AN ACT Relating to financial responsibility for services provided and funded by the department of social and health services; amending RCW 13.32A.175, 13.34.160, 13.40.220, 43.20A.670, 69.54.060, 71.05.100, 71.24.215, 71.34.130, 72.23.120, 72.23.230, 74.13.103, 74.20A.030, and 74.26.060; adding a new section to chapter 69.54 RCW; adding a new section to chapter 70.01 RCW; adding a new section to chapter 71.02 RCW; adding a new section to chapter 72.33 RCW; adding a new chapter to Title 43 RCW; creating a new section; repealing RCW 72.33.210; and providing an effective date.

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

Sec. 1. Section 15, chapter 298, Laws of 1981 and RCW 13.32A.175 are each amended to read as follows:

In any proceeding in which the court approves an alternative residential placement, ((the court shall inquire into the ability of parents to contribute to the child's support. If the court finds that the parents are able to contribute to the support of the child, the court shall order them to make such support payments as the court deems equitable. The court may enforce such an order by execution or in any way in which a court of equity may enforce its orders. However, payments shall not be required of a parent who has both opposed the placement and continuously sought reconciliation with, and the return of, the child)) the parent and any other responsible party, as defined in section 19 of this 1987 act, shall be liable for the costs of those services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 2. Section 8, chapter 160, Laws of 1913 as last amended by section 8, chapter 195, Laws of 1981 and RCW 13.34.160 are each amended to read as follows:

In any case in which the court shall find the child dependent, ((it may in the same or subsequent proceeding upon the parent or parents, guardian, or other person having custody of said child, being duly summoned or voluntarily appearing, proceed to inquire into the ability of such persons or person to support the child or contribute to its support, and if the court shall find such person or persons able to support the child or contribute thereto, the court may enter such order or decree as shall be according to equity in the premises, and may enforce the same by execution, or in any way in which a court of equity may enforce its decrees)) the parents and other responsible parties as defined in section 19 of this 1987 act shall be liable for the cost of services provided to the child. The department of social and health services shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 3. Section 76, chapter 291, Laws of 1977 ex. sess. and RCW 13.40.220 are each amended to read as follows:

Whenever legal custody of a child is vested in someone other than his or her parents, ((after due notice to the parents or other persons legally obligated to care for and support the child, and after a hearing, the court may order and decree that the parent or other legally obligated person shall pay in such a manner as the court may direct a reasonable sum representing in whole or in part the costs of support, treatment, and confinement of the child after the decree is entered. If the parent or other legally obligated person wilfully fails or refuses to pay such sum, the court may proceed against such person for contempt)) the parents and other responsible parties as defined in section 19 of this 1987 act shall be liable for the cost of services provided to the child. The department of social and health services shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 4. Section 25, chapter 6, Laws of 1981 1st ex. sess. and RCW 43.20A.670 are each amended to read as follows:

The department is authorized to charge fees for services provided by the department unless otherwise prohibited by law. The fees may be sufficient to cover the full cost of the service provided ((~~if practical or~~)) and may be charged on an ability-to-pay basis ((~~if practical~~)). This section does not supersede other statutory authority enabling the assessment of fees by the department. ((~~Whenever~~)) The department ((~~is authorized by law to~~)) shall collect total or partial reimbursement for the cost of its providing care of or exercising custody over any person((~~, the department shall collect the reimbursement to the extent practical~~)) under those conditions and procedures in chapter 43.20B RCW (sections 18 through 29 of this 1987 act). The department shall maximize recoupment from all available resources.

Sec. 5. Section 8, chapter 304, Laws of 1971 ex. sess. as amended by section 17, chapter 193, Laws of 1982 and RCW 69.54.060 are each amended to read as follows:

Any person fourteen years of age or older may give consent for himself to the furnishing of counseling, care, treatment or rehabilitation by an approved drug treatment center, an approved alcoholism treatment facility, or a person licensed or certified by the state related to conditions and problems caused by drug or alcohol abuse. Consent of the parent, parents, or legal guardian of a person less than eighteen years of age shall not be necessary to authorize such care, except that such person shall not become a resident of such treatment center without parental permission. ((The parent, parents or legal guardian of a person less than eighteen years of age shall not be liable for payment of care for such persons pursuant to this chapter, unless they have joined in the consent to such counseling, care, treatment or rehabilitation.))

Sec. 6. Section 15, chapter 142, Laws of 1973 1st ex. sess. as amended by section 4, chapter 24, Laws of 1973 2nd ex. sess. and RCW 71.05.100 are each amended to read as follows:

((~~In addition to the responsibility provided for by RCW 71.02.411, any~~)) A person((~~, or his estate, or his spouse, or the parents of a minor person~~)) who is involuntarily detained pursuant to this chapter for the purpose of treatment and evaluation ((~~outside of~~)) in a facility maintained and operated or funded by the department ((~~of social and health services shall be responsible~~)) and any other responsible party as defined in section 19 of this 1987 act shall be liable for the cost of such ((care and treatment. In the event that an individual is unable to pay for such treatment or in the event payment would result in a substantial hardship upon the individual or his family, then the county of residence of such person shall be responsible for such costs. If it is not possible to determine the county of residence of the person, the cost shall be borne by the county where the person was originally detained. The department of social and health services shall, pursuant to chapter 34.04 RCW, adopt standards as to (1) inability to pay in whole or in part, (2) a definition of substantial hardship, and (3) appropriate payment schedules. Such standards shall be applicable to all county mental health administrative boards. Financial responsibility with respect to department services and facilities shall continue to be as provided in chapter 71.02 RCW)) services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 7. Section 11, chapter 204, Laws of 1982 and RCW 71.24.215 are each amended to read as follows:

Clients receiving mental health services ((~~funded by available resources shall be charged a fee under sliding-scale fee schedules, based on ability to pay, approved by the department. Fees shall not exceed the actual cost of care~~)) under this chapter and any other responsible party, as defined in section 19 of this 1987 act, that are provided or funded by the department shall be liable for the costs of those services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 8. Section 13, chapter 354, Laws of 1985 and RCW 71.34.130 are each amended to read as follows:

((~~(1) A minor receiving treatment under the provisions of this chapter and responsible others~~)) A recipient of services provided or funded by the department under this chapter and any other responsible party, as defined in section 19 of this 1987 act, shall be liable for the costs of ((~~treatment, care, and transportation to the extent of available resources and ability to pay.~~

~~(2) The secretary shall establish rules to implement this section and to define income, resources, and exemptions to determine the responsible person's or persons' ability to pay~~)) those services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 9. Section 72.23.120, chapter 28, Laws of 1959 and RCW 72.23.120 are each amended to read as follows:

Payment of hospitalization charges shall not be a necessary requirement for voluntary admission((: PROVIDED, HOWEVER, The department may request payment of hospitalization charges, or any portion thereof, from the patient or relatives of the patient within the following classifications: Spouse, parents, or children. Where the patient or relatives within the above classifications refuse to make the payments requested, the department shall have)). The department has the right to discharge ((~~such~~)) any patient or initiate proceedings for involuntary hospitalization((~~. The maximum charge shall be the same for voluntary and involuntary hospitalization~~)) if the patient or other responsible party, as defined in section 19 of this 1987 act, refuses to pay such amount determined to be due and owing the state under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

Sec. 10. Section 72.23.230, chapter 28, Laws of 1959 as last amended by section 4, chapter 245, Laws of 1985 and RCW 72.23.230 are each amended to read as follows:

The superintendent of a state hospital shall be the custodian without compensation of such personal property of a patient involuntarily hospitalized therein as may come into the superintendent's possession while the patient is under the jurisdiction of the hospital. As such custodian, the superintendent shall have authority to disburse moneys from the patients' funds for the following purposes only and subject to the following limitations:

(1) The superintendent may disburse any of the funds in his possession belonging to a patient for such personal needs of that patient as may be deemed necessary by the superintendent; and

(2) Whenever the funds belonging to any one patient exceed the sum of one thousand dollars or a greater sum as established by rules and regulations of the department, the superintendent may apply the excess to reimbursement for state hospitalization and/or outpatient charges of such patient to the extent of a notice and finding of responsibility issued under RCW 71.02.413, or to the extent of a notice of financial liability issued under section 22 or 23 of this 1987 act; and

(3) When a patient is paroled, the superintendent shall deliver unto the said patient all or such portion of the funds or other property belonging to the patient as the superintendent may deem necessary and proper in the interests of the patient's welfare, and the superintendent may during the parole period deliver to the patient such additional property or funds belonging to the patient as the superintendent may from time to time determine necessary and proper. When a patient is discharged from the jurisdiction of the hospital, the superintendent shall deliver to such patient all funds or other property belonging to the patient, subject to the conditions of subsection (2) of this section.

All funds held by the superintendent as custodian may be deposited in a single fund. Annual reports of receipts and expenditures shall be forwarded to the department, and shall be open to inspection by interested parties: PROVIDED, That all interest accruing from, or as a result of the deposit of such moneys in a single fund shall be used by the superintendent for the general welfare of all the patients of such institution: PROVIDED, FURTHER, That when the personal accounts of patients exceed ((~~three hundred dollars~~)) the exemption limit under subsection (2) of this section, the interest accruing from such excess shall be credited to the personal accounts of such patients. All such expenditures shall be accounted for by the superintendent.

The appointment of a guardian for the estate of such patient shall terminate the superintendent's authority to pay state hospitalization charges from funds subject to the control of the guardianship upon the superintendent's receipt of a certified copy of letters of guardianship. Upon the guardian's request, the superintendent shall forward to such guardian any funds subject to the control of the guardianship or other property of the patient remaining in the superintendent's possession, together with a final accounting of receipts and expenditures.

Sec. 11. Section 2, chapter 63, Laws of 1971 ex. sess. and RCW 74.13.103 are each amended to read as follows:

When a child proposed for adoption is placed with a prospective adoptive parent, the ((~~department may charge such parent a fee in payment or part payment of such adoptive parent's part of~~)) parent is liable for the cost of the adoption services rendered and to be rendered by the department. The department shall determine the ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act).

In charging such fees the department shall treat a husband and wife as a single prospective adoptive parent.

((~~Each such fee shall be fixed according to a sliding scale based on the ability to pay of the prospective adoptive parent or parents.~~

Such fee scale shall be annually fixed by the secretary after considering the recommendations of the committee designated by the secretary to advise him on child welfare and pursuant to the regulations to be issued by the secretary in accordance with the provisions of Title 34 RCW.

The secretary may waive, defer, or provide for payment in installments without interest of, any such fee whenever in his judgment payment or immediate payment would cause economic hardship to such adoptive parent or parents.

~~Nothing in this section shall require the payment of a fee to the state of Washington in a case in which an adoption results from independent placement or placement by a licensed child-placing agency.~~))

Sec. 12. Section 3, chapter 164, Laws of 1971 ex. sess. as last amended by section 5, chapter 276, Laws of 1985 and RCW 74.20A.030 are each amended to read as follows:

The department shall be subrogated to the right of any dependent child or children or person having the care, custody, and control of said child or children, if public assistance money is paid to or for the benefit of the child, to prosecute or maintain any support action or execute any administrative remedy existing under the laws of the state of Washington to obtain reimbursement of moneys expended, based on the support obligation of the responsible parent established by a superior court order or RCW 74.20A.055. Distribution of any support moneys shall be made in accordance with 42 U.S.C. Sec. 657.

No collection shall be made from a parent or other person who is the recipient of public assistance moneys while such person or persons are in such status except as provided in RCW 74.20A.270.

((No collection action shall be taken against parents of children eligible for admission to, or children who have been released from, a state school for the developmentally disabled as defined by chapter 72.33 RCW.))

The department may initiate, continue, maintain, or execute action to establish, enforce, and collect a support obligation, including establishing paternity and performing related services, under this chapter and chapter 74.20 RCW, or through the attorney general or prosecuting attorney under chapter 26.09, 26.18, 26.20, 26.21, or 26.26 RCW or other appropriate statutes or the common law of this state, for a period not to exceed three months from the month following the month in which the family or any member thereof ceases to receive public assistance and thereafter if a nonassistance request for support enforcement services has been made under RCW 74.20.040.

Sec. 13. Section 6, chapter 106, Laws of 1980 and RCW 74.26.060 are each amended to read as follows:

((~~This program or any components necessary to the child shall be available to eligible children at no cost to their parents provided that any~~)) A recipient of services under this chapter provided or funded by the department and any other responsible party, as defined in section 19 of this 1987 act, shall be liable for the costs of such services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this 1987 act). Medical insurance benefits available to the child for his/her medical condition shall ((~~remain liable~~)) be used for payment for his/her cost of care.

NEW SECTION. Sec. 14. A new section is added to chapter 69.54 RCW to read as follows:

Any recipient of services provided or funded by the department under this chapter and any other responsible party, as defined in section 19 of this act, shall be liable for the costs of those services. The department shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this act).

NEW SECTION. Sec. 15. A new section is added to chapter 70.01 RCW to read as follows:

Any recipient of services under this title which are provided or funded by the department of social and health services and any other responsible party, as defined in section 19 of this act, shall be liable for the costs of those services. The department of social and health services shall determine ability to pay and shall recover obligations incurred under chapter 43.20B RCW (sections 18 through 29 of this act).

NEW SECTION. Sec. 16. A new section is added to chapter 71.02 RCW to read as follows:

With respect to the financial liability for the cost of services provided in state hospitals for the mentally ill, this chapter applies only to such services provided prior to the effective date of this section.

NEW SECTION. Sec. 17. A new section is added to chapter 72.33 RCW to read as follows:

With respect to the financial liability for the cost of services provided in state residential schools, RCW 72.33.650 through 72.33.700 apply only to such services provided prior to the effective date of this section.

NEW SECTION. Sec. 18. The purpose of this chapter is to eliminate inconsistencies in current statutes which define individual, spousal, or parental financial liability and to develop a comprehensive plan for determining financial liability for department services.

The legislature recognizes that a major mission of the department of social and health services is to offer protection to the general public and to provide for persons unable to care for themselves. The legislature, therefore, finds and declares it to be public policy that:

(1) It is the responsibility of Washington state citizens to provide for themselves, their spouse, and their unmarried minor children to the best of their ability;

(2) The department shall encourage and assist families and individuals to meet the primary responsibility of providing for themselves, their spouses, and their unmarried minor children. The department shall also encourage individuals and families to voluntarily assume responsibility for siblings, parents, and adult sons and daughters;

(3) When the department does assist individuals and families in meeting their primary responsibilities, the department shall recover costs of the assistance based on the ability of the individual or family to pay. Recovery of costs is not intended to result in the impoverishment of the individual or family or in the significant impairment of their ability to discharge their primary responsibilities;

(4) The department should recover the full cost of services when provided to a public or private entity;

(5) Funds collected under this chapter shall be returned to the department program for which financial responsibility was assessed; and

(6) Nothing in this chapter is intended to prohibit the voluntary donation of monetary or other gifts to a service provider.

NEW SECTION. Sec. 19. The definitions in this section apply throughout this chapter.

(1) "Department" means the department of social and health services.

(2) "Family size" means the total number of exemptions allowed by federal income tax regulations.

(3) "Financial eligibility service" means any service provided or funded by the department that is available to an individual or family based on a financial means test.

(4) "Minor" means an unmarried person under the age of eighteen.

(5) "Nonresidential service" means any service provided or funded by the department, other than residential services.

(6) "Possessor" means any person, firm, corporation, association, political subdivision, or department of the state that the department of social and health services has reason to believe is holding property due or belonging to a responsible party, where such property is subject to the department's order to withhold and deliver as provided in section 26 of this act or a wage assignment as provided in section 28 of this act.

(7) "Protective service" means any service provided or funded by the department in response to an allegation of abuse, neglect, or domestic violence.

(8) "Recipient" means any person receiving services provided or funded by the department.

(9) "Residential service" means any service provided or funded by the department that provides food and shelter, in addition to other services, on a twenty-four hour basis.

(10) "Responsible party" means an individual and the spouse thereof, or the parents of a minor, receiving services provided or funded by the department. The representative payee, fiduciary, or legal guardian of the recipient is a responsible party only to the extent of benefits received, assets of the estate, or both.

(11) "Secretary" means the secretary of social and health services.

(12) "Special needs children" means those persons under eighteen years of age who are eligible for adoption and who are difficult to place in adoption because of physical or other reasons, including, but not limited to, physical or mental handicap, emotional disturbance, ethnic background, language, race, color, age, or sibling group.

NEW SECTION. Sec. 20. (1) A recipient and other responsible party is liable for the cost of services provided or funded by the department based upon their ability to pay. Services provided to a firm, corporation, association, political subdivision, or a department of the state shall be provided at the full cost of such services.

(2) Liability shall not exceed the cost of providing the services.

(3) The ability to pay for services shall be determined by the department.

(4) Financial liability shall not be assessed by the department for:

(a) The first thirty days of nonresidential protective services;

(b) The adoption costs of special needs children; or

(5) A person, including a minor, shall not be denied services because of an inability to pay or due to the existence of an unpaid obligation to the department.

(6) A minor shall not be denied services solely because the responsible party refused to pay for services received.

(7) The secretary may waive liability for the cost of services if, in the secretary's discretion, the assessed liability would not be in the best interest of the state. The department shall adopt rules establishing the criteria for waiver of liability.

NEW SECTION. Sec. 21. (1) Insurance benefits for which the recipient, or responsible party on behalf of the recipient, is eligible or potentially eligible shall be applied to actual costs of departmental services to the full extent of the coverage prior to the calculation of ability to pay as provided in subsection (2) of this section. For the purpose of this section, insurance benefits include private or group policies and government entitlement programs that provide coverage for the service furnished or funded by the department.

(2) Except as provided in subsection (3) of this section, the ability to pay for services shall be determined by the following formula: Subtract fifty percent of the annual state median income adjusted for family size from the gross earned and unearned annual income of the family. Twenty percent of the remaining amount is the maximum annual amount the family will be assessed under this chapter for services provided.

(3) For a family size of one, the individual receiving residential services is liable to the full extent of gross earned and unearned annual income less an amount for personal expenses and/or an amount to secure or retain community housing.

(4) The department may investigate the financial condition of persons liable, or potentially liable, for the costs of services in order to make a determination of ability to pay or to enforce this chapter.

(5) Determination of ability to pay for services shall be uniform across all programs of the department.

NEW SECTION. Sec. 22. (1) Upon determination of the ability to pay for services, the department shall issue a notice of financial liability to the responsible party.

(2) The notice of financial liability shall:

(a) Set forth the maximum annual amount of liability for the family for all services as determined by the department;

(b) Be valid for twelve months from the date of application for services, unless sooner modified or vacated;

(c) Advise the responsible party that a payment plan may be developed by mutual agreement which will be reflected in subsequent billings; and

(d) Advise the responsible party that the notice of financial liability may be modified upon request to the department. The request shall be accompanied by supporting documentation and made by certified mail.

(3) If the responsible party does not request modification within thirty days after receipt of the notice of financial liability, the department shall bill the responsible party for services received up to the maximum annual amount as reflected in the original notice.

(4) The notice of financial liability shall be sent by certified mail, return receipt requested.

NEW SECTION. Sec. 23. (1) A notice of financial liability issued under this chapter may be modified or vacated by the department under the following circumstances:

(a) Upon request of the responsible party as provided in section 22 of this act;

(b) Upon discovery by the department that the original notice of financial liability was inaccurate; or

(2) Any modification of a notice of financial liability shall be mailed in the same manner and subject to the same modification rights as the original notice.

NEW SECTION. Sec. 24. (1) A notice of delinquency may be issued by the department to a responsible party if:

(a) A notice of financial liability has been issued;

(b) The responsible party has refused to pay the obligation or has failed to comply with the terms of a payment plan; and

(c) The department has made a good-faith effort to secure the voluntary payment of the obligation by the responsible party.

(2) A notice of delinquency shall advise the responsible party:

(a) Of the amount of the obligation;

(b) That the obligation is delinquent;

(i) Must pay the obligation in full;

(ii) Make other arrangements acceptable to the department to satisfy the obligation; or

(iii) Make a written appeal to the secretary by certified mail; and

(d) That the department may exercise its options under sections 24 through 29 of this act to recover the delinquent obligation.

(3) A notice of delinquency issued under this section shall be served upon the responsible party in the manner prescribed for the service of a summons in a civil action or by certified mail, return receipt requested. Personal service return, the requested receipt, or refusal by the responsible party of the notice is prima facie evidence of service of notice.

(4) Appeals may be heard in the county seat most convenient to the appellant. The hearing of appeal may be presided over by an administrative law judge appointed under chapter 34.12 RCW, and the proceedings shall be recorded either manually or by a mechanical device. At the conclusion of the hearing, the administrative law judge shall make findings of fact and conclusions of law and an initial decision. Thereafter, the secretary, or the secretary's designee, may either affirm, reject, or modify the findings, conclusions, and initial decision made by the administrative law judge. Judicial review of the secretary's determination of responsibility in the superior court, the court of appeals, and the supreme court may be taken in accordance with the administrative procedure act, chapter 34.04 RCW.

(5) The remedies available to the department to recover delinquent obligations under sections 24 through 29 of this act are nonexclusive.

NEW SECTION. Sec. 25. (1) If the responsible party fails to comply with section 24(2)(c) of this act within thirty days after service of a notice of delinquency, the department may file a lien, issue an order to withhold and deliver, or pursue its other remedies.

(2) A lien filed under this section shall attach to all real property of the responsible party from the date of filing with the county auditor of the county in which the responsible party resides or owns property, and the lien claim has preference over the claims of all unsecured creditors.

NEW SECTION. Sec. 26. (1) The department may issue an order to withhold and deliver under this section to any possessor. The order to withhold and deliver shall state the amount of the obligation and shall state in summary the terms of this subsection, RCW 7.33.280, chapters 6.12 and 6.16 RCW, 15 U.S.C. Sec. 1673, and other state or federal exemption laws applicable to debtors. The order shall be served on the possessor in the manner prescribed for the service of a summons in a civil action or by certified mail, return receipt requested. A possessor upon whom service has been made shall answer the order within twenty days, exclusive of the date of service, under oath and in writing and shall make true answers to the matters inquired therein. The secretary may require further and additional answers to be completed by the possessor.

(2) Upon receipt of the order, the possessor shall withhold any subject property and, after the the twenty-day period, deliver the property to the secretary. Delivery to the secretary serves as full acquittance, and the department warrants and represents that it shall defend and hold harmless any possessor delivering money or property to the secretary pursuant to this section.

(3) The secretary shall notify the responsible party of the order to withhold and deliver by sending a copy to the last known address of the responsible party.

NEW SECTION. Sec. 27. If a possessor fails to answer an order to withhold and deliver within the time prescribed in section 26 of this act, fails or refuses to deliver property pursuant to the order, or pays over, releases, sells, transfers, or conveys real or personal property subject to such order for the benefit of the debtor or any other person or fails or refuses to honor an assignment of wages presented by the secretary, the possessor is liable to the department in the amount of the debt specified in the order or assignment of wages, together with costs, interest, and reasonable attorneys' fees.

NEW SECTION. Sec. 28. A possessor employing a person owing a debt for services provided or funded by the department shall honor, according to its terms, a duly executed assignment of earnings. The requirement to honor an assignment of earnings is applicable whether the earnings are to be paid presently or in the future and continues in force and effect until released in writing. Payment of money pursuant to an assignment of earnings serves as full acquittance under any contract of employment, and the state warrants and represents it shall defend and hold harmless the employer for any action taken pursuant to the assignment. The secretary is released from liability for improper receipt of money under assignment of earnings upon return of any money so received.

NEW SECTION. Sec. 29. The department may, at any time, accept offers of compromise of obligations incurred under this chapter and may grant partial or total write-off of such obligations. The department shall adopt rules establishing the criteria for write-off.

NEW SECTION. Sec. 30. Sections 18 through 29 of this act shall constitute a new chapter in Title 43 RCW to be designated chapter 43.20B RCW.

NEW SECTION. Sec. 31. The enactment of this act shall not have the effect of terminating or in any way modifying any liability, civil or criminal, which is already in existence on the effective date of this act.

NEW SECTION. Sec. 32. Section 72.33.210, chapter 28, Laws of 1959 and RCW 72.33.210 are each repealed.

NEW SECTION. Sec. 33. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 34. This act shall take effect September 30, 1987. The secretary may immediately take such steps as are necessary to ensure that this act is implemented on its effective date.