AN ACT Relating to crime victims' compensation; amending RCW 7.68.020, 7.68.030, 7.68.035, 7.68.050, 7.68.060, 7.68.070, 7.68.080, 7.68.100, 7.68.075, and 3.62.090; amending section 223, chapter 7, Laws of 1987 1st ex. sess. as amended by section 218, chapter 289, Laws of 1988 (uncodified); adding new sections to chapter 7.68 RCW; repealing RCW 7.68.010; prescribing penalties; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. The legislature reaffirms its position stated in section 10, chapter 8, Laws of 1982 1st ex. sess. that the crime victims' compensation program be self-funded. The legislature intends that the department of labor and industries operate the crime victims' compensation program within the limits of the appropriation provided for this program.

Sec. 2. Section 2, chapter 122, Laws of 1973 1st ex. sess. as last amended by section 6, chapter 281, Laws of 1987 and RCW 7.68.020 are each amended to read as follows:

The following words and phrases as used in this chapter have the meanings set forth in this section unless the context otherwise requires.

(1) "Beneficiary" means a husband, wife, child, or dependent of a victim who may receive benefits, if funds are available, under this chapter. A spouse of an eligible victim, living separate and apart from the other spouse for more than one year at the time of the criminal act who has not, during that time, received or attempted by process of law to collect funds for maintenance or child support, shall not be a beneficiary.

(2) "Child" means every natural born child, posthumous child, stepchild, child legally adopted prior to the injury, child born after the injury where conception occurred prior to the injury, and dependent child in the legal custody and control of the victim, all while under the age of eighteen years, or under the age of twenty-three years while permanently enrolled at a full-time course in an accredited school, and over the age of eighteen years if the child is a dependent as a result of a physical, mental, or sensory handicap.

(3) "Department" means the department of labor and industries.

((~~(2)~~)) (4) "Criminal act" means an act committed or attempted in this state which is punishable as a felony or gross misdemeanor under the laws of this state, except as follows:

(a) The operation of a motor vehicle, motorcycle, train, boat, or aircraft in violation of law does not constitute a "criminal act" unless:

(i) The injury or death was intentionally inflicted;

(ii) The operation thereof was part of the commission of another non-vehicular criminal act as defined in this section; or

(iii) The death or injury was the result of the operation of a motor vehicle after July 24, 1983, and a preponderance of the evidence establishes that the death was the result of vehicular homicide under RCW 46.61.520, or a conviction of vehicular assault under RCW 46.61.522, has been obtained: PROVIDED, That in cases where a probable criminal defendant has died in perpetration of vehicular assault or, because of physical or mental infirmity or disability the perpetrator is incapable of standing trial for vehicular assault, the department may, by a preponderance of the evidence, establish that a vehicular assault had been committed and authorize benefits;

(b) Neither an acquittal in a criminal prosecution nor the absence of any such prosecution is admissible in any claim or proceeding under this chapter as evidence of the noncriminal character of the acts giving rise to such claim or proceeding, except as provided for in subsection ((~~(2)~~)) (4)(a)(iii) of this section;

(c) Evidence of a criminal conviction arising from acts which are the basis for a claim or proceeding under this chapter is admissible in such claim or proceeding for the limited purpose of proving the criminal character of the acts; and

(d) Acts which, but for the insanity or mental irresponsibility of the perpetrator, would constitute criminal conduct are deemed to be criminal conduct within the meaning of this chapter.

((~~(3)~~)) (5) "Victim" means a person who suffers bodily injury or death as a proximate result of a criminal act of another person, the victim's own good faith and reasonable effort to prevent a criminal act, or ((~~his~~)) the victim's good faith effort to apprehend a person reasonably suspected of engaging in a criminal act. ((~~For the purposes of receiving benefits pursuant to this chapter, "victim" is interchangeable with "employee" or "workman" as defined in chapter 51.08 RCW as now or hereafter amended.~~

(4) "Child," "accredited school," "dependent," "beneficiary," "average monthly wage," "director," "injury," "invalid," "permanent partial disability," and "permanent total disability" have the meanings assigned to them in chapter 51.08 RCW as now or hereafter amended.))

(6) "Dependent" means any of the following named relatives of a victim whose death results from any injury and who leaves surviving no widow, widower, or child and includes father, mother, grandfather, grandmother, stepfather, stepmother, grandson, granddaughter, brother, sister, half-sister, half-brother, niece, or nephew, who at the time of the accident are actually and necessarily dependent in whole or in part for their support upon the earnings of the victim. Unless otherwise provided by treaty, aliens other than father or mother not residing within the United States at the time of the accident are not included.

((~~(5)~~)) (7) "Gainfully employed" means engaging on a regular and continuous basis in a lawful activity from which a person derives a livelihood.

((~~(6)~~)) (8) "Private insurance" means any source of recompense provided by contract available as a result of the claimed injury or death at the time of such injury or death, or which becomes available any time thereafter.

((~~(7)~~)) (9) "Public insurance" means any source of recompense provided by statute, state or federal, available as a result of the claimed injury or death at the time of such injury or death, or which becomes available any time thereafter.

Sec. 3. Section 3, chapter 122, Laws of 1973 1st ex. sess. as amended by section 12, chapter 443, Laws of 1985 and RCW 7.68.030 are each amended to read as follows:

It shall be the duty of the director to establish and administer a program of benefits to innocent victims of criminal acts within the terms and limitations of this chapter. In so doing, the director shall, in accordance with chapter ((~~34.04~~)) 34.05 RCW, adopt rules and regulations necessary to the administration of this chapter, ((and the provisions contained in chapter 51.04 RCW, including but not limited to RCW 51.04.020, 51.04.030, 51.04.040, 51.04.050 and 51.04.100 as now or hereafter amended, shall apply where appropriate in keeping with the intent of this chapter)) and to establish the type and amount of benefits available to innocent victims of crimes as defined in this chapter. The director may apply for and, subject to appropriation, expend federal funds under Public Law 98-473 and any other federal program providing financial assistance to state crime victim compensation programs. The federal funds shall be deposited in the public safety and education account in the general fund and may be expended only for purposes authorized by applicable federal law.

Sec. 4. Section 10, chapter 302, Laws of 1977 ex. sess. as last amended by section 1, chapter 281, Laws of 1987 and RCW 7.68.035 are each amended to read as follows:

(1) Whenever any person is found guilty in any superior court of having committed a crime, except as provided in subsection (2) of this section, there shall be imposed by the court upon such convicted person a penalty assessment. The assessment shall be in addition to any other penalty or fine imposed by law and shall be seventy dollars for each case or cause of action that includes one or more convictions of a felony or gross misdemeanor and forty-five dollars for any case or cause of action that includes convictions of only one or more misdemeanors.

(2) The assessment imposed by subsection (1) of this section shall not apply to motor vehicle crimes defined in Title 46 RCW except those defined in the following sections: RCW 46.61.520, 46.61.522, 46.61.024, 46.52.090, 46.70.140, 46.65.090, 46.61.502, 46.61.504, 46.52.100, 46.20.410, 46.52.020, 46.10.130, 46.09.130, 46.61.525, 46.61.685, 46.61.530, 46.61.500, 46.61.015, 46.52.010, 46.44.180, 46.10.090(2), and 46.09.120(2).

(3) Whenever any person accused of having committed a crime posts bail in superior court pursuant to the provisions of chapter 10.19 RCW and such bail is forfeited, there shall be deducted from the proceeds of such forfeited bail a penalty assessment, in addition to any other penalty or fine imposed by law, equal to the assessment which would be applicable under subsection (1) of this section if the person had been convicted of the crime.

(4) Such penalty assessments shall be paid by the clerk of the superior court to the county treasurer who shall monthly transmit the money as provided in RCW 10.82.070. Each county shall deposit not less than one and seventy-five one-hundredths percent of the money it retains under RCW 10.82.070 and chapter 3.62 RCW and all money it receives under subsection (8) of this section into a fund maintained exclusively for the support of comprehensive programs to encourage and facilitate testimony by the victims of crimes and witnesses to crimes. A program shall be considered "comprehensive" only after approval of the department upon application by the county prosecuting attorney. The department shall approve as comprehensive only programs which:

(a) Provide comprehensive services to victims and witnesses of all types of crime with particular emphasis on serious crimes against persons and property. It is the intent of the legislature to make funds available only to programs which do not restrict services to victims or witnesses of a particular type or types of crime and that such funds supplement, not supplant, existing local funding levels;

(b) Are administered by the county prosecuting attorney either directly through the prosecuting attorney's office or by contract between the county and agencies providing services to victims of crime;

(c) Make a reasonable effort to inform the known victim or his surviving dependents of the existence of this chapter and the procedure for making application for benefits;

(d) Assist victims in the restitution and adjudication process; and

(e) Assist victims of violent crimes in the preparation and presentation of their claims to the department of labor and industries under this chapter.

Before a program in any county west of the Cascade mountains is submitted to the department for approval, it shall be submitted for review and comment to each city within the county with a population of more than one hundred fifty thousand. The department will consider if the county's proposed comprehensive plan meets the needs of crime victims in cases adjudicated in municipal, district or superior courts and of crime victims located within the city and county.

(5) Upon submission to the department of a letter of intent to adopt a comprehensive program, the prosecuting attorney shall retain the money deposited by the county under subsection (4) of this section until such time as the county prosecuting attorney has obtained approval of a program from the department. Approval of the comprehensive plan by the department must be obtained within one year of the date of the letter of intent to adopt a comprehensive program and the department shall thereafter annually recertify programs providing comprehensive services as outlined in this section. The county prosecuting attorney shall not make any expenditures from the money deposited under subsection (4) of this section until approval of a comprehensive plan by the department. If a county prosecuting attorney has failed to obtain approval of a program from the department under subsection (4) of this section or failed to obtain approval of a comprehensive program within one year after submission of a letter of intent under this section, the county treasurer shall monthly transmit one hundred percent of the money deposited by the county under subsection (4) of this section to the state treasurer for deposit in the public safety and education account established under RCW 43.08.250.

(6) County prosecuting attorneys are responsible to make every reasonable effort to insure that the penalty assessments of this chapter are imposed and collected.

(7) Penalty assessments under this section shall also be imposed in juvenile offense dispositions under Title 13 RCW. Upon motion of a party and a showing of good cause, the court may modify the penalty assessment in the disposition of juvenile offenses under Title 13 RCW.

(8) Every city and town shall transmit monthly one and seventy-five one-hundredths percent of all money, other than money received for parking infractions, retained under RCW 3.46.120, 3.50.100, and 35.20.220 to the county treasurer for deposit as provided in subsection (4) of this section.

Sec. 5. Section 5, chapter 122, Laws of 1973 1st ex. sess. as last amended by section 3, chapter 156, Laws of 1980 and RCW 7.68.050 are each amended to read as follows:

(1) No right of action at law for damages incurred as a consequence of a criminal act shall be lost as a consequence of being ((~~entitled to~~)) eligible to receive or receiving benefits under the provisions of this chapter. The victim or his beneficiary may elect to seek damages from the person or persons liable for the claimed injury or death, and such victim or beneficiary ((~~is entitled to the full~~)) may still receive compensation and benefits provided by this chapter regardless of any election or recovery made pursuant to this section.

(2) ((~~For the purposes of this section, the rights, privileges, responsibilities, duties, limitations, and procedures contained in RCW 51.24.050 through 51.24.100 as now existing or hereafter amended apply.~~

~~(3)~~)) If the recovery involved is against the state, the lien of the department includes the interest on the benefits paid by the department to or on behalf of such person under this chapter computed at the rate of eight percent per annum from the date of payment.

((~~(4) The 1980 amendments to this section apply only to injuries which occur on or after April 1, 1980.~~))

Sec. 6. Section 6, chapter 122, Laws of 1973 1st ex. sess. as last amended by section 1, chapter 98, Laws of 1986 and RCW 7.68.060 are each amended to read as follows:

(((1) For the purposes of applying for benefits under this chapter, the rights, privileges, responsibilities, duties, limitations and procedures contained in RCW 51.28.020, 51.28.030, 51.28.040 and 51.28.060 as now or hereafter amended shall apply: PROVIDED, That)) Each victim injured as a result of a criminal act, as defined in this chapter, or his or her family or dependents in the case of death of the victim may receive benefits under this chapter in accordance with rules and regulations established by the department. The department may adjust the benefits available under this chapter as necessary to maintain expenditures within available funding. No compensation of any kind shall be available under this chapter if:

((~~(a)~~)) (1) An application for benefits is not received by the department within one year after the date the criminal act was reported to a local police department or sheriff's office or the date the rights of dependents or beneficiaries accrued; or

((~~(b)~~)) (2) The criminal act is not reported by the victim or someone on his or her behalf to a local police department or sheriff's office within ((~~seventy-two hours~~)) five days of its occurrence or, if it could not reasonably have been reported within that period, within ((~~seventy-two hours~~)) five days of the time when a report could reasonably have been made.

((~~(2) This section shall apply only to criminal acts reported after December 31, 1985.~~))

Sec. 7. Section 7, chapter 122, Laws of 1973 1st ex. sess. as last amended by section 8, chapter 281, Laws of 1987 and RCW 7.68.070 are each amended to read as follows:

((The right to benefits under this chapter and the amount thereof will be governed insofar as is applicable by the provisions contained in chapter 51.32 RCW as now or hereafter amended except as provided in this section:

~~(1) The provisions contained in RCW 51.32.015, 51.32.030, 51.32.072, 51.32.073, 51.32.180, 51.32.190, and 51.32.200 as now or hereafter amended are not applicable to this chapter.~~

~~(2)~~)) (1) Each victim injured as a result of a criminal act, including criminal acts committed between July 1, 1981, and January 1, 1983, who will suffer financial hardship as a result of losses and costs associated with the criminal act or his or her family or dependents in case of death of the victim, ((~~are entitled to~~)) may be eligible to receive benefits in accordance with this chapter((~~, and the rights, duties, responsibilities, limitations, and procedures applicable to a workman as contained in RCW 51.32.010 as now or hereafter amended are applicable to this chapter~~)).

(a) In determining financial hardship, the department shall consider all relevant factors including, but not limited to:

(i) Number of claimant's dependents;

(ii) Reasonable living expenses of claimant and his or her family;

(iii) Any special health, rehabilitative, or educational needs of claimant and his or her family;

(iv) Claimant's employment situation and income;

(v) Spouse's employment situation and income, if applicable;

(vi) Nature and amount of claimant's total debt and liabilities, including debt incurred or to be incurred to pay for losses and expenses of crime, and extent to which claimant's essential assets will have to be liquidated;

(vii) Claimant's net financial resources after reasonable deductions have been made;

(viii) Whether claimant's financial resources will become exhausted during his or her lifetime.

(b) The department shall, pursuant to the provisions of chapter 34.05 RCW, establish rules necessary for the implementation of this section.

((~~(3) The limitations contained in RCW 51.32.020 as now or hereafter amended are applicable to claims under this chapter. In addition thereto,~~)) (2) No person or spouse, child, or dependent of such person ((~~is entitled to~~)) may receive benefits under this chapter when the injury for which benefits are sought, was:

(a) The result of consent, provocation, or incitement by the victim;

(b) Sustained while the crime victim was engaged in the attempt to commit, or the commission of, a felony; or

(c) Sustained while the victim was confined in any county or city jail, federal jail or prison or in any other federal institution, or any state correctional institution maintained and operated by the department of social and health services or the department of corrections, prior to release from lawful custody; or confined or living in any other institution maintained and operated by the department of social and health services or the department of corrections.

(((4) The benefits established upon the death of a workman and contained in RCW 51.32.050 as now or hereafter amended shall be the benefits obtainable under this chapter and provisions relating to payment contained in that section shall equally apply under this chapter: PROVIDED, That benefits for burial expenses shall not exceed the maximum cost used by the department of social and health services for the funeral and burial of a deceased indigent person under chapter 74.08 RCW in any claim: PROVIDED FURTHER, That if the criminal act results in the death of a victim who was not gainfully employed at the time of the criminal act, and who was not so employed for at least three consecutive months of the twelve months immediately preceding the criminal act;

(a) Benefits payable to an eligible surviving spouse, where there are no children of the victim at the time of the criminal act who have survived him or where such spouse has legal custody of all of his children, shall be limited to burial expenses and a lump sum payment of seven thousand five hundred dollars without reference to number of children, if any;

(b) Where any such spouse has legal custody of one or more but not all of such children, then such burial expenses shall be paid, and such spouse shall receive a lump sum payment of three thousand seven hundred fifty dollars and any such child or children not in the legal custody of such spouse shall receive a lump sum of three thousand seven hundred fifty dollars to be divided equally among such child or children;

(c) If any such spouse does not have legal custody of any of the children, the burial expenses shall be paid and the spouse shall receive a lump sum payment of up to three thousand seven hundred fifty dollars and any such child or children not in the legal custody of the spouse shall receive a lump sum payment of up to three thousand seven hundred fifty dollars to be divided equally among the child or children;

(d) If no such spouse survives, then such burial expenses shall be paid, and each surviving child of the victim at the time of the criminal act shall receive a lump sum payment of three thousand seven hundred fifty dollars up to a total of two such children and where there are more than two such children the sum of seven thousand five hundred dollars shall be divided equally among such children.

~~No other benefits may be paid or payable under these circumstances.~~

(5) The benefits established in RCW 51.32.060 as now or hereafter amended for permanent total disability proximately caused by the criminal act shall be the benefits obtainable under this chapter, and provisions relating to payment contained in that section apply under this chapter: PROVIDED, That if a victim becomes permanently and totally disabled as a proximate result of the criminal act and was not gainfully employed at the time of the criminal act, the victim shall receive monthly during the period of the disability the following percentages, where applicable, of the average monthly wage determined as of the date of the criminal act pursuant to RCW 51.08.018 as now or hereafter amended:

~~(a) If married at the time of the criminal act, twenty-nine percent of the average monthly wage.~~

~~(b) If married with one child at the time of the criminal act, thirty-four percent of the average monthly wage.~~

~~(c) If married with two children at the time of the criminal act, thirty-eight percent of the average monthly wage.~~

~~(d) If married with three children at the time of the criminal act, forty-one percent of the average monthly wage.~~

~~(e) If married with four children at the time of the criminal act, forty-four percent of the average monthly wage.~~

~~(f) If married with five or more children at the time of the criminal act, forty-seven percent of the average monthly wage.~~

~~(g) If unmarried at the time of the criminal act, twenty-five percent of the average monthly wage.~~

~~(h) If unmarried with one child at the time of the criminal act, thirty percent of the average monthly wage.~~

~~(i) If unmarried with two children at the time of the criminal act, thirty-four percent of the average monthly wage.~~

~~(j) If unmarried with three children at the time of the criminal act, thirty-seven percent of the average monthly wage.~~

~~(k) If unmarried with four children at the time of the criminal act, forty percent of the average monthly wage.~~

~~(l) If unmarried with five or more children at the time of the criminal act, forty-three percent of the average monthly wage.~~

(6) The benefits established in RCW 51.32.080 as now or hereafter amended for permanent partial disability shall be the benefits obtainable under this chapter, and provisions relating to payment contained in that section equally apply under this chapter.

(7) The benefits established in RCW 51.32.090 as now or hereafter amended for temporary total disability shall be the benefits obtainable under this chapter, and provisions relating to payment contained in that section apply under this chapter: PROVIDED, That no person is eligible for temporary total disability benefits under this chapter if such person was not gainfully employed at the time of the criminal act, and was not so employed for at least three consecutive months of the twelve months immediately preceding the criminal act.

(8) The benefits established in RCW 51.32.095 as now or hereafter amended for continuation of benefits during vocational rehabilitation shall be benefits obtainable under this chapter, and provisions relating to payment contained in that section apply under this chapter: PROVIDED, That benefits shall not exceed five thousand dollars for any single injury.

~~(9) The provisions for lump sum payment of benefits upon death or permanent total disability as contained in RCW 51.32.130 as now or hereafter amended apply under this chapter.~~

(10) The provisions relating to payment of benefits to, for or on behalf of workmen contained in RCW 51.32.040, 51.32.055, 51.32.100, 51.32.110, 51.32.120, 51.32.135, 51.32.140, 51.32.150, 51.32.160, and 51.32.210 as now or hereafter amended are applicable to payment of benefits to, for or on behalf of victims under this chapter.

(11) No person or spouse, child, or dependent of such person is entitled to benefits under this chapter where the person making a claim for such benefits has refused to give reasonable cooperation to state or local law enforcement agencies in their efforts to apprehend and convict the perpetrator(s) of the criminal act which gave rise to the claim.

(12) In addition to other benefits provided under this chapter, victims of sexual assault are entitled to receive appropriate counseling. Fees for such counseling shall be determined by the department in accordance with RCW 51.04.030. Counseling services may include, if determined appropriate by the department, counseling of members of the victim's immediate family, other than the perpetrator of the assault.

(13) Except for medical benefits authorized under RCW 7.68.080, no more than fifteen thousand dollars shall be granted as a result of a single injury or death, except that benefits granted as the result of total permanent disability or death shall not exceed twenty thousand dollars.

~~(14) Notwithstanding other provisions of this chapter and Title 51 RCW, benefits payable for total temporary disability under subsection (7) of this section, shall be limited to ten thousand dollars.~~

~~(15) Any person who is responsible for the victim's injuries, or who would otherwise be unjustly enriched as a result of the victim's injuries, shall not be a beneficiary under this chapter.~~))

(3) No child shall receive benefits under this chapter while being cared for and supported in a state institution.

(4) No person or spouse, child, or dependent of such person is eligible for benefits under this chapter where the person making a claim for such benefits has refused to give reasonable cooperation to state or local law enforcement agencies in their efforts to apprehend and convict the perpetrator of the criminal act which gave rise to the claim.

(5) In addition to other benefits provided under this chapter, victims of sexual assault may be eligible to receive appropriate counseling. Fees for such counseling shall be determined by the department. Counseling services may include, if determined appropriate by the department and if funds are available, counseling of members of the victim's immediate family, other than the perpetrator of the assault.

(6) Any person who is responsible for the victim's injuries, or who would otherwise be unjustly enriched as a result of the victim's injuries, shall not be a beneficiary under this chapter.

NEW SECTION. Sec. 8. Upon the occurrence of any injury to a victim eligible to receive compensation under the provisions of this chapter, the victim may receive proper and necessary medical and surgical services and proper and necessary hospital care and services during the period of his or her disability from such criminal injury.

Sec. 9. Section 8, chapter 122, Laws of 1973 1st ex. sess. as last amended by section 2, chapter 98, Laws of 1986 and RCW 7.68.080 are each amended to read as follows:

((The provisions of chapter 51.36 RCW as now or hereafter amended govern the provision of medical aid under this chapter to victims injured as a result of a criminal act, including criminal acts committed between July 1, 1981, and January 1, 1983, except that:

~~(1) The provisions contained in RCW 51.36.030, 51.36.040, and 51.36.080 as now or hereafter amended do not apply to this chapter;~~

~~(2) The specific provisions of RCW 51.36.020 as now or hereafter amended relating to supplying emergency transportation do not apply: PROVIDED, That~~)) When the injury to any victim is so serious as to require ((~~his~~)) the victim's being taken from the place of injury to a place of treatment, reasonable transportation costs to the nearest place of proper treatment shall be reimbursed from the fund established pursuant to RCW 7.68.090. All fees and medical charges under this chapter shall conform to regulations promulgated by the director. In establishing fees for medical and other health care services, the director shall consider the director's duty to purchase health care in a prudent, cost-effective manner. The director shall establish rules adopted in accordance with chapter 34.05 RCW. Nothing in this chapter may be construed to require the payment of interest on any billing, fee, or charge.

NEW SECTION. Sec. 10. Physicians examining or attending injured victims under this chapter shall comply with rules and regulations adopted by the director, and shall make such reports as may be requested by the department upon the condition or treatment of any victim, or upon any other matters concerning a victim in their care. All medical information in the possession or control of any person and relevant to the particular injury, in the opinion of the department, pertaining to any victim whose injury is the basis of a claim under this chapter shall be made available at any stage of the proceedings to the claimant's representative and the department upon request, and no person shall incur any legal liability by reason of releasing such information.

NEW SECTION. Sec. 11. Whenever the director deems it necessary in order to resolve any medical issue, a victim shall submit to examination by a physician or physicians selected by the director, with the rendition of a report to the person ordering the examination. The cost of the examination or examinations shall be charged to the fund created by RCW 7.68.090, and shall include payment to the victim of reasonable expenses connected therewith.

NEW SECTION. Sec. 12. The acceptance by an innocent victim of medical, dental, or other health care services, and the request by a provider of services for reimbursement under this chapter for providing those services, shall authorize the director or the director's authorized representative to inspect and audit all records in connection with the provision of such services.

NEW SECTION. Sec. 13. The director of the department or the director's authorized representative shall have the authority to:

(1) Conduct audits and investigations of providers of medical, dental, and other health services furnished to innocent victims pursuant to this chapter. In the conduct of such audits or investigations, the director or the director's authorized representatives may examine all records, or portions thereof, including patient records, for which services were rendered by a health services provider and reimbursed by the department, notwithstanding the provisions of any other statute which may make or purport to make such records privileged or confidential. No original patient records shall be removed from the premises of the health services provider. The disclosure of any records or information obtained under authority of this section by the department of labor and industries is prohibited and constitutes a violation of RCW 42.22.040, unless such disclosure is directly connected to the official duties of the department. The disclosure of patient information as required under this section shall not subject any physician or other health services provider to any liability for breach of any confidential relationships between the provider and the patient. The director or the director's authorized representative shall destroy all copies of patient medical records in their possession upon completion of the audit, investigation, or proceedings;

(2) Approve or deny applications to participate as a provider of services furnished to victims of crime pursuant to this chapter; and

(3) Terminate or suspend eligibility to participate as a provider of services furnished to victims of crime pursuant to this chapter.

Sec. 14. Section 10, chapter 122, Laws of 1973 1st ex. sess. and RCW 7.68.100 are each amended to read as follows:

((The requirements relating to physicians' reporting contained in RCW 51.36.060 and 51.48.060 as now or hereafter amended shall apply under this chapter. Any funds collected pursuant to RCW 51.48.060 as now or hereafter amended shall be paid into the fund established pursuant to RCW 7.68.090.)) Any physician who fails, neglects, or refuses to file a report with the director as required by this chapter, within five days of the date of treatment, showing the condition of the crime victim at the time of treatment, a description of the treatment given, and an estimate of the probable duration of the injury, or who fails or refuses to render all necessary assistance to the crime victim as required by this chapter shall be subject to a civil penalty determined by the director but not to exceed two hundred fifty dollars.

NEW SECTION. Sec. 15. Every person, firm, or corporation who violates or fails to obey, observe, or comply with any rule of the department promulgated under authority of this chapter shall be subject to a penalty of not to exceed five hundred dollars.

NEW SECTION. Sec. 16. If an innocent victim or the surviving spouse of an innocent victim shall not have the legal custody of a child for or on account of whom payments are required to be made under this title, payment or payments shall be made to the person or persons having the legal custody of the child but only for the periods of time after the department has been notified of the fact of such legal custody. It shall be the duty of any person or persons receiving payments because of legal custody of any child immediately to notify the department of any change in legal custody.

Sec. 17. Section 9, chapter 176, Laws of 1975 1st ex. sess. as amended by section 6, chapter 302, Laws of 1977 ex. sess. and RCW 7.68.075 are each amended to read as follows:

((~~Notwithstanding the provisions of any of the sections, as now or hereafter amended, of Title 51 RCW which are made applicable to this chapter,~~)) The marital status of all victims shall be deemed to be fixed as of the date of the criminal act. All references to the child or children living or conceived of the victim in this chapter or regulations adopted shall be deemed to refer to such child or children as of the date of the criminal act unless the context clearly indicates the contrary.

Payments for or on account of any such child or children shall cease when such child is no longer a "child" as defined in ((~~RCW 51.08.030, as now or hereafter amended,~~)) this chapter or on the death of any such child whichever occurs first.

Payments to the victim or surviving spouse for or on account of any such child or children shall be made only when the victim or surviving spouse has legal custody of any such child or children. Where the victim or surviving spouse does not have such legal custody any payments for or on account of any such child or children shall be made to the person having legal custody of such child or children and the amount of payments shall be subtracted from the payments which would have been due the victim or surviving spouse had legal custody not been transferred to another person.

NEW SECTION. Sec. 18. (1) An election not to proceed against the third person operates as an assignment of the cause of action to the department, which may prosecute or compromise the action in its discretion in the name of the victim, beneficiary, or legal representative.

(2) If an injury to a victim results in the victim's death, the department to which the cause of action has been assigned may petition a court for the appointment of a special personal representative for the limited purpose of maintaining an action under this chapter and chapter 4.20 RCW.

(3) If a beneficiary is a minor child, an election not to proceed against a liable party on such beneficiary's cause of action may be exercised by the beneficiary's legal custodian or guardian.

(4) Any recovery made by the department shall be distributed as follows:

(a) The department shall be paid the expenses incurred in making the recovery, including reasonable costs of legal services;

(b) The department shall be paid the compensation and benefits paid to or on behalf of the victim or beneficiary by the department and victim; and

(5) Thereafter no payment shall be made to or on behalf of a victim or beneficiary by the department for such injury until the amount of any further compensation and benefits shall equal any such remaining balance. Thereafter, such benefits shall be paid by the department to or on behalf of the victim or beneficiary as though no recovery had been made from a liable party.

NEW SECTION. Sec. 19. (1) If the victim or beneficiary elects to seek damages from the liable party, any recovery made shall be distributed as follows:

(a) The costs and reasonable attorneys' fees shall be paid proportionately by the victim or beneficiary and the department;

(b) The department shall be paid the balance of the recovery made, but only to the extent necessary to reimburse the department for compensation and benefits paid;

(i) The department shall bear its proportionate share of the costs and reasonable attorneys' fees incurred by the victim or beneficiary to the extent of the benefits paid or payable under this title. The department may require court approval of cost and attorneys' fees or may petition a court for determination of the reasonableness of costs and attorneys' fees.

(ii) The sum representing the department's proportionate share shall not be subject to subsection (1) (c) and (d) of this section.

(d) Thereafter no payment shall be made to or on behalf of a victim or beneficiary by the department for such injury until the amount of any further compensation and benefits shall equal any such remaining balance. Thereafter, such benefits shall be paid by the department to or on behalf of the victim or beneficiary as though no recovery had been made from a liable party.

(2) The recovery made shall be subject to a lien by the department for its share under this section.

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

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

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

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

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

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

NEW SECTION. Sec. 20. (1) The department may require the victim or beneficiary to exercise the right of election under this chapter by service of a written demand by registered mail, certified mail, or personal service on the victim or beneficiary.

(2) Unless an action is made within sixty days of the receipt of the demand, and unless an action is instituted or settled within the time granted by the department, the victim or beneficiary is deemed to have assigned the action to the department. The department shall allow the victim or beneficiary at least ninety days from the election to institute or settle the action. When a beneficiary is a minor child the demand shall be served upon the legal custodian or guardian of such beneficiary.

(3) If an action which has been filed is not diligently prosecuted, the department may petition the court in which the action is pending for an order assigning the cause of action to the department. Upon a sufficient showing of a lack of diligent prosecution the court in its discretion may issue the order.

(4) If the department has taken an assignment of the third party cause of action under subsection (2) of this section, the victim or beneficiary may, at the discretion of the department, exercise a right of reelection and assume the cause of action subject to reimbursement of litigation expenses incurred by the department.

NEW SECTION. Sec. 21. (1) If the victim or beneficiary elects to seek damages from the liable party or parties, notice of the election must be given to the department. The notice shall be by registered mail, certified mail, or personal service. If an action is filed by the victim, a copy of the complaint must be sent by registered mail to the department.

(2) A return showing service of the notice on the department shall be filed with the court but shall not be part of the record except as necessary to give notice to the defendant of the lien imposed by section 19(2) of this act.

NEW SECTION. Sec. 22. (1) Any compromise or settlement of the cause of action by the victim or beneficiary which results in less than the benefits under this title is void unless made with the written approval of the department. For the purposes of this chapter, "entitlement" means benefits and compensation paid and payable.

(2) If a compromise or settlement is void because of subsection (1) of this section, the department may petition the court in which the action was filed for an order assigning the cause of action to the department. If an action has not been filed, the department may proceed as provided in chapter 7.24 RCW.

NEW SECTION. Sec. 23. The fact that the victim or beneficiary receives compensation under this title shall not be pleaded or admissible in evidence in any action against a liable party for damages under this chapter. Any challenge of the right to bring such action shall be made by supplemental pleadings only and shall be decided by the court as a matter of law.

Sec. 24. Section 337, chapter 258, Laws of 1984 as amended by section 4, chapter 98, Laws of 1986 and RCW 3.62.090 are each amended to read as follows:

(1) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions, by all courts organized under Title 3 or 35 RCW a public safety and education assessment equal to sixty percent of such fines, forfeitures, or penalties, which shall be remitted as provided in chapters 3.46, 3.50, 3.62, and 35.20 RCW. The assessment required by this section shall not be suspended or waived by the court.

(2) There shall be assessed and collected in addition to any fines, forfeitures, or penalties assessed, other than for parking infractions ((~~and for fines levied under RCW 46.61.515~~)), and in addition to the public safety and education assessment required under subsection (1) of this section, by all courts organized under Title 3 or 35 RCW, an additional public safety and education assessment equal to ((~~fifty~~)) seventy-five percent of the public safety and education assessment required under subsection (1) of this section, which shall be remitted to the state treasurer and deposited as provided in RCW 43.08.250. The additional assessment required by this subsection shall not be suspended or waived by the court.

Sec. 25. Section 223, chapter 7, Laws of 1987 1st ex. sess. as amended by section 218, chapter 289, Laws of 1988 (uncodified) is amended to read as follows:

!tp1FOR THE DEPARTMENT OF LABOR AND INDUSTRIES

@i2General Fund Appropriation!w×!tr$!sc ,16

!ae0!tr8,227,000

Public Safety and Education Account Appropriation!w×!tr$!sc ,16

!ae0!tr((~~10,866,000~~))

!tj1!tr17,457,000

Accident Fund Appropriation!w×!tr$!sc ,16

!ae0!tr85,159,000

Electrical License Fund Appropriation!w×!tr$!sc ,16

!ae0!tr9,907,000

Farm Labor Revolving Account Appropriation!w×!tr$!sc ,16

!ae0!tr58,000

Medical Aid Fund Appropriation!w×!tr$!sc ,16

!ae0!tr82,105,000

Plumbing Certificate Fund Appropriation!w×!tr$!sc ,16

!ae0!tr660,000

Pressure Systems Safety Fund Appropriation!w×!tr$!sc ,16

!ae0!tr1,148,000

Worker and Community Right to Know Fund Appropriation!w×!tr$!sc ,16

!ae0!tr2,059,000

!sc ,10Total Appropriation!w×!tr$!sc ,16

!ae0!tr((~~200,190,000~~))

!tj1!tr206,781,000

The appropriations in this section are subject to the following conditions and limitations:

(1) The department shall study the feasibility of establishing an independent ombudsman office to aid employers and employees, including self-insured employees, in dealing with the workers' compensation system. The study shall include an evaluation of the need for the office, the recommended functions of the office, and the mechanisms for oversight and funding. The department shall submit its findings and recommendations to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(2) The department shall evaluate the effectiveness of the workers' compensation vocational rehabilitation program, including the effectiveness of a worker resource center to provide injured worker adjustment services. The study shall be conducted in consultation with the workers' compensation advisory committee and interested groups representing injured workers, labor, and employers. The department shall submit its findings and recommendations to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(3) The department shall study, in cooperation with the employment security department and the department of social and health services, the potential impact in the state of a state minimum wage based on ninety percent of the federal poverty level. The results of the study shall be submitted to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(4) The department shall prepare a report on workers' compensation caseload information including, but not limited to, the average number of claims by type by adjudicator compared to optimal caseloads used in the private sector and any recommendations concerning improvement of caseloads. The report shall be submitted to the commerce and labor committees of the senate and house of representatives by January 11, 1988.

(5) All funds appropriated under this section for lease or lease development office space may be used to lease new office space only if the lease is for a period not exceeding three years and does not extend beyond June 30, 1991.

(6) The department shall establish an office of information and assistance to aid workers, employers, health care providers, and other department clients. The department shall report on the activities of the office to the appropriate committees of the legislature by January 1, 1989.

NEW SECTION. Sec. 26. Sections 1, 8, 10 through 13, 15, 16, and 18 through 23 of this act are each added to chapter 7.68 RCW.

NEW SECTION. Sec. 27. Section 1, chapter 122, Laws of 1973 1st ex. sess., section 1, chapter 302, Laws of 1977 ex. sess. and RCW 7.68.010 are each repealed.

NEW SECTION. Sec. 28. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1989.