AN ACT Relating to consolidating the administrative functions of state licensing programs; amending RCW 18.04.025, 18.04.045, 18.04.105, 18.04.195, 18.04.205, 18.04.215, 18.04.320, 18.04.335, 18.04.350, 18.64.005, 18.64.007, 18.64.009, 18.64.011, 18.64.040, 18.64.043, 18.64.044, 18.64.045, 18.64.046, 18.64.047, 18.64.050, 18.64.080, 18.64.140, 68.05.020, 68.05.070, 68.05.090, 68.05.100, 68.05.130, 68.05.140, 68.05.150, 68.05.160, 68.05.180, 68.05.190, 68.05.200, 68.05.210, 68.05.220, 68.05.230, 68.05.255, 68.05.257, and 68.05.270; adding new sections to chapter 18.04 RCW; adding a new section to chapter 18.64 RCW; adding a new section to chapter 68.05 RCW; creating new sections; and repealing RCW 18.04.065.

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

Sec. 1. Section 3, chapter 234, Laws of 1983 and RCW 18.04.025 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Board" means the board of accountancy created by RCW 18.04.035.

(2) "Certified public accountant" or "CPA" means a person holding a certified public accountant certificate issued under this chapter or the accountancy act of any state.

(3) "Department" means the department of licensing.

(4) "Director" means the director of the department of licensing or the director's designee.

(5) "State" includes the states of the United States, the District of Columbia, Puerto Rico, Guam, and the United States Virgin Islands.

((~~(4)~~)) (6) "Opinions on financial statements" are any reports prepared by certified public accountants, based on examinations in accordance with generally accepted auditing standards as to whether the presentation of information used for guidance in financial transactions or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public, private, or governmental, conforms with generally accepted accounting principles or other comprehensive bases of accounting.

((~~(5)~~)) (7) The "practice of public accounting" means performing services as one skilled in the knowledge and practice of public accounting and preparing reports designated as "audit reports," "review reports," and "compilation reports."

Sec. 2. Section 5, chapter 234, Laws of 1983 and RCW 18.04.045 are each amended to read as follows:

(1) The board shall annually elect a chairman, a vice chairman, and a secretary from its members. The board may adopt and amend rules under chapter 34.04 RCW for the orderly conduct of its affairs ((~~and for the administration of this chapter~~)). A majority of the board constitutes a quorum for the transaction of business. The board shall have a seal which shall be judicially noticed. The board shall keep records of its proceedings, and of any proceeding in court arising from or founded upon this chapter. Copies of these records certified as correct under the seal of the board are admissible in evidence as tending to prove the content of the records. ((~~The board may employ personnel and arrange for assistance as it requires to perform its duties.~~))

(2) Each member of the board shall receive compensation as provided under RCW 18.04.080.

(3) The board shall file an annual report of its activities with the governor. ((The report shall include but not be limited to a statement of all receipts and disbursements and a listing of all certified public accountants who are registered, or who have offices registered, or permits to practice issued under this chapter.)) Upon request, the ((~~board~~)) department shall mail a copy of each annual report to any person, office, partnership, or corporation listed, or to any member of the public.

NEW SECTION. Sec. 3. A new section is added to chapter 18.04 RCW to read as follows:

The director may employ persons to administer this chapter.

NEW SECTION. Sec. 4. A new section is added to chapter 18.04 RCW to read as follows:

The director shall establish fees in accordance with RCW 43.24.086.

Sec. 5. Section 7, chapter 234, Laws of 1983 as amended by section 3, chapter 57, Laws of 1985 and RCW 18.04.105 are each amended to read as follows:

(1) The certificate of "certified public accountant" shall be ((~~granted~~)) issued by the ((~~board~~)) department to any person:

(a) Who is of good character;

(b) Who has a baccalaureate degree conferred by a college or university recognized by the board, and whose educational program included an accounting concentration or its equivalent, and related subjects the board determines to be appropriate; and

(c) Who has passed a written examination in accounting, auditing, and related subjects the board determines to be appropriate.

(2) The board may, in its discretion, waive the educational requirement for any person if it is satisfied, by appropriate means of evaluation, that the person's educational qualifications are an acceptable substitute for the requirements of subsection (1)(b) of this section.

(3) The examination described in subsection (1)(c) of this section shall be held by the ((~~board~~)) department and shall take place as often as the board determines to be desirable, but at least once a year. The board may use all or any part of the examination and grading service of the American Institute of Certified Public Accountants to assist it in performing its duties under this chapter.

(4) A person who has met the educational requirements of subsection (1)(b) of this section, or who expects to meet it within one hundred twenty days following the examination, or with respect to whom it has been waived under subsection (2) of this section, is eligible to take the examination if the person also meets the requirements of subsection (1)(a) of this section. If a person is admitted to the examination on the expectation that he or she will complete the educational requirement within one hundred twenty days, no certificate may be issued, nor credit for the examination or any part of it be given, unless this requirement is in fact completed within that time or within such time as the board in its discretion may determine upon application.

(5) The board may, by rule, provide for granting credit to a person for satisfactory completion of a written examination in any one or more of the subjects specified in subsection (1)(c) of this section given by the licensing authority in any other state. These rules shall include requirements the board determines to be appropriate in order that any examination approved as a basis for any credit shall, in the judgment of the board, be at least as thorough as the most recent examination given by the board at the time credit is granted.

The board may, by rule, prescribe the terms and conditions under which a person who passes the examination in one or more of the subjects indicated in subsection (1)(c) of this section may be reexamined in only the remaining subjects, giving credit for the subjects previously passed. It may also provide by rule for a reasonable waiting period for a person's reexamination in a subject he or she has failed. A person is entitled to any number of reexaminations, subject to this subsection and any other rules adopted by the board.

A person passing the examination in any one or more subjects specified in subsection (1)(c) of this section shall meet the educational requirements of subsection (1)(b) of this section in effect on the date the person successfully completes the requirements of subsection (1)(c) of this section. The board may provide, by rule, for exceptions to prevent what it determines to be undue hardship to applicants.

(6) The ((~~board~~)) department shall charge each applicant an examination fee for the initial examination under subsection (1) of this section, or for reexamination under subsection (5) of this section for each subject in which the applicant is reexamined, or for evaluation of a person's educational qualifications under subsection (2) of this section. The applicable fee shall be paid by the person at the time he or she applies for examination, reexamination, or evaluation of educational qualifications. Fees for examination, reexamination, or evaluation of educational qualifications shall be determined by the ((~~board~~)) director under ((~~chapter 18.04~~)) RCW 43.24.086. There is established in the state treasury an account to be known as the certified public accountant examination account. All fees received from candidates to take any or all sections of the certified public accountant examination shall be deposited by the ((~~board~~)) department into this account, and funds appropriated from the account shall be used only for costs directly related to the examination. All earnings of investments of balances in the certified public accountant examination account shall be credited to the general fund.

(7) Persons who on July 1, 1983, held certified public accountant certificates previously issued under the laws of this state shall not be required to obtain additional certificates under this chapter, but shall otherwise be subject to this chapter. Certificates previously issued shall, for all purposes, be considered certificates issued under this chapter and subject to its provisions.

(8)(a) Persons who on July 1, 1983, hold registrations as licensed public accountants and annual permits to practice previously issued under the laws of this state shall be entitled to practice public accounting and be known as certified public accountants and to use the designation "CPA" provided that these persons continue to hold permits to practice under this chapter.

(b) Persons who held qualifications as licensed public accountants but who do not hold annual permits to practice on July 1, 1983, are not entitled to engage in the practice of public accounting under this chapter unless they meet the requirements imposed by this chapter for certified public accountants. These persons shall not use the term "licensed public accountants" or the designation "LPA."

Sec. 6. Section 9, chapter 234, Laws of 1983 and RCW 18.04.195 are each amended to read as follows:

(1) A partnership engaged in this state in the practice of public accounting shall register with the ((~~board~~)) department as a partnership of certified public accountants, and shall meet the following requirements:

(a) The principal purpose and business of the partnership shall be to furnish services to the public which are consistent with this chapter and the rules of the board;

(b) At least one general partner of the partnership shall be a certified public accountant holding a permit to practice under RCW 18.04.215;

(c) Each resident manager in charge of an office of the partnership in this state and each resident partner personally engaged within this state in the practice of public accounting as a member in the office shall be a certified public accountant holding a permit to practice under RCW 18.04.215.

(2) A corporation organized for the practice of public accounting and engaged in this state in the practice of public accounting shall register with the ((~~board~~)) department as a corporation of certified public accountants and shall meet the following requirements:

(a) The principal purpose and business of the corporation shall be to furnish services to the public which are consistent with this chapter and the rules of the board; and

(b) Each shareholder of the corporation shall be a certified public accountant of some state holding a permit to practice and shall be principally employed by the corporation or actively engaged in its business. No other person may have any interest in the stock of the corporation. The principal officer of the corporation and any officer or director having authority over the practice of public accounting by the corporation shall be a certified public accountant of some state holding a permit to practice;

(c) At least one shareholder of the corporation shall be a certified public accountant holding a permit to practice under RCW 18.04.215;

(d) Each resident manager in charge of an office of the corporation in this state and each shareholder or director personally engaged within this state in the practice of public accounting shall be a certified public accountant holding a permit to practice under RCW 18.04.215;

(e) A written agreement shall bind the corporation or its shareholders to purchase any shares offered for sale by, or not under the ownership or effective control of, a qualified shareholder, and bind any holder not a qualified shareholder to sell the shares to the corporation or its qualified shareholders. The agreement shall be noted on each certificate of corporate stock. The corporation may purchase any amount of its stock for this purpose, notwithstanding any impairment of capital, as long as one share remains outstanding; and

(f) The corporation shall comply with any other rules pertaining to corporations practicing public accounting in this state as the board may prescribe.

(3) Application for registration of a partnership or corporation shall be made upon the affidavit of a general partner or shareholder who is a certified public accountant holding a permit to practice under RCW 18.04.215. The ((~~board~~)) department shall determine in each case whether the applicant is eligible for registration. A partnership or corporation which is so registered and which holds a permit to practice under RCW 18.04.215 may use the designation "certified public accountants" or "CPAs" in connection with its partnership or corporate name. The ((~~board~~)) department shall be given notification within thirty days after the admission or withdrawal of a partner or shareholder engaged in this state in the practice of public accounting from any partnership or corporation so registered.

(4) Fees for the registration of partnerships or corporations and for notification of the ((~~board~~)) department of the admission or withdrawal of a partner or shareholder shall be determined by the ((~~board~~)) director under RCW 43.24.086. Fees shall be paid by the applicant at the time the registration form or notice of admission or withdrawal of a partner or shareholder is filed with the ((~~board~~)) department.

Sec. 7. Section 10, chapter 234, Laws of 1983 and RCW 18.04.205 are each amended to read as follows:

(1) Each office established or maintained in this state for the practice of public accounting in this state by a certified public accountant, or a partnership or corporation of certified public accountants, shall register with the ((~~board~~)) department under this chapter biennially.

Each office shall be under the direct supervision of a resident manager holding a permit to practice under RCW 18.04.215 who may be either a principal shareholder, or a staff employee.

(2) The ((~~board~~)) director shall by rule prescribe the procedure to be followed to register and maintain offices established in this state for the practice of public accounting.

(3) Fees for the registration of offices shall be determined by the ((~~board~~)) director under RCW 43.24.086. Fees shall be paid by the applicant at the time the registration form is filed with the ((~~board~~)) department.

Sec. 8. Section 11, chapter 234, Laws of 1983 and RCW 18.04.215 are each amended to read as follows:

(1) Biennial permits to engage in the practice of public accounting in this state shall be issued by the ((~~board~~)) department:

(a) To certified public accountants who have demonstrated, in accordance with rules issued by the board, one year of public accounting experience, or such other experience or employment which the board in its discretion regards as substantially equivalent;

(b) To partnerships and corporations registered under RCW 18.04.195, if all offices of the partnerships and corporations in this state are maintained and registered as required under RCW 18.04.205.

All permits to practice for persons born in an even-numbered year expire on the last day of June 1984 shall be for one year and may be renewed for a period of two years. All permits to practice for persons born in an odd-numbered year expire on the last day of June 1985 shall be for two years and may be renewed for a period of two years. Renewals of permits to practice issued to individuals under subsection (1) (a) or (b) of this section shall be issued in accordance with subsection (3) of this section. Applicants for issuance or renewal of permits shall, at the time of filing their applications, list with the ((~~board~~)) department all states in which they hold or have applied for permits to practice.

(2) A certified public accountant who holds a permit issued by another state and applies for a permit in this state may practice accounting in this state from the date of filing a completed application with the ((~~board~~)) department until the board has acted upon the application.

(3) As a prerequisite to renewal of a permit, a person practicing public accounting shall submit to the ((~~Washington state board of accountancy~~)) department satisfactory proof of having completed ten days or an accumulation of eighty hours of continuing education recognized and approved by the board during the preceding two years. Failure to furnish this evidence as required constitutes grounds for revocation, suspension, or refusal to renew the permit in a proceeding under RCW 18.04.295, unless the board determines the failure to have been due to reasonable cause or excusable neglect.

The board, in its discretion, may renew a biennial permit to practice despite failure to furnish evidence of compliance with requirements of continuing education upon condition that the applicant follow a particular program of continuing education. In issuing rules and individual orders with respect to continuing education requirements, the board, among other considerations, may rely upon guidelines and pronouncements of recognized educational and professional associations, may prescribe course content, duration, and organization, and shall take into account the accessibility of continuing education to applicants and instances of individual hardship.

(4) Fees for biennial permits to engage in the practice of public accounting in this state shall be determined by the ((~~board~~)) director under ((~~chapter 18.04~~)) RCW 43.24.086. Fees shall be paid by the applicant at the time the registration form is filed with the ((~~board~~)) department.

Sec. 9. Section 31, chapter 226, Laws of 1949 as amended by section 14, chapter 234, Laws of 1983 and RCW 18.04.320 are each amended to read as follows:

(1) Proceedings for the revocation or suspension of the certificate, permit, or registration of any person, partnership, or corporation may be initiated by the board on its own motion, on the complaint of any person, or on receiving notification from another state board of accountancy of its decision to:

(a) Revoke or suspend practice privileges granted in that state to a holder of a certified public accountant certificate or a public accountant registrant of that state; or

(b) Revoke, suspend, refuse to renew, or censure the holder of a permit to practice in that state who holds a permit to practice under RCW 18.04.215;

(2) Unless the charge or charges are dismissed by the board as unfounded or trivial, the board shall set a date for hearing ((not later than ninety days after formal charges are filed. A copy of the charge or charges, together with a notice of the time and place of hearing before the board shall be served not less than thirty days prior to the date set for hearing on the accused either personally or by mailing a copy thereof by registered mail to the address of the accused last known to the board;

(3) If after having been so served with a notice of hearing, the accused fails to appear at the hearing, the board may proceed to hear evidence against him and may enter such order as may be justified by the evidence, which shall be final unless the accused petitions for a review thereof. Within thirty days from the date of any such order upon a showing of good cause for failing to appear, the board may reopen the proceedings and may permit the accused to submit evidence in his or her behalf;

(4) At any hearing the accused may appear in person and by counsel, may produce evidence and witnesses on his or her own behalf, and may cross-examine such witnesses as may appear against him. A partnership may be represented before the board by counsel or by a partner. A corporation may be represented before the board by counsel or by a shareholder. The accused shall be entitled on application to the board to the issuance of subpoenas to compel the attendance of witnesses and the production of evidence on his or her behalf;

(5) The board, or any member thereof, may issue subpoenas to compel the attendance of witnesses and the production of documents, and may administer oaths, take testimony, hear proofs, and receive exhibits in evidence in connection with or upon hearing under this chapter. To compel obedience to a subpoena the board may invoke the aid of any court of this state in requiring the attendance and testimony of witnesses and the production of documentary evidence;

~~(6) The board shall not be bound by technical rules of evidence;~~

~~(9) The decision of the board shall be by majority vote;~~

(10) Any person adversely affected by any action of the board may obtain a review thereof by filing a written petition for review in the superior court of the county in which he resides within thirty days after the entry of such order. A copy of the petition shall be served upon any member of the board and thereupon the board shall certify and file in the court a transcript of the record upon which the order complained of was entered. The court will hear the matter de novo, and may sustain, modify, or set aside the board's order in whole or in part, or may remand the matter to the board for further action, and may, in its discretion, stay the effect of the board's order pending its determination of the case. The court's decision has the force and effect of a decree in equity; and

(11) On rendering a decision to: (a) Revoke or suspend a certificate issued under RCW 18.04.105; (b) revoke or suspend a registration issued under RCW 18.04.195; or (c) revoke, suspend, refuse to renew, or censure the holder of a permit to practice under RCW 18.04.215, the board shall examine its records to determine whether the accused holds a certificate, a registration, or a permit or annual limited permit to practice in any other state. If the board determines that the accused holds a certificate, or a registration in any other state, the board shall notify the board of accountancy of the other state of its decision by mail within thirty days of rendering the decision)) in accordance with chapter 34.04 RCW.

Sec. 10. Section 15, chapter 234, Laws of 1983 and RCW 18.04.335 are each amended to read as follows:

Upon application in writing and after hearing pursuant to notice, the board may, if adequate justification is provided, direct the department to:

(1) Reissue a certificate to a certified public accountant whose certificate has been revoked or suspended; or

(2) Modify the suspension of or reissue any permit to practice which has been revoked, suspended, or which the board has refused to renew.

Sec. 11. Section 34, chapter 226, Laws of 1949 as last amended by section 17, chapter 234, Laws of 1983 and RCW 18.04.350 are each amended to read as follows:

(1) Nothing in this chapter prohibits any person not a certified public accountant from serving as an employee of, or as assistant to, a certified public accountant or partnership composed of certified public accountants or corporation of certified public accountants holding a valid permit under RCW 18.04.215. However, the employee or assistant shall not issue any accounting or financial statement over his or her name.

(2) Nothing in this chapter prohibits a certified public accountant registered in another state, or any accountant of a foreign country holding a certificate, degree or license which permits him to practice therein from temporarily practicing in this state on professional business incident to his regular practice.

(3) Nothing in this chapter prohibits a certified public accountant, a partnership, or corporation of certified public accountants, or any of their employees from disclosing any data in confidence to other certified public accountants, peer review teams, partnerships, or corporations of public accountants engaged in conducting peer reviews, or any one of their employees in connection with peer reviews of that accountant's accounting and auditing practice conducted under the auspices of recognized professional associations.

(4) Nothing in this chapter prohibits a certified public accountant, a partnership, or corporation of certified public accountants, or any of their employees from disclosing any data in confidence to any employee, representative, officer, or committee member of a recognized professional association, or to the board of accountancy, or ((~~any of its employees or committees~~)) the department in connection with a professional ethics investigation held under the auspices of recognized professional associations or the board of accountancy.

(5) Nothing in this chapter prohibits any officer, employee, partner, or principal of any organization:

(a) From affixing his or her signature to any statement or report in reference to the affairs of the organization with any wording designating the position, title, or office which he or she holds in the organization; or

(b) From describing himself or herself by the position, title, or office he or she holds in such organization.

(6) Nothing in this chapter prohibits any person, or partnership or corporation composed of persons not holding a permit under RCW 18.04.215 from offering or rendering to the public bookkeeping, accounting, and tax services, including devising and installing systems, financial information or data, or preparing financial statements, written statements describing how such financial statements were prepared, or similar services, provided that persons, partnerships, or corporations not holding a permit under RCW 18.04.215 who offer or render these services do not designate any written statement as an "audit report," "review report," or "compilation report," do not issue any written statement which purports to express or disclaim an opinion on financial statements which have been audited, and do not issue any written statement which expresses assurance on financial statements which have been reviewed.

(7) Nothing in this chapter prohibits any act of or the use of any words by a public official or a public employee in the performance of his or her duties.

NEW SECTION. Sec. 12. All administrative powers, duties, and functions of the board of accountancy pertaining to the examination of applicants for, the issuance of licenses to, and the discipline of persons engaged in the practice of accountancy under chapter 18.04 RCW are transferred to the department of licensing.

NEW SECTION. Sec. 13. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the board of accountancy and pertaining to the powers, functions, and duties transferred by section 12 of this act shall be delivered to the custody of the department of licensing. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the board of accountancy in carrying out the powers, functions, and duties transferred by section 12 of this act shall be made available to the department of licensing. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 12 of this act shall be assigned to the department of licensing.

Any appropriations made to the board of accountancy for carrying out the powers, functions, and duties transferred by section 12 of this act shall, on the effective date of this act, be transferred and credited to the department of licensing.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.

NEW SECTION. Sec. 14. All classified employees of the board of accountancy engaged in performing the powers, functions, and duties transferred by section 12 of this act are transferred to the jurisdiction of the department of licensing. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of licensing to perform duties within their classifications without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 15. All rules and all pending business before the board of accountancy pertaining to the powers, functions, and duties transferred by section 12 of this act shall be continued and acted upon by the department of licensing. All existing contracts and obligations shall remain in full force and shall be performed by the department of licensing.

NEW SECTION. Sec. 16. The transfer of the powers, duties, functions, and personnel of the board of accountancy shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 17. If apportionments of budgeted funds are required because of the transfers directed by sections 13 through 16 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 18. Nothing contained in sections 12 through 17 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

Sec. 19. Section 3, chapter 98, Laws of 1935 as last amended by section 2, chapter 153, Laws of 1984 and RCW 18.64.005 are each amended to read as follows:

The board shall:

(1) Regulate the practice of pharmacy and ((~~administer and~~)) enforce all laws placed under its jurisdiction;

(2) Prepare((,)) and grade, ((~~and administer~~)) or determine the nature of, and supervise the grading ((~~and administration~~)) of, examinations for applicants for pharmacists' licenses;

(3) Examine, inspect, and investigate all applicants for license as pharmacists or pharmacy interns and grant licenses to all applicants whom it shall judge to be properly qualified;

(4) ((Establish reasonable fees for licenses, examinations, and services for other agencies sufficient to cover the cost of the operations of the board. In cases where there are unanticipated demands for services the board may request payment for services directly from the agencies for whom the services are performed, to the extent that revenues or other funds are available. Drug-related investigations regarding licensed health care practitioners shall be funded by an appropriation to the board from the health professions account. The payment may be made on either an advance or a reimbursable basis as approved by the director of financial management;

~~(5) Employ an executive officer, inspectors, investigators, chemists, and other agents as necessary to assist it for any purpose which it may deem necessary;~~

~~(6) Investigate violations of the provisions of law or regulations under its jurisdiction, and cause prosecutions to be instituted in the courts;~~

(7) Make inspections and investigations of pharmacies and other places, including dispensing machines, in which drugs or devices are stored, held, compounded, dispensed, sold, or administered to the ultimate consumer, to take and analyze any drugs or devices and to seize and condemn any drugs or devices which are adulterated, misbranded, stored, held, dispensed, distributed, administered, or compounded in violation of or contrary to law;

~~(8)~~)) Conduct hearings for the revocation or suspension of licenses, permits, registrations, certificates, or any other authority to practice granted by the board, which hearings may also be conducted by an administrative law judge appointed under chapter 34.12 RCW;

((~~(9)~~)) (5) Issue subpoenas and administer oaths in connection with any ((~~investigation,~~)) hearing, or disciplinary proceeding held under this chapter or any other chapter assigned to the board;

((~~(10)~~)) (6) Assist the regularly constituted enforcement agencies of this state in enforcing all laws pertaining to drugs, controlled substances, and the practice of pharmacy, and/or any other laws or rules under its jurisdiction;

((~~(11)~~)) (7) Promulgate rules for the dispensing, distribution, wholesaling, and manufacturing of drugs and devices and the practice of pharmacy for the protection and promotion of the public health, safety, and welfare. Violation of any such rules shall constitute grounds for refusal, suspension, or revocation of licenses or any other authority to practice issued by the board;

((~~(12)~~)) (8) Adopt rules establishing and governing continuing education requirements for pharmacists and other licensees applying for renewal of licenses under this chapter;

((~~(13)~~)) (9) Be immune, collectively and individually, from suit in any action, civil or criminal, based upon any disciplinary proceedings or other official acts performed in good faith as members of such board. Such immunity shall apply to employees of the ((~~board when acting at the direction of the board in the course of disciplinary proceedings~~)) department;

((~~(14)~~)) (10) Establish an interdepartmental coordinating committee on drug misuse, diversion, and abuse, composed of one member from each caucus of the house of representatives and senate, the superintendent of public instruction, the director of licensing, the executive secretary of the criminal justice training commission, the chief of the Washington state patrol, the secretary of social and health services, director of the traffic safety commission, representatives of prescribing, delivering, and dispensing health care practitioner boards, the attorney general, the director of the department of labor and industries, a representative of local law enforcement agencies, and the executive officer of the board of pharmacy, or their designees. The committee shall meet at least twice annually at the call of the executive officer of the board of pharmacy who shall serve as chairperson of the committee. The committee shall advise the board of pharmacy in all matters related to its powers and duties delineated in subsections ((~~(15), (16), (17), (18) and (19)~~)) (11), (12), (13), (14) and (15) of this section, and shall report to the legislature each biennium on the results of its and the board's activity under those subsections;

((~~(15)~~)) (11) Provide for the coordination and exchange of information on state programs relating to drug misuse, diversion, and abuse, and act as a permanent liaison among the departments and agencies engaged in activities concerning the legal and illegal use of drugs;

((~~(16)~~)) (12) Suggest strategies for preventing, reducing, and eliminating drug misuse, diversion, and abuse, including professional and public education, and treatment of persons misusing and abusing drugs;

((~~(17)~~)) (13) Conduct or encourage educational programs to be conducted to prevent the misuse, diversion, and abuse of drugs for health care practitioners and licensed or certified health care facilities;

((~~(18)~~)) (14) Monitor trends of drug misuse, diversion, and abuse and make periodic reports to disciplinary boards of licensed health care practitioners and education, treatment, and appropriate law enforcement agencies regarding these trends;

((~~(19)~~)) (15) Enter into written agreements with all other state and federal agencies with any responsibility for controlling drug misuse, diversion, or abuse and with health maintenance organizations, health care service contractors, and health care providers to assist and promote coordination of agencies responsible for ensuring compliance with controlled substances laws and to monitor observance of these laws and cooperation between these agencies. The department of social and health services((,)) and the department of labor and industries((~~, the department of licensing, and any other state agency including licensure disciplinary boards,~~)) shall refer all apparent instances of over-prescribing by practitioners and all apparent instances of legend drug overuse to the ((~~board~~)) department. The ((~~board~~)) department shall also encourage such referral by health maintenance organizations, health service contractors, and health care providers.

NEW SECTION. Sec. 20. A new section is added to chapter 18.64 RCW to read as follows:

The department shall:

(1) Establish reasonable fees for licenses, examinations, and services for other agencies sufficient to cover the cost of the operations of the department. Fees shall be set in accordance with RCW 43.24.086. In cases where there are unanticipated demands for services, the department may request payment for services directly from the agencies for whom the services are performed, to the extent that revenues or other funds are available. Drug-related investigations regarding licensed health care practitioners shall be funded by an appropriation to the department from the health professions account. The payment may be made on either an advance or a reimbursable basis as approved by the director of financial management;

(2) Employ an executive officer, inspectors, investigators, chemists, and other persons as necessary to assist it for any purpose which it may deem necessary;

(3) Investigate and prosecute, including use of subpoena powers, violations of law or regulations under its jurisdiction;

(4) Make inspections and investigations of pharmacies and other places, including dispensing machines, in which drugs or devices are stored, held, compounded, dispensed, sold, or administered to the ultimate consumer, to take and analyze any drugs or devices and to seize and condemn any drugs or devices which are adulterated, misbranded, stored, held, dispensed, distributed, administered, or compounded in violation of or contrary to law.

Sec. 21. Section 19, chapter 38, Laws of 1963 as amended by section 3, chapter 90, Laws of 1979 and RCW 18.64.007 are each amended to read as follows:

The ((~~board~~)) director shall employ an executive officer who shall not be a member of the board but who shall be a pharmacist duly licensed in Washington. Said officer shall receive compensation as set by the appropriate authority, and shall be responsible for((:

~~(1)~~)) the administering of all professional and public affairs as directed by the ((~~board;~~

~~(2) Appointing, as authorized and delegated by the board, such secretarial, clerical, accounting, and other office assistance as necessary under provisions of chapter 41.06 RCW;~~

~~(3) Reporting to and carrying out all policies and instructions emanating from the board;~~

~~(4) Preparing and maintaining all board records;~~

~~(5) Attending to the correspondence of the board; and~~

~~(6) Receiving and receipting for all fees collected~~)) director. The department shall employ other personnel as necessary to administer this chapter.

Sec. 22. Section 1, chapter 82, Laws of 1969 ex. sess. as last amended by section 59, chapter 7, Laws of 1985 and RCW 18.64.009 are each amended to read as follows:

Employees of the ((~~Washington state board of pharmacy~~)) department, who are designated by the ((~~board~~)) department as enforcement officers, are declared to be peace officers and shall be vested with police powers to enforce chapters 18.64, 69.04, 69.36, 69.40, 69.41, and 69.50 RCW ((~~and all other laws administered by the board~~)).

Sec. 23. Section 1, chapter 38, Laws of 1963 as last amended by section 3, chapter 153, Laws of 1984 and RCW 18.64.011 are each amended to read as follows:

Unless the context clearly requires otherwise, definitions of terms shall be as indicated when used in this chapter.

(1) "Person" means an individual, corporation, government, governmental subdivision or agency, business trust, estate, trust, partnership or association, or any other legal entity.

(2) "Board" means the Washington state board of pharmacy.

(3) "Drugs" means:

(a) Articles recognized in the official United States pharmacopoeia or the official homeopathic pharmacopoeia of the United States;

(b) Substances intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals;

(c) Substances (other than food) intended to affect the structure or any function of the body of man or other animals; or

(d) Substances intended for use as a component of any substances specified in (a), (b), or (c) of this subsection, but not including devices or their component parts or accessories.

(4) "Device" means instruments, apparatus, and contrivances, including their components, parts, and accessories, intended (a) for use in the diagnosis, cure, mitigation, treatment, or prevention of disease in man or other animals, or (b) to affect the structure or any function of the body of man or other animals.

(5) "Nonlegend" or "nonprescription" drugs means any drugs which may be lawfully sold without a prescription.

(6) "Legend drugs" means any drugs which are required by any applicable federal or state law or regulation to be dispensed on prescription only or are restricted to use by practitioners only.

(7) "Controlled substance" means a drug or substance, or an immediate precursor of such drug or substance, so designated under or pursuant to the provisions of chapter 69.50 RCW.

(8) "Prescription" means an order for drugs or devices issued by a practitioner duly authorized by law or rule in the state of Washington to prescribe drugs or devices in the course of his or her professional practice for a legitimate medical purpose.

(9) "Practitioner" means a physician, dentist, veterinarian, nurse, or other person duly authorized by law or rule in the state of Washington to prescribe drugs.

(10) "Pharmacist" means a person duly licensed by the Washington state board of pharmacy to engage in the practice of pharmacy.

(11) "Practice of pharmacy" includes the practice of and responsibility for: Interpreting prescription orders; the compounding, dispensing, labeling, administering, and distributing of drugs and devices; the monitoring of drug therapy and use; the initiating or modifying of drug therapy in accordance with written guidelines or protocols previously established and approved for his or her practice by a practitioner authorized to prescribe drugs; the participating in drug utilization reviews and drug product selection; the proper and safe storing and distributing of drugs and devices and maintenance of proper records thereof; the providing of information on legend drugs which may include, but is not limited to, the advising of therapeutic values, hazards, and the uses of drugs and devices.

(12) "Pharmacy" means every place properly licensed by the board of pharmacy where the practice of pharmacy is conducted.

(13) The words "drug" and "devices" shall not include surgical or dental instruments or laboratory materials, gas and oxygen, therapy equipment, X-ray apparatus or therapeutic equipment, their component parts or accessories, or equipment, instruments, apparatus, or contrivances used to render such articles effective in medical, surgical, or dental treatment, or for use or consumption in or for mechanical, industrial, manufacturing, or scientific applications or purposes, nor shall the word "drug" include any article or mixture covered by the Washington pesticide control act (chapter 15.58 RCW), as enacted or hereafter amended, nor medicated feed intended for and used exclusively as a feed for animals other than man.

(14) The word "poison" shall not include any article or mixture covered by the Washington pesticide control act (chapter 15.58 RCW), as enacted or hereafter amended.

(15) "Deliver" or "delivery" means the actual, constructive, or attempted transfer from one person to another of a drug or device, whether or not there is an agency relationship.

(16) "Dispense" means the interpretation of a prescription or order for a drug, biological, or device and, pursuant to that prescription or order, the proper selection, measuring, compounding, labeling, or packaging necessary to prepare that prescription or order for delivery.

(17) "Distribute" means the delivery of a drug or device other than by administering or dispensing.

(18) "Compounding" shall be the act of combining two or more ingredients in the preparation of a prescription.

(19) "Wholesaler" shall mean a corporation, individual, or other entity which buys drugs or devices for resale and distribution to corporations, individuals, or entities other than consumers.

(20) "Manufacture" means the production, preparation, propagation, compounding, or processing of a drug or other substance or device or the packaging or repackaging of such substance or device, or the labeling or relabeling of the commercial container of such substance or device, but does not include the activities of a practitioner who, as an incident to his or her administration or dispensing such substance or device in the course of his or her professional practice, prepares, compounds, packages, or labels such substance or device.

(21) "Manufacturer" shall mean a person, corporation, or other entity engaged in the manufacture of drugs or devices.

(22) "Labeling" shall mean the process of preparing and affixing a label to any drug or device container. The label must include all information required by current federal and state law and pharmacy rules.

(23) "Administer" means the direct application of a drug or device, whether by injection, inhalation, ingestion, or any other means, to the body of a patient or research subject.

(24) "Master license system" means the mechanism established by chapter 19.02 RCW by which master licenses, endorsed for individual state-issued licenses, are issued and renewed utilizing a master application and a master license expiration date common to each renewable license endorsement.

(25) "Department" means the department of licensing.

(26) "Director" means the director of the department of licensing or the director's designee.

Sec. 24. Section 10, chapter 121, Laws of 1899 as last amended by section 7, chapter 90, Laws of 1979 and RCW 18.64.040 are each amended to read as follows:

Every applicant for license examination under this chapter shall pay the sum determined by the ((~~board~~)) director under RCW 43.24.086 before the examination is attempted.

Sec. 25. Section 12, chapter 213, Laws of 1909 as last amended by section 4, chapter 153, Laws of 1984 and RCW 18.64.043 are each amended to read as follows:

(1) The owner of each pharmacy shall pay an original license fee to be determined by the ((~~board~~)) director, and annually thereafter, on or before a date to be determined by the ((~~board~~)) director, a fee to be determined by the ((~~board~~)) director, for which he or she shall receive a license of location, which shall entitle the owner to operate such pharmacy at the location specified, or such other temporary location as the ((~~board~~)) director may approve, for the period ending on a date to be determined by the ((~~board~~)) director, and each such owner shall at the time of filing proof of payment of such fee as provided in RCW 18.64.045 as now or hereafter amended, file with the ((~~state board of pharmacy~~)) department on a blank therefor provided, a declaration of ownership and location, which declaration of ownership and location so filed as aforesaid shall be deemed presumptive evidence of ownership of the pharmacy mentioned therein.

(2) It shall be the duty of the owner to immediately notify the ((~~board~~)) department of any change of location and/or ownership and to keep the license of location or the renewal thereof properly exhibited in said pharmacy.

(3) Failure to comply with this section shall be deemed a misdemeanor, and each day that said failure continues shall be deemed a separate offense.

(4) In the event such license fee remains unpaid for sixty days from date due, no renewal or new license shall be issued except upon payment of the license renewal fee and a penalty fee equal to the original license fee.

Sec. 26. Section 17, chapter 90, Laws of 1979 as last amended by section 5, chapter 153, Laws of 1984 and RCW 18.64.044 are each amended to read as follows:

(1) A shopkeeper registered or exempt from registration as provided in this section may sell nonprescription drugs, if such drugs are sold in the original package of the manufacturer. Shopkeepers with fifteen or fewer drugs shall be exempt from the registration requirements of this section and shall not be required to pay any fees required by this section, but shall be considered shopkeepers for any other purposes under chapter 18.64 RCW.

(2) Every shopkeeper not a licensed pharmacist, desiring to secure the benefits and privileges of this section, is hereby required to register as a shopkeeper through the master license system, and he or she shall pay the fee determined by the ((~~board~~)) director for registration, and on a date to be determined by the ((~~board~~)) director thereafter the fee determined by the ((~~board~~)) director for renewal of the registration; and shall at all times keep said registration or the current renewal thereof conspicuously exposed in the shop to which it applies. In event such shopkeeper's registration is not renewed by the master license expiration date, no renewal or new registration shall be issued except upon payment of the registration renewal fee and the master license delinquency fee under chapter 19.02 RCW. This registration fee shall not authorize the sale of legend drugs or controlled substances.

(3) The registration fees determined by the ((~~board~~)) director under subsection (2) of this section shall not exceed the cost of registering the shopkeeper.

(4) Any shopkeeper who shall vend or sell, or offer to sell to the public any such nonprescription drug or preparation without having registered to do so as provided in this section, shall be guilty of a misdemeanor and each sale or offer to sell shall constitute a separate offense.

Sec. 27. Section 5, chapter 153, Laws of 1949 as last amended by section 6, chapter 153, Laws of 1984 and RCW 18.64.045 are each amended to read as follows:

The owner of each and every place of business which manufactures drugs shall pay a license fee to be determined by the ((~~board~~)) director, and thereafter, on or before a date to be determined by the ((~~board~~)) director, a fee to be determined by the ((~~board~~)) director, for which the owner shall receive a license of location from the ((~~state board of pharmacy~~)) department, which shall entitle the owner to manufacture drugs at the location specified for the period ending on a date to be determined by the ((~~board~~)) director, and each such owner shall at the time of payment of such fee file with the ((~~state board of pharmacy~~)) department, on a blank therefor provided, a declaration of ownership and location, which declaration of ownership and location so filed as aforesaid shall be deemed presumptive evidence of the ownership of such place of business mentioned therein. It shall be the duty of the owner to notify immediately the ((~~board~~)) department of any change of location and/or ownership and to keep the license of location or the renewal thereof properly exhibited in such place of business. Failure to conform with this section shall be deemed a misdemeanor, and each day that said failure continues shall be deemed a separate offense. In event such license fee remains unpaid for sixty days from date due, no renewal or new license shall be issued except upon payment of the license renewal fee and a penalty fee equal to the license renewal fee.

Sec. 28. Section 18, chapter 90, Laws of 1979 as amended by section 7, chapter 153, Laws of 1984 and RCW 18.64.046 are each amended to read as follows:

The owner of each place of business which sells legend drugs and nonprescription drugs, or nonprescription drugs at wholesale shall pay a license fee to be determined by the ((~~board~~)) director, and thereafter, on or before a date to be determined by the ((~~board~~)) director, a like fee to be determined by the ((~~board~~)) director, for which the owner shall receive a license of location from the ((~~state board of pharmacy~~)) department, which shall entitle such owner to either sell legend drugs and nonprescription drugs or nonprescription drugs at wholesale at the location specified for the period ending on a date to be determined by the ((~~board~~)) director, and each such owner shall at the time of payment of such fee file with the ((~~state board of pharmacy~~)) department, on a blank therefor provided, a declaration of ownership and location, which declaration of ownership and location so filed as aforesaid shall be deemed presumptive evidence of the ownership of such place of business mentioned therein. It shall be the duty of the owner to notify immediately the ((~~board~~)) department of any change of location and ownership and to keep the license of location or the renewal thereof properly exhibited in such place of business. Failure to conform with this section shall be deemed a misdemeanor, and each day that said failure continues shall be deemed a separate offense. In event such license fee remains unpaid for sixty days from date due, no renewal or new license shall be issued except upon payment of the license renewal fee and a penalty fee equal to the license renewal fee.

Sec. 29. Section 16, chapter 121, Laws of 1899 as last amended by section 8, chapter 153, Laws of 1984 and RCW 18.64.047 are each amended to read as follows:

Any itinerant vendor or any peddler of any nonprescription drug or preparation for the treatment of disease or injury, shall pay a registration fee determined by the ((~~board~~)) director on a date to be determined by the ((~~board~~)) director. The ((~~state board of pharmacy~~)) department may issue a registration to such vendor on an approved application made to the ((~~state board of pharmacy~~)) department. Any itinerant vendor or peddler who shall vend or sell, or offer to sell to the public any such nonprescription drug or preparation without having registered to do so as provided in this section, shall be guilty of a misdemeanor and each sale or offer to sell shall constitute a separate offense. In event such registration fee remains unpaid for sixty days from date due, no renewal or new registration shall be issued except upon payment of the registration renewal fee and a penalty fee equal to the renewal fee. This registration shall not authorize the sale of legend drugs or controlled substances.

Sec. 30. Section 9, chapter 98, Laws of 1935 as last amended by section 9, chapter 153, Laws of 1984 and RCW 18.64.050 are each amended to read as follows:

In the event that a license or certificate issued by the ((~~board of pharmacy~~)) department is lost or destroyed, the person to whom it was issued may obtain a duplicate thereof upon furnishing proof of such fact satisfactory to the ((~~board of pharmacy~~)) department and the payment of a fee determined by the ((~~board of pharmacy~~)) director.

In the event any person desires any certified document to which he is entitled, he shall receive the same upon payment of a fee determined by the ((~~board of pharmacy~~)) director.

Sec. 31. Section 1, chapter 9, Laws of 1972 ex. sess. as last amended by section 10, chapter 153, Laws of 1984 and RCW 18.64.080 are each amended to read as follows:

(1) The ((~~state board of pharmacy~~)) department may license as a pharmacist any person who has filed an application therefor, subscribed by the person under oath or affirmation, containing such information as the board may by regulation require, and who‑-

(a) Is at least eighteen years of age and is a citizen of the United States, an alien in an educational pharmacy graduate or residency program for the period of the program, or a resident alien;

(b) Has satisfied the ((~~board~~)) department that he or she is of good moral and professional character, that he or she will carry out the duties and responsibilities required of a pharmacist, and that he or she is not unfit or unable to practice pharmacy by reason of the extent or manner of his or her proven use of alcoholic beverages, drugs, or controlled substances, or by reason of a proven physical or mental disability;

(c) Holds a baccalaureate degree in pharmacy or a doctor of pharmacy degree granted by a school or college of pharmacy which is accredited by the board of pharmacy;

(d) Has completed or has otherwise met the internship requirements as set forth in board rules;

(e) Has satisfactorily passed the necessary examinations ((~~given~~)) approved by the board and administered by the department.

(2) The ((~~state board of pharmacy~~)) department shall, at least once in every calendar year, offer an examination to all applicants for a pharmacist license who have completed their educational and internship requirements pursuant to rules promulgated by the board. The ((~~said~~)) examination shall be determined by the board. In case of failure at a first examination, the applicant shall have within three years the privilege of a second and third examination. In case of failure in a third examination, the applicant shall not be eligible for further examination until he or she has satisfactorily completed additional preparation as directed and approved by the board. The applicant must pay the examination fee determined by the ((~~board~~)) director for each examination taken. Upon passing the required examinations and complying with all the rules and regulations of the board and the provisions of this chapter, the ((~~board~~)) department shall grant the applicant a license as a pharmacist and issue to him or her a certificate qualifying him or her to enter into the practice of pharmacy.

(3) Any person enrolled as a student of pharmacy in an accredited college may file with the ((~~state board of pharmacy~~)) department an application for registration as a pharmacy intern in which ((~~said~~)) application he or she shall be required to furnish such information as the board may, by regulation, prescribe and, simultaneously with the filing of said application, shall pay to the ((~~board~~)) department a fee to be determined by the ((~~board~~)) director. All certificates issued to pharmacy interns shall be valid for a period to be determined by the ((~~board~~)) director, but in no instance shall the certificate be valid if the individual is no longer making timely progress toward graduation, provided however, the ((~~board~~)) department may issue an intern certificate to a person to complete an internship to be eligible for initial licensure or for the reinstatement of a previously licensed pharmacist.

(4) To assure adequate practical instruction, pharmacy internship experience as required under this chapter shall be obtained after registration as a pharmacy intern by practice in any licensed pharmacy or other program meeting the requirements promulgated by regulation of the board, and shall include such instruction in the practice of pharmacy as the board by regulation shall prescribe.

(5) The ((~~board~~)) department may, without examination other than one in the laws relating to the practice of pharmacy, license as a pharmacist any person who, at the time of filing application therefor, is currently licensed as a pharmacist in any other state, territory, or possession of the United States: PROVIDED, That the ((~~said~~)) person shall produce evidence satisfactory to the board of having had the required secondary and professional education and training and who was licensed as a pharmacist by examination in another state prior to June 13, 1963, shall be required to satisfy only the requirements which existed in this state at the time he or she became licensed in such other state: PROVIDED FURTHER, That the state in which ((~~said~~)) the person is licensed shall under similar conditions grant reciprocal licenses as pharmacist without examination to pharmacists duly licensed by examination in this state. Every application under this subsection shall be accompanied by a fee determined by the ((~~board~~)) department.

(6) The ((~~board~~)) department shall provide for, regulate, and require all persons licensed as pharmacists to renew their license periodically, and shall prescribe the form of such license and information required to be submitted by all applicants.

Sec. 32. Section 11, chapter 121, Laws of 1899 as last amended by section 11, chapter 153, Laws of 1984 and RCW 18.64.140 are each amended to read as follows:

Every licensed pharmacist who desires to practice pharmacy shall secure from the ((~~board~~)) department a license, the fee for which shall be determined by the ((~~board~~)) director. The renewal fee shall also be determined by the ((~~board~~)) director. The date of renewal may be established by the ((~~board~~)) director by regulation and the ((~~board~~)) department may by regulation extend the duration of a licensing period for the purpose of staggering renewal periods. Such regulation may provide a method for imposing and collecting such additional proportional fee as may be required for the extended period. Payment of this fee shall entitle the licensee to a pharmacy law book, subsequent current mailings of all additions, changes, or deletions in the pharmacy practice act, chapter 18.64 RCW, and all additions, changes, or deletions of pharmacy board and department regulations. Pharmacists shall pay the license renewal fee and a penalty equal to the license renewal fee for the late renewal of their license more than sixty days after the renewal is due. The current license shall be conspicuously displayed to the public in the pharmacy to which it applies. Any licensed pharmacist who desires to leave the active practice of pharmacy in this state may secure from the board an inactive license. The initial license and renewal fees shall be determined by the ((~~board~~)) director. The holder of an inactive license may reactivate his or her license to practice pharmacy in accordance with rules adopted by the board.

NEW SECTION. Sec. 33. All administrative powers, duties, and functions of the board of pharmacy pertaining to the examination of applicants for the issuance of licenses to, and the discipline of persons engaged in the practice of pharmacy are transferred to the department of licensing.

NEW SECTION. Sec. 34. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the board of pharmacy and pertaining to the powers, functions, and duties transferred by section 33 of this act shall be delivered to the custody of the department of licensing. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the board of pharmacy in carrying out the powers, functions, and duties transferred by section 33 of this act shall be made available to the department of licensing. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 33 of this act shall be assigned to the department of licensing.

Any appropriations made to the board of pharmacy for carrying out the powers, functions, and duties transferred by section 33 of this act shall, on the effective date of this act, be transferred and credited to the department of licensing.

NEW SECTION. Sec. 35. All classified employees of the board of pharmacy engaged in performing the powers, functions, and duties transferred by section 33 of this act are transferred to the jurisdiction of the department of licensing. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of licensing to perform duties within their classifications without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 36. All rules and all pending business before the board of pharmacy pertaining to the powers, functions, and duties transferred by section 33 of this act shall be continued and acted upon by the department of licensing. All existing contracts and obligations shall remain in full force and shall be performed by the department of licensing.

NEW SECTION. Sec. 37. The transfer of the powers, duties, functions, and personnel of the board of pharmacy shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 38. If apportionments of budgeted funds are required because of the transfers directed by sections 34 through 37 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 39. Nothing contained in sections 33 through 38 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

Sec. 40. Section 27, chapter 290, Laws of 1953 and RCW 68.05.020 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

((~~The term~~)) (1) "Board" ((~~used in this chapter~~)) means the cemetery board.

(2) "Department" means the department of licensing.

(3) "Director" means the director of the department of licensing.

Sec. 41. Section 34, chapter 290, Laws of 1953 and RCW 68.05.070 are each amended to read as follows:

The board shall elect annually a chairman and vice chairman and such other officers as it shall determine from among its members. ((Subject to the provisions of law the board may employ, fix the salaries of and prescribe the duties of, one administrative assistant and such clerical, technical and other employees as are necessary in the carrying out of its duties.))

NEW SECTION. Sec. 42. A new section is added to chapter 68.05 RCW to read as follows:

The department shall employ staff to administer this chapter.

Sec. 43. Section 39, chapter 290, Laws of 1953 as amended by section 6, chapter 21, Laws of 1979 and RCW 68.05.090 are each amended to read as follows:

The board shall enforce ((~~and administer~~)) the provisions of chapters 68.04 through 68.46 RCW, subject to provisions of RCW 68.05.280 and shall have standing to seek enforcement of said provisions in the superior court of the state of Washington for the county in which the principal office of the cemetery authority is located. The board or the department may refer such evidence as may be available concerning violations of chapters 68.04 through 68.46 RCW or of any rule or order promulgated by the board to the attorney general or the proper prosecuting attorney, who may in his discretion, with or without such a reference, in addition to any other action the board might commence, bring an action in the name of the board or the department against any person to restrain and prevent the doing of any act or practice prohibited or declared unlawful in chapters 68.04 through 68.46 RCW.

Sec. 44. Section 36, chapter 290, Laws of 1953 as amended by section 8, chapter 402, Laws of 1985 and RCW 68.05.100 are each amended to read as follows:

The board may establish necessary rules and regulations for the ((~~administration and~~)) enforcement of this title and the laws subject to its jurisdiction and the department shall prescribe the form of statements and reports provided for in this title: PROVIDED, HOWEVER, The board shall have no jurisdiction with regard to the provisions of chapter 68.48 RCW. Rules regulating the cremation of human remains and establishing ((~~fees and~~)) permit requirements shall be adopted in consultation with the state board of funeral directors and embalmers.

Sec. 45. Section 42, chapter 290, Laws of 1953 as last amended by section 7, chapter 21, Laws of 1979 and RCW 68.05.130 are each amended to read as follows:

The ((~~board~~)) department shall examine the endowment care and prearrangement trust fund or funds of a cemetery authority:

(1) Whenever it deems necessary, but at least once every three years after the original examination except where the cemetery authority is either required by the board to, or voluntarily files an annual financial report for the fund certified by a certified public accountant or a licensed public accountant in accordance with generally accepted auditing standards;

(2) Whenever the cemetery authority in charge of endowment care or prearrangement trust fund or funds fails after reasonable notice from the ((~~board~~)) department to file the reports required by this chapter; or

(3) Whenever it is requested by verified petition signed by twenty-five lot owners alleging that the endowment care funds are not in compliance with this title, or whenever it is requested by verified petition signed by twenty-five purchasers or beneficiaries of prearrangement merchandise or services alleging that the prearrangement trust funds are not in compliance with this title, in either of which cases, the examination shall be at the expense of the petitioners.

(4) The expense of the endowment care and prearrangement trust fund examination as provided in subdivisions (1) and (2) shall be paid by the cemetery authority. Such examination shall be privately conducted in the principal office of the cemetery authority.

Sec. 46. Section 43, chapter 290, Laws of 1953 as amended by section 13, chapter 68, Laws of 1973 1st ex. sess. and RCW 68.05.140 are each amended to read as follows:

If any cemetery authority refuses to pay any examination expenses in advance, the board shall refuse it a certificate of authority and shall revoke any existing certificate of authority. All examination expense moneys collected by the ((~~board~~)) department shall be paid into the state treasury to the credit of the cemetery ((~~fund~~)) account.

Sec. 47. Section 44, chapter 290, Laws of 1953 as last amended by section 8, chapter 21, Laws of 1979 and RCW 68.05.150 are each amended to read as follows:

In making such examination the ((~~board~~)) department:

(1) Shall have free access to the books and records relating to the endowment care funds, their collection and investment, and the number of graves, crypts, and niches under endowment care;

(2) Shall inspect and examine the endowment care funds to determine their condition and the existence of the investments;

(3) Shall ascertain if the cemetery authority has complied with all the laws applicable to endowment care funds;

(4) Shall have free access to all records required to be maintained pursuant to this chapter and to chapter 68.46 RCW with respect to prearrangement merchandise or services, unconstructed crypts or niches, or undeveloped graves; and

(5) Shall ascertain if the cemetery authority has complied with the laws applicable to prearrangement trust funds.

Sec. 48. Section 45, chapter 290, Laws of 1953 as last amended by section 9, chapter 21, Laws of 1979 and RCW 68.05.160 are each amended to read as follows:

If any examination made by the ((~~board~~)) department, or any report filed with it, shows that there has not been collected and deposited in the endowment care funds the minimum amounts required by this title, or if the board finds that the cemetery authority has failed to comply with the requirements of this chapter and chapter 68.46 RCW with respect to prearrangement contracts, merchandise, or services, unconstructed crypts or niches or undeveloped graves, or prearrangement trust funds, the board shall require such cemetery authority to comply with this chapter or with chapter 68.40 or 68.46 RCW, as the case may be.

Sec. 49. Section 40, chapter 290, Laws of 1953 as last amended by section 10, chapter 21, Laws of 1979 and RCW 68.05.180 are each amended to read as follows:

Each cemetery authority in charge of cemetery endowment care funds shall annually, and within ninety days after the end of the calendar or fiscal year of the cemetery authority, file with the ((~~board~~)) department a written report in form and content prescribed by the ((~~board~~)) department.

These reports shall be verified by the president or vice president, one other officer of the cemetery authority, the accountant or auditor preparing the same, and, if required by the ((~~board~~)) department for good cause, a certified public accountant in accordance with generally accepted auditing standards.

Sec. 50. Section 41, chapter 290, Laws of 1953 and RCW 68.05.190 are each amended to read as follows:

The ((~~board~~)) department shall examine the reports filed with it as to their compliance with the requirements of the law.

Sec. 51. Section 47, chapter 290, Laws of 1953 and RCW 68.05.200 are each amended to read as follows:

Applications in writing for a certificate of authority shall be made by a cemetery authority to the ((~~board~~)) department accompanied by the regulatory charge provided for in this title. Such application must show that the cemetery authority owns or is actively operating a cemetery which is subject to the provisions of this title.

Sec. 52. Section 48, chapter 290, Laws of 1953 as amended by section 2, chapter 99, Laws of 1969 ex. sess. and RCW 68.05.210 are each amended to read as follows:

The ((~~board~~)) department may require such proof as it deems advisable concerning the compliance by such applicant to all the laws, rules, regulations, ordinances and orders applicable to it. The ((~~board~~)) department shall also require proof that the applicant and its officers and directors are financially responsible, trustworthy and have good personal and business reputations, in order that only cemeteries of permanent benefit to the community in which they are located will be established in this state.

Sec. 53. Section 50, chapter 290, Laws of 1953 as amended by section 3, chapter 99, Laws of 1969 ex. sess. and RCW 68.05.220 are each amended to read as follows:

The regulatory charges for cemetery certificates at all periods of the year are the same as provided in this chapter. All regulatory charges are payable at the time of the filing of the application and in advance of the issuance of the certificates. All certificates shall be issued for the year and shall expire at midnight, the thirtieth day of January of each year, or at whatever time during any year that ownership or control of any cemetery authority is transferred or sold. Cemetery certificates shall not be transferable. Failure to pay the regulatory charge fixed by the ((~~board~~)) department prior to the first day of February for any year automatically shall suspend the certificate of authority. Such certificate may be restored upon payment to the ((~~board~~)) department of the prescribed charges.

Sec. 54. Section 51, chapter 290, Laws of 1953 as last amended by section 1, chapter 5, Laws of 1983 1st ex. sess. and RCW 68.05.230 are each amended to read as follows:

Every cemetery authority shall pay for each cemetery operated by it, an annual regulatory charge to be fixed by the ((~~board~~)) department of not more than four dollars per interment, entombment, and inurnment made during the preceding full calendar year, which charges shall be deposited in the cemetery account. Upon payment of said charges and compliance with the provisions of Title 68 RCW and the lawful orders, rules, and regulations of the board, the ((~~board~~)) department will issue a certificate of authority.

Sec. 55. Section 5, chapter 99, Laws of 1969 ex. sess. as last amended by section 11, chapter 21, Laws of 1979 and RCW 68.05.255 are each amended to read as follows:

Prior to the sale or transfer of ownership or control of any cemetery authority, any person, corporation or other legal entity desiring to acquire such ownership or control shall apply in writing for a new certificate of authority to operate a cemetery and shall comply with all provisions of Title 68 RCW relating to applications for, and the basis for granting, an original certificate of authority. The ((~~board~~)) department shall, in addition, enter any order deemed necessary for the protection of all endowment care funds and/or prearrangement trust fund during such transfer. As a condition of applying for a new certificate of authority, the entity desiring to acquire such ownership or control must agree to be bound by all then existing prearrangement contracts and the ((~~board~~)) department shall enter that agreement as a condition of the transfer. Persons and business entities selling and persons and business entities purchasing ownership or control of a cemetery authority shall each file an endowment care fund report and/or a prearrangement trust fund report showing the status of such funds immediately before and immediately after such transfer on a written report form prescribed by the ((~~board~~)) department. Failure to comply with this section shall be a gross misdemeanor and any sale or transfer in violation of this section shall be void.

Sec. 56. Section 4, chapter 402, Laws of 1985 and RCW 68.05.257 are each amended to read as follows:

A permit or endorsement issued by the ((~~cemetery board~~)) department or under chapter 18.39 RCW is required in order to operate a crematory or conduct a cremation. Conducting a cremation without a permit or endorsement is a misdemeanor. Each such cremation is a separate violation. Crematories owned or operated by or located on property licensed as a funeral establishment shall be regulated by the board of funeral directors and embalmers. Crematories not affiliated with a funeral establishment shall be regulated by the cemetery board.

Sec. 57. Section 29, chapter 290, Laws of 1953 and RCW 68.05.270 are each amended to read as follows:

There shall be, in ((~~the office of~~)) the state ((~~treasurer, a fund~~)) treasury an account to be known and designated as the "cemetery ((~~fund~~)) account." All regulatory fees or other moneys to be paid under this chapter, unless provision be made otherwise, shall be paid at least once a month to the state treasurer to be credited to the cemetery ((~~fund~~)) account. All moneys credited to the cemetery ((~~fund~~)) account shall be used, when appropriated by the legislature, by the ((~~cemetery board~~)) department to carry out the provisions of this chapter.

NEW SECTION. Sec. 58. All administrative powers, duties, and functions of the cemetery board pertaining to the examination of applicants for, the issuance of licenses to, and the discipline of persons engaged in practices regulated under Title 68 RCW are transferred to the department of licensing.

NEW SECTION. Sec. 59. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the cemetery board and pertaining to the powers, functions, and duties transferred by section 58 of this act shall be delivered to the custody of the department of licensing. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the cemetery board in carrying out the powers, functions, and duties transferred by section 58 of this act shall be made available to the department of licensing. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 58 of this act shall be assigned to the department of licensing.

Any appropriations made to the cemetery board for carrying out the powers, functions, and duties transferred by section 58 of this act shall, on the effective date of this act, be transferred and credited to the department of licensing.

NEW SECTION. Sec. 60. All classified employees of the cemetery board engaged in performing the powers, functions, and duties transferred by section 58 of this act are transferred to the jurisdiction of the department of licensing. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the department of licensing to perform duties within their classifications without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.

NEW SECTION. Sec. 61. All rules and all pending business before the cemetery board pertaining to the powers, functions, and duties transferred by section 58 of this act shall be continued and acted upon by the department of licensing. All existing contracts and obligations shall remain in full force and shall be performed by the department of licensing.

NEW SECTION. Sec. 62. The transfer of the powers, duties, functions, and personnel of the cemetery board shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 63. If apportionments of budgeted funds are required because of the transfers directed by sections 59 through 62 of this act, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

NEW SECTION. Sec. 64. Nothing contained in sections 58 through 63 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the personnel board as provided by law.

NEW SECTION. Sec. 65. Section 24, chapter 234, Laws of 1983 and RCW 18.04.065 are each repealed.