings, public meeting halls, lobbies, halls and dining rooms of hotels, restaurants, theatres, stores, garages and filling stations which are open to and are generally used by the public and to which the public is permitted to have unrestricted access; railroad trains, stages, and other public conveyances of all kinds and character, and the depots and waiting rooms used in conjunction therewith which are open to unrestricted use and access by the public; publicly owned bathing beaches, parks, and/or playgrounds; and all other places of like or similar nature to which the general public has unrestricted right of access, and which are generally used by the public.

      (36) "Regulations" means regulations made by the board under the powers conferred by this title.

      (37) "Restaurant" means any establishment provided with special space and accommodations where, in consideration of payment, food, without lodgings, is habitually furnished to the public, not including drug stores and soda fountains.

      (38) "Sale" and "sell" include exchange, barter, and traffic; and also include the selling or supplying or distributing, by any means whatsoever, of liquor, or of any liquid known or described as beer or by any name whatever commonly used to describe malt or brewed liquor or of wine, by any person to any person; and also include a sale or selling within the state to a foreign consignee or his agent in the state.  "Sale" and "sell" shall not include the giving, at no charge, of a reasonable amount of liquor by a person not licensed by the board to a person not licensed by the board, for personal use only.  "Sale" and "sell" also does not include a raffle authorized under RCW 9.46.0315:  PROVIDED, That the nonprofit organization conducting the raffle has obtained the appropriate permit from the board.

      (39) "Soda fountain" means a place especially equipped with apparatus for the purpose of dispensing soft drinks, whether mixed or otherwise.

      (40) "Spirits" means any beverage which contains alcohol obtained by distillation, except flavored malt beverages, but including wines exceeding twenty-four percent of alcohol by volume.

      (41) "Store" means a state liquor store established under this title.

      (42) "Tavern" means any establishment with special space and accommodation for sale by the glass and for consumption on the premises, of beer, as herein defined.

      (43)(a) "Wine" means any alcoholic beverage obtained by fermentation of fruits (grapes, berries, apples, et cetera) or other agricultural product containing sugar, to which any saccharine substances may have been added before, during or after fermentation, and containing not more than twenty-four percent of alcohol by volume, including sweet wines fortified with wine spirits, such as port, sherry, muscatel and angelica, not exceeding twenty-four percent of alcohol by volume and not less than one-half of one percent of alcohol by volume.  For purposes of this title, any beverage containing no more than fourteen percent of alcohol by volume when bottled or packaged by the manufacturer shall be referred to as "table wine," and any beverage containing alcohol in an amount more than fourteen percent by volume when bottled or packaged by the manufacturer shall be referred to as "fortified wine."  However, "fortified wine" shall not include:  (i) Wines that are both sealed or capped by cork closure and aged two years or more; and (ii) wines that contain more than fourteen percent alcohol by volume solely as a result of the natural fermentation process and that have not been produced with the addition of wine spirits, brandy, or alcohol.

      (b) This subsection shall not be interpreted to require that any wine be labeled with the designation "table wine" or "fortified wine."

      (44) "Wine distributor" means a person who buys wine from a domestic winery, wine certificate of approval holder, or wine importer, or who acquires foreign produced wine from a source outside of the United States, for the purpose of selling the same not in violation of this title, or who represents such vintner or winery as agent.

      (45) "Wine importer" means a person or business within Washington who purchases wine from a wine certificate of approval holder or who acquires foreign produced wine from a source outside of the United States for the purpose of selling the same pursuant to this title.

      (46) "Winery" means a business conducted by any person for the manufacture of wine for sale, other than a domestic winery.

Sec. 4.  RCW 66.24.371 and 2009 c 373 s 6 are each amended to read as follows:

      (1) There shall be a beer and/or wine retailer's license to be designated as a beer and/or wine specialty shop license to sell beer, strong beer, and/or wine at retail in bottles, cans, and original containers, not to be consumed upon the premises where sold, at any store other than the state liquor stores.  Licensees obtaining a written endorsement from the board may also sell malt liquor in kegs or other containers capable of holding four gallons or more of liquid.  The annual fee for the beer and/or wine specialty shop license is one hundred dollars for each store.  The sale of any container holding four gallons or more must comply with RCW 66.28.200 and 66.28.220.

      (2) Licensees under this section may provide, free or for a charge, single-serving samples of two ounces or less to customers for the purpose of sales promotion.  Sampling activities of licensees under this section are subject to RCW 66.28.010 and 66.28.040 and the cost of sampling under this section may not be borne, directly or indirectly, by any manufacturer, importer, or distributor of liquor.

      (3) Upon approval by the board, the beer and/or wine specialty shop licensee that exceeds fifty percent beer and/or wine sales may also receive an endorsement to permit the sale of beer to a purchaser in a sanitary container brought to the premises by the purchaser, or provided by the licensee or manufacturer, and fill at the tap by the licensee at the time of sale.  If the beer and/or wine specialty shop licensee does not exceed fifty percent beer and/or wine sales, the board may waive the fifty percent beer and/or wine sale criteria if the beer and/or wine specialty shop maintains alcohol inventory that exceeds fifteen thousand dollars.
      (4) The board shall issue a restricted beer and/or wine specialty shop license, authorizing the licensee to sell beer and only table wine, if the board finds upon issuance or renewal of the license that the sale of strong beer or fortified wine would be against the public interest.  In determining the public interest, the board shall consider at least the following factors:

      (a) The likelihood that the applicant will sell strong beer or fortified wine to persons who are intoxicated;

      (b) Law enforcement problems in the vicinity of the applicant's establishment that may arise from persons purchasing strong beer or fortified wine at the establishment; and

      (c) Whether the sale of strong beer or fortified wine would be detrimental to or inconsistent with a government-operated or funded alcohol treatment or detoxification program in the area.

      If the board receives no evidence or objection that the sale of strong beer or fortified wine would be against the public interest, it shall issue or renew the license without restriction, as applicable.  The burden of establishing that the sale of strong beer or fortified wine by the licensee would be against the public interest is on those persons objecting.

      (((4))) (5) Licensees holding a beer and/or wine specialty shop license must maintain a minimum three thousand dollar wholesale inventory of beer, strong beer, and/or wine.

(6) The board may adopt rules to implement this section.

Sec. 5.  RCW 66.24.244 and 2008 c 248 s 2 and 2008 c 41 s 9 are each reenacted and amended to read as follows:

      (1) There shall be a license for microbreweries; fee to be one hundred dollars for production of less than sixty thousand barrels of malt liquor, including strong beer, per year.

      (2) Any microbrewery licensed under this section may also act as a distributor and/or retailer for beer and strong beer of its own production.  Strong beer may not be sold at a farmers market or under any endorsement which may authorize microbreweries to sell beer at farmers markets.  Any microbrewery operating as a distributor and/or retailer under this subsection shall comply with the applicable laws and rules relating to distributors and/or retailers, except that a microbrewery operating as a distributor may maintain a warehouse off the premises of the microbrewery for the distribution of beer provided that (a) the warehouse has been approved by the board under RCW 66.24.010 and (b) the number of warehouses off the premises of the microbrewery does not exceed one.  A microbrewery holding a spirits, beer, and wine restaurant license may sell beer of its own production for off-premises consumption from its restaurant premises in kegs or in a sanitary container brought to the premises by the purchaser or furnished by the licensee and filled at the tap by the licensee at the time of sale.

      (3) Any microbrewery licensed under this section may also sell beer produced by another microbrewery or a domestic brewery for on and off- premises consumption from its premises as long as the other breweries' brands do not exceed twenty-five percent of the microbrewery's on-tap offering of its own brands.
      (4) The board may issue up to two retail licenses allowing a microbrewery to operate an on or off-premise tavern, beer and/or wine restaurant, or spirits, beer, and wine restaurant.

      (((4))) (5) A microbrewery that holds a tavern license, spirits, beer, and wine restaurant license, or a beer and/or wine restaurant license shall hold the same privileges and endorsements as permitted under RCW 66.24.320, 66.24.330, and 66.24.420.

      (((5))) (6)(a) A microbrewery licensed under this section may apply to the board for an endorsement to sell bottled beer of its own production at retail for off-premises consumption at a qualifying farmers market.  The annual fee for this endorsement is seventy-five dollars.

      (b) For each month during which a microbrewery will sell beer at a qualifying farmers market, the microbrewery must provide the board or its designee a list of the dates, times, and locations at which bottled beer may be offered for sale.  This list must be received by the board before the microbrewery may offer beer for sale at a qualifying farmers market.

      (c) The beer sold at qualifying farmers markets must be produced in Washington.

      (d) Each approved location in a qualifying farmers market is deemed to be part of the microbrewery license for the purpose of this title.  The approved locations under an endorsement granted under this subsection (((5))) (6) do not constitute the tasting or sampling privilege of a microbrewery.  The microbrewery may not store beer at a farmers market beyond the hours that the microbrewery offers bottled beer for sale.  The microbrewery may not act as a distributor from a farmers market location.

      (e) Before a microbrewery may sell bottled beer at a qualifying farmers market, the farmers market must apply to the board for authorization for any microbrewery with an endorsement approved under this subsection (((5))) (6) to sell bottled beer at retail at the farmers market.  This application shall include, at a minimum:  (i) A map of the farmers market showing all booths, stalls, or other designated locations at which an approved microbrewery may sell bottled beer; and (ii) the name and contact information for the on-site market managers who may be contacted by the board or its designee to verify the locations at which bottled beer may be sold.  Before authorizing a qualifying farmers market to allow an approved microbrewery to sell bottled beer at retail at its farmers market location, the board shall notify the persons or entities of the application for authorization pursuant to RCW 66.24.010 (8) and (9).  An authorization granted under this subsection (((5))) (6)(e) may be withdrawn by the board for any violation of this title or any rules adopted under this title.

      (f) The board may adopt rules establishing the application and approval process under this section and any additional rules necessary to implement this section.

      (g) For the purposes of this subsection (((5))) (6):

      (i) "Qualifying farmers market" means an entity that sponsors a regular assembly of vendors at a defined location for the purpose of promoting the sale of agricultural products grown or produced in this state directly to the consumer under conditions that meet the following minimum requirements:

      (A) There are at least five participating vendors who are farmers selling their own agricultural products;

      (B) The total combined gross annual sales of vendors who are farmers exceeds the total combined gross annual sales of vendors who are processors or resellers;

      (C) The total combined gross annual sales of vendors who are farmers, processors, or resellers exceeds the total combined gross annual sales of vendors who are not farmers, processors, or resellers;

      (D) The sale of imported items and secondhand items by any vendor is prohibited; and

      (E) No vendor is a franchisee.

      (ii) "Farmer" means a natural person who sells, with or without processing, agricultural products that he or she raises on land he or she owns or leases in this state or in another state's county that borders this state.

      (iii) "Processor" means a natural person who sells processed food that he or she has personally prepared on land he or she owns or leases in this state or in another state's county that borders this state.

      (iv) "Reseller" means a natural person who buys agricultural products from a farmer and resells the products directly to the consumer.

      (((6))) (7) Any microbrewery licensed under this section may contract‑produce beer for another microbrewer.  This contract- production is not a sale for the purposes of RCW 66.28.170 and 66.28.180.

Sec. 6.  RCW 66.24.240 and 2008 c 41 s 7 are each amended to read as follows:

      (1) There shall be a license for domestic breweries; fee to be two thousand dollars for production of sixty thousand barrels or more of malt liquor per year.

      (2) Any domestic brewery, except for a brand owner of malt beverages under RCW 66.04.010(((6))) (7), licensed under this section may also act as a distributor and/or retailer for beer of its own production.  Any domestic brewery operating as a distributor and/or retailer under this subsection shall comply with the applicable laws and rules relating to distributors and/or retailers.  A domestic brewery holding a spirits, beer, and wine restaurant license may sell beer of its own production for off-premises consumption from its restaurant premises in kegs or in a sanitary container brought to the premises by the purchaser or furnished by the licensee and filled at the tap by the licensee at the time of sale.

      (3) Any domestic brewery licensed under this section may also sell beer produced by another domestic brewery or a microbrewery for on and off-premises consumption from its premises as long as the other breweries' brands do not exceed twenty-five percent of the domestic brewery's on-tap offering of its own brands.
      (4) A domestic brewery may hold up to two retail licenses to operate an on or off-premise tavern, beer and/or wine restaurant, or spirits, beer, and wine restaurant.  This retail license is separate from the brewery license.  A brewery that holds a tavern license, a spirits, beer, and wine restaurant license, or a beer and/or wine restaurant license shall hold the same privileges and endorsements as permitted under RCW 66.24.320, 66.24.330, and 66.24.420.

      (((4))) (5) Any domestic brewery licensed under this section may contract-produce beer for a brand owner of malt beverages defined under RCW 66.04.010(((6))) (7), and this contract-production is not a sale for the purposes of RCW 66.28.170 and 66.28.180.

      (((5))) (6)(a) A domestic brewery licensed under this section and qualified for a reduced rate of taxation pursuant to RCW 66.24.290(3)(b) may apply to the board for an endorsement to sell bottled beer of its own production at retail for off-premises consumption at a qualifying farmers market.  The annual fee for this endorsement is seventy-five dollars.

      (b) For each month during which a domestic brewery will sell beer at a qualifying farmers market, the domestic brewery must provide the board or its designee a list of the dates, times, and locations at which bottled beer may be offered for sale.  This list must be received by the board before the domestic brewery may offer beer for sale at a qualifying farmers market.

      (c) The beer sold at qualifying farmers markets must be produced in Washington.

      (d) Each approved location in a qualifying farmers market is deemed to be part of the domestic brewery license for the purpose of this title.  The approved locations under an endorsement granted under this subsection do not include the tasting or sampling privilege of a domestic brewery.  The domestic brewery may not store beer at a farmers market beyond the hours that the domestic brewery offers bottled beer for sale.  The domestic brewery may not act as a distributor from a farmers market location.

      (e) Before a domestic brewery may sell bottled beer at a qualifying farmers market, the farmers market must apply to the board for authorization for any domestic brewery with an endorsement approved under this subsection to sell bottled beer at retail at the farmers market.  This application shall include, at a minimum:  (i) A map of the farmers market showing all booths, stalls, or other designated locations at which an approved domestic brewery may sell bottled beer; and (ii) the name and contact information for the on-site market managers who may be contacted by the board or its designee to verify the locations at which bottled beer may be sold.  Before authorizing a qualifying farmers market to allow an approved domestic brewery to sell bottled beer at retail at its farmers market location, the board shall notify the persons or entities of such application for authorization pursuant to RCW 66.24.010 (8) and (9).  An authorization granted under this subsection (((5))) (6)(e) may be withdrawn by the board for any violation of this title or any rules adopted under this title.

      (f) The board may adopt rules establishing the application and approval process under this section and such additional rules as may be necessary to implement this section.

      (g) For the purposes of this subsection:

      (i) "Qualifying farmers market" means an entity that sponsors a regular assembly of vendors at a defined location for the purpose of promoting the sale of agricultural products grown or produced in this state directly to the consumer under conditions that meet the following minimum requirements:

      (A) There are at least five participating vendors who are farmers selling their own agricultural products;

      (B) The total combined gross annual sales of vendors who are farmers exceeds the total combined gross annual sales of vendors who are processors or resellers;

      (C) The total combined gross annual sales of vendors who are farmers, processors, or resellers exceeds the total combined gross annual sales of vendors who are not farmers, processors, or resellers;

      (D) The sale of imported items and secondhand items by any vendor is prohibited; and

      (E) No vendor is a franchisee.

      (ii) "Farmer" means a natural person who sells, with or without processing, agricultural products that he or she raises on land he or she owns or leases in this state or in another state's county that borders this state.

      (iii) "Processor" means a natural person who sells processed food that he or she has personally prepared on land he or she owns or leases in this state or in another state's county that borders this state.

      (iv) "Reseller" means a natural person who buys agricultural products from a farmer and resells the products directly to the consumer."

On page 1, line 1 of the title, after "licenses;" strike the remainder of the title and insert "amending RCW 66.24.010, 66.24.410, 66.24.371, and 66.24.240; and reenacting and amending RCW 66.04.010 and 66.24.244."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1465 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Hunt and Taylor spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1465, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1465, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1465, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

March 30, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1467 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 18.104.020 and 2005 c 84 s 1 are each amended to read as follows:

      The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

      (1) "Abandoned well" means a well that is unmaintained or is in such disrepair that it is unusable or is a risk to public health and welfare.

      (2) "Constructing a well" or "construct a well" means:

      (a) Boring, digging, drilling, or excavating a well;

      (b) Installing casing, sheeting, lining, or well screens, in a well;

      (c) Drilling a geotechnical soil boring; or

      (d) Installing an environmental investigation well.

      "Constructing a well" or "construct a well" includes the alteration of an existing well.

      (3) "Decommission" means to fill or plug a well so that it will not produce water, serve as a channel for movement of water or pollution, or allow the entry of pollutants into the well or aquifers.

      (4) "Department" means the department of ecology.

      (5) "Dewatering well" means a cased or lined excavation or boring that is intended to withdraw or divert groundwater for the purpose of facilitating construction, stabilizing a landslide, or protecting an aquifer.

      (6) "Director" means the director of the department of ecology.

      (7) "Environmental investigation well" means a cased hole intended or used to extract a sample or samples of groundwater, vapor, or soil from an underground formation and which is decommissioned immediately after the sample or samples are obtained.  An environmental investigation well is typically installed using direct push technology or auger boring and uses the probe, stem, auger, or rod as casing.  An environmental investigation well is not a geotechnical soil boring.

      (8) "Geotechnical soil boring" or "boring" means a well drilled for the purpose of obtaining soil samples or information to ascertain structural properties of the subsurface.

      (9) "Ground source heat pump boring" means a vertical boring constructed for the purpose of installing a closed loop heat exchange system for a ground source heat pump.

      (10) "Groundwater" means and includes groundwaters as defined in RCW 90.44.035.

      (11) "Grounding well" means a grounding electrode installed in the earth by the use of drilling equipment to prevent buildup of voltages that may result in undue hazards to persons or equipment.  Examples are anode and cathode protection wells.

      (12) "Instrumentation well" means a well in which pneumatic or electric geotechnical or hydrological instrumentation is permanently or periodically installed to measure or monitor subsurface strength and movement.  Instrumentation well includes borehole extensometers, slope indicators, pneumatic or electric pore pressure transducers, and load cells.

      (13) "Monitoring well" means a well designed to obtain a representative groundwater sample or designed to measure the water level elevation in either clean or contaminated water or soil.

      (14) "Observation well" means a well designed to measure the depth to the water level elevation in either clean or contaminated water or soil.

      (15) "Operator" means a person who (a) is employed by a well contractor; (b) is licensed under this chapter; or (c) who controls, supervises, or oversees the construction of a well or who operates well construction equipment.

      (16) "Owner" or "well owner" means the person, firm, partnership, copartnership, corporation, association, other entity, or any combination of these, who owns the property on which the well is or will be constructed or has the right to the well by means of an easement, covenant, or other enforceable legal instrument for the purpose of benefiting from the well.

      (17) "Pollution" and "contamination" have the meanings provided in RCW 90.48.020.

      (18) "Remediation well" means a well intended or used to withdraw groundwater or inject water, air (for air sparging), or other solutions into the subsurface for the purpose of remediating, cleaning up, or controlling potential or actual groundwater contamination.

      (19) "Resource protection well" means a cased boring intended or used to collect subsurface information or to determine the existence or migration of pollutants within an underground formation.  Resource protection wells include monitoring wells, observation wells, piezometers, spill response wells, remediation wells, environmental investigation wells, vapor extraction wells, ground source heat pump boring, grounding wells, and instrumentation wells.

      (20) "Resource protection well contractor" means any person, firm, partnership, copartnership, corporation, association, or other entity, licensed and bonded under chapter 18.27 RCW, engaged in the business of constructing resource protection wells or geotechnical soil borings.

      (21) "Water well" means any excavation that is constructed when the intended use of the well is for the location, diversion, artificial recharge, observation, monitoring, dewatering, or withdrawal of groundwater.  "Water wells" include ground source heat pump borings and grounding wells.

      (22) "Water well contractor" means any person, firm, partnership, copartnership, corporation, association, or other entity, licensed and bonded under chapter 18.27 RCW, engaged in the business of constructing water wells.

      (23)(a) "Well" means water wells, resource protection wells, dewatering wells, and geotechnical soil borings.

(b) Well does not mean an excavation made for the purpose of:
      (i) Obtaining or prospecting for oil, natural gas, geothermal resources, minerals, or products of mining, or quarrying, or for inserting media to repressure oil or natural gas bearing formations, or for storing petroleum, natural gas, or other products;
      (ii) Siting and constructing an on-site sewage disposal system as defined in RCW 70.118.020 or a large on-site sewage system as defined in RCW 70.118B.010; or
      (iii) Inserting any device or instrument less than ten feet in depth into the soil for the sole purpose of performing soil or water testing or analysis or establishing soil moisture content as long as there is no withdrawal of water in any quantity other than as necessary to perform the intended testing or analysis.

      (24) "Well contractor" means a resource protection well contractor and a water well contractor licensed and bonded under chapter 18.27 RCW."

On page 1, line 1 of the title, after "well;" strike the remainder of the title and insert "and amending RCW 18.104.020."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1467 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Buys and Blake spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1467, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1467, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1467, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 4, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1473 with the following amendment:

0) 

                On page 2, line 7, after "46.63.110." insert "For the purposes of this section, the penalty includes the base penalty and all assessments and other costs that are required by statute or rule to be added to the base penalty."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1473 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Parker and Clibborn spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1473, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1473, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1473, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

March 28, 2011

Mr. Speaker:

 

The Senate has passed HOUSE BILL NO. 1479 with the following amendment:

0) 

      On page 3, line 9, after "charge a" strike "reasonable fee for" and insert "minimal fee sufficient to cover costs of"

      On page 6, line 6, after "charge a" strike "reasonable fee for" and insert "minimal fee sufficient to cover costs of"

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to HOUSE BILL NO. 1479 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Goodman and Rodne spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of House Bill No. 1479, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of House Bill No. 1479, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 94; Nays, 2; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Voting nay: Representatives Hunt and Reykdal.

      Excused: Representative Haigh.

 

HOUSE BILL NO. 1479, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 6, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1485 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"Sec. 1.  RCW 19.09.010 and 2007 c 471 s 1 are each amended to read as follows:

      The purpose of this chapter is to:

      (1) Provide citizens of the state of Washington with information relating to ((persons and organizations who)) any entity that solicits funds from the public for public charitable purposes in order to prevent (a) deceptive and dishonest practices in the conduct of soliciting funds for or in the name of charity; and (b) improper use of contributions intended for charitable purposes;

      (2) Improve the transparency and accountability of organizations that solicit funds from the public for charitable purposes; and

      (3) Develop and operate educational programs or partnerships for charitable organizations, board members, and the general public that help build public confidence and trust in organizations that solicit funds from the public for charitable purposes.

Sec. 2.  RCW 19.09.020 and 2007 c 471 s 2 are each amended to read as follows:

      When used in this chapter, unless the context otherwise requires:

      (1) A "bona fide officer or employee" of a charitable organization is one (a) whose conduct is subject to direct control by such organization; (b) who does not act in the manner of an independent contractor in his or her relation with the organization; and (c) whose compensation is not computed on funds raised or to be raised.

      (2) "Charitable organization" means any entity that solicits or collects contributions from the general public where the contribution is or is purported to be used to support a charitable purpose, but does not include any commercial fund-raiser, commercial fund-raising entity, commercial coventurer, or any fund-raising counsel, as defined in this section.  Churches and their integrated auxiliaries, and political organizations are not charitable organizations, but all are subject to RCW 19.09.100 (((12),)) (15)((, and)) through (18).

      (3) "Charitable purpose" means any religious, charitable, scientific, testing for public safety, literary, or educational purpose or any other purpose that is beneficial to the community, including environmental, humanitarian, patriotic, or civic purposes, the support of national or international amateur sports competition, the prevention of cruelty to children or animals, the advancement of social welfare, or the benefit of law enforcement personnel, firefighters, and other persons who protect public safety.  The term "charitable" is used in its generally accepted legal sense and includes relief of the poor, the distressed, or the underprivileged; advancement of religion; advancement of education or science; erecting or maintaining public buildings, monuments, or works; lessening the burdens of government; lessening neighborhood tensions; eliminating prejudice and discrimination; defending human and civil rights secured by law; and combating community deterioration and juvenile delinquency.

      (4) "Commercial coventurer" means any individual or corporation, partnership, sole proprietorship, limited liability company, limited partnership, limited liability partnership, or any other legal entity, that:

      (a) Is regularly and primarily engaged in making sales of goods or services for profit directly to the general public;

      (b) Is not otherwise regularly or primarily engaged in making ((charitable)) solicitations in this state or otherwise raising funds in this state for one or more charitable organizations;

      (c) Represents to prospective purchasers that, if they purchase a good or service from the commercial coventurer, a portion of the sales price or a sum of money or some other specified thing of value will be donated to a named charitable organization; and

      (d) Does not ask purchasers to make checks or other instruments payable to a named charitable organization or any entity other than the commercial coventurer itself under its regular commercial name.

      (5) "Commercial fund-raiser" or "commercial fund‑raising entity" means any entity that for compensation or other consideration ((within this state)) directly or indirectly solicits or receives contributions within this state for or on behalf of any charitable organization or charitable purpose, or that is engaged in the business of, or ((is held out)) represents to persons in this state as independently engaged in the business of, soliciting or receiving contributions for such purposes.  However, a commercial coventurer, fund‑raising counsel, or consultant is not a commercial fund-raiser or commercial fund‑raising entity.

      (6) "Compensation" means salaries, wages, fees, commissions, or any other remuneration or valuable consideration.

      (7) "Contribution" means the payment, donation, or promise, ((or grant,)) for consideration or otherwise, of any money or property of any kind or value which contribution is wholly or partly induced by a solicitation.  Reference to dollar amounts of "contributions" or "solicitations" in this chapter means in the case of payments or promises to pay for merchandise or rights of any description, the value of the total amount paid or promised to be paid for such merchandise or rights.

      (8) "Cost of solicitation" means and includes all direct and indirect costs, expenditures, debts, obligations, salaries, wages, commissions, fees, or other money or thing of value paid or incurred in making a solicitation.

      (9) "Entity" means an individual, organization, group, association, partnership, corporation, agency or unit of state government, or any combination thereof.

      (10) "Fund‑raising counsel" or "consultant" means any entity or individual who is retained by a charitable organization, for a fixed fee or rate, that is not computed on a percentage of funds raised, or to be raised, under a written agreement only to plan, advise, consult, or prepare materials for a solicitation of contributions in this state, but who does not manage, conduct, or carry on a fund‑raising campaign and who does not solicit contributions or employ, procure, or engage any compensated person to solicit contributions, and who does not at any time have custody or control of contributions.  A volunteer, employee, or salaried officer of a charitable organization maintaining a permanent establishment or office in this state is not a fund‑raising counsel.  An attorney, investment counselor, or banker who advises an individual, corporation, or association to make a charitable contribution is not a fund‑raising counsel as a result of the advice.

      (11) "General public" or "public" means any individual or entity located in Washington state without a membership or other official relationship with a charitable organization before a solicitation by the charitable organization.

      (12) "Gross revenue" or "annual gross revenue" means, for any accounting period, the total value of revenue, excluding unrealized capital gains, but including noncash contributions of tangible, personal property received by or on behalf of a charitable organization from all sources, without subtracting any costs or expenses.
      (13) "Membership" means that for the payment of fees, dues, assessments, etc., an organization provides services and confers a bona fide right, privilege, professional standing, honor, or other direct benefit, in addition to the right to vote, elect officers, or hold office.  The term "membership" does not include those persons who are granted a membership upon making a contribution as the result of solicitation.

      (((13))) (14) "Other employee" of a charitable organization means any person (a) whose conduct is subject to direct control by such organization; (b) who does not act in the manner of any independent contractor in his or her relation with the organization; and (c) who is not engaged in the business of or held out to persons in this state as independently engaged in the business of soliciting contributions for charitable purposes or religious activities.

      (((14))) (15) "Political organization" means those organizations whose activities are subject to chapter ((42.17)) 42.17A RCW or the Federal Elections Campaign Act of 1971, as amended.

      (((15))) (16) "Religious organization" means those entities that are not churches or integrated auxiliaries and includes nondenominational ministries, interdenominational and ecumenical organizations, mission organizations, speakers' organizations, faith‑based social agencies, and other entities whose principal purpose is the study, practice, or advancement of religion.

      (((16))) (17) "Secretary" means the secretary of state.

      (((17))) (18) "Signed" means hand-written, or, if the secretary adopts rules facilitating electronic filing that pertain to this chapter, in the manner prescribed by those rules.

      (((18))) (19)(a) "Solicitation" means any oral or written request for a contribution, including the solicitor's offer or attempt to sell any property, rights, services, or other thing in connection with which:

      (i) Any appeal is made for any charitable purpose;

      (ii) The name of any charitable organization is used as an inducement for consummating the sale; or

      (iii) Any statement is made that implies that the whole or any part of the proceeds from the sale will be applied toward any charitable purpose or donated to any charitable organization.

      (b) The solicitation shall be deemed completed when made, whether or not the person making it receives any contribution or makes any sale.

      (c) "Solicitation" does not include bingo activities, raffles, and amusement games conducted under chapter 9.46 RCW and applicable rules of the Washington state gambling commission.

(20) "Solicitation report" means the financial information the secretary requires pursuant to RCW 19.09.075 or 19.09.079.

NEW SECTION.  Sec. 3.  A new section is added to chapter 19.09 RCW to read as follows:

      The application requirements of RCW 19.09.075 do not apply to:

      (1) Any charitable organization raising less than fifty thousand dollars in any accounting year when all the activities of the organization, including all fund-raising activities, are carried on by persons who are unpaid for their services and no part of the charitable organization's assets or income inures to the benefit of or is paid to any officer, director, member, or trustee of the organization, other than as part of a charitable class benefited by the charitable organization.

      (2) Appeals for funds on behalf of a specific individual named in the solicitation, but only if all of the proceeds of the solicitation are given to or expended for the direct benefit of that individual.

Sec. 4.  RCW 19.09.062 and 2010 1st sp.s. c 29 s 11 are each amended to read as follows:

      The secretary of state ((shall)) must collect the following fees in accordance with this chapter:

      (1) For an application for registration as a charitable organization, a fee of sixty dollars.  Twenty dollars of this fee must be deposited in the state general fund and the remaining forty dollars must be deposited in the charitable organization education account under RCW 19.09.530;

      (2) For an annual renewal of registration as a charitable organization, a fee of forty dollars.  Ten dollars of this fee must be deposited in the state general fund and the remaining thirty dollars must be deposited in the charitable organization education account under RCW 19.09.530;

      (3) For an application for registration as a commercial fund- raiser, a fee of three hundred dollars.  Two hundred fifty dollars of this fee must be deposited in the state general fund and the remaining fifty dollars must be deposited in the charitable organization education account under RCW 19.09.530;

      (4) For an annual renewal of registration as a commercial fund- raiser, a fee of two hundred twenty-five dollars.  One hundred seventy- five dollars of this fee must be deposited in the state general fund and the remaining fifty dollars must be deposited in the charitable organization education account under RCW 19.09.530;

      (5) For a registration of a commercial fund-raiser service contract, a fee of twenty dollars.  Ten dollars of this fee must be deposited in the state general fund and the remaining ten dollars must be deposited in the charitable organization education account under RCW 19.09.530.

Sec. 5.  RCW 19.09.065 and 1993 c 471 s 2 are each amended to read as follows:

      (1) All charitable organizations and commercial fund-raisers ((shall)) must register with the secretary prior to conducting any solicitations.

      (2) Failure to register as required by this chapter is a violation of this chapter.

      (3) Information provided to the secretary pursuant to this chapter ((shall be)) is a public record except as ((otherwise stated in this chapter)) provided by lawSocial security numbers and financial account numbers are not public information.

      (4) Registration ((shall)) must not be considered or be represented as an endorsement by the secretary or the state of Washington.

NEW SECTION.  Sec. 6.  A new section is added to chapter 19.09 RCW, to be codified between RCW 19.09.065 and 19.09.075, to read as follows:

      (1) Entities are deemed registered under RCW 19.09.075 or 19.09.079 twenty days after receipt of the registration or renewal form by the secretary and may thereafter solicit contributions from the general public.

      (2) If the secretary determines that the application for initial registration or renewal is incomplete, the secretary will notify the applicant of the information necessary to complete the application.  The secretary may hold the application up to thirty days to allow the applicant time to provide additional information.  If the applicant fails to provide complete information as requested by the secretary, the applicant will be deemed unregistered and must cease all solicitations as defined by this chapter.

      (3) If an applicant fails to pay a required fee for any filing, the secretary will notify the applicant of the necessary fee to complete the application.  The secretary may hold the application up to thirty days to allow the applicant time to submit the required payment.  If the applicant fails to provide the required payment as requested by the secretary, the applicant will be deemed unregistered and must cease all solicitations as defined by this chapter.

NEW SECTION.  Sec. 7.  A new section is added to chapter 19.09 RCW, to be codified between section 6 of this act and RCW 19.09.075, to read as follows:

      Charitable organizations must ensure that the financial information included in the solicitation report fairly represents, in all material respects, the financial condition and results of operations of the organization as of, and for, the period presented to the secretary for filing.  If the financial information submitted to the secretary is incorrect in any material way, it is a violation of this chapter and the charitable organization may be subject to penalties as provided under RCW 19.09.279.

Sec. 8.  RCW 19.09.075 and 2010 1st sp.s. c 29 s 12 are each amended to read as follows:

(1) An application for initial registration and renewal as a charitable organization ((shall)) must be submitted ((in)) on the form ((prescribed by rule)) approved by the secretary((, containing, but not limited to, the following)) and must contain:

      (((1))) (a) The name, address, and telephone number of the charitable organization;

      (((2))) (b) The name(s) under which the charitable organization will solicit contributions;

      (((3))) (c) The name, address, and telephone number of the officers of or persons accepting responsibility for the charitable organization;

      (((4))) (d) The names of the three officers or employees receiving the greatest amount of compensation from the charitable organization;

      (((5))) (e) The purpose of the charitable organization;

      (((6)(a))) (f) Whether the organization is exempt from federal income tax; and if so the organization shall attach to its application a copy of the letter by which the internal revenue service granted such status; ((and
      (b))) (g) The name and address of the entity that prepares, reviews, or audits the financial statement of the charitable organization;

      (((7))) (h) A solicitation report of the charitable organization for the preceding, completed accounting year including:

      (((a))) (i) The types of solicitations conducted;

      (((b))) (ii) The ((total dollar value of contributions)) gross revenue received from ((solicitations and from)) all ((other)) sources ((received on behalf of the charitable purpose)) by or on behalf of the charitable organization before any expenses are paid or deducted;

      (((c))) (iii) The total ((amount of money applied to charitable purposes, fund-raising costs, and other expenses; and
      (d) The name, address, and telephone number of any commercial fund- raiser used by the organization;
      (8) An irrevocable appointment of the secretary to receive service of process in noncriminal proceedings as provided in RCW 19.09.305; and
      (9) The total revenue of the preceding fiscal year.
      The solicitation report required to be submitted under subsection (7) of this section shall be in the form prescribed by rule by the secretary, or as agreed to by the secretary and a charitable organization)) value of contributions received from all solicitations for or on behalf of the charitable organization before any expenses are paid or deducted;
      (iv) The total value of funds expended for charitable purposes; and
      (v) Total expenses, including expenditures for charitable purposes, fund-raising costs, and administrative expenses;
      (i) The name, address, and telephone number of any commercial fund- raiser retained by the charitable organization; and
      (j) An irrevocable appointment of the secretary to receive service of process in noncriminal proceedings as provided in RCW 19.09.305; and
      (k) Such other information the secretary deems necessary by rule.
      (2) The governing body or committee thereof must review and accept any financial report that the charitable organization may be required to file with the office of the secretary.
      (3) Charitable organizations that are required under federal tax law to file an annual return in the form 990 series or any successor series is not required to file a copy of such annual return with the secretary:  PROVIDED, That the charitable organization complies with all federal tax law requirements with respect to public inspection of such annual return.

(4) The president, treasurer, or comparable officer of the organization must sign and date the application.  The application ((shall)) must be submitted with a nonrefundable filing fee established in RCW 19.09.062.  ((If the secretary determines that the application is complete, the application shall be filed and the applicant deemed registered.))

(5) Charitable organizations required to register and renew under this chapter must file a notice of change of information within thirty days of any change in the information contained in subsection (1)(a) through (k) of this section.

NEW SECTION.  Sec. 9.  A new section is added to chapter 19.09 RCW to read as follows:

      The secretary is authorized to adopt rules, in accordance with chapter 34.05 RCW, that establish a set of tiered financial reporting requirements for charitable organizations required to register with the secretary pursuant to this chapter.  Rules adopted under this section must include, but not be limited to, substantially the following:

      (1) Tier one.  Charitable organizations with one million dollars or less in annual gross revenue averaged over the three preceding, completed accounting years must meet the financial reporting requirements specified in RCW 19.09.075;

      (2) Tier two.  Charitable organizations with more than one million dollars and up to three million dollars in annual gross revenue averaged over the three preceding, completed accounting years must, in addition to the reporting requirements in RCW 19.09.075, make one of the following financial reporting requirements available to the public upon request, or accessible to the public on the internet:

      (a) The federal financial reporting form (990, 990PF, 990EZ, 990T) the organization normally files with the IRS which must be prepared by a certified public accountant or other professional who normally prepares such forms in the ordinary course of their business; or

      (b) An audited financial statement prepared by an independent certified public accountant for the preceding accounting year;

      (3) Tier three.  Charitable organizations with more than three million dollars in annual gross revenue averaged over the three preceding, completed accounting years must, in addition to the reporting requirements in RCW 19.09.075, obtain an independent, third- party audit of its financial records for the preceding accounting year.  This audit report must be made available in paper form to the public upon request or accessible to the public on the internet.

      (4) The secretary may waive a tiered reporting requirement as prescribed in rule.

Sec. 10.  RCW 19.09.079 and 2010 1st sp.s. c 29 s 13 are each amended to read as follows:

      An application for registration and renewal as a commercial fund- raiser ((shall)) must be submitted ((in)) on the form ((prescribed)) approved by the secretary((, containing, but not limited to, the following)) and must contain:

      (1) The name, address, and telephone number of the commercial fund- raising entity;

      (2) The name(s), address(es), and telephone number(s) of the owner(s) and principal officer(s) of the commercial fund-raising entity;

      (3) The name, address, and telephone number of the individual responsible for the activities of the commercial fund-raising entity in Washington;

      (4) The names of the three officers or employees receiving the greatest amount of compensation from the commercial fund-raising entity;

      (5) The name and address of the entity that prepares, reviews, or audits the financial statement of the organization;

      (6) A solicitation report of the commercial fund-raising entity for the preceding, completed accounting year, including:

      (a) The types of fund-raising services conducted;

      (b) The names of charitable organizations required to register under RCW ((19.09.065)) 19.09.075 for whom fund-raising services have been performed;

      (c) The total value of contributions received on behalf of charitable organizations required to register under RCW ((19.09.065)) 19.09.075 by the commercial fund-raiser, affiliate of the commercial fund-raiser, or any entity retained by the commercial fund-raiser; and

      (d) The amount of money disbursed to charitable organizations for charitable purposes, net of fund-raising costs paid by the charitable organization as stipulated in any agreement between charitable organizations and the commercial fund-raiser;

      (7) The name, address, and telephone number of any other commercial fund-raiser that was retained in the conduct of providing fund-raising services; ((and))

      (8) An irrevocable appointment of the secretary to receive service of process in noncriminal proceedings as provided in RCW 19.09.305; and
      (9) Such other information the secretary deems necessary by rule.

      The application ((shall)) must be signed by an officer or owner of the commercial fund-raiser and ((shall)) must be submitted with a nonrefundable fee established in RCW 19.09.062.  ((If the secretary determines that the application is complete, the application shall be filed and the applicant deemed registered.))

Commercial fund-raisers required to register and renew under this chapter must file a notice of change of information within thirty days of any change in the information contained in subsections (1) through (7) and (9) of this section.

NEW SECTION.  Sec. 11.  A new section is added to chapter 19.09 RCW to read as follows:

      (1) Every commercial fund-raiser must execute a surety bond if it:

      (a) Directly or indirectly receives contributions from the public on behalf of any charitable organization;

      (b) Is compensated based upon funds raised or to be raised, number of solicitations made or to be made, or any other similar method;

      (c) Incurs or is authorized to incur expenses on behalf of the charitable organization; or

      (d) Has not been registered with the secretary as a commercial fund-raiser for the preceding accounting year.

      (2) The surety bond must be executed as principal in the amount prescribed by the secretary in rule.  The issuer of the surety bond must be licensed to do business in this state, and must promptly notify the secretary when claims or payments are made against the bond or when the bond is canceled.  The bond must be filed with the secretary in the form prescribed by the secretary.  The bond must run to the state and to any person who may have a cause of action against the obligor of said bond for any malfeasance, misfeasance, or deceptive practice in the conduct of solicitations.

      The secretary may also provide by rule for the reduction and reinstatement of the bond required by this section.

Sec. 12.  RCW 19.09.085 and 2007 c 471 s 6 are each amended to read as follows:

      (1) Registration under this chapter ((shall be)) is effective for one year or ((longer,)) as established by the secretary.

      (2) ((Reregistration)) Renewals required under RCW 19.09.075 or 19.09.079 ((shall)) must be submitted to the secretary no later than the date established by the secretary by rule.

      (3) ((Entities required to register under this chapter shall file a notice of change of information within thirty days of any change in the information contained in RCW 19.09.075 (1) through (9) or 19.09.079 (1) through (7).
      (4))) The secretary ((shall)) must notify entities registered under this chapter of the need to ((reregister)) renew upon the expiration of their current registration.  The notification ((shall)) must be ((by mail, sent at least)) made approximately sixty days prior to the expiration ((of their current registration)) date and must be made through postal or electronic means.  Failure to ((register)) renew shall not be excused by a failure of the secretary to ((mail)) send the notice or by an entity's failure to receive the notice.

(4) Entities required to register and renew under this chapter must file a notice of change of information within thirty days of any change in the information contained in RCW 19.09.075 (1)(a) through (k) or 19.09.079 (1) through (7) and (9).
      (5) Entities are deemed registered under RCW 19.09.075 or 19.09.079 no sooner than twenty days after receipt of the registration or renewal form by the secretary and may thereafter solicit contributions from the general public.
      (6) If the secretary determines that the application for initial registration or renewal is incomplete, the secretary must notify the applicant of the information necessary to complete the application.  The secretary may hold the application up to thirty days to allow the applicant time to provide additional information.  If the applicant fails to provide complete information as requested by the secretary, the applicant must be deemed unregistered and must cease all solicitations as defined by this chapter.
      (7) If an applicant fails to pay a required fee for any filing, the secretary must notify the applicant of the necessary fee to complete the application.  The secretary may hold the application up to thirty days to allow the applicant time to submit the required payment.  If the applicant fails to provide the required payment as requested by the secretary, the applicant must be deemed unregistered and must cease all solicitations as defined by this chapter.

Sec. 13.  RCW 19.09.097 and 2010 1st sp.s. c 29 s 14 are each amended to read as follows:

      (1) No charitable organization may contract with a commercial fund- raiser for any fund-raising service or activity unless its contract requires that both parties comply with the law and permits officers of the charity reasonable access to:

      (a) The fund-raisers' financial records relating to that charitable organization;

      (b) The fund-raisers' operations including without limitation the right to be present during any telephone solicitation; and

      (c) The names of all of the fund-raisers' employees or staff who are conducting fund-raising activities or ((charitable)) solicitations on behalf of the charitable organization.  In addition, the contract shall specify the amount of raised funds that the charitable organization will receive or the method of computing that amount, the amount of compensation of the commercial fund-raiser or the method of computing that amount, and whether the compensation is fixed or contingent.

      (2) Before a charitable organization may contract with a commercial fund-raiser for any fund-raising service or activity, the charitable organization and commercial fund-raiser shall complete and file a registration form with the secretary.  The registration ((shall)) must be filed by the charitable organization ((in)) on the form ((prescribed)) approved by the secretary((.  The registration shall)) and must contain((, but not be limited to, the following information)):

      (a) The name and registration number of the commercial fund-raiser;

      (b) ((The name of the surety or sureties issuing the bond required by RCW 19.09.190, the aggregate amount of such bond or bonds, the bond number(s), original effective date(s), and termination date(s);
      (c))) The name and registration number of the charitable organization;

      (((d))) (c) The name of the representative of the commercial fund- raiser who will be responsible for the conduct of the fund-raising;

      (((e))) (d) The type(s) of service(s) to be provided by the commercial fund-raiser;

      (((f))) (e) The term dates of the contract and the dates such service(s) will begin and end;

      (((g))) (f) The terms of the ((agreement)) contract between the charitable organization and commercial fund-raiser relating to:

      (i) Amount or percentages of amounts to inure to the charitable organization;

      (ii) Limitations placed on the maximum amount to be raised by the fund-raiser, if the amount to inure to the charitable organization is not stated as a percentage of the amount raised;

      (iii) Costs of fund-raising that will be the responsibility of the charitable organization, regard­less of whether paid as a direct expense, deducted from the amounts disbursed, or otherwise; and

      (iv) The manner in which contributions received directly by the charitable organization, not the result of services provided by the commercial fund-raiser, will be identified and used in computing the fee owed to the commercial fund-raiser; and

      (((h))) (g) The names of any entity, other than the contracting commercial fund-raiser to which ((more than ten percent)) any of the total anticipated fund-raising cost is to be paid, and whether any principal officer or owner of the commercial fund-raiser or relative by blood or marriage thereof is an owner or officer of any such entity.

      (3) The registration form must be submitted with a nonrefundable filing fee established in RCW 19.09.062 and must be signed by an owner or principal officer of the commercial fund-raiser and the president, treasurer, trustee or comparable officer of the charitable organization.
      (4) A correct copy of the contract shall be filed with the secretary before the commencement of any campaign.

      (((4) The registration form shall be submitted with a nonrefundable filing fee established in RCW 19.09.062 and shall be signed by an owner or principal officer of the commercial fund-raiser and the president, treasurer, or comparable officer of the charitable organization.))

(5) If the secretary determines that the application is incomplete, the secretary must notify the applicant of the information necessary to complete the application.  The secretary may hold documents up to thirty days to allow the applicant time to provide additional information.  If the applicant fails to provide complete information as requested by the secretary, the applicant must be deemed unregistered and the commercial fund-raiser must cease all solicitations under the terms of the contract.
      (6) If an applicant fails to pay the required filing fee, the secretary must notify the applicant of the necessary fee to complete the application.  The secretary may hold the application up to thirty days to allow the applicant time to submit the required payment.  If the applicant fails to provide the required payment as requested by the secretary, the applicant must be deemed unregistered and the commercial fund-raiser must cease all solicitations under the terms of the contract.

Sec. 14.  RCW 19.09.100 and 2007 c 471 s 8 and 2007 c 218 s 64 are each reenacted and amended to read as follows:

All entities soliciting contributions for charitable purposes must comply with the requirements of this section except entities exempted from registration are not required to make the disclosures under subsections (1)(c), (4)(b) or (c), and (5)(b) of this section.  The following conditions apply to solicitations as defined by RCW 19.09.020:

      (1) ((A charitable organization, whether or not required to register pursuant to this chapter,)) Any entity that directly solicits contributions from the public in this state ((shall)) must make the following clear and conspicuous disclosures at the point of solicitation:

      (a) The name of the individual making the solicitation;

      (b) The identity of the charitable organization and the city of the principal place of business of the charitable organization;

      (c) ((If requested by the solicitee,)) The published number ((in)) and web site of the office of the secretary, if requested, for the donor to obtain additional financial ((disclosure)) and other information on file with the secretary.  The disclosure must be made during an oral solicitation of a contribution, and at the same time at which a written request for a contribution is made.

      (2) A commercial fund-raiser ((shall)) must meet the required disclosures described in subsection (1) of this section clearly and conspicuously ((disclose)) at the point of solicitation((:
      (a) The name of the individual making the solicitation;
      (b))) and must also disclose the name of the entity for which the fund-raiser is an agent or employee and the name and city of the charitable organization for which the solicitation is being conducted((; and
      (c) If requested by the solicitee, the published number in the office of the secretary for the donor to obtain additional financial disclosure information on file with the secretary.  The disclosure must be made during an oral solicitation of a contribution, and at the same time at which a written request for a contribution is made)).

      (3) ((A person or organization soliciting charitable contributions by)) Telephone ((shall make)) solicitations must include the disclosures required under subsection (1) or (2) of this section ((in the course of the solicitation but)) prior to asking for a ((commitment for a)) contribution ((from the solicitee, and)).  The required disclosures must also be provided in writing within five business days to ((any solicitee that)) anyone who makes a pledge ((within five working days of making the pledge.  If the person or organization sends any materials to the person or organization solicited before the receipt of any contribution, those materials shall include the disclosures required in subsection (1) or (2) of this section, whichever is applicable)) by telephone to donate.

      (4) In the case of a solicitation by advertisement or mass distribution, including postal, electronic, posters, leaflets, automatic dialing machines, publications, and audio or video broadcasts, it ((shall)) must be clearly and conspicuously disclosed in the body of the solicitation material that:

      (a) The solicitation is conducted by a named commercial fund- raiser, if it is;

      (b) The ((notice of solicitation)) registration required by the charitable solicitation act is on file with the secretary's office; and

      (c) The potential donor can obtain additional financial ((disclosure)) and other information at a published number ((in)) or web site for the office of the secretary.

      (5) A container or vending machine displaying a solicitation must ((also)) display:
      (a) In a clear and conspicuous manner the name of the charitable organization for which funds are solicited, the name, business address, and telephone number of the individual ((and)) or any commercial fund- raiser responsible for collecting funds placed in the containers or vending machines((, and the following));
      (b) The statement:  "This ((charity)) organization is currently registered with the secretary's office under the charitable solicitation act((, registration number . . . .)) - call 1-800-332- 4483," if the charitable organization for which funds are solicited is required to register under chapter 19.09 RCW.

      (6) ((A commercial fund-raiser shall not)) No entity may represent that tickets to any fund-raising event will be donated for use by another person unless all the following requirements are met:

      (a) The ((commercial fund-raiser)) entity prior to conducting a solicitation has written commitments from persons stating that they will accept donated tickets and specifying the number of tickets they will accept;

      (b) The written commitments are kept on file by the ((commercial fund-raiser)) entity for three years and are made available to the secretary, attorney general, or county prosecutor on demand;

      (c) The contributions solicited for donated tickets may not be more than the amount representing the number of ticket commitments received from persons and kept on file under (a) of this subsection; and

      (d) Not later than seven calendar days prior to the date of the event for which ticket donations are solicited, the ((commercial fund- raiser shall)) entity must give all donated tickets to the persons who made the written commitments to accept them.

      (7) ((Each person or organization)) Any entity soliciting charitable contributions ((shall)) must not ((represent)) misrepresent orally or in writing ((that)):

      (a) ((The charitable contribution is tax deductible unless the charitable organization for which charitable contributions are being solicited or to which tickets for fund-raising events or other services or goods will be donated, has applied for and received from the internal revenue service a letter of determination granting tax deductible status to the charitable organization)) The tax deductibility of a contribution;

      (b) That the person soliciting the charitable contribution is a volunteer or words of similar meaning or effect that create the impression that the person soliciting is not a paid solicitor unless such person is unpaid for his or her services;

      (c) That the person soliciting the charitable contribution is a member, staffer, helper, or employee of the charitable organization or words of similar meaning or effect that create the impression that the person soliciting is not a paid solicitor if the person soliciting is employed, contracted, or paid by a commercial fund-raiser.

      (8) If the charitable organization is associated with, or has a name that is similar to, any unit of government ((each person or organization)) the entity soliciting contributions ((shall)) must disclose to each person solicited whether the charitable organization is or is not part of any unit of government and the true nature of its relationship to the unit of government.  This subsection does not apply to a foundation or other charitable organization that is organized, operated, or controlled by or in connection with a registered public charity, including any governmental agency or unit, from which it derives its name.

      (9) No ((person)) entity may, in conducting any solicitation, use the name "police," "sheriff," (("firefighter,")) "firefighters," or a similar name unless properly authorized by ((a bona fide)) the police, sheriff, or firefighter organization or police, sheriff, or fire department it is representing.  ((A proper)) Authorization ((shall)) must be in writing and signed by two authorized officials of the organization or department ((and shall)).  The written authorization must be ((filed with the secretary)) retained in accordance with RCW 19.09.200.

      (10) ((A person)) An entity may not, in conducting any solicitation, use the name of a federally chartered or nationally recognized  military veterans' service organization as determined by the United States veterans' administration unless authorized in writing by the highest ranking official of that organization in this state. The written authorization must be retained in accordance with RCW 19.09.200.

      (11) ((A charitable organization shall)) Entities must comply with all local governmental regulations that apply to soliciting for or on behalf of charitable organizations.

      (12) ((An entity soliciting contributions for a charitable purpose shall not include in any solicitation, or in any advertising material for a solicitation, or in any promotional plan for a solicitation, any statement that is false, misleading, or deceptive.  All solicitations, advertising material, and promotional plans must fully and fairly disclose the identity of the entity on whose behalf the solicitation is made.)) Any entity required to register under this chapter must not engage in any solicitation for contributions unless it complies with all provisions of this chapter.

      (13) Solicitations ((shall)) must not be conducted by a charitable organization or commercial fund-raiser that has, or if a corporation, its officers, directors, or principals have, been convicted of a crime involving solicitations for or on behalf of a charitable organization in this state, the United States, or any other state or foreign country within the past ten years or has been subject to any permanent injunction or administrative order or judgment under RCW 19.86.080 or 19.86.090, involving a violation or violations of RCW 19.86.020, within the past ten years, or of restraining a false or misleading promotional plan involving solicitations for charitable organizations.

      (14) ((No charitable organization or commercial fund-raiser)) Any entity subject to this chapter ((may)) must not use or exploit the fact of registration under this chapter ((so as)) to lead the public to believe that registration constitutes an endorsement or approval by the state, but the use of the following is not deemed prohibited:  "Currently registered with the Washington state secretary of state as required by law.  Registration number . . . ."

      (15) ((No entity may engage in any solicitation for contributions for or on behalf of any charitable organization or commercial fund- raiser unless the charitable organization or commercial fund-raiser is currently registered with the secretary.
      (16) No charitable organization or commercial fund-raiser may engage in any solicitation for contributions unless it complies with all provisions of this chapter.
      (17))) Any entity soliciting contributions for a charitable purpose must not include in any solicitation, or in any advertising material for a solicitation, or in any promotional plan for a solicitation, any statement that is false, misleading, or deceptive.  All solicitations, advertising materials, and promotional plans must fully and fairly disclose the identity of the entity on whose behalf the solicitation is made.
      (16) No entity may place a telephone call to a donor or potential donor for the purpose of ((charitable solicitation)) soliciting contributions for a charitable purpose, before eight o'clock a.m. or after nine o'clock p.m. pacific time.

      (((18))) (17) No entity may, when contacting a donor or potential donor for the purpose of ((charitable solicitation)) soliciting contributions for a charitable purpose, engage in any conduct the natural consequence of which is to harass, intimidate, or torment any person in connection with the contact.

(18) Any entity that solicits contributions may not collect or attempt to collect contributions in person or by courier unless:
      (a) The contributions are noncash items such as contributions of tangible personal property; or
      (b) The solicitations are made in person and the collections, or attempts to collect, are made at the time of the solicitations; or
      (c) The contributor has agreed to purchase goods or items in connection with the solicitation and the collection or attempt to collect is made at the time of delivery of the goods or items.

      (19) Failure to comply with subsections (1) through (18) of this section is a violation of this chapter.

Sec. 15.  RCW 19.09.200 and 1993 c 471 s 11 are each amended to read as follows:

      (1) ((Charitable organizations and commercial fund-raisers shall)) All entities required to register pursuant to this chapter must maintain accurate, current, and readily available books and records at their usual business locations until at least three years have elapsed following the effective period to which they relate.  The books and records must contain, at a minimum, documentation supporting the information contained in the solicitation report and written authorization or authorizations required in RCW 19.09.100.

      (2) All contracts between commercial fund-raisers and charitable organizations ((shall)) must be in writing, and true and correct copies of such contracts or records thereof ((shall)) must be kept on file in the various offices of the charitable organization and the commercial fund-raiser for a three-year period.  Such records and contracts shall be available for inspection and examination by the secretary of state, attorney general, or by the county prosecuting attorney.  A copy of such contract or record ((shall)) must be submitted by the charitable organization or commercial fund-raiser, within ten days, following receipt of a written demand ((therefor)) from the secretary of state, attorney general, or county prosecutor.

Sec. 16.  RCW 19.09.210 and 2007 c 471 s 9 are each amended to read as follows:

      Upon the request of the secretary of state, attorney general, or the county prosecutor, ((a charitable organization or commercial fund- raiser shall)) any entity subject to this chapter must submit a financial statement and all requested records containing, but not limited to, the following information:

      (1) The gross amount of the contributions pledged and the gross amount collected.

      (2) The amount thereof, given or to be given to charitable purposes represented together with details as to the manner of distribution as may be required.

      (3) The aggregate amount paid and to be paid for the expenses of such solicitation.

      (4) The amounts paid to and to be paid to commercial fund-raisers or charitable organizations.

      (5) Copies of any annual or periodic reports furnished by the charitable organization or commercial fund-raiser of its activities during or for the same ((fiscal)) accounting period.

Sec. 17.  RCW 19.09.230 and 1994 c 287 s 3 are each amended to read as follows:

      No ((charitable organization, commercial fund-raiser, or other)) entity subject to this chapter may ((knowingly)):
      (1) Use ((the)) an identical or deceptively similar name, symbol, statement, or emblem so closely related or similar that its use would confuse or mislead the public, of any other entity for the purpose of soliciting contributions from persons in this state without the written consent of such other entity.  ((If the official name or the "doing business name" being registered is the same or deceptively similar as that of another entity, the secretary may request that a copy of the written consent from that entity be filed with the registration.  Such consent may be deemed to have been given by anyone who is a director, trustee, or other authorized officer of that entity.  A copy of the written consent must be kept on file by the charitable organization or commercial fund-raiser and made available to the secretary, attorney general, or county prosecutor upon demand.  A person)) Written consent may be deemed to have been given by anyone who is a director, trustee, or other authorized officer of that entity.
      (2) A copy of the written consent must be retained on file by the charitable organization or commercial fund-raiser and made available to the secretary, attorney general, or county prosecutor upon demand.  The secretary may revoke or deny an application for registration that violates this section.
      (3) An entity may be deemed to have used the name of another ((person)) entity for the purpose of soliciting contributions if such latter ((person's)) entity's name is listed on any stationery, advertisement, brochure, or correspondence of the ((charitable organization or person)) entity or if such name is listed or represented to anyone who has contributed to, sponsored, or endorsed the ((charitable organization or person)) entity, or its ((or his)) activities.

      ((The secretary may revoke or deny any application for registration that violates this section.)) This section does not apply to a foundation or other charitable organization that is organized, operated, or controlled by or in connection with a registered public charity, including any governmental agency or unit, from which it derives its name.

Sec. 18.  RCW 19.09.271 and 1993 c 471 s 8 are each amended to read as follows:

      (1) If the secretary or attorney general determines that any entity is soliciting in this state, directly or indirectly, by any means, and has not registered with the secretary as required by this chapter, the secretary may notify the charitable organization or commercial fund- raiser of its registration requirements by postal or electronic means.
      (2) The secretary may notify the attorney general of any entity liable for late filing fees under subsection (1) of this section.
      (3) Any ((charitable organization or commercial fund-raiser)) entity who, after notification by the secretary, fails to properly register under this chapter is subject to a late filing fee in an amount to be established by rule by the end of the first business day following the issuance of the notice((, is liable for a late filing fee in an amount to be established by rule of the secretary)).  The late filing fee is in addition to any other filing fee provided by this chapter.

      (((2) The secretary shall notify the attorney general of any entity liable for late filing fees under subsection (1) of this section.)) (4) If the secretary or attorney general determines that any entity is soliciting in this state, directly or indirectly, by any means, and the entity has not registered with the secretary as required by this chapter, the secretary, after five days notice sent by postal or electronic means to the charitable organization or commercial fund- raiser, may publish a press release in newspapers or on the internet, a notice to the public regarding the entity's unregistered status.

Sec. 19.  RCW 19.09.275 and 2003 c 53 s 142 are each amended to read as follows:

      (1) Any ((person)) entity who knowingly violates any provision of this chapter or who knowingly gives false or incorrect information to the secretary, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not such statement or report is verified is guilty of a gross misdemeanor punishable under chapter 9A.20 RCW.

      (2) Any ((person)) entity who violates any provisions of this chapter or who gives false or incorrect information to the secretary, attorney general, or county prosecuting attorney in filing statements required by this chapter, whether or not such statement or report is verified, is guilty of a misdemeanor punishable under chapter 9A.20 RCW.

Sec. 20.  RCW 19.09.276 and 1994 c 287 s 4 are each amended to read as follows:

      The secretary may waive penalties that have been set by rule and assessed by the secretary due from a registered ((charitable organization)) entity previously in good standing that would otherwise be penalized.  ((A charitable organization)) An entity desiring to seek relief under this section must, within fifteen days of discovery of the missed filing or lapse by its ((corporate officials)) officers, directors, or other ((authorized officer of)) persons responsible for the missed filing or lapse, notify the secretary in writing.  The notification must include the name and mailing address of the organization, the organization's officer to whom correspondence should be sent, and a statement under oath by a responsible officer of the organization, setting forth the nature of the missed filing or lapse, the circumstances giving rise to the missed filing or lapse, and the relief sought.  Upon receipt of the notice, the secretary shall investigate the circumstances of the missed filing or lapse.  If the secretary is satisfied that sufficient exigent or mitigating circumstances exist, that the ((organization)) entity has demonstrated good faith and a reasonable attempt to comply with the applicable ((corporate)) charitable solicitation statute((s)) of this state, the secretary may issue an order allowing relief from the penalty.  If the secretary determines the request does not comply with the requirements for relief, the secretary shall deny the relief and state the reasons for the denial.  Notwithstanding chapter 34.05 RCW, a denial of relief by the secretary is not reviewable.

Sec. 21.  RCW 19.09.277 and 1993 c 471 s 20 are each amended to read as follows:

      If it appears to the attorney general that ((a person)) an entity has engaged or is about to engage in an act or practice constituting a violation of a provision of this chapter or a rule adopted or order issued under this chapter, the attorney general may, in the attorney general's discretion, issue an order directing the ((person)) entity to cease and desist from continuing the act or practice.  Reasonable notice of and opportunity for a hearing shall be given.  The attorney general may issue a temporary order pending the hearing, which shall remain in effect until ten days after the hearing is held and which shall become final if the ((person)) entity to whom the notice is addressed does not request a hearing within fifteen days after the receipt of the notice.

Sec. 22.  RCW 19.09.279 and 2002 c 74 s 3 are each amended to read as follows:

      (1) The secretary may assess against any ((person or organization who)) entity that violates this chapter, or any rule adopted under this chapter, a civil penalty of not more than one thousand dollars for each violation.

      (2) ((Such person or organization shall)) The entity must be afforded the opportunity for a hearing, upon request made to the secretary within thirty days after the date of issuance of the notice of assessment.  The hearing shall be conducted in accordance with chapter 34.05 RCW.

      (3) If any ((person)) entity fails to pay an assessment after it has become a final and unappealable order, or after the court has entered final judgment in favor of the state, the attorney general may recover the amount assessed by action in the appropriate superior court.  In such action, the validity and appropriateness of the final order imposing the penalty shall not be subject to review.

Sec. 23.  RCW 19.09.305 and 1993 c 471 s 16 are each amended to read as follows:

      When ((a person or an organization)) an entity registered under this chapter, or its president, treasurer, or comparable officers, cannot be found after reasonably diligent effort, the secretary of state ((shall)) must be an agent of such ((person or organization)) entity upon whom process may be served.  Service on the secretary ((shall)) must be made by delivering to the secretary or the secretary's designee duplicate copies of such process, and a filing fee to be established by rule of the secretary.  Thereupon, the secretary ((shall)) must immediately cause one of the copies ((thereof)) to be forwarded to the registrant at the most current address shown in the secretary's files.  Any service ((so had)) on the secretary ((shall)) must be returnable in not less than thirty days.

      Any fee under this section ((shall)) may be taxable as costs in the action.

      The secretary ((shall)) must maintain a record of all process served on the secretary under this section, and ((shall)) must record the date of service and the secretary's action ((with reference thereto)).

      Nothing in this section limits or affects the right to serve process required or permitted to be served on a registrant in any other manner now or hereafter permitted by law.

Sec. 24.  RCW 19.09.315 and 1993 c 471 s 17 are each amended to read as follows:

      (1) The secretary may establish, by rule, standard forms and procedures for the efficient administration of this chapter.

      (2) The secretary may provide by rule for the filing of a financial statement by registered entities.

      (3) The secretary may issue such publications, reports, or information from the records as may be useful to the solicited public and charitable organizations.  To defray the costs of any such publication, the secretary is authorized to charge a reasonable fee to cover the costs of preparing, printing, and distributing such publications, in accordance with RCW 43.07.130.

Sec. 25.  RCW 19.09.340 and 1983 c 265 s 12 are each amended to read as follows:

      (1) ((The commission by any person of an act or practice prohibited by this chapter is hereby declared to be an unfair act or practice or unfair method of competition in the conduct of trade or commerce for the purpose of application of the Consumer Protection Act, chapter 19.86 RCW.)) 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.  A violation of this chapter is not reasonable in relation to the development and preservation of business and is an unfair or deceptive act in trade or commerce and an unfair method of competition for the purpose of applying the consumer protection act, chapter 19.86 RCW.

      (2) The secretary may refer such evidence, as may be available, concerning violations of this chapter to the attorney general or the prosecuting attorney of the county wherein the alleged violation arose.  In addition to any other action they might commence, the attorney general or the county prosecuting attorney may bring an action in the name of the state, with or without such reference, against any ((person)) entity to restrain and prevent the doing of any act or practice prohibited by this chapter:  PROVIDED, That this chapter shall be considered in conjunction with chapters 9.04 and 19.86 RCW, as now or hereafter amended, and the powers and duties of the attorney general and the prosecuting attorney as they may appear in the aforementioned chapters, shall apply against all ((persons)) entities subject to this chapter.

Sec. 26.  RCW 19.09.355 and 2010 1st sp.s. c 29 s 15 are each amended to read as follows:

      Except as otherwise provided in this chapter, all fees and other moneys received by the secretary of state under this chapter ((shall)) must be transmitted to the state treasurer for deposit in the state general fund.

Sec. 27.  RCW 19.09.400 and 1993 c 471 s 18 are each amended to read as follows:

      The attorney general, in the attorney general's discretion, may:

      (1) Annually, or more frequently, make such public or private investigations within or without this state as the attorney general deems necessary to determine whether any registration should be granted, denied, revoked, or suspended, or whether any ((person)) entity has violated or is about to violate a provision of this chapter or any rule adopted or order issued under this chapter, or to aid in the enforcement of this chapter or in the prescribing of rules and forms under this chapter; and

      (2) Publish information concerning a violation of this chapter or a rule adopted or order issued under this chapter.

Sec. 28.  RCW 19.09.430 and 1993 c 471 s 22 are each amended to read as follows:

      The administrative procedure act, chapter 34.05 RCW, ((shall)) wherever applicable governs the rights, remedies, and procedures respecting the administration of this chapter.

NEW SECTION.  Sec. 29.  The following acts or parts of acts are each repealed:

      (1) RCW 19.09.076 (Charitable organizations‑-Application for registration‑-Exemptions‑-Soliciting contributions) and 2007 c 471 s 4, 1994 c 287 s 1, 1993 c 471 s 4, & 1986 c 230 s 5;

      (2) RCW 19.09.190 (Commercial fund-raisers‑-Surety bond) and 1993 c 471 s 10, 1986 c 230 s 16, 1983 c 265 s 16, 1982 c 227 s 8, 1977 ex.s. c 222 s 9, & 1973 1st ex.s. c 13 s 19;

      (3) RCW 19.09.240 (Using similar name, symbol, emblem, or statement) and 1993 c 471 s 14, 1986 c 230 s 15, & 1973 1st ex.s. c 13 s 24;

      (4) RCW 19.09.500 (Charitable organizations‑-Financial reports and information) and 2007 c 471 s 11; and

      (5) RCW 19.09.540 (Rules‑-Tiered independent financial reporting) and 2007 c 471 s 15.

NEW SECTION.  Sec. 30.  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."

On page 1, line 1 of the title, after "solicitations;" strike the remainder of the title and insert "amending RCW 19.09.010, 19.09.020, 19.09.062, 19.09.065, 19.09.075, 19.09.079, 19.09.085, 19.09.097, 19.09.200, 19.09.210, 19.09.230, 19.09.271, 19.09.275, 19.09.276, 19.09.277, 19.09.279, 19.09.305, 19.09.315, 19.09.340, 19.09.355, 19.09.400, and 19.09.430; reenacting and amending RCW 19.09.100; adding new sections to chapter 19.09 RCW; repealing RCW 19.09.076, 19.09.190, 19.09.240, 19.09.500, and 19.09.540; and prescribing penalties."

 

and the same is herewith transmitted.

Brad Hendrickson, Deputy, Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1485 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representatives Rodne and Pedersen spoke in favor of the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1485, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1485, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 96; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Representatives Ahern, Alexander, Anderson, Angel, Appleton, Armstrong, Asay, Bailey, Billig, Blake, Buys, Carlyle, Chandler, Clibborn, Cody, Condotta, Crouse, Dahlquist, Dammeier, Darneille, DeBolt, Dickerson, Dunshee, Eddy, Fagan, Finn, Fitzgibbon, Frockt, Goodman, Green, Haler, Hargrove, Harris, Hasegawa, Hinkle, Hope, Hudgins, Hunt, Hunter, Hurst, Jinkins, Johnson, Kagi, Kelley, Kenney, Kirby, Klippert, Kretz, Kristiansen, Ladenburg, Liias, Lytton, Maxwell, McCoy, McCune, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Overstreet, Parker, Pearson, Pedersen, Pettigrew, Probst, Reykdal, Rivers, Roberts, Rodne, Rolfes, Ross, Ryu, Santos, Schmick, Seaquist, Sells, Shea, Short, Smith, Springer, Stanford, Sullivan, Takko, Taylor, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick, Wilcox, Zeiger and Mr. Speaker.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1485, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

April 7, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1493 with the following amendment:

0) 

                Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1.  A new section is added to chapter 18.130 RCW to read as follows:

      (1) A disciplining authority shall provide a person or entity making a complaint or report under RCW 18.130.080 with a reasonable opportunity to supplement or amend the contents of the complaint or report.  The license holder must be provided an opportunity to respond to any supplemental or amended complaint or report.  The disciplining authority shall promptly respond to inquiries made by the license holder or the person or entity making a complaint or report regarding the status of the complaint or report.

      (2)(a) Pursuant to chapter 42.56 RCW, following completion of an investigation or closure of a report or complaint, the disciplining authority shall, upon request, provide the license holder or the person or entity making the complaint or report with a copy of the file relating to the complaint or report, including, but not limited to, any response submitted by the license holder under RCW 18.130.095(1).

      (b) The disciplining authority may not disclose documents in the file that:

      (i) Contain confidential or privileged information regarding a patient other than the person making the complaint or report; or

      (ii) Contain information exempt from public inspection and copying under chapter 42.56 RCW.

      (c) The exemptions in (b) of this subsection are inapplicable to the extent that the relevant information can be deleted from the documents in question.

      (d) The disciplining authority may impose a reasonable charge for copying the file consistent with the charges allowed for copying public records under RCW 42.56.120.

      (3)(a) Prior to any final decision on any disciplinary proceeding before a disciplining authority, the disciplining authority shall provide the person submitting the complaint or report or his or her representative, if any, an opportunity to be heard through an oral or written impact statement about the effect of the person's injury on the person and his or her family and on a recommended sanction.

      (b) If the license holder is not present at the disciplinary proceeding, the disciplining authority shall transmit the impact statement to the license holder, who shall certify to the disciplining authority that he or she has received it.

      (c) For purposes of this subsection, representatives of the person submitting the complaint or report include his or her family members and such other affected parties as may be designated by the disciplining authority upon request.

      (4) A disciplining authority shall inform, in writing, the license holder and person or entity submitting the complaint or report of the final disposition of the complaint or report.

      (5)(a) If the disciplining authority closes a complaint or report prior to issuing a statement of charges under RCW 18.130.090 or a statement of allegations under RCW 18.130.172, the person or entity submitting the report may, within thirty days of receiving notice under subsection (4) of this section, request the disciplining authority to reconsider the closure of the complaint or report on the basis of new information relating to the original complaint or report.  A request for reconsideration made under this subsection may only be brought in relation to the original complaint and may only be brought one time.

      (b) The disciplining authority shall, within thirty days of receiving the request for reconsideration, notify the license holder of the request and the new information providing the basis therefor.  The license holder has thirty days to provide a response.  The disciplining authority shall notify the person or entity and the license holder in writing of its final decision on the request for reconsideration, including an explanation of the reasoning behind the decision."

On page 1, line 2 of the title, after "process;" strike the remainder of the title and insert "and adding a new section to chapter 18.130 RCW."

 

and the same is herewith transmitted.

Thomas Hoeman , Secretary

 

SENATE AMENDMENT TO HOUSE BILL

 

There being no objection, the House concurred in the Senate amendment to SUBSTITUTE HOUSE BILL NO. 1493 and advanced the bill as amended by the Senate to final passage.

 

FINAL PASSAGE OF HOUSE BILL

AS SENATE AMENDED

 

      Representative Pedersen spoke in favor of the passage of the bill.

 

      Representative Schmick spoke against the passage of the bill.

 

The Speaker (Representative Moeller presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1493, as amended by the Senate.

 

ROLL CALL

 

      The Clerk called the roll on the final passage of Substitute House Bill No. 1493, as amended by the Senate, and the bill passed the House by the following vote:  Yeas, 61; Nays, 35; Absent, 0; Excused, 1.

      Voting yea: Representatives Anderson, Appleton, Billig, Blake, Carlyle, Chandler, Clibborn, Cody, Darneille, Dickerson, Dunshee, Eddy, Finn, Fitzgibbon, Frockt, Goodman, Green, Hasegawa, Hudgins, Hunt, Hunter, Jinkins, Kagi, Kelley, Kenney, Kirby, Ladenburg, Liias, Lytton, Maxwell, McCoy, Miloscia, Moeller, Morris, Moscoso, Nealey, Orcutt, Ormsby, Orwall, Pedersen, Pettigrew, Probst, Reykdal, Roberts, Rodne, Rolfes, Ryu, Santos, Seaquist, Sells, Smith, Springer, Stanford, Sullivan, Takko, Tharinger, Upthegrove, Van De Wege, Walsh, Warnick and Mr. Speaker.

      Voting nay: Representatives Ahern, Alexander, Angel, Armstrong, Asay, Bailey, Buys, Condotta, Crouse, Dahlquist, Dammeier, DeBolt, Fagan, Haler, Hargrove, Harris, Hinkle, Hope, Hurst, Johnson, Klippert, Kretz, Kristiansen, McCune, Overstreet, Parker, Pearson, Rivers, Ross, Schmick, Shea, Short, Taylor, Wilcox and Zeiger.

      Excused: Representative Haigh.

 

SUBSTITUTE HOUSE BILL NO. 1493, as amended by the Senate, having received the necessary constitutional majority, was declared passed.

 

MESSAGE FROM THE SENATE

March 30, 2011

Mr. Speaker:

 

The Senate has passed SUBSTITUTE HOUSE BILL NO. 1502 with the following amendment:

0) 

      On page 7, after line 10, insert the following:

"Sec. 9.  RCW 35.63.161 and 2004 c 210 s 1 are each amended to read as follows:

(1) After June 10, 2004, a city may designate a new manufactured housing community as a nonconforming use, but may not order the removal or phased elimination of an existing manufactured housing community because of its status as a nonconforming use.

(2) A city may not prohibit the entry or require the removal of a manufactured/mobile home, park model, or recreational vehicle authorized in a manufactured housing community under chapter 59.20 RCW on the basis of the community's status as a nonconforming use.

Sec. 10.  RCW 35A.63.146 and 2004 c 210 s 2 are each amended to read as follows:

(1) After June 10, 2004, a code city may designate a manufactured housing community as a nonconforming use, but may not order the removal or phased elimination of an existing manufactured housing community because of its status as a nonconforming use.

(2) A code city may not prohibit the entry or require the removal of a manufactured/mobile home, park model, or recreational vehicle authorized in a manufactured housing community under chapter 59.20 RCW on the basis of the community's status as a nonconforming use.

Sec. 11.  RCW 36.70.493 and 2004 c 210 s 3 are each amended to read as follows:

(1) After June 10, 2004, a county may designate a manufactured housing community as a nonconforming use, but may not order the removal or phased elimination of an existing manufactured housing community because of its status as a nonconforming use.