BILL REQ. #:  H-0742.5 

Read first time 01/30/13.   Referred to Committee on Public Safety.

     AN ACT Relating to the reduction of metal theft; amending RCW 9A.48.100, 9A.56.030, 9A.56.040, 19.290.010, 19.290.020, 19.290.040, 18.235.020, and 43.24.150; reenacting and amending RCW 9.94A.515; adding new sections to chapter 19.290 RCW; adding new sections to chapter 43.43 RCW; and prescribing penalties.

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

Sec. 1   RCW 9A.48.100 and 1984 c 273 s 4 are each amended to read as follows:
     For the purposes of RCW 9A.48.070 through 9A.48.090 inclusive:
     (1) "Physical damage", in addition to its ordinary meaning, shall include the total or partial alteration, damage, obliteration, or erasure of records, information, data, computer programs, or their computer representations, which are recorded for use in computers or the impairment, interruption, or interference with the use of such records, information, data, or computer programs, or the impairment, interruption, or interference with the use of any computer or services provided by computers. "Physical damage" also includes any diminution in the value of any property as the consequence of an act and the cost to repair any physical damage;
     (2) If more than one item of property is physically damaged as a result of a common scheme or plan by a person and the physical damage to the property would, when considered separately, constitute mischief in the third degree because of value, then the value of the damages may be aggregated in one count. If the sum of the value of all the physical damages exceeds two hundred fifty dollars, the defendant may be charged with and convicted of malicious mischief in the second degree.

Sec. 2   RCW 9A.56.030 and 2012 c 233 s 2 are each amended to read as follows:
     (1) A person is guilty of theft in the first degree if he or she commits theft of:
     (a) Property or services which exceed(s) five thousand dollars in value other than a firearm as defined in RCW 9.41.010;
     (b) Property of any value, other than a firearm as defined in RCW 9.41.010 or a motor vehicle, taken from the person of another;
     (c) A search and rescue dog, as defined in RCW 9.91.175, while the search and rescue dog is on duty; or
     (d) Commercial metal ((wire, taken from a public service company, as defined in RCW 80.04.010, or a consumer-owned utility, as defined in RCW 19.280.020,)) property, nonferrous metal property, or private metal property, as those terms are defined in RCW 19.290.010, and the costs of the damage to the ((public service company's or consumer-owned utility's)) owner's property exceed five thousand dollars in value.
     (2) Theft in the first degree is a class B felony.

Sec. 3   RCW 9A.56.040 and 2012 c 233 s 3 are each amended to read as follows:
     (1) A person is guilty of theft in the second degree if he or she commits theft of:
     (a) Property or services which exceed(s) seven hundred fifty dollars in value but does not exceed five thousand dollars in value, other than a firearm as defined in RCW 9.41.010 or a motor vehicle;
     (b) A public record, writing, or instrument kept, filed, or deposited according to law with or in the keeping of any public office or public servant;
     (c) Commercial metal ((wire, taken from a public service company, as defined in RCW 80.04.010, or a consumer-owned utility, as defined in RCW 19.280.020,)) property, nonferrous metal property, or private metal property, as those terms are defined in RCW 19.290.010, and the costs of the damage to the ((public service company's or consumer-owned utility's)) owner's property exceed seven hundred fifty dollars but does not exceed five thousand dollars in value; or
     (d) An access device.
     (2) Theft in the second degree is a class C felony.

Sec. 4   RCW 19.290.010 and 2008 c 233 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) "Commercial account" means a relationship between a scrap metal business and a commercial enterprise that is ongoing and properly documented under RCW 19.290.030.
     (2) "Commercial enterprise" means a corporation, partnership, limited liability company, association, state agency, political subdivision of the state, public corporation, or any other legal or commercial entity.
     (3) "Commercial metal property" means: Utility access covers; street light poles and fixtures; road and bridge guardrails; highway or street signs; water meter covers; traffic directional and control signs; traffic light signals; any metal property marked with the name of a commercial enterprise, including but not limited to a telephone, commercial mobile radio services, cable, electric, water, natural gas, or other utility, or railroad; unused or undamaged building construction materials consisting of copper pipe, tubing, or wiring, or aluminum wire, siding, downspouts, or gutters; aluminum or stainless steel fence panels made from one inch tubing, forty-two inches high with four-inch gaps; aluminum decking, bleachers, or risers; historical markers; statue plaques; grave markers and funeral vases; or agricultural irrigation wheels, sprinkler heads, and pipes.
     (4) "Nonferrous metal property" means metal property for which the value of the metal property is derived from the property's content of copper, brass, aluminum, bronze, lead, zinc, nickel, and their alloys. "Nonferrous metal property" does not include precious metals.
     (5) "Precious metals" means gold, silver, and platinum.
     (6) "Private metal property" means catalytic converters, either singly or in bundles, bales, or bulk, that have been removed from vehicles for sale as a specific commodity.
     (7) "Record" means a paper, electronic, or other method of storing information.
     (8) "Scrap metal business" means a scrap metal supplier, scrap metal ((recycling center)) recycler, and scrap metal processor.
     (9) "Scrap metal processor" means a person with a current business license that conducts business from a permanent location, that is engaged in the business of purchasing or receiving private metal property, nonferrous metal property, and commercial metal property for the purpose of altering the metal in preparation for its use as feedstock in the manufacture of new products, and that maintains a hydraulic bailer, shearing device, or shredding device for recycling.
     (10) "Scrap metal ((recycling center)) recycler" means a person with a current business license that is engaged in the business of purchasing or receiving private metal property, nonferrous metal property, and commercial metal property for the purpose of aggregation and sale to another scrap metal business and that maintains a fixed place of business within the state.
     (11) "Scrap metal supplier" means a person with a current business license that is engaged in the business of purchasing or receiving private metal property or nonferrous metal property for the purpose of aggregation and sale to a scrap metal ((recycling center)) recycler or scrap metal processor and that does not maintain a fixed business location in the state.
     (12) "Transaction" means a pledge, or the purchase of, or the trade of any item of private metal property or nonferrous metal property by a scrap metal business from a member of the general public. "Transaction" does not include donations or the purchase or receipt of private metal property or nonferrous metal property by a scrap metal business from a commercial enterprise, from another scrap metal business, or from a duly authorized employee or agent of the commercial enterprise or scrap metal business.
     (13) "Engage in business" means conducting more than five transactions in a twelve-month period.
     (14) "Person" means an individual, domestic or foreign corporation, limited liability corporation, partnership, trust, unincorporated association, or other entity; an affiliate or associate of any such person; or any two or more persons acting as a partnership, syndicate, or other group for the purpose of acquiring, holding, or dispersing of securities of a domestic or foreign corporation.

Sec. 5   RCW 19.290.020 and 2008 c 233 s 2 are each amended to read as follows:
     (1) At the time of a transaction, every scrap metal business doing business in this state shall produce wherever that business is conducted an accurate and legible record of each transaction involving private metal property or nonferrous metal property. This record must be written in the English language, documented on a standardized form or in electronic form, and contain the following information:
     (a) The signature of the person with whom the transaction is made;
     (b) The time, date, location, and value of the transaction;
     (c) The name of the employee representing the scrap metal business in the transaction;
     (d) The name, street address, and telephone number of the person with whom the transaction is made;
     (e) The license plate number and state of issuance of the license plate on the motor vehicle used to deliver the private metal property or nonferrous metal property subject to the transaction;
     (f) A description of the motor vehicle used to deliver the private metal property or nonferrous metal property subject to the transaction;
     (g) The current driver's license number or other government-issued picture identification card number of the seller or a copy of the seller's government-issued picture identification card; and
     (h) A description of the predominant types of private metal property or nonferrous metal property subject to the transaction, including the property's classification code as provided in the institute of scrap recycling industries scrap specifications circular, 2006, and weight, quantity, or volume.
     (2) For every transaction that involves private metal property or nonferrous metal property, every scrap metal business doing business in the state shall require the person with whom a transaction is being made to sign a declaration. The declaration may be included as part of the transactional record required under subsection (1) of this section, or on a receipt for the transaction. The declaration must state substantially the following:
     "I, the undersigned, affirm under penalty of law that the property that is subject to this transaction is not to the best of my knowledge stolen property."
     The declaration must be signed and dated by the person with whom the transaction is being made. An employee of the scrap metal business must witness the signing and dating of the declaration and sign the declaration accordingly before any transaction may be consummated.
     (3) The record and declaration required under this section must be open to the inspection of any commissioned law enforcement officer of the state or any of its political subdivisions at all times during the ordinary hours of business, or at reasonable times if ordinary hours of business are not kept, and must be maintained wherever that business is conducted for ((one)) five years following the date of the transaction.

Sec. 6   RCW 19.290.040 and 2008 c 233 s 4 are each amended to read as follows:
     (1) Every scrap metal business must create and maintain a permanent record with a commercial enterprise, including another scrap metal business, in order to establish a commercial account. That record, at a minimum, must include the following information:
     (a) The full name of the commercial enterprise or commercial account;
     (b) The business address and telephone number of the commercial enterprise or commercial account; and
     (c) The full name of the person employed by the commercial enterprise who is authorized to deliver private metal property, nonferrous metal property, and commercial metal property to the scrap metal business.
     (2) The record maintained by a scrap metal business for a commercial account must document every purchase or receipt of private metal property, nonferrous metal property, and commercial metal property from the commercial enterprise. The record must be maintained for five years following the date of the purchase or receipt. The documentation must include, at a minimum, the following information:
     (a) The time, date, and value of the property being purchased or received;
     (b) A description of the predominant types of property being purchased or received; and
     (c) The signature of the person delivering the property to the scrap metal business.

NEW SECTION.  Sec. 7   A new section is added to chapter 19.290 RCW to read as follows:
     (1) It is unlawful for a person to engage in the business of a scrap metal processor, scrap metal recycler, or scrap metal supplier without having first applied for and received a scrap metal license.
     (2)(a) Except as provided in (b) of this subsection, a person or firm engaged in the unlawful activity described in this section is guilty of a gross misdemeanor.
     (b) A second or subsequent offense is a class C felony.

NEW SECTION.  Sec. 8   A new section is added to chapter 19.290 RCW to read as follows:
     Application for a scrap metal license or renewal of a scrap metal license shall be made on a form for this purpose, furnished by the department of licensing, and shall be signed by the license holder or his or her authorized agent and shall include the following information:
     (1) Name and address of the person, firm, partnership, association, limited liability company, or corporation under which name the business is to be conducted;
     (2) Names and residence address of all persons having an interest in the business or, if the owner is a corporation, the names and addresses of the officers thereof;
     (3) Certificate of approval of the chief of police or, in any unincorporated area, the sheriff certifying that:
     (a) The applicant has an established place of business at the address shown on the application; and
     (b) In the case of a renewal of a scrap metal license, the applicant is in compliance with this chapter: PROVIDED, That the above certification in any instance can be made by an authorized representative of the department of licensing;
     (4) Documentation demonstrating that the business is in compliance with the terms of all applicable building code, zoning, and other land use regulatory ordinances.
     (5) Any other information that the department of licensing may require.

NEW SECTION.  Sec. 9   A new section is added to chapter 19.290 RCW to read as follows:
     The application, together with the required fee, shall be forwarded to the department of licensing. Upon receipt of the application the department shall, if the application is in order, issue a scrap metal license authorizing the processor, recycler, or supplier to do business as such and forward the fee to the state treasurer. Upon receiving the certificate, the owner shall cause it to be prominently displayed in the place of business, where it may be inspected by an investigating officer at any time. Every license must be issued in the name of the applicant and the holder thereof may not allow any other person to use the license.

NEW SECTION.  Sec. 10   A new section is added to chapter 19.290 RCW to read as follows:
     Before issuing a scrap metal license to a scrap metal processor or scrap metal recycler, the department of licensing shall require the applicant to file with the department a surety bond in the amount of ten thousand dollars, running to the state of Washington, and executed by a surety company authorized to do business in the state of Washington. The bond shall be approved as to form by the attorney general and conditioned upon the licensee conducting the business in conformity with the provisions of this chapter. Any person who has suffered any loss or damage by reason of fraud, carelessness, neglect, violation of the terms of this chapter, or misrepresentation on the part of the scrap metal processor or recycler, may institute an action for recovery against the licensee and surety upon the bond. However, the aggregate liability of the surety to all persons shall in no event exceed the amount of the bond.

NEW SECTION.  Sec. 11   A new section is added to chapter 19.290 RCW to read as follows:
     A license issued on the scrap metal license application remains in force until suspended or revoked and may be renewed annually upon reapplication and upon payment of the required fee. A licensee who fails or neglects to renew the license before the assigned expiration date shall pay the fee for an original scrap metal license as provided in this chapter.
     Whenever a scrap metal processor, recycler, or supplier ceases to do business as such or the license has been suspended or revoked, the licensee shall immediately surrender the license to the department of licensing.

NEW SECTION.  Sec. 12   A new section is added to chapter 19.290 RCW to read as follows:
     The licensee shall obtain a special set of license plates in addition to the regular licenses and plates required for the operation of such vehicles. The special plates must be displayed on vehicles owned and/or operated by the licensee and used in the conduct of the business. The fee for these plates shall be five dollars for the original plates and two dollars for each additional set of plates bearing the same license number. A licensee with more than one licensed location in the state may use special plates bearing the same license number for vehicles operated out of any of the licensed locations.

NEW SECTION.  Sec. 13   A new section is added to chapter 19.290 RCW to read as follows:
     The uniform regulation of business and professions act, chapter 18.235 RCW, governs unlicensed practice, the issuance and denial of licenses, and the discipline of licensees under this chapter.

NEW SECTION.  Sec. 14   A new section is added to chapter 19.290 RCW to read as follows:
     If a person whose scrap metal license has previously been canceled for cause by the department of licensing files an application for a license to conduct business as a scrap metal processor, recycler, or supplier, or if the department is of the opinion that the application is not filed in good faith or that the application is filed by some person as a subterfuge for the real person in interest whose license has previously been canceled for cause, the department may refuse to issue the person a license to conduct business as a scrap metal processor, recycler, or supplier.

NEW SECTION.  Sec. 15   A new section is added to chapter 19.290 RCW to read as follows:
     (1) The director of licensing is hereby authorized to adopt reasonable rules and regulations not in conflict with provisions hereof for the proper operation and enforcement of this chapter.
     (2) The director shall set all license and renewal fees in accordance with RCW 43.24.086.

NEW SECTION.  Sec. 16   A new section is added to chapter 19.290 RCW to read as follows:
     The chiefs of police, the county sheriffs, and the Washington state patrol may make periodic inspection of the licensee's licensed premises and records provided for in this chapter during normal business hours, and furnish a certificate of inspection to the department of licensing in such manner as may be determined by the department. In any instance, an authorized representative of the department may make the inspection. Licensees are subject to unannounced periodic inspections, as described in this section.

NEW SECTION.  Sec. 17   A new section is added to chapter 19.290 RCW to read as follows:
     The state of Washington hereby fully occupies and preempts the entire field of regulation of scrap metal processors, recyclers, or suppliers within the boundaries of the state. Any political subdivision in this state may enact or enforce only those laws and ordinances relating to the regulation of scrap metal processors, recyclers, or suppliers that are specifically authorized by state law and are consistent with this chapter. Local ordinances shall have the same or lesser penalty as provided for by state law. Local laws and ordinances that are inconsistent with, more restrictive than, or exceed the requirements of state law shall not be enacted and are hereby preempted and repealed, regardless of the code, charter, or home rule status of such political subdivision.

NEW SECTION.  Sec. 18   A new section is added to chapter 19.290 RCW to read as follows:
     (1) In addition to the powers granted in chapter 18.235 RCW, the department of licensing or its authorized agent may examine or subpoena any persons, books, papers, records, data, vehicles, or metal property bearing upon the investigation or proceeding under this chapter.
     (2) The persons subpoenaed may be required to testify and produce any books, papers, records, data, vehicles, or metal property that the director of licensing deems relevant or material to the inquiry.
     (3) The director of the department of licensing or an authorized agent may administer an oath to the person required to testify, and a person giving false testimony after the administration of the oath is guilty of perjury in the first degree under RCW 9A.72.020.
     (4)(a) Any authorized representative of the director of the department of licensing may apply for and obtain a superior court order approving and authorizing a subpoena in advance of its issuance. The application may be made in the county where the subpoenaed person resides or is found, or the county where the subpoenaed records or documents are located, or in Thurston county. The application must:
     (i) State that an order is sought pursuant to this subsection;
     (ii) Adequately specify the records, documents, or testimony; and
     (iii) Declare under oath that an investigation is being conducted for a lawfully authorized purpose related to an investigation within the department's authority and that the subpoenaed documents or testimony are reasonably related to an investigation within the department's authority.
     (b) Where the application under this subsection is made to the satisfaction of the court, the court must issue an order approving the subpoena. An order under this subsection constitutes authority of law for the agency to subpoena the records or testimony.
     (c) Any authorized representative of the director of the department of licensing may seek approval and a court may issue an order under this subsection without prior notice to any person, including the person to whom the subpoena is directed and the person who is the subject of an investigation.
     (5) Any records created or produced under this section are exempt from disclosure under chapter 46.55 RCW.

NEW SECTION.  Sec. 19   A new section is added to chapter 19.290 RCW to read as follows:
     (1) The Washington metal theft prevention authority is established.
     (a) The authority shall consist of the following members, appointed by the governor:
     (i) The executive director of the Washington association of sheriffs and police chiefs, or the executive director's designee;
     (ii) The chief of the Washington state patrol, or the chief's designee;
     (iii) Two police chiefs;
     (iv) Two sheriffs;
     (v) One prosecuting attorney;
     (vi) A representative from the insurance industry who is responsible for writing property and casualty liability insurance in the state of Washington;
     (vii) A representative from the metal recycling industry; and
     (viii) A representative of a public utility.
     (b) In addition, the authority may, where feasible, consult with other governmental entities or individuals from the public and private sector in carrying out its duties under this section.
     (2) The Washington metal theft prevention authority shall initially convene at the call of the executive director of the Washington association of sheriffs and police chiefs, or the executive director's designee, no later than the third Monday in January 2014. Subsequent meetings of the authority shall be at the call of the chair or seven members.
     (a) The authority shall annually elect a chair and other such officers as it deems appropriate from its membership.
     (b) Members of the authority shall serve terms of four years each on a staggered schedule to be established by the first authority. For purposes of initiating a staggered schedule of terms, some members of the first authority may initially serve two years and some members may initially serve four years.
     (3) The Washington metal theft prevention authority may obtain or contract for staff services, including an executive director, and any facilities and equipment as the authority requires to carry out its duties.     
     (a) The director may enter into contracts with any public or private organization to carry out the purposes of this section.
     (b) The authority shall review and make recommendations to the legislature and the governor regarding metal theft in Washington state. In preparing the recommendations, the authority shall, at a minimum, review the following issues:
     (i) Determine the scope of the problem of metal theft, including particular areas of the state where the problem is the greatest; annual data reported by local law enforcement regarding the number of reported thefts, investigations, recovered property, arrests, and convictions; and an assessment of estimated funds needed to hire sufficient investigators to respond to all reported thefts.
     (ii) Analyze the various methods of combating the problem of metal theft;
     (iii) Develop and implement a plan of operation; and
     (iv) Develop and implement a financial plan.
     (c) The authority is not a law enforcement agency and may not gather, collect, or disseminate intelligence information for the purpose of investigating specific crimes or pursuing or capturing specific perpetrators. Members of the authority may not exercise general authority peace officer powers while acting in their capacity as members of the authority, unless the exercise of peace officer powers is necessary to prevent an imminent threat to persons or property.
     (d) The authority shall annually report its activities, findings, and recommendations during the preceding year to the legislature by December 31st.
     (4) The governor may remove any member of the Washington metal theft prevention authority for cause including, but not limited to, neglect of duty, misconduct, malfeasance or misfeasance in office, or upon written request of two-thirds of the members of the authority under this chapter. Upon the death, resignation, or removal of a member, the governor shall appoint a replacement to fill the remainder of the unexpired term.
     (5) Members of the Washington metal theft prevention authority who are not public employees shall be compensated in accordance with RCW 43.03.250 and shall be reimbursed for travel expenses incurred in carrying out the duties of the authority in accordance with RCW 43.03.050 and 43.03.060.
     (6) Any member serving in their official capacity on the Washington metal theft prevention authority, or either their employer or employers, or other entity that selected the members to serve, are immune from a civil action based upon an act performed in good faith.

NEW SECTION.  Sec. 20   A new section is added to chapter 19.290 RCW to read as follows:
     (1) The Washington metal theft prevention authority account is created in the state treasury, subject to appropriation. All receipts from gifts, grants, bequests, devises, or other funds from public and private sources to support the activities of the metal theft prevention authority must be deposited into the account. Expenditures from the account may be used only for activities relating to metal theft, including education, prevention, law enforcement, investigation, prosecution, and confinement.
     (2) The authority shall allocate moneys appropriated from the account to public agencies for the purpose of establishing, maintaining, and supporting programs that are designed to prevent metal theft, including:
     (a) Financial support to prosecution agencies to increase the effectiveness of metal theft prosecution;
     (b) Financial support to a unit of local government or a team consisting of units of local governments to increase the effectiveness of metal theft enforcement;
     (c) Financial support for the procurement of equipment and technologies for use by law enforcement agencies for the purpose of enforcing metal theft laws; and
     (d) Financial support for programs that are designed to educate and assist the public in the prevention of metal theft.
     (3) The costs of administration shall not exceed ten percent of the moneys in the account in any one year so that the greatest possible portion of the moneys available to the authority is expended on combating metal theft.
     (4) Prior to awarding any moneys from the Washington metal theft prevention authority account for metal theft enforcement, the metal theft prevention authority must verify that the financial award includes sufficient funding to cover proposed activities, which include, but are not limited to:
     (a) State, municipal, and county offender and juvenile confinement costs;
     (b) Administration costs;
     (c) Law enforcement costs;
     (d) Prosecutor costs; and
     (e) Court costs, with a priority being given to ensuring that sufficient funding is available to cover state, municipal, and county offender and juvenile confinement costs.
     (5) Moneys expended from the Washington metal theft prevention authority account under subsection (2) of this section shall be used to supplement, not supplant, other moneys that are available for metal theft prevention.
     (6) Grants provided under subsection (2) of this section constitute reimbursement for purposes of RCW 43.135.060(1).

NEW SECTION.  Sec. 21   A new section is added to chapter 19.290 RCW to read as follows:
     Nothing in this chapter shall apply to metal and metal components from vehicles owned by vehicle wreckers licensed pursuant to chapter 46.80 RCW.

NEW SECTION.  Sec. 22   A new section is added to chapter 19.290 RCW to read as follows:
     (1) Law enforcement agencies may register with the scrap theft alert system that is maintained and provided at no charge to users by the institute of scrap recycling industries, incorporated, or its successor organization, to receive alerts regarding thefts of private, nonferrous, or commercial metal property in the relevant geographic area.
     (2) Any business licensed under this chapter shall:
     (a) Sign up with the scrap theft alert system that is maintained and provided at no charge to users by the institute of scrap recycling industries, incorporated, or its successor organization, to receive alerts regarding thefts of private, nonferrous, or commercial metal property in the relevant geographic area;
     (b) Download the scrap metal theft alerts generated by the scrap theft alert system on a daily basis;
     (c) Use the alerts to identify potentially stolen commercial metal property, nonferrous metal property, and private metal property; and
     (d) Maintain for ninety days copies of any theft alerts received and downloaded pursuant to this section.

Sec. 23   RCW 9.94A.515 and 2012 c 176 s 3 and 2012 c 162 s 1 are each reenacted and amended to read as follows:

NEW SECTION.  Sec. 24   A new section is added to chapter 19.290 RCW to read as follows:
     (1) The following personal property is subject to seizure and forfeiture and no property right exists in them: All personal property including, but not limited to, any item, object, tool, substance, device, weapon, machine, vehicle of any kind, money, security, or negotiable instrument, which was used or intended to be used to facilitate the commission of, or in aiding or abetting in the commission of, any violation of RCW 19.290.070 or any crime involving theft, trafficking, or unlawful possession of commercial metal property, or which was furnished or was intended to be furnished by any person in the commission of, as a result of, or as compensation for the commission of, any violation of RCW 19.290.070 or any crime involving theft, trafficking, or the unlawful possession of commercial metal property, or which was acquired in whole or in part with proceeds traceable to the commission of any violation of RCW 19.290.070 or any crime involving the theft, trafficking, or unlawful possession of commercial metal property; except that:
     (a) No vehicle used by any person as a common carrier in the transaction of business as a common carrier is subject to forfeiture under this section unless the seizing agency proves by a preponderance of the evidence that the owner or other person in charge of the vehicle is a consenting party or is privy to a violation of RCW 19.290.070 or any crime involving theft, trafficking, or the unlawful possession of commercial metal property; and
     (b) A forfeiture of property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party neither had actual or constructive knowledge of nor consented to the commission of any violation of RCW 19.290.070 or any crime involving the theft, trafficking, or unlawful possession of commercial metal property.
     (2) The following real property is subject to seizure and forfeiture and no property right exists in them: All real property, including any right, title, and interest in the whole of any lot or tract of land, and any appurtenances or improvements, that are being used with the knowledge of the owner for the commission of any violation of RCW 19.290.070 or any crime involving the theft, trafficking, or unlawful possession of commercial metal property, or which have been acquired in whole or in part with proceeds traceable to the commission of any violation of RCW 19.290.070 or any crime involving the trafficking, theft, or unlawful possession of commercial metal, if such activity is not less than a class C felony and a substantial nexus exists between the commission of the violation or crime and the real property. However:
     (a) No property may be forfeited pursuant to this subsection (2), to the extent of the interest of an owner, by reason of any act or omission committed or omitted without the owner's actual or constructive knowledge;
     (b) A forfeiture of real property encumbered by a bona fide security interest is subject to the interest of the secured party if the secured party, neither had actual or constructive knowledge, nor consented to the act or omission.
     (3) Property subject to forfeiture under this chapter may be seized by any law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of real property shall include the filing of a lis pendens by the seizing agency. Real property seized under this section shall not be transferred or otherwise conveyed until ninety days after seizure or until a judgment of forfeiture is entered, whichever is later: PROVIDED, That real property seized under this section may be transferred or conveyed to any person or entity who acquires title by foreclosure or deed in lieu of foreclosure of a security interest. Seizure of personal property without process may be made if:
     (a) The seizure is incident to an arrest or a search under a search warrant;
     (b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding;
     (c) A law enforcement officer has probable cause to believe that the property is directly dangerous to health or safety; or
     (d) The law enforcement officer has probable cause to believe that the property was used or is intended to be used in the commission of any violation of RCW 19.290.070 or any crime involving theft, trafficking, or the unlawful possession of commercial metal property.
     (4) In the event of seizure pursuant to this section, proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. Service of notice of seizure of real property shall be made according to the rules of civil procedure. However, the state may not obtain a default judgment with respect to real property against a party who is served by substituted service absent an affidavit stating that a good faith effort has been made to ascertain if the defaulted party is incarcerated within the state, and that there is no present basis to believe that the party is incarcerated within the state. The notice of seizure of personal property may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the fifteen day period following the seizure. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9A RCW, or a certificate of title shall be made by service upon the secured party or the secured party's assignee at the address shown on the financing statement or the certificate of title.
     (5) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the item seized shall be deemed forfeited. The community property interest in real property of a person whose spouse or domestic partner committed a violation giving rise to seizure of the real property may not be forfeited if the person did not participate in the violation.
     (6) If a person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of the seized property within forty-five days of the seizure in the case of personal property and ninety days in the case of real property, the law enforcement agency shall give the person or persons a reasonable opportunity to be heard as to the claim or right. The hearing shall be before the chief law enforcement officer of the seizing agency or the chief law enforcement officer's designee, except where the seizing agency is a state agency as defined in RCW 34.12.020(4), the hearing shall be before the chief law enforcement officer of the seizing agency or an administrative law judge appointed under chapter 34.12 RCW, except that any person asserting a claim or right may remove the matter to a court of competent jurisdiction. Removal may only be accomplished according to the rules of civil procedure. The person seeking removal of the matter must serve process against the state, county, political subdivision, or municipality that operates the seizing agency, and any other party of interest, in accordance with RCW 4.28.080 or 4.92.020, within forty-five days after the person seeking removal has notified the seizing law enforcement agency of the person's claim of ownership or right to possession. The court to which the matter is to be removed shall be the district court when the aggregate value of the property is within the jurisdictional limit set forth in RCW 3.66.020. A hearing before the seizing agency and any appeal therefrom shall be under Title 34 RCW. In a court hearing between two or more claimants to the property involved, the prevailing party shall be entitled to a judgment for costs and reasonable attorneys' fees. The burden of producing evidence shall be upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property.
     (7) At the hearing, the seizing agency has the burden of proof to establish by a preponderance of the evidence that seized property is subject to forfeiture. The person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property has the burden of proof to establish by a preponderance of the evidence that the person owns or has a right to possess the seized property; and that the use or intended use of the seized property occurred with neither the owner's actual or constructive knowledge nor consent. The possession of bare legal title is not sufficient to establish ownership of seized property if the seizing agency proves by a preponderance of the evidence that the person claiming ownership or right to possession is a nominal owner and did not actually own or exert a controlling interest in the property.
     The seizing law enforcement agency shall promptly return the property to the claimant upon a determination by the administrative law judge or court that the claimant is the present lawful owner or is lawfully entitled to possession of the property.
     (8) When property is forfeited under this chapter, after satisfying any court-ordered victim restitution, the seizing law enforcement agency may:
     (a) Retain it for official use or, upon application by any law enforcement agency of this state, release such property to such agency; or
     (b) Sell that which is not required to be destroyed by law and which is not harmful to the public.
     (9)(a) Within one hundred twenty days after the entry of an order of forfeiture, each seizing agency shall remit to, if known, the victim of the crime involving the seized property, an amount equal to fifty percent of the net proceeds of any property forfeited.
     (b) Retained property and net proceeds not required to be paid to victims shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources.
     (c) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents, and the cost of any valid landlord's claim for damages.
     (d) The value of sold forfeited property is the sale price. The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal. The value of destroyed property and retained firearms or illegal property is zero.
     (10) Upon the entry of an order of forfeiture of real property, the court shall forward a copy of the order to the assessor of the county in which the property is located. Orders for the forfeiture of real property shall be entered by the superior court, subject to court rules. Such an order shall be filed by the seizing agency in the county auditor's records in the county in which the real property is located.

NEW SECTION.  Sec. 25   A new section is added to chapter 19.290 RCW to read as follows:
     The provisions of this chapter shall be liberally construed to the end that traffic in stolen private metal property or nonferrous metal property may be prevented, and irresponsible, unreliable, or dishonest persons may be prevented from engaging in the business of processing, recycling, or supplying scrap metal in this state and reliable persons may be encouraged to engage in businesses of processing, recycling, or supplying scrap metal in this state.

Sec. 26   RCW 18.235.020 and 2010 c 179 s 18 are each amended to read as follows:
     (1) This chapter applies only to the director and the boards and commissions having jurisdiction in relation to the businesses and professions licensed under the chapters specified in this section. This chapter does not apply to any business or profession not licensed under the chapters specified in this section.
     (2)(a) The director has authority under this chapter in relation to the following businesses and professions:
     (i) Auctioneers under chapter 18.11 RCW;
     (ii) Bail bond agents and bail bond recovery agents under chapter 18.185 RCW;
     (iii) Camping resorts' operators and salespersons under chapter 19.105 RCW;
     (iv) Commercial telephone solicitors under chapter 19.158 RCW;
     (v) Cosmetologists, barbers, manicurists, and estheticians under chapter 18.16 RCW;
     (vi) Court reporters under chapter 18.145 RCW;
     (vii) Driver training schools and instructors under chapter 46.82 RCW;
     (viii) Employment agencies under chapter 19.31 RCW;
     (ix) For hire vehicle operators under chapter 46.72 RCW;
     (x) Limousines under chapter 46.72A RCW;
     (xi) Notaries public under chapter 42.44 RCW;
     (xii) Private investigators under chapter 18.165 RCW;
     (xiii) Professional boxing, martial arts, and wrestling under chapter 67.08 RCW;
     (xiv) Real estate appraisers under chapter 18.140 RCW;
     (xv) Real estate brokers and salespersons under chapters 18.85 and 18.86 RCW;
     (xvi) Scrap metal processors, scrap metal recyclers, and scrap metal suppliers under chapter 19.290 RCW;
     (xvii) Security guards under chapter 18.170 RCW;
     (((xvii))) (xviii) Sellers of travel under chapter 19.138 RCW;
     (((xviii))) (xix) Timeshares and timeshare salespersons under chapter 64.36 RCW;
     (((xix))) (xx) Whitewater river outfitters under chapter 79A.60 RCW;
     (((xx))) (xxi) Home inspectors under chapter 18.280 RCW;
     (((xxi))) (xxii) Body artists, body piercers, and tattoo artists, and body art, body piercing, and tattooing shops and businesses, under chapter 18.300 RCW; and
     (((xxii))) (xxiii) Appraisal management companies under chapter 18.310 RCW.
     (b) The boards and commissions having authority under this chapter are as follows:
     (i) The state board ((of registration)) for architects established in chapter 18.08 RCW;
     (ii) The Washington state collection agency board established in chapter 19.16 RCW;
     (iii) The state board of registration for professional engineers and land surveyors established in chapter 18.43 RCW governing licenses issued under chapters 18.43 and 18.210 RCW;
     (iv) The funeral and cemetery board established in chapter 18.39 RCW governing licenses issued under chapters 18.39 and 68.05 RCW;
     (v) The state board of licensure for landscape architects established in chapter 18.96 RCW; and
     (vi) The state geologist licensing board established in chapter 18.220 RCW.
     (3) In addition to the authority to discipline license holders, the disciplinary authority may grant or deny licenses based on the conditions and criteria established in this chapter and the chapters specified in subsection (2) of this section. This chapter also governs any investigation, hearing, or proceeding relating to denial of licensure or issuance of a license conditioned on the applicant's compliance with an order entered under RCW 18.235.110 by the disciplinary authority.

Sec. 27   RCW 43.24.150 and 2011 c 298 s 25 are each amended to read as follows:
     (1) The business and professions account is created in the state treasury. All receipts from business or professional licenses, registrations, certifications, renewals, examinations, or civil penalties assessed and collected by the department from the following chapters must be deposited into the account:
     (a) Chapter 18.11 RCW, auctioneers;
     (b) Chapter 18.16 RCW, cosmetologists, barbers, and manicurists;
     (c) Chapter 18.145 RCW, court reporters;
     (d) Chapter 18.165 RCW, private investigators;
     (e) Chapter 18.170 RCW, security guards;
     (f) Chapter 18.185 RCW, bail bond agents;
     (g) Chapter 18.280 RCW, home inspectors;
     (h) Chapter 19.16 RCW, collection agencies;
     (i) Chapter 19.31 RCW, employment agencies;
     (j) Chapter 19.105 RCW, camping resorts;
     (k) Chapter 19.138 RCW, sellers of travel;
     (l) Chapter 42.44 RCW, notaries public;
     (m) Chapter 64.36 RCW, timeshares;
     (n) Chapter 67.08 RCW, boxing, martial arts, and wrestling;
     (o) Chapter 18.300 RCW, body art, body piercing, and tattooing;
     (p) Chapter 79A.60 RCW, whitewater river outfitters; ((and))
     (q) Chapter 19.158 RCW, commercial telephone solicitation; and
     (r) Chapter 19.290 RCW, scrap metal businesses.
     Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for expenses incurred in carrying out these business and professions licensing activities of the department. Any residue in the account must be accumulated and may not revert to the general fund at the end of the biennium.
     (2) The director must biennially prepare a budget request based on the anticipated costs of administering the business and professions licensing activities listed in subsection (1) of this section, which must include the estimated income from these business and professions fees.

NEW SECTION.  Sec. 28   A new section is added to chapter 43.43 RCW to read as follows:
     (1) Beginning on July 1, 2014, the Washington association of sheriffs and police chiefs shall implement and operate an ongoing electronic statewide no-buy list database program.
     (2) The database must be made available on a web site.
     (3) The no-buy list database program shall allow for any secondhand dealer, secondhand precious metal dealer, pawnbrokers, and scrap metal business to enter a customer's name and date of birth into the database. The database must determine if the customer pursuing the transaction with the secondhand dealer, secondhand precious metal dealer, pawnbroker, or scrap metal business has been convicted in Washington of any crime involving burglary, robbery, theft, or possession of or receiving stolen property within the past ten years.
     (4) If the customer has been convicted of any crime involving burglary, robbery, theft, or possession of or receiving stolen property within the past ten years despite whether the person was acting in his or her own behalf or as the agent of another then, at a minimum:
     (a) The no-buy list database program must immediately send an alert to the secondhand dealer, secondhand precious metal dealer, pawnbroker, or scrap metal business stating: (i) That the customer is listed on a current no-buy list, (ii) the ten-year expiration period for the customer's most recent crime listed, and (iii) a notification that, for a scrap metal business, entering into a transaction with the customer is prohibited under RCW 19.290.070 and, for a secondhand dealer, secondhand precious metal dealer, or pawnbroker, receiving any property from the customer is prohibited under RCW 19.60.066; and
     (b) The program must automatically send an immediate electronic notification to the local law enforcement agency located nearest to the secondhand dealer, secondhand precious metal dealer, pawnbroker, or scrap metal business that notifies the law enforcement agency that a customer listed on a current no-buy list recently tried to pursue a transaction with the secondhand dealer, secondhand precious metal dealer, pawnbroker, or scrap metal business and that the current transaction may involve stolen property.

NEW SECTION.  Sec. 29   A new section is added to chapter 19.290 RCW to read as follows:
     A scrap metal business shall, before completing any transaction under this chapter, determine whether such customer is listed in the Washington state patrol's no-buy list database program established and made available under section 28 of this act.

NEW SECTION.  Sec. 30   A new section is added to chapter 43.43 RCW to read as follows:
     The Washington association of sheriffs and police chiefs shall not be held liable for civil damages resulting from any act or omission in carrying out the requirements of section 28 of this act other than an act or omission constituting gross negligence or willful or wanton misconduct.