AN ACT
Relating to insurance fraud; amending RCW 48.01.030, 48.18.460, 48.30.210,
48.30.220, 48.50.010, 48.50.020, 48.50.030, 48.50.040, 48.50.075, 48.80.020,
2.48.180, 9.12.010, 9A.72.010, 9A.72.030, 9A.76.020, 9A.82.010, and 18.130.190;
reenacting and amending RCW 9.94A.320; adding a new section to chapter 42.17
RCW; adding a new section to chapter 9A.68 RCW; adding a new section to chapter
9A.76 RCW; adding a new chapter to Title 48 RCW; creating a new section;
repealing RCW 9.91.090, 9A.82.903, 48.50.060, 48.50.080, and 49.44.070;
prescribing penalties; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. The
legislature finds that the business of insurance is one affected by the public
interest, requiring that all persons be actuated by good faith, abstain from
deception, and practice honesty and equity in all insurance matters. The
payment of kickbacks, bribes, or rebates for referrals to service providers, as
has been occurring with increasing regularity in this state, results in
inflated or fraudulent insurance claims, results in greater insurance costs for
all citizens, and is contrary to the public interest. In particular, the process
whereby "cappers" buy and sell insurance claims without the controls
of professional licensing and discipline creates a fertile ground for illegal
activity and has, in this state, resulted in frauds committed against injured
claimants, insurance companies, and the public. Operations that engage in this
practice have some or all of the following characteristics: Cappers, acting
under an agreement or understanding that they will receive a pecuniary benefit,
refer claimants with real or imaginary claims, injuries, or property damage to
service providers. This sets off a chain of events that corrupts both the
provision of services and casualty or property insurance for all citizens.
This chain of events includes false claims for services through the use of
false estimates of repair; false prescriptions of care or rehabilitative
therapy; services that either do not occur or are provided by persons
unqualified to provide the services; submission of false claims; submission of
and demands for fraudulent costs, lost wages, pain and suffering, and the like;
and other devices meant to result in false claims under casualty or property
insurance policies or contracts, whether insured or self-insured, and either
directly or through subrogation.
The
legislature finds that combatting these practices requires laws carefully
fashioned to identify practices that mimic customary business practices. The
legislature does not intend this law to be used against medical and other
business referral practices that are otherwise legal, customary, and unrelated
to the furtherance of some or all of the corrupt practices identified in this
chapter.
NEW
SECTION. Sec. 2. The
definitions set forth in this section apply throughout this chapter unless the
context clearly indicates otherwise.
(1)
"Casualty or property insurance" includes both the insurance under
which a claim is filed and insurance that receives a claim through subrogation,
and means insurance as defined in RCW 48.11.040 and 48.11.070 and includes
self-insurance arrangements.
(2)
"Claimant" means a person who has or is believed by an actor to have
an insurance claim.
(3)
"Group-buying arrangement" means an arrangement made by a membership
organization having one hundred or more members in which the organization asks
for or receives valuable consideration in exchange for referring its members to
a service provider; the consideration asked for or received will be or is used
to benefit the entire organization, not just one or more individuals in
positions of power or influence in the organization; and reasonable efforts are
made to disclose to affected members of the organization the nature of the
referral relationship, including the nature, extent, amount, and use of the
consideration.
(4)
"Health care services" means a service provided to a claimant for
treatment of physical or mental illness or injury arising in whole or
substantial part from trauma.
(5)
"Insurance claim" means a claim for payment, benefits, or damages
under a contract, plan, or policy of casualty or property insurance.
(6)
"Legal provider" means an active member in good standing of the
Washington state bar association, and any other person authorized by the
Washington state supreme court to engage in full or limited practice of law.
(7)
"Service provider" means a person who directly or indirectly
provides, advertises, or otherwise claims to provide services.
(8)
"Services" means health care services, motor vehicle body or other
motor vehicle repair, and preparing, processing, presenting, or negotiating an
insurance claim.
(9)
"Trauma" means a physical injury or wound caused by external force or
violence.
NEW
SECTION. Sec. 3. (1) It is
unlawful for a person:
(a)
Knowing that the payment is for the referral of a claimant to a service
provider, either to accept payment from a service provider or, being a service
provider, to pay another; or
(b) To
provide or claim or represent to have provided services to a claimant, knowing
the claimant was referred in violation of (a) of this subsection.
(2) It
is unlawful for a service provider to engage in a regular practice of waiving,
rebating, giving, paying, or offering to waive, rebate, give, or pay all or any
part of a claimant's casualty or property insurance deductible.
NEW
SECTION. Sec. 4. In a
proceeding under this chapter, it is a defense if proven by the defendant by a
preponderance of the evidence that, at the time of the offense:
(1)
The conduct alleged was authorized by the Rules of Professional Conduct or the
Admission to Practice Rules for lawyers as adopted by the state supreme court,
Washington business and professions licensing statutes, or rules adopted by the
secretary of health or the director of licensing;
(2)
The payment was an incidental nonmonetary gift or gratuity, or was purely
social in nature;
(3)
The conduct alleged was an exercise of a group-buying arrangement;
(4)
The conduct alleged was a legal provider paying a service provider's bills from
the proceeds of an insurance claim that included the bills;
(5)
The conduct alleged was a legal provider paying for services of an expert
witness, including reports, consultation, and testimony; or
(6)
The conduct alleged was a service provider's purchase of advertising from an
unrelated business that provides referrals from advertising for groups of ten
or more service providers that are not related to the advertising business and
not related to each other.
NEW
SECTION. Sec. 5. A
violation of section 3 of this act constitutes trafficking in insurance
claims. A single violation is a gross misdemeanor. Each subsequent violation,
whether alleged in the same or in subsequent prosecutions, is a class C felony.
NEW
SECTION. Sec. 6.
Independent of authority granted to the attorney general, the prosecuting
attorney may petition the superior court for an injunction against a person who
has violated this chapter. Remedies in an injunctive action brought by a
prosecuting attorney are limited to an order enjoining, restraining, or
preventing the doing of any act or practice that constitutes a violation of
this chapter and imposing a civil penalty of up to five thousand dollars for
each violation. The prevailing party in the action may, in the discretion of
the court, recover its reasonable investigative costs and the costs of the
action including a reasonable attorney's fee. The degree of proof required in
an action brought under this section is a preponderance of the evidence. An
action under this section must be brought within three years after the
violation of this chapter occurred.
NEW
SECTION. Sec. 7. Whenever
a service provider or a person licensed by the state in a business or
profession is convicted, enjoined, or found liable for damages or a civil
penalty or other equitable relief under section 6 of this act, the attorney
general or the prosecuting attorney shall provide written notification of the
judgment to the appropriate regulatory or disciplinary body or agency.
NEW
SECTION. Sec. 8. A
violation of this chapter is cause for discipline and constitutes
unprofessional conduct that could result in any regulatory penalty provided by
law, including refusal, revocation, or suspension of a business or professional
license, or right or admission to practice. Conduct that constitutes a
violation of this chapter is unprofessional conduct in violation of RCW
18.130.180.
NEW
SECTION. Sec. 9. Each
insurer licensed to write direct insurance in this state shall institute and
maintain an insurance antifraud plan. An insurer licensed on the effective
date of this act shall file its antifraud plan with the insurance commissioner
no later than December 31, 1995. An insurer licensed after the effective date
of this act shall file its antifraud plan within six months of licensure. An
insurer shall file any change to the antifraud plan with the insurance
commissioner within thirty days after the plan has been modified.
NEW
SECTION. Sec. 10. An
insurer's antifraud plan must establish specific procedures to:
(1)
Prevent insurance fraud, including internal fraud involving employees or
company representatives, fraud resulting from misrepresentation on applications
for insurance coverage, and claims fraud;
(2)
Review claims in order to detect evidence of possible insurance fraud and to
investigate claims where fraud is suspected;
(3)
Report fraud to appropriate law enforcement agencies and cooperate with those
agencies in their prosecution of fraud cases;
(4)
Undertake civil actions against persons who have engaged in fraudulent
activities;
(5)
Train company employees and agents in the detection and prevention of fraud.
NEW
SECTION. Sec. 11. If after
review of an insurer's antifraud plan, the commissioner finds that the plan
does not comply with section 10 of this act, the commissioner may disapprove
the antifraud plan. Notice of disapproval must include a statement of the
specific reasons for disapproval. The insurer shall refile a plan disapproved
by the commissioner within sixty days of the date of the notice of
disapproval. The commissioner may audit insurers to ensure compliance with
antifraud plans.
NEW
SECTION. Sec. 12. Each
insurer shall annually provide to the insurance commissioner a summary report
on actions taken under its antifraud plan to prevent and combat insurance
fraud. The report must also include, but not be limited to, measures taken to
protect and ensure the integrity of electronic data-processing-generated data
and manually compiled data, statistical data on the amount of resources
committed to combating fraud, and the amount of fraud identified and recovered
during the reporting period. The antifraud plans and summary of the insurer's
antifraud activities are not public records and are exempt from chapter 42.17
RCW, are proprietary, are not subject to public examination, and are not
discoverable or admissible in civil litigation.
NEW
SECTION. Sec. 13. An
insurer that fails to file a timely antifraud plan or who does not make a good
faith attempt to file an antifraud plan that complies with section 10 of this
act, is subject to the penalty provisions of RCW 48.01.080, but no penalty may
be imposed for the first filing made by an insurer under this chapter. An
insurer that fails to follow the antifraud plan is subject to a civil penalty
not to exceed ten thousand dollars for each violation, at the discretion of the
commissioner after consideration of all relevant factors, including the
willfulness of the violation.
NEW
SECTION. Sec. 14. It is the
duty of all peace officers, law enforcement officers, and law enforcement
agencies within this state to investigate, enforce, and prosecute all
violations of this chapter.
NEW
SECTION. Sec. 15. A new
section is added to chapter 42.17 RCW to read as follows:
Information
provided under sections 9 through 12 of this act are exempt from disclosure
under this chapter.
Sec.
16. RCW
48.01.030 and 1947 c 79 s .01.03 are each amended to read as follows:
The
business of insurance is one affected by the public interest, requiring that
all persons be actuated by good faith, abstain from deception, and practice
honesty and equity in all insurance matters. Upon the insurer, the insured, their
providers, and their representatives rests the duty of preserving inviolate
the integrity of insurance.
Sec.
17. RCW
48.18.460 and 1949 c 190 s 26 are each amended to read as follows:
An insurer
shall furnish, upon ((written)) request of any person claiming to have a
loss under any insurance contract, forms of proof of loss for completion by
such person. But such insurer shall not, by reason of the requirement so to
furnish forms, have any responsibility for or with reference to the completion
of such proof or the manner of any such completion or attempted completion. If
a person makes a claim under a policy of insurance, the insurer may require
that the person be examined under an oath administered by a person authorized
by state or federal law to administer oaths.
Sec.
18. RCW
48.30.210 and 1990 1st ex.s. c 3 s 10 are each amended to read as follows:
((Any
agent, solicitor, broker, examining physician or other)) A person
who knowingly makes a false or ((fraudulent)) misleading
statement or ((representation)) impersonation, or who willfully fails
to reveal a material fact, in or relative to an application for insurance
((in)) to an insurer ((transacting insurance under the
provisions of this code, shall be)), is guilty of a gross
misdemeanor, and the license of any such ((agent, solicitor, or broker who
makes such a statement or representation)) person may be revoked.
Sec.
19. RCW
48.30.220 and 1965 ex.s. c 70 s 25 are each amended to read as follows:
Any
person, who, with intent to defraud or prejudice the insurer thereof, ((wilfully))
burns or in any manner injures, destroys, secretes, abandons, or disposes of
any property which is insured at the time against loss or damage by fire,
theft, ((or)) embezzlement, or ((by)) any other casualty, whether
the same be the property of or in the possession of such person or any other
person, under ((such)) circumstances not making the offense arson in
the first degree, is guilty of a class C felony.
Sec.
20. RCW
48.50.010 and 1979 ex.s. c 80 s 1 are each amended to read as follows:
This
chapter shall be known and may be cited as the ((Arson)) Insurance
Fraud Reporting Immunity Act.
Sec.
21. RCW
48.50.020 and 1986 c 266 s 77 are each amended to read as follows:
As
used in this chapter the following terms have the meanings indicated unless the
context clearly requires otherwise.
(1)
"Authorized agency" means a public agency or its official
representative having legal authority to investigate criminal activity or
the cause of a fire ((and)) or to initiate criminal proceedings
((or further investigations if the cause was not accidental)), including
the following persons and agencies:
(a)
The ((director)) department of community, trade, and economic
development and the director of fire protection;
(b)
The prosecuting attorney of the county where the ((fire)) criminal
activity occurred;
(c) State,
county, and local law enforcement agencies;
(d)
The state attorney general((, when engaged in a prosecution which is or may
be connected with the fire));
(((d)))
(e) The Federal Bureau of Investigation, or any other federal law
enforcement agency; ((and
(e))) (f)
The United States attorney's office ((when authorized or charged with investigation
or prosecution concerning the fire)); and
(g)
The office of the insurance commissioner.
(2)
"Insurer" means any insurer, as defined in RCW 48.01.050((, which
insures against loss by fire, and includes insurers under the Washington
F.A.I.R. plan)) and any self-insurer.
(3)
"Relevant information" means information having any tendency to make
the existence of any fact that is of consequence to the investigation or
determination of criminal activity or the cause of any fire more
probable or less probable than it would be without the information.
Sec.
22. RCW
48.50.030 and 1979 ex.s. c 80 s 3 are each amended to read as follows:
(1)
Any authorized agency may request, in writing, that an insurer release to the
agency any or all relevant information or evidence which the insurer may have
in its possession relating to ((a particular fire loss)) criminal
activity, if such information or evidence is deemed important by the agency
in its discretion.
(2)
An insurer who has reason to believe that a person participated or is
participating in criminal activity relating to a contract of insurance may
report relevant information to an authorized agency.
(3)
The information ((requested)) provided to an authorized agency under
this section may include, without limitation:
(a)
Pertinent insurance policy information relating to a ((fire loss)) claim
under investigation and any application for such a policy;
(b)
Policy premium payment records which are available;
(c)
History of previous claims ((made by the insured)) in which the
person was involved; and
(d)
Material relating to the investigation of the loss, including statements of any
person, proof of loss, and any other evidence found in the investigation.
(((2)
An)) (4) The insurer receiving a request under subsection (1) of
this section shall furnish all relevant information requested to the
agency within a reasonable time, orally or in writing((, all relevant
information requested)).
Sec.
23. RCW
48.50.040 and 1986 c 266 s 91 are each amended to read as follows:
(1)
When an insurer has reason to believe that a fire loss reported to the insurer
may be of other than accidental cause, the insurer shall notify the ((director))
department of community, trade, and economic development, through
the director of fire protection, in the manner prescribed under RCW 48.05.320
concerning the circumstances of the fire loss, including any and all relevant
material developed from the insurer's inquiry into the fire loss.
(2)
Notification of the ((director)) department of community, trade,
and economic development, through the director of fire protection, under
subsection (1) of this section does not relieve the insurer of the duty to
respond to a request for information from any other authorized agency and
does not bar an insurer from other reporting under RCW 48.50.030(2).
Sec.
24. RCW
48.50.075 and 1981 c 320 s 2 are each amended to read as follows:
In
denying a claim ((resulting from a fire)), an insurer who relies upon a
written opinion from an authorized agency specifically enumerated in (((a)
through (e) of)) RCW 48.50.020(1) (a) through (g) that ((the fire
was caused by arson)) criminal activity that is related to that claim is
being investigated, or a crime has been charged, and that the ((insured
was responsible for the fire, shall not be)) claimant is a target of the
investigation or has been charged with a crime, is not liable for bad faith
or other noncontractual theory of damages as a result of this reliance.
Immunity
under this section shall exist only so long as the incident for which the ((insured))
claimant may be responsible is under active investigation or
prosecution, or the authorized agency states its position that the claim includes
or is a result of ((arson for)) criminal activity in which
the ((insured)) claimant was ((responsible)) a
participant.
Sec.
25. RCW
48.80.020 and 1986 c 243 s 2 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1)
"Claim" means any attempt to cause a health care payer to make a
health care payment.
(2)
"Deceptive" means presenting a claim to a health care payer that
contains a statement of fact or fails to reveal a material fact, leading the
health care payer to believe that the represented or suggested state of affairs
is other than it actually is. For the purposes of this chapter, the
determination of what constitutes a material fact is a question of law to be
resolved by the court.
(3)
"False" means wholly or partially untrue or deceptive.
(4)
"Health care payment" means a payment for health care services or the
right under a contract, certificate, or policy of insurance to have a payment
made by a health care payer for a specified health care service.
(5)
"Health care payer" means any insurance company authorized to provide
health insurance in this state, any health care service contractor authorized
under chapter 48.44 RCW, any health maintenance organization authorized under
chapter 48.46 RCW, any legal entity which is self-insured and providing health
care benefits to its employees, ((or)) and any insurer or
other person responsible for paying for health care services.
(6)
"Person" means an individual, corporation, partnership, association,
or other legal entity.
(7)
"Provider" means any person lawfully licensed or authorized to render
any health service.
Sec.
26. RCW
2.48.180 and 1989 c 117 s 13 are each amended to read as follows:
((Any
person who, not being an active member of the state bar, or who after he has
been disbarred or while suspended from membership in the state bar, as by this
chapter provided, shall))
(1)
As used in this section:
(a)
"Legal provider" means an active member in good standing of the state
bar, and any other person authorized by the Washington state supreme court to
engage in full or limited practice of law;
(b)
"Nonlawyer" means a person to whom the Washington supreme court has
granted a limited authorization to practice law but who practices law outside
that authorization, and a person who is not an active member in good standing
of the state bar, including persons who are disbarred or suspended from
membership;
(c)
"Ownership interest" means the right to control the affairs of a
business, or the right to share in the profits of a business, and includes a
loan to the business when the interest on the loan is based upon the income of
the business or the loan carries more than a commercially reasonable rate of
interest.
(2)
The following constitutes unlawful practice of law:
(a)
A nonlawyer practices law, or holds himself or herself
out as entitled to practice law((, shall, except as provided in RCW
19.154.100, be guilty of a misdemeanor: PROVIDED, HOWEVER, Nothing herein
contained shall be held to in any way affect the power of the courts to grant
injunctive relief or to punish as for contempt));
(b)
A legal provider holds an investment or ownership interest in a business
primarily engaged in the practice of law, knowing that a nonlawyer holds an
investment or ownership interest in the business;
(c)
A nonlawyer knowingly holds an investment or ownership interest in a business
primarily engaged in the practice of law;
(d)
A legal provider works for a business that is primarily engaged in the practice
of law, knowing that a nonlawyer holds an investment or ownership interest in
the business; or
(e)
A nonlawyer shares legal fees with a legal provider.
(3)
Unlawful practice of law is a crime. A single violation of this section is a
gross misdemeanor. Each subsequent violation, whether alleged in the same or
in subsequent prosecutions, is a class C felony.
(4)
Nothing contained in this section affects the power of the courts to grant
injunctive or other equitable relief or to punish as for contempt.
(5)
Whenever a legal provider or a person licensed by the state in a business or
profession is convicted, enjoined, or found liable for damages or a civil
penalty or other equitable relief under this section, the plaintiff's attorney
shall provide written notification of the judgment to the appropriate
regulatory or disciplinary body or agency.
(6)
A violation of this section is cause for discipline and constitutes
unprofessional conduct that could result in any regulatory penalty provided by
law, including refusal, revocation, or suspension of a business or professional
license, or right or admission to practice. Conduct that constitutes a
violation of this section is unprofessional conduct in violation of RCW
18.130.180.
(7)
In a proceeding under this section it is a defense if proven by the defendant
by a preponderance of the evidence that, at the time of the offense, the
conduct alleged was authorized by the Rules of Professional Conduct or the
Admission to Practice Rules, or Washington business and professions licensing
statutes or rules.
(8)
Independent of authority granted to the attorney general, the prosecuting
attorney may petition the superior court for an injunction against a person who
has violated this chapter. Remedies in an injunctive action brought by a
prosecuting attorney are limited to an order enjoining, restraining, or
preventing the doing of any act or practice that constitutes a violation of
this chapter and imposing a civil penalty of up to five thousand dollars for
each violation. The prevailing party in the action may, in the discretion of
the court, recover its reasonable investigative costs and the costs of the
action including a reasonable attorney's fee. The degree of proof required in
an action brought under this subsection is a preponderance of the evidence. An
action under this subsection must be brought within three years after the
violation of this chapter occurred.
Sec.
27. RCW
9.12.010 and 1915 c 165 s 1 are each amended to read as follows:
Every
person who ((shall)) brings on his or her own behalf, or
instigates, incites, or encourages another to bring, any
false suit at law or in equity in any court of this state, with intent thereby
to distress or harass a defendant ((therein; and every person, being an
attorney or counselor at law, who shall personally, or through the agency of
another, solicit employment as such attorney, in any suit pending or
prospective, or, with intent to obtain such employment shall, directly or
indirectly, loan any money or give or promise to give any money, property or
other consideration to the person from whom such employment is sought; and
every person who shall)) in the suit, or who serves or sends
any paper or document purporting to be or resembling a judicial process, that
is not in fact a judicial process ((shall be)), is guilty of
a misdemeanor; and in case the person offending is an attorney, he or she
may, in addition thereto be disbarred from practicing law within this state.
Sec.
28. RCW
9.94A.320 and 1994 sp.s. c 7 s 510, 1994 c 275 s 20, and 1994 c 53 s 2 are each
reenacted and amended to read as follows:
TABLE
2
CRIMES
INCLUDED WITHIN EACH SERIOUSNESS LEVEL
XVAggravated Murder 1 (RCW
10.95.020)
XIVMurder
1 (RCW 9A.32.030)
Homicide by abuse (RCW
9A.32.055)
XIIIMurder 2 (RCW 9A.32.050)
XIIAssault
1 (RCW 9A.36.011)
Assault of a Child 1 (RCW
9A.36.120)
XIRape
1 (RCW 9A.44.040)
Rape of a Child 1 (RCW
9A.44.073)
XKidnapping
1 (RCW 9A.40.020)
Rape
2 (RCW 9A.44.050)
Rape of a Child 2 (RCW
9A.44.076)
Child Molestation 1 (RCW
9A.44.083)
Damaging building, etc., by
explosion with threat to human being (RCW 70.74.280(1))
Over 18 and deliver heroin
or narcotic from Schedule I or II to someone under 18 (RCW 69.50.406)
Leading Organized Crime
(RCW 9A.82.060(1)(a))
IXAssault
of a Child 2 (RCW 9A.36.130)
Robbery
1 (RCW 9A.56.200)
Manslaughter 1 (RCW
9A.32.060)
Explosive devices
prohibited (RCW 70.74.180)
Indecent Liberties (with
forcible compulsion) (RCW 9A.44.100(1)(a))
Endangering life and
property by explosives with threat to human being (RCW 70.74.270)
Over 18 and deliver
narcotic from Schedule III, IV, or V or a nonnarcotic from Schedule I-V to
someone under 18 and 3 years junior (RCW 69.50.406)
Controlled Substance
Homicide (RCW 69.50.415)
Sexual
Exploitation (RCW 9.68A.040)
Inciting Criminal
Profiteering (RCW 9A.82.060(1)(b))
Vehicular Homicide, by
being under the influence of intoxicating liquor or any drug (RCW 46.61.520)
VIIIArson
1 (RCW 9A.48.020)
Promoting
Prostitution 1 (RCW 9A.88.070)
Selling for profit
(controlled or counterfeit) any controlled substance (RCW 69.50.410)
Manufacture, deliver, or
possess with intent to deliver heroin or cocaine (RCW 69.50.401(a)(1)(i))
Manufacture, deliver, or
possess with intent to deliver methamphetamine (RCW 69.50.401(a)(1)(ii))
Vehicular Homicide, by the
operation of any vehicle in a reckless manner (RCW 46.61.520)
VIIBurglary
1 (RCW 9A.52.020)
Vehicular
Homicide, by disregard for the safety of others (RCW 46.61.520)
Introducing Contraband 1
(RCW 9A.76.140)
Indecent Liberties (without
forcible compulsion) (RCW 9A.44.100(1) (b) and (c))
Child Molestation 2 (RCW
9A.44.086)
Dealing in depictions of
minor engaged in sexually explicit conduct (RCW 9.68A.050)
Sending,
bringing into state depictions of minor engaged in sexually explicit conduct
(RCW 9.68A.060)
Involving a minor in drug
dealing (RCW 69.50.401(f))
VIBribery
(RCW 9A.68.010)
Manslaughter
2 (RCW 9A.32.070)
Rape of a Child 3 (RCW
9A.44.079)
Intimidating a
Juror/Witness (RCW 9A.72.110, 9A.72.130)
Damaging building, etc., by
explosion with no threat to human being (RCW 70.74.280(2))
Endangering life and
property by explosives with no threat to human being (RCW 70.74.270)
Incest 1 (RCW 9A.64.020(1))
Manufacture, deliver, or
possess with intent to deliver narcotics from Schedule I or II (except heroin
or cocaine) (RCW 69.50.401(a)(1)(i))
Intimidating
a Judge (RCW 9A.72.160)
Bail Jumping with Murder 1
(RCW 9A.76.170(2)(a))
VCriminal
Mistreatment 1 (RCW 9A.42.020)
Theft
of a Firearm (RCW 9A.56.300)
Reckless
Endangerment 1 (RCW 9A.36.045)
Rape
3 (RCW 9A.44.060)
Sexual Misconduct with a
Minor 1 (RCW 9A.44.093)
Child Molestation 3 (RCW
9A.44.089)
Kidnapping 2 (RCW
9A.40.030)
Extortion 1 (RCW 9A.56.120)
Incest 2 (RCW 9A.64.020(2))
Perjury 1 (RCW 9A.72.020)
Extortionate Extension of
Credit (RCW 9A.82.020)
Advancing money or property
for extortionate extension of credit (RCW 9A.82.030)
Extortionate Means to
Collect Extensions of Credit (RCW 9A.82.040)
Rendering Criminal
Assistance 1 (RCW 9A.76.070)
Bail Jumping with class A
Felony (RCW 9A.76.170(2)(b))
Sexually Violating Human
Remains (RCW 9A.44.105)
Delivery of imitation
controlled substance by person eighteen or over to person under eighteen (RCW
69.52.030(2))
IVResidential
Burglary (RCW 9A.52.025)
Theft
of Livestock 1 (RCW 9A.56.080)
Robbery 2 (RCW 9A.56.210)
Assault 2 (RCW 9A.36.021)
Escape 1 (RCW 9A.76.110)
Arson 2 (RCW 9A.48.030)
Commercial Bribery
(section 29 of this act)
Bribing a Witness/Bribe
Received by Witness (RCW 9A.72.090, 9A.72.100)
Malicious Harassment (RCW
9A.36.080)
Threats to Bomb (RCW
9.61.160)
Willful Failure to Return
from Furlough (RCW 72.66.060)
Hit and Run C Injury Accident (RCW
46.52.020(4))
Vehicular Assault (RCW
46.61.522)
Manufacture, deliver, or
possess with intent to deliver narcotics from Schedule III, IV, or V or
nonnarcotics from Schedule I-V (except marijuana or methamphetamines) (RCW
69.50.401(a)(1)(ii) through (iv))
Influencing Outcome of
Sporting Event (RCW 9A.82.070)
Use
of Proceeds of Criminal Profiteering (RCW 9A.82.080 (1) and (2))
Knowingly Trafficking in
Stolen Property (RCW 9A.82.050(2))
IIICriminal
Mistreatment 2 (RCW 9A.42.030)
Extortion
2 (RCW 9A.56.130)
Unlawful Imprisonment (RCW
9A.40.040)
Assault 3 (RCW 9A.36.031)
Assault of a Child 3 (RCW
9A.36.140)
Custodial Assault (RCW
9A.36.100)
Unlawful possession of
firearm or pistol by felon (RCW 9.41.040)
Harassment (RCW 9A.46.020)
Promoting Prostitution 2
(RCW 9A.88.080)
Willful Failure to Return
from Work Release (RCW 72.65.070)
Burglary 2 (RCW 9A.52.030)
Introducing Contraband 2
(RCW 9A.76.150)
Communication with a Minor
for Immoral Purposes (RCW 9.68A.090)
Patronizing a Juvenile
Prostitute (RCW 9.68A.100)
Escape 2 (RCW 9A.76.120)
Perjury 2 (RCW 9A.72.030)
Bail Jumping with class B
or C Felony (RCW 9A.76.170(2)(c))
Intimidating a Public
Servant (RCW 9A.76.180)
Tampering with a Witness
(RCW 9A.72.120)
Manufacture, deliver, or
possess with intent to deliver marijuana (RCW 69.50.401(a)(1)(ii))
Delivery of a material in
lieu of a controlled substance (RCW 69.50.401(c))
Manufacture, distribute, or
possess with intent to distribute an imitation controlled substance (RCW
69.52.030(1))
Recklessly Trafficking
in Stolen Property (RCW 9A.82.050(1))
Theft of livestock 2 (RCW
9A.56.080)
Securities
Act violation (RCW 21.20.400)
IIUnlawful
Practice of Law (RCW 2.48.180)
Malicious
Mischief 1 (RCW 9A.48.070)
Possession
of Stolen Property 1 (RCW 9A.56.150)
Theft 1 (RCW 9A.56.030)
Trafficking in Insurance
Claims (section 3 of this act)
Unlicensed Practice of a
Profession or Business (RCW 18.130.190(7))
Health Care False Claims
(RCW 48.80.030)
Possession of controlled
substance that is either heroin or narcotics from Schedule I or II (RCW
69.50.401(d))
Possession of phencyclidine
(PCP) (RCW 69.50.401(d))
Create, deliver, or possess
a counterfeit controlled substance (RCW 69.50.401(b))
Computer
Trespass 1 (RCW 9A.52.110)
Escape from Community
Custody (RCW 72.09.310)
ITheft
2 (RCW 9A.56.040)
Possession
of Stolen Property 2 (RCW 9A.56.160)
Forgery (RCW 9A.60.020)
Taking Motor Vehicle
Without Permission (RCW 9A.56.070)
Vehicle Prowl 1 (RCW
9A.52.095)
Attempting to Elude a
Pursuing Police Vehicle (RCW 46.61.024)
Malicious Mischief 2 (RCW
9A.48.080)
Reckless Burning 1 (RCW
9A.48.040)
Unlawful Issuance of Checks
or Drafts (RCW 9A.56.060)
Unlawful Use of Food Stamps
(RCW 9.91.140 (2) and (3))
False Verification for
Welfare (RCW 74.08.055)
Forged Prescription (RCW
69.41.020)
Forged Prescription for a
Controlled Substance (RCW 69.50.403)
Possess Controlled
Substance that is a Narcotic from Schedule III, IV, or V or Non-narcotic from
Schedule I-V (except phencyclidine) (RCW 69.50.401(d))
NEW
SECTION. Sec. 29. A new
section is added to chapter 9A.68 RCW to read as follows:
(1)
For purposes of this section:
(a)
"Claimant" means a person who has or is believed by an actor to have
an insurance claim.
(b)
"Service provider" means a person who directly or indirectly
provides, advertises, or otherwise claims to provide services.
(c)
"Services" means health care services, motor vehicle body or other
motor vehicle repair, and preparing, processing, presenting, or negotiating an
insurance claim.
(d)
"Trusted person" means:
(i) An
agent, employee, or partner of another;
(ii)
An administrator, executor, conservator, guardian, receiver, or trustee of a
person or an estate, or any other person acting in a fiduciary capacity;
(iii)
An accountant, appraiser, attorney, physician, or other professional adviser;
(iv)
An officer or director of a corporation, or any other person who participates
in the affairs of a corporation, partnership, or unincorporated association; or
(v) An
arbitrator, mediator, or other purportedly disinterested adjudicator or
referee.
(2) A
person is guilty of commercial bribery if:
(a) He
or she offers, confers, or agrees to confer a pecuniary benefit directly or
indirectly upon a trusted person under a request, agreement, or understanding
that the trusted person will violate a duty of fidelity or trust arising from
his or her position as a trusted person;
(b)
Being a trusted person, he or she requests, accepts, or agrees to accept a
pecuniary benefit for himself, herself, or another under a request, agreement,
or understanding that he or she will violate a duty of fidelity or trust
arising from his or her position as a trusted person; or
(c)
Being an employee or agent of an insurer, he or she requests, accepts, or
agrees to accept a pecuniary benefit for himself or herself, or a person other
than the insurer, under a request, agreement, or understanding that he or she
will or a threat that he or she will not refer or induce claimants to have
services performed by a service provider.
(3) It
is not a defense to a prosecution under this section that the person sought to
be influenced was not qualified to act in the desired way, whether because the
person had not yet assumed his or her position, lacked authority, or for any
other reason.
(4)
Commercial bribery is a class B felony.
Sec.
30. RCW
9A.72.010 and 1981 c 187 s 1 are each amended to read as follows:
The
following definitions are applicable in this chapter unless the context
otherwise requires:
(1)
"Materially false statement" means any false statement oral or
written, regardless of its admissibility under the rules of evidence, which
could have affected the course or outcome of the proceeding; whether a false
statement is material shall be determined by the court as a matter of law;
(2)
"Oath" includes an affirmation and every other mode authorized by law
of attesting to the truth of that which is stated; in this chapter, written
statements shall be treated as if made under oath if:
(a)
The statement was made on or pursuant to instructions on an official form
bearing notice, authorized by law, to the effect that false statements made
therein are punishable;
(b)
The statement recites that it was made under oath, the declarant was aware of
such recitation at the time he or she made the statement, intended that
the statement should be represented as a sworn statement, and the statement was
in fact so represented by its delivery or utterance with the signed jurat of an
officer authorized to administer oaths appended thereto; or
(c) It
is a statement, declaration, verification, or certificate, made within or
outside the state of Washington, which is certified or declared to be true
under penalty of perjury as provided in RCW 9A.72.085.
(3) An
oath is "required or authorized by law" when the use of the oath is
specifically provided for by statute or regulatory provision or when the
oath is administered by a person authorized by state or federal law to
administer oaths;
(4)
"Official proceeding" means a proceeding heard before any
legislative, judicial, administrative, or other government agency or official
authorized to hear evidence under oath, including any referee, hearing
examiner, commissioner, notary, or other person taking testimony or
depositions;
(5)
"Juror" means any person who is a member of any jury, including a
grand jury, impaneled by any court of this state or by any public servant
authorized by law to impanel a jury; the term juror also includes any person
who has been drawn or summoned to attend as a prospective juror;
(6)
"Testimony" includes oral or written statements, documents, or any
other material that may be offered by a witness in an official proceeding.
Sec.
31. RCW
9A.72.030 and 1975 1st ex.s. c 260 s 9A.72.030 are each amended to read as
follows:
(1) A
person is guilty of perjury in the second degree if, in an examination under
oath under the terms of a contract of insurance, or with intent to mislead
a public servant in the performance of his or her duty, he or she
makes a materially false statement, which he or she knows to be false
under an oath required or authorized by law.
(2)
Perjury in the second degree is a class C felony.
NEW
SECTION. Sec. 32. A new
section is added to chapter 9A.76 RCW to read as follows:
A
person who knowingly makes a false or misleading material statement to a public
servant is guilty of a gross misdemeanor. "Material statement" means
a written or oral statement reasonably likely to be relied upon by a public
servant in the discharge of his or her official powers or duties.
Sec.
33. RCW
9A.76.020 and 1994 c 196 s 1 are each amended to read as follows:
(1) A
person is guilty of obstructing a law enforcement officer if the person((:
(a)
Willfully makes a false or misleading statement to a law enforcement officer
who has detained the person during the course of a lawful investigation or
lawful arrest; or
(b))) willfully
hinders, delays, or obstructs any law enforcement officer in the discharge of
his or her official powers or duties.
(2)
"Law enforcement officer" means any general authority, limited
authority, or specially commissioned Washington peace officer or federal peace
officer as those terms are defined in RCW 10.93.020, and other public officers
who are responsible for enforcement of fire, building, zoning, and life and
safety codes.
(3)
Obstructing a law enforcement officer is a gross misdemeanor.
Sec.
34. RCW
9A.82.010 and 1994 c 218 s 17 are each amended to read as follows:
Unless
the context requires the contrary, the definitions in this section apply
throughout this chapter.
(1)
"Creditor" means a person making an extension of credit or a person
claiming by, under, or through a person making an extension of credit.
(2)
"Debtor" means a person to whom an extension of credit is made or a
person who guarantees the repayment of an extension of credit or in any manner
undertakes to indemnify the creditor against loss resulting from the failure of
a person to whom an extension is made to repay the same.
(3)
"Extortionate extension of credit" means an extension of credit with
respect to which it is the understanding of the creditor and the debtor at the
time the extension is made that delay in making repayment or failure to make
repayment could result in the use of violence or other criminal means to cause
harm to the person, reputation, or property of any person.
(4)
"Extortionate means" means the use, or an express or implicit threat
of use, of violence or other criminal means to cause harm to the person,
reputation, or property of any person.
(5)
"To collect an extension of credit" means to induce in any way a
person to make repayment thereof.
(6)
"To extend credit" means to make or renew a loan or to enter into an
agreement, tacit or express, whereby the repayment or satisfaction of a debt or
claim, whether acknowledged or disputed, valid or invalid, and however arising,
may or shall be deferred.
(7)
"Repayment of an extension of credit" means the repayment,
satisfaction, or discharge in whole or in part of a debt or claim, acknowledged
or disputed, valid or invalid, resulting from or in connection with that
extension of credit.
(8)
"Dealer in property" means a person who buys and sells property as a
business.
(9)
"Stolen property" means property that has been obtained by theft,
robbery, or extortion.
(10)
"Traffic" means to sell, transfer, distribute, dispense, or otherwise
dispose of stolen property to another person, or to buy, receive, possess, or
obtain control of stolen property, with intent to sell, transfer, distribute,
dispense, or otherwise dispose of the property to another person.
(11)
"Control" means the possession of a sufficient interest to permit
substantial direction over the affairs of an enterprise.
(12)
"Enterprise" includes any individual, sole proprietorship,
partnership, corporation, business trust, or other profit or nonprofit legal
entity, and includes any union, association, or group of individuals associated
in fact although not a legal entity, and both illicit and licit enterprises and
governmental and nongovernmental entities.
(13)
"Financial institution" means any bank, trust company, savings and
loan association, savings bank, mutual savings bank, credit union, or loan
company under the jurisdiction of the state or an agency of the United States.
(14)
"Criminal profiteering" means any act, including any anticipatory or
completed offense, committed for financial gain, that is chargeable or
indictable under the laws of the state in which the act occurred and, if the
act occurred in a state other than this state, would be chargeable or
indictable under the laws of this state had the act occurred in this state and
punishable as a felony and by imprisonment for more than one year, regardless
of whether the act is charged or indicted, as any of the following:
(a)
Murder, as defined in RCW 9A.32.030 and 9A.32.050;
(b)
Robbery, as defined in RCW 9A.56.200 and 9A.56.210;
(c)
Kidnapping, as defined in RCW 9A.40.020 and 9A.40.030;
(d)
Forgery, as defined in RCW 9A.60.020 and 9A.60.030;
(e)
Theft, as defined in RCW 9A.56.030, 9A.56.040, 9A.56.060, and 9A.56.080;
(f)
Child selling or child buying, as defined in RCW 9A.64.030;
(g)
Bribery, as defined in RCW 9A.68.010, 9A.68.020, 9A.68.040, and 9A.68.050;
(h)
Gambling, as defined in RCW 9.46.220 and 9.46.215 and 9.46.217;
(i)
Extortion, as defined in RCW 9A.56.120 and 9A.56.130;
(j)
Extortionate extension of credit, as defined in RCW 9A.82.020;
(k)
Advancing money for use in an extortionate extension of credit, as defined in
RCW 9A.82.030;
(l)
Collection of an extortionate extension of credit, as defined in RCW 9A.82.040;
(m)
Collection of an unlawful debt, as defined in RCW 9A.82.045;
(n)
Delivery or manufacture of controlled substances or possession with intent to
deliver or manufacture controlled substances under chapter 69.50 RCW;
(o)
Trafficking in stolen property, as defined in RCW 9A.82.050;
(p)
Leading organized crime, as defined in RCW 9A.82.060;
(q)
Money laundering, as defined in RCW 9A.83.020;
(r)
Obstructing criminal investigations or prosecutions in violation of RCW
9A.72.090, 9A.72.100, 9A.72.110, 9A.72.120, 9A.72.130, 9A.76.070, or 9A.76.180;
(s)
Fraud in the purchase or sale of securities, as defined in RCW 21.20.010;
(t)
Promoting pornography, as defined in RCW 9.68.140;
(u)
Sexual exploitation of children, as defined in RCW 9.68A.040, 9.68A.050, and
9.68A.060;
(v)
Promoting prostitution, as defined in RCW 9A.88.070 and 9A.88.080;
(w)
Arson, as defined in RCW 9A.48.020 and 9A.48.030;
(x)
Assault, as defined in RCW 9A.36.011 and 9A.36.021;
(y)
Assault of a child, as defined in RCW 9A.36.120 and 9A.36.130;
(z) A
pattern of equity skimming, as defined in RCW 61.34.020; ((or))
(aa)
Commercial telephone solicitation in violation of RCW 19.158.040(1);
(bb)
Trafficking in insurance claims, as defined in section 3 of this act;
(cc)
Unlawful practice of law, as defined in RCW 2.48.180;
(dd)
Commercial bribery, as defined in section 29 of this act;
(ee)
Health care false claims, as defined in RCW 48.80.030; or
(ff)
Unlicensed practice of a profession or business, as defined in RCW
18.130.190(7).
(15)
"Pattern of criminal profiteering activity" means engaging in at
least three acts of criminal profiteering, one of which occurred after July 1,
1985, and the last of which occurred within five years, excluding any period of
imprisonment, after the commission of the earliest act of criminal
profiteering. In order to constitute a pattern, the three acts must have the
same or similar intent, results, accomplices, principals, victims, or methods
of commission, or be otherwise interrelated by distinguishing characteristics
including a nexus to the same enterprise, and must not be isolated events.
However, in any civil proceedings brought pursuant to RCW 9A.82.100 by any
person other than the attorney general or county prosecuting attorney in which
one or more acts of fraud in the purchase or sale of securities are asserted as
acts of criminal profiteering activity, it is a condition to civil liability
under RCW 9A.82.100 that the defendant has been convicted in a criminal
proceeding of fraud in the purchase or sale of securities under RCW 21.20.400
or under the laws of another state or of the United States requiring the same
elements of proof, but such conviction need not relate to any act or acts asserted
as acts of criminal profiteering activity in such civil action under RCW
9A.82.100.
(16)
"Records" means any book, paper, writing, record, computer program,
or other material.
(17)
"Documentary material" means any book, paper, document, writing,
drawing, graph, chart, photograph, phonograph record, magnetic tape, computer
printout, other data compilation from which information can be obtained or from
which information can be translated into usable form, or other tangible item.
(18)
"Unlawful debt" means any money or other thing of value constituting
principal or interest of a debt that is legally unenforceable in the state in
full or in part because the debt was incurred or contracted:
(a) In
violation of any one of the following:
(i)
Chapter 67.16 RCW relating to horse racing;
(ii)
Chapter 9.46 RCW relating to gambling;
(b) In
a gambling activity in violation of federal law; or
(c) In
connection with the business of lending money or a thing of value at a rate
that is at least twice the permitted rate under the applicable state or federal
law relating to usury.
(19)(a)
"Beneficial interest" means:
(i)
The interest of a person as a beneficiary under a trust established under Title
11 RCW in which the trustee for the trust holds legal or record title to real
property;
(ii)
The interest of a person as a beneficiary under any other trust arrangement
under which a trustee holds legal or record title to real property for the
benefit of the beneficiary; or
(iii)
The interest of a person under any other form of express fiduciary arrangement
under which one person holds legal or record title to real property for the
benefit of the other person.
(b)
"Beneficial interest" does not include the interest of a stockholder
in a corporation or the interest of a partner in a general partnership or
limited partnership.
(c) A
beneficial interest shall be considered to be located where the real property
owned by the trustee is located.
(20)
"Real property" means any real property or interest in real property,
including but not limited to a land sale contract, lease, or mortgage of real
property.
(21)(a)
"Trustee" means:
(i) A
person acting as a trustee under a trust established under Title 11 RCW in
which the trustee holds legal or record title to real property;
(ii) A
person who holds legal or record title to real property in which another person
has a beneficial interest; or
(iii)
A successor trustee to a person who is a trustee under subsection (21)(a) (i)
or (ii) of this section.
(b)
"Trustee" does not mean a person appointed or acting as:
(i) A
personal representative under Title 11 RCW;
(ii) A
trustee of any testamentary trust;
(iii)
A trustee of any indenture of trust under which a bond is issued; or
(iv) A
trustee under a deed of trust.
Sec.
35. RCW
18.130.190 and 1993 c 367 s 19 are each amended to read as follows:
(1)
The secretary shall investigate complaints concerning practice by unlicensed
persons of a profession or business for which a license is required by the chapters
specified in RCW 18.130.040. In the investigation of the complaints, the
secretary shall have the same authority as provided the secretary under RCW
18.130.050.
(2)
The secretary may issue a notice of intention to issue a cease and desist order
to any person whom the secretary has reason to believe is engaged in the
unlicensed practice of a profession or business for which a license is required
by the chapters specified in RCW 18.130.040. The person to whom such notice is
issued may request an adjudicative proceeding to contest the charges. The
request for hearing must be filed within twenty days after service of the
notice of intention to issue a cease and desist order. The failure to request
a hearing constitutes a default, whereupon the secretary may enter a permanent
cease and desist order, which may include a civil fine. All proceedings shall
be conducted in accordance with chapter 34.05 RCW.
(3) If
the secretary makes a final determination that a person has engaged or is
engaging in unlicensed practice, the secretary may issue a cease and desist
order. In addition, the secretary may impose a civil fine in an amount not
exceeding one thousand dollars for each day upon which the person engaged in
unlicensed practice of a business or profession for which a license is required
by one or more of the chapters specified in RCW 18.130.040. The proceeds of
such fines shall be deposited to the health professions account.
(4) If
the secretary makes a written finding of fact that the public interest will be
irreparably harmed by delay in issuing an order, the secretary may issue a
temporary cease and desist order. The person receiving a temporary cease and
desist order shall be provided an opportunity for a prompt hearing. The
temporary cease and desist order shall remain in effect until further order of
the secretary. The failure to request a prompt or regularly scheduled hearing
constitutes a default, whereupon the secretary may enter a permanent cease and
desist order, which may include a civil fine.
(5)
Neither the issuance of a cease and desist order nor payment of a civil fine
shall relieve the person so practicing or operating a business without a
license from criminal prosecution therefor, but the remedy of a cease and
desist order or civil fine shall be in addition to any criminal liability. The
cease and desist order is conclusive proof of unlicensed practice and may be
enforced under RCW 7.21.060. This method of enforcement of the cease and
desist order or civil fine may be used in addition to, or as an alternative to,
any provisions for enforcement of agency orders set out in chapter 34.05 RCW.
(6)
The attorney general, a county prosecuting attorney, the secretary, a board, or
any person may in accordance with the laws of this state governing injunctions,
maintain an action in the name of this state to enjoin any person practicing a
profession or business for which a license is required by the chapters
specified in RCW 18.130.040 without a license from engaging in such practice or
operating such business until the required license is secured. However, the
injunction shall not relieve the person so practicing or operating a business
without a license from criminal prosecution therefor, but the remedy by
injunction shall be in addition to any criminal liability.
(7)
Unlicensed practice of a profession or operating a business for which a license
is required by the chapters specified in RCW 18.130.040, unless otherwise
exempted by law, constitutes a gross misdemeanor for a single violation.
Each subsequent violation, whether alleged in the same or in subsequent
prosecutions, is a class C felony. All fees, fines, forfeitures, and
penalties collected or assessed by a court because of a violation of this
section shall be remitted to the health professions account.
NEW
SECTION. Sec. 36. The
Washington State Bar Association is requested to submit to the appropriate
committees of the state senate and house of representatives by November 1995, a
report on the recommendations of its task force on nonlawyer practice,
including any recommendations for legislation or proposed court rules.
NEW
SECTION. Sec. 37. The
following acts or parts of acts are each repealed:
(1) RCW
9.91.090 and 1992 c 7 s 17, 1981 c 203 s 4, & 1909 c 249 s 384;
(2) RCW
9A.82.903 and 1985 c 455 s 22;
(3) RCW
48.50.060 and 1979 ex.s. c 80 s 6;
(4) RCW
48.50.080 and 1979 ex.s. c 80 s 8; and
(5) RCW
49.44.070 and 1909 c 249 s 427.
NEW
SECTION. Sec. 38. Sections
1 through 14 of this act constitute a new chapter in Title 48 RCW.
NEW SECTION. Sec. 39. 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 shall take effect July 1, 1995.
