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ONE HUNDRED-FIRST DAY
__________
MORNING SESSION
__________
House Chamber, Olympia, Wednesday, April 21, 1993
The House was called to order at 9:00 a.m. by the Speaker (Representative R. Meyers presiding). The Clerk called the roll and a quorum was present.
The Speaker assumed the chair.
The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Jo Woodward and Lorie Elliott. Inspirational Message was offered by Representative Quall.
Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.
SIGNED BY THE SPEAKER
The Speaker announced he was signing:
ENGROSSED SUBSTITUTE HOUSE BILL NO. 1338,
SUBSTITUTE SENATE BILL NO. 5025,
SUBSTITUTE SENATE BILL NO. 5035,
SUBSTITUTE SENATE BILL NO. 5048,
SUBSTITUTE SENATE BILL NO. 5052,
SUBSTITUTE SENATE BILL NO. 5056,
SUBSTITUTE SENATE BILL NO. 5075,
SUBSTITUTE SENATE BILL NO. 5088,
SUBSTITUTE SENATE BILL NO. 5179,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5186,
SECOND SUBSTITUTE SENATE BILL NO. 5237,
SUBSTITUTE SENATE BILL NO. 5261,
SUBSTITUTE SENATE BILL NO. 5263,
SUBSTITUTE SENATE BILL NO. 5332,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5379,
SUBSTITUTE SENATE BILL NO. 5402,
SUBSTITUTE SENATE BILL NO. 5404,
SUBSTITUTE SENATE BILL NO. 5443,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5452,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5911,
SUBSTITUTE SENATE BILL NO. 5913,
ENGROSSED SENATE BILL NO. 5917,
SUBSTITUTE SENATE BILL NO. 5922,
ENGROSSED SUBSTITUTE SENATE JOINT MEMORIAL NO. 8016,
SENATE JOINT MEMORIAL NO. 8021,
SENATE AMENDMENTS TO HOUSE BILL
April 17, 1993
Mr. Speaker:
The Senate has passed HOUSE BILL NO. 1858 with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. I. RCW 13.70.005 and 1991 c 363 s 14 and 1991 c 127 s 2 are each reenacted and amended to read as follows:
Periodic case review of all children in substitute care ((shall)) may be provided in counties designated by the office of the administrator for the courts, in accordance with this chapter ((and within funding provided by the legislature)).
The administrator for the courts shall coordinate and assist, within available funds, in the administration of ((the)) local citizen review boards ((pilot program)) created by this chapter.
Sec. II. RCW 13.70.100 and 1989 1st ex.s. c 17 s 12 are each amended to read as follows:
(1) This section shall apply to cases where a child has been placed in substitute care pursuant to written parental consent and a dependency petition has not been filed under chapter 13.34 RCW. If a dependency petition is subsequently filed and the child's placement in substitute care continues pursuant to a court order entered in a proceeding under chapter 13.34 RCW, the provisions set forth in RCW 13.70.110 shall apply.
(2) Within thirty days following commencement of the placement episode, the department shall send a copy of the written parental consent to the juvenile court with jurisdiction over the geographical area in which the child resides.
(3) Within forty-five days following commencement of the placement episode, the court shall assign the child's case to a board and forward to the board a copy of the written parental consent to placement.
(4) The board shall review the case plan for each child in substitute care whose case is assigned to the board by the court. The review shall take place at times set by the board. The first review shall occur within ninety days following commencement of the placement episode. The second review shall occur within six months following commencement of the placement episode. The ((next)) final board review shall occur ((within one year following commencement of the placement episode)) no later than six months following the second review unless the child is no longer in substitute care or unless a guardianship order or adoption decree is entered.
(5) The board shall prepare written findings and recommendations with respect to:
(a) Whether reasonable efforts were made before the placement to prevent or eliminate the need for removal of the child from the home;
(b) Whether reasonable efforts have been made subsequent to the placement to make it possible for the child to be returned home;
(c) Whether the child has been placed in the least-restrictive setting appropriate to the child's needs, including whether consideration has been given to placement with the child's relatives;
(d) Whether there is a continuing need for and whether the placement is appropriate;
(e) Whether there has been compliance with the case plan;
(f) Whether progress has been made toward alleviating the need for placement;
(g) A likely date by which the child may be returned home or other permanent plan of care may be implemented; and
(h) Other problems, solutions, or alternatives the board determines should be explored.
(6) Within ten working days following the review, the board shall send a copy of its findings and recommendations to the child's parents and their attorneys, the child's custodians and their attorneys, mature children and their attorneys, and the department and other child placement agencies directly responsible for supervising the child's placement. If the child is an Indian as defined in the Indian child welfare act, 25 U.S.C. 1901 et seq., a copy of the board's findings and recommendations shall also be sent to the child's Indian tribe.
(7) If the department is unable or unwilling to implement the board recommendations, the department shall submit to the board, within ten working days after receipt of the findings and recommendations, an implementation report setting forth the reasons why the department in unable or unwilling to implement the board's recommendations. The report will also set forth the case plan which the department intends to implement.
(8) The court shall not review the findings and recommendations of the board in cases where the child has been placed in substitute care with signed parental consent unless a dependency petition has been filed and the child has been taken into custody under RCW 13.34.050.
Sec. III. RCW 13.70.110 and 1991 c 127 s 5 are each amended to read as follows:
(1) This section shall apply to cases where a child has been placed in substitute care pursuant to a proceeding under chapter 13.34 RCW.
(2) Within forty-five days following commencement of the placement episode, the court shall assign the child's case to a board and forward to the board a copy of the dependency petition and any shelter care or dependency disposition orders which have been entered in the case by the court.
(3) The board shall review the case plan for each child whose case is assigned to the board by the court. The review shall take place at times set by the board. The first review shall occur ((within ninety days following commencement of the placement episode)) no later than six months following the second review unless the child is no longer within the jurisdiction of the court, no longer in substitute care, or a guardianship order or adoption decree is entered. The second review shall occur within six months following commencement of the placement episode. The ((next)) final board review shall occur within one year after commencement of the placement episode. ((Within eighteen months following commencement of the placement episode, a permanency planning hearing shall be held before the court in accordance with RCW 13.34.145. Thereafter, the court shall assign the child's case for a board review or a court review hearing pursuant to RCW 13.34.130(5). A board review or a court review hearing shall take place at least once every six months until the child is no longer within the jurisdiction of the court or no longer in substitute care or until a guardianship order or adoption decree is entered. After the permanency planning hearing, a court review hearing must occur at least once a year as provided in RCW 13.34.130. The board shall review any case where a petition to terminate parental rights has been denied, and such review shall occur as soon as practical but no later than forty-five days after the denial.))
(4) The board shall prepare written findings and recommendations with respect to:
(a) Whether reasonable efforts were made before the placement to prevent or eliminate the need for removal of the child from the home, including whether consideration was given to removing the alleged offender, rather than the child, from the home;
(b) Whether reasonable efforts have been made subsequent to the placement to make it possible for the child to be returned home;
(c) Whether the child has been placed in the least-restrictive setting appropriate to the child's needs, including whether consideration has been given to placement with the child's relatives;
(d) Whether there is a continuing need for placement and whether the placement is appropriate;
(e) Whether there has been compliance with the case plan;
(f) Whether progress has been made toward alleviating the need for placement;
(g) A likely date by which the child may be returned home or other permanent plan of care may be implemented; and
(h) Other problems, solutions, or alternatives the board determines should be explored.
(5) Within ten working days following the review, the board shall send a copy of its findings and recommendations to the parents and their attorneys, the child's custodians and their attorneys, mature children and their attorneys, other attorneys or guardians ad litem appointed by the court to represent children, the department and other child placement agencies directly responsible for supervising the child's placement, and any prosecuting attorney or attorney general actively involved in the case. If the child is an Indian as defined in the Indian child welfare act, 25 U.S.C. Sec. 1901 et seq., a copy of the board's findings and recommendations shall also be sent to the child's Indian tribe.
(6) If the department is unable or unwilling to implement the board recommendations, the department shall submit to the board, within ten working days after receipt of the findings and recommendations, an implementation report setting forth the reasons why the department is unable or unwilling to implement the board's recommendations. The report will also set forth the case plan which the department intends to implement.
(7) Within forty-five days following the review, the board shall either:
(a) Schedule the case for further review by the board; or
(b) Submit to the court the board's findings and recommendations and the department's implementation reports, if any. If the board's recommendations are different from the existing court-ordered case plan, the board shall also file with the court a motion for a review hearing.
(8) Within ten days of receipt of the board's written findings and recommendations and the department's implementation report, if any, the court shall review the findings and recommendations and implementation reports, if any. The court may on its own motion schedule a review hearing.
(9) Unless modified by subsequent court order, the court-ordered case plan and court orders that are in effect at the time that a board reviews a case shall remain in full force and effect. Board findings and recommendations are advisory only and do not in any way modify existing court orders or court-ordered case plans.
(10) The findings and recommendations of the board and the department's implementation report, if any, shall become part of the department's case file and the court social file pertaining to the child.
(11) Nothing in this section shall limit or otherwise modify the rights of any party to a dependency proceeding to request and receive a court review hearing pursuant to the provisions of chapter 13.34 RCW or applicable court rules.
Sec. IV. RCW 13.70.140 and 1989 1st ex.s. c 17 s 16 are each amended to read as follows:
((For cases which are subject to the foster care citizen review board pilot project under RCW 13.70.005, a court review hearing shall occur no later than eighteen months following commencement of the child's placement episode.)) A permanency planning hearing shall be held before the court in accordance with RCW 13.34.145. Thereafter, court review hearings shall occur at least once every ((year)) six months, under RCW 13.34.130(5), until the child is no longer within the jurisdiction of the court or the child returns home or a guardianship order or adoption decree is entered. The court may review the case more frequently upon the court's own motion or upon the request of any party to the proceeding ((or the citizen review board assigned to the child's case)).
NEW SECTION. Sec. V. A new section is added to chapter 74.14A RCW to read as follows:
The secretary shall:
(1)(a) Consult with relevant qualified professionals to develop a set of minimum guidelines to be used for identifying all children who are in a state-assisted support system, whether at-home or out-of-home, who are likely to need long-term care or assistance, because they face physical, emotional, medical, mental, or other long-term challenges.
(b) The guidelines must, at a minimum, consider the following criteria for identifying children in need of long-term care or assistance:
(i) Placement within the foster care system for two years or more;
(ii) Multiple foster care placements;
(iii) Repeated unsuccessful efforts to be placed with a permanent adoptive family;
(iv) Chronic behavioral or educational problems;
(v) Repetitive criminal acts or offenses;
(vi) Failure to comply with court-ordered disciplinary actions and other imposed guidelines of behavior, including drug and alcohol rehabilitation; and
(vii) Chronic physical, emotional, medical, mental, or other similar conditions necessitating long-term care or assistance;
(2) Develop programs that are necessary for the long-term care of children and youth that are identified for the purposes of this section. Programs must: (a) Effectively address the educational, physical, emotional, mental, and medical needs of children and youth; and (b) incorporate an array of family support options, to individual needs and choices of the child and family. The programs must be ready for implementation by January 1, 1995;
(3) Conduct an evaluation of all children currently within the foster care agency caseload to identify those children who meet the criteria set forth in this section. The evaluation shall be completed by January 1, 1994. All children entering the foster care system after January 1, 1994, must be evaluated for identification of long-term needs within thirty days of placement;
(4) Study and develop a comprehensive plan for the evaluation and identification of all children and youth in need of long-term care or assistance, including, but not limited to, the mentally ill, developmentally disabled, medically fragile, seriously emotionally or behaviorally disabled, and physically impaired;
(5) Study and develop a plan for the children and youth in need of long-term care or assistance to ensure the coordination of services between the department's divisions and between other state agencies who are involved with the child or youth.
(6) Study and develop guidelines for transitional services, between long-term care programs, based on the person's age or mental, physical, emotional, or medical condition; and
(7) Study and develop a statutory proposal for the emancipation of minors and report its findings and recommendations to the legislature by January 1, 1994."
On page 1, line 2 of the title, after "care;" strike the remainder of the title and insert "amending RCW 13.70.100, 13.70.110, and 13.70.140; reenacting and amending RCW 13.70.005; and adding a new section to chapter 74.14A RCW."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Leonard moved that the House do concur in the Senate amendments to House Bill No. 1858 and pass the bill as amended by the Senate.
Representatives Leonard and Cooke spoke in favor of the motion and it was carried.
On motion of Representative Wood, Representatives Locke, Wang and Ogden were excused.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker stated the question before the House to be final passage of House Bill No. 1858 as amended by the Senate.
Representatives Leonard and Cooke spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on final passage of House Bill No. 1858 as amended by the Senate and the bill passed the House by the following vote: Yeas - 93, Nays - 0, Absent - 2, Excused - 3.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Morton, Myers, H., Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, Valle, Vance, Van Luven, Veloria, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 93.
Absent: Representatives Dorn and Heavey - 2.
Excused: Representatives Locke, Ogden and Wang - 3.
House Bill No. 1858, as amended by the Senate, having received the constitutional majority, was declared passed.
The Speaker declared the House to be at ease.
The Speaker called the House to order.
REPORT OF CONFERENCE COMMITTEE
April 19, 1993
Includes "New Item": YES
Mr. Speaker:
Mr. President:
We of your Conference Committee, to whom was referred ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5304, providing for health care costs and access, have had the same under consideration and we recommend that:
The House Committee on Revenue amendment adopted April 9, 1993, not be adopted, and that the following Conference Committee striking amendment (H-2235.9/93) be adopted with the following amendment:
On page 4, line 21, strike "contained" and insert "included"
On page 4, line 22, after "supplemental benefits" strike "package"
On page 7, line 23, after "guidelines))" strike "or medical assistance"
On page 31, beginning on line 14, after "28A.400.200," strike all material through "authority" on line 15, and insert "effective on and after October 1, 1995"
On page 98, line 6, after "means a" strike "certified"
On page 129, beginning on line 29, after "commission." strike all material through "act." on line 30
On page 129, beginning on line 34, after "commission." strike all material through "package," on line 35 and insert "Benefits"
On page 130, line 2, after "situation" insert ", or the provisions of RCW 49.60.174(2)"
On page 160, line 17, strike "1998" and insert "1999"
On page 163, line 1, strike "1998" and insert "1999"
On page 169, line 22, after "account," insert "the public health services account, the health system capacity account, the personal health services account,"
On page 171, beginning on line 20, after "(this act);" strike all material through "recipients." on line 24 and insert "and (ii) enrollee point of service, cost-sharing levels adopted pursuant to section 449 of this act be applied to medical assistance recipients. In negotiating the waiver, consideration shall be given to the degree to which supplemental benefits should be offered to medicaid recipients, if at all."
Strike everything after the enacting clause and insert the following:
PART I. FINDINGS, GOALS, AND INTENT
NEW SECTION. Sec. 101. FINDINGS. The legislature finds that our health and financial security are jeopardized by our ever increasing demand for health care and by current health insurance and health system practices. Current health system practices encourage public demand for unneeded, ineffective, and sometimes dangerous health treatments. These practices often result in unaffordable cost increases that far exceed ordinary inflation for essential care. Current total health care expenditure rates should be sufficient to provide access to essential health care interventions to all within a reformed, efficient system.
The legislature finds that too many of our state's residents are without health insurance, that each year many individuals and families are forced into poverty because of serious illness, and that many must leave gainful employment to be eligible for publicly funded medical services. Additionally, thousands of citizens are at risk of losing adequate health insurance, have had insurance canceled recently, or cannot afford to renew existing coverage.
The legislature finds that businesses find it difficult to pay for health insurance and remain competitive in a global economy, and that individuals, the poor, and small businesses bear an inequitable health insurance burden.
The legislature finds that persons of color have significantly higher rates of mortality and poor health outcomes, and substantially lower numbers and percentages of persons covered by health insurance than the general population. It is intended that chapter . . ., Laws of 1993 (this act) make provisions to address the special health care needs of these racial and ethnic populations in order to improve their health status.
The legislature finds that uncontrolled demand and expenditures for health care are eroding the ability of families, businesses, communities, and governments to invest in other enterprises that promote health, maintain independence, and ensure continued economic welfare. Housing, nutrition, education, and the environment are all diminished as we invest ever increasing shares of wealth in health care treatments.
The legislature finds that while immediate steps must be taken, a long-term plan of reform is also needed.
NEW SECTION. Sec. 102. LEGISLATIVE INTENT AND GOALS. (1) The legislature intends that state government policy stabilize health services costs, assure access to essential services for all residents, actively address the health care needs of persons of color, improve the public's health, and reduce unwarranted health services costs to preserve the viability of nonhealth care businesses.
(2) The legislature intends that:
(a) Total health services costs be stabilized and kept within rates of increase similar to the rates of personal income growth within a publicly regulated, private marketplace that preserves personal choice;
(b) State residents be enrolled in the certified health plan of their choice that meets state standards regarding affordability, accessibility, cost-effectiveness, and clinical efficaciousness;
(c) State residents be able to choose health services from the full range of health care providers, as defined in section 402(12) of this act, in a manner consistent with good health services management, quality assurance, and cost effectiveness;
(d) Individuals and businesses have the option to purchase any health services they may choose in addition to those contained in the uniform benefits package or supplemental benefits package;
(e) All state residents, businesses, employees, and government participate in payment for health services, with total costs to individuals on a sliding scale based on income to encourage efficient and appropriate utilization of services;
(f) These goals be accomplished within a reformed system using private service providers and facilities in a way that allows consumers to choose among competing plans operating within budget limits and other regulations that promote the public good; and
(g) A policy of coordinating the delivery, purchase, and provision of health services among the federal, state, local, and tribal governments be encouraged and accomplished by chapter . . ., Laws of 1993 (this act).
(3) Accordingly, the legislature intends that chapter . . ., Laws of 1993 (this act) provide both early implementation measures and a process for overall reform of the health services system.
PART II. EARLY IMPLEMENTATION MEASURES
A. BASIC HEALTH PLAN EXPANSION
NEW SECTION. Sec. 201. A new section is added to chapter 70.47 RCW to read as follows:
TRANSFER OF POWER AND DUTIES TO WASHINGTON STATE HEALTH CARE AUTHORITY. The powers, duties, and functions of the Washington basic health plan are hereby transferred to the Washington state health care authority. All references to the administrator of the Washington basic health plan in the Revised Code of Washington shall be construed to mean the administrator of the Washington state health care authority.
NEW SECTION. Sec. 202. TRANSFER OF RECORDS, EQUIPMENT, FUNDS. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the Washington basic health plan shall be delivered to the custody of the Washington state health care authority. All cabinets, furniture, office equipment, motor vehicles, and other tangible property used by the Washington basic health plan shall be made available to the Washington state health care authority. All funds, credits, or other assets held by the Washington basic health plan shall be assigned to the Washington state health care authority.
Any appropriations made to the Washington basic health plan shall, on the effective date of this section, be transferred and credited to the Washington state health care authority. At no time may those funds in the basic health plan trust account, any funds appropriated for the subsidy of any enrollees, or any premium payments or other sums made or received on behalf of any enrollees in the basic health plan be commingled with any appropriated funds designated or intended for the purposes of providing health care coverage to any state or other public employees.
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. 203. TRANSFER OF EMPLOYEES. All employees of the Washington basic health plan are transferred to the jurisdiction of the Washington state health care authority. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the Washington state health care authority to perform their usual duties upon the same terms as formerly, 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. 204. RULES AND BUSINESS. All rules and all pending business before the Washington basic health plan shall be continued and acted upon by the Washington state health care authority. All existing contracts and obligations shall remain in full force and shall be performed by the Washington state health care authority.
NEW SECTION. Sec. 205. VALIDITY OF PRIOR ACTS. The transfer of the powers, duties, functions, and personnel of the Washington basic health plan shall not affect the validity of any act performed prior to the effective date of this section.
NEW SECTION. Sec. 206. APPORTIONMENT OF BUDGETED FUNDS. If apportionments of budgeted funds are required because of the transfers directed by sections 201 through 205 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. 207. COLLECTIVE BARGAINING. Nothing contained in sections 201 through 206 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. 208. RCW 70.47.010 and 1987 1st ex.s. c 5 s 3 are each amended to read as follows:
BASIC HEALTH PLAN--FINDINGS. (1) The legislature finds that:
(a) A significant percentage of the population of this state does not have reasonably available insurance or other coverage of the costs of necessary basic health care services;
(b) This lack of basic health care coverage is detrimental to the health of the individuals lacking coverage and to the public welfare, and results in substantial expenditures for emergency and remedial health care, often at the expense of health care providers, health care facilities, and all purchasers of health care, including the state; and
(c) The use of managed health care systems has significant potential to reduce the growth of health care costs incurred by the people of this state generally, and by low-income pregnant women ((who are an especially vulnerable population, along with their children)), and at-risk children and adolescents who need greater access to managed health care.
(2) The purpose of this chapter is to provide or make more readily available necessary basic health care services in an appropriate setting to working persons and others who lack coverage, at a cost to these persons that does not create barriers to the utilization of necessary health care services. To that end, this chapter establishes a program to be made available to those residents ((under sixty-five years of age)) not ((otherwise)) eligible for medicare ((with gross family income at or below two hundred percent of the federal poverty guidelines)) or medical assistance who share in a portion of the cost or who pay the full cost of receiving basic health care services from a managed health care system.
(3) It is not the intent of this chapter to provide health care services for those persons who are presently covered through private employer-based health plans, nor to replace employer-based health plans. However, the legislature recognizes that cost-effective and affordable health plans may not always be available to small business employers. Further, it is the intent of the legislature to expand, wherever possible, the availability of private health care coverage and to discourage the decline of employer-based coverage.
(4) ((The program authorized under this chapter is strictly limited in respect to the total number of individuals who may be allowed to participate and the specific areas within the state where it may be established. All such restrictions or limitations shall remain in full force and effect until quantifiable evidence based upon the actual operation of the program, including detailed cost benefit analysis, has been presented to the legislature and the legislature, by specific act at that time, may then modify such limitations.))
(a) It is the purpose of this chapter to acknowledge the initial success of this program that has (i) assisted thousands of families in their search for affordable health care; (ii) demonstrated that low-income, uninsured families are willing to pay for their own health care coverage to the extent of their ability to pay; and (iii) proved that local health care providers are willing to enter into a public-private partnership as a managed care system.
(b) As a consequence, the legislature intends to extend an option to enroll to certain citizens above two hundred percent of the federal poverty guidelines within the state who reside in communities where the plan is operational and who collectively or individually wish to exercise the opportunity to purchase health care coverage through the basic health plan if the purchase is done at no cost to the state. It is also the intent of the legislature to allow employers and other financial sponsors to financially assist such individuals to purchase health care through the program so long as such purchase does not result in a lower standard of coverage for employees.
(c) The legislature intends that, to the extent of available funds, the program be available throughout Washington state to subsidized and nonsubsidized enrollees. It is also the intent of the legislature to enroll subsidized enrollees first, to the maximum extent feasible.
(d) The legislature directs that the basic health plan administrator identify enrollees who are likely to be eligible for medical assistance and assist these individuals in applying for and receiving medical assistance. The administrator and the department of social and health services shall implement a seamless system to coordinate eligibility determinations and benefit coverage for enrollees of the basic health plan and medical assistance recipients.
Sec. 209. RCW 70.47.020 and 1987 1st ex.s. c 5 s 4 are each amended to read as follows:
BASIC HEALTH PLAN--DEFINITIONS. As used in this chapter:
(1) "Washington basic health plan" or "plan" means the system of enrollment and payment on a prepaid capitated basis for basic health care services, administered by the plan administrator through participating managed health care systems, created by this chapter.
(2) "Administrator" means the Washington basic health plan administrator, who also holds the position of administrator of the Washington state health care authority.
(3) "Managed health care system" means any health care organization, including health care providers, insurers, health care service contractors, health maintenance organizations, or any combination thereof, that provides directly or by contract basic health care services, as defined by the administrator and rendered by duly licensed providers, on a prepaid capitated basis to a defined patient population enrolled in the plan and in the managed health care system. On and after July 1, 1995, "managed health care system" means a certified health plan, as defined in section 402 of this act.
(4) "Subsidized enrollee" means an individual, or an individual plus the individual's spouse ((and/or)) or dependent children, ((all under the age of sixty-five and)) not ((otherwise)) eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, whose gross family income at the time of enrollment does not exceed twice the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services, who the administrator determines at the time of application does not have health insurance more comprehensive than that offered by the plan, and who chooses to obtain basic health care coverage from a particular managed health care system in return for periodic payments to the plan.
(5) "Nonsubsidized enrollee" means an individual, or an individual plus the individual's spouse or dependent children, not eligible for medicare, who resides in an area of the state served by a managed health care system participating in the plan, who the administrator determines at the time of application does not have health insurance more comprehensive than that offered by the plan, who chooses to obtain basic health care coverage from a particular managed health care system, and who pays or on whose behalf is paid the full costs for participation in the plan, without any subsidy from the plan.
(6) "Subsidy" means the difference between the amount of periodic payment the administrator makes((, from funds appropriated from the basic health plan trust account,)) to a managed health care system on behalf of ((an)) a subsidized enrollee plus the administrative cost to the plan of providing the plan to that subsidized enrollee, and the amount determined to be the subsidized enrollee's responsibility under RCW 70.47.060(2).
(((6))) (7) "Premium" means a periodic payment, based upon gross family income ((and determined under RCW 70.47.060(2),)) which an ((enrollee)) individual, their employer or another financial sponsor makes to the plan as consideration for enrollment in the plan as a subsidized enrollee or a nonsubsidized enrollee.
(((7))) (8) "Rate" means the per capita amount, negotiated by the administrator with and paid to a participating managed health care system, that is based upon the enrollment of subsidized and nonsubsidized enrollees in the plan and in that system.
Sec. 210. RCW 70.47.030 and 1992 c 232 s 907 are each amended to read as follows:
ACCOUNTS. (1) The basic health plan trust account is hereby established in the state treasury. ((All)) Any nongeneral fund-state funds collected for this program shall be deposited in the basic health plan trust account and may be expended without further appropriation. Moneys in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of enrollees in the plan and payment of costs of administering the plan. ((After July 1, 1993, the administrator shall not expend or encumber for an ensuing fiscal period amounts exceeding ninety-five percent of the amount anticipated to be spent for purchased services during the fiscal year.))
(2) The basic health plan subscription account is created in the custody of the state treasurer. All receipts from amounts due from or on behalf of nonsubsidized enrollees shall be deposited into the account. Funds in the account shall be used exclusively for the purposes of this chapter, including payments to participating managed health care systems on behalf of nonsubsidized enrollees in the plan and payment of costs of administering the plan. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.
(3) The administrator shall take every precaution to see that none of the funds in the separate accounts created in this section or that any premiums paid either by subsidized or nonsubsidized enrollees are commingled in any way, except that the administrator may combine funds designated for administration of the plan into a single administrative account.
Sec. 211. RCW 70.47.040 and 1987 1st ex.s. c 5 s 6 are each amended to read as follows:
BASIC HEALTH PLAN--PROGRAM WITHIN STATE HEALTH CARE AUTHORITY. (1) The Washington basic health plan is created as ((an independent agency of the state)) a program within the Washington state health care authority. The administrative head and appointing authority of the plan shall be the administrator ((who shall be appointed by the governor, with the consent of the senate, and shall serve at the pleasure of the governor. The salary for this office shall be set by the governor pursuant to RCW 43.03.040)) of the Washington state health care authority. The administrator shall appoint a medical director. The ((administrator,)) medical director((,)) and up to five other employees of the plan shall be exempt from the civil service law, chapter 41.06 RCW.
(2) The administrator shall employ such other staff as are necessary to fulfill the responsibilities and duties of the administrator, such staff to be subject to the civil service law, chapter 41.06 RCW. In addition, the administrator may contract with third parties for services necessary to carry out its activities where this will promote economy, avoid duplication of effort, and make best use of available expertise. Any such contractor or consultant shall be prohibited from releasing, publishing, or otherwise using any information made available to it under its contractual responsibility without specific permission of the plan. The administrator may call upon other agencies of the state to provide available information as necessary to assist the administrator in meeting its responsibilities under this chapter, which information shall be supplied as promptly as circumstances permit.
(3) The administrator may appoint such technical or advisory committees as he or she deems necessary. The administrator shall appoint a standing technical advisory committee that is representative of health care professionals, health care providers, and those directly involved in the purchase, provision, or delivery of health care services, as well as consumers and those knowledgeable of the ethical issues involved with health care public policy. Individuals appointed to any technical or other advisory committee shall serve without compensation for their services as members, but may be reimbursed for their travel expenses pursuant to RCW 43.03.050 and 43.03.060.
(4) The administrator may apply for, receive, and accept grants, gifts, and other payments, including property and service, from any governmental or other public or private entity or person, and may make arrangements as to the use of these receipts, including the undertaking of special studies and other projects relating to health care costs and access to health care.
(5) ((In the design, organization, and administration of the plan under this chapter, the administrator shall consider the report of the Washington health care project commission established under chapter 303, Laws of 1986. Nothing in this chapter requires the administrator to follow any specific recommendation contained in that report except as it may also be included in this chapter or other law)) Whenever feasible, the administrator shall reduce the administrative cost of operating the program by adopting joint policies or procedures applicable to both the basic health plan and employee health plans.
Sec. 212. RCW 70.47.060 and 1992 c 232 s 908 are each amended to read as follows:
ADMINISTRATOR'S POWERS AND DUTIES. The administrator has the following powers and duties:
(1) To design and from time to time revise a schedule of covered basic health care services, including physician services, inpatient and outpatient hospital services, prescription drugs and medications, and other services that may be necessary for basic health care, which subsidized and nonsubsidized enrollees in any participating managed health care system under the Washington basic health plan shall be entitled to receive in return for premium payments to the plan. The schedule of services shall emphasize proven preventive and primary health care and shall include all services necessary for prenatal, postnatal, and well-child care. However, ((for the period ending June 30, 1993,)) with respect to coverage for groups of subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for ((prenatal or postnatal)) such services ((that are provided under the medical assistance program under chapter 74.09 RCW)) except to the extent that such services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider((, or except to provide any such services associated with pregnancies diagnosed by the managed care provider before July 1, 1992)). The schedule of services shall also include a separate schedule of basic health care services for children, eighteen years of age and younger, for those subsidized or nonsubsidized enrollees who choose to secure basic coverage through the plan only for their dependent children. In designing and revising the schedule of services, the administrator shall consider the guidelines for assessing health services under the mandated benefits act of 1984, RCW 48.42.080, and such other factors as the administrator deems appropriate. On and after July 1, 1995, the uniform benefits package adopted and from time to time revised by the Washington health services commission pursuant to section 449 of this act shall be implemented by the administrator as the schedule of covered basic health care services. However, with respect to coverage for subsidized enrollees who are eligible to receive prenatal and postnatal services through the medical assistance program under chapter 74.09 RCW, the administrator shall not contract for such services except to the extent that the services are necessary over not more than a one-month period in order to maintain continuity of care after diagnosis of pregnancy by the managed care provider.
(2)(a) To design and implement a structure of periodic premiums due the administrator from subsidized enrollees that is based upon gross family income, giving appropriate consideration to family size ((as well as)) and the ages of all family members. The enrollment of children shall not require the enrollment of their parent or parents who are eligible for the plan. The structure of periodic premiums shall be applied to subsidized enrollees entering the plan as individuals pursuant to subsection (9) of this section and to the share of the cost of the plan due from subsidized enrollees entering the plan as employees pursuant to subsection (10) of this section.
(b) To determine the periodic premiums due the administrator from nonsubsidized enrollees. Premiums due from nonsubsidized enrollees shall be in an amount equal to the cost charged by the managed health care system provider to the state for the plan plus the administrative cost of providing the plan to those enrollees and the appropriate premium tax as provided by law.
(c) An employer or other financial sponsor may, with the prior approval of the administrator, pay the premium, rate, or any other amount on behalf of a subsidized or nonsubsidized enrollee, by arrangement with the enrollee and through a mechanism acceptable to the administrator, but in no case shall the payment made on behalf of the enrollee exceed the total premiums due from the enrollee.
(3) To design and implement a structure of ((nominal)) copayments due a managed health care system from subsidized and nonsubsidized enrollees. The structure shall discourage inappropriate enrollee utilization of health care services, but shall not be so costly to enrollees as to constitute a barrier to appropriate utilization of necessary health care services. On and after July 1, 1995, the administrator shall endeavor to make the copayments structure of the plan consistent with enrollee point of service cost-sharing levels adopted by the Washington health services commission, giving consideration to funding available to the plan.
(4) ((To design and implement, in concert with a sufficient number of potential providers in a discrete area, an enrollee financial participation structure, separate from that otherwise established under this chapter, that has the following characteristics:
(a) Nominal premiums that are based upon ability to pay, but not set at a level that would discourage enrollment;
(b) A modified fee-for-services payment schedule for providers;
(c) Coinsurance rates that are established based on specific service and procedure costs and the enrollee's ability to pay for the care. However, coinsurance rates for families with incomes below one hundred twenty percent of the federal poverty level shall be nominal. No coinsurance shall be required for specific proven prevention programs, such as prenatal care. The coinsurance rate levels shall not have a measurable negative effect upon the enrollee's health status; and
(d) A case management system that fosters a provider-enrollee relationship whereby, in an effort to control cost, maintain or improve the health status of the enrollee, and maximize patient involvement in her or his health care decision-making process, every effort is made by the provider to inform the enrollee of the cost of the specific services and procedures and related health benefits.
The potential financial liability of the plan to any such providers shall not exceed in the aggregate an amount greater than that which might otherwise have been incurred by the plan on the basis of the number of enrollees multiplied by the average of the prepaid capitated rates negotiated with participating managed health care systems under RCW 70.47.100 and reduced by any sums charged enrollees on the basis of the coinsurance rates that are established under this subsection.
(5))) To limit enrollment of persons who qualify for subsidies so as to prevent an overexpenditure of appropriations for such purposes. Whenever the administrator finds that there is danger of such an overexpenditure, the administrator shall close enrollment until the administrator finds the danger no longer exists.
(5) To limit the payment of subsidies to subsidized enrollees, as defined in RCW 70.47.020.
(6) To adopt a schedule for the orderly development of the delivery of services and availability of the plan to residents of the state, subject to the limitations contained in RCW 70.47.080 or any act appropriating funds for the plan.
((In the selection of any area of the state for the initial operation of the plan, the administrator shall take into account the levels and rates of unemployment in different areas of the state, the need to provide basic health care coverage to a population reasonably representative of the portion of the state's population that lacks such coverage, and the need for geographic, demographic, and economic diversity.
Before July 1, 1988, the administrator shall endeavor to secure participation contracts with managed health care systems in discrete geographic areas within at least five congressional districts.))
(7) To solicit and accept applications from managed health care systems, as defined in this chapter, for inclusion as eligible basic health care providers under the plan. The administrator shall endeavor to assure that covered basic health care services are available to any enrollee of the plan from among a selection of two or more participating managed health care systems. In adopting any rules or procedures applicable to managed health care systems and in its dealings with such systems, the administrator shall consider and make suitable allowance for the need for health care services and the differences in local availability of health care resources, along with other resources, within and among the several areas of the state. Contracts with participating managed health care systems shall ensure that basic health plan enrollees who become eligible for medical assistance may, at their option, continue to receive services from their existing providers within the managed health care system if such providers have entered into provider agreements with the department of social and health services.
(8) To receive periodic premiums from or on behalf of subsidized and nonsubsidized enrollees, deposit them in the basic health plan operating account, keep records of enrollee status, and authorize periodic payments to managed health care systems on the basis of the number of enrollees participating in the respective managed health care systems.
(9) To accept applications from individuals residing in areas served by the plan, on behalf of themselves and their spouses and dependent children, for enrollment in the Washington basic health plan as subsidized or nonsubsidized enrollees, to establish appropriate minimum-enrollment periods for enrollees as may be necessary, and to determine, upon application and at least ((annually)) semiannually thereafter, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. ((An enrollee who remains current in payment of the sliding-scale premium, as determined under subsection (2) of this section, and whose gross family income has risen above twice the federal poverty level, may continue enrollment unless and until the enrollee's gross family income has remained above twice the poverty level for six consecutive months, by making payment at the unsubsidized rate required for the managed health care system in which he or she may be enrolled.)) No subsidy may be paid with respect to any enrollee whose current gross family income exceeds twice the federal poverty level or, subject to RCW 70.47.110, who is a recipient of medical assistance or medical care services under chapter 74.09 RCW. If, as a result of an eligibility review, the administrator determines that a subsidized enrollee's income exceeds twice the federal poverty level and that the enrollee knowingly failed to inform the plan of such increase in income, the administrator may bill the enrollee for the subsidy paid on the enrollee's behalf during the period of time that the enrollee's income exceeded twice the federal poverty level. If a number of enrollees drop their enrollment for no apparent good cause, the administrator may establish appropriate rules or requirements that are applicable to such individuals before they will be allowed to re-enroll in the plan.
(10) To accept applications from business owners on behalf of themselves and their employees, spouses, and dependent children, as subsidized or nonsubsidized enrollees, who reside in an area served by the plan. The administrator may require all or the substantial majority of the eligible employees of such businesses to enroll in the plan and establish those procedures necessary to facilitate the orderly enrollment of groups in the plan and into a managed health care system. The administrator shall require that a business owner pay at least fifty percent of the nonsubsidized premium cost of the plan on behalf of each employee enrolled in the plan. Enrollment is limited to those not eligible for medicare who wish to enroll in the plan and choose to obtain the basic health care coverage and services from a managed care system participating in the plan. The administrator shall adjust the amount determined to be due on behalf of or from all such enrollees whenever the amount negotiated by the administrator with the participating managed health care system or systems is modified or the administrative cost of providing the plan to such enrollees changes.
(11) To determine the rate to be paid to each participating managed health care system in return for the provision of covered basic health care services to enrollees in the system. Although the schedule of covered basic health care services will be the same for similar enrollees, the rates negotiated with participating managed health care systems may vary among the systems. In negotiating rates with participating systems, the administrator shall consider the characteristics of the populations served by the respective systems, economic circumstances of the local area, the need to conserve the resources of the basic health plan trust account, and other factors the administrator finds relevant.
(((11))) (12) To monitor the provision of covered services to enrollees by participating managed health care systems in order to assure enrollee access to good quality basic health care, to require periodic data reports concerning the utilization of health care services rendered to enrollees in order to provide adequate information for evaluation, and to inspect the books and records of participating managed health care systems to assure compliance with the purposes of this chapter. In requiring reports from participating managed health care systems, including data on services rendered enrollees, the administrator shall endeavor to minimize costs, both to the managed health care systems and to the ((administrator)) plan. The administrator shall coordinate any such reporting requirements with other state agencies, such as the insurance commissioner and the department of health, to minimize duplication of effort.
(((12) To monitor the access that state residents have to adequate and necessary health care services, determine the extent of any unmet needs for such services or lack of access that may exist from time to time, and make such reports and recommendations to the legislature as the administrator deems appropriate.))
(13) To evaluate the effects this chapter has on private employer-based health care coverage and to take appropriate measures consistent with state and federal statutes that will discourage the reduction of such coverage in the state.
(14) To develop a program of proven preventive health measures and to integrate it into the plan wherever possible and consistent with this chapter.
(15) To provide, consistent with available ((resources, technical)) funding, assistance for rural ((health activities that endeavor to develop needed health care services in rural parts of the state)) residents, underserved populations, and persons of color.
Sec. 213. RCW 70.47.080 and 1987 1st ex.s. c 5 s 10 are each amended to read as follows:
ENROLLMENT. On and after July 1, 1988, the administrator shall accept for enrollment applicants eligible to receive covered basic health care services from the respective managed health care systems which are then participating in the plan. ((The administrator shall not allow the total enrollment of those eligible for subsidies to exceed thirty thousand.))
Thereafter, total ((enrollment shall not exceed the number established by the legislature in any act appropriating funds to the plan.
Before July 1, 1988, the administrator shall endeavor to secure participation contracts from managed health care systems in discrete geographic areas within at least five congressional districts of the state and in such manner as to allow residents of both urban and rural areas access to enrollment in the plan. The administrator shall make a special effort to secure agreements with health care providers in one such area that meets the requirements set forth in RCW 70.47.060(4))) subsidized enrollment shall not result in expenditures that exceed the total amount that has been made available by the legislature in any act appropriating funds to the plan. To the extent that new funding is appropriated for expansion, the administrator shall endeavor to secure participation contracts from managed health care systems in geographic areas of the state that are unserved by the plan at the time at which the new funding is appropriated. In the selection of any such areas the administrator shall take into account the levels and rates of unemployment in different areas of the state, the need to provide basic health care coverage to a population reasonably representative of the portion of the state's population that lacks such coverage, and the need for geographic, demographic, and economic diversity.
The administrator shall at all times closely monitor growth patterns of enrollment so as not to exceed that consistent with the orderly development of the plan as a whole, in any area of the state or in any participating managed health care system. The annual or biennial enrollment limitations derived from operation of the plan under this section do not apply to nonsubsidized enrollees as defined in RCW 70.47.020(5).
B. EXPANDED MANAGED CARE FOR STATE EMPLOYEES
Sec. 214. RCW 41.05.011 and 1990 c 222 s 2 are each amended to read as follows:
DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section shall apply throughout this chapter.
(1) "Administrator" means the administrator of the authority.
(2) "State purchased health care" or "health care" means medical and health care, pharmaceuticals, and medical equipment purchased with state and federal funds by the department of social and health services, the department of health, the basic health plan, the state health care authority, the department of labor and industries, the department of corrections, the department of veterans affairs, and local school districts.
(3) "Authority" means the Washington state health care authority.
(4) "Insuring entity" means an ((insurance carrier as defined in chapter 48.21 or 48.22)) insurer as defined in chapter 48.01 RCW, a health care service contractor as defined in chapter 48.44 RCW, or a health maintenance organization as defined in chapter 48.46 RCW. On and after July 1, 1995, "insuring entity" means a certified health plan, as defined in section 402 of this act.
(5) "Flexible benefit plan" means a benefit plan that allows employees to choose the level of health care coverage provided and the amount of employee contributions from among a range of choices offered by the authority.
(6) "Employee" includes all full-time and career seasonal employees of the state, whether or not covered by civil service; elected and appointed officials of the executive branch of government, including full-time members of boards, commissions, or committees; and includes any or all part-time and temporary employees under the terms and conditions established under this chapter by the authority; justices of the supreme court and judges of the court of appeals and the superior courts; and members of the state legislature or of the legislative authority of any county, city, or town who are elected to office after February 20, 1970. "Employee" also includes: (a) By October 1, 1995, all employees of school districts. Between October 1, 1994, and September 30, 1995, "employee" includes employees of those school districts for whom the authority has undertaken the purchase of insurance benefits. The transition to insurance benefits purchasing by the authority may not disrupt existing insurance contracts between school district employees and insurers. However, except to the extent provided in RCW 28A.400.200, any such contract that provides for health insurance benefits coverage after October 1, 1995, shall be void as of that date if the contract was entered into, renewed, or extended after July 1, 1993. Prior to October 1, 1994, "employee" includes employees of a school district if the board of directors of the school district seeks and receives the approval of the authority to provide any of its insurance programs by contract with the authority; (b) employees of a county, municipality, or other political subdivision of the state if the legislative authority of the county, municipality, or other political subdivision of the state seeks and receives the approval of the authority to provide any of its insurance programs by contract with the authority, as provided in RCW 41.04.205((, and employees of a school district if the board of directors of the school district seeks and receives the approval of the authority to provide any of its insurance programs by contract with the authority as provided in RCW 28A.400.350)); (c) employees of employee organizations representing state civil service employees, at the option of each such employee organization, and, effective October 1, 1995, employees of employee organizations currently pooled with employees of school districts for the purpose of purchasing insurance benefits, at the option of each such employee organization.
(7) "Board" means the ((state)) public employees' benefits board established under RCW 41.05.055.
Sec. 215. RCW 41.05.021 and 1990 c 222 s 3 are each amended to read as follows:
HEALTH CARE AUTHORITY DUTIES. (1) The Washington state health care authority is created within the executive branch. The authority shall have an administrator appointed by the governor, with the consent of the senate. The administrator shall serve at the pleasure of the governor. The administrator may employ up to seven staff members, who shall be exempt from chapter 41.06 RCW, and any additional staff members as are necessary to administer this chapter. The primary duties of the authority shall be to administer state employees' insurance benefits ((and to)), study state-purchased health care programs in order to maximize cost containment in these programs while ensuring access to quality health care, and implement state initiatives, joint purchasing strategies, and techniques for efficient administration that have potential application to all state-purchased health services. The authority's duties include, but are not limited to, the following:
(((1))) (a) To administer a health care benefit program for employees as specifically authorized in RCW 41.05.065 and in accordance with the methods described in RCW 41.05.075, 41.05.140, and other provisions of this chapter;
(((2))) (b) To analyze state-purchased health care programs and to explore options for cost containment and delivery alternatives for those programs that are consistent with the purposes of those programs, including, but not limited to:
(((a))) (i) Creation of economic incentives for the persons for whom the state purchases health care to appropriately utilize and purchase health care services, including the development of flexible benefit plans to offset increases in individual financial responsibility;
(((b))) (ii) Utilization of provider arrangements that encourage cost containment ((and ensure access to quality care)), including but not limited to prepaid delivery systems, utilization review, and prospective payment methods, and that ensure access to quality care, including assuring reasonable access to local providers, especially for employees residing in rural areas;
(((c))) (iii) Coordination of state agency efforts to purchase drugs effectively as provided in RCW 70.14.050;
(((d))) (iv) Development of recommendations and methods for purchasing medical equipment and supporting services on a volume discount basis; and
(((e))) (v) Development of data systems to obtain utilization data from state-purchased health care programs in order to identify cost centers, utilization patterns, provider and hospital practice patterns, and procedure costs, utilizing the information obtained pursuant to RCW 41.05.031;
(((3))) (c) To analyze areas of public and private health care interaction;
(((4))) (d) To provide information and technical and administrative assistance to the board;
(((5))) (e) To review and approve or deny applications from counties, municipalities, and other political subdivisions of the state((, and school districts)) to provide state-sponsored insurance or self-insurance programs to their employees in accordance with the provisions of RCW 41.04.205 ((and 28A.400.350)), setting the premium contribution for approved groups as outlined in RCW 41.05.050;
(((6))) (f) To appoint a health care policy technical advisory committee as required by RCW 41.05.150; and
(((7))) (g) To promulgate and adopt rules consistent with this chapter as described in RCW 41.05.160.
(2) The public employees' benefits board shall implement strategies to promote managed competition among employee health benefit plans by January 1, 1995, including but not limited to:
(a) Standardizing the benefit package;
(b) Soliciting competitive bids for the benefit package;
(c) Limiting the state's contribution to a percent of the lowest priced sealed bid of a qualified plan within a geographical area. If the state's contribution is less than one hundred percent of the lowest priced sealed bid, employee financial contributions shall be structured on a sliding-scale basis related to household income;
(d) Monitoring the impact of the approach under this subsection with regards to: Efficiencies in health service delivery, cost shifts to subscribers, access to and choice of managed care plans state-wide, and quality of health services. The health care authority shall also advise on the value of administering a benchmark employer-managed plan to promote competition among managed care plans. The health care authority shall report its findings and recommendations to the legislature by January 1, 1997.
Sec. 216. RCW 41.05.050 and 1988 c 107 s 18 are each amended to read as follows:
FERRY EMPLOYEES. (1) Every department, division, or separate agency of state government, and such county, municipal, or other political subdivisions as are covered by this chapter, shall provide contributions to insurance and health care plans for its employees and their dependents, the content of such plans to be determined by the authority. Contributions, paid by the county, the municipality, or other political subdivision for their employees, shall include an amount determined by the authority to pay such administrative expenses of the authority as are necessary to administer the plans for employees of those groups. All such contributions will be paid into the ((state)) public employees' health insurance account.
(2) The contributions of any department, division, or separate agency of the state government, and such county, municipal, or other political subdivisions as are covered by this chapter, shall be set by the authority, subject to the approval of the governor for availability of funds as specifically appropriated by the legislature for that purpose. ((However,)) Insurance and health care contributions for ferry employees shall be governed by RCW 47.64.270 until December 31, 1996. On and after January 1, 1997, ferry employees shall enroll with certified health plans under chapter . . ., Laws of 1993 (this act).
(3) The administrator with the assistance of the ((state)) public employees' benefits board shall survey private industry and public employers in the state of Washington to determine the average employer contribution for group insurance programs under the jurisdiction of the authority. Such survey shall be conducted during each even-numbered year but may be conducted more frequently. The survey shall be reported to the authority for its use in setting the amount of the recommended employer contribution to the employee insurance benefit program covered by this chapter. The authority shall transmit a recommendation for the amount of the employer contribution to the governor and the director of financial management for inclusion in the proposed budgets submitted to the legislature.
Sec. 217. RCW 41.05.055 and 1989 c 324 s 1 are each amended to read as follows:
PUBLIC EMPLOYEES' BENEFITS BOARD--SCHOOL DISTRICT EMPLOYEES. (1) The ((state)) public employees' benefits board is created within the authority. The function of the board is to design and approve insurance benefit plans for state employees and school district employees.
(2) Effective January 1, 1995, the board shall be composed of ((seven)) nine members appointed by the governor as follows:
(a) ((Three)) Two representatives of state employees, ((one of whom shall represent an employee association certified as exclusive representative of at least one bargaining unit of classified employees,)) one of whom shall represent an employee union certified as exclusive representative of at least one bargaining unit of classified employees, and one of whom is retired, is covered by a program under the jurisdiction of the board, and represents an organized group of retired public employees;
(b) Two representatives of school district employees, one of whom shall represent an association of school employees and one of whom is retired, and represents an organized group of retired school employees;
((Three)) (c) Four members with experience in health benefit management and cost containment; and
(((c))) (d) The administrator.
Prior to January 1, 1995, the composition of the public employees benefits board shall reflect its composition on January 1, 1993.
(3) The governor shall appoint the initial members of the board to staggered terms not to exceed four years. Members appointed thereafter shall serve two-year terms. Members of the board shall be compensated in accordance with RCW 43.03.250 and shall be reimbursed for their travel expenses while on official business in accordance with RCW 43.03.050 and 43.03.060. The board shall prescribe rules for the conduct of its business. The administrator shall serve as chair of the board. Meetings of the board shall be at the call of the chair.
Sec. 218. RCW 41.05.065 and 1988 c 107 s 8 are each amended to read as follows:
EMPLOYEE BENEFIT PLANS--STANDARDS. (1) The board shall study all matters connected with the provision of health care coverage, life insurance, liability insurance, accidental death and dismemberment insurance, and disability income insurance or any of, or a combination of, the enumerated types of insurance for employees and their dependents on the best basis possible with relation both to the welfare of the employees and to the state((: PROVIDED, That)), however liability insurance shall not be made available to dependents.
(2) The ((state)) public employees' benefits board shall develop employee benefit plans that include comprehensive health care benefits for all employees. In developing these plans, the board shall consider the following elements:
(a) Methods of maximizing cost containment while ensuring access to quality health care;
(b) Development of provider arrangements that encourage cost containment and ensure access to quality care, including but not limited to prepaid delivery systems and prospective payment methods;
(c) Wellness incentives that focus on proven strategies, such as smoking cessation, exercise, ((and)) automobile and motorcycle safety, blood cholesterol reduction, and nutrition education;
(d) Utilization review procedures including, but not limited to prior authorization of services, hospital inpatient length of stay review, requirements for use of outpatient surgeries and second opinions for surgeries, review of invoices or claims submitted by service providers, and performance audit of providers; ((and))
(e) Effective coordination of benefits;
(f) Minimum standards for insuring entities; and
(g) Minimum scope and content of standard benefit plans to be offered to enrollees participating in the employee health benefit plans. On and after July 1, 1995, the uniform benefits package shall constitute the minimum level of health benefits offered to employees. To maintain the comprehensive nature of employee health care benefits, employee eligibility criteria related to the number of hours worked and the benefits provided to employees shall be substantially equivalent to the state employees' health benefits plan and eligibility criteria in effect on January 1, 1993.
(3) The board shall design benefits and determine the terms and conditions of employee participation and coverage, including establishment of eligibility criteria.
(4) The board shall attempt to achieve enrollment of all employees and retirees in managed health care systems by July 1994.
The board may authorize premium contributions for an employee and the employee's dependents in a manner that encourages the use of cost-efficient managed health care systems. ((Such authorization shall require a vote of five members of the board for approval.))
(5) Employees ((may)) shall choose participation in ((only)) one of the health care benefit plans developed by the board.
(6) The board shall review plans proposed by insurance carriers that desire to offer property insurance and/or accident and casualty insurance to state employees through payroll deduction. The board may approve any such plan for payroll deduction by carriers holding a valid certificate of authority in the state of Washington and which the board determines to be in the best interests of employees and the state. The board shall promulgate rules setting forth criteria by which it shall evaluate the plans.
Sec. 219. RCW 41.05.120 and 1991 sp.s. c 13 s 100 are each amended to read as follows:
PUBLIC EMPLOYEES' INSURANCE ACCOUNT. (1) The ((state)) public employees' insurance account is hereby established in the custody of the state treasurer, to be used by the administrator for the deposit of contributions, reserves, dividends, and refunds, and for payment of premiums for employee insurance benefit contracts. Moneys from the account shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the administrator.
(2) The state treasurer and the state investment board may invest moneys in the ((state)) public employees' insurance account. All such investments shall be in accordance with RCW 43.84.080 or 43.84.150, whichever is applicable. The administrator shall determine whether the state treasurer or the state investment board or both shall invest moneys in the ((state)) public employees' insurance account.
Sec. 220. RCW 41.05.140 and 1988 c 107 s 12 are each amended to read as follows:
PUBLIC EMPLOYEES' INSURANCE RESERVE FUND. (1) The authority may self-fund or self-insure for public employees' benefits plans, but shall also enter into other methods of providing insurance coverage for insurance programs under its jurisdiction except property and casualty insurance. The authority shall contract for payment of claims or other administrative services for programs under its jurisdiction. If a program does not require the prepayment of reserves, the authority shall establish such reserves within a reasonable period of time for the payment of claims as are normally required for that type of insurance under an insured program. Reserves established by the authority shall be held in a separate trust fund by the state treasurer and shall be known as the ((state)) public employees' insurance reserve fund. The state investment board shall act as the investor for the funds and, except as provided in RCW 43.33A.160, one hundred percent of all earnings from these investments shall accrue directly to the ((state)) public employees' insurance reserve fund.
(2) Any savings realized as a result of a program created under this section shall not be used to increase benefits unless such use is authorized by statute.
(3) Any program created under this section shall be subject to the examination requirements of chapter 48.03 RCW as if the program were a domestic insurer. In conducting an examination, the commissioner shall determine the adequacy of the reserves established for the program.
(4) The authority shall keep full and adequate accounts and records of the assets, obligations, transactions, and affairs of any program created under this section.
(5) The authority shall file a quarterly statement of the financial condition, transactions, and affairs of any program created under this section in a form and manner prescribed by the insurance commissioner. The statement shall contain information as required by the commissioner for the type of insurance being offered under the program. A copy of the annual statement shall be filed with the speaker of the house of representatives and the president of the senate.
NEW SECTION. Sec. 221. A new section is added to chapter 41.05 RCW to read as follows:
MEDICARE SUPPLEMENTAL BENEFITS. The administrator, in consultation with the public employees' benefits board, shall design a self-insured medicare supplemental insurance plan for retired and disabled employees eligible for medicare. For the purpose of determining the appropriate scope of the self-funded medicare supplemental plan, the administrator shall consider the differences in the scope of health services available under the uniform benefits package and the medicare program. The proposed plan shall be submitted to appropriate committees of the legislature by December 1, 1993.
NEW SECTION. Sec. 222. A new section is added to chapter 41.05 RCW to read as follows:
MEDICARE SUPPLEMENTAL BENEFITS. Notwithstanding any other provisions of this title or rules or procedures adopted by the authority, the authority shall make available to retired or disabled employees who are eligible for medicare at least two medicare supplemental insurance policies that conform to the requirements of chapter 48.66 RCW. One policy shall include coverage for prescription drugs. The policies shall be chosen in consultation with the public employees' benefits board. These policies shall be made available to retired or disabled employees, or employees of county, municipal, or other political subdivisions eligible for coverage available under the authority. All offerings shall be made available not later than January 1, 1994.
NEW SECTION. Sec. 223. A new section is added to chapter 41.05 RCW to read as follows:
MEDICARE SUPPLEMENTAL BENEFITS. If a waiver of the medicare statute, Title XVIII of the federal social security act, sufficient to meet the requirements of chapter . . ., Laws of 1993 (this act) is not granted on or before January 1, 1995, the medicare supplemental insurance policies authorized under section 222 of this act shall be made available to any resident of the state eligible for medicare benefits. Except for those retired state or school district employees eligible to purchase medicare supplemental benefits through the authority, persons purchasing a medicare supplemental insurance policy under this section shall be required to pay the full cost of any such policy.
Sec. 224. RCW 47.64.270 and 1988 c 107 s 21 are each amended to read as follows:
FERRY EMPLOYEES--ENROLLMENT IN CERTIFIED HEALTH PLANS. Until December 31, 1996, absent a collective bargaining agreement to the contrary, the department of transportation shall provide contributions to insurance and health care plans for ferry system employees and dependents, as determined by the state health care authority, under chapter 41.05 RCW((.)); and the ferry system management and employee organizations may collectively bargain for other insurance and health care plans, and employer contributions may exceed that of other state agencies as provided in RCW 41.05.050, subject to RCW 47.64.180. On January 1, 1997, ferry employees shall enroll in certified health plans under the provisions of chapter . . ., Laws of 1993 (this act). To the extent that ferry employees by bargaining unit have absorbed the required offset of wage increases by the amount that the employer's contribution for employees' and dependents' insurance and health care plans exceeds that of other state general government employees in the 1985-87 fiscal biennium, employees shall not be required to absorb a further offset except to the extent the differential between employer contributions for those employees and all other state general government employees increases during any subsequent fiscal biennium. If such differential increases in the 1987-89 fiscal biennium or the 1985-87 offset by bargaining unit is insufficient to meet the required deduction, the amount available for compensation shall be reduced by bargaining unit by the amount of such increase or the 1985-87 shortage in the required offset. Compensation shall include all wages and employee benefits.
Sec. 225. RCW 28A.400.200 and 1990 1st ex.s. c 11 s 2 and 1990 c 33 s 381 are each reenacted and amended to read as follows:
SCHOOL DISTRICT EMPLOYEES--EMPLOYER CONTRIBUTIONS. (1) Every school district board of directors shall fix, alter, allow, and order paid salaries and compensation for all district employees in conformance with this section.
(2)(a) Salaries for certificated instructional staff shall not be less than the salary provided in the appropriations act in the state-wide salary allocation schedule for an employee with a baccalaureate degree and zero years of service; and
(b) Salaries for certificated instructional staff with a masters degree shall not be less than the salary provided in the appropriations act in the state-wide salary allocation schedule for an employee with a masters degree and zero years of service;
(3)(a) The actual average salary paid to basic education certificated instructional staff shall not exceed the district's average basic education certificated instructional staff salary used for the state basic education allocations for that school year as determined pursuant to RCW 28A.150.410.
(b) Fringe benefit contributions for basic education certificated instructional staff shall be included as salary under (a) of this subsection only to the extent that the district's actual average benefit contribution exceeds the ((greater of: (i) The formula amount for insurance benefits)) amount of the insurance benefits allocation provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable((; or (ii) the actual average amount provided by the school district in the 1986-87 school year)). For purposes of this section, fringe benefits shall not include payment for unused leave for illness or injury under RCW 28A.400.210((, or)); employer contributions for old age survivors insurance, workers' compensation, unemployment compensation, and retirement benefits under the Washington state retirement system; or employer contributions for health benefits in excess of the insurance benefits allocation provided per certificated instructional staff unit in the state operating appropriations act in effect at the time the compensation is payable. A school district may not use state funds to provide employer contributions for such excess health benefits.
(c) Salary and benefits for certificated instructional staff in programs other than basic education shall be consistent with the salary and benefits paid to certificated instructional staff in the basic education program.
(4) Salaries and benefits for certificated instructional staff may exceed the limitations in subsection (3) of this section only by separate contract for additional time, additional responsibilities, or incentives. Supplemental contracts shall not cause the state to incur any present or future funding obligation. Supplemental contracts shall be subject to the collective bargaining provisions of chapter 41.59 RCW and the provisions of RCW 28A.405.240, shall not exceed one year, and if not renewed shall not constitute adverse change in accordance with RCW 28A.405.300 through 28A.405.380. No district may enter into a supplemental contract under this subsection for the provision of services which are a part of the basic education program required by Article IX, section 3 of the state Constitution.
(5) Employee benefit plans offered by any district shall comply with RCW 28A.400.350 and 28A.400.275 and 28A.400.280.
Sec. 226. RCW 28A.400.350 and 1990 1st ex.s. c 11 s 3 and 1990 c 74 s 1 are each reenacted and amended to read as follows:
SCHOOL DISTRICTS--HEALTH CARE COVERAGE ONLY BY CONTRACTS WITH THE STATE HEALTH CARE AUTHORITY. (1) The board of directors of any of the state's school districts may make available liability, life, health, health care, accident, disability and salary protection or insurance or any one of, or a combination of the enumerated types of insurance, or any other type of insurance or protection, for the members of the boards of directors, the students, and employees of the school district, and their dependents. Such coverage may be provided by contracts with private carriers, with the state health care authority after July 1, 1990, pursuant to the approval of the authority administrator, or through self-insurance or self-funding pursuant to chapter 48.62 RCW, or in any other manner authorized by law. Except for health benefits purchased with nonstate funds as provided in RCW 28A.400.200, upon the making of a determination provided for in RCW 41.05.021(2) by the administrator of the state health care authority, health care coverage, life insurance, liability insurance, accidental death and dismemberment insurance, and disability income insurance shall be provided only by contracts with the state health care authority.
(2) Whenever funds are available for these purposes the board of directors of the school district may contribute all or a part of the cost of such protection or insurance for the employees of their respective school districts and their dependents. The premiums on such liability insurance shall be borne by the school district.
After October 1, 1990, school districts may not contribute to any employee protection or insurance other than liability insurance unless the district's employee benefit plan conforms to RCW 28A.400.275 and 28A.400.280.
(3) For school board members and students, the premiums due on such protection or insurance shall be borne by the assenting school board member or student((: PROVIDED, That)). The school district may contribute all or part of the costs, including the premiums, of life, health, health care, accident or disability insurance which shall be offered to all students participating in interschool activities on the behalf of or as representative of their school or school district. The school district board of directors may require any student participating in extracurricular interschool activities to, as a condition of participation, document evidence of insurance or purchase insurance that will provide adequate coverage, as determined by the school district board of directors, for medical expenses incurred as a result of injury sustained while participating in the extracurricular activity. In establishing such a requirement, the district shall adopt regulations for waiving or reducing the premiums of such coverage as may be offered through the school district to students participating in extracurricular activities, for those students whose families, by reason of their low income, would have difficulty paying the entire amount of such insurance premiums. The district board shall adopt regulations for waiving or reducing the insurance coverage requirements for low-income students in order to assure such students are not prohibited from participating in extracurricular interschool activities.
(4) All contracts for insurance or protection written to take advantage of the provisions of this section shall provide that the beneficiaries of such contracts may utilize on an equal participation basis the services of those practitioners licensed pursuant to chapters 18.22, 18.25, 18.53, 18.57, and 18.71 RCW.
C. CONSOLIDATED STATE HEALTH CARE PURCHASING AGENT
NEW SECTION. Sec. 227. A new section is added to Title 43 RCW to read as follows:
STATE HEALTH SERVICES AGENT. (1) The health care authority is hereby designated as the single state agent for purchasing health services.
(2) On and after July 1, 1995, at least the following state-purchased health services programs shall be merged into a single, community-rated risk pool: The basic health plan; health benefits for employees of school districts; and health benefits for state employees. Until that date, in purchasing health services, the health care authority shall maintain separate risk pools for each of the programs in this subsection. The administrator may develop mechanisms to ensure that the cost of comparable benefits packages does not vary widely across the risk pools. At the earliest opportunity the governor shall seek necessary federal waivers and state legislation to place the medical and acute care components of the medical assistance program, the limited casualty program, and the medical care services program of the department of social and health services in this single risk pool. Long-term care services that are provided under the medical assistance program shall not be placed in the single risk pool until such services have been added to the uniform benefits package. On or before January 1, 1997, the governor shall submit necessary legislation to place the purchasing of health benefits for persons incarcerated in institutions administered by the department of corrections into the single community-rated risk pool effective on and after July 1, 1997.
(3) At a minimum, and regardless of other legislative enactments, the state health services purchasing agent shall:
(a) Require that a public agency that provides subsidies for a substantial portion of services now covered under the basic health plan or a uniform benefits package as adopted by the Washington health services commission as provided in section 449 of this act, use uniform eligibility processes, insofar as may be possible, and ensure that multiple eligibility determinations are not required;
(b) Require that a health care provider or a health care facility that receives funds from a public program provide care to state residents receiving a state subsidy who may wish to receive care from them consistent with the provisions of chapter ..., Laws of 1993 (this act), and that a health maintenance organization, health care service contractor, insurer, or certified health plan that receives funds from a public program accept enrollment from state residents receiving a state subsidy who may wish to enroll with them under the provisions of chapter ..., Laws of 1993 (this act);
(c) Strive to integrate purchasing for all publicly sponsored health services in order to maximize the cost control potential and promote the most efficient methods of financing and coordinating services;
(d) Annually suggest changes in state and federal law and rules to bring all publicly funded health programs in compliance with the goals and intent of chapter . . ., Laws of 1993 (this act);
(e) Consult regularly with the governor, the legislature, and state agency directors whose operations are affected by the implementation of this section.
NEW SECTION. Sec. 228. A new section is added to chapter 41.05 RCW to read as follows:
WASHINGTON STATE GROUP PURCHASING ASSOCIATION. (1) The Washington state group purchasing association is established for the purpose of coordinating and enhancing the health care purchasing power of the groups identified in subsection (2) of this section. The purchasing association shall be administered by the administrator.
(2) The following organizations or entities may seek the approval of the administrator for membership in the purchasing association:
(a) Private nonprofit human services provider organizations under contract with state agencies, on behalf of their employees and their employees' spouses and dependent children;
(b) Individuals providing in-home long-term care services to persons whose care is financed in whole or in part through the medical assistance personal care or community options program entry system program as provided in chapter 74.09 RCW, or the chore services program, as provided in chapter 74.08 RCW, on behalf of themselves and their spouses and dependent children;
(c) Owners and operators of child day care centers and family child care homes licensed under chapter 74.15 RCW and of preschool or other child care programs exempted from licensing under chapter 74.15 RCW on behalf of themselves and their employees and employees' spouses and dependent children; and
(d) Foster parents contracting with the department of social and health services under chapter 74.13 RCW and licensed under chapter 74.15 RCW on behalf of themselves and their spouses and dependent children.
(3) In administering the purchasing association, the administrator shall:
(a) Negotiate and enter into contracts on behalf of the purchasing association's members in conjunction with its contracting and purchasing activities for employee benefits plans under RCW 41.05.075. In negotiating and contracting with insuring entities on behalf of employees and purchasing association members, two distinct pools shall be maintained.
(b) Review and approve or deny applications from entities seeking membership in the purchasing association:
(i) The administrator may require all or the substantial majority of the employees of the organizations or entities listed in subsection (2) of this section to enroll in the purchasing association.
(ii) The administrator shall require, that as a condition of membership in the purchasing association, an entity or organization listed in subsection (2) of this section that employs individuals pay at least fifty percent of the cost of the health insurance coverage for each employee enrolled in the purchasing association.
(iii) In offering and administering the purchasing association, the administrator may not discriminate against individuals or groups based on age, gender, geographic area, industry, or medical history.
(4) On and after July 1, 1995, the uniform benefits package and schedule of premiums and point of service cost-sharing adopted and from time to time revised by the health services commission pursuant to chapter . . ., Laws of 1993 (this act) shall be applicable to the association.
(5) The administrator shall adopt preexisting condition coverage provisions for the association as provided in sections 283 through 286 of this act.
(6) Premiums charged to purchasing association members shall include the authority's reasonable administrative and marketing costs. Purchasing association members may not receive any subsidy from the state for the purchase of health insurance coverage through the association.
(7)(a) The Washington state group purchasing association account is established in the custody of the state treasurer, to be used by the administrator for the deposit of premium payments from individuals and entities described in subsection (2) of this section, and for payment of premiums for benefit contracts entered into on behalf of the purchasing association's participants and operating expenses incurred by the authority in the administration of benefit contracts under this section. Moneys from the account shall be disbursed by the state treasurer by warrants on vouchers duly authorized by the administrator.
(b) Disbursements from the account are not subject to appropriations, but shall be subject to the allotment procedure provided under chapter 43.88 RCW.
NEW SECTION. Sec. 229. A new section is added to chapter 41.05 RCW to read as follows:
MARKETING PLAN. The administrator shall develop a marketing plan for the basic health plan and the Washington state group purchasing association. The plan shall be targeted to individuals and entities eligible to enroll in the two programs and provide clear and understandable explanations of the programs and enrollment procedures. The plan also shall incorporate special efforts to reach communities and people of color.
NEW SECTION. Sec. 230. WASHINGTON STATE GROUP PURCHASING ASSOCIATION--REPEAL. The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1998:
(1) RCW 41.05.___ and 1993 c ___ s 228 (section 228 of this act); and
(2) RCW 41.05.___ and 1993 c ___ s 229 (section 229 of this act).
Sec. 231. RCW 74.09.055 and 1982 c 201 s 19 are each amended to read as follows:
The department is authorized to establish copayment, deductible, or coinsurance requirements for recipients of any medical programs defined in RCW 74.09.010 ((but shall not establish copayment, deductible or coinsurance requirements for legend drugs as defined in RCW 69.41.210, unless required by federal law)).
NEW SECTION. Sec. 232. TRANSFER OF AUTHORITY TO PURCHASE SERVICES FROM COMMUNITY HEALTH CENTERS. (1) State general funds appropriated to the department of health for the purposes of funding community health centers to provide primary health and dental care services, migrant health services, and maternity health care services shall be transferred to the state health care authority. Any related administrative funds expended by the department of health for this purpose shall also be transferred to the health care authority. The health care authority shall exclusively expend these funds through contracts with community health centers to provide primary health and dental care services, migrant health services, and maternity health care services. The administrator of the health care authority shall establish requirements necessary to assure community health centers provide quality health care services that are appropriate and effective and are delivered in a cost-efficient manner. The administrator shall further assure that community health centers have appropriate referral arrangements for acute care and medical specialty services not provided by the community health centers.
(2) To further the intent of chapter . . ., Laws of 1993 (this act), the health care authority, in consultation with the department of health, shall evaluate the organization and operation of the federal and state-funded community health centers and other not-for-profit health care organizations and propose recommendations to the health services commission and the health policy committees of the legislature by November 30, 1994, that identify changes to permit community health centers and other not-for-profit health care organizations to form certified health plans or other innovative health care delivery arrangements that help ensure access to primary health care services consistent with the purposes of chapter . . ., Laws of 1993 (this act).
(3) The authority, in consultation with the department of health, shall work with community and migrant health clinics and other providers of care to underserved populations, to ensure that the number of people of color and underserved people receiving access to managed care is expanded in proportion to need, based upon demographic data.
D. HEALTH CARE PROVIDER CONFLICT OF INTEREST STANDARDS
Sec. 233. RCW 19.68.010 and 1973 1st ex.s. c 26 s 1 are each amended to read as follows:
FINANCIAL INTEREST IN HEALTH CARE FACILITIES--LIST OF ALTERNATIVE FACILITIES TO BE PROVIDED. It shall be unlawful for any person, firm, corporation or association, whether organized as a cooperative, or for profit or nonprofit, to pay, or offer to pay or allow, directly or indirectly, to any person licensed by the state of Washington to engage in the practice of medicine and surgery, drugless treatment in any form, dentistry, or pharmacy and it shall be unlawful for such person to request, receive or allow, directly or indirectly, a rebate, refund, commission, unearned discount or profit by means of a credit or other valuable consideration in connection with the referral of patients to any person, firm, corporation or association, or in connection with the furnishings of medical, surgical or dental care, diagnosis, treatment or service, on the sale, rental, furnishing or supplying of clinical laboratory supplies or services of any kind, drugs, medication, or medical supplies, or any other goods, services or supplies prescribed for medical diagnosis, care or treatment((: PROVIDED, That)). Ownership of a financial interest in any firm, corporation or association which furnishes any kind of clinical laboratory or other services prescribed for medical, surgical, or dental diagnosis shall not be prohibited under this section where (1) the referring practitioner affirmatively discloses to the patient in writing, the fact that such practitioner has a financial interest in such firm, corporation, or association; and (2) the referring practitioner provides the patient with a list of effective alternative facilities, informs the patient that he or she has the option to use one of the alternative facilities, and assures the patient that he or she will not be treated differently by the referring practitioner if the patient chooses one of the alternative facilities.
Any person violating the provisions of this section is guilty of a misdemeanor.
E. PUBLIC HEALTH FINANCING AND GOVERNANCE
Sec. 234. RCW 70.05.010 and 1967 ex.s. c 51 s 1 are each amended to read as follows:
DEFINITIONS--DEPARTMENT OF HEALTH. For the purposes of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)) and unless the context thereof clearly indicates to the contrary:
(1) "Local health departments" means the ((city, town,)) county or district which provides public health services to persons within the area;
(2) "Local health officer" means the legally qualified physician who has been appointed as the health officer for the ((city, town,)) county or district public health department;
(3) "Local board of health" means the ((city, town,)) county or district board of health.
(4) "Health district" means ((all territory encompassed within a single county and all cities and towns therein except cities with a population of over one hundred thousand, or)) all the territory consisting of one or more counties ((and all the cities and towns in all of the combined counties except cities of over one hundred thousand population which have been combined and)) organized pursuant to the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090: PROVIDED, That cities with a population of over one hundred thousand may be included in a health district as provided in RCW 70.46.040)).
(5) "Department" means the department of health.
Sec. 235. RCW 70.05.030 and 1967 ex.s. c 51 s 3 are each amended to read as follows:
LOCAL BOARD OF HEALTH--COUNTIES WITHOUT HOME RULE CHARTER--JURISDICTION. In counties without a home rule charter, the board of county commissioners ((of each and every county in this state, except where such county is a part of a health district or is purchasing services under a contract as authorized by chapter 70.05 RCW and RCW 70.46.020 through 70.46.090,)) shall constitute the local board of health ((for such county, and said local board of health's jurisdiction)), unless the county is part of a health district pursuant to chapter 70.46 RCW. The jurisdiction of the local board of health shall be coextensive with the boundaries of said county((, except that nothing herein contained shall give said board jurisdiction in cities of over one hundred thousand population or in such other cities and towns as are providing health services which meet health standards pursuant to RCW 70.46.090)).
Sec. 236. RCW 70.05.040 and 1984 c 25 s 1 are each amended to read as follows:
LOCAL BOARD OF HEALTH--VACANCIES. The local board of health shall elect a ((chairman)) chair and may appoint an administrative officer. A local health officer shall be appointed pursuant to RCW 70.05.050. Vacancies on the local board of health shall be filled by appointment within thirty days and made in the same manner as was the original appointment. At the first meeting of the local board of health, the members shall elect a ((chairman)) chair to serve for a period of one year. ((In home rule charter counties that have a local board of health established under RCW 70.05.050, the administrative officer may be appointed by the official designated under the county's charter.))
NEW SECTION. Sec. 237. A new section is added to chapter 70.05 RCW to read as follows:
HOME RULE CHARTER--LOCAL BOARD OF HEALTH. In counties with a home rule charter, the county legislative authority shall establish a local board of health and may prescribe the membership and selection process for the board. The jurisdiction of the local board of health shall be coextensive with the boundaries of the county. The local health officer, as described in RCW 70.05.050, shall be appointed by the official designated under the provisions of the county charter. The same official designated under the provisions of the county charter may appoint an administrative officer, as described in RCW 70.05.045.
Sec. 238. RCW 70.05.050 and 1984 c 25 s 5 are each amended to read as follows:
LOCAL HEALTH OFFICER. ((Each local board of health, other than boards which are established under RCW 70.05.030 and which are located in counties having home rule charters, shall appoint a local health officer. In home rule charter counties which have a local board of health established under RCW 70.05.030, the local health officer shall be appointed by the official designated under the provisions of the county's charter.))
The local health officer shall be an experienced physician licensed to practice medicine and surgery or osteopathy and surgery in this state and who is qualified or provisionally qualified in accordance with the standards prescribed in RCW 70.05.051 through 70.05.055 to hold the office of local health officer. No term of office shall be established for the local health officer but ((he)) the local health officer shall not be removed until after notice is given ((him)), and an opportunity for a hearing before the board or official responsible for his or her appointment under this section as to the reason for his or her removal. ((He)) The local health officer shall act as executive secretary to, and administrative officer for the local board of health and shall also be empowered to employ such technical and other personnel as approved by the local board of health except where the local board of health has appointed an administrative officer under RCW 70.05.040. The local health officer shall be paid such salary and allowed such expenses as shall be determined by the local board of health.
Sec. 239. RCW 70.05.070 and 1991 c 3 s 309 are each amended to read as follows:
LOCAL HEALTH OFFICER DUTIES. The local health officer, acting under the direction of the local board of health or under direction of the administrative officer appointed under RCW 70.05.040 or section 237 of this act, if any, shall:
(1) Enforce the public health statutes of the state, rules of the state board of health and the secretary of health, and all local health rules, regulations and ordinances within his or her jurisdiction including imposition of penalties authorized under RCW 70.119A.030 and filing of actions authorized by RCW 43.70.190;
(2) Take such action as is necessary to maintain health and sanitation supervision over the territory within his or her jurisdiction;
(3) Control and prevent the spread of any dangerous, contagious or infectious diseases that may occur within his or her jurisdiction;
(4) Inform the public as to the causes, nature, and prevention of disease and disability and the preservation, promotion and improvement of health within his or her jurisdiction;
(5) Prevent, control or abate nuisances which are detrimental to the public health;
(6) Attend all conferences called by the secretary of health or his or her authorized representative;
(7) Collect such fees as are established by the state board of health or the local board of health for the issuance or renewal of licenses or permits or such other fees as may be authorized by law or by the rules of the state board of health;
(8) Inspect, as necessary, expansion or modification of existing public water systems, and the construction of new public water systems, to assure that the expansion, modification, or construction conforms to system design and plans;
(9) Take such measures as he or she deems necessary in order to promote the public health, to participate in the establishment of health educational or training activities, and to authorize the attendance of employees of the local health department or individuals engaged in community health programs related to or part of the programs of the local health department.
Sec. 240. RCW 70.05.080 and 1991 c 3 s 310 are each amended to read as follows:
LOCAL HEALTH OFFICER--APPOINTMENT BY SECRETARY OF HEALTH IF LOCAL BOARD FAILS TO ACT. If the local board of health or other official responsible for appointing a local health officer under RCW 70.05.050 refuses or neglects to appoint a local health officer after a vacancy exists, the secretary of health may appoint a local health officer and fix the compensation. The local health officer so appointed shall have the same duties, powers and authority as though appointed under RCW 70.05.050. Such local health officer shall serve until a qualified individual is appointed according to the procedures set forth in RCW 70.05.050. The board or official responsible for appointing the local health officer under RCW 70.05.050 shall also be authorized to appoint an acting health officer to serve whenever the health officer is absent or incapacitated and unable to fulfill his or her responsibilities under the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)).
Sec. 241. RCW 70.05.120 and 1984 c 25 s 8 are each amended to read as follows:
REMOVAL OF LOCAL HEALTH OFFICER. Any local health officer or administrative officer appointed under RCW 70.05.040, if any, who shall refuse or neglect to obey or enforce the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)) or the rules, regulations or orders of the state board of health or who shall refuse or neglect to make prompt and accurate reports to the state board of health, may be removed as local health officer or administrative officer by the state board of health and shall not again be reappointed except with the consent of the state board of health. Any person may complain to the state board of health concerning the failure of the local health officer or administrative officer to carry out the laws or the rules and regulations concerning public health, and the state board of health shall, if a preliminary investigation so warrants, call a hearing to determine whether the local health officer or administrative officer is guilty of the alleged acts. Such hearings shall be held pursuant to the provisions of chapter 34.05 RCW, and the rules and regulations of the state board of health adopted thereunder.
Any member of a local board of health who shall violate any of the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)) or refuse or neglect to obey or enforce any of the rules, regulations or orders of the state board of health made for the prevention, suppression or control of any dangerous contagious or infectious disease or for the protection of the health of the people of this state, shall be guilty of a misdemeanor, and upon conviction shall be fined not less than ten dollars nor more than two hundred dollars. Any physician who shall refuse or neglect to report to the proper health officer or administrative officer within twelve hours after first attending any case of contagious or infectious disease or any diseases required by the state board of health to be reported or any case suspicious of being one of such diseases, shall be guilty of a misdemeanor, and upon conviction shall be fined not less than ten dollars nor more than two hundred dollars for each case that is not reported.
Any person violating any of the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)) or violating or refusing or neglecting to obey any of the rules, regulations or orders made for the prevention, suppression and control of dangerous contagious and infectious diseases by the local board of health or local health officer or administrative officer or state board of health, or who shall leave any isolation hospital or quarantined house or place without the consent of the proper health officer or who evades or breaks quarantine or conceals a case of contagious or infectious disease or assists in evading or breaking any quarantine or concealing any case of contagious or infectious disease, shall be guilty of a misdemeanor, and upon conviction thereof shall be subject to a fine of not less than twenty-five dollars nor more than one hundred dollars or to imprisonment in the county jail not to exceed ninety days or to both fine and imprisonment.
Sec. 242. RCW 70.05.130 and 1991 c 3 s 313 are each amended to read as follows:
EXPENSES OF CARRYING OUT PUBLIC HEALTH LAW. All expenses incurred by the state, health district, or county in carrying out the provisions of chapters 70.05 and 70.46 RCW ((and RCW 70.46.020 through 70.46.090)) or any other public health law, or the rules of the ((state)) department of health enacted under such laws, shall be paid by the county ((or city by which or in behalf of which such expenses shall have been incurred)) and such expenses shall constitute a claim against the general fund as provided ((herein)) in this section.
Sec. 243. RCW 70.05.150 and 1967 ex.s. c 51 s 22 are each amended to read as follows:
AUTHORITY TO CONTRACT. In addition to powers already granted them, any ((city, town,)) county, district, or local health department may contract for either the sale or purchase of any or all health services from any local health department((: PROVIDED, That)). Such contract shall require the approval of the state board of health.
Sec. 244. RCW 70.08.010 and 1985 c 124 s 1 are each amended to read as follows:
APPOINTMENT OF LOCAL HEALTH OFFICER BY COMBINED CITY AND COUNTY HEALTH DEPARTMENT. Any city with one hundred thousand or more population and the county in which it is located, are authorized, as shall be agreed upon between the respective governing bodies of such city and said county, to establish and operate a combined city and county health department, and to appoint ((the director of public health)) a local health officer for the county served. Class AA counties may appoint a director of public health as specified in this chapter.
Sec. 245. RCW 70.12.030 and 1945 c 46 s 1 are each amended to read as follows:
MONEY MANAGEMENT. Any county, ((first class city)) combined city-county health department, or health district is hereby authorized and empowered to create a "public health pooling fund", hereafter called the "fund", for the efficient management and control of all moneys coming to such county, ((first class city)) combined department, or district for public health purposes.
(("Health district" as used herein may mean all territory consisting of one or more counties and all cities with a population of one hundred thousand or less, and towns therein.))
Sec. 246. RCW 70.12.050 and 1945 c 46 s 3 are each amended to read as follows:
EXPENDITURES. All expenditures in connection with salaries, wages and operations incurred in carrying on the health department of the county, ((first class city)) combined city-county health department, or health district shall be paid out of such fund.
Sec. 247. RCW 70.46.020 and 1967 ex.s. c 51 s 6 are each amended to read as follows:
MULTICOUNTY HEALTH DISTRICTS. Health districts consisting of two or more counties may be created whenever two or more boards of county commissioners shall by resolution establish a district for such purpose. Such a district shall consist of all the area of the combined counties ((including all cities and towns except cities of over one hundred thousand population)). The district board of health of such a district shall consist of not less than five members for districts of two counties and seven members for districts of more than two counties, including two representatives from each county who are members of the board of county commissioners and who are appointed by the board of county commissioners of each county within the district, and shall have a jurisdiction coextensive with the combined boundaries. ((The remaining members shall be representatives of the cities and towns in the district selected by mutual agreement of the legislative bodies of the cities and towns concerned from their membership, taking into consideration the financial contribution of such cities and towns and representation from the several classifications of cities and towns.))
At the first meeting of a district board of health the members shall elect a ((chairman)) chair to serve for a period of one year.
Sec. 248. RCW 70.46.060 and 1967 ex.s. c 51 s 11 are each amended to read as follows:
DISTRICT BOARD OF HEALTH POWERS AND DUTIES. The district board of health shall constitute the local board of health for all the territory included in the health district, and shall supersede and exercise all the powers and perform all the duties by law vested in the county ((or city or town)) board of health of any county((, city or town)) included in the health district((, except as otherwise in chapter 70.05 RCW and RCW 70.46.020 through 70.46.090 provided)).
Sec. 249. RCW 70.46.080 and 1971 ex.s. c 85 s 10 are each amended to read as follows:
DISTRICT HEALTH FUND. Each health district shall establish a fund to be designated as the "district health fund", in which shall be placed all sums received by the district from any source, and out of which shall be expended all sums disbursed by the district. ((The county treasurer of the county in the district embracing only one county; or,)) In a district composed of more than one county the county treasurer of the county having the largest population shall be the custodian of the fund, and the county auditor of said county shall keep the record of the receipts and disbursements, and shall draw and the county treasurer shall honor and pay all warrants, which shall be approved before issuance and payment as directed by the board((: PROVIDED, That in local health departments wherein a city of over one hundred thousand population is a part of said department, the local board of health may pool the funds available for public health purposes in the office of the city treasurer in a special pooling fund to be established and which shall be expended as set forth above)).
Each county((, city or town)) which is included in the district shall contribute such sums towards the expense for maintaining and operating the district as shall be agreed upon between it and the local board of health in accordance with guidelines established by the state board of health ((after consultation with the Washington state association of counties and the association of Washington cities. In the event that no agreement can be reached between the district board of health and the county, city or town, the matter shall be resolved by a board of arbitrators to consist of a representative of the district board of health, a representative from the county, city or town involved, and a third representative to be appointed by the two representatives, but if they are unable to agree, a representative shall be appointed by a judge in the county in which the city or town is located. The determination of the proportionate share to be paid by a county, city or town shall be binding on all parties. Payments into the fund of the district may be made by the county or city or town members during the first year of membership in said district from any funds of the respective county, city or town as would otherwise be available for expenditures for health facilities and services, and thereafter the members shall include items in their respective budgets for payments to finance the health district)).
Sec. 250. RCW 70.46.085 and 1967 ex.s. c 51 s 20 are each amended to read as follows:
COUNTY TO BEAR EXPENSES. The expense of providing public health services shall be borne by each county((, city or town)) within the health district((, and the local health officer shall certify the amount agreed upon or as determined pursuant to RCW 70.46.080, and remaining unpaid by each county, city or town to the fiscal or warrant issuing officer of such county, city or town.
If the expense as certified is not paid by any county, city or town within thirty days after the end of the fiscal year, the local health officer shall certify the amount due to the auditor of the county in which the governmental unit is situated who shall promptly issue his warrant on the county treasurer payable out of the current expense fund of the county, which fund shall be reimbursed by the county auditor out of the money due said governmental unit at the next monthly settlement or settlements of the collection of taxes and shall be transferred to the current expense fund)).
Sec. 251. RCW 70.46.090 and 1967 ex.s. c 51 s 21 are each amended to read as follows:
WITHDRAWAL FROM MEMBERSHIP. Any county ((or any city or town)) may withdraw from membership in said health district any time after it has been within the district for a period of two years, but no withdrawal shall be effective except at the end of the calendar year in which the county((, city or town)) gives at least six months' notice of its intention to withdraw at the end of the calendar year. No withdrawal shall entitle any member to a refund of any moneys paid to the district nor relieve it of any obligations to pay to the district all sums for which it obligated itself due and owing by it to the district for the year at the end of which the withdrawal is to be effective((: PROVIDED, That)). Any county((, city or town)) which withdraws from membership in said health district shall immediately establish a health department or provide health services which shall meet the standards for health services promulgated by the state board of health((: PROVIDED FURTHER, That)). No local health department ((shall)) may be deemed to provide adequate public health services unless there is at least one full time professionally trained and qualified physician as set forth in RCW 70.05.050.
Sec. 252. RCW 70.46.120 and 1963 c 121 s 1 are each amended to read as follows:
FEES MAY BE CHARGED. In addition to all other powers and duties, health districts shall have the power to charge fees in connection with the issuance or renewal of a license or permit required by law: PROVIDED, That the fees charged shall not exceed the actual cost involved in issuing or renewing the license or permit((: PROVIDED FURTHER, That no fees shall be charged pursuant to this section within the corporate limits of any city or town which prior to the enactment of this section charged fees in connection with the issuance or renewal of a license or permit pursuant to city or town ordinance and where said city or town makes a direct contribution to said health district, unless such city or town expressly consents thereto)).
Sec. 253. RCW 82.44.110 and 1991 c 199 s 221 are each amended to read as follows:
DISPOSITION OF MOTOR VEHICLE EXCISE TAX REVENUE--PUBLIC HEALTH. The county auditor shall regularly, when remitting license fee receipts, pay over and account to the director of licensing for the excise taxes collected under the provisions of this chapter. The director shall forthwith transmit the excise taxes to the state treasurer.
(1) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(1) as follows:
(a) 1.60 percent into the motor vehicle fund to defray administrative and other expenses incurred by the department in the collection of the excise tax.
(b) 8.15 percent into the Puget Sound capital construction account in the motor vehicle fund.
(c) 4.07 percent into the Puget Sound ferry operations account in the motor vehicle fund.
(d) ((8.83)) 5.88 percent into the general fund to be distributed under RCW 82.44.155.
(e) 4.75 percent into the municipal sales and use tax equalization account in the general fund created in RCW 82.14.210.
(f) 1.60 percent into the county sales and use tax equalization account in the general fund created in RCW 82.14.200.
(g) 62.6440 percent into the general fund through June 30, 1993, 57.6440 percent into the general fund beginning July 1, 1993, and 66 percent into the general fund beginning January 1, 1994.
(h) 5 percent into the transportation fund created in RCW 82.44.180 beginning July 1, 1993.
(i) 5.9686 percent into the county criminal justice assistance account created in RCW 82.14.310 through December 31, 1993.
(j) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.320 through December 31, 1993.
(k) 1.1937 percent into the municipal criminal justice assistance account for distribution under RCW 82.14.330 through December 31, 1993.
(l) 2.95 percent into the general fund to be distributed by the state treasurer to county health departments to be used exclusively for public health. The state treasurer shall distribute these funds proportionately among the counties based on population as determined by the most recent United States census.
(2) The state treasurer shall deposit the excise taxes collected under RCW 82.44.020(2) into the transportation fund.
(3) The state treasurer shall deposit the excise tax imposed by RCW 82.44.020(3) into the air pollution control account created by RCW 70.94.015.
Sec. 254. RCW 82.44.155 and 1991 c 199 s 223 are each amended to read as follows:
MOTOR VEHICLE EXCISE TAX DISTRIBUTION TO CITIES AND TOWNS. When distributions are made under RCW 82.44.150, the state treasurer shall apportion and distribute the motor vehicle excise taxes deposited into the general fund under RCW 82.44.110(((4)))(1)(d) to the cities and towns ratably on the basis of population as last determined by the office of financial management. When so apportioned, the amount payable to each such city and town shall be transmitted to the city treasurer thereof, and shall be used by the city or town for the purposes of police and fire protection ((and the preservation of the public health)) in the city or town, and not otherwise. If it is adjudged that revenue derived from the excise taxes imposed by RCW 82.44.020 (1) and (2) cannot lawfully be apportioned or distributed to cities or towns, all moneys directed by this section to be apportioned and distributed to cities and towns shall be credited and transferred to the state general fund.
Sec. 255. RCW 43.20.030 and 1984 c 287 s 75 are each amended to read as follows:
COMPOSITION OF STATE BOARD OF HEALTH--CITY MEMBER ELIMINATED. The state board of health shall be composed of ten members. These shall be the secretary or the secretary's designee and nine other persons to be appointed by the governor, including four persons experienced in matters of health and sanitation, ((an elected city official who is a member of a local health board, an)) two elected county officials who ((is a)) are members of a local health board, a local health officer, and two persons representing the consumers of health care. ((Before appointing the city official, the governor shall consider any recommendations submitted by the association of Washington cities.)) Before appointing the county official, the governor shall consider any recommendations submitted by the Washington state association of counties. Before appointing the local health officer, the governor shall consider any recommendations submitted by the Washington state association of local public health officials. Before appointing one of the two consumer representatives, the governor shall consider any recommendations submitted by the state council on aging. The chairman shall be selected by the governor from among the nine appointed members. The department ((of social and health services)) shall provide necessary technical staff support to the board. The board may employ an executive director and a confidential secretary, each of whom shall be exempt from the provisions of the state civil service law, chapter 41.06 RCW.
Members of the board shall be compensated in accordance with RCW 43.03.240 and shall be reimbursed for their travel expenses in accordance with RCW 43.03.050 and 43.03.060.
NEW SECTION. Sec. 256. RECODIFICATION--CITY/COUNTY HEALTH DEPARTMENT. RCW 70.08.010, as amended by this act, shall be recodified in chapter 70.05 RCW.
NEW SECTION. Sec. 257. REPEALERS--CITIES AND TOWNS. The following acts or parts of acts are each repealed:
(1) RCW 70.05.005 and 1989 1st ex.s. c 9 s 243;
(2) RCW 70.05.020 and 1967 ex.s. c 51 s 2;
(3) RCW 70.05.132 and 1984 c 25 s 9 & 1983 1st ex.s. c 39 s 6;
(4) RCW 70.05.145 and 1983 1st ex.s. c 39 s 5;
(5) RCW 70.12.005 and 1989 1st ex.s. c 9 s 245;
(6) RCW 70.46.030 and 1991 c 363 s 141, 1969 ex.s. c 70 s 1, 1967 ex.s. c 51 s 5, & 1945 c 183 s 3;
(7) RCW 70.46.040 and 1967 ex.s. c 51 s 7 & 1945 c 183 s 4; and
(8) RCW 70.46.050 and 1967 ex.s. c 51 s 8, 1957 c 100 s 1, & 1945 c 183 s 5.
NEW SECTION. Sec. 258. STUDY LOCAL GOVERNMENT HEALTH SERVICE DELIVERY. It is hereby requested that the governing authorities of the association of Washington cities, the Washington state association of counties, and the Washington association of county officials jointly initiate a study and develop consensus recommendations regarding implementation of the provisions of sections 234 through 257 of this act. The study and recommendations should at a minimum include consideration of the fiscal impact of these sections on counties, the desirability of maintaining a process whereby city officials can effectively communicate concerns regarding the delivery of public health services to both the counties and the state, the need for larger cities to be able to continue to provide health care services when needed, and other matters as the three associations agree are of substance in the implementation of sections 234 through 257 of this act. This study shall be coordinated with the public health services improvement planning process set forth in section 466 of this act. The agreed upon recommendations shall be presented to the senate health and human services and house of representatives health care committees prior to March 1, 1994.
F. DATA COLLECTION
Sec. 259. RCW 70.170.100 and 1990 c 269 s 12 are each amended to read as follows:
STATE-WIDE DATA SYSTEM--HEALTH SERVICES COMMISSION. (1) To promote the public interest consistent with the purposes of chapter . . ., Laws of 1993 (this act), the department is responsible for the development, implementation, and custody of a state-wide ((hospital)) health care data system, with policy direction and oversight to be provided by the Washington health services commission. As part of the design stage for development of the system, the department shall undertake a needs assessment of the types of, and format for, ((hospital)) health care data needed by consumers, purchasers, health care payers, ((hospitals)) providers, and state government as consistent with the intent of chapter . . ., Laws of 1993 (this act) ((chapter)). The department shall identify a set of ((hospital)) health care data elements and report specifications which satisfy these needs. The ((council)) Washington health services commission, created by section 403 of this act, shall review the design of the data system and may ((direct the department to)) establish a technical advisory committee on health data and may, if deemed cost-effective and efficient, recommend that the department contract with a private vendor for assistance in the design of the data system or for any part of the work to be performed under this section. The data elements, specifications, and other ((design)) distinguishing features of this data system shall be made available for public review and comment and shall be published, with comments, as the department's first data plan by ((January 1, 1990)) July 1, 1994.
(2) Subsequent to the initial development of the data system as published as the department's first data plan, revisions to the data system shall be considered ((through the department's development of a biennial data plan, as proposed to,)) with the oversight and policy guidance of the Washington health services commission or its technical advisory committee and funded by((,)) the legislature through the biennial appropriations process with funds appropriated to the health services account. ((Costs of data activities outside of these data plans except for special studies shall be funded through legislative appropriations.
(3))) In designing the state-wide ((hospital)) health care data system and any data plans, the department shall identify ((hospital)) health care data elements relating to ((both hospital finances)) health care costs, the quality of health care services, the outcomes of health care services, and ((the)) use of ((services by patients)) health care by consumers. Data elements ((relating to hospital finances)) shall be reported ((by hospitals)) as the Washington health services commission directs by reporters in conformance with a uniform ((system of)) reporting ((as specified by the department and shall)) system established by the department, which shall be adopted by reporters. "Reporter" means an individual, hospital, or business entity, required to be registered with the department of revenue for payment of taxes imposed under chapter 82.04 RCW or Title 48 RCW, that is primarily engaged in furnishing or insuring for medical, surgical, and other health services to persons. In the case of hospitals this includes data elements identifying each hospital's revenues, expenses, contractual allowances, charity care, bad debt, other income, total units of inpatient and outpatient services, and other financial information reasonably necessary to fulfill the purposes of chapter . . ., Laws of 1993 (this ((chapter)) act), for hospital activities as a whole and, as feasible and appropriate, for specified classes of hospital purchasers and payers. Data elements relating to use of hospital services by patients shall, at least initially, be the same as those currently compiled by hospitals through inpatient discharge abstracts ((and reported to the Washington state hospital commission)). The commission and the department shall encourage and permit reporting by electronic transmission or hard copy as is practical and economical to reporters.
(((4))) (3) The state-wide ((hospital)) health care data system shall be uniform in its identification of reporting requirements for ((hospitals)) reporters across the state to the extent that such uniformity is ((necessary)) useful to fulfill the purposes of chapter . . ., Laws of 1993 (this ((chapter)) act). Data reporting requirements may reflect differences ((in hospital size; urban or rural location; scope, type, and method of providing service; financial structure; or other pertinent distinguishing factors)) that involve pertinent distinguishing features as determined by the Washington health services commission by rule. So far as ((possible)) is practical, the data system shall be coordinated with any requirements of the trauma care data registry as authorized in RCW 70.168.090, the federal department of health and human services in its administration of the medicare program, ((and)) the state in its role of gathering public health statistics, or any other payer program of consequence so as to minimize any unduly burdensome reporting requirements imposed on ((hospitals)) reporters.
(((5))) (4) In identifying financial reporting requirements under the state-wide ((hospital)) health care data system, the department may require both annual reports and condensed quarterly reports from reporters, so as to achieve both accuracy and timeliness in reporting, but shall craft such requirements with due regard of the data reporting burdens of reporters.
(((6) In designing the initial state-wide hospital data system as published in the department's first data plan, the department shall review all existing systems of hospital financial and utilization reporting used in this state to determine their usefulness for the purposes of this chapter, including their potential usefulness as revised or simplified.
(7) Until such time as the state-wide hospital data system and first data plan are developed and implemented and hospitals are able to comply with reporting requirements, the department shall require hospitals to continue to submit the hospital financial and patient discharge information previously required to be submitted to the Washington state hospital commission. Upon publication of the first data plan, hospitals shall have a reasonable period of time to comply with any new reporting requirements and, even in the event that new reporting requirements differ greatly from past requirements, shall comply within two years of July 1, 1989.
(8))) (5) The ((hospital)) health care data collected ((and)), maintained, and studied by the department or the Washington health services commission shall only be available for retrieval in original or processed form to public and private requestors and shall be available within a reasonable period of time after the date of request. The cost of retrieving data for state officials and agencies shall be funded through the state general appropriation. The cost of retrieving data for individuals and organizations engaged in research or private use of data or studies shall be funded by a fee schedule developed by the department which reflects the direct cost of retrieving the data or study in the requested form.
(6) All persons subject to chapter . . ., Laws of 1993 (this act) shall comply with departmental or commission requirements established by rule in the acquisition of data.
Sec. 260. RCW 70.170.110 and 1989 1st ex.s. c 9 s 511 are each amended to read as follows:
HEALTH CARE DATA--STUDIES, ANALYSES, OR REPORTS. The department shall provide, or may contract with a private entity to provide, ((hospital)) analyses and reports or any studies it chooses to conduct consistent with the purposes of chapter . . ., Laws of 1993 (this ((chapter)) act), subject to the availability of funds and any policy direction that may be given by the Washington health services commission. ((Prior to release, the department shall provide affected hospitals with an opportunity to review and comment on reports which identify individual hospital data with respect to accuracy and completeness, and otherwise shall focus on aggregate reports of hospital performance.)) These studies, analyses, or reports shall include:
(1) Consumer guides on purchasing ((hospital care services and)) or consuming health care and publications providing verifiable and useful aggregate comparative information to ((consumers on hospitals and hospital services)) the public on health care services, their cost, and the quality of health care providers who participate in certified health plans;
(2) Reports for use by classes of purchasers, who purchase from certified health plans, health care payers, and providers as specified for content and format in the state-wide data system and data plan; ((and))
(3) Reports on relevant ((hospital)) health care policy ((issues)) including the distribution of hospital charity care obligations among hospitals; absolute and relative rankings of Washington and other states, regions, and the nation with respect to expenses, net revenues, and other key indicators; ((hospital)) provider efficiencies; and the effect of medicare, medicaid, and other public health care programs on rates paid by other purchasers of ((hospital)) health care; and
(4) Any other reports the commission or department deems useful to assist the public or purchasers of certified health plans in understanding the prudent and cost-effective use of certified health plan services.
NEW SECTION. Sec. 261. A new section is added to chapter 70.170 RCW to read as follows:
CONFIDENTIALITY OF DATA. (1) Notwithstanding the provisions of chapter 42.17 RCW, any material contained within the state-wide health care data system or in the files of either the department or the Washington health services commission shall be subject to the following limitations: (a) Records obtained, reviewed by, or on file that contain information concerning medical treatment of individuals shall be exempt from public inspection and copying; and (b) any actuarial formulas, statistics, and assumptions submitted by a certified health plan to the commission or department upon request shall be exempt from public inspection and copying in order to preserve trade secrets or prevent unfair competition.
(2) All persons and any public or private agencies or entities whatsoever subject to this chapter shall comply with any requirements established by rule relating to the acquisition or use of health services data and maintain the confidentiality of any information that may, in any manner, identify individual persons.
(3) Data collected pursuant to sections 262 and 263 of this act shall be used solely for the health care reform provisions of chapter ..., Laws of 1993 (this act). The department shall ensure that the enrollee identifier used will employ the highest available standards for accuracy and uniqueness.
(4) Nothing in this section shall impede an enrollee's access to her or his health care records as provided in chapter 70.02 RCW.
NEW SECTION. Sec. 262. A new section is added to chapter 70.170 RCW to read as follows:
HEALTH SERVICES COMMISSION ACCESS TO DATA. The Washington health services commission shall have access to all health data available to the secretary of health. To the extent possible, the commission shall use existing data systems and coordinate among existing agencies. The department of health shall be the designated depository agency for all health data collected pursuant to chapter . . ., Laws of 1993 (this act). The following data sources shall be developed or made available:
(1) The commission shall coordinate with the secretary of health to utilize data collected by the state center for health statistics, including hospital charity care and related data, rural health data, epidemiological data, ethnicity data, social and economic status data, and other data relevant to the commission's responsibilities.
(2) The commission, in coordination with the department of health and the health science programs of the state universities shall develop procedures to analyze clinical and other health services outcome data, and conduct other research necessary for the specific purpose of assisting in the design of the uniform benefits package under chapter . . ., Laws of 1993 (this act).
(3) The commission shall establish cost data sources and shall require each certified health plan to provide the commission and the department of health with enrollee care and cost information, to include, but not be limited to: (a) Enrollee identifier, including date of birth, sex, and ethnicity; (b) provider identifier; (c) diagnosis; (d) health care services or procedures provided; (e) provider charges, if any; and (f) amount paid. The department shall establish by rule confidentiality standards to safeguard the information from inappropriate use or release.
(4) The commission shall coordinate with the area Indian health service, reservation Indian health service units, tribal clinics, and any urban Indian health service organizations the design, development, implementation, and maintenance of an American Indian-specific health data, statistics information system. The commission rules regarding the confidentiality to safeguard the information from inappropriate use or release shall apply.
NEW SECTION. Sec. 263. A new section is added to chapter 70.170 RCW to read as follows:
PERSONAL HEALTH SERVICES DATA AND INFORMATION SYSTEM. (1) The department is responsible for the implementation and custody of a state-wide personal health services data and information system. The data elements, specifications, and other design features of this data system shall be consistent with criteria adopted by the Washington health services commission. The department shall provide the commission with reasonable assistance in the development of these criteria, and shall provide the commission with periodic progress reports related to the implementation of the system or systems related to those criteria.
(2) The department shall coordinate the development and implementation of the personal health services data and information system with related private activities and with the implementation activities of the data sources identified by the commission. Data shall include: (a) Enrollee identifier, including date of birth, sex, and ethnicity; (b) provider identifier; (c) diagnosis; (d) health services or procedures provided; (e) provider charges, if any; and (f) amount paid. The commission shall establish by rule, confidentiality standards to safeguard the information from inappropriate use or release. The department shall assist the commission in establishing reasonable time frames for the completion of the system development and system implementation.
NEW SECTION. Sec. 264. HEALTH CARE ENTITY REPORTING REQUIREMENTS. The commission shall determine, by January 1, 1995, the necessity, if any, of reporting requirements by the following health care entities: Health care providers, health care facilities, insuring entities, and certified health plans. The reporting requirements, if any, shall be for the purposes of determining whether the health care system is operating as efficiently as possible. Information reported pursuant to this section shall be made available to interested parties upon request. The commission shall report its findings to the legislature by January 1, 1995.
G. DISCLOSURE OF HOSPITAL, NURSING HOME, AND PHARMACY CHARGES
NEW SECTION. Sec. 265. A new section is added to chapter 70.41 RCW to read as follows:
SPIRALING COSTS--HOSPITALS. (1) The legislature finds that the spiraling costs of health care continue to surmount efforts to contain them, increasing at approximately twice the inflationary rate. The causes of this phenomenon are complex. By making physicians and other health care providers with hospital admitting privileges more aware of the cost consequences of health care services for consumers, these providers may be inclined to exercise more restraint in providing only the most relevant and cost-beneficial hospital services, with a potential for reducing the utilization of those services. The requirement of the hospital to inform physicians and other health care providers of the charges of the health care services that they order may have a positive effect on containing health costs. Further, the option of the physician or other health care provider to inform the patient of these charges may strengthen the necessary dialogue in the provider-patient relationship that tends to be diminished by intervening third-party payers.
(2) The chief executive officer of a hospital licensed under this chapter and the superintendent of a state hospital shall establish and maintain a procedure for disclosing to physicians and other health care providers with admitting privileges the charges of all health care services ordered for their patients. Copies of hospital charges shall be made available to any physician and/or other health care provider ordering care in hospital inpatient/outpatient services. The physician and/or other health care provider may inform the patient of these charges and may specifically review them. Hospitals are also directed to study methods for making daily charges available to prescribing physicians through the use of interactive software and/or computerized information thereby allowing physicians and other health care providers to review not only the costs of present and past services but also future contemplated costs for additional diagnostic studies and therapeutic medications.
NEW SECTION. Sec. 266. A new section is added to chapter 18.68 RCW to read as follows:
SPIRALING COSTS--PRESCRIPTION MEDICATIONS. The legislature finds that the spiraling costs of health care continue to surmount efforts to contain them, increasing at approximately twice the inflationary rate. One of the fastest growing segments of the health care expenditure involves prescription medications. By making physicians and other health care providers with prescriptive authority more aware of the cost consequences of health care treatments for consumers, these providers may be inclined to exercise more restraint in providing only the most relevant and cost-beneficial drug and medication treatments. The requirement of the pharmacy to inform physicians and other health care providers of the charges of prescription drugs and medications that they order may have a positive effect on containing health costs. Further, the option of the physician or other health care provider to inform the patient of these charges may strengthen the necessary dialogue in the provider-patient relationship that tends to be diminished by intervening third-party payers.
NEW SECTION. Sec. 267. A new section is added to chapter 18.68 RCW to read as follows:
COST OF PRESCRIPTIVE MEDICATIONS. The registered or licensed pharmacist of this chapter shall establish and maintain a procedure for disclosing to physicians and other health care providers with prescriptive authority information detailed by prescriber, of the cost and dispensation of all prescriptive medications prescribed by him or her for his or her patients on request. These charges should be made available on at least a quarterly basis for all requested patients and should include medication, dosage, number dispensed, and the cost of the prescription. Pharmacies may provide this information in a summary form for each prescribing physician for all patients rather than as individually itemized reports. All efforts should be made to utilize the existing computerized records and software to provide this information in the least costly format.
NEW SECTION. Sec. 268. A new section is added to chapter 18.51 RCW to read as follows:
SPIRALING COSTS--NURSING HOMES. (1) The legislature finds that the spiraling costs of nursing home care continue to surmount efforts to contain them, increasing at approximately twice the inflationary rate. The causes of this phenomenon are complex. By making nursing home facilities and care providers more aware of the cost consequences of care services for consumers, these providers may be inclined to exercise more restraint in providing only the most relevant and cost-beneficial services and care, with a potential for reducing the utilization of those services. The requirement of the nursing home to inform physicians, consumers, and other care providers of the charges of the services that they order may have a positive effect on containing health costs.
(2) All nursing home administrators in facilities licensed under this chapter shall be required to develop and maintain a written procedure for disclosing patient charges to attending physicians with admitting privileges. The nursing home administrator shall have the capability to provide an itemized list of the charges for all health care services that may be ordered by a physician. The information shall be made available on request of consumers, or the physicians or other appropriate health care providers responsible for prescribing care.
H. HEALTH PROFESSIONAL SHORTAGES
NEW SECTION. Sec. 269. LEGISLATIVE INTENT. The legislature finds that the successful implementation of health care reform will depend on a sufficient supply of primary health care providers throughout the state. Many rural and medically underserved urban areas lack primary health care providers and because of this, basic health care services are limited or unavailable to populations living in these areas. The legislature has in recent years initiated new programs to address these provider shortages but funding has been insufficient and additional specific provider shortages remain.
Sec. 270. RCW 28B.125.010 and 1991 c 332 s 5 are each amended to read as follows:
STATE-WIDE HEALTH PERSONNEL RESOURCE PLAN--PERSONS OF COLOR--INDIAN HEALTH. (1) The higher education coordinating board, the state board for community ((college education)) and technical colleges, the superintendent of public instruction, the state department of health, the Washington health services commission, and the state department of social and health services, to be known for the purposes of this section as the committee, shall establish a state-wide health personnel resource plan. The governor shall appoint a lead agency from one of the agencies on the committee.
In preparing the state-wide plan the committee shall consult with the training and education institutions affected by this chapter, health care providers, employers of health care providers, insurers, consumers of health care, and other appropriate entities.
Should a successor agency or agencies be authorized or created by the legislature with planning, coordination, or administrative authority over vocational-technical schools, community colleges, or four-year higher education institutions, the governor shall grant membership on the committee to such agency or agencies and remove the member or members it replaces.
The committee shall appoint subcommittees for the purpose of assisting in the development of the institutional plans required under this chapter. Such subcommittees shall at least include those committee members that have statutory responsibility for planning, coordination, or administration of the training and education institutions for which the institutional plans are being developed. In preparing the institutional plans for four-year institutes of higher education, the subcommittee shall be composed of at least the higher education coordinating board and the state's four-year higher education institutions. The appointment of subcommittees to develop portions of the state-wide plan shall not relinquish the committee's responsibility for assuring overall coordination, integration, and consistency of the state-wide plan.
In establishing and implementing the state-wide health personnel resource plan the committee shall, to the extent possible, utilize existing data and information, personnel, equipment, and facilities and shall minimize travel and take such other steps necessary to reduce the administrative costs associated with the preparation and implementation of the plan.
(2) The state-wide health resource plan shall include at least the following:
(a)(i) Identification of the type, number, and location of the health care professional work force necessary to meet health care needs of the state.
(ii) A description and analysis of the composition and numbers of the potential work force available for meeting health care service needs of the population to be used for recruitment purposes. This should include a description of the data, methodology, and process used to make such determinations.
(b) A centralized inventory of the numbers of student applications to higher education and vocational-technical training and education programs, yearly enrollments, yearly degrees awarded, and numbers on waiting lists for all the state's publicly funded health care training and education programs. The committee shall request similar information for incorporation into the inventory from private higher education and vocational-technical training and education programs.
(c) A description of state-wide and local specialized provider training needs to meet the health care needs of target populations and a plan to meet such needs in a cost-effective and accessible manner.
(d) A description of how innovative, cost-effective technologies such as telecommunications can and will be used to provide higher education, vocational-technical, continued competency, and skill maintenance and enhancement education and training to placebound students who need flexible programs and who are unable to attend institutions for training.
(e) A strategy for assuring higher education and vocational-technical educational and training programming is sensitive to the changing work force such as reentry workers, women, minorities, and the disabled.
(f) Strategies to increase the number of persons of color in the health professions. Such strategies shall incorporate, to the extent possible, federal and state assistance programs for health career development, including those for American Indians, economically disadvantaged persons, physically challenged persons, and persons of color.
(g) A strategy and coordinated state-wide policy developed by the subcommittees authorized in subsection (1) of this section for increasing the number of graduates intending to serve in shortage areas after graduation, including such strategies as the establishment of preferential admissions and designated enrollment slots.
(((g))) (h) Guidelines and policies developed by the subcommittees authorized in subsection (1) of this section for allowing academic credit for on-the-job experience such as internships, volunteer experience, apprenticeships, and community service programs.
(((h))) (i) A strategy developed by the subcommittees authorized in subsection (1) of this section for making required internships and residency programs available that are geographically accessible and sufficiently diverse to meet both general and specialized training needs as identified in the plan when such programs are required.
(((i))) (j) A description of the need for multiskilled health care professionals and an implementation plan to restructure educational and training programming to meet these needs.
(((j))) (k) An analysis of the types and estimated numbers of health care personnel that will need to be recruited from out-of-state to meet the health professional needs not met by in-state trained personnel.
(((k))) (l) An analysis of the need for educational articulation within the various health care disciplines and a plan for addressing the need.
(((l))) (m) An analysis of the training needs of those members of the long-term care profession that are not regulated and that have no formal training requirements. Programs to meet these needs should be developed in a cost-effective and a state-wide accessible manner that provide for the basic training needs of these individuals.
(((m))) (n) A designation of the professions and geographic locations in which loan repayment and scholarships should be available based upon objective data-based forecasts of health professional shortages. A description of the criteria used to select professions and geographic locations shall be included. Designations of professions and geographic locations may be amended by the department of health when circumstances warrant as provided for in RCW 28B.115.070.
(((n))) (o) A description of needed changes in regulatory laws governing the credentialing of health professionals.
(((o))) (p) A description of linguistic and cultural training needs of foreign-trained health care professionals to assure safe and effective practice of their health care profession.
(((p))) (q) A plan to implement the recommendations of the state-wide nursing plan authorized by RCW 74.39.040.
(((q))) (r) A description of criteria and standards that institutional plans provided for in this section must address in order to meet the requirements of the state-wide health personnel resource plan, including funding requirements to implement the plans. The committee shall also when practical identify specific outcome measures to measure progress in meeting the requirements of this plan. The criteria and standards shall be established in a manner as to provide flexibility to the institutions in meeting state-wide plan requirements. The committee shall establish required submission dates for the institutional plans that permit inclusion of funding requests into the institutions budget requests to the state.
(((r))) (s) A description of how the higher education coordinating board, state board for community ((college education)) and technical colleges, superintendent of public instruction, department of health, and department of social and health services coordinated in the creation and implementation of the state plan including the areas of responsibility each agency shall assume. The plan should also include a description of the steps taken to assure participation by the groups that are to be consulted with.
(((s))) (t) A description of the estimated fiscal requirements for implementation of the state-wide health resource plan that include a description of cost saving activities that reduce potential costs by avoiding administrative duplication, coordinating programming activities, and other such actions to control costs.
(3) The committee may call upon other agencies of the state to provide available information to assist the committee in meeting the responsibilities under this chapter. This information shall be supplied as promptly as circumstances permit.
(4) State agencies involved in the development and implementation of the plan shall to the extent possible utilize existing personnel and financial resources in the development and implementation of the state-wide health personnel resource plan.
(5) The state-wide health personnel resource plan shall be submitted to the governor by July 1, 1992, and updated by July 1 of each even-numbered year. The governor, no later than December 1 of that year, shall approve, approve with modifications, or disapprove the state-wide health resource plan.
(6) The approved state-wide health resource plan shall be submitted to the senate and house of representatives committees on health care, higher education, and ways and means or appropriations by December 1 of each even-numbered year.
(7) Implementation of the state-wide plan shall begin by July 1, 1993.
(8) Notwithstanding subsections (5) and (7) of this section, the committee shall prepare and submit to the higher education coordinating board by June 1, 1992, the analysis necessary for the initial implementation of the health professional loan repayment and scholarship program created in chapter 28B.115 RCW.
(9) Each publicly funded two-year and four-year institute of higher education authorized under Title 28B RCW and vocational-technical institution authorized under Title 28A RCW that offers health training and education programs shall biennially prepare and submit an institutional plan to the committee. The institutional plan shall identify specific programming and activities of the institution that meet the requirements of the state-wide health professional resource plan.
The committee shall review and assess whether the institutional plans meet the requirements of the state-wide health personnel resource plan and shall prepare a report with its determination. The report shall become part of the institutional plan and shall be submitted to the governor and the legislature.
The institutional plan shall be included with the institution's biennial budget submission. The institution's budget shall identify proposed spending to meet the requirements of the institutional plan. Each vocational-technical institution, college, or university shall be responsible for implementing its institutional plan.
Sec. 271. RCW 28B.115.080 and 1991 c 332 s 21 are each amended to read as follows:
ANNUAL AWARD AMOUNT. After June 1, 1992, the board, in consultation with the department and the department of social and health services, shall:
(1) Establish the annual award amount for each credentialed health care profession which shall be based upon an assessment of reasonable annual eligible expenses involved in training and education for each credentialed health care profession. The annual award amount may be established at a level less than annual eligible expenses. The annual award amount shall ((not be more than fifteen thousand dollars per year)) be established by the board for each eligible health profession. The awards shall not be paid for more than a maximum of five years per individual;
(2) Determine any scholarship awards for prospective physicians in such a manner to require the recipients declare an interest in serving in rural areas of the state of Washington. Preference for scholarships shall be given to students who reside in a rural physician shortage area or a nonshortage rural area of the state prior to admission to the eligible education and training program in medicine. Highest preference shall be given to students seeking admission who are recommended by sponsoring communities and who declare the intent of serving as a physician in a rural area. The board may require the sponsoring community located in a nonshortage rural area to financially contribute to the eligible expenses of a medical student if the student will serve in the nonshortage rural area;
(3) Establish the required service obligation for each credentialed health care profession, which shall be no less than three years or no more than five years. The required service obligation may be based upon the amount of the scholarship or loan repayment award such that higher awards involve longer service obligations on behalf of the participant;
(4) Determine eligible education and training programs for purposes of the scholarship portion of the program;
(5) Honor loan repayment and scholarship contract terms negotiated between the board and participants prior to May 21, 1991, concerning loan repayment and scholarship award amounts and service obligations authorized under chapter ((18.150)) 28B.115, 28B.104, or 70.180 RCW.
NEW SECTION. Sec. 272. A new section is added to chapter 41.05 RCW to read as follows:
MULTICULTURAL HEALTH CARE TECHNICAL ASSISTANCE PROGRAM. (1) Consistent with funds appropriated specifically for this purpose, the authority shall provide matching grants to support community-based multicultural health care technical assistance programs. The purpose of the programs shall be to promote technical assistance through community and migrant health clinics and other appropriate health care providers who serve underserved populations and persons of color.
The technical assistance provided shall include, but is not limited to: (a) Collaborative research and data analysis on health care outcomes that disproportionately affect persons of color; (b) design and development of model health education and promotion strategies aimed at modifying unhealthy health behaviors or enhancing the use of the health care delivery system by persons of color; (c) provision of technical information and assistance on program planning and financial management; (d) administration, public policy development, and analysis in health care issues affecting people of color; and (e) enhancement and promotion of health care career opportunities for persons of color.
(2) Consistent with appropriated funds, the programs shall be available on a state-wide basis.
Sec. 273. RCW 70.185.030 and 1991 c 332 s 9 are each amended to read as follows:
COMMUNITY-BASED RECRUITMENT AND RETENTION--UNDERSERVED URBAN AREAS. (1) The department ((shall)) may, subject to funding, establish ((up to three)) community-based recruitment and retention project sites to provide financial and technical assistance to participating communities. The goal of the project is to help assure the availability of health care providers in rural and underserved urban areas of Washington state.
(2) Administrative costs necessary to implement this project shall be kept at a minimum to insure the maximum availability of funds for participants.
(3) The secretary may contract with third parties for services necessary to carry out activities to implement this chapter where this will promote economy, avoid duplication of effort, and make the best use of available expertise.
(4) The secretary may apply for, receive, and accept gifts and other payments, including property and service, from any governmental or other public or private entity or person, and may make arrangements as to the use of these receipts, including the undertaking of special studies and other projects related to the delivery of health care in rural areas.
(5) In designing and implementing the project the secretary shall coordinate ((the project)) and avoid duplication with similar federal programs and with the Washington rural health system project as authorized under chapter 70.175 RCW to consolidate administrative duties and reduce costs.
NEW SECTION. Sec. 274. A new section is added to chapter 70.185 RCW to read as follows:
STUDENT POSITIONS. (1) The department may develop a mechanism for underserved rural or urban communities to contract with education and training programs for student positions above the full time equivalent lids. The goal of this program is to provide additional capacity, educating students who will practice in underserved communities.
(2) Eligible education and training programs are those programs approved by the department that lead to eligibility for a credential as a credentialed health care professional. Eligible professions are those licensed under chapters 18.36A, 18.57, 18.57A, 18.71, and 18.71A RCW and advanced registered nurse practitioners and certified nurse midwives licensed under chapter 18.88 RCW, and may include other providers identified as needed in the health personnel resource plan.
(3) Students participating in the community contracted educational positions shall meet all applicable educational program requirements and provide assurances, acceptable to the community, that they will practice in the sponsoring community following completion of education and necessary licensure.
(4) Participants in the program incur an obligation to repay any contracted funds with interest set by state law, unless they serve at least three years in the sponsoring community.
(5) The department may provide funds to communities for use in contracting.
NEW SECTION. Sec. 275. A new section is added to chapter 70.185 RCW to read as follows:
AREA HEALTH EDUCATION CENTERS. The secretary may establish and contract with area health education centers in the eastern and western parts of the state. Consistent with the recruitment and retention objectives of this chapter, the centers shall provide or facilitate the provision of health professional educational and continuing education programs that strengthen the delivery of primary health care services in rural and medically underserved urban areas of the state. The center shall assist in the development and operation of health personnel recruitment and retention programs that are consistent with activities authorized under this chapter. The centers shall further provide technical expertise in the development of well managed health care delivery systems in rural Washington consistent with the goals and objectives of chapter . . ., Laws of 1993 (this act).
Sec. 276. RCW 43.70.460 and 1992 c 113 s 2 are each amended to read as follows:
RETIRED PRIMARY CARE PROVIDERS--MALPRACTICE INSURANCE. (1) The department may establish a program to purchase and maintain liability malpractice insurance for retired ((physicians)) primary care providers who provide primary health care services at community clinics. The following conditions apply to the program:
(a) Primary health care services shall be provided at community clinics that are public or private tax-exempt corporations;
(b) Primary health care services provided at the clinics shall be offered to low-income patients based on their ability to pay;
(c) Retired ((physicians)) primary care providers providing health care services shall not receive compensation for their services; and
(d) The department shall contract only with a liability insurer authorized to offer liability malpractice insurance in the state.
(2) This section and RCW 43.70.470 shall not be interpreted to require a liability insurer to provide coverage to a ((physician)) primary care provider should the insurer determine that coverage should not be offered to a physician because of past claims experience or for other appropriate reasons.
(3) The state and its employees who operate the program shall be immune from any civil or criminal action involving claims against clinics or physicians that provided health care services under this section and RCW 43.70.470. This protection of immunity shall not extend to any clinic or ((physician)) primary care provider participating in the program.
(4) The department may monitor the claims experience of retired physicians covered by liability insurers contracting with the department.
(5) The department may provide liability insurance under chapter 113, Laws of 1992 only to the extent funds are provided for this purpose by the legislature.
Sec. 277. RCW 43.70.470 and 1992 c 113 s 3 are each amended to read as follows:
RETIRED PRIMARY CARE PROVIDERS--CONDITIONS. The department may establish by rule the conditions of participation in the liability insurance program by retired ((physicians)) primary care providers at clinics utilizing retired physicians for the purposes of this section and RCW 43.70.460. These conditions shall include, but not be limited to, the following:
(1) The participating ((physician)) primary care provider associated with the clinic shall hold a valid license to practice ((medicine and surgery in this state and otherwise)) as a physician under chapter 18.71 or 18.57 RCW, a naturopath under chapter 18.36A RCW, a physician assistant under chapter 18.71A or 18.57A RCW, an advanced registered nurse practitioner under chapter 18.88 RCW, a dentist under chapter 18.32 RCW, or other health professionals as may be deemed in short supply in the health personnel resource plan under chapter 28B.125 RCW. All primary care providers must be in conformity with current requirements for licensure as a retired ((physician)) primary care provider, including continuing education requirements;
(2) The participating ((physician)) primary care provider shall limit the scope of practice in the clinic to primary care. Primary care shall be limited to noninvasive procedures and shall not include obstetrical care, or any specialized care and treatment. Noninvasive procedures include injections, suturing of minor lacerations, and incisions of boils or superficial abscesses. Primary dental care shall be limited to diagnosis, oral hygiene, restoration, and extractions and shall not include orthodontia, or other specialized care and treatment;
(3) The provision of liability insurance coverage shall not extend to acts outside the scope of rendering medical services pursuant to this section and RCW 43.70.460;
(4) The participating ((physician)) primary care provider shall limit the provision of health care services to primarily low-income persons provided that clinics may, but are not required to, provide means tests for eligibility as a condition for obtaining health care services;
(5) The participating ((physician)) primary care provider shall not accept compensation for providing health care services from patients served pursuant to this section and RCW 43.70.460, nor from clinics serving these patients. "Compensation" shall mean any remuneration of value to the participating ((physician)) primary care provider for services provided by the ((physician)) primary care provider, but shall not be construed to include any nominal copayments charged by the clinic, nor reimbursement of related expenses of a participating ((physician)) primary care provider authorized by the clinic in advance of being incurred; and
(6) The use of mediation or arbitration for resolving questions of potential liability may be used, however any mediation or arbitration agreement format shall be expressed in terms clear enough for a person with a sixth grade level of education to understand, and on a form no longer than one page in length.
NEW SECTION. Sec. 278. MEDICAL SCHOOL GRADUATES SERVING IN RURAL AND MEDICALLY UNDERSERVED AREAS OF THE STATE--LEGISLATIVE INTENT. The legislature finds that the shortage of primary care physicians practicing in rural and medically underserved areas of the state has created a severe public health and safety problem. If unaddressed, this problem is expected to worsen with health care reform since an increased demand for primary care services will only contribute further to these shortages.
The legislature further finds that the medical training program at the University of Washington is an important and well respected resource to the people of this state in the training of primary care physicians. Currently, only a small proportion of medical school graduates are Washington residents who serve as primary care practitioners in certain parts of this state.
NEW SECTION. Sec. 279. MEDICAL SCHOOL PRIMARY CARE PHYSICIAN SHORTAGE PLAN DEVELOPMENT. (1) The University of Washington shall prepare a primary care shortage plan that accomplishes the following:
(a) Identifies specific activities that the school of medicine shall pursue to increase the number of Washington residents serving as primary care physicians in rural and medically underserved areas of the state, including establishing a goal that assures that no less than fifty percent of medical school graduates who are Washington state residents at the time of matriculation will enter into primary care residencies, to the extent possible, in Washington state by the year 2000;
(b) Assures that the school of medicine shall establish among its highest training priorities the distribution of its primary care physician graduates from the school and associated postgraduate residency programs into rural and medically underserved areas;
(c) Establishes the goal of assuring that the annual number of graduates from the family practice residency network entering rural or medically underserved practice shall be increased by forty percent over a baseline period from 1988 through 1990 by 1995;
(d) Establishes a further goal to make operational at least two additional family practice residency programs within Washington state in geographic areas identified by the plan as underserved in family practice by 1997. The geographic areas identified by the plan as being underserved by family practice physicians shall be consistent with any such similar designations as may be made in the health personnel research plan as authorized under chapter 28B.125 RCW;
(e) Establishes, with the cooperation of existing community and migrant health clinics in rural or medically underserved areas of the state, three family practice residency training tracks. Furthermore, the primary care shortage plan shall provide that one of these training tracks shall be a joint American osteopathic association and American medical association approved training site coordinated with an accredited college of osteopathic medicine with extensive experience in training primary care physicians for the western United States. Such a proposed joint accredited training track will have at least fifty percent of its residency positions in osteopathic medicine; and
(f) Implements the plan, with the exception of the expansion of the family practice residency network, within current biennial appropriations for the University of Washington school of medicine.
(2) The plan shall be submitted to the appropriate committees of the legislature no later than December 1, 1993.
I. SHORT-TERM HEALTH INSURANCE REFORM
NEW SECTION. Sec. 280. INTENT--INCREASE ACCESS TO COVERAGE. The legislature intends that, during the transition to a fully reformed health services system, certain health insurance practices be modified to increase access to health insurance coverage for some individuals and groups. The legislature recognizes that health insurance reform will not remedy the significant lack of access to coverage in Washington state without the implementation of strong cost control measures. The authority granted to the commissioner in chapter . . ., Laws of 1993 (this act) is in addition to any authority the commissioner currently has under Title 48 RCW to regulate insurers, health care service contractors, and health maintenance organizations.
NEW SECTION. Sec. 281. A new section is added to chapter 48.18 RCW to read as follows:
CANCELLATIONS, DENIALS--WRITTEN COMMUNICATION. Every insurer upon canceling, denying, or refusing to renew any disability policy, shall, upon written request, directly notify in writing the applicant or insured, as the case may be, of the reasons for the action by the insurer and to any person covered under a group contract. Any benefits, terms, rates, or conditions of such a contract that are restricted, excluded, modified, increased, or reduced shall, upon written request, be set forth in writing and supplied to the insured and to any person covered under a group contract. The written communications required by this section shall be phrased in simple language that is readily understandable to a person of average intelligence, education, and reading ability.
Sec. 282. RCW 48.21.200 and 1983 c 202 s 16 and 1983 c 106 s 24 are each reenacted and amended to read as follows:
REDUCTIONS OR REFUSAL OF BENEFITS. (1) No individual or group disability insurance policy, health care service contract, or health maintenance agreement which provides benefits for hospital, medical, or surgical expenses shall be delivered or issued for delivery in this state ((after September 8, 1975)) which contains any provision whereby the insurer, contractor, or health maintenance organization may reduce or refuse to pay such benefits otherwise payable thereunder solely on account of the existence of similar benefits provided under any ((individual)) disability insurance policy, ((or under any individual)) health care service contract, or health maintenance agreement.
(2) No individual or group disability insurance policy, health care service contract, or health maintenance agreement providing hospital, medical or surgical expense benefits and which contains a provision for the reduction of benefits otherwise payable or available thereunder on the basis of other existing coverages, shall provide that such reduction will operate to reduce total benefits payable below an amount equal to one hundred percent of total allowable expenses exclusive of copayments, deductibles, and other similar cost-sharing arrangements.
(3) The commissioner shall by rule establish guidelines for the application of this section, including:
(a) The procedures by which persons ((insured)) covered under such policies, contracts, and agreements are to be made aware of the existence of such a provision;
(b) The benefits which may be subject to such a provision;
(c) The effect of such a provision on the benefits provided;
(d) Establishment of the order of benefit determination; ((and))
(e) Exceptions necessary to preserve policy, contract, or agreement requirements for use of particular health care facilities or providers; and
(f) Reasonable claim administration procedures to expedite claim payments and prevent duplication of payments or benefits under such a provision((: PROVIDED, HOWEVER, That any group disability insurance policy which is issued as part of an employee insurance benefit program authorized by RCW 41.05.025(3) may exclude all or part of any deductible amounts from the definition of total allowable expenses for purposes of coordination of benefits within the plan and between such plan and other applicable group coverages: AND PROVIDED FURTHER, That any group disability insurance policy providing coverage for persons in this state may exclude all or part of any deductible amounts required by a group disability insurance policy from the definition of total allowable expenses for purposes of coordination of benefits between such policy and a group disability insurance policy issued as part of an employee insurance benefit program authorized by RCW 41.05.025(3).
(3) The provisions of this section shall apply to health care service contractor contracts and health maintenance organization agreements)).
NEW SECTION. Sec. 283. A new section is added to chapter 48.20 RCW to read as follows:
DISABILITY INSURER--PREEXISTING CONDITIONS EXCLUSIONS AND LIMITATIONS. (1) After January 1, 1994, every disability insurer issuing coverage against loss arising from medical, surgical, hospital, or emergency care coverage shall waive any preexisting condition exclusion or limitation for persons who had similar coverage under a different policy, health care service contract, or health maintenance agreement in the three-month period immediately preceding the effective date of coverage under the new policy to the extent that such person has satisfied a waiting period under such preceding policy, contract, or agreement; however, if the person satisfied a twelve-month waiting period under such preceding policy, contract, or agreement, the insurer shall waive any preexisting condition exclusion or limitation. The insurer need not waive a preexisting condition exclusion or limitation under the new policy for coverage not provided under such preceding policy, contract, or agreement.
(2) The commissioner may adopt rules establishing guidelines for determining when coverage is similar under new and preceding policies, contracts, and agreements and for determining when a preexisting condition waiting period has been satisfied.
(3) The commissioner in consultation with insurers, health care service contractors, and health maintenance organizations shall study the effect of preexisting condition exclusions and limitations on the cost and availability of health care coverage and shall adopt rules restricting the use of such conditions and limitations by January 1, 1994. No insurer, health care service contractor, or health maintenance organization may deny, exclude, or limit coverage for preexisting conditions for a period longer than that provided for in such rules after July 1, 1994.
NEW SECTION. Sec. 284. A new section is added to chapter 48.21 RCW to read as follows:
GROUP DISABILITY INSURERS--PREEXISTING CONDITIONS EXCLUSIONS AND LIMITATIONS. (1) After January 1, 1994, every disability insurer issuing coverage against loss arising from medical, surgical, hospital, or emergency care coverage shall waive any preexisting condition exclusion or limitation for persons who had similar coverage under a different policy, health care service contract, or health maintenance agreement in the three-month period immediately preceding the effective date of coverage under the new policy to the extent that such person has satisfied a waiting period under such preceding policy, contract, or agreement; however, if the person satisfied a twelve-month waiting period under such preceding policy, contract, or agreement, the insurer shall waive any preexisting condition exclusion or limitation. The insurer need not waive a preexisting condition exclusion or limitation under the new policy for coverage not provided under such preceding policy, contract, or agreement.
(2) The commissioner may adopt rules establishing guidelines for determining when coverage is similar under new and preceding policies, contracts, and agreements and for determining when a preexisting condition waiting period has been satisfied.
(3) The commissioner in consultation with insurers, health care service contractors, and health maintenance organizations shall study the effect of preexisting condition exclusions and limitations on the cost and availability of health care coverage and shall adopt rules restricting the use of such conditions and limitations by January 1, 1994. No insurer, health care service contractor, or health maintenance organization may deny, exclude, or limit coverage for preexisting conditions for a period longer than that provided for in such rules after July 1, 1994.
NEW SECTION. Sec. 285. A new section is added to chapter 48.44 RCW to read as follows:
HEALTH CARE SERVICE CONTRACTORS--PREEXISTING CONDITIONS EXCLUSIONS AND LIMITATIONS. (1) After January 1, 1994, every health care service contractor, except limited health care service contractors as defined under RCW 48.44.035, shall waive any preexisting condition exclusion or limitation for persons who had similar coverage under a different policy, health care service contract, or health maintenance agreement in the three-month period immediately preceding the effective date of coverage under the new contract to the extent that such person has satisfied a waiting period under such preceding policy, contract, or agreement; however, if the person satisfied a twelve-month waiting period under such preceding policy, contract, or agreement, the insurer shall waive any preexisting condition exclusion or limitation. The insurer need not waive a preexisting condition exclusion or limitation under the new policy for coverage not provided under such preceding policy, contract, or agreement.
(2) The commissioner may adopt rules establishing guidelines for determining when coverage is similar under new and preceding policies, contracts, and agreements and for determining when a preexisting condition waiting period has been satisfied.
(3) The commissioner in consultation with insurers, health care service contractors, and health maintenance organizations shall study the effect of preexisting condition exclusions and limitations on the cost and availability of health care coverage and shall adopt rules restricting the use of such conditions and limitations by January 1, 1994. No insurer, health care service contractor, or health maintenance organization may deny, exclude, or limit coverage for preexisting conditions for a period longer than that provided for in such rules after July 1, 1994.
NEW SECTION. Sec. 286. A new section is added to chapter 48.46 RCW to read as follows:
HEALTH MAINTENANCE ORGANIZATIONS--PREEXISTING CONDITIONS EXCLUSIONS AND LIMITATIONS. (1) After January 1, 1994, every health maintenance organization shall waive any preexisting condition exclusion or limitation for persons who had similar coverage under a different policy, health care service contract, or health maintenance agreement in the three-month period immediately preceding the effective date of coverage under the new agreement to the extent that such person has satisfied a waiting period under such preceding policy, contract, or agreement; however, if the person satisfied a twelve-month waiting period under such preceding policy, contract, or agreement, the insurer shall waive any preexisting condition exclusion or limitation. The insurer need not waive a preexisting condition exclusion or limitation under the new policy for coverage not provided under such preceding policy, contract, or agreement.
(2) The commissioner may adopt rules establishing guidelines for determining when coverage is similar under new and preceding policies, contracts, and agreements and for determining when a preexisting condition waiting period has been satisfied.
(3) The commissioner in consultation with insurers, health care service contractors, and health maintenance organizations shall study the effect of preexisting condition exclusions and limitations on the cost and availability of health care coverage and shall adopt rules restricting the use of such conditions and limitations by January 1, 1994. No insurer, health care service contractor, or health maintenance organization may deny, exclude, or limit coverage for preexisting conditions for a period longer than that provided for in such rules after July 1, 1994.
Sec. 287. RCW 48.30.300 and 1975-'76 2nd ex.s. c 119 s 7 are each amended to read as follows:
UNFAIR PRACTICES. Notwithstanding any provision contained in Title 48 RCW to the contrary:
(1) No person or entity engaged in the business of insurance in this state shall refuse to issue any contract of insurance or cancel or decline to renew such contract because of the sex or marital status, or the presence of any sensory, mental, or physical handicap of the insured or prospective insured. The amount of benefits payable, or any term, rate, condition, or type of coverage shall not be restricted, modified, excluded, increased or reduced on the basis of the sex or marital status, or be restricted, modified, excluded or reduced on the basis of the presence of any sensory, mental, or physical handicap of the insured or prospective insured. Subject to the provisions of subsection (2) of this section these provisions shall not prohibit fair discrimination on the basis of sex, or marital status, or the presence of any sensory, mental, or physical handicap when bona fide statistical differences in risk or exposure have been substantiated.
(2) With respect to disability policies issued or renewed on and after July 1, 1994, that provide coverage against loss arising from medical, surgical, hospital, or emergency care services:
(a) Policies shall guarantee continuity of coverage. Such provision, which shall be included in every policy, shall provide that:
(i) The policy may be canceled or nonrenewed without the prior written approval of the commissioner only for nonpayment of premium or as permitted under RCW 48.18.090; and
(ii) The policy may be canceled or nonrenewed because of a change in the physical or mental condition or health of a covered person only with the prior written approval of the commissioner. Such approval shall be granted only when the insurer has discharged its obligation to continue coverage for such person by obtaining coverage with another insurer, health care service contractor, or health maintenance organization, which coverage is comparable in terms of premiums and benefits as defined by rule of the commissioner.
(b) It is an unfair practice for a disability insurer to modify the coverage provided or rates applying to an in-force disability insurance policy and to fail to make such modification in all such issued and outstanding policies.
(c) Subject to rules adopted by the commissioner, it is an unfair practice for a disability insurer to:
(i) Cease the sale of a policy form unless it has received prior written authorization from the commissioner and has offered all policyholders covered under such discontinued policy the opportunity to purchase comparable coverage without health screening; or
(ii) Engage in a practice that subjects policyholders to rate increases on discontinued policy forms unless such policyholders are offered the opportunity to purchase comparable coverage without health screening.
The insurer may limit an offer of comparable coverage without health screening to a period not less than thirty days from the date the offer is first made.
NEW SECTION. Sec. 288. A new section is added to chapter 48.44 RCW to read as follows:
HEALTH CARE SERVICE CONTRACTS--UNFAIR PRACTICES. (1) With respect to all health care service contracts issued or renewed on and after July 1, 1994, except limited health care service contracts as defined in RCW 48.44.035:
(a) Contracts shall guarantee continuity of coverage. Such provision, which shall be included in every contract, shall provide that:
(i) The contract may be canceled or nonrenewed without the prior written approval of the commissioner only for nonpayment of premiums, for violation of published policies of the contractor that have been approved by the commissioner, for persons who are entitled to become eligible for medicare benefits and fail to subscribe to a medicare supplement plan offered by the contractor, for failure of such subscriber to pay any deductible or copayment amount owed to the contractor and not the provider of health care services, for fraud, or for a material breach of the contract; and
(ii) The contract may be canceled or nonrenewed because of a change in the physical or mental condition or health of a covered person only with the prior written approval of the commissioner. Such approval shall be granted only when the contractor has discharged its obligation to continue coverage for such person by obtaining coverage with another insurer, health care service contractor, or health maintenance organization, which coverage is comparable in terms of premiums and benefits as defined by rule of the commissioner.
(b) It is an unfair practice for a contractor to modify the coverage provided or rates applying to an in-force contract and to fail to make such modification in all such issued and outstanding contracts.
(c) Subject to rules adopted by the commissioner, it is an unfair practice for a health care service contractor to:
(i) Cease the sale of a contract form unless it has received prior written authorization from the commissioner and has offered all subscribers covered under such discontinued contract the opportunity to purchase comparable coverage without health screening; or
(ii) Engage in a practice that subjects subscribers to rate increases on discontinued contract forms unless such subscribers are offered the opportunity to purchase comparable coverage without health screening.
(2) The health care service contractor may limit an offer of comparable coverage without health screening to a period not less than thirty days from the date the offer is first made.
NEW SECTION. Sec. 289. A new section is added to chapter 48.46 RCW to read as follows:
HEALTH MAINTENANCE AGREEMENTS--UNFAIR PRACTICES. (1) With respect to all health maintenance agreements issued or renewed on and after July 1, 1994, and in addition to the restrictions and limitations contained in RCW 48.46.060(4):
(a) Agreements shall guarantee continuity of coverage. Such provision, which shall be included in every agreement, shall provide that the agreement may be canceled or nonrenewed because of a change in the physical or mental condition or health of a covered person only with the prior written approval of the commissioner. Such approval shall be granted only when the organization has discharged its obligation to continue coverage for such person by obtaining coverage with another insurer, health care service contractor, or health maintenance organization, which coverage is comparable in terms of premiums and benefits as defined by rule of the commissioner.
(b) It is an unfair practice for an organization to modify the coverage provided or rates applying to an in-force agreement and to fail to make such modification in all such issued and outstanding agreements.
(c) Subject to rules adopted by the commissioner, it is an unfair practice for a health maintenance organization to:
(i) Cease the sale of an agreement form unless it has received prior written authorization from the commissioner and has offered all enrollees covered under such discontinued agreement the opportunity to purchase comparable coverage without health screening; or
(ii) Engage in a practice that subjects enrollees to rate increases on discontinued agreement forms unless such enrollees are offered the opportunity to purchase comparable coverage without health screening.
(2) The health maintenance organization may limit an offer of comparable coverage without health screening to a period not less than thirty days from the date the offer is first made.
Sec. 290. RCW 48.44.260 and 1979 c 133 s 3 are each amended to read as follows:
HEALTH CARE SERVICE CONTRACTOR--NOTICE OF CANCELLATION. Every authorized health care service contractor, upon canceling, denying, or refusing to renew any individual health care service contract, shall, upon written request, directly notify in writing the applicant or ((insured)) subscriber, as the case may be, of the reasons for the action by the health care service contractor. Any benefits, terms, rates, or conditions of such a contract which are restricted, excluded, modified, increased, or reduced ((because of the presence of a sensory, mental, or physical handicap)) shall, upon written request, be set forth in writing and supplied to the ((insured)) subscriber. The written communications required by this section shall be phrased in simple language which is readily understandable to a person of average intelligence, education, and reading ability.
Sec. 291. RCW 48.46.380 and 1983 c 106 s 16 are each amended to read as follows:
HEALTH MAINTENANCE ORGANIZATION--NOTICE OF CANCELLATIONS. Every authorized health maintenance organization, upon canceling, denying, or refusing to renew any individual health maintenance agreement, shall, upon written request, directly notify in writing the applicant or enrolled participant as appropriate, of the reasons for the action by the health maintenance organization. Any benefits, terms, rates, or conditions of such agreement which are restricted, excluded, modified, increased, or reduced ((because of the presence of a sensory, mental, or physical handicap)) shall, upon written request, be set forth in writing and supplied to the individual. The written communications required by this section shall be phrased in simple language which is readily understandable to a person of average intelligence, education, and reading ability.
NEW SECTION. Sec. 292. REPEALERS--REPORT; STUDIES. The following acts or parts of acts are each repealed:
(1) RCW 48.46.160 and 1975 1st ex.s. c 290 s 17; and
(2) RCW 48.46.905 and 1975 1st ex.s. c 290 s 25.
NEW SECTION. Sec. 293. REPEALER--NONTERMINATION FOR CHANGE IN HEALTH. RCW 48.44.410 and 1986 c 223 s 12 are each repealed, effective July 1, 1994.
NEW SECTION. Sec. 294. A new section is added to chapter 48.01 RCW to read as follows:
CERTIFIED HEALTH PLAN PROVISIONS--APPLICATION. Whenever the provisions of this title conflict with the provisions of chapter . . ., Laws of 1993 (this act), chapter . . ., Laws of 1993 (this act) shall control.
Sec. 295. RCW 48.44.095 and 1983 c 202 s 3 are each amended to read as follows:
ANNUAL STATEMENT. (1) Every health care service contractor shall annually, ((within one hundred twenty days of the closing date of its fiscal year)) before the first day of March, file with the commissioner a statement verified by at least two of the principal officers of the health care service contractor showing its financial condition as of the ((closing date of its fiscal year)) last day of the preceding calendar year. The statement shall be in such form as is furnished or prescribed by the commissioner. The commissioner may for good reason allow a reasonable extension of the time within which such annual statement shall be filed.
(2) The commissioner may suspend or revoke the certificate of registration of any health care service contractor failing to file its annual statement when due or during any extension of time therefor which the commissioner, for good cause, may grant.
Sec. 296. RCW 48.46.080 and 1983 c 202 s 10 and 1983 c 106 s 6 are each reenacted and amended to read as follows:
ANNUAL STATEMENT. (1) Every health maintenance organization shall annually, ((within one hundred twenty days of the closing date of its fiscal year)) before the first day of March, file with the commissioner a statement verified by at least two of the principal officers of the health maintenance organization showing its financial condition as of the ((closing date of its fiscal year)) last day of the preceding calendar year.
(2) Such annual report shall be in such form as the commissioner shall prescribe and shall include:
(a) A financial statement of such organization, including its balance sheet and receipts and disbursements for the preceding year, which reflects at a minimum;
(i) all prepayments and other payments received for health care services rendered pursuant to health maintenance agreements;
(ii) expenditures to all categories of health care facilities, providers, insurance companies, or hospital or medical service plan corporations with which such organization has contracted to fulfill obligations to enrolled participants arising out of its health maintenance agreements, together with all other direct expenses including depreciation, enrollment, and commission; and
(iii) expenditures for capital improvements, or additions thereto, including but not limited to construction, renovation, or purchase of facilities and capital equipment;
(b) The number of participants enrolled and terminated during the report period. Every employer offering health care benefits to their employees through a group contract with a health maintenance organization shall furnish said health maintenance organization with a list of their employees enrolled under such plan;
(c) The number of doctors by type of practice who, under contract with or as an employee of the health maintenance organization, furnished health care services to consumers during the past year;
(d) A report of the names and addresses of all officers, directors, or trustees of the health maintenance organization during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals for services to such organization. For partnership and professional service corporations, a report shall be made for partners or shareholders as to any compensation or expense reimbursement received by them for services, other than for services and expenses relating directly for patient care;
(e) Such other information relating to the performance of the health maintenance organization or the health care facilities or providers with which it has contracted as reasonably necessary to the proper and effective administration of this chapter, in accordance with rules and regulations; and
(f) Disclosure of any financial interests held by officers and directors in any providers associated with the health maintenance organization or any provider of the health maintenance organization.
(3) The commissioner may for good reason allow a reasonable extension of the time within which such annual statement shall be filed.
(4) The commissioner may suspend or revoke the certificate of registration of any health maintenance organization failing to file its annual statement when due or during any extension of time therefor which the commissioner, for good cause, may grant.
(5) No person shall knowingly file with any public official or knowingly make, publish, or disseminate any financial statement of a health maintenance organization which does not accurately state the health maintenance organization's financial condition.
PART III. TAXES
NEW SECTION. Sec. 301. A new section is added to chapter 48.14 RCW to read as follows:
TAX ON PREMIUMS AND PREPAYMENTS. (1) As used in this section, "taxpayer" means a health maintenance organization, as defined in RCW 48.46.020, a health care service contractor, as defined in RCW 48.44.010, or a certified health plan certified under section 434 of this act.
(2) Each taxpayer shall pay a tax on or before the first day of March of each year to the state treasurer through the insurance commissioner's office. The tax shall be equal to the total amount of all premiums and prepayments for health care services received by the taxpayer during the preceding calendar year multiplied by the rate of two percent.
(3) Taxpayers shall prepay their tax obligations under this section. The minimum amount of the prepayments shall be percentages of the taxpayer's tax obligation for the preceding calendar year recomputed using the rate in effect for the current year. For the prepayment of taxes due during the first calendar year, the minimum amount of the prepayments shall be percentages of the taxpayer's tax obligation that would have been due had the tax been in effect during the previous calendar year. The tax prepayments shall be paid to the state treasurer through the commissioner's office by the due dates and in the following amounts:
(a) On or before June 15, forty-five percent;
(b) On or before September 15, twenty-five percent;
(c) On or before December 15, twenty-five percent.
(4) For good cause demonstrated in writing, the commissioner may approve an amount smaller than the preceding calendar year's tax obligation as recomputed for calculating the health maintenance organization's prepayment obligations for the current tax year.
(5) Moneys collected under this section shall be deposited in the health services account under section 469 of this act.
(6) The taxes imposed in this section do not apply to:
(a) Amounts received by any taxpayer from the United States or any instrumentality thereof as prepayments for health care services provided under Title XVIII (medicare) of the federal social security act. This exemption shall expire July 1, 1997.
(b) Amounts received by any health care service contractor, as defined in RCW 48.44.010, as prepayments for health care services included within the definition of practice of dentistry under RCW 18.32.020. This exemption does not apply to amounts received under a certified health plan certified under section 434 of this act.
Sec. 302. RCW 48.14.080 and 1949 c 190 s 21 are each amended to read as follows:
PREMIUM TAX IN LIEU OF OTHER FORMS. As to insurers other than title insurers, the taxes imposed by this title shall be in lieu of all other taxes, except taxes on real and tangible personal property ((and)), excise taxes on the sale, purchase or use of such property, and the tax imposed in RCW 82.04.260(15).
NEW SECTION. Sec. 303. A new section is added to chapter 82.04 RCW to read as follows:
EXEMPTION FROM BUSINESS AND OCCUPATION TAX. This chapter does not apply to any health maintenance organization, health care service contractor, or certified health plan in respect to premiums or prepayments that are taxable under section 301 of this act.
Sec. 304. RCW 82.04.260 and 1991 c 272 s 15 are each amended to read as follows:
TAX ON HOSPITALS OPERATED AS NONPROFIT CORPORATIONS. (1) Upon every person engaging within this state in the business of buying wheat, oats, dry peas, dry beans, lentils, triticale, corn, rye and barley, but not including any manufactured or processed products thereof, and selling the same at wholesale; the tax imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of one one-hundredth of one percent.
(2) Upon every person engaging within this state in the business of manufacturing wheat into flour, barley into pearl barley, soybeans into soybean oil, or sunflower seeds into sunflower oil; as to such persons the amount of tax with respect to such business shall be equal to the value of the flour, pearl barley, or oil manufactured, multiplied by the rate of one-eighth of one percent.
(3) Upon every person engaging within this state in the business of splitting or processing dried peas; as to such persons the amount of tax with respect to such business shall be equal to the value of the peas split or processed, multiplied by the rate of one-quarter of one percent.
(4) Upon every person engaging within this state in the business of manufacturing seafood products which remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured, multiplied by the rate of one-eighth of one percent.
(5) Upon every person engaging within this state in the business of manufacturing by canning, preserving, freezing or dehydrating fresh fruits and vegetables; as to such persons the amount of tax with respect to such business shall be equal to the value of the products canned, preserved, frozen or dehydrated multiplied by the rate of three-tenths of one percent.
(6) Upon every nonprofit corporation and nonprofit association engaging within this state in research and development, as to such corporations and associations, the amount of tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of forty-four one-hundredths of one percent.
(7) Upon every person engaging within this state in the business of slaughtering, breaking and/or processing perishable meat products and/or selling the same at wholesale only and not at retail; as to such persons the tax imposed shall be equal to the gross proceeds derived from such sales multiplied by the rate of twenty-five one-hundredths of one percent through June 30, 1986, and one-eighth of one percent thereafter.
(8) Upon every person engaging within this state in the business of making sales, at retail or wholesale, of nuclear fuel assemblies manufactured by that person, as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds of sales of the assemblies multiplied by the rate of twenty-five one-hundredths of one percent.
(9) Upon every person engaging within this state in the business of manufacturing nuclear fuel assemblies, as to such persons the amount of tax with respect to such business shall be equal to the value of the products manufactured multiplied by the rate of twenty-five one-hundredths of one percent.
(10) Upon every person engaging within this state in the business of acting as a travel agent; as to such persons the amount of the tax with respect to such activities shall be equal to the gross income derived from such activities multiplied by the rate of twenty-five one-hundredths of one percent.
(11) Upon every person engaging within this state in business as an international steamship agent, international customs house broker, international freight forwarder, vessel and/or cargo charter broker in foreign commerce, and/or international air cargo agent; as to such persons the amount of the tax with respect to only international activities shall be equal to the gross income derived from such activities multiplied by the rate of thirty-three one-hundredths of one percent.
(12) Upon every person engaging within this state in the business of stevedoring and associated activities pertinent to the movement of goods and commodities in waterborne interstate or foreign commerce; as to such persons the amount of tax with respect to such business shall be equal to the gross proceeds derived from such activities multiplied by the rate of thirty-three one hundredths of one percent. Persons subject to taxation under this subsection shall be exempt from payment of taxes imposed by chapter 82.16 RCW for that portion of their business subject to taxation under this subsection. Stevedoring and associated activities pertinent to the conduct of goods and commodities in waterborne interstate or foreign commerce are defined as all activities of a labor, service or transportation nature whereby cargo may be loaded or unloaded to or from vessels or barges, passing over, onto or under a wharf, pier, or similar structure; cargo may be moved to a warehouse or similar holding or storage yard or area to await further movement in import or export or may move to a consolidation freight station and be stuffed, unstuffed, containerized, separated or otherwise segregated or aggregated for delivery or loaded on any mode of transportation for delivery to its consignee. Specific activities included in this definition are: Wharfage, handling, loading, unloading, moving of cargo to a convenient place of delivery to the consignee or a convenient place for further movement to export mode; documentation services in connection with the receipt, delivery, checking, care, custody and control of cargo required in the transfer of cargo; imported automobile handling prior to delivery to consignee; terminal stevedoring and incidental vessel services, including but not limited to plugging and unplugging refrigerator service to containers, trailers, and other refrigerated cargo receptacles, and securing ship hatch covers.
(13) Upon every person engaging within this state in the business of disposing of low-level waste, as defined in RCW 43.145.010; as to such persons the amount of the tax with respect to such business shall be equal to the gross income of the business, excluding any fees imposed under chapter 43.200 RCW, multiplied by the rate of fifteen percent.
(a) The rate specified in this subsection shall be reduced to ten percent on May 20, 1991.
(b) The rate specified in this subsection shall be further reduced to five percent on January 1, 1992.
(c) The rate specified in this subsection shall be further reduced to three percent on July 1, 1993.
If the gross income of the taxpayer is attributable to activities both within and without this state, the gross income attributable to this state shall be determined in accordance with the methods of apportionment required under RCW 82.04.460.
(14) Upon every person engaging within this state as an insurance agent, insurance broker, or insurance solicitor licensed under chapter 48.17 RCW; as to such persons, the amount of the tax with respect to such licensed activities shall be equal to the gross income of such business multiplied by the rate of one percent.
(15) Upon every person engaging within this state in business as a hospital, as defined in chapter 70.41 RCW, that is operated as a nonprofit corporation, as to such persons, the amount of tax with respect to such activities shall be equal to the gross income of the business multiplied by the rate of seventy-five one-hundredths of one percent through June 30, 1995, and one and five-tenths percent thereafter. The moneys collected under this subsection shall be deposited in the health services account created under section 469 of this act.
Sec. 305. RCW 82.04.4289 and 1981 c 178 s 2 are each amended to read as follows:
HOSPITAL EXEMPTION DELETED. ((In computing tax there may be deducted from the measure of tax)) This chapter does not apply to amounts derived as compensation for services rendered to patients or from sales of prescription drugs as defined in RCW 82.08.0281 furnished as an integral part of services rendered to patients by ((a hospital, as defined in chapter 70.41 RCW, which is operated as a nonprofit corporation,)) a kidney dialysis facility operated as a nonprofit corporation, ((whether or not operated in connection with a hospital,)) nursing homes, and homes for unwed mothers operated as religious or charitable organizations, but only if no part of the net earnings received by such an institution inures directly or indirectly, to any person other than the institution entitled to deduction hereunder. ((In no event shall any such deduction be allowed, unless the hospital building is entitled to exemption from taxation under the property tax laws of this state.))
NEW SECTION. Sec. 306. REPEALER--BUSINESS AND OCCUPATION TAX DEDUCTION FOR PUBLICLY OPERATED HOSPITALS. RCW 82.04.4288 and 1980 c 37 s 9 are each repealed.
Sec. 307. RCW 82.24.020 and 1989 c 271 s 504 are each amended to read as follows:
TAX ON CIGARETTES. (1) There is levied and there shall be collected as ((hereinafter)) provided in this chapter, a tax upon the sale, use, consumption, handling, possession or distribution of all cigarettes, in an amount equal to the rate of eleven and one-half mills per cigarette.
(2) Until July 1, 1995, an additional tax is imposed upon the sale, use, consumption, handling, possession, or distribution of all cigarettes, in an amount equal to the rate of one and one-half mills per cigarette. All revenues collected during any month from this additional tax shall be deposited in the drug enforcement and education account under RCW 69.50.520 by the twenty-fifth day of the following month.
(3) An additional tax is imposed upon the sale, use, consumption, handling, possession, or distribution of all cigarettes, in an amount equal to the rate of ten mills per cigarette through June 30, 1994, eleven and one-fourth mills per cigarette for the period July 1, 1994, through June 30, 1995, twenty mills per cigarette for the period July 1, 1995, through June 30, 1996, and twenty and one-half mills per cigarette thereafter. All revenues collected during any month from this additional tax shall be deposited in the health services account created under section 469 of this act by the twenty-fifth day of the following month.
(4) Wholesalers and retailers subject to the payment of this tax may, if they wish, absorb one-half mill per cigarette of the tax and not pass it on to purchasers without being in violation of this section or any other act relating to the sale or taxation of cigarettes.
(((4))) (5) For purposes of this chapter, "possession" shall mean both (a) physical possession by the purchaser and, (b) when cigarettes are being transported to or held for the purchaser or his or her designee by a person other than the purchaser, constructive possession by the purchaser or his designee, which constructive possession shall be deemed to occur at the location of the cigarettes being so transported or held.
Sec. 308. RCW 82.24.080 and 1972 ex.s. c 157 s 4 are each amended to read as follows:
TAX LIABILITY--CIGARETTE TAX. It is the intent and purpose of this chapter to levy a tax on all of the articles taxed ((herein)) under this chapter, sold, used, consumed, handled, possessed, or distributed within this state and to collect the tax from the person who first sells, uses, consumes, handles, possesses (either physically or constructively, in accordance with RCW 82.24.020) or distributes them in the state. It is further the intent and purpose of this chapter that whenever any of the articles ((herein)) taxed under this chapter is given away for advertising or any other purpose, it shall be taxed in the same manner as if it were sold, used, consumed, handled, possessed, or distributed in this state.
It is also the intent and purpose of this chapter that the tax shall be imposed at the time and place of the first taxable event occurring within this state((: PROVIDED, HOWEVER, That)). Failure to pay the tax with respect to a taxable event shall not prevent tax liability from arising by reason of a subsequent taxable event.
In the event of an increase in the rate of the tax imposed under this chapter, it is the intent of the legislature that the first person who sells, uses, consumes, handles, possesses, or distributes previously taxed articles after the effective date of the rate increase shall be liable for the additional tax represented by the rate increase, but the failure to pay the additional tax with respect to the first taxable event after the effective date of a rate increase shall not prevent tax liability for the additional tax from arising from a subsequent taxable event.
Sec. 309. RCW 82.26.020 and 1983 2nd ex.s. c 3 s 16 are each amended to read as follows:
TAX ON TOBACCO PRODUCTS. (1) ((From and after June 1, 1971,)) There is levied and there shall be collected a tax upon the sale, use, consumption, handling, or distribution of all tobacco products in this state at the rate of forty-five percent of the wholesale sales price of such tobacco products. ((Such tax))
(2) Taxes under this section shall be imposed at the time the distributor (a) brings, or causes to be brought, into this state from without the state tobacco products for sale, (b) makes, manufactures, or fabricates tobacco products in this state for sale in this state, or (c) ships or transports tobacco products to retailers in this state, to be sold by those retailers.
(((2))) (3) An additional tax is imposed equal to ((the rate specified in RCW 82.02.030)) seven percent multiplied by the tax payable under subsection (1) of this section.
(4) An additional tax is imposed equal to ten percent of the wholesale sales price of tobacco products. The moneys collected under this subsection shall be deposited in the health services account created under section 469 of this act.
Sec. 310. RCW 82.08.150 and 1989 c 271 s 503 are each amended to read as follows:
TAX ON SPIRITS. (1) There is levied and shall be collected a tax upon each retail sale of spirits, or strong beer in the original package at the rate of fifteen percent of the selling price. The tax imposed in this subsection shall apply to all such sales including sales by the Washington state liquor stores and agencies, but excluding sales to class H licensees.
(2) There is levied and shall be collected a tax upon each sale of spirits, or strong beer in the original package at the rate of ten percent of the selling price on sales by Washington state liquor stores and agencies to class H licensees.
(3) There is levied and shall be collected an additional tax upon each retail sale of spirits in the original package at the rate of one dollar and seventy-two cents per liter. The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.
(4) An additional tax is imposed equal to ((the rate specified in RCW 82.02.030)) fourteen percent multiplied by the taxes payable under subsections (1), (2), and (3) of this section.
(5) Until July 1, 1995, an additional tax is imposed upon each retail sale of spirits in the original package at the rate of seven cents per liter. The additional tax imposed in this subsection shall apply to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees. All revenues collected during any month from this additional tax shall be deposited in the drug enforcement and education account under RCW 69.50.520 by the twenty-fifth day of the following month.
(6)(a) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and seven-tenths percent of the selling price through June 30, 1995, two and six-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and three and four-tenths of the selling price thereafter. This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, but excluding sales to class H licensees.
(b) An additional tax is imposed upon retail sale of spirits in the original package at the rate of one and one-tenth percent of the selling price through June 30, 1995, one and seven-tenths percent of the selling price for the period July 1, 1995, through June 30, 1997, and two and three-tenths of the selling price thereafter. This additional tax applies to all such sales to class H licensees.
(c) An additional tax is imposed upon each retail sale of spirits in the original package at the rate of twenty cents per liter through June 30, 1995, thirty cents per liter for the period July 1, 1995, through June 30, 1997, and forty-one cents per liter thereafter. This additional tax applies to all such sales including sales by Washington state liquor stores and agencies, and including sales to class H licensees.
(d) All revenues collected during any month from additional taxes under this subsection shall be deposited in the health services account created under section 469 of this act by the twenty-fifth day of the following month.
(7) The tax imposed in RCW 82.08.020((, as now or hereafter amended,)) shall not apply to sales of spirits or strong beer in the original package.
(((7))) (8) The taxes imposed in this section shall be paid by the buyer to the seller, and each seller shall collect from the buyer the full amount of the tax payable in respect to each taxable sale under this section. The taxes required by this section to be collected by the seller shall be stated separately from the selling price and for purposes of determining the tax due from the buyer to the seller, it shall be conclusively presumed that the selling price quoted in any price list does not include the taxes imposed by this section.
(((8))) (9) As used in this section, the terms, "spirits," "strong beer," and "package" shall have the meaning ascribed to them in chapter 66.04 RCW.
Sec. 311. RCW 66.24.290 and 1989 c 271 s 502 are each amended to read as follows:
TAX ON BEER--REDUCED RATE FOR CERTAIN BREWERIES. (1) Any brewer or beer wholesaler licensed under this title may sell and deliver beer to holders of authorized licenses direct, but to no other person, other than the board; and every such brewer or beer wholesaler shall report all sales to the board monthly, pursuant to the regulations, and shall pay to the board as an added tax for the privilege of manufacturing and selling the beer within the state a tax of two dollars and sixty cents per barrel of thirty-one gallons on sales to licensees within the state and on sales to licensees within the state of bottled and canned beer shall pay a tax computed in gallons at the rate of two dollars and sixty cents per barrel of thirty-one gallons. Any brewer or beer wholesaler whose applicable tax payment is not postmarked by the twentieth day following the month of sale will be assessed a penalty at the rate of two percent per month or fraction thereof. Each such brewer or wholesaler shall procure from the board revenue stamps representing such tax in form prescribed by the board and shall affix the same to the barrel or package in such manner and in such denominations as required by the board, and shall cancel the same prior to commencing delivery from his or her place of business or warehouse of such barrels or packages. Beer shall be sold by brewers and wholesalers in sealed barrels or packages. The revenue stamps ((herein)) provided ((for)) under this section need not be affixed and canceled in the making of resales of barrels or packages already taxed by the affixation and cancellation of stamps as provided in this section.
(2) An additional tax is imposed equal to ((the rate specified in RCW 82.02.030)) seven percent multiplied by the tax payable under subsection (1) of this section. All revenues collected during any month from this additional tax shall be transferred to the state general fund by the twenty-fifth day of the following month.
(3) Until July 1, 1995, an additional tax is imposed on all beer subject to tax under subsection (1) of this section. The additional tax is equal to two dollars per barrel of thirty-one gallons. All revenues collected during any month from this additional tax shall be deposited in the drug enforcement and education account under RCW 69.50.520 by the twenty-fifth day of the following month.
(4)(a) An additional tax is imposed on all beer subject to tax under subsection (1) of this section. The additional tax is equal to ninety-six cents per barrel of thirty-one gallons through June 30, 1995, two dollars and thirty-nine cents per barrel of thirty-one gallons for the period July 1, 1995, through June 30, 1997, and four dollars and seventy-eight cents per barrel of thirty-one gallons thereafter.
(b) The additional tax imposed under this subsection does not apply to the sale of the first sixty thousand barrels of beer each year by breweries that are entitled to a reduced rate of tax under 26 U.S.C. Sec. 5051, as existing on the effective date of this section or such subsequent date as may be provided by the board by rule consistent with the purposes of this exemption.
(c) All revenues collected from the additional tax imposed under this subsection (4) shall be deposited in the health services account under section 469 of this act.
(5) The tax imposed under this section shall not apply to "strong beer" as defined in this title.
Sec. 312. RCW 82.02.030 and 1990 c 42 s 319 are each amended to read as follows:
ADDITIONAL TAX RATES. (((1))) The rate of the additional taxes under RCW 54.28.020(2), 54.28.025(2), 66.24.210(2), ((66.24.290(2),)) 82.04.2901, 82.16.020(2), ((82.26.020(2),)) 82.27.020(5), and 82.29A.030(2) shall be seven percent((; and
(2) The rate of the additional taxes under RCW 82.08.150(4) shall be fourteen percent)).
PART IV. HEALTH SYSTEM REFORM
NEW SECTION. Sec. 401. INTENT. The legislature intends that chapter . . ., Laws of 1993 (this act) establish structures, processes, and specific financial limits to stabilize the overall cost of health services within the economy, reduce the demand for unneeded health services, provide access to essential health services, improve public health, and ensure that health system costs do not undermine the financial viability of nonhealth care businesses.
NEW SECTION. Sec. 402. DEFINITIONS. In this chapter, unless the context otherwise requires:
(1) "Certified health plan" or "plan" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, a health care service contractor as defined in RCW 48.44.010, a health maintenance organization as defined in RCW 48.46.020, or an entity certified in accordance with sections 433 through 448 of this act.
(2) "Chair" means the presiding officer of the Washington health services commission.
(3) "Commission" or "health services commission" means the Washington health services commission.
(4) "Community rate" means the rating method used to establish the premium for the uniform benefits package adjusted to reflect actuarially demonstrated differences in utilization or cost attributable to geographic region and family size as determined by the commission.
(5) "Continuous quality improvement and total quality management" means a continuous process to improve health services while reducing costs.
(6) "Employee" means a resident who is in the employment of an employer, as defined by chapter 50.04 RCW.
(7) "Enrollee" means any person who is a Washington resident enrolled in a certified health plan.
(8) "Enrollee point of service cost-sharing" means amounts paid to certified health plans directly providing services, health care providers, or health care facilities by enrollees for receipt of specific uniform benefits package services, and may include copayments, coinsurance, or deductibles, that together must be actuarially equivalent across plans and within overall limits established by the commission.
(9) "Enrollee premium sharing" means that portion of the premium that is paid by enrollees or their family members.
(10) "Federal poverty level" means the federal poverty guidelines determined annually by the United States department of health and human services or successor agency.
(11) "Health care facility" or "facility" means hospices licensed under chapter 70.127 RCW, hospitals licensed under chapter 70.41 RCW, rural health facilities as defined in RCW 70.175.020, psychiatric hospitals licensed under chapter 71.12 RCW, nursing homes licensed under chapter 18.51 RCW, community mental health centers licensed under chapter 71.05 or 71.24 RCW, kidney disease treatment centers licensed under chapter 70.41 RCW, ambulatory diagnostic, treatment or surgical facilities licensed under chapter 70.41 RCW, drug and alcohol treatment facilities licensed under chapter 70.96A RCW, and home health agencies licensed under chapter 70.127 RCW, and includes such facilities if owned and operated by a political subdivision or instrumentality of the state and such other facilities as required by federal law and implementing regulations, but does not include Christian Science sanatoriums operated, listed, or certified by the First Church of Christ Scientist, Boston, Massachusetts.
(12) "Health care provider" or "provider" means:
(a) A person regulated under Title 18 RCW and chapter 70.127 RCW, to practice health or health-related services or otherwise practicing health care services in this state consistent with state law; or
(b) An employee or agent of a person described in (a) of this subsection, acting in the course and scope of his or her employment.
(13) "Health insurance purchasing cooperative" or "cooperative" means a member-owned and governed nonprofit organization certified in accordance with sections 425 and 426 of this act.
(14) "Long-term care" means institutional, residential, outpatient, or community-based services that meet the individual needs of persons of all ages who are limited in their functional capacities or have disabilities and require assistance with performing two or more activities of daily living for an extended or indefinite period of time. These services include case management, protective supervision, in-home care, nursing services, convalescent, custodial, chronic, and terminally ill care.
(15) "Major capital expenditure" means any project or expenditure for capital construction, renovations, or acquisition, including medical technological equipment, as defined by the commission, costing more than one million dollars.
(16) "Managed care" means an integrated system of insurance, financing, and health services delivery functions that: (a) Assumes financial risk for delivery of health services and uses a defined network of providers; or (b) assumes financial risk for delivery of health services and promotes the efficient delivery of health services through provider assumption of some financial risk including capitation, prospective payment, resource-based relative value scales, fee schedules, or similar method of limiting payments to health care providers.
(17) "Maximum enrollee financial participation" means the income-related total annual payments that may be required of an enrollee per family who chooses one of the three lowest priced uniform benefits packages offered by plans in a geographic region including both premium sharing and enrollee point of service cost-sharing.
(18) "Persons of color" means Asians/Pacific Islanders, African, Hispanic, and Native Americans.
(19) "Premium" means all sums charged, received, or deposited by a certified health plan as consideration for a uniform benefits package or the continuance of a uniform benefits package. Any assessment, or any "membership," "policy," "contract," "service," or similar fee or charge made by the certified health plan in consideration for the uniform benefits package is deemed part of the premium. "Premium" shall not include amounts paid as enrollee point of service cost-sharing.
(20) "Qualified employee" means an employee who is employed at least thirty hours during a week or one hundred twenty hours during a calendar month.
(21) "Registered employer health plan" means a certified health plan established by a private employer of more than seven thousand active employees in this state solely for the benefit of such employees and their dependents and that meets the requirements of section 430 of this act. Nothing contained in this subsection shall be deemed to preclude the plan from providing benefits to retirees of the employer.
(22) "Supplemental benefits" means those appropriate and effective health services that are not included in the uniform benefits package or that expand the type or level of health services available under the uniform benefits package and that are offered to all residents in accordance with the provisions of sections 452 and 453 of this act.
(23) "Technology" means the drugs, devices, equipment, and medical or surgical procedures used in the delivery of health services, and the organizational or supportive systems within which such services are provided. It also means sophisticated and complicated machinery developed as a result of ongoing research in the basic biological and physical sciences, clinical medicine, electronics, and computer sciences, as well as specialized professionals, medical equipment, procedures, and chemical formulations used for both diagnostic and therapeutic purposes.
(24) "Uniform benefits package" or "package" means those appropriate and effective health services, defined by the commission under section 449 of this act, that must be offered to all Washington residents through certified health plans.
(25) "Washington resident" or "resident" means a person who intends to reside in the state permanently or indefinitely and who did not move to Washington for the primary purpose of securing health services under sections 427 through 466 of this act. "Washington resident" also includes people and their accompanying family members who are residing in the state for the purpose of engaging in employment for at least one month, who did not enter the state for the primary purpose of obtaining health services. The confinement of a person in a nursing home, hospital, or other medical institution in the state shall not by itself be sufficient to qualify such person as a resident.
A. THE WASHINGTON HEALTH SERVICES COMMISSION
NEW SECTION. Sec. 403. CREATION OF COMMISSION--MEMBERSHIP--TERMS OF OFFICE--VACANCIES--SALARIES. (1) There is created an agency of state government to be known as the Washington health services commission. The commission shall consist of five members reflecting ethnic and racial diversity, appointed by the governor, with the consent of the senate. One member shall be designated by the governor as chair and shall serve at the pleasure of the governor. The insurance commissioner shall serve as an additional nonvoting member. Of the initial members, one shall be appointed to a term of three years, two shall be appointed to a term of four years, and two shall be appointed to a term of five years. Thereafter, members shall be appointed to five-year terms. Vacancies shall be filled by appointment for the remainder of the unexpired term of the position being vacated.
(2) Members of the commission shall have no pecuniary interest in any business subject to regulation by the commission and shall be subject to chapter 42.18 RCW, the executive branch conflict of interest act.
(3) Members of the commission shall occupy their positions on a full-time basis and are exempt from the provisions of chapter 41.06 RCW. Commission members and the professional commission staff are subject to the public disclosure provisions of chapter 42.17 RCW. Members shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040. A majority of the members of the commission constitutes a quorum for the conduct of business.
NEW SECTION. Sec. 404. ADVISORY COMMITTEES. (1)(a) The chair shall appoint an advisory committee with balanced representation from consumers, business, government, labor, certified health plans, practicing health care providers, health care facilities, and health services researchers reflecting ethnic and racial diversity. In addition, the chair may appoint special committees for specified periods of time.
(b) The chair shall also appoint a five-member health services effectiveness committee whose members possess a breadth of experience and knowledge in the treatment, research, and public and private funding of health care services. The committee shall meet at the call of the chair. The health services effectiveness committee shall advise the commission on: (i) Those health services that may be determined by the commission to be appropriate and effective; (ii) use of technology and practice indicators; (iii) the uniform benefits package; and (iv) rules that insurers and certified health plans must use to determine whether a procedure, treatment, drug, or other health service is no longer experimental or investigative.
(c) The commission shall also appoint a small business advisory committee composed of seven owners of businesses with twenty-five or fewer full-time equivalent employees' reflecting ethnic and racial diversity, to assist the commission in development of the small business economic impact statement and the small business assistance program, as provided in sections 450 and 466 of this act.
(d) The commission shall also appoint an organized labor advisory committee composed of seven representatives of employee organizations representing employees of public or private employers. The committee shall assist the commission in conducting the evaluation of Taft-Hartley health care trusts and self-insured employee health benefits plans, as provided in section 406(26) of this act, and shall advise the commission on issues related to the impact of chapter . . ., Laws of 1993 (this act) on negotiated health benefits agreements and other employee health benefits plans.
(2) Members of committees and panels shall serve without compensation for their services but shall be reimbursed for their expenses while attending meetings on behalf of the commission in accordance with RCW 43.03.050 and 43.03.060.
NEW SECTION. Sec. 405. POWERS AND DUTIES OF THE CHAIR. The chair shall be the chief administrative officer and the appointing authority of the commission and has the following powers and duties:
(1) Direct and supervise the commission's administrative and technical activities in accordance with the provisions of this chapter and rules and policies adopted by the commission;
(2) Employ personnel of the commission in accordance with chapter 41.06 RCW, and prescribe their duties. With the approval of a majority of the commission, the chair may appoint persons to administer any entity established pursuant to subsection (8) of this section, and up to seven additional employees all of whom shall be exempt from the provisions of chapter 41.06 RCW;
(3) Enter into contracts on behalf of the commission;
(4) Accept and expend gifts, donations, grants, and other funds received by the commission;
(5) Delegate administrative functions of the commission to employees of the commission as the chair deems necessary to ensure efficient administration;
(6) Subject to approval of the commission, appoint advisory committees and undertake studies, research, and analysis necessary to support activities of the commission;
(7) Preside at meetings of the commission;
(8) Consistent with policies and rules established by the commission, establish such administrative divisions, offices, or programs as are necessary to carry out the purposes of chapter . . ., Laws of 1993 (this act); and
(9) Perform such other administrative and technical duties as are consistent with chapter . . ., Laws of 1993 (this act) and the rules and policies of the commission.
NEW SECTION. Sec. 406. POWERS AND DUTIES OF THE COMMISSION. The commission has the following powers and duties:
(1) Ensure that all residents of Washington state are enrolled in a certified health plan to receive the uniform benefits package, regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment, or economic status.
(2) Endeavor to ensure that all residents of Washington state have access to appropriate, timely, confidential, and effective health services, and monitor the degree of access to such services. If the commission finds that individuals or populations lack access to certified health plan services, the commission shall:
(a) Authorize appropriate state agencies, local health departments, community or migrant health clinics, public hospital districts, or other nonprofit health service entities to take actions necessary to assure such access. This includes authority to contract for or directly deliver services described within the uniform benefits package to special populations; or
(b) Notify appropriate certified health plans and the insurance commissioner of such findings. The commission shall adopt by rule standards by which the insurance commissioner may, in such event, require certified health plans in closest proximity to such individuals and populations to extend their catchment areas to those individuals and populations and offer them enrollment.
(3) Adopt necessary rules in accordance with chapter 34.05 RCW to carry out the purposes of chapter . . ., Laws of 1993 (this act). An initial set of draft rules establishing at least the commission's organization structure, the uniform benefits package, and standards for certified health plan certification, must be submitted in draft form to appropriate committees of the legislature by December 1, 1994.
(4) Establish and modify as necessary, in consultation with the state board of health and the department of health, and coordination with the planning process set forth in section 467 of this act a uniform set of health services based on the recommendations of the health care cost control and access commission established under House Concurrent Resolution No. 4443 adopted by the legislature in 1990.
(5) Establish and modify as necessary the uniform benefits package as provided in section 449 of this act, which shall be offered to enrollees of a certified health plan. The benefit package shall be provided at no more than the maximum premium specified in subsection (6) of this section.
(6)(a) Establish for each year a community-rated maximum premium for the uniform benefits package that shall operate to control overall health care costs. The maximum premium cost of the uniform benefits package in the base year 1995 shall be established upon an actuarial determination of the costs of providing the uniform benefits package and such other cost impacts as may be deemed relevant by the commission. Beginning in 1996, the growth rate of the premium cost of the uniform benefits package for each certified health plan shall be allowed to increase by a rate no greater than the average growth rate in the cost of the package between 1990 and 1993 as actuarially determined, reduced by two percentage points per year until the growth rate is no greater than the five-year rolling average of growth in Washington per capita personal income, as determined by the office of financial management.
(b) In establishing the community-rated maximum premium under this subsection, the commission shall develop a composite rate for employees that provides nominal, if any, variance between the rate for individual employees and employees with dependents to minimize any economic incentive to an employer to discriminate between prospective employees based upon whether or not they have dependents for whom coverage would be required. Nothing in this subsection (6)(b) shall preclude the commission from evaluating other methodologies for establishing the community-rated maximum premium and recommending an alternative methodology to the legislature.
(c) If the commission adds or deletes services or benefits to the uniform benefits package in subsequent years, it may increase or decrease the maximum premium to reflect the actual cost experience of a broad sample of providers of that service in the state, considering the factors enumerated in (a) of this subsection and adjusted actuarially. The addition of services or benefits shall not result in a redetermination of the entire cost of the uniform benefits package.
(d) The level of state expenditures for the uniform benefits package shall be limited to the appropriation of funds specifically for this purpose.
(7) Determine the need for medical risk adjustment mechanisms to minimize financial incentives for certified health plans to enroll individuals who present lower health risks and avoid enrolling individuals who present higher health risks, and to minimize financial incentives for employer hiring practices that discriminate against individuals who present higher health risks. In the design of medical risk distribution mechanisms under this subsection, the commission shall (a) balance the benefits of price competition with the need to protect certified health plans from any unsustainable negative effects of adverse selection; (b) consider the development of a system that creates a risk profile of each certified health plan's enrollee population that does not create disincentives for a plan to control benefit utilization, that requires contributions from plans that enjoy a low-risk enrollee population to plans that have a high-risk enrollee population, and that does not permit an adjustment of the premium charged for the uniform benefits package or supplemental coverage based upon either receipt or contribution of assessments; and (c) consider whether registered employer health plans should be included in any medical risk adjustment mechanism. Proposed medical risk adjustment mechanisms shall be submitted to the legislature as provided in section 454 of this act.
(8) Design a mechanism to assure minors have access to confidential health care services as currently provided in RCW 70.24.110 and 71.34.030.
(9) Monitor the actual growth in total annual health services costs.
(10) Monitor the increased application of technology as required by chapter . . ., Laws of 1993 (this act) and take necessary action to ensure that such application is made in a cost-effective and efficient manner and consistent with existing laws that protect individual privacy.
(11) Establish reporting requirements for certified health plans that own or manage health care facilities, health care facilities, and health care providers to periodically report to the commission regarding major capital expenditures of the plans. The commission shall review and monitor such reports and shall report to the legislature regarding major capital expenditures on at least an annual basis. The Washington health care facilities authority and the commission shall develop standards jointly for evaluating and approving major capital expenditure financing through the Washington health care facilities authority, as authorized pursuant to chapter 70.37 RCW. By December 1, 1994, the commission and the authority shall submit jointly to the legislature such proposed standards. The commission and the authority shall, after legislative review, but no later than June 1, 1995, publish such standards. Upon publication, the authority may not approve financing for major capital expenditures unless approved by the commission.
(12) Establish maximum enrollee financial participation levels. The levels shall be related to enrollee household income.
(13) For health services provided under the uniform benefits package and supplemental benefits, adopt standards for enrollment, and standardized billing and claims processing forms. The standards shall ensure that these procedures minimize administrative burdens on health care providers, health care facilities, certified health plans, and consumers. Subject to federal approval or phase-in schedules whenever necessary or appropriate, the standards also shall apply to state-purchased health services, as defined in RCW 41.05.011.
(14) Propose that certified health plans adopt certain practice indicators or risk management protocols for quality assurance, utilization review, or provider payment. The commission may consider indicators or protocols recommended according to section 410 of this act for these purposes.
(15) Propose other guidelines to certified health plans for utilization management, use of technology and methods of payment, such as diagnosis-related groups and a resource-based relative value scale. Such guidelines shall be voluntary and shall be designed to promote improved management of care, and provide incentives for improved efficiency and effectiveness within the delivery system.
(16) Adopt standards and oversee and develop policy for personal health data and information system as provided in chapter 70.170 RCW.
(17) Adopt standards that prevent conflict of interest by health care providers as provided in section 408 of this act.
(18) At the appropriate juncture and in the fullness of time, consider the extent to which medical research and health professions training activities should be included within the health service system set forth in this chapter . . ., Laws of 1993 (this act).
(19) Evaluate and monitor the extent to which racial and ethnic minorities have access and to receive health services within the state, and develop strategies to address barriers to access.
(20) Develop standards for the certification process to certify health plans and employer health plans to provide the uniform benefits package, according to the provisions for certified health plans and registered employer health plans under chapter . . ., Laws of 1993 (this act).
(21) Develop rules for implementation of individual and employer participation under sections 463 and 464 of this act specifically applicable to persons who work in this state but do not live in the state or persons who live in this state but work outside of the state. The rules shall be designed so that these persons receive coverage and financial requirements that are comparable to that received by persons who both live and work in the state.
(22) After receiving advice from the health services effectiveness committee, adopt rules that must be used by certified health plans, disability insurers, health care service contractors, and health maintenance organizations to determine whether a procedure, treatment, drug, or other health service is no longer experimental or investigative.
(23) Establish a process for purchase of uniform benefits package services by enrollees when they are out-of-state.
(24) Develop recommendations to the legislature as to whether state and school district employees, on whose behalf health benefits are or will be purchased by the health care authority pursuant to chapter 41.05 RCW, should have the option to purchase health benefits through health insurance purchasing cooperatives on and after July 1, 1997. In developing its recommendations, the commission shall consider:
(a) The impact of state or school district employees purchasing through health insurance purchasing cooperatives on the ability of the state to control its health care costs; and
(b) Whether state or school district employees purchasing through health insurance purchasing cooperatives will result in inequities in health benefits between or within groups of state and school district employees.
(25) Establish guidelines for providers dealing with terminal or static conditions, taking into consideration the ethics of providers, patient and family wishes, costs, and survival possibilities.
(26) Evaluate the extent to which Taft-Hartley health care trusts provide benefits to certain individuals in the state; review the federal laws under which these trusts are organized; and make appropriate recommendations to the governor and the legislature on or before December 1, 1994, as to whether these trusts should be brought under the provisions of chapter . . ., Laws of 1993 (this act) when it is fully implemented, and if the commission recommends inclusion of the trusts, how to implement such inclusion.
(27) Evaluate whether Washington is experiencing a higher percentage in in-migration of residents from other states and territories than would be expected by normal trends as a result of the availability of unsubsidized and subsidized health care benefits for all residents and report to the governor and the legislature their findings.
(28) In developing the uniform benefits package and other standards pursuant to this section, consider the likelihood of the establishment of a national health services plan adopted by the federal government and its implications.
(29) Evaluate the effect of reforms under chapter . . ., Laws of 1993 (this act) on access to care and economic development in rural areas.
To the extent that the exercise of any of the powers and duties specified in this section may be inconsistent with the powers and duties of other state agencies, offices, or commissions, the authority of the commission shall supersede that of such other state agency, office, or commission, except in matters of personal health data, where the commission shall have primary data system policymaking authority and the department of health shall have primary responsibility for the maintenance and routine operation of personal health data systems.
NEW SECTION. Sec. 407. MODIFICATION OF MAXIMUM PREMIUM. Upon the recommendation of the insurance commissioner, and on the basis of evidence established by independent actuarial analysis, if the commission finds that the economic viability of a significant number of the state's certified health plans is seriously threatened, the commission may increase the maximum premium to the extent mandated by the Constitution, and must immediately thereafter submit to the legislature a proposal for a new formula for adjusting the maximum premium, which must be enacted into law by a sixty percent vote of each house of the legislature.
NEW SECTION. Sec. 408. A new section is added to chapter 18.130 RCW to read as follows:
CONFLICT OF INTEREST STANDARDS. The Washington health services commission established by section 403 of this act, in consultation with the secretary of health, and the health care disciplinary authorities under RCW 18.130.040(2)(b), shall establish standards and monetary penalties in rule prohibiting provider investments and referrals that present a conflict of interest resulting from inappropriate financial gain for the provider or his or her immediate family. These standards are not intended to inhibit the efficient operation of managed health care systems or certified health plans. The commission shall report to the health policy committees of the senate and house of representatives by December 1, 1994, on the development of the standards and any recommended statutory changes necessary to implement the standards.
NEW SECTION. Sec. 409. CONTINUOUS QUALITY IMPROVEMENT AND TOTAL QUALITY MANAGEMENT. To ensure the highest quality health services at the lowest total cost, the commission shall establish a total quality management system of continuous quality improvement. Such endeavor shall be based upon the recognized quality science for continuous quality improvement. The commission shall impanel a committee composed of persons from the private sector and related sciences who have broad knowledge and successful experiences in continuous quality improvement and total quality management applications. It shall be the responsibility of the committee to develop standards for a Washington state health services supplier certification process and recommend such standards to the commission for review and adoption. Once adopted, the commission shall establish a schedule, with full compliance no later than July 1, 1996, whereby all health service providers and health service facilities shall be certified prior to providing uniform benefits package services.
B. PRACTICE INDICATORS
NEW SECTION. Sec. 410. A new section is added to chapter 43.70 RCW to read as follows:
PRACTICE INDICATORS. The department of health shall consult with health care providers and facilities, purchasers, health professional regulatory authorities under RCW 18.130.040, appropriate research and clinical experts, and consumers of health care services to identify specific practice areas where practice indicators and risk management protocols have been developed, including those that have been demonstrated to be effective among persons of color. Practice indicators shall be based upon expert consensus and best available scientific evidence. The department shall:
(1) Develop a definition of expert consensus and best available scientific evidence so that practice indicators can serve as a standard for excellence in the provision of health care services.
(2) Establish a process to identify and evaluate practice indicators and risk management protocols as they are developed by the appropriate professional, scientific, and clinical communities.
(3) Recommend the use of practice indicators and risk management protocols in quality assurance, utilization review, or provider payment to the health services commission.
C. HEALTH CARE LIABILITY REFORMS
Sec. 411. RCW 43.70.320 and 1991 sp.s. c 13 s 18 are each amended to read as follows:
HEALTH PROFESSIONS ACCOUNT. (1) There is created in the state treasury an account to be known as the health professions account. All fees received by the department for health professions licenses, registration, certifications, renewals, or examinations and the civil penalties assessed and collected by the department under RCW 18.130.190 shall be forwarded to the state treasurer who shall credit such moneys to the health professions account.
(2) All expenses incurred in carrying out the health professions licensing activities of the department shall be paid from the account as authorized by legislative appropriation. Any residue in the account shall be accumulated and shall not revert to the general fund at the end of the biennium.
(3) The secretary shall biennially prepare a budget request based on the anticipated costs of administering the health professions licensing activities of the department which shall include the estimated income from health professions fees.
NEW SECTION. Sec. 412. A new section is added to chapter 18.130 RCW to read as follows:
MALPRACTICE INSURANCE COVERAGE MANDATE. Except to the extent that liability insurance is not available, every licensed health care practitioner whose services are included in the uniform benefits package, as determined by section 449 of this act, and whose scope of practice includes independent practice, shall, as a condition of licensure and relicensure, be required to provide evidence of a minimum level of malpractice insurance coverage issued by a company authorized to do business in this state. On or before January 1, 1994, the department shall designate by rule:
(1) Those health professions whose scope of practice includes independent practice;
(2) For each health profession whose scope of practice includes independent practice, whether malpractice insurance is available; and
(3) If such insurance is available, the appropriate minimum level of mandated coverage.
NEW SECTION. Sec. 413. A new section is added to chapter 48.22 RCW to read as follows:
RISK MANAGEMENT TRAINING OF INDEPENDENT HEALTH CARE PRACTITIONERS. Effective July 1, 1994, a casualty insurer's issuance of a new medical malpractice policy or renewal of an existing medical malpractice policy to a physician or other independent health care practitioner shall be conditioned upon that practitioner's participation in, and completion of, an insurer-designed health care liability risk management training program once every three years. The risk management training shall provide information related to avoiding adverse health outcomes resulting from substandard practice and minimizing damages associated with the adverse health outcomes that do occur. For purposes of this section, "independent health care practitioners" means those health care practitioner licensing classifications designated by the department of health in rule pursuant to section 412 of this act.
NEW SECTION. Sec. 414. A new section is added to chapter 48.05 RCW to read as follows:
RISK MANAGEMENT TRAINING OF INDEPENDENT HEALTH CARE PRACTITIONERS. Effective July 1, 1994, each health care provider, facility, or health maintenance organization that self-insures for liability risks related to medical malpractice and employs physicians or other independent health care practitioners in Washington state shall condition each physician's and practitioner's liability coverage by that entity upon that physician's or practitioner's participation in risk management training offered by the provider, facility, or health maintenance organization to its employees. The risk management training shall provide information related to avoiding adverse health outcomes resulting from substandard practice and minimizing damages associated with those adverse health outcomes that do occur. For purposes of this section, "independent health care practitioner" means those health care practitioner licensing classifications designated by the department of health in rule pursuant to section 412 of this act.
Sec. 415. RCW 70.41.200 and 1991 c 3 s 336 are each amended to read as follows:
QUALITY IMPROVEMENT PROGRAM. (1) Every hospital shall maintain a coordinated quality improvement program for the improvement of the quality of health care services rendered to patients and the identification and prevention of medical malpractice. The program shall include at least the following:
(a) The establishment of a quality ((assurance)) improvement committee with the responsibility to review the services rendered in the hospital, both retrospectively and prospectively, in order to improve the quality of medical care of patients and to prevent medical malpractice. The committee shall oversee and coordinate the quality improvement and medical malpractice prevention program and shall insure that information gathered pursuant to the program is used to review and to revise hospital policies and procedures((. At least one member of the committee shall be a member of the governing board of the hospital who is not otherwise affiliated with the hospital in an employment or contractual capacity));
(b) A medical staff privileges sanction procedure through which credentials, physical and mental capacity, and competence in delivering health care services are periodically reviewed as part of an evaluation of staff privileges;
(c) The periodic review of the credentials, physical and mental capacity, and competence in delivering health care services of all persons who are employed or associated with the hospital;
(d) A procedure for the prompt resolution of grievances by patients or their representatives related to accidents, injuries, treatment, and other events that may result in claims of medical malpractice;
(e) The maintenance and continuous collection of information concerning the hospital's experience with negative health care outcomes and incidents injurious to patients, patient grievances, professional liability premiums, settlements, awards, costs incurred by the hospital for patient injury prevention, and safety improvement activities;
(f) The maintenance of relevant and appropriate information gathered pursuant to (a) through (e) of this subsection concerning individual physicians within the physician's personnel or credential file maintained by the hospital;
(g) Education programs dealing with quality improvement, patient safety, injury prevention, staff responsibility to report professional misconduct, the legal aspects of patient care, improved communication with patients, and causes of malpractice claims for staff personnel engaged in patient care activities; and
(h) Policies to ensure compliance with the reporting requirements of this section.
(2) Any person who, in substantial good faith, provides information to further the purposes of the quality improvement and medical malpractice prevention program or who, in substantial good faith, participates on the quality ((assurance)) improvement committee shall not be subject to an action for civil damages or other relief as a result of such activity.
(3) Information and documents, including complaints and incident reports, created specifically for, and collected, and maintained ((about health care providers arising out of the matters that are under review or have been evaluated)) by a ((review)) quality improvement committee ((conducting quality assurance reviews)) are not subject to discovery or introduction into evidence in any civil action, and no person who was in attendance at a meeting of such committee or ((board)) who participated in the creation, collection, or maintenance of information or documents specifically for the committee shall be permitted or required to testify in any civil action as to the content of such proceedings or the documents and information prepared specifically for the committee. This subsection does not preclude: (a) In any civil action, the discovery of the identity of persons involved in the medical care that is the basis of the civil action whose involvement was independent of any quality improvement activity; (b) in any civil action, the testimony of any person concerning the facts which form the basis for the institution of such proceedings of which the person had personal knowledge acquired independently of such proceedings; (((b))) (c) in any civil action by a health care provider regarding the restriction or revocation of that individual's clinical or staff privileges, introduction into evidence information collected and maintained by quality ((assurance)) improvement committees regarding such health care provider; (((c))) (d) in any civil action, disclosure of the fact that staff privileges were terminated or restricted, including the specific restrictions imposed, if any and the reasons for the restrictions; or (((d))) (e) in any civil action, discovery and introduction into evidence of the patient's medical records required by regulation of the department of health to be made regarding the care and treatment received.
(4) Each quality improvement committee shall, on at least a semiannual basis, report to the governing board of the hospital in which the committee is located. The report shall review the quality improvement activities conducted by the committee, and any actions taken as a result of those activities.
(5) The department of health shall adopt such rules as are deemed appropriate to effectuate the purposes of this section.
(((5))) (6) The medical disciplinary board or the board of osteopathic medicine and surgery, as appropriate, may review and audit the records of committee decisions in which a physician's privileges are terminated or restricted. Each hospital shall produce and make accessible to the board the appropriate records and otherwise facilitate the review and audit. Information so gained shall not be subject to the discovery process and confidentiality shall be respected as required by subsection (3) of this section. Failure of a hospital to comply with this subsection is punishable by a civil penalty not to exceed two hundred fifty dollars.
(((6))) (7) Violation of this section shall not be considered negligence per se.
Sec. 416. RCW 70.41.230 and 1991 c 3 s 337 are each amended to read as follows:
REQUEST FOR STAFF PRIVILEGES. (1) Prior to granting or renewing clinical privileges or association of any physician or hiring a physician, a hospital or facility approved pursuant to this chapter shall request from the physician and the physician shall provide the following information:
(a) The name of any hospital or facility with or at which the physician had or has any association, employment, privileges, or practice;
(b) If such association, employment, privilege, or practice was discontinued, the reasons for its discontinuation;
(c) Any pending professional medical misconduct proceedings or any pending medical malpractice actions in this state or another state, the substance of the allegations in the proceedings or actions, and any additional information concerning the proceedings or actions as the physician deems appropriate;
(d) The substance of the findings in the actions or proceedings and any additional information concerning the actions or proceedings as the physician deems appropriate;
(e) A waiver by the physician of any confidentiality provisions concerning the information required to be provided to hospitals pursuant to this subsection; and
(f) A verification by the physician that the information provided by the physician is accurate and complete.
(2) Prior to granting privileges or association to any physician or hiring a physician, a hospital or facility approved pursuant to this chapter shall request from any hospital with or at which the physician had or has privileges, was associated, or was employed, the following information concerning the physician:
(a) Any pending professional medical misconduct proceedings or any pending medical malpractice actions, in this state or another state;
(b) Any judgment or settlement of a medical malpractice action and any finding of professional misconduct in this state or another state by a licensing or disciplinary board; and
(c) Any information required to be reported by hospitals pursuant to RCW 18.72.265.
(3) The medical disciplinary board shall be advised within thirty days of the name of any physician denied staff privileges, association, or employment on the basis of adverse findings under subsection (1) of this section.
(4) A hospital or facility that receives a request for information from another hospital or facility pursuant to subsections (1) and (2) of this section shall provide such information concerning the physician in question to the extent such information is known to the hospital or facility receiving such a request, including the reasons for suspension, termination, or curtailment of employment or privileges at the hospital or facility. A hospital, facility, or other person providing such information in good faith is not liable in any civil action for the release of such information.
(5) Information and documents, including complaints and incident reports, created specifically for, and collected, and maintained ((about health care providers arising out of the matters that are under review or have been evaluated)) by a ((review)) quality improvement committee ((conducting quality assurance reviews)) are not subject to discovery or introduction into evidence in any civil action, and no person who was in attendance at a meeting of such committee or ((board)) who participated in the creation, collection, or maintenance of information or documents specifically for the committee shall be permitted or required to testify in any civil action as to the content of such proceedings or the documents and information prepared specifically for the committee. This subsection does not preclude: (a) In any civil action, the discovery of the identity of persons involved in the medical care that is the basis of the civil action whose involvement was independent of any quality improvement activity; (b) in any civil action, the testimony of any person concerning the facts which form the basis for the institution of such proceedings of which the person had personal knowledge acquired independently of such proceedings; (((b))) (c) in any civil action by a health care provider regarding the restriction or revocation of that individual's clinical or staff privileges, introduction into evidence information collected and maintained by quality ((assurance)) improvement committees regarding such health care provider; (((c))) (d) in any civil action, disclosure of the fact that staff privileges were terminated or restricted, including the specific restrictions imposed, if any and the reasons for the restrictions; or (((d))) (e) in any civil action, discovery and introduction into evidence of the patient's medical records required by regulation of the department of health to be made regarding the care and treatment received.
(6) Hospitals shall be granted access to information held by the medical disciplinary board and the board of osteopathic medicine and surgery pertinent to decisions of the hospital regarding credentialing and recredentialing of practitioners.
(7) Violation of this section shall not be considered negligence per se.
NEW SECTION. Sec. 417. A new section is added to chapter 43.70 RCW to read as follows:
COORDINATED QUALITY IMPROVEMENT PROGRAM. (1)(a) Health care institutions and medical facilities, other than hospitals, that are licensed by the department, professional societies or organizations, and certified health plans approved pursuant to section 428 of this act may maintain a coordinated quality improvement program for the improvement of the quality of health care services rendered to patients and the identification and prevention of medical malpractice as set forth in RCW 70.41.200.
(b) All such programs shall comply with the requirements of RCW 70.41.200(1)(a), (c), (d), (e), (f), (g), and (h) as modified to reflect the structural organization of the institution, facility, professional societies or organizations, or certified health plan, unless an alternative quality improvement program substantially equivalent to RCW 70.41.200(1)(a) is developed. All such programs, whether complying with the requirement set forth in RCW 70.41.200(1)(a) or in the form of an alternative program, must be approved by the department before the discovery limitations provided in subsections (3) and (4) of this section shall apply. In reviewing plans submitted by licensed entities that are associated with physicians' offices, the department shall ensure that the discovery limitations of this section are applied only to information and documents related specifically to quality improvement activities undertaken by the licensed entity.
(2) Health care provider groups of ten or more providers may maintain a coordinated quality improvement program for the improvement of the quality of health care services rendered to patients and the identification and prevention of medical malpractice as set forth in RCW 70.41.200. All such programs shall comply with the requirements of RCW 70.41.200(1)(a), (c), (d), (e), (f), (g), and (h) as modified to reflect the structural organization of the health care provider group. All such programs must be approved by the department before the discovery limitations provided in subsections (3) and (4) of this section shall apply.
(3) Any person who, in substantial good faith, provides information to further the purposes of the quality improvement and medical malpractice prevention program or who, in substantial good faith, participates on the quality improvement committee shall not be subject to an action for civil damages or other relief as a result of such activity.
(4) Information and documents, including complaints and incident reports, created specifically for, and collected, and maintained by a quality improvement committee are not subject to discovery or introduction into evidence in any civil action, and no person who was in attendance at a meeting of such committee or who participated in the creation, collection, or maintenance of information or documents specifically for the committee shall be permitted or required to testify in any civil action as to the content of such proceedings or the documents and information prepared specifically for the committee. This subsection does not preclude: (a) In any civil action, the discovery of the identity of persons involved in the medical care that is the basis of the civil action whose involvement was independent of any quality improvement activity; (b) in any civil action, the testimony of any person concerning the facts that form the basis for the institution of such proceedings of which the person had personal knowledge acquired independently of such proceedings; (c) in any civil action by a health care provider regarding the restriction or revocation of that individual's clinical or staff privileges, introduction into evidence information collected and maintained by quality improvement committees regarding such health care provider; (d) in any civil action, disclosure of the fact that staff privileges were terminated or restricted, including the specific restrictions imposed, if any and the reasons for the restrictions; or (e) in any civil action, discovery and introduction into evidence of the patient's medical records required by rule of the department of health to be made regarding the care and treatment received.
(5) The department of health shall adopt rules as are necessary to implement this section.
NEW SECTION. Sec. 418. MEDICAL MALPRACTICE REVIEW. (1) The administrator for the courts shall coordinate a collaborative effort to develop a voluntary system for review of medical malpractice claims by health services experts prior to the filing of a cause of action under chapter 7.70 RCW.
(2) The system shall have at least the following components:
(a) Review would be initiated, by agreement of the injured claimant and the health care provider, at the point at which a medical malpractice claim is submitted to a malpractice insurer or a self-insured health care provider.
(b) By agreement of the parties, an expert would be chosen from a pool of health services experts who have agreed to review claims on a voluntary basis.
(c) The mutually agreed upon expert would conduct an impartial review of the claim and provide his or her opinion to the parties.
(d) A pool of available experts would be established and maintained for each category of health care practitioner by the corresponding practitioner association, such as the Washington state medical association and the Washington state nurses association.
(3) The administrator for the courts shall seek to involve at least the following organizations in a collaborative effort to develop the informal review system described in subsection (2) of this section:
(a) The Washington defense trial lawyers association;
(b) The Washington state trial lawyers association;
(c) The Washington state medical association;
(d) The Washington state nurses association and other employee organizations representing nurses;
(e) The Washington state hospital association;
(f) The Washington state physicians insurance exchange and association;
(g) The Washington casualty company;
(h) The doctor's agency;
(i) Group health cooperative of Puget Sound;
(j) The University of Washington;
(k) Washington osteopathic medical association;
(l) Washington state chiropractic association;
(m) Washington association of naturopathic physicians; and
(n) The department of health.
(4) On or before January 1, 1994, the administrator for the courts shall provide a report on the status of the development of the system described in this section to the governor and the appropriate committees of the senate and the house of representatives.
NEW SECTION. Sec. 419. A new section is added to chapter 7.70 RCW to read as follows:
MANDATORY MEDIATION OF HEALTH CARE MALPRACTICE CLAIMS. (1) All causes of action, whether based in tort, contract, or otherwise, for damages arising from injury occurring as a result of health care provided after the effective date of this section shall be subject to mandatory mediation prior to trial.
(2) The supreme court shall by rule adopt procedures to implement mandatory mediation of actions under this chapter. The rules shall address, at a minimum:
(a) Procedures for the appointment of, and qualifications of, mediators. A mediator shall have experience or expertise related to actions arising from injury occurring as a result of health care, and be a member of the state bar association who has been admitted to the bar for a minimum of five years or who is a retired judge. The parties may stipulate to a nonlawyer mediator. The court may prescribe additional qualifications of mediators;
(b) Appropriate limits on the amount or manner of compensation of mediators;
(c) The number of days following the filing of a claim under this chapter within which a mediator must be selected;
(d) The method by which a mediator is selected. The rule shall provide for designation of a mediator by the superior court if the parties are unable to agree upon a mediator;
(e) The number of days following the selection of a mediator within which a mediation conference must be held;
(f) A means by which mediation of an action under this chapter may be waived by a mediator who has determined that the claim is not appropriate for mediation; and
(g) Any other matters deemed necessary by the court.
(3) Mediators shall not impose discovery schedules upon the parties.
NEW SECTION. Sec. 420. A new section is added to chapter 7.70 RCW to read as follows:
MANDATORY MEDIATION OF HEALTH CARE MALPRACTICE. The making of a written, good faith request for mediation of a dispute related to damages for injury occurring as a result of health care provided prior to filing a cause of action under this chapter shall toll the statute of limitations provided in RCW 4.16.350.
NEW SECTION. Sec. 421. A new section is added to chapter 7.70 RCW to read as follows:
MANDATORY MEDIATION OF HEALTH CARE MALPRACTICE CLAIMS. Section 419 of this act may not be construed to abridge the right to trial by jury following an unsuccessful attempt at mediation.
Sec. 422. RCW 5.60.070 and 1991 c 321 s 1 are each amended to read as follows:
MEDIATION--COMMUNICATIONS PRIVILEGED. (1) If there is a court order to mediate ((or)), a written agreement between the parties to mediate, or if mediation is mandated under section 419 of this act, then any communication made or materials submitted in, or in connection with, the mediation proceeding, whether made or submitted to or by the mediator, a mediation organization, a party, or any person present, are privileged and confidential and are not subject to disclosure in any judicial or administrative proceeding except:
(a) When all parties to the mediation agree, in writing, to disclosure;
(b) When the written materials or tangible evidence are otherwise subject to discovery, and were not prepared specifically for use in and actually used in the mediation proceeding;
(c) When a written agreement to mediate permits disclosure;
(d) When disclosure is mandated by statute;
(e) When the written materials consist of a written settlement agreement or other agreement signed by the parties resulting from a mediation proceeding;
(f) When those communications or written materials pertain solely to administrative matters incidental to the mediation proceeding, including the agreement to mediate; or
(g) In a subsequent action between the mediator and a party to the mediation arising out of the mediation.
(2) When there is a court order ((or)), a written agreement to mediate, or when mediation is mandated under section 419 of this act, as described in subsection (1) of this section, the mediator or a representative of a mediation organization shall not testify in any judicial or administrative proceeding unless:
(a) All parties to the mediation and the mediator agree in writing; or
(b) In an action described in subsection (1)(g) of this section.
NEW SECTION. Sec. 423. A new section is added to chapter 7.70 RCW to read as follows:
MANDATORY MEDIATION OF HEALTH CARE MALPRACTICE CLAIMS. A cause of action that has been mediated as provided in section 419 of this act shall be exempt from any superior court civil rules mandating arbitration of civil actions or participation in settlement conferences prior to trial.
Sec. 424. RCW 4.22.070 and 1986 c 305 s 401 are each amended to read as follows:
PERCENTAGE OF FAULT--JOINT AND SEVERAL LIABILITY. (1) Except as provided in subsection (4) of this section, in all actions involving fault of more than one entity, the trier of fact shall determine the percentage of the total fault which is attributable to every entity which caused the claimant's damages, including the claimant or person suffering personal injury or incurring property damage, defendants, third-party defendants, entities released by the claimant, entities immune from liability to the claimant and entities with any other individual defense against the claimant. Judgment shall be entered against each defendant except those who have been released by the claimant or are immune from liability to the claimant or have prevailed on any other individual defense against the claimant in an amount which represents that party's proportionate share of the claimant's total damages. The liability of each defendant shall be several only and shall not be joint except:
(a) A party shall be responsible for the fault of another person or for payment of the proportionate share of another party where both were acting in concert or when a person was acting as an agent or servant of the party.
(b) If the trier of fact determines that the claimant or party suffering bodily injury or incurring property damages was not at fault, the defendants against whom judgment is entered shall be jointly and severally liable for the sum of their proportionate shares of the claimants total damages.
(2) If a defendant is jointly and severally liable under one of the exceptions listed in subsection((s)) (1)(a) or (1)(b) or (4) (a) or (b) of this section, such defendant's rights to contribution against another jointly and severally liable defendant, and the effect of settlement by either such defendant, shall be determined under RCW 4.22.040, 4.22.050, and 4.22.060.
(3)(a) Nothing in this section affects any cause of action relating to hazardous wastes or substances or solid waste disposal sites.
(b) Nothing in this section shall affect a cause of action arising from the tortious interference with contracts or business relations.
(c) Nothing in this section shall affect any cause of action arising from the manufacture or marketing of a fungible product in a generic form which contains no clearly identifiable shape, color, or marking.
(4) In all actions governed by chapter 7.70 RCW involving fault of more than one entity, the trier of fact shall determine the percentage of the total fault that is attributable to every entity that caused the claimant's damages, including the claimant or person suffering personal injury or incurring property damage, defendants, third-party defendants, entities released by the claimant, entities immune from liability to the claimant, and entities with any other individual defense against the claimant. Judgment shall be entered against each defendant except those who have been released by the claimant or are immune from liability to the claimant or have prevailed on any other individual defense against the claimant in an amount that represents that party's proportionate share of the claimant's total damages. The total damages shall first be reduced by any amount paid to the claimant by a released entity. The liability of each defendant shall be several only and shall not be joint except:
(a) A party shall be responsible for the fault of another person or for payment of the proportionate share of another party where both were acting in concert or when a person was acting as an agent or servant of the party.
(b) If the trier of fact determines that the claimant or party suffering bodily injury or incurring property damages was not at fault, the defendants against whom judgment is entered shall be jointly and severally liable for the sum of their proportionate shares of the claimant's total damages.
(c) A defendant against whom judgment has been entered shall be responsible to the claimant for any fault of an entity released by the claimant. The total damages shall first be reduced by any amount paid to the claimant by a released entity, and, then, where some fault has been attributed to the claimant, by the claimant's proportionate share of his or her total damages.
D. HEALTH INSURANCE PURCHASING COOPERATIVES
NEW SECTION. Sec. 425. HEALTH INSURANCE PURCHASING COOPERATIVES--DESIGNATION OF REGIONS BY COMMISSION, INFORMATION SYSTEMS, MINIMUM STANDARDS, AND RULES. (1) The commission shall designate four geographic regions within the state in which health insurance purchasing cooperatives may operate, based upon population, assuming that each cooperative must serve no less than one hundred fifty thousand persons; geographic factors; market conditions; and other factors deemed appropriate by the commission. The commission shall designate one health insurance purchasing cooperative per region.
(2) In coordination with the commission and consistent with the provisions of chapter 70.170 RCW, the department of health shall establish an information clearinghouse for the collection and dissemination of information necessary for the efficient operation of cooperatives, including the establishment of a risk profile information system related to certified health plan enrollees that would permit the equitable distribution of losses among plans in accordance with section 406(7) of this act.
(3) Every health insurance purchasing cooperative shall:
(a) Admit all individuals, employers, or other groups wishing to participate in the cooperative;
(b) Make available for purchase by cooperative members every health care program offered by every certified health plan operating within the cooperative's region;
(c) Be operated as a member-governed and owned, nonprofit cooperative in which no certified health plan, health maintenance organization, health care service contractor, independent practice association, independent physician organization, or any individual with a pecuniary interest in any such organization, shall have any pecuniary interest in or management control of the cooperative;
(d) Provide for centralized enrollment and premium collection and distribution among certified health plans; and
(e) Serve as an ombudsman for its members to resolve inquiries, complaints, or other concerns with certified health plans.
(4) Every health insurance purchasing cooperative shall assist members in selecting certified health plans and for this purpose may devise a rating system or similar system to judge the quality and cost- effectiveness of certified health plans consistent with guidelines established by the commission. For this purpose, each cooperative and directors, officers, and other employees of the cooperative are immune from liability in any civil action or suit arising from the publication of any report, brochure, or guide, or dissemination of information related to the services, quality, price, or cost-effectiveness of certified plans unless actual malice, fraud, or bad faith is shown. Such immunity is in addition to any common law or statutory privilege or immunity enjoyed by such person, and nothing in this section is intended to abrogate or modify in any way such common law or statutory privilege or immunity.
(5) Every health insurance purchasing cooperative shall bear the full cost of its operations, including the costs of participating in the information clearinghouse, through assessments upon its members. Such assessments shall be billed and accounted for separately from premiums collected and distributed for the purchase of the uniform benefits package or any other supplemental insurance or health services program.
(6) No health insurance purchasing cooperative may bear any financial risk for the delivery of uniform benefits package services, or for any other supplemental insurance or health services program.
(7) No health insurance purchasing cooperative may directly broker, sell, contract for, or provide any insurance or health services program. However, nothing contained in this section shall be deemed to prohibit the use or employment of insurance agents or brokers by the cooperative for other purposes or to prohibit the facilitation of the sale and purchase by members of supplemental insurance or health services programs.
(8) The commission may adopt rules necessary for the implementation of this section including rules governing charter and bylaw provisions of cooperatives and may adopt rules prohibiting or permitting other activities by cooperatives.
(9) The commission shall consider ways in which cooperatives can develop, encourage, and provide incentives for employee wellness programs.
NEW SECTION. Sec. 426. LICENSING AND REGULATION OF HEALTH INSURANCE PURCHASING COOPERATIVES BY THE INSURANCE COMMISSIONER. (1) No person may establish or operate a health insurance purchasing cooperative without having first obtained a certificate of authority from the insurance commissioner.
(2) Every proposed cooperative shall furnish notice to the insurance commissioner that shall:
(a) Identify the principal name and address of the cooperative;
(b) Furnish the names and addresses of the initial officers of the cooperative;
(c) Include copies of letters of agreement for participation in the cooperative including minimum term of participation;
(d) Furnish copies of its proposed articles and bylaws; and
(e) Provide other information as prescribed by the insurance commissioner in consultation with the health services commission to verify that the cooperative is qualified and is managed by competent and trustworthy individuals.
(3)(a) The commissioner shall approve applications for certificates in accordance with the order received.
(b) The commissioner shall establish by rule a fee to be paid by cooperatives in an amount necessary to review and approve applications for a certificate of authority. Such fee shall accompany the application and no certificate may be issued until such fee is paid. Fees collected for such purpose shall be deposited in the insurance commissioner's regulatory account in the state treasury.
(4) All funds representing premiums or return premiums received by a cooperative in its fiduciary capacity shall be accounted for and maintained in a separate account from all other funds. Each willful violation of this section constitutes a misdemeanor.
(5) Every cooperative shall keep at its principal address, a record of all transactions it has consummated on behalf of its members with certified health plans. All such records shall be kept available and open to the inspection of the insurance commissioner at any business time during a five-year period immediately after the date of completion of the transaction.
E. CERTIFIED HEALTH PLANS
NEW SECTION. Sec. 427. CERTIFIED HEALTH PLANS--CERTIFICATION REQUIRED--PENALTY. (1) On and after July 1, 1995, no person or entity in this state shall provide the uniform benefits package and supplemental benefits as defined in section 402 of this act without being certified as a certified health plan by the insurance commissioner.
(2) On and after July 1, 1995, no certified health plan may offer less than the uniform benefits package to residents of this state and no registered employer health plan may provide less than the uniform benefits package to its employees and their dependents.
NEW SECTION. Sec. 428. HEALTH PLAN CERTIFICATION STANDARDS. A certified health plan shall:
(1) Provide the benefits included in the uniform benefits package to enrolled Washington residents for a prepaid per capita community-rated premium not to exceed the maximum premium established by the commission and provide such benefits through managed care in accordance with rules adopted by the commission;
(2) Offer supplemental benefits to enrolled Washington residents for a prepaid per capita community-rated premium and provide such benefits through managed care in accordance with rules adopted by the commission;
(3) Accept for enrollment any state resident within the plan's service area and provide or assure the provision of all services within the uniform benefits package and offer supplemental benefits regardless of age, sex, family structure, ethnicity, race, health condition, geographic location, employment status, socioeconomic status, other condition or situation, or the provisions of RCW 49.60.174(2). The insurance commissioner may grant a temporary exemption from this subsection, if, upon application by a certified health plan, the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a certified health plan is required to continue enrollment of additional eligible individuals;
(4) If the plan provides benefits through contracts with, ownership of, or management of health care facilities and contracts with or employs health care providers, demonstrate to the satisfaction of the insurance commissioner in consultation with the department of health and the commission that its facilities and personnel are adequate to provide the benefits prescribed in the uniform benefits package and offer supplemental benefits to enrolled Washington residents, and that it is financially capable of providing such residents with, or has made adequate contractual arrangements with health care providers and facilities to provide enrollees with such benefits;
(5) Comply with portability of benefits requirements prescribed by the commission;
(6) Comply with administrative rules prescribed by the commission, the insurance commissioner, and other state agencies governing certified health plans;
(7) Provide all enrollees with instruction and informational materials to increase individual and family awareness of injury and illness prevention; encourage assumption of personal responsibility for protecting personal health; and stimulate discussion about the use and limits of medical care in improving the health of individuals and communities;
(8) Disclose to enrollees the charity care requirements under chapter 70.170 RCW;
(9) Include in all of its contracts with health care providers and health care facilities a provision prohibiting such providers and facilities from billing enrollees for any amounts in excess of applicable enrollee point of service cost-sharing obligations for services included in the uniform benefits package and supplemental benefits;
(10) Include in all of its contracts issued for uniform benefits package and supplemental benefits coverage a subrogation provision that allows the certified health plan to recover the costs of uniform benefits package and supplemental benefits services incurred to care for an enrollee injured by a negligent third party. The costs recovered shall be limited to:
(a) If the certified health plan has not intervened in the action by an injured enrollee against a negligent third party, then the amount of costs the certified health plan can recover shall be limited to the excess remaining after the enrollee has been fully compensated for his or her loss minus a proportionate share of the enrollee's costs and fees in bringing the action. The proportionate share shall be determined by:
(i) The fees and costs approved by the court in which the action was initiated; or
(ii) The written agreement between the attorney and client that established fees and costs when fees and costs are not addressed by the court.
When fees and costs have been approved by a court, after notice to the certified health plan, the certified health plan shall have the right to be heard on the matter of attorneys' fees and costs or its proportionate share;
(b) If the certified health plan has intervened in the action by an injured enrollee against a negligent third party, then the amount of costs the certified health plan can recover shall be the excess remaining after the enrollee has been fully compensated for his or her loss or the amount of the plan's incurred costs, whichever is less;
(11) Establish and maintain a grievance procedure approved by the commissioner, to provide a reasonable and effective resolution of complaints initiated by enrollees concerning any matter relating to the provision of benefits under the uniform benefits package and supplemental benefits, access to health care services, and quality of services. Each certified health plan shall respond to complaints filed with the insurance commissioner within fifteen working days. The insurance commissioner in consultation with the commission shall establish standards for resolution of grievances;
(12) Comply with the provisions of chapter 48.30 RCW prohibiting unfair and deceptive acts and practices to the extent such provisions are not specifically modified or superseded by the provisions of chapter . . ., Laws of 1993 (this act) and be prohibited from offering or supplying incentives that would have the effect of avoiding the requirements of subsection (3) of this section;
(13) Have culturally sensitive health promotion programs that include approaches that are specifically effective for persons of color and accommodating to different cultural value systems, gender, and age;
(14) Permit every category of health care provider to provide health services or care for conditions included in the uniform benefits package to the extent that:
(a) The provision of such health services or care is within the health care providers' permitted scope of practice; and
(b) The providers agree to abide by standards related to:
(i) Provision, utilization review, and cost containment of health services;
(ii) Management and administrative procedures; and
(iii) Provision of cost-effective and clinically efficacious health services;
(15) Establish the geographic boundaries in which they will obligate themselves to deliver the services required under the uniform benefits package and include such information in their application for certification, but the commissioner shall review such boundaries and may disapprove, in conformance with guidelines adopted by the commission, those that have been clearly drawn to be exclusionary within a health care catchment area;
(16) Annually report the names and addresses of all officers, directors, or trustees of the certified health plan during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals;
(17) Annually report the number of residents enrolled and terminated during the previous year. Additional information regarding the enrollment and termination pattern for a certified health plan may be required by the commissioner to determine compliance with the open enrollment and free access requirements of chapter..., Laws of 1993 (this act); and
(18) Disclose any financial interests held by officers and directors in any facilities associated with or operated by the certified health plan.
NEW SECTION. Sec. 429. LIMITED CERTIFIED HEALTH PLAN FOR DENTAL SERVICES. (1) For the purposes of this section "limited certified dental plan" or "dental plan" means a limited health service contractor governed by RCW 48.44.035 offering dental care services only and that complies with all certified health plan requirements for managed care, community rating, portability, and nondiscrimination as provided in section 427 of this act.
(2) A dental plan may provide coverage for dental services directly to individuals or to employers for the benefit of employees. If an individual or an employer purchases dental care services from a dental plan, the certified health plan covering the individual or the employees need not provide dental services required under the uniform benefits package. A certified health plan may subcontract with a dental plan to provide the dental benefits required under the uniform benefits package.
NEW SECTION. Sec. 430. REGISTERED EMPLOYER HEALTH PLANS. Consistent with the provisions of section 464 of this act, a registered employer health plan shall:
(1) Register with the insurance commissioner by filing its plan of management and operation including but not limited to information required by the commissioner sufficient for a determination by the commissioner that such plan meets the requirements of this section and any rules adopted by the health services commission and the insurance commissioner pertaining to such plans.
(2) Provide the benefits included in the uniform benefits package to employees and their dependents for a prepaid, community-rated premium not to exceed the maximum premium established by the commission and provide such benefits through managed care in accordance with rules adopted by the commission. Such plans need not comply with the provisions of sections 449 and 450 of this act.
(3) Offer supplemental benefits to employees and their dependents for a prepaid, community-rated premium and provide such benefits through managed care in accordance with rules adopted by the commission. Such supplemental benefits, including the uniform benefits package, offered by such plan need not comply with the provisions of sections 449 and 450 of this act.
(4) Provide or assure the provision of all services within the uniform benefits package and offer supplemental benefits regardless of age, sex, family structure, ethnicity, race, health condition, socioeconomic status, or other condition or situation.
(5) If the plan provides benefits through contracts with, ownership of, or management of health care facilities and contracts with or employs health care providers, demonstrate to the satisfaction of the insurance commissioner in consultation with the department of health and the commission that its facilities and personnel are adequate to provide the uniform benefits package and any supplemental benefits or has made adequate contractual arrangements with health care providers and facilities to provide employees and their dependents with such benefits.
(6) Comply with portability of benefits requirements prescribed by the commission for registered employer health plans.
(7) Comply with administrative rules prescribed by the commission, the insurance commissioner, and other state agencies governing registered employer health plans.
(8) Provide all employees and their dependents enrolled in the plan with instruction and informational materials to increase individual and family awareness of injury and illness prevention; encourage assumption of personal responsibility for protecting personal health; and stimulate discussion about the use and limits of medical care in improving the health of individuals and communities.
(9) Include in all of its contracts with health care providers and health care facilities a provision prohibiting such providers and facilities from billing employees and their dependents enrolled in the plan for any amounts in excess of applicable enrollee point of service, cost-sharing obligations for services included in the uniform benefits package and supplemental benefits.
(10) Include in all of its contracts issued for uniform benefits package and supplemental benefits coverage a subrogation provision that allows the plan to recover the costs of uniform benefits package and supplemental benefit services incurred to care for a plan enrollee injured by a negligent third party. The costs recovered shall be limited to:
(a) If the plan has not intervened in the action by an injured plan enrollee against a negligent third party, then the amount of costs the plan can recover shall be limited to the excess remaining after the plan enrollee has been fully compensated for his or her loss minus a proportionate share of the enrollee's costs and fees in bringing the action. The proportionate share shall be determined by:
(i) The fees and costs approved by the court in which the action was initiated; or
(ii) The written agreement between the attorney and client that established fees and costs when fees and costs are not addressed by the court.
When fees and costs have been approved by a court, after notice to the plan, the plan shall have the right to be heard on the matter of attorneys' fees and costs or its proportionate share;
(b) If the plan has intervened in the action by an injured enrollee against a negligent third party, then the amount of costs the plan can recover shall be the excess remaining after the enrollee has been fully compensated for his or her loss or the amount of the plan's incurred costs, whichever is less.
(11) Establish and maintain a grievance procedure approved by the insurance commissioner, to provide a reasonable and effective resolution of complaints initiated by plan enrollees concerning any matter relating to the provision of benefits under the uniform benefits package and supplemental benefits, access to health care services, and quality of services. Each plan shall respond to complaints filed with the insurance commissioner within fifteen working days. The insurance commissioner in consultation with the commission shall establish standards for resolution of grievances by enrollees of registered employer health plans.
(12) Have culturally sensitive health promotion programs that include approaches that are specifically effective for persons of color and accommodating to different cultural value systems, gender, and age. (13) Permit every category of health care provider to provide health services or care for conditions included in the uniform benefits package to the extent that:
(a) The provision of such health services or care is within the health care providers' permitted scope of practice; and
(b) The providers agree to abide by standards related to:
(i) Provision, utilization review, and cost containment of health services;
(ii) Management and administrative procedures; and
(iii) Provision of cost-effective and clinically efficacious health services.
(14) Pay to the state treasurer a tax equivalent to the tax applied to taxpayers under section 301 of this act in accordance with rules adopted by the department of revenue.
(15) File their uniform benefits package and supplemental benefits with the insurance commissioner who may disapprove and order a modification of such package or benefits if such package or benefits fail to meet any standards or rules adopted by the commission pertaining to maximum premiums, enrollee financial participation, point of service cost-sharing, benefit design, or health service delivery.
(16) Comply with and shall be subject to sections 429, 446, and 447 of this act.
(17) Pay an annual fee to the insurance commissioner's office in an amount established by rule of the commissioner necessary for the performance of the commissioner's responsibilities under this section consistent with and subject to the collection, depositing, and spending provisions applicable to fees collected pursuant to RCW 48.02.190.
(18) File an annual report with the commissioner containing such information as the commissioner may require to determine compliance with this section.
(19) In addition to any other penalties prescribed by law, be subject to the penalties contained in section 436 of this act for violations of this section.
NEW SECTION. Sec. 431. CONTRACTS BETWEEN CERTIFIED HEALTH PLANS AND HEALTH CARE PROVIDERS. (1) Balancing the need for health care reform and the need to protect health care providers, as a class and as individual providers, from improper exclusion presents a problem that can be satisfied with the creation of a process to ensure fair consideration of the inclusion of health care providers in managed care systems operated by certified health plans. It is therefore the intent of the legislature that the health services commission in developing rules in accordance with this section and the attorney general in monitoring the level of competition in the various geographic markets, balance the need for cost-effective and quality delivery of health services with the need for inclusion of both individual health care providers and categories of health care providers in managed care programs developed by certified health plans.
(2) All licensed health care providers licensed by the state, irrespective of the type or kind of practice, should be afforded the opportunity for inclusion in certified health plans consistent with the goals of health care reform.
The health services commission shall adopt rules requiring certified health plans to publish general criteria for the plan's selection or termination of health care providers. Such rules shall not require the disclosure of criteria deemed by the plan to be of a proprietary or competitive nature that would hurt the plan's ability to compete or to manage health services. Disclosure of criteria is proprietary or anticompetitive if revealing the criteria would have the tendency to cause health care providers to alter their practice pattern in a manner that would harm efforts to contain health care costs and is proprietary if revealing the criteria would cause the plan's competitors to obtain valuable business information.
If a certified health plan uses unpublished criteria to judge the quality and cost-effectiveness of a health care provider's practice under any specific program within the plan, the plan may not reject or terminate the provider participating in that program based upon such criteria until the provider has been informed of the criteria that his or her practice fails to meet and is given a reasonable opportunity to conform to such criteria.
(3)(a) Whenever a determination is made under (b) of this subsection that a plan's share of the market reaches a point where the plan's exclusion of health care providers from a program of the plan would result in the substantial inability of providers to continue their practice thereby unreasonably restricting consumer access to needed health services, the certified health plan must allow all providers within the affected market to participate in the programs of the certified health plan. All such providers must meet the published criteria and requirements of the programs.
(b) The attorney general with the assistance of the insurance commissioner shall periodically analyze the market power of certified health plans to determine when the market share of any program of a certified health plan reaches a point where the plan's exclusion of health service providers from a program of the plan would result in the substantial inability of providers to continue their practice thereby unreasonably restricting consumer access to needed health services. In analyzing the market power of a certified health plan, the attorney general shall consider:
(i) The ease with which providers may obtain contracts with other plans;
(ii) The amount of the private pay and government employer business that is controlled by the certified health plan taking into account the selling of its provider network to self-insured employer plans;
(iii) The difficulty in establishing new competing plans in the relevant geographic market; and
(iv) The sufficiency of the number or type of providers under contract with the plan available to meet the needs of plan enrollees.
Notwithstanding the provisions of this subsection, if the certified health plan demonstrates to the satisfaction of the attorney general and the health services commission that health service utilization data and similar information shows that the inclusion of additional health service providers would substantially lessen the plan's ability to control health care costs and that the plan's procedures for selection of providers are not improperly exclusive of providers, the plan need not include additional providers within the plan's program.
(4) The health services commission shall adopt rules for the resolution of disputes between providers and certified health plans including disputes regarding the decision of a plan not to include the services of a provider.
(5) Nothing contained in this section shall be construed to require a plan to allow or continue the participation of a provider if the plan is a federally qualified health maintenance organization and the participation of the provider or providers would prevent the health maintenance organization from operating as a health maintenance organization in accordance with 42 U.S.C. Sec. 300e.
NEW SECTION. Sec. 432. CERTIFIED HEALTH PLANS--REGISTRATION REQUIRED--PENALTY. (1) No person or entity in this state may, by mail or otherwise, act or hold himself or herself out to be a certified health plan as defined by section 402 of this act without being registered as a certified health plan with the insurance commissioner.
(2) Anyone violating subsection (1) of this section is liable for a fine not to exceed ten thousand dollars and imprisonment not to exceed six months for each instance of such violation.
NEW SECTION. Sec. 433. ELIGIBILITY REQUIREMENTS FOR CERTIFICATE OF REGISTRATION--APPLICATION REQUIREMENTS. Any corporation, cooperative group, partnership, association, or groups of health professionals licensed by the state of Washington, public hospital district, or public institutions of higher education are entitled to a certificate from the insurance commissioner as a certified health plan if it:
(1) Submits an application for certification as a certified health plan, which shall be verified by an officer or authorized representative of the applicant, being in a form as the insurance commissioner prescribes in consultation with the health services commission;
(2) Meets the minimum net worth requirements set forth in section 438 of this act and the funding reserve requirements set forth in section 439 of this act;
(3) A certified health plan may establish the geographic boundaries in which they will obligate themselves to deliver the services required under the uniform benefits package and include such information in their application for certification, but the commissioner shall review such boundaries and may disapprove, in conformance to guidelines adopted by the commission, those which have been clearly drawn to be exclusionary within a health care catchment area.
NEW SECTION. Sec. 434. ISSUANCE OF CERTIFICATE--GROUNDS FOR REFUSAL. The commissioner shall issue a certificate as a certified health plan to an applicant within one hundred twenty days of such filing unless the commissioner notifies the applicant within such time that such application is not complete and the reasons therefor; or that the commissioner is not satisfied that:
(1) The basic organization document of the applicant permits the applicant to conduct business as a certified health plan;
(2) The applicant has demonstrated the intent and ability to assure that the health services will be provided in a manner to assure both their availability and accessibility;
(3) The organization is financially responsible and may be reasonably expected to meet its obligations to its enrolled participants. In making this determination, the commissioner shall consider among other relevant factors:
(a) Any agreements with a casualty insurer, a government agency, or any other organization paying or insuring payment for health care services;
(b) Any agreements with providers for the provision of health care services; and
(c) Any arrangements for liability and malpractice insurance coverage.
(4) The procedures for offering health care services are reasonable and equitable; and
(5) Procedures have been established to:
(a) Monitor the quality of care provided by the certified health plan including standards and guidelines provided by the health services commission and other appropriate state agencies;
(b) Operate internal peer review mechanisms; and
(c) Resolve complaints and grievances in accordance with section 443 of this act and rules established by the insurance commissioner in consultation with the commission.
NEW SECTION. Sec. 435. PREMIUMS AND ENROLLEE PAYMENT AMOUNTS--FILING OF PREMIUMS AND ENROLLEE PAYMENT AMOUNTS--ADDITIONAL CHARGES PROHIBITED. (1) The insurance commissioner shall verify that the certified health plan and its providers are charging no more than the maximum premiums and enrollee financial participation amounts during the course of financial and market conduct examinations or more frequently if justified in the opinion of the insurance commissioner or upon request by the health services commission.
(2) The certified health plans shall file the premium schedules including employer contributions, enrollee premium sharing, and enrollee point of service cost sharing amounts with the insurance commissioner, within thirty days of establishment by the health services commission.
(3) No certified health plan or its provider may charge any fees, assessments, or charges in addition to the premium amount or in excess of the maximum enrollee financial participation limits established by the health services commission. The certified health plan that directly provides health care services may charge and collect the enrollee point of service cost sharing fees as established in the uniform benefits package or other approved benefit plan.
NEW SECTION. Sec. 436. ANNUAL STATEMENT FILING--CONTENTS--PENALTY FOR FAILURE TO FILE--ACCURACY REQUIRED. (1) Every certified health plan shall annually not later than March 1 of the calendar year, file with the insurance commissioner a statement verified by at least two of its principal officers showing its financial condition as of December 31 of the preceding year.
(2) Such annual report shall be in such form as the insurance commissioner shall prescribe and shall include:
(a) A financial statement of the certified health plan, including its balance sheet and receipts and disbursements for the preceding year, which reflects at a minimum;
(i) All prepayments and other payments received for health care services rendered pursuant to certified health plan benefit packages;
(ii) Expenditures to all categories of health care facilities, providers, and organizations with which the plan has contracted to fulfill obligations to enrolled residents arising out of the uniform benefits package and other approved supplemental benefit agreements, together with all other direct expenses including depreciation, enrollment, and commission; and
(iii) Expenditures for capital improvements, or additions thereto, including but not limited to construction, renovation, or purchase of facilities and capital equipment;
(b) A report of the names and addresses of all officers, directors, or trustees of the certified health plan during the preceding year, and the amount of wages, expense reimbursements, or other payments to such individuals;
(c) The number of residents enrolled and terminated during the report period. Additional information regarding the enrollment and termination pattern for a certified health plan may be required by the commissioner to demonstrate compliance with the open enrollment and free access requirements of chapter . . ., Laws of 1993 (this act). The insurance commissioner shall specify additional information to be reported, which may include but not be limited to age, sex, location, and health status information;
(d) Such other information relating to the performance of the certified health plan or the health care facilities or providers with which it has contracted as reasonably necessary to the proper and effective administration of this chapter in accordance with rules;
(e) Disclosure of any financial interests held by officers and directors in any providers associated with the certified health plan or provider of the certified health plan.
(3) The commissioner may require quarterly reporting of financial information, such information to be furnished in a format prescribed by the commissioner in consultation with the commission.
(4) The commissioner may for good reason allow a reasonable extension of time within which such annual statement shall be filed.
(5) The commissioner may suspend or revoke the certificate of a certified health plan for failing to file its annual statement when due or during any extension of time therefor that the commissioner, for good cause, may grant.
(6) The commissioner shall provide to the health services commission an annual summary report of at least the information required in subsections (2) and (3) of this section.
(7) No person may knowingly file with any public official or knowingly make, publish, or disseminate any financial statement of a certified health plan that does not accurately state the certified health plan's financial condition.
NEW SECTION. Sec. 437. PROVIDER CONTRACTS--ENROLLED RESIDENT'S LIABILITY, COMMISSIONER'S REVIEW. (1) Subject to subsection (2) of this section, every contract between a certified health plan and its providers of health care services shall be in writing and shall set forth that in the event the certified health plan fails to pay for health care services as set forth in the uniform benefits package, the enrollee is not liable to the provider for any sums owed by the certified health plan. Every such contract shall provide that this requirement shall survive termination of the contract.
(2) The provisions of subsection (1) of this section shall not apply to emergency care from a provider who is not a contracting provider with the certified health plan, or to emergent and urgently needed out-of-area services.
(3) The certified health plan shall file the contracts with the insurance commissioner for approval thirty days prior to use.
NEW SECTION. Sec. 438. MINIMUM NET WORTH--REQUIREMENTS TO MAINTAIN--DETERMINATION OF AMOUNT. (1) Every certified health plan must maintain a minimum net worth equal to the greater of:
(a) One million dollars; or
(b) Two percent of annual premium revenues as reported on the most recent annual financial statement filed with the insurance commissioner on the first one hundred fifty million dollars of premium and one percent of annual premium on the premium in excess of one hundred fifty million dollars; or
(c) An amount equal to the sum of three months' uncovered expenditures as reported on the most recent financial statement filed with the commissioner.
(2)(a) In determining net worth, no debt may be considered fully subordinated unless the subordination clause is in a form acceptable to the commissioner. An interest obligation relating to the repayment of a subordinated debt must be similarly subordinated.
(b) The interest expenses relating to the repayment of a fully subordinated debt may not be considered uncovered expenditures.
(c) A subordinated debt incurred by a note meeting the requirements of this section, and otherwise acceptable to the insurance commissioner, may not be considered a liability and shall be recorded as equity.
(3) Every certified health plan shall, in determining liabilities, include an amount estimated in the aggregate to provide for unearned premiums and for the payment of claims for health care expenditures that have been incurred, whether reported or unreported, that are unpaid and for which such organization is or may be liable and to provide for the expense of adjustment or settlement of such claims.
The claims shall be computed in accordance with rules adopted by the insurance commissioner in consultation with the health services commission.
NEW SECTION. Sec. 439. FUNDED RESERVE REQUIREMENTS. (1) Each certified health plan obtaining certification from the insurance commissioner under sections 427 through 444 of this act shall provide and maintain a funded reserve of one hundred fifty thousand dollars. The funded reserve shall be deposited with the insurance commissioner or with any organization acceptable to the commissioner in the form of cash, securities eligible for investment under chapter 48.13 RCW, approved surety bond, or any combination of these, and must be equal to or exceed one hundred fifty thousand dollars. The funded reserve shall be established as an assurance that the uncovered expenditures obligations of the certified health plan to the enrolled Washington residents shall be performed.
(2) All income from reserves on deposit with the commissioner shall belong to the depositing certified health plan and shall be paid to it as it becomes available.
(3) Funded reserves required by this section shall be considered an asset in determining the plan's net worth.
NEW SECTION. Sec. 440. EXAMINATION OF CERTIFIED HEALTH PLANS, POWERS OF COMMISSIONER, DUTIES OF PLANS, INDEPENDENT AUDIT REPORTS. (1) The insurance commissioner shall make an examination of the operations of a certified health plan as often as the commissioner deems it necessary in order to assure the financial security and health and safety of the enrolled residents. The insurance commissioner shall make an examination of a certified health plan not less than once every three calendar years.
(2) Every certified health plan shall submit its books and records relating to its operation for financial condition and market conduct examinations and in every way facilitate them. The quality or appropriateness of health services and systems shall be examined by the department of health except that the insurance commissioner may review such areas to the extent that such items impact the financial condition or the market conduct of the certified health plan. For the purpose of the examinations the insurance commissioner may issue subpoenas, administer oaths, and examine the officers and principals of the certified health plans concerning their business.
(3) The insurance commissioner may elect to accept and rely on audit reports made by an independent certified public accountant for the certified health plan in the course of that part of the insurance commissioner's examination covering the same general subject matter as the audit. The commissioner may incorporate the audit report in his or her report of the examination.
(4) Certified health plans shall be equitably assessed to cover the cost of financial condition and market conduct examinations, the costs of adopting rules, and the costs of enforcing the provisions of this chapter. The assessments shall be levied not less frequently than once every twelve months and shall be in an amount expected to fund the examinations, adoption of rules, and enforcement of the provisions of this chapter including a reasonable margin for cost variations. The assessments shall be established by rules adopted by the commissioner in consultation with the health services commission but may not exceed five and one-half cents per month per resident enrolled in the certified health plan. The minimum assessment shall be one thousand dollars. Assessment receipts shall be deposited in the insurance commissioner's regulatory account in the state treasury and shall be used for the purpose of funding the examinations authorized in subsection (1) of this section. Assessments received shall be used to pay a pro rata share of the costs, including overhead of regulating certified health plans. Amounts remaining in the separate account at the end of a biennium shall be applied to reduce the assessments in succeeding biennia.
NEW SECTION. Sec. 441. INSOLVENCY--COMMISSIONER'S DUTIES, CONTINUATION OF BENEFITS, ALLOCATION OF COVERAGE. (1) In the event of insolvency of a certified health plan and upon order of the commissioner, all other certified health plans shall offer the enrolled Washington residents of the insolvent certified health plan the opportunity to enroll in a solvent certified health plan. Enrollment shall be without prejudice for any preexisting condition and shall be continuous provided the resident enrolls in the new certified health plan within thirty days of the date of insolvency and otherwise complies with the certified health plan's managed care procedures within the thirty-day open enrollment period.
(2) The insurance commissioner, in consultation with the health services commission, shall establish guidelines for the equitable distribution of the insolvent certified health plan's enrollees to the remaining certified health plans. The guidelines may include limitations to enrollment based on financial conditions, provider delivery network, administrative capabilities of the certified health plan, and other reasonable measures of the certified health plan's ability to provide benefits to the newly enrolled residents.
(3) Each certified health plan shall have a plan for handling insolvency that allows for continuation of benefits for the duration of the coverage period for which premiums have been paid and continuation of benefits to enrolled Washington residents who are confined on the date of insolvency in an inpatient facility until their discharge or transfer to a new certified health plan as provided in subsection (1) of this section. The plan shall be approved by the insurance commissioner at the time of certification and shall be submitted for review and approval on an annual basis. The commissioner shall approve such a plan if it includes:
(a) Insurance to cover the expenses to be paid for continued benefits after insolvency;
(b) Provisions in provider contracts that obligate the provider to provide services for the duration of the period after the certified health plan's insolvency for which premium payment has been made and until the enrolled participant is transferred to a new certified health plan in accordance with subsection (1) of this section. Such extension of coverage shall not obligate the provider of service beyond thirty days following the date of insolvency;
(c) Use of the funded reserve requirements as provided under section 439 of this act;
(d) Acceptable letters of credit or approved surety bonds; or
(e) Other arrangements the insurance commissioner and certified health plan mutually agree are appropriate to assure that benefits are continued.
NEW SECTION. Sec. 442. FINANCIAL FAILURE, SUPERVISION OF COMMISSIONER--PRIORITY OF DISTRIBUTION OF ASSETS. (1) Any rehabilitation, liquidation, or conservation of a certified health plan shall be deemed to be the rehabilitation, liquidation, or conservation of an insurance company and shall be conducted under the supervision of the insurance commissioner under the law governing the rehabilitation, liquidation, or conservation of insurance companies. The insurance commissioner may apply for an order directing the insurance commissioner to rehabilitate, liquidate, or conserve a certified health plan upon one or more of the grounds set forth in RCW 48.31.030, 48.31.050, and 48.31.080. Enrolled residents shall have the same priority in the event of liquidation or rehabilitation as the law provides to policyholders of an insurer.
(2) For purposes of determining the priority of distribution of general assets, claims of enrolled residents and their dependents shall have the same priority as established by RCW 48.31.280 for policyholders and their dependents of insurance companies. If an enrolled resident is liable to a provider for services under and covered by a certified health plan, that liability shall have the status of an enrolled resident claim for distribution of general assets.
(3) A provider who is obligated by statute or agreement to hold enrolled residents harmless from liability for services provided under and covered by a certified health plan shall have a priority of distribution of the general assets immediately following that of enrolled residents and enrolled residents' dependents as described in this section, and immediately proceeding the priority of distribution described in RCW 48.31.280(2)(e).
NEW SECTION. Sec. 443. GRIEVANCE PROCEDURE. A certified health plan shall establish and maintain a grievance procedure approved by the commissioner, to provide a reasonable and effective resolution of complaints initiated by enrolled Washington residents concerning any matter relating to the provision of benefits under the uniform benefits package, access to health care services, and quality of services. Each certified health plan shall respond to complaints filed with the insurance commissioner within twenty working days. The insurance commissioner in consultation with the health services commission shall establish standards for grievance procedures and resolution.
NEW SECTION. Sec. 444. EXEMPTION. The provisions of sections 433 through 443 of this act do not apply to any disability insurance company, health care service contractor, or health maintenance organization authorized to do business in Washington.
NEW SECTION. Sec. 445. ENFORCEMENT AUTHORITY OF COMMISSIONER. For the purposes of chapter . . ., Laws of 1993 (this act), the insurance commissioner shall have the same powers and duties of enforcement as are provided in Title 48 RCW.
NEW SECTION. Sec. 446. ANNUAL REPORT BY THE INSURANCE COMMISSIONER TO THE HEALTH SERVICES COMMISSION. Beginning January 1, 1997, the insurance commissioner shall report annually to the health services commission on the compliance of certified health plans and health insurance purchasing cooperatives with the provisions of chapter . . ., Laws of 1993 (this act). The report shall include information on (1) compliance with chapter . . ., Laws of 1993 (this act) open enrollment and antidiscrimination provisions, (2) financial solvency requirements, (3) the mix of enrollee characteristics within and among plans and groups including age, sex, ethnicity, and any easily obtainable information related to medical risk, (4) the geographic distribution of plans and groups, and (5) other information that the commission may request consistent with the goals of chapter . . ., Laws of 1993 (this act).
F. MANAGED COMPETITION AND LIMITED ANTI-TRUST IMMUNITY
NEW SECTION. Sec. 447. MANAGED COMPETITION FINDINGS AND INTENT. (1) The legislature recognizes that competition among health care providers, facilities, payers, and purchasers will yield the best allocation of health care resources, the lowest prices for health care, and the highest quality of health care when there exists a large number of buyers and sellers, easily comparable health care plans and services, minimal barriers to entry and exit into the health care market, and adequate information for buyers and sellers to base purchasing and production decisions. However, the legislature finds that purchasers of health care services and health care coverage do not have adequate information upon which to base purchasing decisions; that health care facilities and providers of health care services face legal and market disincentives to develop economies of scale or to provide the most cost-efficient and efficacious service; that health insurers, contractors, and health maintenance organizations face market disincentives in providing health care coverage to those Washington residents with the most need for health care coverage; and that potential competitors in the provision of health care coverage bear unequal burdens in entering the market for health care coverage.
(2) The legislature therefore intends to exempt from state anti-trust laws, and to provide immunity from federal anti-trust laws through the state action doctrine for activities approved under this chapter that might otherwise be constrained by such laws and intends to displace competition in the health care market: To contain the aggregate cost of health care services; to promote the development of comprehensive, integrated, and cost-effective health care delivery systems through cooperative activities among health care providers and facilities; to promote comparability of health care coverage; to improve the cost-effectiveness in providing health care coverage relative to health promotion, disease prevention, and the amelioration or cure of illness; to assure universal access to a publicly determined, uniform package of health care benefits; and to create reasonable equity in the distribution of funds, treatment, and medical risk among purchasers of health care coverage, payers of health care services, providers of health care services, health care facilities, and Washington residents. To these ends, any lawful action taken pursuant to chapter . . ., Laws of 1993 (this act) by any person or entity created or regulated by chapter . . ., Laws of 1993 (this act) are declared to be taken pursuant to state statute and in furtherance of the public purposes of the state of Washington.
(3) The legislature does not intend and unless explicitly permitted in accordance with section 448 of this act or under rules adopted pursuant to chapter . . ., Laws of 1993 (this act), does not authorize any person or entity to engage in activities or to conspire to engage in activities that would constitute per se violations of state and federal anti-trust laws including but not limited to conspiracies or agreements:
(a) Among competing health care providers not to grant discounts, not to provide services, or to fix the price of their services;
(b) Among certified health plans as to the price or level of reimbursement for health care services;
(c) Among certified health plans to boycott a group or class of health care service providers;
(d) Among purchasers of certified health plan coverage to boycott a particular plan or class of plans;
(e) Among certified health plans to divide the market for health care coverage; or
(f) Among certified health plans and purchasers to attract or discourage enrollment of any Washington resident or groups of residents in a certified health plan based upon the perceived or actual risk of loss in including such resident or group of residents in a certified health plan or purchasing group.
NEW SECTION. Sec. 448. COMPETITIVE OVERSIGHT AND ANTI-TRUST IMMUNITY. (1) A certified health plan, health care facility, health care provider, or other person involved in the development, delivery, or marketing of health care or certified health plans may request, in writing, that the commission obtain an informal opinion from the attorney general as to whether particular conduct is authorized by chapter . . ., Laws of 1993 (this act). The attorney general shall issue such opinion within thirty days of receipt of a written request for an opinion or within thirty days of receipt of any additional information requested by the attorney general necessary for rendering an opinion unless extended by the attorney general for good cause shown. If the attorney general concludes that such conduct is not authorized by chapter . . ., Laws of 1993 (this act), the person or organization making the request may petition the commission for review and approval of such conduct in accordance with subsection (3) of this section.
(2) After obtaining the written opinion of the attorney general and consistent with such opinion, the health services commission:
(a) May authorize conduct by a certified health plan, health care facility, health care provider, or any other person that could tend to lessen competition in the relevant market upon a strong showing that the conduct is likely to achieve the policy goals of chapter . . ., Laws of 1993 (this act) and a more competitive alternative is impractical;
(b) Shall adopt rules governing conduct among providers, health care facilities, and certified health plans including rules governing provider and facility contracts with certified health plans, rules governing the use of "most favored nation" clauses and exclusive dealing clauses in such contracts, and rules providing that certified health plans in rural areas contract with a sufficient number and type of health care providers and facilities to ensure consumer access to local health care services;
(c) Shall adopt rules permitting health care providers within the service area of a plan to collectively negotiate the terms and conditions of contracts with a certified health plan including the ability of providers to meet and communicate for the purposes of these negotiations; and
(d) Shall adopt rules governing cooperative activities among health care facilities and providers.
(3) A certified health plan, health care facility, health care provider, or any other person involved in the development, delivery, and marketing of health services or certified health plans may file a written petition with the commission requesting approval of conduct that could tend to lessen competition in the relevant market. Such petition shall be filed in a form and manner prescribed by rule of the commission.
The commission shall issue a written decision approving or denying a petition filed under this section within ninety days of receipt of a properly completed written petition unless extended by the commission for good cause shown. The decision shall set forth findings as to benefits and disadvantages and conclusions as to whether the benefits outweigh the disadvantages.
(4) In authorizing conduct and adopting rules of conduct under this section, the commission with the advice of the attorney general, shall consider the benefits of such conduct in furthering the goals of health care reform including but not limited to:
(a) Enhancement of the quality of health services to consumers;
(b) Gains in cost efficiency of health services;
(c) Improvements in utilization of health services and equipment;
(d) Avoidance of duplication of health services resources; or
(e) And as to subsections (b) and (c) of this subsection: (i) Facilitates the exchange of information relating to performance expectations; (ii) simplifies the negotiation of delivery arrangements and relationships; and (iii) reduces the transactions costs on the part of certified health plans and providers in negotiating more cost effective delivery arrangements.
These benefits must outweigh disadvantages including and not limited to:
(i) Reduced competition among certified health plans, health care providers, or health care facilities;
(ii) Adverse impact on quality, availability, or price of health care services to consumers; or
(iii) The availability of arrangements less restrictive to competition that achieve the same benefits.
(5) Conduct authorized by the commission shall be deemed taken pursuant to state statute and in the furtherance of the public purposes of the state of Washington.
(6) With the assistance of the attorney general's office, the commission shall actively supervise any conduct authorized under this section to determine whether such conduct or rules permitting certain conduct should be continued and whether a more competitive alternative is practical. The commission shall periodically review petitioned conduct through, at least, annual progress reports from petitioners, annual or more frequent reviews by the commission that evaluate whether the conduct is consistent with the petition, and whether the benefits continue to outweigh any disadvantages. If the commission determines that the likely benefits of any conduct approved through rule, petition, or otherwise by the commission no longer outweigh the disadvantages attributable to potential reduction in competition, the commission shall order a modification or discontinuance of such conduct. Conduct ordered discontinued by the commission shall no longer be deemed to be taken pursuant to state statute and in the furtherance of the public purposes of the state of Washington.
(7) Nothing contained in chapter . . ., Laws of 1993 (this act) is intended to in any way limit the ability of rural hospital districts to enter into cooperative agreements and contracts pursuant to RCW 70.44.450 and chapter 39.34 RCW.
G. THE UNIFORM BENEFITS PACKAGE
NEW SECTION. Sec. 449. UNIFORM BENEFITS PACKAGE DESIGN. (1) The commission shall define the uniform benefits package, which shall include those health services that, consistent with the goals and intent of chapter . . ., Laws of 1993 (this act), are effective and necessary on a societal basis for the maintenance of the health of citizens of the state, weighed against the need to control state health services expenditures.
(2) The schedule of covered health services shall emphasize proven preventive and primary health care and shall be composed of the following essential health services: (a) Primary and specialty health services; (b) inpatient and outpatient hospital services; (c) prescription drugs and medications; (d) reproductive services; (e) services necessary for maternity and well-child care, including preventive dental services for children; and (f) case-managed chemical dependency, mental health, short-term skilled nursing facility, home health, and hospice services, to the extent that such services reduce inappropriate utilization of more intensive or less efficacious medical services. The commission shall determine the specific schedule of health services within the uniform benefits package, including limitations on scope and duration of services. The schedule shall be the benefit and actuarial equivalent of the schedule of benefits offered by the basic health plan on January 1, 1993, including any additions that may result from the inclusion of the services listed in (c) through (f) of this subsection. The commission shall consider the recommendations of health services effectiveness panels established pursuant to section 404 of this act in defining the uniform benefits package.
(3) The uniform benefits package shall not limit coverage for preexisting or prior conditions, except that the commission shall establish exclusions for preexisting or prior conditions to the extent necessary to prevent residents from waiting until health services are needed before enrolling in a certified health plan.
(4) The commission shall establish enrollee point of service cost-sharing for nonpreventive health services, related to enrollee household income, such that financial considerations are not a barrier to access for low-income persons, but that, for those of means, the uniform benefits package provides for moderate point of service cost-sharing. All point of service cost-sharing and cost control requirements shall apply uniformly to all health care providers providing substantially similar uniform benefits package services. The schedule shall provide for an alternate and lower schedule of cost-sharing applicable to enrollees with household income below the federal poverty level.
(5) The commission shall adopt rules related to coordination of benefits and premium payments. The rules shall not have the effect of eliminating enrollee financial participation. The commission shall endeavor to assure an equitable distribution, among both employers and employees, of the costs of coverage for those households composed of more than one member in the work force.
(6) In determining the uniform benefits package, the commission shall endeavor to seek the opinions of and information from the public. The commission shall consider the results of official public health assessment and policy development activities including recommendations of the department of health in discharging its responsibilities under this section.
(7) The commission shall submit the following to the legislature by December 1, 1994, and by December 1 of the year preceding any year in which the commission proposes to significantly modify the uniform benefits package: (a) The uniform benefits package; and (b) an independent actuarial analysis of the cost of the proposed package, giving consideration to the factors considered under section 406(6) of this act. The commission shall not modify the services included in the uniform benefits package before January 1, 1999.
NEW SECTION. Sec. 450. SMALL BUSINESS ECONOMIC IMPACT STATEMENT. (1) In conjunction with submission of the uniform benefits package as provided in section 449(7) of this act, the commission also shall submit a small business economic impact statement, prepared in consultation with the small business advisory committee. The impact statement shall address the economic impact on businesses with twenty-five or fewer full-time equivalent employees of participating in the cost of the uniform benefits package for their employees and employees' dependents. As an aid in preparing the small business economic impact statement, the commission shall conduct a survey of a statistically valid sample of small businesses.
(2) If the small business economic impact statement indicates a need to address the economic consequences of mandating employer participation in the cost of uniform benefits package coverage for employees and their dependents, the commission shall submit proposed strategies to address such consequences. Strategies may include: The level of employer participation in uniform benefits package costs; coverage of dependents; application of the uniform benefits package as the minimum benefits package offered to employees or dependents; and any other strategies deemed appropriate by the commission.
NEW SECTION. Sec. 451. HOUSEHOLD INCOME ANALYSIS. In conjunction with submission of the uniform benefits package as provided in section 449(7) of this act, the commission shall submit an analysis of the impact of employee premium contributions on individuals with household income of less than two hundred percent of the federal poverty level. The analysis shall include estimates of the cost of varying levels of premium subsidies for these individuals and their families.
NEW SECTION. Sec. 452. CERTIFIED HEALTH PLAN BENEFIT PACKAGES--OFFERING, FILING, AND APPROVAL OF FORMS. No uniform benefits package or supplemental benefits may be offered, delivered, or issued for delivery to any person in this state unless it otherwise complies with chapter . . ., Laws of 1993 (this act), and complies with the following:
(1) All certified health plan forms for uniform and supplemental benefits issued by the plan to enrollees and such other marketing documents purporting to describe the plan's benefits shall comply with the minimum standards the commissioner deems reasonable and necessary to carry out the purposes and provisions of this chapter and consistent with health services commission standards. The plan's forms and documents shall fully inform enrollees of the health services to which they are entitled, and shall fully disclose any limitations, exclusions, rights, responsibilities, and duties required of either the enrollee or the certified health plan. No form or document may be issued, delivered, or issued for delivery unless it has been filed with and approved by the commissioner.
(2) Every form or document filing containing a certification, in a manner approved by the commissioner, by either the chief executive officer of the plan or by an actuary who is a member of the American academy of actuaries, attesting that the filing complies with Title 48 RCW, Title 284 WAC, and this chapter, may be used by such certified health plan immediately after filing with the commissioner. The commissioner may order a plan to cease using a certified form or document upon the grounds set forth in subsection (6) of this section.
(3) Every filing that does not contain a certification pursuant to subsection (2) of this section shall be made not less than thirty days in advance of any such issuance, delivery, or use. At the expiration of such thirty days the form or document filed shall be deemed approved unless affirmatively approved or disapproved by the commissioner within the thirty-day period. The commissioner may extend by not more than an additional fifteen days the period within which the commissioner may review such filing, by notifying the plan of the extension before expiration of the initial thirty-day period. At the expiration of any extension period and in the absence of prior affirmative approval or disapproval, any such form or document shall be deemed approved. The commissioner may withdraw approval at any time for cause. By approval of any filing for immediate use, the commissioner may waive any unexpired portion of the initial thirty-day waiting period.
(4) Whenever the commissioner disapproves a filing or withdraws a previous approval, the commissioner shall state the grounds for disapproval.
(5) The commissioner may exempt from the requirements of this section any plan document or form that, in the commissioner's opinion, may not practicably be applied to, or the filing and approval of which are, in the commissioner's opinion, not desirable or necessary for the protection of the public.
(6) The commissioner shall disapprove any form or document or shall withdraw any previous approval, only:
(a) If it is in any respect in violation of or does not comply with Title 48 RCW, Title 284 WAC, and this chapter, or any applicable order of the commissioner;
(b) If it does not comply with any controlling filing previously made and approved;
(c) If it contains or incorporates by reference any inconsistent, ambiguous, or misleading clauses, or exceptions and conditions that unreasonably or deceptively affect the health services purported to be offered or provided;
(d) If it has any title, heading, or other indication of its provisions that is misleading;
(e) If purchase of health services under the form or document is being solicited by deceptive advertising; or
(f) If the health service benefits provided in the form or document are unreasonable in relation to the premium charged.
NEW SECTION. Sec. 453. UNIFORM AND SUPPLEMENTAL BENEFITS--RATES--FILING AND APPROVAL. (1) Premium rates for uniform benefits package and supplemental benefits shall not be excessive or inadequate, and shall not discriminate in a manner prohibited by section 428(3) of this act. Premium rates, enrollee point of service cost-sharing, or maximum enrollee financial participation amounts for a uniform benefits package may not exceed the limits established by the health services commission in accordance with section 406 of this act. Premium rates for uniform benefits package and supplemental benefits shall be developed on a community-rated basis as determined by the health services commission.
(2) Prior to using, every certified health plan shall file with the commissioner its enrollee point of service, cost-sharing amounts, enrollee financial participation amounts, rates, its rating plan, and any other information used to determine the specific premium to be charged any enrollee and every modification of any of the foregoing.
(3) Every such filing shall indicate the type and extent of the health services contemplated and must be accompanied by sufficient information to permit the commissioner to determine whether it meets the requirements of this chapter. A plan shall offer in support of any filing:
(a) Any historical data and actuarial projections used to establish the rate filed;
(b) An exhibit detailing the major elements of operating expense for the types of health services affected by the filing;
(c) An explanation of how investment income has been taken into account in the proposed rates;
(d) Any other information that the plan deems relevant; and
(e) Any other information that the commissioner requires by rule.
(4) If a plan has insufficient loss experience to support its proposed rates, it may submit loss experience for similar exposures of other plans within the state.
(5) Every filing shall state its proposed effective date.
(6) Actuarial formulas, statistics, and assumptions submitted in support of a rate or form filing by a plan or submitted to the commissioner at the commissioner's request shall be withheld from public inspection in order to preserve trade secrets or prevent unfair competition.
(7) No plan may make or issue a benefits package except in accordance with its filing then in effect.
(8) The commissioner shall review a filing as soon as reasonably possible after made, to determine whether it meets the requirements of this section.
(9)(a) No filing may become effective within thirty days after the date of filing with the commissioner, which period may be extended by the commissioner for an additional period not to exceed fifteen days if the commissioner gives notice within such waiting period to the plan that the commissioner needs additional time to consider the filing.
(b) A filing shall be deemed to meet the requirements of this section unless disapproved by the commissioner within the waiting period or any extension period.
(c) If within the waiting or any extension period, the commissioner finds that a filing does not meet the requirements of this section, the commissioner shall disapprove the filing, shall notify the plan of the grounds for disapproval, and shall prohibit the use of the disapproved filing.
(10) If at any time after the applicable review period provided in this section, the commissioner finds that a filing does not meet the requirements of this section, the commissioner shall, after notice and hearing, issue an order specifying in what respect the commissioner finds that such filing fails to meet the requirements of this section, and stating when, within a reasonable period thereafter, the filings shall be deemed no longer effective.
The order shall not affect any benefits package made or issued prior to the expiration of the period set forth in the order.
NEW SECTION. Sec. 454. The legislature may disapprove of the uniform benefits package developed under section 449 of this act and medical risk adjustment mechanisms developed under section 406(7) of this act by an act of law at any time prior to the thirtieth day of the following regular legislative session. If such disapproval action is taken, the commission shall resubmit a modified package to the legislature within fifteen days of the disapproval. If the legislature does not disapprove or modify the package by an act of law by the end of that regular session, the package is deemed approved.
NEW SECTION. Sec. 455. SUPPLEMENTAL AND ADDITIONAL BENEFITS NEGOTIATION. (1) Nothing in chapter . . ., Laws of 1993 (this act) shall preclude insurers, health care service contractors, health maintenance organizations, or certified health plans from insuring, providing, or contracting for benefits not included in the uniform benefits package or in supplemental benefits.
(2) Nothing in chapter . . ., Laws of 1993 (this act) shall restrict the right of an employer to offer, an employee representative to negotiate for, or an individual to purchase supplemental or additional benefits not included in the uniform benefits package.
(3) Nothing in chapter . . ., Laws of 1993 (this act) shall restrict the right of an employer to offer or an employee representative to negotiate for payment of up to one hundred percent of the premium of the lowest priced uniform benefits package available in the geographic area where the employer is located.
(4) Nothing in chapter . . ., Laws of 1993 (this act) shall be construed to affect the collective bargaining rights of employee organizations to the extent that federal law specifically restricts the ability of states to limit collective bargaining rights of employee organizations.
(5) After July 1, 1999, no property or casualty insurance policy issued in this state may provide first-party coverage for health services to the extent that such services are provided under a uniform benefits package covering the resident to whom such property or casualty insurance policy is issued.
NEW SECTION. Sec. 456. CONSCIENCE OR RELIGION. (1) No certified health plan or health care provider may be required by law or contract in any circumstances to participate in the provision of any uniform benefit if they object to so doing for reason of conscience or religion. No person may be discriminated against in employment or professional privileges because of such objection.
(2) The provisions of this section are not intended to result in an enrollee being denied timely access to any service included in the uniform benefits package. Each certified health plan shall:
(a) Provide written notice to certified health plan enrollees, upon enrollment with the plan and upon enrollee request thereafter, listing, by provider, services that any provider refuses to perform for reason of conscience or religion;
(b) Develop written information describing how an enrollee may directly access, in an expeditious manner, services that a provider refuses to perform; and
(c) Ensure that enrollees refused services under this section have prompt access to the information developed pursuant to (b) of this subsection.
NEW SECTION. Sec. 457. LONG-TERM CARE INTEGRATION PLAN. (1) To meet the health needs of the residents of Washington state, it is critical to finance and provide long-term care and support services through an integrated, comprehensive system that promotes human dignity and recognizes the individuality of all functionally disabled persons. This system shall be available, accessible, and responsive to all residents based upon an assessment of their functional disabilities. The governor and the legislature recognize that families, volunteers, and community organizations are essential for the delivery of effective and efficient long-term care and support services, and that this private and public service infrastructure should be supported and strengthened. Further, it is important to provide benefits without requiring family or program beneficiary impoverishment for service eligibility.
(2) To realize the need for a strong long-term care system and to carry out the November 30, 1992, final recommendations of the Washington health care cost control and access commission, established under House Concurrent Resolution No. 4443 adopted by the legislature in 1990, related to long-term care, the commission shall:
(a) Engage in a planning process, in conjunction with an advisory committee appointed for this purpose, for the inclusion of long-term care services in the uniform benefits package established under section 449 of this act by July 1999;
(b) Include in its planning process consideration of the scope of services to be covered, the cost of and financing of such coverage, the means through which existing long-term care programs and delivery systems can be coordinated and integrated, and the means through which family members can be supported in their role as informal caregivers for their parents, spouses, or other relatives.
(3) The commission shall submit recommendations concerning any necessary statutory changes or modifications of public policy to the governor and the legislature by January 1, 1995.
(4) The departments of health, retirement systems, revenue, social and health services, and veterans' affairs, the offices of financial management, insurance commissioner, and state actuary, along with the health care authority, shall participate in the review of the long-term care needs enumerated in this section and provide necessary supporting documentation and staff expertise as requested by the commission.
(5) The commission shall include in its planning process, the development of two social health maintenance organization long-term care pilot projects. The two pilot projects shall be referred to as the Washington life care pilot projects. Each life care pilot program shall be a single-entry system administered by an individual organization that is responsible for bringing together a full range of medical and long-term care services. The commission, in coordination with the appropriate agencies and departments, shall establish a Washington life care benefits package that shall include the uniform benefits package established in chapter . . ., Laws of 1993 (this act) and long-term care services. The Washington life care benefits package shall include, but not be limited to, the following long-term care services: Case management, intake and assessment, nursing home care, adult family home care, home health and home health aide care, hospice, chore services/homemaker/personal care, adult day care, respite care, and appropriate social services. The pilot project shall develop assessment and case management protocol that emphasize home and community-based care long-term care options.
(a) In designing the pilot projects, the commission shall address the following issues: Costs for the long-term care benefits, a projected case-mix based upon disability, the required federal waiver package, reimbursement, capitation methodology, marketing and enrollment, management information systems, identification of the most appropriate case management models, provider contracts, and the preferred organizational design that will serve as a functioning model for efficiently and effectively transitioning long-term care services into the uniform benefits package established in chapter . . ., Laws of 1993 (this act). The commission shall also be responsible for establishing the size of the two membership pools.
(b) Each program shall enroll applicants based on their level of functional disability and personal care needs. The distribution of these functional level categories and ethnicity within the enrolled program population shall be representative of their distribution within the community, using the best available data to estimate the community distributions.
(c) The two sites selected for the Washington life care pilot program shall be drawn from the largest urban areas and include one site in the eastern part of the state and one site in the western part of the state. The two organizations selected to manage and coordinate the life care services shall have the proven ability to provide ambulatory care, personal care/chore services, dental care, case management and referral services, must be accredited and licensed to provide long-term care for home health services, and may be licensed to provide nursing home care.
(d) The report on the development and establishment date of the two social health maintenance organizations shall be submitted to the governor and appropriate committees of the legislature by September 16, 1994. If the necessary federal waivers cannot be secured by January 1, 1995, the commission may elect to not establish the two pilot programs.
NEW SECTION. Sec. 458. WASHINGTON LONG-TERM CARE PARTNERSHIP. The department of social and health services shall from July 1, 1993, to July 1, 1998, coordinate a pilot program entitled the Washington long-term care partnership, whereby private insurance and medicaid funds shall be used to finance long-term care. This program must allow for the exclusion of an individual's assets, as approved by the federal health care financing administration, in a determination of the individual's eligibility for medicaid; the amount of any medicaid payment; or any subsequent recovery by the state for a payment for medicaid services to the extent such assets are protected by a long-term care insurance policy or contract governed by chapter 48.84 RCW and meeting the criteria prescribed in this chapter.
NEW SECTION. Sec. 459. WASHINGTON LONG-TERM CARE PARTNERSHIP. The department of social and health services shall seek approval and a waiver of appropriate federal medicaid regulations to allow the protection of an individual's assets as provided in this chapter. The department shall adopt all rules necessary to implement the Washington long-term care partnership program, which rules shall permit the exclusion of an individual's assets in a determination of medicaid eligibility to the extent that private long-term care insurance provides payment or benefits for services that medicaid would approve or cover for medicaid recipients.
NEW SECTION. Sec. 460. WASHINGTON LONG-TERM CARE PARTNERSHIP. (1) The insurance commissioner shall adopt rules defining the criteria that long-term care insurance policies must meet to satisfy the requirements of this chapter. The rules shall provide that all long-term care insurance policies purchased for the purposes of this chapter:
(a) Be guaranteed renewable;
(b) Provide coverage for home and community-based services and nursing home care;
(c) Provide automatic inflation protection or similar coverage to protect the policyholder from future increases in the cost of long-term care;
(d) Not require prior hospitalization or confinement in a nursing home as a prerequisite to receiving long-term care benefits; and
(e) Contain at least a six-month grace period that permits reinstatement of the policy or contract retroactive to the date of termination if the policy or contract holder's nonpayment of premiums arose as a result of a cognitive impairment suffered by the policy or contract holder as certified by a physician.
(2) Insurers offering long-term care policies for the purposes of this chapter shall demonstrate to the satisfaction of the insurance commissioner that they:
(a) Have procedures to provide notice to each purchaser of the long-term care consumer education program;
(b) Offer case management services;
(c) Have procedures that provide for the keeping of individual policy records and procedures for the explanation of coverage and benefits identifying those payments or services available under the policy that meet the purposes of this chapter;
(d) Agree to provide the insurance commissioner, on or before September 1 of each year, an annual report containing the following information:
(i) The number of policies issued and of the policies issued, that number sorted by issue age;
(ii) To the extent possible, the financial circumstance of the individuals covered by such policies;
(iii) The total number of claims paid; and
(iv) Of the number of claims paid, the number paid for nursing home care, for home care services, and community-based services.
NEW SECTION. Sec. 461. WASHINGTON LONG-TERM CARE PARTNERSHIP. The insurance commissioner, in conjunction with the department of social and health services, shall develop a consumer education program designed to educate consumers as to the need for long-term care, methods for financing long-term care, the availability of long-term care insurance, and the availability and eligibility requirements of the asset protection program provided under this chapter.
NEW SECTION. Sec. 462. WASHINGTON LONG-TERM CARE PARTNERSHIP. By January 1 of each year, the insurance commissioner, in conjunction with the department of social and health services, shall report to the legislature on the progress of the asset protection program. The report shall include:
(1) The success of the agencies in implementing the program;
(2) The number of insurers offering long-term care policies meeting the criteria for asset protection;
(3) The number, age, and financial circumstances of individuals purchasing long-term care policies meeting the criteria for asset protection;
(4) The number of individuals seeking consumer information services;
(5) The extent and type of benefits paid by insurers offering policies meeting the criteria for asset protection;
(6) Estimates of the impact of the program on present and future medicaid expenditures;
(7) The cost-effectiveness of the program; and
(8) A determination regarding the appropriateness of continuing the program.
H. STATE RESIDENT AND EMPLOYER PARTICIPATION
NEW SECTION. Sec. 463. INDIVIDUAL PARTICIPATION. (1) All residents of the state of Washington are required to purchase a uniform benefits package from a certified health plan no later than July 1, 1998. This participation requirement shall be waived if imposition of the requirement would constitute a violation of the freedom of religion provisions set forth in the First Amendment, United States Constitution or Article I, section 11 of the state Constitution. Residents of the state of Washington who work in another state for an out-of-state employer shall be deemed to have satisfied the requirements of this section if they receive health insurance coverage through such employer.
(2) The commission shall monitor the enrollment of individuals into certified health plans and shall make public periodic reports concerning the number of persons enrolled and not enrolled, the reasons why individuals are not enrolled, recommendations to reduce the number of persons not enrolled, and recommendations regarding enforcement of this provision.
NEW SECTION. Sec. 464. EMPLOYER PARTICIPATION. (1) The legislature recognizes that small businesses play an essential and increasingly important role in the state's economy. The legislature further recognizes that many of the state's small business owners provide health insurance to their employees through small group policies at a cost that directly affects their profitability. Other small business owners are prevented from providing health benefits to their employees by the lack of access to affordable health insurance coverage. The legislature intends that the provisions of chapter . . ., Laws of 1993 (this act) make health insurance more available and affordable to small businesses in Washington state through strong cost control mechanisms and the option to purchase health benefits through the basic health plan, the Washington state group purchasing association, and health insurance purchasing cooperatives.
(2) On July 1, 1995, every employer employing more than five hundred qualified employees shall:
(a) Offer a choice of the uniform benefits package as provided by at least three available certified health plans, one of which shall be the lowest cost available package within their geographic region, and for employers who have established a registered employer health plan, one of which may be its own registered employer health plan, to all qualified employees. The employer shall be required to pay no less than fifty percent of the premium cost of the lowest cost available package within their geographic region. On July 1, 1996, all dependents of qualified employees of these firms shall be offered a choice of packages as provided in this section with the employer paying no less than fifty percent of the premium of the lowest cost package within their geographic region.
(b) For employees who work fewer than thirty hours during a week or one hundred twenty hours during a calendar month, three hundred sixty hours during a calendar quarter or one thousand four hundred forty hours during a calendar year, and their dependents, pay, for the period of time adopted by the employer under this subsection, the amount resulting from application of the following formula: The number of hours worked by the employee in a month is multiplied by the amount of a qualified employee's premium, and that amount is then divided by one hundred twenty.
(c) If an employee under (b) of this subsection is the dependent of a qualified employee, and is therefore covered as a dependent by the qualified employee's employer, then the employer of the employee under (b) of this subsection shall not be required to participate in the cost of the uniform benefits package for that employee.
(d) If an employee working on a seasonal basis is a qualified employee of another employer, and therefore has uniform benefits package coverage through that primary employer, then the seasonal employer of the employee shall not be required to participate in the cost of the uniform benefits package for that employee.
(3) By July 1, 1996, every employer employing more than one hundred qualified employees shall:
(a) Offer a choice of the uniform benefits package as provided by at least three available certified health plans, one of which shall be the lowest cost available package within their geographic region, to all qualified employees. The employer shall be required to pay no less than fifty percent of the premium cost of the lowest cost available package within their geographic region. On July 1, 1997, all dependents of qualified employees in these firms shall be offered a choice of packages as provided in this section with the employer paying no less than fifty percent of the premium of the lowest cost package within their geographic region.
(b) For employees who work fewer than thirty hours during a week or one hundred twenty hours during a calendar month, three hundred sixty hours during a calendar quarter or one thousand four hundred forty hours during a calendar year, and their dependents, pay, for the period of time adopted by the employer under this subsection, the amount resulting from application of the following formula: The number of hours worked by the employee in a month is multiplied by the amount of a qualified employee's premium, and that amount is then divided by one hundred twenty.
(c) If an employee under (b) of this subsection is the dependent of a qualified employee, and is therefore covered as a dependent by the qualified employee's employer, then the employer of the employee under (b) of this subsection shall not be required to participate in the cost of the uniform benefits package for that employee.
(d) If an employee working on a seasonal basis is a qualified employee of another employer, and therefore has uniform benefits package coverage through that primary employer, then the seasonal employer of the employee shall not be required to participate in the cost of the uniform benefits package for that employee.
(4) By July 1, 1997, every employer shall:
(a) Offer a choice of the uniform benefits package as provided by at least three available certified health plans, one of which shall be the lowest cost available package within their geographic region, to all qualified employees. The employer shall be required to pay no less than fifty percent of the premium cost of the lowest cost available package within their geographic region. On July 1, 1998, all dependents of qualified employees in all firms shall be offered a choice of packages as provided in this section with the employer paying no less than fifty percent of the premium of the lowest cost package within their geographic region.
(b) For employees who work fewer than thirty hours during a week or one hundred twenty hours during a calendar month, three hundred sixty hours during a calendar quarter or one thousand four hundred forty hours during a calendar year, and their dependents, pay, for the period of time adopted by the employer under this subsection, the amount resulting from application of the following formula: The number of hours worked by the employee in a month is multiplied by the amount of a qualified employee's premium, and that amount is then divided by one hundred twenty.
(c) If an employee under (b) of this subsection is the dependent of a qualified employee, and is therefore covered as a dependent by the qualified employee's employer, then the employer of the employee under (b) of this subsection shall not be required to participate in the cost of the uniform benefits package for that employee.
(d) If an employee working on a seasonal basis is a qualified employee of another employer, and therefore has uniform benefits package coverage through that primary employer, then the seasonal employer of the employee shall not be required to participate in the cost of the uniform benefits package for that employee.
(5) This employer participation requirement shall be waived if imposition of the requirement would constitute a violation of the freedom of religion provisions of the First Amendment of the United States Constitution or Article I, section 11, of the state Constitution. In such case the employer shall, pursuant to commission rules, set aside an amount equal to the applicable employer contribution level in a manner that would permit his or her employee to fully comply with the requirements of this chapter.
(6) In lieu of offering the uniform benefits package to employees and their dependents through direct contracts with certified health plans, an employer may combine the employer contribution with that of the employee's contribution and enroll in the basic health plan as provided in chapter 70.47 RCW or a health insurance purchasing cooperative established under sections 427 and 428 of this act.
NEW SECTION. Sec. 465. DEPOSITORY. (1) The health care authority shall establish a depository where payments under section 464 of this act can be made and held in safekeeping for the benefit of employees working less than the number of hours worked by a qualified employee.
(2) The authority shall adopt appropriate rules for operation of the depository, in consultation with representatives of employees and employers, especially those that are seasonal or employ large numbers of part-time workers. The rules shall address the means through which payments will be properly deposited to the credit of employees and the means through which employees can access payments made on their behalf. On and after July 1, 1995, payments deposited by employers on behalf of employees may be used by employees only for purchase of the uniform benefits package. Prior to July 1, 1995, payments may be used for purchase of any health insurance coverage.
NEW SECTION. Sec. 466. SMALL FIRM FINANCIAL ASSISTANCE. (1) Beginning July 1, 1997, firms with fewer than twenty-five workers that face barriers to providing health insurance for their employees may, upon application, be eligible to receive financial assistance with funds set aside from the health services account. Firms with the following characteristics shall be given preference in the distribution of funds: (a) New firms, (b) employers with low average wages, (c) employers with low profits, and (d) firms in economically distressed areas.
(2) All employers in existence on or before July 1, 1997, who meet the criteria set forth in this section, and rules adopted under this section, may apply to the health services commission for assistance. Such employers may not receive premium assistance beyond July 1, 2001. New employers, who come into existence after July 1, 1997, may apply for and receive premium assistance for a limited period of time, as determined by the commission.
(3) The total funds available for small business assistance shall not exceed one hundred fifty million dollars for the biennium beginning July 1, 1997. Thereafter, the amount of total funds available for premium assistance shall be determined by the office of financial management, based on a forecast of inflation, employment, and the number of eligible firms.
(4) By July 1, 1997, the health services commission, with assistance from the small business advisory committee established in section 404 of this act, shall develop specific definitions, rules, and procedures governing all aspects of the small business assistance program, including application procedures, thresholds regarding firm size, wages, profits, and age of firm, and rules governing duration of assistance.
(5) Final determination of the amount of the premium assistance to be dispensed to an employer shall be made by the commission based on rules, definitions, and procedures developed under this section. If total claims for assistance are above the amount of total funds available for such purposes, the commission shall have the authority to prorate employer claims so that the amount of available funds is not exceeded.
(6) The office of financial management, in consultation with the commission, shall establish appropriate criteria for monitoring and evaluating the economic and labor market impacts of the premium assistance program and report its findings to the commission annually through July 1, 2001.
I. PUBLIC HEALTH SERVICES IMPROVEMENT PLAN
NEW SECTION. Sec. 467. A new section is added to chapter 43.70 RCW to read as follows:
PUBLIC HEALTH SERVICES IMPROVEMENT PLAN. (1) The legislature finds that the public health functions of community assessment, policy development, and assurance of service delivery are essential elements in achieving the objectives of health reform in Washington state. The legislature further finds that the population-based services provided by state and local health departments are cost-effective and are a critical strategy for the long-term containment of health care costs. The legislature further finds that the public health system in the state lacks the capacity to fulfill these functions consistent with the needs of a reformed health care system.
(2) The department of health shall develop, in consultation with local health departments and districts, the state board of health, the health services commission, area Indian health service, and other state agencies, health services providers, and citizens concerned about public health, a public health services improvement plan. The plan shall provide a detailed accounting of deficits in the core functions of assessment, policy development, assurance of the current public health system, how additional public health funding would be used, and describe the benefits expected from expanded expenditures.
(3) The plan shall include:
(a) Definition of minimum standards for public health protection through assessment, policy development, and assurances;
(i) Enumeration of communities not meeting those standards;
(ii) A budget and staffing plan for bringing all communities up to minimum standards;
(iii) An analysis of the costs and benefits expected from adopting minimum public health standards for assessment, policy development, and assurances;
(b) Recommended strategies and a schedule for improving public health programs throughout the state, including:
(i) Strategies for transferring personal health care services from the public health system, into the uniform benefits package where feasible; and
(ii) Timing of increased funding for public health services linked to specific objectives for improving public health; and
(c) A recommended level of dedicated funding for public health services to be expressed in terms of a percentage of total health service expenditures in the state or a set per person amount; such recommendation shall also include methods to ensure that such funding does not supplant existing federal, state, and local funds received by local health departments, and methods of distributing funds among local health departments.
(4) The department shall coordinate this planning process with the study activities required in section 258 of this act.
(5) By March 1, 1994, the department shall provide initial recommendations of the public health services improvement plan to the legislature regarding minimum public health standards, and public health programs needed to address urgent needs, such as those cited in subsection (7) of this section.
(6) By December 1, 1994, the department shall present the public health services improvement plan to the legislature, with specific recommendations for each element of the plan to be implemented over the period from 1995 through 1997.
(7) Thereafter, the department shall update the public health services improvement plan for presentation to the legislature prior to the beginning of a new biennium.
(8) Among the specific population-based public health activities to be considered in the public health services improvement plan are: Health data assessment and chronic and infectious disease surveillance; rapid response to outbreaks of communicable disease; efforts to prevent and control specific communicable diseases, such as tuberculosis and acquired immune deficiency syndrome; health education to promote healthy behaviors and to reduce the prevalence of chronic disease, such as those linked to the use of tobacco; access to primary care in coordination with existing community and migrant health clinics and other not for profit health care organizations; programs to ensure children are born as healthy as possible and they receive immunizations and adequate nutrition; efforts to prevent intentional and unintentional injury; programs to ensure the safety of drinking water and food supplies; poison control; trauma services; and other activities that have the potential to improve the health of the population or special populations and reduce the need for or cost of health services.
NEW SECTION. Sec. 468. A new section is added to chapter 41.05 RCW to read as follows:
AMERICAN INDIAN HEALTH CARE DELIVERY PLAN. Consistent with funds appropriated specifically for this purpose, the authority shall establish in conjunction with the area Indian health services system and providers an advisory group comprised of Indian and non-Indian health care facilities and providers to formulate an American Indian health care delivery plan. The plan shall include:
(1) Recommendations to providers and facilities methods for coordinating and joint venturing with the Indian health services for service delivery;
(2) Methods to improve American Indian-specific health programming; and
(3) Creation of co-funding recommendations and opportunities for the unmet health services programming needs of American Indians.
J. HEALTH ACCOUNTS
NEW SECTION. Sec. 469. HEALTH SERVICES ACCOUNT. The health services account is created in the state treasury. Moneys in the account may be spent only after appropriation. Moneys in the account may be expended only for maintaining and expanding health services access for low-income residents, maintaining and expanding the public health system, maintaining and improving the capacity of the health care system, containing health care costs, and the regulation, planning, and administering of the health care system.
NEW SECTION. Sec. 470. PUBLIC HEALTH SERVICES ACCOUNT. The public health services account is created in the state treasury. Moneys in the account may be spent only after appropriation. Moneys in the account may be expended only for maintaining and improving the health of Washington residents through the public health system. For purposes of this section, the public health system shall consist of the state board of health, the state department of health, and local health departments and districts. Funds appropriated from this account to local health departments and districts shall be distributed ratably based on county population as last determined by the office of financial management.
NEW SECTION. Sec. 471. HEALTH SYSTEM CAPACITY ACCOUNT. The health system capacity account is created in the state treasury. Moneys in the account may be spent only after appropriation. Moneys in the account may be expended for the following purposes: Health data systems; health systems and public health research; health system regulation; health system planning, development, and administration; and improving the supply and geographic distribution of primary health service providers.
NEW SECTION. Sec. 472. PERSONAL HEALTH SERVICES ACCOUNT. The personal health services account is created in the treasury. Moneys in the account may be spent only after appropriation. Moneys in the account may be expended for the support of subsidized personal health services for low-income Washington residents.
Sec. 473. RCW 43.84.092 and 1993 c 4 s 9 are each amended to read as follows:
EARNINGS OF INVESTMENTS. (1) All earnings of investments of surplus balances in the state treasury shall be deposited to the treasury income account, which account is hereby established in the state treasury.
(2) Monthly, the state treasurer shall distribute the earnings credited to the treasury income account. The state treasurer shall credit the general fund with all the earnings credited to the treasury income account except:
(a) The following accounts and funds shall receive their proportionate share of earnings based upon each account's and fund's average daily balance for the period: The capitol building construction account, the Cedar River channel construction and operation account, the Central Washington University capital projects account, the charitable, educational, penal and reformatory institutions account, the common school construction fund, the county criminal justice assistance account, the county sales and use tax equalization account, the data processing building construction account, the deferred compensation administrative account, the deferred compensation principal account, the department of retirement systems expense account, the Eastern Washington University capital projects account, the federal forest revolving account, the health services account, the industrial insurance premium refund account, the judges' retirement account, the judicial retirement administrative account, the judicial retirement principal account, the local leasehold excise tax account, the local sales and use tax account, the medical aid account, the municipal criminal justice assistance account, the municipal sales and use tax equalization account, the natural resources deposit account, the perpetual surveillance and maintenance account, the public employees' retirement system plan I account, the public employees' retirement system plan II account, the Puyallup tribal settlement account, the resource management cost account, the site closure account, the special wildlife account, the state employees' insurance account, the state employees' insurance reserve account, the state investment board expense account, the state investment board commingled trust fund accounts, the supplemental pension account, the teachers' retirement system plan I account, the teachers' retirement system plan II account, the University of Washington bond retirement fund, the University of Washington building account, the volunteer fire fighters' relief and pension principal account, the volunteer fire fighters' relief and pension administrative account, the Washington judicial retirement system account, the Washington law enforcement officers' and fire fighters' system plan I retirement account, the Washington law enforcement officers' and fire fighters' system plan II retirement account, the Washington state patrol retirement account, the Washington State University building account, the Washington State University bond retirement fund, and the Western Washington University capital projects account. Earnings derived from investing balances of the agricultural permanent fund, the normal school permanent fund, the permanent common school fund, the scientific permanent fund, and the state university permanent fund shall be allocated to their respective beneficiary accounts. All earnings to be distributed under this subsection (2)(a) shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
(b) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The central Puget Sound public transportation account, the city hardship assistance account, the county arterial preservation account, the economic development account, the essential rail assistance account, the essential rail banking account, the ferry bond retirement fund, the grade crossing protective fund, the high capacity transportation account, the highway bond retirement fund, the highway construction stabilization account, the highway safety account, the marine operating fund, the motor vehicle fund, the motorcycle safety education account, the pilotage account, the public transportation systems account, the Puget Sound capital construction account, the Puget Sound ferry operations account, the recreational vehicle account, the rural arterial trust account, the special category C account, the state patrol highway account, the transfer relief account, the transportation capital facilities account, the transportation equipment fund, the transportation fund, the transportation improvement account, and the urban arterial trust account.
(3) In conformance with Article II, section 37 of the state Constitution, no treasury accounts or funds shall be allocated earnings without the specific affirmative directive of this section.
K. EXCLUSIONS AND STUDIES
NEW SECTION. Sec. 474. CODE REVISIONS AND WAIVERS. (1) The commission shall determine the state and federal laws that would need to be repealed, amended, or waived to implement chapter . . ., Laws of 1993 (this act), and report its recommendations, with proposed revisions to the Revised Code of Washington, to the governor, and appropriate committees of the legislature by July 1, 1994.
(2) The governor, in consultation with the commission, shall take the following steps in an effort to receive waivers or exemptions from federal statutes necessary to fully implement chapter . . ., Laws of 1993 (this act) to include, but not be limited to:
(a) Negotiate with the United States congress and the federal department of health and human services, health care financing administration to obtain a statutory or regulatory waiver of provisions of the medical assistance statute, Title XIX of the federal social security act that currently constitute barriers to full implementation of provisions of chapter . . ., Laws of 1993 (this act) related to access to health services for low-income residents of Washington state. Such waivers shall include any waiver needed to require that: (i) Medical assistance recipients enroll in managed care systems, as defined in chapter ..., Laws of 1993 (this act); (ii) the uniform benefits package, as provided in section 449 of this act, be the benefits package available to medical assistance recipients; and (iii) enrollee point of service, cost-sharing levels adopted pursuant to section 449 of this act be applied to medical assistance recipients. Waived provisions may include and are not limited to: Categorical eligibility restrictions related to age, disability, blindness, or family structure; income and resource limitations tied to financial eligibility requirements of the federal aid to families with dependent children and supplemental security income programs; administrative requirements regarding single state agencies, choice of providers, and fee for service reimbursement; and other limitations on health services provider payment methods.
(b) Negotiate with the United States congress and the federal department of health and human services, health care financing administration to obtain a statutory or regulatory waiver of provisions of the medicare statute, Title XVIII of the federal social security act that currently constitute barriers to full implementation of provisions of chapter . . ., Laws of 1993 (this act) related to access to health services for elderly and disabled residents of Washington state. Such waivers shall include any waivers needed to implement managed care programs. Waived provisions include and are not limited to: Beneficiary cost-sharing requirements; restrictions on scope of services; and limitations on health services provider payment methods.
(c) Negotiate with the United States congress and the federal department of health and human services to obtain any statutory or regulatory waivers of provisions of the United States public health services act necessary to ensure integration of federally funded community and migrant health clinics and other health services funded through the public health services act into the health services system established pursuant to chapter . . ., Laws of 1993 (this act). The commission shall request in the waiver that funds from these sources continue to be allocated to federally funded community and migrant health clinics to the extent that such clinics' patients are not yet enrolled in certified health plans.
(d) Negotiate with the United States congress to obtain a statutory exemption from provisions of the Employee Retirement Income Security Act that limit the state's ability to ensure that all employees and their dependents in the state comply with the requirement to enroll in certified health plans, and have their employers participate in financing their enrollment in such plans.
(e) Request that the United States congress amend the Internal Revenue Code to treat employee premium contributions to plans, such as the basic health plan or the uniform benefits package offered through a certified health plan, as fully deductible from adjusted gross income.
(3) On or before December 1, 1995, the commission shall report the following to the appropriate committees of the legislature:
(a) The status of its efforts to obtain the waivers provided in subsection (2) of this section;
(b) If all federal statutory or regulatory waivers necessary to fully implement chapter ..., Laws of 1993 (this act) have not been obtained:
(i) The extent to which chapter ..., Laws of 1993 (this act) can be implemented without receipt of all of such waivers; and
(ii) Changes in chapter ..., Laws of 1993 (this act) necessary to implement a residency-based health services system using one or a limited number of sponsors, or an alternative system that will ensure access to care and control health services costs.
NEW SECTION. Sec. 475. REPORTS OF HEALTH CARE COST CONTROL AND ACCESS COMMISSION. In carrying out its powers and duties under chapter . . ., Laws of 1993 (this act), the design of the uniform benefits package, and the development of guidelines and standards, the commission shall consider the reports of the health care cost control and access commission established under House Concurrent Resolution No. 4443 adopted by the legislature in 1990. Nothing in chapter . . ., Laws of 1993 (this act) requires the commission to follow any specific recommendation contained in those reports except as it may also be included in chapter . . ., Laws of 1993 (this act) or other law.
NEW SECTION. Sec. 476. EVALUATIONS, PLANS, AND STUDIES. (1) By July 1, 1997, the legislative budget committee either directly or by contract shall conduct the following study:
A study to determine the desirability and feasibility of consolidating the following programs, services, and funding sources into the delivery and financing of uniform benefits package services through certified health plans:
(a) State and federal veterans' health services;
(b) Civilian health and medical program of the uniformed services (CHAMPUS) of the federal department of defense and other federal agencies; and
(c) Federal employee health benefits.
(2) The legislative budget committee shall evaluate the implementation of the provisions of chapter . . ., Laws of 1993 (this act). The study shall determine to what extent chapter . . ., Laws of 1993 (this act) has been implemented consistent with the principles and elements set forth in chapter . . ., Laws of 1993 (this act) and shall report its findings to the governor and appropriate committees of the legislature by July 1, 2003.
NEW SECTION. Sec. 477. FINANCIAL AND ACCOUNTING STRUCTURE OF STATE PURCHASED HEALTH CARE. The commission, the office of financial management, and the legislative evaluation and accountability program committee shall jointly review the financial and accounting structure of all current state-purchased health care programs and any new programs established in chapter . . ., Laws of 1993 (this act). They shall report to the legislature on or before December 1, 1994, with recommendations on how to structure a state-purchased health services budget that: (1) Meets federal and state audit requirements; (2) exercises adequate fiscal and programmatic control; (3) provides management and organizational accountability and control; and (4) provides continuity with historical health services expenditure data.
NEW SECTION. Sec. 478. EVALUATION OF REFORM EFFORT. The office of financial management may undertake or facilitate evaluations of health care reform, including analysis of fiscal and economic impacts, the effectiveness of managed care and managed competition, and effects of reform on access and quality of service.
NEW SECTION. Sec. 479. COORDINATION OF CERTIFIED HEALTH PLANS AND OTHER INSURANCE. (1) On or before December 1, 1994, the legislative budget committee, whether directly or by contract, shall conduct a study related to coordination of certified health plans and other property and casualty insurance products. The goal of the study shall be to determine methods for containing costs of health services paid for through coverage underwritten by property and casualty insurers.
(2) The study shall address methods to integrate coverage sold by property and casualty insurance companies that covers medical and hospital expenses with coverage provided through certified health plans.
NEW SECTION. Sec. 480. HOSPITAL REGULATION STUDY. The legislative budget committee, through a competitive bidding process restricted to those with suitable expertise to conduct such a study, shall contract for an examination of local, state, and federal regulations that apply to hospitals and shall report to the health care policy committees of the legislature by July 1, 1994, on the following:
(1) An inventory of health and safety regulations that apply to hospitals;
(2) A description of the costs to local, state, and federal agencies for operating the regulatory programs;
(3) An estimate of the costs to hospitals to comply with the regulations;
(4) A description of whether regulatory functions are duplicated among different regulatory programs;
(5) An analysis of the effectiveness of regulatory programs in meeting their safety and health objectives;
(6) An analysis of hospital charity care requirements under RCW 70.170.060 and their relevance under the health care reforms created under chapter . . ., Laws of 1993 (this act);
(7) Recommendations on elimination or consolidation of unnecessary or duplicative regulatory activities that would not result in a reduction in the health and safety objectives.
NEW SECTION. Sec. 481. NURSING HOME STUDY. The legislative budget committee, through a competitive bidding process restricted to those with suitable expertise to conduct such a study, shall contract for an examination of local, state, and federal regulations that apply to nursing homes and shall report to the health care policy committees of the legislature by July 1, 1994, on the following:
(1) An inventory of health and safety regulations that apply to nursing homes;
(2) A description of the costs to local, state, and federal agencies for operating the regulatory programs;
(3) An estimate of the costs to nursing homes to comply with the regulations;
(4) A description of whether regulatory functions are duplicated among different regulatory programs;
(5) An analysis of the effectiveness of regulatory programs in meeting their safety and health objectives;
(6) Recommendations on elimination or consolidation of unnecessary or duplicative regulatory activities that would not result in a reduction in the health and safety objectives. The review shall specifically address documentation or protocols that are redundant and efficiencies that could be realized through the development of standardized physicians' protocols for repetitive but nonlife-threatening conditions.
NEW SECTION. Sec. 482. CERTIFIED HEALTH PLAN LICENSING STUDY. The insurance commissioner shall undertake a study of the feasibility and benefits of developing a single licensing category for certified health plans that would replace current statues licensing disability insurers, health care service contractors, and health maintenance organizations. The commissioner shall report his or her findings and recommendations to the legislature by January 1, 1994, and final findings and recommendations to the legislature by October 1, 1994. In conducting such study, the commissioner shall:
(1) Consider standards for the regulation and inclusion of preferred provider organizations, independent practice associations, and independent physician organizations under such new certified health plan statute;
(2) Review existing capital and reserve statutes governing insurers, contractors, and health maintenance organizations to determine the appropriate level of capital and reserve for licensing of certified health plans to protect consumers while encouraging competition in the certified health plan market from new entrants into the market;
(3) Review existing rate regulation of disability insurance policies, health care service contracts, and health maintenance agreements and propose a uniform approach for regulation of rates that balances the need of certified health plans to freely compete and the need to protect consumers from inadequate, excessive, or unfairly discriminatory rates;
(4) Consider regulatory methods to ensure the adequate provision of and contracting with health care facilities and providers by certified health plans to meet the health care needs of enrollees of certified health plans;
(5) Consider the need to modify existing insurance statutes and regulations to govern the integration, development, and marketing of health care coverage that would supplement the uniform benefits package; and
(6) Consult with health care service contractors, health maintenance organizations, disability insurance companies, and other health care providers and facilities who would be affected by such changes.
NEW SECTION. Sec. 483. CRIME VICTIMS' COMPENSATION MEDICAL BENEFITS. (1) On or before January 1, 1995, the department of labor and industries in coordination with the commission, shall complete a study related to the medical services component of the crime victims' compensation program of the department of labor and industries. The goal of the study shall be to determine whether and how the medical services component of the crime victims' compensation program can be modified to provide appropriate medical services to crime victims in a more cost-effective manner. In conducting the study, consideration shall be given to at least the following factors: Required benefit design, necessary statutory changes, and the use of managed care to provide services to crime victims. The study shall evaluate at least the following options:
(a) Whether the medical services component of the crime victims' compensation program should be maintained within the department of labor and industries, and its purchasing and other practices modified to control costs and increase efficacy of health services provided to crime victims;
(b) Whether the medical services component of the crime victims' compensation program should be administered by the health care authority as the state health care purchasing agent;
(c) Whether the medical services component of the crime victims' compensation program should be included in the services offered by certified health plans.
(2) The department of labor and industries shall present the recommendations to the governor and the appropriate committees of the legislature by January 1, 1995.
NEW SECTION. Sec. 484. MEDICAL CARE SAVINGS ACCOUNTS. The Washington health services commission shall study and report to the legislature on the feasibility of offering employer-funded medical care savings account arrangements and reduced cost qualified higher deductible insurance policies as a choice to K-12 system, state, and local government employees in meeting their health care obligations.
L. WORKERS' COMPENSATION
NEW SECTION. Sec. 485. WORKERS' COMPENSATION MEDICAL BENEFITS. On or before January 1, 1995, the health services commission, in coordination with the department of labor and industries and the workers' compensation advisory committee, shall study and make an interim report, and on or before January 1, 1996, a final report, to the governor and appropriate committees of the legislature on the provision of medical benefits for injured workers under a consolidated health care system. The study shall include a review of options and recommendations for modifying the industrial insurance system to provide medical services for injured workers in a more cost-effective manner under a consolidated system, and may include consideration of the purchase of industrial insurance medical benefits through the health care authority or the inclusion of industrial insurance medical benefits in the services offered by certified health plans or other appropriate options. The commission should also give consideration to at least the following issues: The use of managed care and the effect of managed care options on the injured workers' choice of health services provider; the potential cost savings or other impacts of various consolidation options; the benefit structure required under industrial insurance; the potential for consolidation to meet or exceed existing medical cost management of the medical aid fund; the impact of separating the medical management of claims from the disability management of claims; the relationship between return-to-work efforts, medical services, and disability prevention; the relationship between medical services and rehabilitation services; and the effects of the quasi-judicial system that determines industrial insurance rights and obligations. In addition, the final report shall include a proposed plan and timeline for including the medical benefits of the industrial insurance system in the services offered by certified health plans. The proposed plan shall assure that:
(1) The plan shall not take effect until at least ninety-seven percent of state residents have access to the uniform benefits package as required in chapter ..., Laws of 1993 (this act);
(2) The uniform benefits package of the certified health plan will provide benefits for injured workers that are at least equivalent to the medical benefits provided to injured workers under Title 51 RCW as determined by the department of labor and industries as of the effective date of the plan, including payments for services that are ancillary to industrial insurance medical benefits, such as but not limited to medical examinations for permanent disabilities;
(3) Other nonmedical benefits required to be provided under Title 51 RCW, such as but not limited to total or partial disability benefits or vocational rehabilitation benefits, are not affected;
(4) Employers who do not choose to become certified health plans under chapter..., Laws of 1993 (this act), will continue to be required to provide industrial insurance medical benefits under Title 51 RCW;
(5) Employees participating in the plan shall not be required to pay deductibles, copayments, or other point of service charges for services related to industrial insurance injuries or diseases, such costs to be paid by the department of labor and industries or self-insured employer, as applicable;
(6) The plan includes a mechanism to return to workers and employers, in equal shares, any savings that are realized in the costs of medical services for injured workers, as identified by the department of labor and industries;
(7) The majority of the employer's employees or, if the employees are represented for collective bargaining purposes, the exclusive bargaining representative voluntarily agree to the employer's participation in the plan.
NEW SECTION. Sec. 486. MANAGED CARE PILOT PROJECTS. (1) The department of labor and industries, in consultation with the workers' compensation advisory committee, may conduct pilot projects to purchase medical services for injured workers through managed care arrangements. The projects shall assess the effects of managed care on the cost and quality of, and employer and employee satisfaction with, medical services provided to injured workers.
(2) The pilot projects may be limited to specific employers. The implementation of a pilot project shall be conditioned upon a participating employer and a majority of its employees, or, if the employees are represented for collective bargaining purposes, the exclusive bargaining representative, voluntarily agreeing to the terms of the pilot. Unless the project is terminated by the department, both the employer and employees are bound by the project agreements for the duration of the project.
(3) Solely for the purpose and duration of a pilot project, the specific requirements of Title 51 RCW that are identified by the department as otherwise prohibiting implementation of the pilot project shall not apply to the participating employers and employees to the extent necessary for conducting the project. Managed care arrangements for the pilot projects may include the designation of doctors responsible for the care delivered to injured workers participating in the projects.
(4) The projects shall conclude no later than January 1, 1996. The department shall present the results of the pilot projects and any recommendations related to the projects to the governor and appropriate committees of the legislature on or before October 1, 1996.
M. MISCELLANEOUS
NEW SECTION. Sec. 487. SHORT TITLE. This act may be known and cited as the Washington health services act of 1993.
Sec. 488. RCW 42.17.2401 and 1991 c 200 s 404 are each amended to read as follows:
EXECUTIVE STATE OFFICERS. For the purposes of RCW 42.17.240, the term "executive state officer" includes:
(1) The chief administrative law judge, the director of agriculture, the administrator of the office of marine safety, the administrator of the Washington basic health plan, the director of the department of services for the blind, the director of the state system of community and technical colleges, the director of community development, the secretary of corrections, the director of ecology, the commissioner of employment security, the chairman of the energy facility site evaluation council, the director of the energy office, the secretary of the state finance committee, the director of financial management, the director of fisheries, the executive secretary of the forest practices appeals board, the director of the gambling commission, the director of general administration, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the director of the higher education personnel board, the executive secretary of the horse racing commission, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the director of the department of information services, the director of the interagency committee for outdoor recreation, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the director of personnel, the executive director of the public disclosure commission, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, the executive secretary of the board of tax appeals, the director of trade and economic development, the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the director of wildlife, the president of each of the regional and state universities and the president of The Evergreen State College, each district and each campus president of each state community college;
(2) Each professional staff member of the office of the governor;
(3) Each professional staff member of the legislature; and
(4) Central Washington University board of trustees, board of trustees of each community college, each member of the state board for community and technical colleges ((education)), state convention and trade center board of directors, committee for deferred compensation, Eastern Washington University board of trustees, Washington economic development finance authority, The Evergreen State College board of trustees, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, each member of the Washington health services commission, higher education coordinating board, higher education facilities authority, higher education personnel board, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, information services board, interagency committee for outdoor recreation, state investment board, liquor control board, lottery commission, marine oversight board, oil and gas conservation committee, Pacific Northwest electric power and conservation planning council, parks and recreation commission, personnel appeals board, personnel board, board of pilotage (([commissioners])) commissioners, pollution control hearings board, public disclosure commission, public pension commission, shorelines hearing board, ((state)) public employees' benefits board, board of tax appeals, transportation commission, University of Washington board of regents, utilities and transportation commission, Washington state maritime commission, Washington public power supply system executive board, Washington State University board of regents, Western Washington University board of trustees, and wildlife commission.
Sec. 489. RCW 43.20.050 and 1992 c 34 s 4 are each amended to read as follows:
STATE BOARD OF HEALTH--PUBLIC HEALTH POLICY. (1) The state board of health shall provide a forum for the development of public health policy in Washington state. It is authorized to recommend to the secretary means for obtaining appropriate citizen and professional involvement in all public health policy formulation and other matters related to the powers and duties of the department. It is further empowered to hold hearings and explore ways to improve the health status of the citizenry.
(a) At least every five years, the state board shall convene regional forums to gather citizen input on public health issues.
(b) Every two years, in coordination with the development of the state biennial budget, the state board shall prepare the state public health report that outlines the health priorities of the ensuing biennium. The report shall:
(i) Consider the citizen input gathered at the ((health)) forums;
(ii) Be developed with the assistance of local health departments;
(iii) Be based on the best available information collected and reviewed according to RCW 43.70.050 and recommendations from the council;
(iv) Be developed with the input of state health care agencies. At least the following directors of state agencies shall provide timely recommendations to the state board on suggested health priorities for the ensuing biennium: The secretary of social and health services, the health care authority administrator, the insurance commissioner, the superintendent of public instruction, the director of labor and industries, the director of ecology, and the director of agriculture;
(v) Be used by state health care agency administrators in preparing proposed agency budgets and executive request legislation;
(vi) Be submitted by the state board to the governor by ((June)) January 1 of each even-numbered year for adoption by the governor. The governor, no later than ((September)) March 1 of that year, shall approve, modify, or disapprove the state public health report.
(c) In fulfilling its responsibilities under this subsection, the state board ((shall)) may create ad hoc committees or other such committees of limited duration as necessary. ((Membership should include legislators, providers, consumers, bioethicists, medical economics experts, legal experts, purchasers, and insurers, as necessary.))
(2) In order to protect public health, the state board of health shall:
(a) Adopt rules necessary to assure safe and reliable public drinking water and to protect the public health. Such rules shall establish requirements regarding:
(i) The design and construction of public water system facilities, including proper sizing of pipes and storage for the number and type of customers;
(ii) Drinking water quality standards, monitoring requirements, and laboratory certification requirements;
(iii) Public water system management and reporting requirements;
(iv) Public water system planning and emergency response requirements;
(v) Public water system operation and maintenance requirements;
(vi) Water quality, reliability, and management of existing but inadequate public water systems; and
(vii) Quality standards for the source or supply, or both source and supply, of water for bottled water plants.
(b) Adopt rules and standards for prevention, control, and abatement of health hazards and nuisances related to the disposal of wastes, solid and liquid, including but not limited to sewage, garbage, refuse, and other environmental contaminants; adopt standards and procedures governing the design, construction, and operation of sewage, garbage, refuse and other solid waste collection, treatment, and disposal facilities;
(c) Adopt rules controlling public health related to environmental conditions including but not limited to heating, lighting, ventilation, sanitary facilities, cleanliness and space in all types of public facilities including but not limited to food service establishments, schools, institutions, recreational facilities and transient accommodations and in places of work;
(d) Adopt rules for the imposition and use of isolation and quarantine;
(e) Adopt rules for the prevention and control of infectious and noninfectious diseases, including food and vector borne illness, and rules governing the receipt and conveyance of remains of deceased persons, and such other sanitary matters as admit of and may best be controlled by universal rule; and
(f) Adopt rules for accessing existing data bases for the purposes of performing health related research.
(3) The state board may delegate any of its rule-adopting authority to the secretary and rescind such delegated authority.
(4) All local boards of health, health authorities and officials, officers of state institutions, police officers, sheriffs, constables, and all other officers and employees of the state, or any county, city, or township thereof, shall enforce all rules adopted by the state board of health. In the event of failure or refusal on the part of any member of such boards or any other official or person mentioned in this section to so act, he shall be subject to a fine of not less than fifty dollars, upon first conviction, and not less than one hundred dollars upon second conviction.
(5) The state board may advise the secretary on health policy issues pertaining to the department of health and the state.
NEW SECTION. Sec. 490. SEVERABILITY. 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. 491. SAVINGS CLAUSE. The enactment of this act does not have the effect of terminating, or in any way modifying, any obligation or any liability, civil or criminal, which was already in existence on the effective date of this act.
NEW SECTION. Sec. 492. CAPTIONS. Captions used in this act do not constitute any part of the law.
NEW SECTION. Sec. 493. CODIFICATION. (1) Sections 401 through 407, 409, 425, 427 through 430, and 447 through 466 of this act shall constitute a new chapter in Title 43 RCW.
(2) Sections 426 and 431 through 446 of this act shall constitute a new chapter in Title 48 RCW.
(3) Sections 458 through 462 of this act shall constitute a new chapter in Title 48 RCW.
NEW SECTION. Sec. 494. RESERVATION OF LEGISLATIVE AUTHORITY. The legislature reserves the right to amend or repeal all or any part of this act at any time and there shall be no vested private right of any kind against such amendment or repeal. All the rights, privileges, or immunities conferred by this act or any acts done pursuant thereto shall exist subject to the power of the legislature to amend or repeal this act at any time.
NEW SECTION. Sec. 495. EFFECTIVE DATE CLAUSE. 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, 1993, except for:
(1) Sections 234 through 257 of this act, which shall take effect July 1, 1995; and
(2) Sections 301 through 303 of this act, which shall take effect January 1, 1996.
NEW SECTION. Sec. 496. NULL AND VOID. If specific funding for section 418 of this act, referencing section 418 of this act by bill and section number, is not provided by June 30, 1993, in the omnibus appropriations act, section 418 of this act shall be null and void."
On page 1, line 1 of the title, after "care;" strike the remainder of the title and insert "amending RCW 70.47.010, 70.47.020, 70.47.030, 70.47.040, 70.47.060, 70.47.080, 41.05.011, 41.05.021, 41.05.050, 41.05.055, 41.05.065, 41.05.120, 41.05.140, 47.64.270, 74.09.055, 19.68.010, 70.05.010, 70.05.030, 70.05.040, 70.05.050, 70.05.070, 70.05.080, 70.05.120, 70.05.130, 70.05.150, 70.08.010, 70.12.030, 70.12.050, 70.46.020, 70.46.060, 70.46.080, 70.46.085, 70.46.090, 70.46.120, 82.44.110, 82.44.155, 43.20.030, 70.170.100, 70.170.110, 28B.125.010, 28B.115.080, 70.185.030, 43.70.460, 43.70.470, 48.30.300, 48.44.260, 48.46.380, 48.44.095, 48.14.080, 82.04.260, 82.04.4289, 82.24.020, 82.24.080, 82.26.020, 82.08.150, 66.24.290, 82.02.030, 43.70.320, 70.41.200, 70.41.230, 5.60.070, 4.22.070, 43.84.092, 42.17.2401, and 43.20.050; reenacting and amending RCW 28A.400.200, 28A.400.350, 48.21.200, and 48.46.080; adding a new section to chapter 70.47 RCW; adding new sections to chapter 41.05 RCW; adding a new section to Title 43 RCW; adding new sections to chapter 70.05 RCW; adding new sections to chapter 70.170 RCW; adding a new section to chapter 70.41 RCW; adding new sections to chapter 18.68 RCW; adding a new section to chapter 18.51 RCW; adding new sections to chapter 70.185 RCW; adding a new section to chapter 48.18 RCW; adding a new section to chapter 48.20 RCW; adding a new section to chapter 48.21 RCW; adding new sections to chapter 48.44 RCW; adding new sections to chapter 48.46 RCW; adding a new section to chapter 48.01 RCW; adding a new section to chapter 48.14 RCW; adding a new section to chapter 82.04 RCW; adding new sections to chapter 18.130 RCW; adding new sections to chapter 43.70 RCW; adding a new section to chapter 48.22 RCW; adding a new section to chapter 48.05 RCW; adding new sections to chapter 7.70 RCW; adding a new chapter to Title 43 RCW; adding new chapters to Title 48 RCW; creating new sections; recodifying RCW 70.08.010; repealing RCW 70.05.005, 70.05.020, 70.05.132, 70.05.145, 70.12.005, 70.46.030, 70.46.040, 70.46.050, 48.46.160, 48.46.905, 48.44.410, and 82.04.4288; prescribing penalties; providing effective dates; and declaring an emergency."
MOTION
Representative Dellwo moved that the House adopt the Report of the Conference Committee on Engrossed Second Substitute Senate Bill No. 5304. The motion was carried.
FINAL PASSAGE OF HOUSE BILL
AS RECOMMENDED BY CONFERENCE COMMITTEE
The Speaker stated the question before the House to be final passage of Engrossed Second Substitute Senate Bill No. 5304 as recommended by the Conference Committee.
Representatives Dellwo, L. Johnson, Peery, Flemming, Appelwick, Kessler, Veloria, Jacobsen, Conway, Wineberry, R. Johnson, G. Fisher, Linville, J. Kohl, Locke, Heavey, Sommers, Springer, Shin and Campbell spoke in favor of passage of the bill.
Representatives Ballard, Tate, Chandler, Reams, Sheldon, Miller, Sheahan, Kremen, Cooke, Padden, Carlson, Silver, Brough, Stevens, Van Luven, Forner, Sehlin and Dyer spoke against passage of the bill.
Representative Miller demanded an oral roll call vote and the demand was sustained. was
Representative Dyer yielded to a question by Representative Chandler.
Representative Chandler: Thank you, Mr. Speaker. Representative Dyer, one of the concerns that I have and it's something that was expressed to me when I campaigned through the year was on health care, but one of the concerns that I have was people in my district who are uninsured and do not have insurance. If this bill is approved today, will that be taken care of, will all my people in my district that are uninsured be able have insurance and at what kind of cost?
Representative Dyer: Representative Chandler, currently 89 percent of Washington citizens have health insurance. After 20 years, Hawaii, who has an employer mandated program, has only insured 95 percent of its citizens. In other words, 95 percent is probably the best Washington will do after a 20 year track record. The bill impose, on nearly two billion in taxes in 1999 at an estimated cost to employers of an additional 1.9 billion per year. Imposition with waste a large portion of money on new tax dollars rather than greater access and we can only expect to gain another 6 percent of the state's population in expanded access.
Representative Dellwo yielded to a question by Representative Conway.
Representative Conway: Under the conference committee report to Engrossed Second Substitute Senate Bill No. 5304, does the legislature intend an employer have the rights to provide health benefits contributions to employees working fewer than thirty hours per week, or their dependents, at levels greater than those established in section 464 of the act?
Representative Dellwo: Yes, it is the intent of the legislature to define minimum hours requirements related to employees qualifying for employer contributions to health benefits costs. Nothing in this act restricts the right of employers, either unilaterally or through collective bargaining, to provide health benefits contributions to employees working fewer than thirty hours per week, or their dependents, at levels greater than those established in section 464 of the act.
Representative Dellwo yielded to a question by Representative R. Johnson.
Representative R. Johnson: Is it the purpose of the maximum premium [or cap], as set forth in section 406(6) of this bill, to set an exact price for the uniform benefits package?
Representative Dellwo: No, it is not. The maximum premium or cap is meant to be an upper price limit and no certified health plan or registered employer health plan may charge more than this amount for the uniform benefits package. It is not the intent of this legislation to fix prices, but to encourage managed competition among plans. It is our hope that this competition will be so effective that no plan price will ever approach the maximum premium.
Representative Dyer yielded to a question by Representative Sheahan.
Representative Sheahan: Representative Dyer, I'm very concerned about the future impact on the economy of this piece of legislation. Are there any future state costs that will not be funded by this legislation, that might require more taxes?
Representative Dyer: Representative Sheahan, in working with the bill and looking at the current package of Appropriations and Revenue, it's very clear there are numerous and future hidden costs not included in the nearly 2 billion dollars of new taxes already required by the bill. Its hidden cost will create a huge financial blow that will require even more taxes of the citizens of Washington in the very near future, all to gain insurance for only 6 percent of the population.
Representative Dellwo yielded to a question by Representative Linville.
Representative Linville: Is it the intent of the legislature that the commission examine issues relating to coverage of non-traditional employees, such as seasonal, migrant and agricultural workers?
Representative Dellwo: Yes. The legislature recognizes that there are unique issues associated with employer sponsorship of health benefits for these non-traditional workers.
Section 232 of the legislation directs the health care authority to maximize the use of existing community and migrant health clinics in meeting the health care needs of these populations. In addition, the commission, in section 406 of the legislation, is given the authority to contract directly with community and migrant health clinics to serve these populations.
If the commission determines that direct employer sponsorship of health benefits for seasonal, migrant or agricultural workers is not the best means to provide access to health care for these workers, the legislature fully expects that the commission will develop recommendations as to an alternative means to provide health care to these workers in a cost-effective manner.
Representative Dyer yielded to a question by Representative Carlson.
Representative Carlson: One of the big concerns I have from my constituents is the question of benefits and whether under the current health package there would be a reduction under this plan. Representative Dyer, do you feel there would be a reduction under the proposed plan?
Representative Dyer: Well, I certainly do believe there will be a change in the way plans are administered. The implementation of the uniform benefit package will considerably lessen than most comprehensive plans now benefits held by the 89 percent of the population out there that have coverage. As the cost of providing the uniform benefit package is likely to increase with the impact of community rating and composite rating, there will be a definite pressure on the benefit size and there will be a significant change in the employees' expectations of what their coverage will be.
Representative Dellwo yielded to a question by Representative Springer.
Representative Springer: Is it the intent of this legislation that a composite premium rate be implemented even if the commission discovers that such a method is inequitable and not feasible?
Representative Dellwo: No, it is not. The reference to a composite rate was included in the legislation as a way to address, in general, the potential costs problem that families might face in paying their part of the premium. However, the commission is charged with the responsibility of examining this approach and proposing alternative methods to the legislature so we can be sure that the rate is workable and fair.
Representative Zellinsky demanded the previous question.
A division was called on the motion.
The results of the division were 63-YEAS, 35-NAYS. The demand was not sustained.
FINAL PASSAGE OF SENATE BILL AS
RECOMMENDED BY THE CONFERENCE COMMITTEE
ROLL CALL
The Clerk called the roll on final passage of Engrossed Second Substitute Senate Bill No. 5304 as amended by the House and the bill passed the House by the following vote: Yeas - 56, Nays - 42, Absent - 0, Excused - 0.
Voting yea: Representatives Anderson, Appelwick, Basich, Bray, Brown, Campbell, Chappell, Cole, G., Conway, Cothern, Dellwo, Dorn, Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Lemmon, Leonard, Linville, Locke, Ludwig, Meyers, R., Morris, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Riley, Romero, Rust, Shin, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe and Mr. Speaker - 56.
Voting nay: Representatives Ballard, Ballasiotes, Brough, Brumsickle, Carlson, Casada, Chandler, Cooke, Dyer, Edmondson, Foreman, Forner, Fuhrman, Grant, Hansen, Horn, Kremen, Lisk, Long, Mastin, Mielke, Miller, Morton, Padden, Rayburn, Reams, Roland, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Silver, Stevens, Talcott, Tate, Thomas, Vance, Van Luven, Wood and Zellinsky - 42.
Engrossed Second Substitute Senate Bill No. 5304, as amended by the House, having received the constitutional majority, was declared passed.
The Speaker declared the House to be at ease.
The Speaker called the House to order.
MESSAGES FROM THE SENATE
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 1209. The President has appointed the following members as Conferees: Senators Pelz, Hochstatter and McAuliffe, and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate granted the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 1512. The President has appointed the following members as Conferees: Senators Talmadge, Roach and Hargrove, and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate granted the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 1931. The President has appointed the following members as Conferees: Senators Vognild, Nelson and Drew,and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on ENGROSSED SUBSTITUTE HOUSE BILL NO. 1307. The President has appointed the following members as Conferees: Senators Sheldon, Erwin and Williams, and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 1175. The President has appointed the following members as Conferees: Senators Pelz, Roach and McAuliffe,
and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 20, 1993
Mr. Speaker:
The Senate has concurred in the House amendments to the following bills and passed the bills as amended by the House:
ENGROSSED SENATE BILL NO. 5260,
SUBSTITUTE SENATE BILL NO. 5270,
ENGROSSED SENATE BILL NO. 5280,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5307,
SUBSTITUTE SENATE BILL NO. 5316,
SUBSTITUTE SENATE BILL NO. 5380,
SUBSTITUTE SENATE BILL NO. 5483,
SUBSTITUTE SENATE BILL NO. 5492,
SUBSTITUTE SENATE BILL NO. 5503,
ENGROSSED SENATE BILL NO. 5508,
SECOND SUBSTITUTE SENATE BILL NO. 5511,
SUBSTITUTE SENATE BILL NO. 5528,
ENGROSSED SENATE BILL NO. 5534,
ENGROSSED SENATE BILL NO. 5545,
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
SENATE AMENDMENTS TO HOUSE BILL
April 14, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 2036 with the following amendments:
On page 2, beginning on line 30, strike all material through line 37.
On page 5, line 30, after "transportation account;" insert "and the"
On page 5, line 32, after "competitive" strike "; and the multimodal account"
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative R. Fisher moved that the House do concur in the Senate amendments to Substitute House Bill No. 2036 and pass the bill as amended by the Senate.
Representative R. Fisher spoke in favor of the motion and the motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker stated the question before the House to be final passage of Substitute House Bill No. 2036 as amended by the Senate.
ROLL CALL
The Clerk called the roll on final passage of Substitute House Bill No. 2036 as amended by the Senate and the bill passed the House by the following vote:Yeas - 98, Nays - 0, Absent - 0, Excused - 0.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Morton, Myers, H., Ogden, Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, Valle, Vance, Van Luven, Veloria, Wang, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 98.
Substitute House Bill No. 2036, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 15, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 2071, with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that while present state law prohibits the sale and distribution of tobacco to minors, youth obtain tobacco products with ease. Availability and lack of enforcement put tobacco products in the hands of youth.
Federal law requires states to enforce laws prohibiting sale and distribution of tobacco products to minors in a manner that can reasonably be expected to reduce the extent to which the products are available to minors. It is imperative to effectively reduce the sale, distribution, and availability of tobacco products to minors.
NEW SECTION. Sec. 2. The definitions set forth in RCW 82.24.010 shall apply to sections 3 through 14 of this act. In addition, for the purposes of this chapter, unless otherwise required by the context:
(1) "Board" means the Washington state liquor control board.
(2) "Minor" refers to an individual who is less than eighteen years old.
(3) "Public place" means a public street, sidewalk, or park, or any area open to the public in a publicly owned and operated building.
(4) "Sample" means a tobacco product distributed to members of the general public at no cost or at nominal cost for product promotion purposes.
(5) "Sampler" means a person engaged in the business of sampling other than a retailer.
(6) "Sampling" means the distribution of samples to members of the general public in a public place.
(7) "Tobacco product" means a product that contains tobacco and is intended for human consumption.
NEW SECTION. Sec. 3. A person who holds a license issued under RCW 82.24.520 or 82.24.530 shall:
(1) Display the license or a copy in a prominent location at the outlet for which the license is issued; and
(2) Display a sign concerning the prohibition of tobacco sales to minors.
Such sign shall:
(a) Be posted so that it is clearly visible to anyone purchasing tobacco products from the licensee;
(b) Be designed and produced by the department of health to read: "THE SALE OF TOBACCO PRODUCTS TO PERSONS UNDER AGE 18 IS STRICTLY PROHIBITED BY STATE LAW. IF YOU ARE UNDER 18, YOU COULD BE PENALIZED FOR PURCHASING A TOBACCO PRODUCT; PHOTO ID REQUIRED"; and
(c) Be provided free of charge by the liquor control board.
NEW SECTION. Sec. 4. No person shall sell or permit to be sold any tobacco product through any device that mechanically dispenses tobacco products unless the device is located fully within premises from which minors are prohibited or in industrial worksites where minors are not employed and not less than ten feet from all entrance or exit ways to and from each premises.
NEW SECTION. Sec. 5. No person shall sell or permit to be sold cigarettes not in the original unopened package or container to which the stamps required by RCW 82.24.060 have been affixed.
This section does not apply to the sale of loose leaf tobacco by a retail business that generates a minimum of sixty percent of annual gross sales from the sale of tobacco products.
NEW SECTION. Sec. 6. (1) No person may engage in the business of sampling within the state unless licensed to do so by the board. If a firm contracts with a manufacturer to distribute samples of the manufacturer's products, that firm is deemed to be the person engaged in the business of sampling.
(2) The board shall issue a license to a sampler not otherwise disqualified by section 11 of this act upon application and payment of the fee.
(3) A sampler's license expires on the thirtieth day of June of each year and must be renewed annually upon payment of the appropriate fee.
(4) The board shall annually determine the fee for a sampler's license and each renewal. However, the fee for a manufacturer whose employees distribute samples within the state is five hundred dollars per annum, and the fee for all other samplers must be not less than fifty dollars per annum.
(5) A sampler's license entitles the licensee, and employees or agents of the licensee, to distribute samples at any lawful location in the state during the term of the license. A person engaged in sampling under the license shall carry the license or a copy at all times.
NEW SECTION. Sec. 7. (1) No person may distribute or offer to distribute samples in a public place. This prohibition does not apply to sampling (a) in an area to which persons under the age of eighteen are denied admission, (b) in or at a store or concession to which a retailer's license has been issued, or (c) at or adjacent to a production, repair, or outdoor construction site or facility.
(2) Notwithstanding subsection (1) of this section, no person may distribute or offer to distribute samples in or on a public street, sidewalk, or park that is within five hundred feet of a playground, school, or other facility when that facility is being used primarily by persons under the age of eighteen for recreational, educational, or other purposes.
NEW SECTION. Sec. 8. No person shall give or distribute cigarettes or other tobacco products to a person by a coupon if such coupon is redeemed in any manner that does not require an in-person transaction in a retail store.
NEW SECTION. Sec. 9. A person under the age of eighteen who purchases or attempts to purchase or obtains or attempts to obtain cigarettes or tobacco products commits a class 3 civil infraction under chapter 7.80 RCW and is subject to a fine as set out in chapter 7.80 RCW or participation in a smoking cessation program, or both. This provision does not apply if a person under the age of eighteen, with parental authorization, is participating in a controlled purchase as part of a liquor control board, law enforcement, or local health department activity.
NEW SECTION. Sec. 10. (1) Where there may be a question of a person's right to purchase or obtain tobacco products by reason of age, the retailer, sampler, or agent thereof, shall require the purchaser to present any one of the following officially issued identification that shows the purchaser's age and bears his or her signature and photograph: Liquor control authority card of identification of a state or province of Canada; driver's license, instruction permit, or identification card of a state or province of Canada; "identicard" issued by the Washington state department of licensing under chapter 46.20 RCW; United States military identification; passport; or merchant marine identification card issued by the United States coast guard.
(2) It is a defense to a prosecution under RCW 26.28.080(4) that the person making a sale reasonably relied on any of the officially issued identification as defined in subsection (1) of this section. The liquor control board shall waive the suspension or revocation of a license if the licensee clearly establishes that he or she acted in good faith to prevent violations and a violation occurred despite the licensee's exercise of due diligence.
NEW SECTION. Sec. 11. (1) The liquor control board may suspend or revoke a retailer's license held by a business at any location, or may impose a monetary penalty as set forth in subsection (2) of this section, if the liquor control board finds that the licensee has violated RCW 26.28.080(4), or section 3, 4, 5, 6, 7, 8, or 10 of this act.
(2) The sanctions that the liquor control board may impose against a person licensed under RCW 82.24.530 and sections 6 and 7 of this act based upon one or more findings under subsection (1) of this section may not exceed the following:
(a) For violation of RCW 26.28.080(4) or section 3 of this act:
(i) A monetary penalty of one hundred dollars for the first violation within any two-year period;
(ii) A monetary penalty of three hundred dollars for the second violation within any two-year period;
(iii) A monetary penalty of one thousand dollars and suspension of the license for a period of six months for the third violation within any two-year period;
(iv) A monetary penalty of one thousand five hundred dollars and suspension of the license for a period of twelve months for the fourth violation within any two-year period;
(v) Revocation of the license with no possibility of reinstatement for a period of five years for the fifth or more violation within any two-year period;
(b) For violations of section 4 of this act, a monetary penalty in the amount of one hundred dollars for each day upon which such violation occurred;
(c) For violations of section 5 of this act occurring on the licensed premises:
(i) A monetary penalty of one hundred dollars for the first violation within any two-year period;
(ii) A monetary penalty of three hundred dollars for the second violation within any two-year period;
(iii) A monetary penalty of one thousand dollars and suspension of the license for a period of six months for the third violation within any two-year period;
(iv) A monetary penalty of one thousand five hundred dollars and suspension of the license for a period of twelve months for the fourth violation within any two-year period;
(v) Revocation of the license with no possibility of reinstatement for a period of five years for the fifth or more violation within any two-year period;
(d) For violations of sections 6 and 7 of this act, a monetary penalty in the amount of three hundred dollars for each violation;
(e) For violations of section 8 of this act, a monetary penalty in the amount of one thousand dollars for each violation.
(3) The liquor control board may impose a monetary penalty upon any person other than a licensed cigarette retailer or licensed sampler if the liquor control board finds that the person has violated RCW 26.28.080(4), or section 3, 4, 5, 6, 7, 8, or 10 of this act.
(4) The monetary penalty that the liquor control board may impose based upon one or more findings under subsection (3) of this section may not exceed the following:
(a) For violation of RCW 26.28.080(4) or section 3 of this act, fifty dollars for the first violation and one hundred dollars for each subsequent violation;
(b) For violations of section 4 of this act, one hundred dollars for each day upon which such violation occurred;
(c) For violations of section 5 of this act, one hundred dollars for each violation;
(d) For violations of sections 6 and 7 of this act, three hundred dollars for each violation;
(e) For violations of section 8 of this act, one thousand dollars for each violation.
(5) The liquor control board may develop and offer a class for retail clerks and use this class in lieu of a monetary penalty for the clerk's first violation.
(6) The liquor control board may issue a cease and desist order to any person who is found by the liquor control board to have violated or intending to violate the provisions of this chapter, RCW 26.28.080(4) or 82.24.500, requiring such person to cease specified conduct that is in violation. The issuance of a cease and desist order shall not preclude the imposition of other sanctions authorized by this statute or any other provision of law.
(7) The liquor control board may seek injunctive relief to enforce the provisions of RCW 26.28.080(4) or 82.24.500 or this chapter. The liquor control board may initiate legal action to collect civil penalties imposed under this chapter if the same have not been paid within thirty days after imposition of such penalties. In any action filed by the liquor control board under this chapter, the court may, in addition to any other relief, award the liquor control board reasonable attorneys' fees and costs.
(8) All proceedings under subsections (1) through (6) of this section shall be conducted in accordance with chapter 34.05 RCW.
NEW SECTION. Sec. 12. (1) The liquor control board shall, in addition to the board's other powers and authorities, have the authority to enforce the provisions of this chapter and RCW 26.28.080(4) and 82.24.500. The liquor control board shall have full power to revoke or suspend the license of any retailer or wholesaler in accordance with the provisions of section 11 of this act.
(2) The liquor control board and the board's authorized agents or employees shall have full power and authority to enter any place of business where tobacco products are sold for the purpose of enforcing the provisions of this chapter.
(3) For the purpose of enforcing the provisions of this chapter and RCW 26.28.080(4) and 82.24.500, a peace officer or enforcement officer of the liquor control board who has reasonable grounds to believe a person observed by the officer purchasing, attempting to purchase, or in possession of tobacco products is under the age of eighteen years of age, may detain such person for a reasonable period of time and in such a reasonable manner as is necessary to determine the person's true identity and date of birth. Further, tobacco products possessed by persons under the age of eighteen years of age are considered contraband and may be seized by a peace officer or enforcement officer of the liquor control board.
(4) The liquor control board may work with local county health departments or districts and local law enforcement agencies to conduct random, unannounced, inspections to assure compliance.
NEW SECTION. Sec. 13. (1) The youth tobacco prevention account is created in the state treasury. All fees collected pursuant to RCW 82.24.520 and 82.24.530 and funds collected by the liquor control board from the imposition of monetary penalties and samplers' fees shall be deposited into this account, except that ten percent of all such fees and penalties shall be deposited in the state general fund.
(2) Moneys appropriated from the youth tobacco prevention account to the department of health shall be used by the department of health for implementation of this chapter, including collection and reporting of data regarding enforcement and the extent to which access to tobacco products by youth has been reduced.
(3) The department of health shall enter into interagency agreements with the liquor control board to pay the costs incurred, up to thirty percent of available funds, in carrying out its enforcement responsibilities under this chapter. Such agreements shall set forth standards of enforcement, consistent with the funding available, so as to reduce the extent to which tobacco products are available to individuals under the age of eighteen. The agreements shall also set forth requirements for data reporting by the liquor control board regarding its enforcement activities.
(4) The department of health and the department of revenue shall enter into an interagency agreement for payment of the cost of administering the tobacco retailer licensing system and for the provision of quarterly documentation of tobacco wholesaler, retailer, and vending machine names and locations.
(5) The department of health shall, within up to seventy percent of available funds, provide grants to local health departments or other local community agencies to develop and implement coordinated tobacco intervention strategies to prevent and reduce tobacco use by youth.
NEW SECTION. Sec. 14. This chapter preempts political subdivisions from adopting or enforcing requirements for the licensure and regulation of tobacco product promotions and sales within retail stores, except that political subdivisions that have adopted ordinances prohibiting sampling by January 1, 1993, may continue to enforce these ordinances. No political subdivision may: (1) Impose fees or license requirements on retail businesses for possessing or selling cigarettes or tobacco products, other than general business taxes or license fees not primarily levied on tobacco products; or (2) regulate or prohibit activities covered by sections 3 through 9 of this act. This chapter does not otherwise preempt political subdivisions from adopting ordinances regulating the sale, purchase, use, or promotion of tobacco products not inconsistent with chapter ..., Laws of 1993 (this act).
Sec. 15. RCW 82.24.530 and 1986 c 321 s 7 are each amended to read as follows:
A fee of ((ten)) ninety-three dollars shall accompany each retailer's license application or license renewal application. A separate license is required for each separate location at which the retailer operates. A fee of ((one)) thirty additional dollars for each vending machine shall accompany each application or renewal for a license issued to a retail dealer operating a cigarette vending machine.
NEW SECTION. Sec. 16. The department of health shall report to the house of representatives and senate committees with jurisdiction for health issues no later than February 1, 1995, on the effectiveness of enforcement and education activities as specified in this act. This study shall include information concerning the adequacy of revenue to support enforcement and education activities.
Sec. 17. RCW 82.24.550 and 1986 c 321 s 9 are each amended to read as follows:
(1) The department of revenue shall enforce the provisions of this chapter except RCW 82.24.500, which will be enforced by the liquor control board. The department of revenue may adopt, amend, and repeal rules necessary to enforce and administer the provisions of this chapter. The department of revenue has full power and authority to revoke or suspend the license or permit of any wholesale or retail cigarette dealer in the state upon sufficient cause appearing of the violation of this chapter or upon the failure of such licensee to comply with any of the provisions of this chapter.
(2) A license shall not be suspended or revoked except upon notice to the licensee and after a hearing as prescribed by the department of revenue. The department of revenue, upon a finding by same, that the licensee has failed to comply with any provision of this chapter or any rule promulgated thereunder, shall, in the case of the first offender, suspend the license or licenses of the licensee for a period of not less than thirty consecutive business days, and, in the case of a second or plural offender, shall suspend the license or licenses for a period of not less than ninety consecutive business days nor more than twelve months, and, in the event the department of revenue finds the offender has been guilty of willful and persistent violations, it may revoke the license or licenses.
(3) Any person whose license or licenses have been so revoked may apply to the department of revenue at the expiration of one year for a reinstatement of the license or licenses. The license or licenses may be reinstated by the department of revenue if it appears to the satisfaction of the department of revenue that the licensee will comply with the provisions of this chapter and the rules promulgated thereunder.
(4) A person whose license has been suspended or revoked shall not sell cigarettes or permit cigarettes to be sold during the period of such suspension or revocation on the premises occupied by the person or upon other premises controlled by the person or others or in any other manner or form whatever.
(5) Any determination and order by the department of revenue, and any order of suspension or revocation by the department of revenue of the license or licenses, or refusal to reinstate a license or licenses after revocation shall be reviewable by an appeal to the superior court of Thurston county. The superior court shall review the order or ruling of the department of revenue and may hear the matter de novo, having due regard to the provisions of this chapter and the duties imposed upon the department of revenue.
Sec. 18. RCW 82.24.560 and 1986 c 321 s 10 are each amended to read as follows:
Except as specified in section 13 of this act, all fees and penalties received or collected by the department of revenue pursuant to this chapter shall be paid to the state treasurer, to be credited to the general fund.
NEW SECTION. Sec. 19. Sections 2 through 14 of this act shall constitute a new chapter in Title 70 RCW.
NEW SECTION. Sec. 20. 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."
On page 1, line 1 of the title, after "tobacco;" strike the remainder of the title and insert "amending RCW 82.24.530, 82.24.550, and 82.24.560; adding a new chapter to Title 70 RCW; creating new sections; and prescribing penalties."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative L. Johnson moved that the House do concur in the Senate amendments to Engrossed Substitute House Bill No. 2071 and pass the bill as amended by the Senate.
Representatives L. Johnson and Foreman spoke in favor of the motion and the motion was carried.
Representative L. Johnson yielded to a question by Representative Appelwick.
Representative Appelwick: What does political subdivision mean in Section 14 of this bill? Does that mean, for instance, local departments and agencies, such as local health departments?
Representative L. Johnson: Political subdivision is intended to include all local governments and their departments, agencies, and offices including local health departments of cities and counties.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 2071 as amended by the Senate.
ROLL CALL
The Clerk called the roll on final passage of Engrossed Substitute House Bill No. 2071 as amended by the Senate and the bill passed the House by the following vote: Yeas - 97, Nays - 1, Absent - 0, Excused - 0.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brough, Brown, Brumsickle, Campbell, Carlson, Casada, Chandler, Chappell, Cole, G., Conway, Cooke, Cothern, Dellwo, Dorn, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Morton, Myers, H., Ogden, Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, Vance, Van Luven, Veloria, Wang, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 97.
Voting nay: Representative Valle - 1.
Engrossed Substitute House Bill No. 2071, as amended by the Senate, having received the constitutional majority, was declared passed.
MOTION
Representative Sheldon moved the Rules Committee be relieved of House Joint Resolution No. 4201 and that the resolution was placed on the second reading calendar. The motion was carried.
HOUSE JOINT RESOLUTION NO. 4201, by Representatives Ludwig, Padden, Appelwick, Foreman and Johanson
Amending the Constitution to provide that superior courts and district courts have concurrent jurisdiction in cases in equity.
On motion of Representative Sheldon, the rules were suspended, the second reading considered the third and the Resolution was placed on final passage.
Representatives Talcott, Heavey, Sehlin, Flemming, Casada, Wineberry, Dyer, Campbell and Thomas spoke in favor of the Resolution.
House Joint Resolution No. 4201 was adopted.
The Speaker introduced Soldiers of First Corps and Fort Lewis, Rocky Houser, the Command Sergeant Major of First Corps and Fort Lewis, Staff Sergeant Michael D. Miracle, Fort Lewis Non-Commissioned Officer of the Year for 1993, Specialist Tiffany M. Martin, Fort Lewis Soldier of the Year for 1993 and Lieutenant General Carmen J. Caveeza.
General Caveeza briefly addressed the House of Representatives.
MESSAGES FROM THE SENATE
April 20, 1993
Mr. Speaker:
The President has signed:
SUBSTITUTE SENATE BILL NO. 5025,
SUBSTITUTE SENATE BILL NO. 5056,
SUBSTITUTE SENATE BILL NO. 5088,
SUBSTITUTE SENATE BILL NO. 5145,
SUBSTITUTE SENATE BILL NO. 5179,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5186,
and the same are herewith transmitted.
Marty Brown, Secretary
April 20, 1993
Mr. Speaker:
The Senate receded from its amendments to HOUSE BILL NO. 1490 and passed the bill without the Senate amendments.
and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 20, 1993
Mr. Speaker:
The Senate receded from its amendments to SUBSTITUTE HOUSE BILL NO. 1741 and passed the bill without the Senate amendments.
and the same is herewith transmitted.
Brad Hendrickson, Deputy Secretary
There being no objection the House advanced to the eighth order of business.
RESOLUTIONS
HOUSE RESOLUTION NO. 93-4646, by Representatives Vance and Roland
WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and
WHEREAS, The Auburn Senior High School Forensic Program has exhibited the highest levels of excellence in winning numerous awards the past two years in state and national forensic competition; and
WHEREAS, The Auburn Senior High School Forensic Program teaches young people the art of public discussion and debate and helps develop skills in argumentative discourse; and
WHEREAS, The Auburn Senior High School Forensic Program will participate in some fourteen summer seminars and workshops during the summer of 1993 throughout the country with students participating at their own expense, including those at American University in Washington, D.C., University of Michigan, Northwestern University, University of Kansas, Baylor University, Stanford University, and Pacific Lutheran University here in Washington State; and
WHEREAS, The Auburn Senior High School Forensic Program has been invited to five national tournaments including those at the Bronx School of Science in New York City, Glenbrook North in Chicago, Redlands University in Los Angeles, University of California at Berkeley, Tournament of Champions at the University of Kentucky and the National Forensic League Nationals in Indianapolis, Indiana; and
WHEREAS, The following awards have been received by the Auburn Senior High School Forensic Program or its participants during the past two years:
(1) The Auburn Senior High School Forensic Program: Rated eighteenth in the nation by the National Forensic League in 1992; rated fifteenth in the nation by the National Forensic League and member of their "200 Club" with over two hundred members and degrees in 1993; 1992-93 Sweepstakes Award for the Championship of the Western Washington National Forensic League District; 1991-92 AAA Debate Academic State Championship as presented by the W.I.A.A.; and 1992-93 AAA Debate Academic State Championship as presented by the W.I.A.A.;
(2) Mike Burton: Outstanding Service to Forensic in the state of Washington as presented by the Washington State Forensic Coaches Association; 1992 Outstanding Forensic Education in the state of Washington as presented by the Pacific Lutheran Forensic Program; and 1992 National Forensic League Distinguished Key Award for Service;
(3) Hannah Knudsen: 1992-93 Outstanding Senior Forensic Student as presented by the Pacific Lutheran University Forensic team;
(4) Brenna Bell: 1992-93 Erik Helppie Award and Scholarship for the Outstanding Forensic Student in the state of Washington as presented by the Washington State Forensic Coaches Association;
(5) Shannon Smith: 1992 National Qualifier for the National Forensic League Nationals in Fargo, North Dakota;
(6) Nigel Barron and Larry Daugherty: 1993 National Qualifiers for the National Forensic League Nationals at Indianapolis, Indiana;
(7) Erika Rhett and Chris Kuhel: 1993 Alternates to the National Forensic League Nationals;
(8) Gavin Skok and Brent Jones: 1992 Degree of Outstanding Distinction from the National Forensic League for outstanding ability in speech and debate, an award provided to only one-half of one percent of all students involved in Forensics;
(9) Chris Kuhel and Erika Rhett: 1993 Degree of Outstanding Distinction from the National Forensic League for outstanding ability in speech and debate, an award provided to only one-half of one percent of all students involved in Forensics;
(10) Larry Daugherty: Winner of the Seattle-Chongquig Sister City Speech Contest to China for himself and his coach; and
(11) Mr. Archie McCallum, Former Principal-Retired 1992, Auburn Senior High School: 1992 Administrator of the Year as presented by the Washington State Forensic Association; and
WHEREAS, These program and individual accomplishments could not have been achieved without the support and encouragement of the students, alumni, families, friends, and community members, who backed them all the way; and
WHEREAS, The Auburn Senior High School Forensic Program Director of Forensics Mike Burton, and all the program participants, share in the Auburn Senior High School Forensic Program's success by combining outstanding direction with outstanding performance; and
WHEREAS, The individual and team achievements of the Auburn Senior High School Forensic Program over the past two years will always be remembered when commemorating their successes, and are a source of great pride to all the citizens of the state of Washington;
NOW, THEREFORE, BE IT RESOLVED, That the House of Representative of the state of Washington honor the Auburn Senior High School Forensic Program; and
BE IT FURTHER RESOLVED, That copies of this Resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Auburn Senior High School Forensic Program Director of Forensics Mike Burton, Auburn Senior High School Principal Kip Herren, Auburn School District Superintendent Dr. James P. Fugate, and President of the Board, Lee Singer.
Representative Vance moved adoption of the resolution.
Representatives Vance, Roland and Karahalios spoke in favor of adoption of the resolution.
House Resolution No. 4646 was adopted.
HOUSE RESOLUTION NO. 93-4656, by Representatives Edmondson, Lemmon, Lisk, Chandler, Rayburn and Hansen
WHEREAS, It is the policy of the Washington State Legislature to recognize excellence in all fields of endeavor; and
WHEREAS, The Greater Yakima area has exhibited the highest level of excellence in winning the 1993 National Civic League's All American City Program's recognition as one of the top thirty All American Cities in the United States; and
WHEREAS, The National Civic League's All American City Program is the premiere community recognition program in the United States, and this year the 1993 National Civic League's All American City Program received the largest number of applications than at any previous time in its 50 year history, over 151 applications from throughout the United States; and
WHEREAS, The Greater Yakima Chamber of Commerce filed the application for recognition of the Greater Yakima area as an All American City, and focused on three projects which showed a strong community partnership, the Substance Abuse Coalition, the Yakima Greenway, and the Washington State Fairground renovation, such as the Sundome; and
WHEREAS, The Greater Yakima Chamber of Commerce All American City Committee consisted of Chairperson, Curtis King, Dr. Larry Petry, Jim Barnhill, Mal Arnett, Esther Huey, Bill Baker, Cee Vogt, Mel Wagner, Glenn Rice, Greg Stewart, and Greater Yakima Chamber of Commerce General Manager, Gary Webster; and
WHEREAS, The Greater Yakima area was the only Northwest city, and one of only five cities in the western United States, to be given the honor of being recognized by the National Civic League's All American City Program as one of the top thirty All American Cities in the United States; and
WHEREAS, The choice of the Greater Yakima area as one of the top thirty All American Cities in the United States shows the commitment of all the citizens of the Greater Yakima area to help create a great community; and
WHEREAS, This extraordinary accomplishment could not have been achieved without the support and encouragement of all the families, businesses, workers, and area residents, who have worked hard, and this achievement will always be remembered as a source of great pride to all the citizens of the state of Washington; and
WHEREAS, The Greater Yakima area will be contending for recognition as one of the top ten All American Cities in Tampa, Florida on Saturday, May 22, 1993;
NOW, THEREFORE, BE IT RESOLVED, That the House of Representatives of the state of Washington honor the Greater Yakima area for its recognition by the National Civic League's All American City Program as one of the top thirty All American Cities in the United States for 1993, and encourage state-wide support for Greater Yakima area's selection as one of the top ten All American Cities in the United States for 1993; and
BE IT FURTHER RESOLVED, That copies of this resolution be immediately transmitted by the Chief Clerk of the House of Representatives to the Mayor of Yakima, Patricia Berndt, City Manager of Yakima, Dick Zais, the Greater Yakima Chamber of Commerce General Manager, Gary Webster, and the Greater Yakima Chamber of Commerce All American City Committee Chairperson, Curtis King.
Representative Edmondson moved adoption of the resolution.
Representatives Edmondson, Lemmon, Lisk, Rayburn and Chandler spoke in favor of adoption of the resolution.
The Speaker called on Representative Ogden to preside.
House Resolution No. 4656 was adopted.
The Speaker (Representative Ogden presiding) declared the House to be at ease.
The Speaker called the House to order.
The Speaker called on Representative R. Meyers to preside.
SENATE AMENDMENTS TO HOUSE BILL
April 12, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1069, with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. This chapter does not apply to property subject to forfeiture under chapter 66.32 RCW, RCW 69.50.505, 9.41.098, 9.46.230, 9A.82.100, 9A.83.030, 7.48.090, or 77.12.101.
NEW SECTION. Sec. 2. (1) The following are subject to seizure and forfeiture and no property right exists in them: All personal property, including, but not limited to, any item, object, tool, substance, device, weapon, machine, vehicle of any kind, money, security, or negotiable instrument, which has been or was actually employed as an instrumentality in the commission of, or in aiding or abetting in the commission of any felony, or which was furnished or was intended to be furnished by any person in the commission of, as a result of, or as compensation for the commission of, any felony, or which was acquired in whole or in part with proceeds traceable to the commission of a felony. No property may be forfeited under this section until after there has been a superior court conviction of the owner of the property for the felony in connection with which the property was employed, furnished, or acquired.
A forfeiture of property encumbered by a bona fide security interest is subject to the interest of the secured party if at the time the security interest was created, the secured party neither had knowledge of nor consented to the commission of the felony.
(2) Personal property subject to forfeiture under this chapter may be seized by any law enforcement officer of this state upon process issued by any superior court having jurisdiction over the property. Seizure of personal property without process may be made if:
(a) The seizure is incident to an arrest or a search under a search warrant;
(b) The property subject to seizure has been the subject of a prior judgment in favor of the state in a criminal injunction or forfeiture proceeding;
(c) A law enforcement officer has probable cause to believe that the property is directly dangerous to health or safety; or
(d) The law enforcement officer has probable cause to believe that the property was used or is intended to be used in the commission of a felony.
(3) In the event of seizure pursuant to this section, proceedings for forfeiture shall be deemed commenced by the seizure. The law enforcement agency under whose authority the seizure was made shall cause notice to be served within fifteen days following the seizure on the owner of the property seized and the person in charge thereof and any person having any known right or interest therein, including any community property interest, of the seizure and intended forfeiture of the seized property. The notice of seizure may be served by any method authorized by law or court rule including but not limited to service by certified mail with return receipt requested. Service by mail shall be deemed complete upon mailing within the fifteen day period following the seizure. Notice of seizure in the case of property subject to a security interest that has been perfected by filing a financing statement in accordance with chapter 62A.9 RCW, or a certificate of title shall be made by service upon the secured party to the secured party's assignee at the address shown on the financing statement or the certificate of title.
(4) If no person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within ninety days of the seizure, the item seized shall be deemed forfeited. A perfected security interest of a secured party may be extinguished only after a contested hearing or agreement by the secured party.
(5) If any person notifies the seizing law enforcement agency in writing of the person's claim of ownership or right to possession of items specified in subsection (1) of this section within ninety days of the seizure, the person or persons shall be afforded a reasonable opportunity to be heard as to the claim or right. The prosecuting attorney shall file the case into a court of competent jurisdiction. The court to which the matter is filed shall be the district court when the aggregate value of the personal property is within the jurisdictional limit of the district court. In a court hearing between two or more claimants to the article or articles involved, the prevailing party shall be entitled to a judgment for costs and reasonable attorney's fees. The burden of producing evidence shall be by a preponderance and upon the person claiming to be the lawful owner or the person claiming to have the lawful right to possession of the property. The seizing law enforcement agency shall promptly return the article or articles to the claimant upon a determination by the trier of fact that the claimant is the present lawful owner or is lawfully entitled to possession.
(6) When property is forfeited under this chapter, after satisfying any court-ordered victim restitution, the seizing law enforcement agency may:
(a) Retain it for official use or upon application by any law enforcement agency of this state release such property to such agency for the exclusive use of enforcing the criminal law;
(b) Sell that which is not required to be destroyed by law and which is not harmful to the public.
(7) By January 31st of each year, each seizing agency shall remit to the state treasurer an amount equal to ten percent of the net proceeds of any property forfeited during the preceding calendar year. Money remitted shall be deposited in the public safety and education account.
(a) The net proceeds of forfeited property is the value of the forfeitable interest in the property after deducting the cost of satisfying any bona fide security interest to which the property is subject at the time of seizure; and in the case of sold property, after deducting the cost of sale, including reasonable fees or commissions paid to independent selling agents.
(b) The value of sold forfeited property is the sale price. The value of retained forfeited property is the fair market value of the property at the time of seizure, determined when possible by reference to an applicable commonly used index, such as the index used by the department of licensing for valuation of motor vehicles. A seizing agency may use, but need not use, an independent qualified appraiser to determine the value of retained property. If an appraiser is used, the value of the property appraised is net of the cost of the appraisal. The value of destroyed property and retained firearms or illegal property is zero.
(c) Retained property and net proceeds not required to be paid to the state treasurer, or otherwise required to be spent under this section, shall be retained by the seizing law enforcement agency exclusively for the expansion and improvement of law enforcement activity. Money retained under this section may not be used to supplant preexisting funding sources.
NEW SECTION. Sec. 3. Sections 1 and 2 of this act shall constitute a new chapter in Title 10 RCW."
On page 1, line 1 of the title, after "property;" strike the remainder of the title and insert "and adding a new chapter to Title 10 RCW."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Appelwick moved the House refuse to concur on Senate amendments to Substitute House Bill No. 1069 and ask for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Appelwick, Ludwig and Padden as conferees on Substitute House Bill No. 1069.
SENATE AMENDMENTS TO HOUSE BILL
April 14, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1357 with the following amendments:
On page 3, after line 9, insert the following:
"NEW SECTION. Sec. 5. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Board" means the public works board.
(2) "Department" means the department of health.
(3) "Private water purveyor" means a public water system not owned by a governmental body.
(4) "Public water purveyor" means a governmental body, including a public or quasi-public organization, that owns and operates a public water system, or the authorized agent of such an entity.
(5) "Public water system" has the meaning prescribed in the Washington state safe drinking water act, chapter 70.119A RCW.
NEW SECTION. Sec. 6. The drinking water assistance account is established in the state treasury. Money may be placed in the account from the proceeds of bonds when authorized by the legislature, transfers from other state funds or accounts, federal financial assistance, or any other lawful source. Moneys from the account may be spent only by the secretary of health or the public works board after appropriation. Expenditures from the account may be used only to meet the purposes of this chapter.
NEW SECTION. Sec. 7. The department shall, by January 1, 1994, in consultation with the board, purveyors, local health departments, and other interested parties, establish guidelines and requirements for the provision of grants and/or loans to public water systems. The department shall ensure that guidelines and requirements:
(1) Utilize, to the maximum extent, all available federal financial assistance;
(2) Are consistent with existing water resource planning and management, including coordinated water supply plans, regional water resource plans, and comprehensive plans under the growth management act, chapter 36.70A RCW;
(3) Prioritize least-cost solutions, including consolidation and restructuring of small systems into more economical units and the provision of regional facilities;
(4) Assure implementation of water conservation and other demand management measures consistent with state guidelines for water utilities;
(5) Provide assistance for the necessary planning and engineering to assure that consistency, coordination, and proper professional review are incorporated into projects or activities proposed for funding;
(6) Include minimum standards for financial viability and water system planning;
(7) Provide for testing and evaluation of the water quality of the state's public water systems to assure that priority for financial assistance is provided to systems and areas with threats to public health from contaminated supplies and reduce in appropriate cases the substantial increases in costs and rates that customers of small systems would otherwise incur under the monitoring and testing requirements of the federal safe drinking water act; and
(8) Are coordinated, to the maximum extent possible, with other state programs that provide financial assistance to public water systems and state programs that address existing or potential water quality or drinking water contamination problems.
NEW SECTION. Sec. 8. The board shall develop a financial assistance program using appropriated funds from the drinking water assistance account to meet the purposes and implement the guidelines authorized in this chapter. The board shall consult with the department and water purveyors in developing the financial assistance program.
The board shall develop criteria for grants and/or loans to be made to public water systems. The criteria shall emphasize public water systems with the most critical public health needs; the capacity of the water system to effectively manage its resources; the ability to promptly commence the project; and the relative benefit to the community served. Priority shall be given to those systems that are ready to proceed, that will provide water system improvements to the greatest number of people, and any other criteria that the board shall develop in consultation with the department and water system purveyors.
NEW SECTION. Sec. 9. The department and the board shall be entitled to reasonable administrative expenses in developing and implementing the programs authorized under this chapter.
In all cases where the department, board, and any other department, agency, board, or commission of state government interact or provide service under this chapter, the administering government body shall endeavor to provide cost-effective services. The provision of services shall include: (1) The use of policy statements or guidelines instead of administrative rules; (2) using existing management mechanisms rather than creating new administrative structures; (3) investigating the use of service contracts, either with other governmental entities or with nongovernmental service providers; (4) the use of joint or combined financial assistance applications; and (5) any other method or practice designed to streamline the delivery of services.
NEW SECTION. Sec. 10. Sections 5 through 9 of this act shall constitute a new chapter in Title 70 RCW.
NEW SECTION. Sec. 11. Sections 5 through 9 of this act are 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 immediately.
On page 1, line 2 of the title, after "70.119.150;" strike "and"
On page 1, line 3 of the title, after "RCW" insert "; adding a new chapter to Title 70 RCW; and declaring an emergency"
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Rust moved the House refuse to concur in the Senate amendments to Substitute House Bill No. 1357 and ask the Senate to recede therefrom. The motion was carried.
SENATE AMENDMENTS TO HOUSE BILL
April 8, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1529, with the following amendments:
Strike everything after the enacting clause and insert the following:
"Sec. 1. RCW 43.31.611 and 1991 c 314 s 3 are each amended to read as follows:
(1) The governor shall appoint a timber recovery coordinator. The coordinator shall coordinate the state and federal economic and social programs targeted to timber impact areas.
(2) The coordinator's responsibilities shall include but not be limited to:
(a) Serving as executive secretary of the economic recovery coordination board and directing staff associated with the board.
(b) Chairing the agency timber task force and directing staff associated with the task force.
(c) Coordinating and maximizing the impact of state and federal assistance to timber impact areas.
(d) Coordinating and expediting programs to assist timber impact areas.
(e) Providing the legislature with a status and impact report on the timber recovery program in January 1992.
(3) This section shall expire June 30, ((1993)) 1995.
Sec. 2. RCW 43.31.621 and 1991 c 314 s 4 are each amended to read as follows:
(1) There is established the agency timber task force. The task force shall be chaired by the timber recovery coordinator. It shall be the responsibility of the coordinator that all directives of chapter 314, Laws of 1991 are carried out expeditiously by the agencies represented in the task force. The task force shall consist of the directors, or representatives of the directors, of the following agencies: The department of trade and economic development, department of community development, employment security department, department of social and health services, state board for community and technical colleges ((education)), state ((board for vocational education)) work force training and education coordinating board, or its replacement entity, department of natural resources, department of transportation, state energy office, department of wildlife, University of Washington center for international trade in forest products, and department of ecology. The task force may consult and enlist the assistance of the following: The higher education coordinating board, University of Washington college of forest resources, Washington State University school of forestry, Northwest policy center, state superintendent of public instruction, the Evergreen partnership, Washington association of counties, and rural development council.
(2) This section shall expire June 30, ((1993)) 1995.
Sec. 3. RCW 43.31.631 and 1991 c 314 s 6 are each amended to read as follows:
(1) There is established the economic recovery coordination board consisting of one representative, appointed by the governor, from each county that is a timber impact area. The timber recovery coordinator shall also be a member of the board. Each associate development organization from counties that are timber impact areas, in consultation with the county legislative authority, shall submit to the governor the names of three nominees representing different interests in each county. Within sixty days after July 28, 1991, the governor shall select one nominee from each list submitted by associate development organizations. In making the appointments, the governor shall endeavor to ensure that the board represents a diversity of backgrounds. Vacancies shall be filled in the same manner as the original appointment.
(2) The board shall:
(a) Advise the timber recovery coordinator and the agency timber task force on issues relating to timber impact area economic and social development, and review and provide recommendations on proposals for the diversification of the timber impact areas presented to it by the timber recovery coordinator.
(b) Respond to the needs and concerns of citizens at the local level.
(c) Develop strategies for the economic recovery of timber impact areas.
(d) Provide recommendations to the governor, the legislature, and congress on land management and economic and regulatory policies that affect timber impact areas.
(e) Recommend to the legislature any changes or improvements in existing programs designed to benefit timber impact areas.
(3) Members of the board and committees shall receive no compensation but shall be reimbursed for travel expenses under RCW 43.03.050 and 43.03.060.
(4) This section shall expire June 30, ((1993)) 1995.
Sec. 4. RCW 43.160.200 and 1991 c 314 s 23 are each amended to read as follows:
(1) The economic development account is created within the public facilities construction loan revolving fund under RCW 43.160.080. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for the purposes of RCW 43.160.010(4) and this section. The account is subject to allotment procedures under chapter 43.88 RCW.
(2) Applications under this section for assistance from the economic development account are subject to all of the applicable criteria set forth under this chapter, as well as procedures and criteria established by the board, except as otherwise provided.
(3) Eligible applicants under this section are limited to political subdivisions of the state in timber impact areas that demonstrate, to the satisfaction of the board, the local economy's dependence on the forest products industry.
(4) Applicants must demonstrate that their request is part of an economic development plan consistent with applicable state planning requirements. Applicants must demonstrate that tourism projects have been approved by the local government and are part of a regional tourism plan approved by the local and regional tourism organizations. Industrial projects must be approved by the local government and the associate development organization.
(5) Publicly owned projects may be financed under this section upon proof by the applicant that the public project is a necessary component of, or constitutes in whole, a tourism project.
(6) Applications must demonstrate local match and participation. Such match may include: Land donation, other public or private funds or both, or other means of local commitment to the project.
(7) Board financing for feasibility studies shall not exceed twenty-five thousand dollars per study. Board funds for feasibility studies may be provided as a grant and require a dollar for dollar match with up to one-half in-kind match allowed.
(8) Board financing for tourism projects shall not exceed two hundred fifty thousand dollars. Other public facility projects under this section shall not exceed five hundred thousand dollars. Loans with flexible terms and conditions to meet the needs of the applicants shall be provided. Grants may also be authorized, but only when, and to the extent that, a loan is not reasonably possible, given the limited resources of the political subdivision.
(9) The board shall develop guidelines for allowable local match and feasibility studies.
(10) Applications under this section need not demonstrate evidence that specific private development or expansion is ready to occur or will occur if funds are provided.
(11) The board shall establish guidelines for making grants and loans under this section to ensure that the requirements of this chapter are complied with. The guidelines shall include:
(a) A process to equitably compare and evaluate applications from competing communities.
(b) Criteria to ensure that approved projects will have a high probability of success and are likely to provide long-term economic benefits to the community. The criteria shall include: (i) A minimum amount of local participation, determined by the board per application, to verify community support for the project; (ii) an analysis that establishes the project is feasible using standard economic principles; and (iii) an explanation from the applicant regarding how the project is consistent with the communities' economic strategy and goals.
(c) A method of evaluating the impact of the loans or grants on the economy of the community and whether the loans or grants achieved their purpose.
(12) Cities and counties otherwise eligible under and in compliance with this section are authorized to use the loans or grants for buildings and structures.
Sec. 5. 1991 c 314 s 26 (uncodified) is amended to read as follows:
(1) For the period beginning July 1, 1991, and ending June 30, ((1993)) 1995, in timber impact areas the public works board may award low-interest or interest-free loans to local governments for construction of new public works facilities that stimulate economic growth or diversification.
(2) For the purposes of this section and section 27 of this act:
(a) "Public facilities" means bridge, road and street, domestic water, sanitary sewer, and storm sewer systems.
(b) "Timber impact area" means a county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average.
(3) The loans may have a deferred payment of up to five years but shall be repaid within twenty years. The public works board may require other terms and conditions and may charge such rates of interest on its loans as it deems appropriate to carry out the purposes of this section. Repayments shall be made to the public works assistance account.
(4) The board may make such loans irrespective of the annual loan cycle and reporting required in RCW 43.155.070.
Sec. 6. 1991 c 314 s 32 (uncodified) is amended to read as follows:
RCW 43.160.076 and 1991 c 314 s 24 and 1985 c 446 s 6 are each repealed effective June 30, ((1993)) 1995.
Sec. 7. 1991 c 314 s 33 (uncodified) is amended to read as follows:
RCW 43.160.200 expires June 30, ((1993)) 1995.
Sec. 8. 1991 c 314 s 34 (uncodified) is amended to read as follows:
((Section 25 of this act)) RCW 43.160.210 shall take effect July 1, ((1993)) 1995.
Sec. 9. 1991 c 315 s 2 (uncodified) is amended to read as follows:
(1) Coordination of the programs in this act shall be through the economic recovery coordination board created in RCW 43.31.631, the timber recovery coordinator created in RCW 43.31.611, and the agency timber task force created in RCW 43.31.621.
(2) This section shall expire June 30, ((1993)) 1995.
Sec. 10. RCW 50.22.090 and 1992 c 47 s 2 are each amended to read as follows:
(1) An additional benefit period is established for counties identified under subsection (2) of this section beginning on the first Sunday after July 1, 1991, and for the forest products industry beginning with the third week after the first Sunday after July 1, 1991. Benefits shall be paid as provided in subsection (3) of this section to exhaustees eligible under subsection (4) of this section.
(2) The additional benefit period applies to counties having a population of less than five hundred thousand beginning with the third week after a week in which the commissioner determines that a county meets two of the following three criteria, as determined by the department, for the most recent year in which such data is available: (a) A lumber and wood products employment location quotient at or above the state average; (b) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (c) an annual unemployment rate twenty percent or more above the state average. The additional benefit period for a county may end no sooner than fifty-two weeks after the additional benefit period begins.
(3) Additional benefits shall be paid as follows:
(a) No new claims for additional benefits shall be accepted for weeks beginning after July ((3)) 1, ((1993)) 1995, but for claims established on or before July ((3)) 1, ((1993)) 1995, weeks of unemployment occurring after July ((3)) 1, ((1993)) 1995, shall be compensated as provided in this section.
(b) The total additional benefit amount shall be ((fifty-two)) one hundred four times the individual's weekly benefit amount, reduced by the total amount of regular benefits and extended benefits paid, or deemed paid, with respect to the benefit year. Additional benefits shall not be payable for weeks more than ((one)) two years beyond the end of the benefit year of the regular claim for an individual whose benefit year ends on or after July 27, 1991, and shall not be payable for weeks ending on or after ((one)) two years after March 26, 1992, for individuals who become eligible as a result of chapter 47, Laws of 1992((, and shall be payable for up to five weeks following the completion of the training required by this section)).
(c) Notwithstanding the provisions of (b) of this subsection, individuals will be entitled to up to five additional weeks of benefits following the completion or termination of training.
(d) The weekly benefit amount shall be calculated as specified in RCW 50.22.040.
(((d))) (e) Benefits paid under this section shall be paid under the same terms and conditions as regular benefits and shall not be charged to the experience rating account of individual employers. The additional benefit period shall be suspended with the start of an extended benefit period, or any totally federally funded benefit program, with eligibility criteria and benefits comparable to the program established by this section, and shall resume the first week following the end of the federal program.
(f) The amendments in chapter . . ., Laws of 1993 (this act) affecting subsection (3) (b) and (c) of this section shall apply in the case of all individuals determined to be monetarily eligible under this section without regard to the date eligibility was determined.
(4) An additional benefit eligibility period is established for any exhaustee who:
(a)(i) At the time of last separation from employment, resided in or was employed in a county identified under subsection (2) of this section; or
(ii) During his or her base year, earned wages in at least six hundred eighty hours in the forest products industry, which shall be determined by the department but shall include the industries assigned the major group standard industrial classification codes "24" and "26" and the industries involved in the harvesting and management of logs, transportation of logs and wood products, processing of wood products, and the manufacturing and distribution of wood processing and logging equipment. The commissioner may adopt rules further interpreting the industries covered under this subsection. For the purposes of this subsection, "standard industrial classification code" means the code identified in RCW 50.29.025(6)(c); and
(b)(i) Has received notice of termination or layoff; and
(ii) Is unlikely to return to employment in his or her principal occupation or previous industry because of a diminishing demand within his or her labor market for his or her skills in the occupation or industry; and
(c)(i) Is notified by the department of the requirements of this section and develops an individual training program that is submitted to the commissioner for approval not later than sixty days after the individual is notified of the requirements of this section, and enters the approved training program not later than ninety days after the date of the individual's termination or layoff, or ninety days after July 1, 1991, whichever is later, unless the department determines that the training is not available during the ninety-day period, in which case the individual shall enter training as soon as it is available; or
(ii) Is enrolled in training approved under this section on a full-time basis and maintains satisfactory progress in the training; and
(d) Does not receive a training allowance or stipend under the provisions of any federal or state law.
(5) For the purposes of this section:
(a) "Training program" means:
(i) A remedial education program determined to be necessary after counseling at the educational institution in which the individual enrolls pursuant to his or her approved training program; or
(ii) A vocational training program at an educational institution that:
(A) Is training for a labor demand occupation;
(B) Is likely to facilitate a substantial enhancement of the individual's marketable skills and earning power; and
(C) Does not include on-the-job training or other training under which the individual is paid by an employer for work performed by the individual during the time that the individual receives additional benefits under subsection (1) of this section.
(b) "Educational institution" means an institution of higher education as defined in RCW 28B.10.016 or an educational institution as defined in RCW 28C.04.410(3).
(c) "Training allowance or stipend" means discretionary use, cash-in-hand payments available to the individual to be used as the individual sees fit, but does not mean direct or indirect compensation for training costs, such as tuition or books and supplies.
(6) The commissioner shall adopt rules as necessary to implement this section.
(7) For the purpose of this section, an individual who has a benefit year beginning after January 1, 1989, and ending before July 27, 1991, shall be treated as if his or her benefit year ended on July 27, 1991.
NEW SECTION. Sec. 11. Section 10 of 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 immediately.
NEW SECTION. Sec. 12. Sections 1 through 9 of this act are 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 June 30, 1993."
On page 1, line 2 of the title, after "1991;" strike the remainder of the title and insert "amending RCW 43.31.611, 43.31.621, 43.31.631, 43.160.200, and 50.22.090; amending 1991 c 314 s 26 (uncodified); amending 1991 c 314 s 32 (uncodified); amending 1991 c 314 s 33 (uncodified); amending 1991 c 314 s 34 (uncodified); amending 1991 c 315 s 2 (uncodified); providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Wineberry moved the House refuse to concur in Senate amendments to Engrossed Substitute House Bill No. 1529 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Springer, Jones and Chandler as conferees on Engrossed Substitute House Bill No. 1529.
SENATE AMENDMENTS TO HOUSE BILL
April 6, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1862, with the following amendments:
On page 2, after line 19, strike the remainder of the bill.
On page 1, line 2 of the title, after "charges;" strike "amending RCW 67.28.240;"
On page 2, after line 19, insert the following:
"Sec. 1. RCW 67.28.240 and 1991 c 363 s 140 are each amended to read as follows:
(1) The legislative body of a county that qualified under RCW 67.28.180(2)(b) other than a county with a population of one million or more and the legislative bodies of cities in the qualifying county are each authorized to levy and collect a special excise tax of ((two)) three percent on the sale of or charge made for the furnishing of lodging by a hotel, rooming house, tourist court, motel, trailer camp, and the granting of any similar license to use real property, as distinguished from the renting or leasing of real property. For the purposes of this tax, it shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or to enjoy the same.
(2) No city may impose the special excise tax authorized in subsection (1) of this section during the time the city is imposing the tax under RCW 67.28.180, and no county may impose the special excise tax authorized in subsection (1) of this section until such time as those cities within the county containing at least one-half of the total incorporated population have imposed the tax.
(3) Any county ordinance or resolution adopted under this section shall contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed under this section upon the same taxable event.
(4) Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section shall pay over such tax to the county or city as provided in RCW 67.28.200. The deduction from state taxes under RCW 67.28.190 does not apply to taxes imposed under this section."
On page 1, line 2 of the title, after "charges;" insert "amending RCW 67.28.240;"
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Holm moved the House refuse to concur in the Senate amendments to Engrossed Substitute House Bill No. 1862 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives G. Fisher, Foreman and Mastin as conferees on Engrossed Substitute House Bill No. 1862.
SENATE AMENDMENTS TO HOUSE BILL
April 16, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1493, with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. INTENT. It is the intent of the legislature to combat discrimination in the economy.
(1) The legislature finds that discrimination is in part responsible for:
(a) The disproportionately small percentage of the state's businesses that are owned by minorities and women;
(b) The limited and unequal opportunity minority and women entrepreneurs and business owners have to procure small business financing; and
(c) The difficulty many minority and women-owned contracting businesses have in securing bonds and contract work.
(2) The legislature further finds that:
(a) Many minority and women entrepreneurs and business owners lack training in how to establish and operate a business. This lack of training inhibits their competitiveness when they apply for business loans, bonds, and contracts;
(b) Minorities and women are an increasingly expanding portion of the population and work force. In order for these individuals to fully contribute to the society and economy it is necessary to ensure that minority and women entrepreneurs and business owners are provided an equal opportunity to procure small business financing, bonds, and contracts; and
(c) The growth of small businesses will have a favorable impact on the Washington economy by creating jobs, increasing competition in the marketplace, and expanding tax revenues. Access to financial markets, bonds, and contracts by entrepreneurs and small business owners is vital to this process. Without reasonable access to financing, bonds, and contracts, talented and aggressive entrepreneurs and small business owners are cut out of the economic system and the state's economy suffers.
(3) Therefore, the legislature declares there to be a substantial public purpose in providing technical assistance in the areas of marketing, finance, and management, and access to capital resources, bonds, and contracts, to help start or expand a minority or women-owned business, and specifically to encourage and make possible greater participation by minorities and women in international trade, public works and construction, and public facility concessions. To accomplish these purposes, it is the intent of the legislature to:
(a) Develop or contract for training courses in financing, marketing, managing, accounting, and recordkeeping for a small business and to make these programs available to minority and women entrepreneurs and small business owners;
(b) Make public works and construction projects, public facility concessions, and purchase of goods and services accessible to a greater number of minority and women-owned businesses;
(c) Provide for the lending of nonstate funds to qualified minority and women entrepreneurs and business owners in order to provide the maximum practicable opportunity for innovative minority and women entrepreneurs and business owners to compete for small business financing; and
(d) Provide professional services assistance grants and bond guarantees on behalf of qualified contractors in order to provide the maximum practicable opportunity for minority and women-owned contracting businesses to participate in the Washington state economy by bidding and completing various public and private contracting jobs.
NEW SECTION. Sec. 2. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Minority" means persons of color, including African-Americans, Hispanic/Latino Americans, Native Americans, and Asian/Pacific Islanders Americans;
(2) "Minority and women-owned business" means any resident minority business enterprise or women's business enterprise, certified as such by the office of minority and women's business enterprises under chapter 39.19 RCW and consistent with subsection (1) of this section.
I. EDUCATION AND TECHNICAL ASSISTANCE
Sec. 3. RCW 43.31.085 and 1989 c 430 s 2 are each amended to read as follows:
MARKETING, FINANCE, AND MANAGEMENT ASSISTANCE. The business assistance center shall:
(1) Serve as the state's lead agency and advocate for the development and conservation of businesses.
(2) Coordinate the delivery of state programs to assist businesses.
(3) Provide comprehensive referral services to businesses requiring government assistance.
(4) Serve as the business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist businesses.
(5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.
(6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.
(7) ((The business assistance center shall)) Work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.
(8) Provide or contract for technical assistance to minority and women-owned business enterprises in a variety of areas, including, but not limited to, marketing, finance, bidding and estimating assistance, public contracting assistance, and management.
(9) In collaboration with the child care coordinating committee in the department of social and health services, prepare and disseminate information on child care options for employers and the existence of the program. As much as possible, and through interagency agreements where necessary, such information should be included in the routine communications to employers from (a) the department of revenue, (b) the department of labor and industries, (c) the department of community development, (d) the employment security department, (e) the department of trade and economic development, (f) the small business development center, and (g) the department of social and health services.
(((9))) (10) In collaboration with the child care coordinating committee in the department of social and health services, compile information on and facilitate employer access to individuals, firms, organizations, and agencies that provide technical assistance to employers to enable them to develop and support child care services or facilities.
(((10))) (11) Actively seek public and private money to support the child care facility fund described in RCW 43.31.502, staff and assist the child care facility fund committee as described in RCW 43.31.504, and work to promote applications to the committee for loan guarantees, loans, and grants.
Sec. 4. RCW 43.31.055 and 1985 c 466 s 6 are each amended to read as follows:
EXPORT ASSISTANCE. The department shall assist in expanding the state's role as a major international gateway for landing and transshipping goods bound for domestic and foreign markets. The department shall identify and work with Washington businesses, especially minority and women-owned businesses and ethnic community-based organizations, which can utilize state assistance to increase domestic and foreign exports and are capable of increasing production of goods and services, including but not limited to manufactured goods, raw materials, services, and retail trade. The department shall participate in trade and industry exhibitions both foreign and domestic to promote and market state products and services. The department's activities shall include, but not be limited to:
(1) Operating an active and vigorous effort to market the state's products and services internationally, coordinated with private and public international trade efforts throughout the state.
(2) Coordinating with the domestic and foreign export market development activities of the state department of agriculture.
(3) Sending delegations to foreign countries and other states to promote trade with Washington.
(4) Acting as a centralized location for the assimilation and distribution of trade information.
(5) Identifying domestic and international markets in which minority and women-owned businesses may have an advantage and providing technical assistance to develop capacity for minority and women-owned businesses to participate in international trade.
NEW SECTION. Sec. 5. A new section is added to chapter 43.210 RCW to read as follows:
The small business export finance assistance center shall develop a minority business export outreach program. The program shall provide outreach services to minority-owned businesses in Washington to inform them of the importance of and opportunities in international trade, and to inform them of the export assistance programs available to assist these businesses to become exporters.
NEW SECTION. Sec. 6. A new section is added to chapter 43.31 RCW to read as follows:
ENTREPRENEURIAL TRAINING COURSES. The department of trade and economic development shall contract with public and private agencies, institutions, and organizations to conduct entrepreneurial training courses for minority and women-owned small businesses. The instruction shall be intensive, practical training courses in financing, marketing, managing, accounting, and recordkeeping for a small business, with an emphasis on federal, state, local, or private programs available to assist small businesses. The business assistance center may recommend professional instructors, with practical knowledge and experience on how to start and operate a business, to teach the courses. Instruction shall be offered in major population centers throughout the state at times and locations which are convenient for minority and women small business owners and entrepreneurs.
NEW SECTION. Sec. 7. A new section is added to chapter 43.31 RCW to read as follows:
BUSINESS ASSISTANCE CENTER MINORITY AND WOMEN BUSINESS DEVELOPMENT OFFICE. There is established within the department's business assistance center the minority and women business development office. This office shall provide business-related assistance to minorities and women as well as serve as an outreach program to increase minority and women-owned businesses' awareness and use of existing business assistance services.
NEW SECTION. Sec. 8. If specific funding for the purposes of sections 5 and 6 of this act, referencing sections 5 and 6 of this act by bill and section numbers, is not provided by June 30, 1993, in the omnibus appropriations act, sections 5 and 6 of this act are null and void.
II. FAIRNESS IN CONTRACTING AND CONCESSIONS
Sec. 9. RCW 39.19.060 and 1983 c 120 s 6 are each amended to read as follows:
Each state agency and educational institution shall comply with the annual goals established for that agency or institution under this chapter for public works and procuring goods or services. This chapter applies to all public works and procurement by state agencies and educational institutions, including all contracts and other procurement under chapters 28B.10, 39.04, 39.29, 43.19, and 47.28 RCW. Each state agency shall adopt a plan, developed in consultation with the director and the advisory committee, to insure that minority and women-owned businesses are afforded the maximum practicable opportunity to directly and meaningfully participate in the execution of public contracts for public works and goods and services. The plan shall include specific measures the agency will undertake to increase the participation of certified minority and women-owned businesses. The office shall annually notify the governor, the state auditor, and the legislative budget committee of all agencies and educational institutions not in compliance with this chapter.
NEW SECTION. Sec. 10. A new section is added to chapter 39.19 RCW to read as follows:
(1) State agencies shall not require a performance bond for any public works project that does not exceed twenty-five thousand dollars awarded to a prequalified and certified minority or woman-owned business that has been prequalified as provided under subsection (2) of this section.
(2) A limited prequalification questionnaire shall be required assuring:
(a) That the bidder has adequate financial resources or the ability to secure such resources;
(b) That the bidder can meet the performance schedule;
(c) That the bidder is experienced in the type of work to be performed; and
(d) That all equipment to be used is adequate and functioning and that all equipment operators are qualified to operate such equipment.
III. LOAN FUND AND GUARANTEES
Sec. 11. RCW 43.168.030 and 1985 c 164 s 3 are each amended to read as follows:
(1) The Washington state development loan fund committee is established as an entity within the department of community development. The committee shall have ((seven)) eight members. The director shall appoint the members, subject to the following requirements: (a) Three members shall be experienced in investment finance and have skills in providing capital to new and innovative businesses, in starting and operating businesses and providing professional services to small or expanding businesses; (b) two members shall be residents of distressed areas; (c) one member shall represent organized labor; ((and)) (d) one member shall represent a minority business; and (e) one member shall represent a women-owned business. Careful consideration in making these appointments shall be taken to ensure that the various geographic regions of the state are represented, that members will be available for meetings on a regular basis, and will have a commitment to working with local governments and local development organizations.
(2) Each member appointed by the director shall serve a term of three years, except that of the members first appointed, two shall serve two-year terms and two shall serve one-year terms. A person appointed to fill a vacancy of a member shall be appointed in a like manner and shall serve for only the unexpired term. A member is eligible for reappointment. A member may be removed by the director only for cause.
(3) The director shall designate a member of the board as its chairperson. The committee may elect such other officers as it deems appropriate. ((Four)) Five members of the committee constitute a quorum and ((four)) five affirmative votes are necessary for the transaction of business or the exercise of any power or function of the committee.
(4) The members of the committee shall serve without compensation, but are entitled to reimbursement for actual and necessary expenses incurred in the performance of official duties in accordance with RCW 43.03.050 and 43.03.060.
(5) Members shall not be liable to the state, to the fund, or to any other person as a result of their activities, whether ministerial or discretionary, as members except for wilful dishonesty or intentional violations of law. The department may purchase liability insurance for members and may indemnify these persons against the claims of others.
Sec. 12. RCW 43.168.050 and 1990 1st ex.s. c 17 s 74 are each amended to read as follows:
(1) The committee may only approve an application providing a loan for a project which the committee finds:
(a) Will result in the creation of employment opportunities ((or)), the maintenance of threatened employment, or development or expansion of business ownership by minorities and women;
(b) Has been approved by the director as conforming to federal rules and regulations governing the spending of federal community development block grant funds;
(c) Will be of public benefit and for a public purpose, and that the benefits, including increased or maintained employment, improved standard of living, ((and)) the employment of disadvantaged workers, and development or expansion of business ownership by minorities and women, will primarily accrue to residents of the area;
(d) Will probably be successful;
(e) Would probably not be completed without the loan because other capital or financing at feasible terms is unavailable or the return on investment is inadequate.
(2) The committee shall, subject to federal block grant criteria, give higher priority to economic development projects that contain provisions for child care.
(3) The committee may not approve an application if it fails to provide for adequate reporting or disclosure of financial data to the committee. The committee may require an annual or other periodic audit of the project books.
(4) The committee may require that the project be managed in whole or in part by a local development organization and may prescribe a management fee to be paid to such organization by the recipient of the loan or grant.
(5)(a) Except as provided in (b) of this subsection, the committee shall not approve any application which would result in a loan or grant in excess of three hundred fifty thousand dollars.
(b) The committee may approve an application which results in a loan or grant of up to seven hundred thousand dollars if the application has been approved by the director.
(6) The committee shall fix the terms and rates pertaining to its loans.
(7) Should there be more demand for loans than funds available for lending, the committee shall provide loans for those projects which will lead to the greatest amount of employment or benefit to a community. In determining the "greatest amount of employment or benefit" the committee shall also consider the employment which would be saved by its loan and the benefit relative to the community, not just the total number of new jobs or jobs saved.
(8) To the extent permitted under federal law the committee shall require applicants to provide for the transfer of all payments of principal and interest on loans to the Washington state development loan fund created under this chapter. Under circumstances where the federal law does not permit the committee to require such transfer, the committee shall give priority to applications where the applicants on their own volition make commitments to provide for the transfer.
(9) The committee shall not approve any application to finance or help finance a shopping mall.
(10) For loans not made to minority and women-owned businesses, the committee shall make at least eighty percent of the appropriated funds available to projects located in distressed areas, and may make up to twenty percent available to projects located in areas not designated as distressed. For loans not made to minority and women-owned businesses, the committee shall not make funds available to projects located in areas not designated as distressed if the fund's net worth is less than seven million one hundred thousand dollars.
(11) If an objection is raised to a project on the basis of unfair business competition, the committee shall evaluate the potential impact of a project on similar businesses located in the local market area. A grant may be denied by the committee if a project is not likely to result in a net increase in employment within a local market area.
(12) For loans to minority and women-owned businesses who do not meet the credit criteria, the committee may consider nontraditional credit standards to offset past discrimination that has precluded full participation of minority or women-owned businesses in the economy. For applicants with high potential who do not meet the credit criteria, the committee shall consider developing alternative borrowing methods. For applicants denied loans due to credit problems, the committee shall provide financial counseling within available resources and provide referrals to credit rehabilitation services. In circumstances of competing applications, priority shall be given to members of eligible groups which previously have been least served by this fund.
NEW SECTION. Sec. 13. A new section is added to chapter 43.168 RCW to read as follows:
Subject to the restrictions contained in this chapter, the committee is authorized to approve applications of minority and women-owned businesses for loans or loan guarantees from the fund. Applications approved by the committee under this chapter shall conform to applicable federal requirements. The committee shall prioritize available funds for loan guarantees rather than loans when possible. The committee may enter into agreements with other public or private lending institutions to develop a joint loan guarantee program for minority and women-owned businesses. If such a program is developed, the committee may provide funds, in conjunction with the other organizations, to operate the program. This section does not preclude the committee from making individual loan guarantees.
To the maximum extent practicable, the funds available under this section shall be made available on an equal basis to minority and women-owned businesses. The committee shall submit to the appropriate committees of the senate and house of representatives quarterly reports that detail the number of loans approved and the characteristics of the recipients by ethnic and gender groups.
Sec. 14. RCW 43.168.070 and 1987 c 461 s 5 are each amended to read as follows:
The committee may receive and approve applications on a monthly basis but shall receive and approve applications on at least a quarterly basis for each fiscal year. The committee shall make every effort to simplify the loan process for applicants. Department staff shall process and assist in the preparation of applications. Each application shall show in detail the nature of the project, the types and numbers of jobs to be created, wages to be paid to new employees, and methods to hire unemployed persons from the area. Each application shall contain a credit analysis of the business to receive the loan. The chairperson of the committee may convene the committee on short notice to respond to applications of a serious or immediate nature.
Sec. 15. RCW 43.168.100 and 1986 c 204 s 1 are each amended to read as follows:
The committee may make grants of state funds to local governments which qualify as "entitlement communities" under the federal law authorizing community development block grants. These grants may only be made on the condition that the entitlement community provide the committee with assurances that it will: (1) Spend the grant moneys for purposes and in a manner which satisfies state constitutional requirements; (2) spend the grant moneys for purposes and in a manner which would satisfy federal requirements; and (3) spend ((double the)) at least the same amount of the grant for loans to businesses from the federal funds received by the entitlement community.
IV. BONDING ASSISTANCE
NEW SECTION. Sec. 16. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout sections 17 through 26 of this act.
(1) "Approved surety company" means a surety company approved by the department for participation in providing direct bonding assistance to qualified contractors.
(2) "Bond" means any bond or security required for bid, payment, or performance of contracts.
(3) "Department" means the department of trade and economic development.
(4) "Program" means the Washington state small business bonding assistance program provided for in this chapter.
(5) "Qualified contractor" means any resident minority business enterprise or women's business enterprise, as determined by the department to be consistent with the requirements of chapter 39.19 RCW and engaged in the contracting business, which has obtained a certificate of accreditation from the Washington state small business bonding assistance program.
NEW SECTION. Sec. 17. PROGRAM ESTABLISHED. There is established within the department of trade and economic development the Washington state small business bonding assistance program to assist resident minority and women-owned small contracting businesses to acquire the managerial and financial skills, standards, and assistance necessary to enable them to obtain bid, payment, and performance bonds from surety companies for either advertised or designated contracts. The department shall implement the program by establishing a course of instruction as set forth in section 19 of this act. The department shall encourage surety companies and other private interests to help implement this course of instruction to assist minority and women-owned small contracting businesses. The department shall adopt rules to ensure the proper implementation of the program set forth in this chapter.
NEW SECTION. Sec. 18. ASSISTANCE. The department shall seek information, advice, and assistance from regional minority contractor organizations, and the United States small business administration and any other appropriate organization or agency.
The following departments, offices, and agencies shall, at the request of the department, provide information, advice, and assistance to the department:
(1) The department of general administration;
(2) The Washington state business assistance center;
(3) The office of the insurance commissioner;
(4) The Washington state economic development finance authority; and
(5) The office of minority and women's business enterprises.
NEW SECTION. Sec. 19. SPECIALIZED INSTRUCTION FOR SMALL CONTRACTING BUSINESSES. The business assistance center shall modify the entrepreneurial training course established in section 6 of this act in order to provide instruction which is appropriate to the specific needs of contracting businesses. This course of instruction shall be available to resident minority and women-owned small business contractors. The instruction shall be intensive, practical training courses in financing, bidding for contracts, managing, accounting, and recordkeeping for a contracting business, with an emphasis on federal, state, local, or private programs available to assist small contractors. The business assistance center shall appoint professional instructors, with practical knowledge and experience in the field of small business contracting, to teach those courses developed to meet the specific needs of contracting businesses. Instruction shall be offered in major population centers throughout the state at times and locations which are convenient for people in the contracting business.
NEW SECTION. Sec. 20. ACCREDITATION OF SMALL CONTRACTING BUSINESSES. Any resident minority or women-owned small business contractor may select a key management employee or employees to attend any course of instruction established under section 6 of this act. When the records, maintained by the business assistance center, indicate that a key management employee of a small contracting business has attended all the courses offered, and has successfully completed any tests required, the department shall award the small contracting business a certificate of accreditation which acknowledges successful completion of the courses. The department may also award a certificate of accreditation if a review of the key management employee's education, experience, and business history indicates that the business already possesses the knowledge and skills offered through the course of instruction, or if the key management employee successfully completes all tests required of those who attend the entrepreneurial training course.
NEW SECTION. Sec. 21. PROFESSIONAL SERVICES ASSISTANCE--GRANTS. Any qualified contractor seeking a grant for professional services assistance may apply to the department. If approved, the department may enter into an agreement to provide a grant of up to two thousand five hundred dollars on behalf of a qualified contractor for the acquisition of the professional services of certified public accountants, construction management companies, or any other technical, surety, financial, or managerial professionals. This assistance is only available to a qualified contractor on a one-time basis.
NEW SECTION. Sec. 22. GRANT MONITORING. The department shall administer all grants issued to assist qualified contractors and shall monitor the performance of all grant recipients in order to provide such further assistance as is necessary to ensure that all program requirements are met and that the program's purpose is fulfilled. However, nothing in this chapter should be construed to restrict the rendering of program services to any qualified contractor over and above the services provided by the grant.
NEW SECTION. Sec. 23. BOND GUARANTEE APPLICATIONS. If a qualified contractor makes a bond application to an approved surety company for a public or private contracting job, but fails to obtain the bond because the contractor is unable to meet the requirements of the surety company on such bonding contracts, for reasons other than nonperformance, and if the approved surety company applies to the department to have the bond guaranteed by the program, then the department may provide a bond guarantee of up to seventy-five thousand dollars on behalf of the qualified contractor.
NEW SECTION. Sec. 24. BOND GUARANTEE APPROVAL. Upon receipt of an approved surety company's application for a bond guarantee, the program supervisor shall review the application in order to verify that:
(1) The bond being sought by the qualified contractor is needed;
(2) The contracting job is within the qualified contractor's capability to perform; and
(3) The qualified contractor has not been denied a bond due to nonperformance.
Based upon subsections (1) through (3) of this section, the department shall either approve or disapprove the application. If the application is approved, the department has the authority to enter into a contract with the approved surety company. Under the terms of this contract the approved surety company shall enter into a contract with, and issue the required bond to, the qualified contractor at the standard fees and charges usually made by the company for the type and amount of the bond issued. The bond issued by the approved surety company shall be guaranteed by money in the program fund. The approved surety company shall also agree to make a reasonable, good faith effort to pursue and collect any claims it may have against a qualified contractor who defaults on a bond guaranteed by the program, including, but not limited to, the institution of legal proceedings against the defaulting contractor, prior to collecting on the guarantee.
NEW SECTION. Sec. 25. PROGRAM FUND ESTABLISHED. The Washington state small business bonding assistance program fund is created in the state treasury. Any amounts appropriated, donated, or granted to the program shall be deposited and credited to the program fund. Moneys in the program fund may be spent only after appropriation. Expenditures from the program fund shall only be used as follows:
(1) To pay the implementation costs of the program provided for in this chapter;
(2) To be disbursed by the department to enable qualified contractors to obtain services provided for in this chapter; and
(3) To guarantee bonds issued pursuant to sections 23 and 24 of this act and to pay such bonds in the event of default by a qualified contractor.
However, the full faith and credit of the state of Washington shall not be used to secure the bonds and the state's liability shall be limited to the money appropriated by the legislature.
NEW SECTION. Sec. 26. FUND SUPPORT. The department shall solicit funds and support from surety companies and other public and private entities with an interest in assisting Washington's small business contractors and may enter into agreements with such companies and interests by which they provide funds to the program fund to be matched with funds from nonstate sources.
NEW SECTION. Sec. 27. The department may receive gifts, grants, and endowments from public or private sources that may be made from time to time, in trust or otherwise, for the use and benefit of the Washington state small business bonding assistance program and spend gifts, grants, endowments or any income from the public or private sources according to their terms.
NEW SECTION. Sec. 28. If specific funding for the purposes of sections 16 through 27 of this act, referencing sections 16 through 27 of this act by bill and section numbers, is not provided by June 30, 1993, in the omnibus appropriations act, sections 16 through 27 of this act are null and void.
V. WASHINGTON STATE LINKED DEPOSIT PROGRAM
NEW SECTION. Sec. 29. The legislature finds that minority and women's business enterprises have been historically excluded from access to capital in the marketplace. The lack of capital has been a major barrier to the development and expansion of business by various minority groups and women. There has been a significant amount of attention on the capital needs of minority and women's business enterprises. It is the intent of the legislature to remedy the problem of a lack of access to capital by minority and women's business enterprises, and other small businesses by authorizing the state treasurer to operate a program that links state deposits to business loans by financial institutions to minority and women's business enterprises.
NEW SECTION. Sec. 30. A new section is added to chapter 43.86A RCW to read as follows:
(1) The state treasurer shall establish a linked deposit program for investment of deposits in qualified public depositaries. As a condition of participating in the program, qualified public depositaries must make qualifying loans as provided in this section. Each time certificate of deposit purchased by the state treasurer shall be equal to the amount of the qualifying loan made by the qualified public depositary. The state treasurer is authorized to set interest rates on certificates and on qualifying loans consistent with the intent of sections 29 through 33, chapter . . ., Laws of 1993 (sections 29 through 33 of this act) and sound financial practices.
(2) Qualifying loans made under this section are those that:
(a) Are loans that have terms that do not exceed five years;
(b) Are made to a minority or women's business enterprise that has received state certification under chapter 39.19 RCW;
(c) Are made to minority or women's business enterprises that are considered a small business as defined in RCW 43.31.025;
(d) Are made where the interest rate on the loan to the minority or women's business enterprise does not exceed the interest rate on the corresponding time certificate of deposit by two hundred fifty basis points;
(e) Are made where the points or fees charged at loan closing do not exceed one percent of the loan amount; and
(f) Are consistent with other criteria set by the state treasurer.
(3) In setting interest rates of time certificate of deposits, the state treasurer shall offer rates so that a two hundred basis point preference will be given to the qualified public depositary.
NEW SECTION. Sec. 31. A new section is added to chapter 43.63A RCW to read as follows:
(1) The department shall provide technical assistance and loan packaging services that enable minority and women-owned business enterprises to obtain financing under the linked deposit program created under section 30 of this act.
(2) The department shall, in consultation with the state treasurer, monitor the performance of loans made to minority and women-owned business enterprises under section 30 of this act.
Sec. 32. RCW 43.85.230 and 1984 c 177 s 20 are each amended to read as follows:
The state treasurer may deposit moneys not required to meet current demands upon a term deposit basis not to exceed ((one year)) five years at such interest rates and upon such conditions as to withdrawals of such moneys as may be agreed upon between the state treasurer and any qualified public depositary.
Sec. 33. RCW 43.86A.030 and 1982 c 74 s 1 are each amended to read as follows:
(1) Funds held in public depositaries not as demand deposits as provided in RCW 43.86A.020 and 43.86A.030, shall be available for a time certificate of deposit investment program according to the following formula: The state treasurer shall apportion to all participating depositaries an amount equal to five percent of the three year average mean of general state revenues as certified in accordance with Article VIII, section 1(b) of the state Constitution, or fifty percent of the total surplus treasury investment availability, whichever is less. Within thirty days after certification, those funds determined to be available according to this formula for the time certificate of deposit investment program shall be deposited in qualified public depositaries. These deposits shall be allocated among the participating depositaries on a basis to be determined by the state treasurer.
(2) The state treasurer may use up to fifty million dollars per year of all funds available under this section for the purposes of section 30 of this act. The amounts made available to these public depositaries shall be equal to the amounts of outstanding loans made under section 30 of this act.
(3) The formula so devised shall be a matter of public record giving consideration to, but not limited to deposits, assets, loans, capital structure, investments or some combination of these factors((: PROVIDED, That)). However, if in the judgment of the state treasurer the amount of allocation for certificates of deposit as determined by this section will impair the cash flow needs of the state treasury, the state treasurer may adjust the amount of the allocation accordingly.
NEW SECTION. Sec. 34. A new section is added to chapter 43.86A RCW to read as follows:
The state and those acting as its agents are not liable in any manner for payment of the principal or interest on qualifying loans made under section 30 of this act. Any delay in payments or defaults on the part of the borrower does not in any manner affect the deposit agreement between the qualified public depositary and the state treasurer.
NEW SECTION. Sec. 35. A new section is added to chapter 43.131 RCW to read as follows:
The linked deposit program shall be terminated on June 30, 1996, as provided in section 36 of this act.
NEW SECTION. Sec. 36. A new section is added to chapter 43.131 RCW to read as follows:
The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1997:
(1) Section 30 of this act;
(2) Section 31 of this act; and
(3) Section 34 of this act.
NEW SECTION. Sec. 37. If specific funding for the purposes of sections 29 through 36 of this act, referencing sections 29 through 36 of this act by bill and section numbers, is not provided by June 30, 1993, in the omnibus appropriations act, sections 29 through 36 of this act are null and void.
VI. MISCELLANEOUS
NEW SECTION. Sec. 38. This act may be known and cited as the omnibus minority and women-owned businesses assistance act.
NEW SECTION. Sec. 39. Sections 1, 2, and 16 through 27 of this act shall constitute a new chapter in Title 43 RCW.
NEW SECTION. Sec. 40. CAPTIONS NOT LAW. Part headings and section captions as used in this act do not constitute part of the law.
NEW SECTION. Sec. 41. 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. 42. 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, 1993."
On page 1, line 1 of the title, after "businesses;" strike the remainder of the title and insert "amending RCW 43.31.085, 43.31.055, 39.19.060, 43.168.030, 43.168.050, 43.168.070, 43.168.100, 43.85.230, and 43.86A.030; adding a new section to chapter 43.210 RCW; adding new sections to chapter 43.31 RCW; adding a new section to chapter 39.19 RCW; adding a new section to chapter 43.168 RCW; adding new sections to chapter 43.86A RCW; adding a new section to chapter 43.63A RCW; adding new sections to chapter 43.131 RCW; adding a new chapter to Title 43 RCW; creating new sections; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Wineberry moved the House refuse to concur in the Senate amendments to Engrossed Substitute House Bill No. 1493 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Wineberry, Shin and Forner as conferees on Engrossed Substitute House Bill No. 1493.
SENATE AMENDMENTS TO HOUSE BILL
April 12, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1785 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. LEGISLATIVE FINDINGS. (1) The legislature finds that the long-term health of the economy of Washington state depends on the sustainable management of its natural resources. Washington's forests, estuaries, waterways, and watersheds provide a livelihood for thousands of citizens of Washington state and millions of dollars of income and tax revenues every year from forests, fisheries, shellfisheries, recreation, tourism, and other water-dependent industries.
(2) The legislature further finds that the livelihoods and revenues produced by Washington's forests, estuaries, waterways, and watersheds are threatened by continuing degradation of water quality and habitat degradation, and that immediate investments in clean water infrastructure and habitat restoration and enhancement are required to prevent the burdening of future generations with clean-up costs, poorly functioning ecosystems, and the collapse of economically important industries that rely on a healthy environment.
(3) The legislature further finds that an insufficiency in financial resources, especially in timber-dependent communities, has resulted in investments in clean water and habitat restoration too low to ensure the long-term economic and environmental health of Washington's forests, estuaries, waterways, and watersheds.
(4) The legislature further finds that unemployed workers and Washington's economically distressed communities, especially timber-dependent areas, can benefit from opportunities for employment in environmental restoration projects.
(5) The legislature therefore declares that immediate investments in environmental restoration projects, based on sound principles of watershed management and environmental and forest restoration, are necessary to assist timber-dependent and other economically distressed communities and to rehabilitate damaged watersheds.
NEW SECTION. Sec. 2. PURPOSE AND INTENT--DEFINITIONS. (1) It is the intent of this chapter to provide financial resources to make substantial progress toward: (a) Implementing the Puget Sound water quality management plan and other watershed-based management strategies and plans; (b) ameliorating degradation to watersheds; and (c) keeping and creating stable, environmentally sound, good wage employment in Washington state. The legislature intends that employment under this chapter is not to displace or partially displace currently employed workers, including but not limited to state employees and service employees under existing contracts.
(2) It is the purpose of this chapter to:
(a) Implement clean water, forest, and habitat restoration projects that will produce measurable improvements in water and habitat quality, that rate highly when existing environmental ranking systems are applied, and that provide economic stability.
(b) Facilitate the coordination and consistency of federal, state, tribal, local, and private water and habitat protection and enhancement programs in the state's watersheds.
(c) Fund necessary projects for which a public planning process has been completed.
(d) Provide immediate funding to create jobs and training for environmental restoration and enhancement jobs for unemployed workers and displaced workers in impact areas, especially timber-dependent communities.
(3) For purposes of this chapter "impact areas" means: (a) Distressed counties as defined in RCW 43.165.010(3)(a); (b) subcounty areas in those counties not covered under (a) of this subsection that are timber impact areas as defined in RCW 43.31.601; (c) urban subcounty areas as defined in RCW 43.165.010(3)(c); and (d) areas that the task force determines are likely to experience dislocations in the near future from downturns in natural resource-based industries.
(4) For purposes of this chapter, "high-risk youth" means youth eligible for Washington conservation corps programs under chapter 43.220 RCW or Washington service corps programs under chapter 50.65 RCW.
(5) For purposes of this chapter, "dislocated forest products worker" has the meaning set forth in RCW 50.70.010.
(6) For purposes of this chapter, "task force" means the environmental enhancement and job creation task force created under section 5 of this act.
NEW SECTION. Sec. 3. ENVIRONMENTAL AND FOREST RESTORATION ACCOUNT. (1) The environmental and forest restoration account is established in the state treasury. Money in the account may be spent only after appropriation by the legislature and in a manner consistent with this chapter. Private nonprofit organizations and state, local, and tribal entities are eligible for funds under this chapter. Money in the account may be used to make grants, loans, or interagency contracts as needed to implement environmental and forest restoration projects.
(2) At least fifty percent of the funds in the environmental and forest restoration account shall be used for environmental restoration and enhancement projects in rural communities impacted by the decline in timber harvest levels as defined in chapter 50.70 RCW and that employ displaced timber workers. These projects may include watershed restoration such as removing or upgrading roads to reduce erosion and sedimentation, and improvements in forest habitat such as thinning and pruning.
(3) The environmental and forest restoration account shall consist of funds appropriated by law, principal and interest from the repayment of loans granted under this chapter, and federal and other money received by the state for deposit in the account.
(4) At least ten percent of the funds distributed from the environmental and forest restoration account annually shall be allocated to the Washington conservation corps established under chapter 43.220 RCW to employ high-risk youth on projects consistent with this chapter and to fund administrative support services required by the senior environmental corps established under chapter 43.63A RCW.
(5) At least five percent of the funds distributed from the environmental and forest restoration account annually shall be used for contracts with nonprofit corporations to fund or finance projects, including those that increase private sector investments in pollution prevention activities and equipment and that are consistent with the provisions of this section and section 4 of this act.
(6) No more than five percent of the annual revenues to the environmental and forest restoration account may be expended for administrative purposes by any state agency or project administration; however, funds expended by the Washington conservation corps shall be subject solely to the limitations set forth in RCW 43.220.230.
(7) No project may receive more than five percent of the funds distributed from the environmental and forest restoration account in a given year.
(8) Except for essential administrative and supervisory purposes, funds in the environmental and forest restoration account may not be used for hiring permanent state employees.
NEW SECTION. Sec. 4. GRANTS OR LOANS FOR ENVIRONMENTAL AND FOREST RESTORATION PROJECTS--CRITERIA. (1) Subject to the limitations of section 3 of this act, the task force shall award funds from the environmental and forest restoration account on a competitive basis. The task force shall require a contribution of local funds or resources to each project funded. The task force shall evaluate and rate environmental enhancement and restoration project proposals using the following criteria:
(a) The ability of the proponents of the project to quantify their projected improvements in water quality, habitat quality, or both;
(b) The cost-effectiveness of the project based on (i) projected costs and benefits of the project; (ii) past costs and environmental benefits of similar projects; and (iii) the ability of the project to achieve cost efficiencies through its design to meet multiple policy objectives;
(c) The ranking of the project by conservation districts as a high priority for water quality and habitat improvements;
(d) The inclusion of the project as a high priority in a federal, state, tribal, or local government plan;
(e) The number of jobs to be created by the project for dislocated forest products workers, high-risk youth, and residents of impact areas;
(f) The project's use of environmental businesses to provide training, cosponsor projects, and employ or jointly employ project participants;
(g) The ease with which the project can be administered from the community the project serves; and
(h) The extent to which the project will augment existing efforts by organizations and governmental entities involved in environmental and forest restoration in the community.
(2) The task force shall evaluate and rate proposals for training programs using the following criteria:
(a) The number of dislocated forest products workers, high-risk youth, and residents of impact areas to be trained by the project;
(b) The extent to which the training program addresses long range, high priority environmental and forest restoration needs;
(c) The cost-effectiveness of the training as measured by similar past training programs;
(d) The use of environmental businesses to assist in training; and
(e) The prospect that the training will result in high-skill, long-term, and good wage jobs.
(3) The following types of projects and programs shall be given top priority in the first fiscal year after the effective date of this act:
(a) Projects in impact areas that employ dislocated forest products workers and high-risk youth;
(b) Training programs;
(c) Projects that are highly ranked in and implement adopted and approved watershed action plans, such as those developed pursuant to Puget Sound water quality authority rules adopted for local planning and management of nonpoint source pollution;
(d) Conservation district projects that provide water quality and habitat improvements;
(e) Indian tribe projects that provide water quality and habitat improvements; or
(f) Projects that implement actions approved by a shellfish protection district under chapter 100, Laws of 1992.
(4) Funds shall not be awarded for the following activities:
(a) Administrative rule making;
(b) Planning; or
(c) Public education.
NEW SECTION. Sec. 5. ENVIRONMENTAL ENHANCEMENT AND JOB CREATION TASK FORCE. (1) There is created the environmental enhancement and job creation task force within the office of the governor. The purpose of the task force is to provide a coordinated and comprehensive approach to implementation of chapter . . ., Laws of 1993 (this act). The task force shall consist of the commissioner of public lands, the director of the department of wildlife, the director of the department of fisheries, the director of the department of ecology, the timber team coordinator, the executive director of the work force training and education coordinating board, and the executive director of the Puget sound water quality authority, or their designees. The task force may seek the advice of the following agencies and organizations: The department of community development, the department of trade and economic development, the conservation commission, the employment security department, appropriate federal agencies and special districts, the Washington state association of counties, the association of Washington cities, labor organizations, business organizations, timber-dependent communities, environmental organizations, and Indian tribes. The governor shall appoint the task force chair. Members of the task force shall serve without additional pay. Participation in the work of the committee by agency members shall be considered in performance of their employment. The governor shall designate staff and administrative support to the task force and shall solicit the participation of agency personnel to assist the task force.
(2) The task force shall have the following responsibilities:
(a) Soliciting and evaluating, in accordance with the criteria set forth in section 4 of this act, requests for funds from the environmental and forest restoration account and making distributions from the account. The task force shall award funds for projects and training programs it approves and may allocate the funds to state agencies for disbursement and contract administration;
(b) Coordinating a process to assist state agencies and local governments to implement effective environmental and forest restoration projects funded under this chapter;
(c) Considering unemployment profile data provided by the employment security department;
(d) No later than December 31, 1993, providing recommendations to the appropriate standing committees of the legislature for improving the administration of grants for projects or training programs funded under this chapter that prevent habitat and environmental degradation or provide for its restoration;
(e) Submitting to the appropriate standing committees of the legislature a biennial report summarizing the jobs and the environmental benefits created by the projects funded under this chapter.
(3) Beginning July 1, 1994, the task force shall have the following responsibilities:
(a) To solicit and evaluate proposals from state and local agencies, private nonprofit organizations, and tribes for environmental and forest restoration projects;
(b) To rank the proposals based on criteria developed by the task force in accordance with section 4 of this act; and
(c) To determine funding allocations for projects to be funded from the account created in section 3 of this act and for projects or programs as designated in the omnibus operating and capital appropriations acts.
NEW SECTION. Sec. 6. FIRST YEAR PROJECT FUNDING. The legislature recognizes the need for immediate job creation and environmental and forest restoration, especially in timber-dependent communities. For fiscal year 1994, funding to implement the purposes of this chapter shall be provided through individual agency appropriations as specified in the omnibus operating and capital appropriations acts.
NEW SECTION. Sec. 7. UNANTICIPATED FEDERAL FUNDS. When an agency submits an unanticipated federal receipt under RCW 43.79.270, the governor shall consider placing these funds into the environmental and forest restoration account or requiring that the funds be used in a manner consistent with the criteria established in section 4 of this act.
NEW SECTION. Sec. 8. RECRUITMENT AND EMPLOYMENT. (1) Eligibility for training or employment in projects funded through the environmental and forest restoration account shall, to the extent practicable, be for workers who are currently unemployed.
(2) To the greatest extent practicable, the following groups of individuals shall be given preference for training or employment in projects funded through the environmental and forest restoration account:
(a) Dislocated forest products workers who are receiving unemployment benefits or have exhausted unemployment benefits; and
(b) High-risk youth.
(3) Projects funded for forest restoration shall be for workers whose employment was terminated in the Washington forest products industry within the previous four years.
(4) The task force shall submit a list to private industry councils and the employment security department of projects receiving funds under the provisions of this chapter. The list shall include the number, location, and types of jobs expected to be provided by each project. The employment security department shall recruit workers for these jobs by:
(a) Notifying dislocated forest workers who meet the definitions in chapter 50.70 RCW, who are receiving unemployment benefits or who have exhausted unemployment benefits, of their eligibility for the programs;
(b) Notifying other unemployed workers;
(c) Developing a pool of unemployed workers including high-risk youth eligible to enroll in the program; and
(d) Establishing procedures for workers to apply to the programs.
(5) The employment security department shall refer eligible workers to employers hiring under the environmental and forest restoration account programs. Recipients of funds shall consider the list of eligible workers developed by the employment security department before conducting interviews or making hiring decisions. Workers shall receive opportunities for vocational training, job placement, and remedial education.
(6) An individual is eligible for applicable employment security benefits while participating in training related to this chapter. Eligibility shall be confirmed by the commissioner of employment security by submitting a commissioner-approved training waiver.
(7) Persons receiving funds from the environmental and forest restoration account shall not be considered state employees for the purposes of existing provisions of law with respect to hours of work, sick leave, vacation, and civil service but shall receive health benefits. Persons receiving funds from this account who are hired by a state agency, except for Washington conservation and service corps enrollees, shall receive medical and dental benefits as provided under chapter 41.05 RCW and industrial insurance coverage under Title 51 RCW, but are exempt from the provisions of chapter 41.06 RCW.
(8) Compensation for employees, except for Washington conservation and service corps enrollees, hired under the program established by this chapter shall be based on market rates in accordance with the required skill and complexity of the jobs created. Remuneration paid to employees under this chapter shall be considered covered employment for purposes of chapter 50.04 RCW.
(9) Employment under this program shall not result in the displacement or partial displacement, whether by the reduction of hours of nonovertime work, wages, or other employment benefits, of currently employed workers, including but not limited to state civil service employees, or of currently or normally contracted services.
NEW SECTION. Sec. 9. An individual shall be considered to be in training with the approval of the commissioner as defined in RCW 50.20.043, and be eligible for applicable unemployment insurance benefits while participating in and making satisfactory progress in training related to this chapter.
NEW SECTION. Sec. 10. For the purpose of providing the protection of the unemployment compensation system to individuals at the conclusion of training or employment obtained as a result of this chapter, a special base year and benefit year are established.
(1) Only individuals who have entered training or employment provided by the environmental and forest restoration account, and whose employment or training under such account was not considered covered under chapter 50.04 RCW, shall be allowed the special benefit provisions of this chapter.
(2) An application for initial determination made under this chapter must be filed in writing with the employment security department within twenty-six weeks following the week in which the individual commenced employment or training obtained as a result of this chapter. Notice from the individual, from the employing entity, or notice of hire from employment security department administrative records shall satisfy this requirement.
(3) For the purpose of this chapter, a special base year is established for an individual consisting of the first four of the last five completed calendar quarters, or if a benefit year is not established using the first four of the last five completed calendar quarters as the base year, the last four completed calendar quarters immediately prior to the first day of the calendar week in which the individual began employment or training provided by the environmental and forest restoration account.
(4) A special individual benefit year is established consisting of the entire period of training or employment provided by the environmental and forest restoration account and a fifty-two consecutive week period commencing with the first day of the calendar week in which the individual last participated in such employment or training. No special benefit year shall have a duration in excess of three hundred twelve calendar weeks. Such special benefit year will not be established unless the criteria contained in RCW 50.04.030 has been met, except that an individual meeting the requirements of this chapter and who has an unexpired benefit year established which would overlap the special benefit year may elect to establish a special benefit year under this chapter, notwithstanding the provisions in RCW 50.04.030 relating to establishment of a subsequent benefit year, and RCW 50.40.010 relating to waiver of rights. Such unexpired benefit year shall be terminated with the beginning of the special benefit year if the individual elects to establish a special benefit year under this chapter.
(5) The individual's weekly benefit amount and maximum amount payable during the special benefit year shall be governed by the provisions contained in RCW 50.20.120. The individual's basic and continuing right to benefits shall be governed by the general laws and rules relating to the payment of unemployment compensation benefits to the extent that they are not in conflict with the provisions of this chapter.
(6) The fact that wages, hours, or weeks worked during the special base year may have been used in computation of a prior valid claim for unemployment compensation shall not affect a claim for benefits made under the provisions of this chapter. However, wages, hours, and weeks worked used in computing entitlement on a claim filed under this chapter shall not be available or used for establishing entitlement or amount of benefits in any succeeding benefit year.
(7) Benefits paid to an individual filing under the provisions of this section shall not be charged to the experience rating account of any contribution paying employer.
NEW SECTION. Sec. 11. On or before June 30, 1998, the legislative budget committee shall prepare a report to the legislature evaluating the implementation of the environmental restoration jobs act of 1993, chapter . . , Laws of 1993 (this act).
Sec. 12. RCW 43.220.900 and 1987 c 367 s 5 are each amended to read as follows:
The Washington conservation corps shall cease to exist and chapter 43.220 RCW shall expire on July 1, ((1995, unless extended by law for an additional fixed period of time)) 2000.
NEW SECTION. Sec. 13. SHORT TITLE. This act shall be known as the environmental restoration jobs act of 1993.
NEW SECTION. Sec. 14. CAPTIONS AND PART HEADINGS. Section captions and part headings as used in this act constitute no part of the law.
NEW SECTION. Sec. 15. SEVERABILITY. 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. 16. Sections 1 through 11 of this act shall constitute a new chapter in Title 43 RCW.
NEW SECTION. Sec. 17. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is hereby declared to be inoperative solely to the extent of the conflict, and such finding or determination shall not affect the operation of the remainder of this act. The rules under this act shall meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.
NEW SECTION. Sec. 18. EFFECTIVE DATE. 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, 1993."
On page 1, line 2 of the title, after "watersheds;" strike the remainder of the title and insert "amending RCW 43.220.900; adding a new chapter to Title 43 RCW; creating new sections; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Rust moved the House refuse to concur in the Senate amendments to Engrossed Substitute House Bill No. 1785 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Rust, J. Kohl and Horn as conferees on Engrossed Substitute House Bill No. 1785.
SENATE AMENDMENTS TO HOUSE BILL
April 16, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1808 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that the expansion of international trade is vital to the economy of Washington state. International trade-related activities currently account for approximately twenty percent of employment in this state even though only a small percentage of businesses do extensive exporting. Washington's long-term economic prosperity depends on the creation and retention of jobs that international trade provides through providing an expanded marketplace for goods and services produced in this state. Increasing the number of businesses exporting and the foreign markets accessed helps diversify the state economy and make the state's businesses more competitive by providing experience in the international marketplace. There are many international markets that offer export potential for Washington businesses that are not currently being accessed, particularly several Pacific Rim countries. The legislature also finds that there presently exists several programs and initiatives by federal, state, and local governments that have to be coordinated effectively within and among economic development organizations, state agencies, academic institutions, and businesses so as to enhance the sale of goods and services in foreign markets.
The legislature further finds that a strategy to expand international trade must be integrated into a comprehensive long-term economic development plan, and that the expertise of the private sector can enhance the joint strategic planning efforts of the governor, executive agencies, and the legislature.
Therefore, the legislature declares that an important public purpose can be accomplished through an international trade council that, through coordination and advice, can facilitate increased exporting by Washington businesses.
NEW SECTION. Sec. 2. A new section is added to chapter 44.52 RCW to read as follows:
(1) The council on international trade is established. The council shall consist of fifteen members as follows:
(a) Two members of trade organizations, appointed by the governor;
(b) Two representatives of ports, appointed by the governor;
(c) Three representatives of businesses active in exporting goods, appointed by the governor;
(d) Three representatives from the executive-legislative committee on economic development created in chapter ..., (Senate Bill No. 5300), Laws of 1993;
(e) Two members with experience in foreign marketing, appointed by the governor;
(f) Two experts in financing export transactions, appointed by the governor; and
(g) The director of the department of trade and economic development.
(2) Nonlegislative members may receive reimbursement from the governor's office for travel under RCW 43.03.050 and 43.03.060. Legislative members may be reimbursed under RCW 41.04.300.
(3) The council shall:
(a) Advise the executive-legislative committee on economic development regarding policies, programs, and activities to enhance the exporting of Washington goods and services to international markets;
(b) Review current state export targeting efforts and advise the executive-legislative committee on economic development regarding markets with potential that currently are not being emphasized;
(c) Assist in the coordination of public export programs state-wide;
(d) Identify for the executive-legislative committee on economic development current and long-term international trade issues that need to be addressed by the state in its long-term economic development plan;
(e) Recommend methods to increase the awareness of international trade, especially its opportunities and its importance, throughout the state;
(f) Study the impact of the Uruguay round of the general agreement on tariffs and trade and the north american free trade agreement on the state's small manufacturing and export firms, focusing on the competitive threats and opportunities presented by the trade agreements to the state's six most significant traded sectors as measured by the number of employees in the sector and the aggregate dollar volume of goods and services traded in the sector. The counsel shall identify and utilize existing analyses, studies, and data from the federal government, national and state business and labor organizations, and educational and policy institutes.
NEW SECTION. Sec. 3. The council may accept gifts, grants, donations, devises, and bequests to facilitate the work of the council.
NEW SECTION. Sec. 4. The council shall make a preliminary report to the executive-legislative committee on economic development on its activities by June 1, 1994, and make a final report by December 1, 1994.
NEW SECTION. Sec. 5. This act shall expire on June 30, 1995.
On page 1, line 1 of the title, after "trade;" strike the remainder of the title and insert "adding a new section to chapter 44.52 RCW; creating new sections; and providing an expiration date."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Wineberry moved the House refuse to concur in the Senate amendments to Substitute House Bill No. 1808 and ask the Senate for a Conference thereon. The motion was carried.
SENATE AMENDMENTS TO HOUSE BILL
April 14, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1870 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature declares that the licensing of bail bond agents should be uniform throughout the state. Therefore, it is the intent of the legislature to preempt any local regulation of bail bond agents, including licensing fees, but not including local business license fees. Nothing in this chapter limits the discretion of the courts of this state to accept or reject a particular surety or recognizance bond in a particular case.
NEW SECTION. Sec. 2. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Department" means the department of licensing.
(2) "Director" means the director of licensing.
(3) "Collateral or security" means property of any kind given as security to obtain a bail bond.
(4) "Bail bond agency" means a business that sells and issues corporate surety bail bonds or that provides security in the form of personal or real property to insure the appearance of a criminal defendant before the courts of this state or the United States.
(5) "Qualified agent" means an owner, sole proprietor, partner, manager, officer, or chief operating officer of a corporation who meets the requirements set forth in this chapter for obtaining a bail bond agency license.
(6) "Bail bond agent" means a person who is employed by a bail bond agency and engages in the sale or issuance of bail bonds, but does not mean a clerical, secretarial, or other support person who does not participate in the sale or issuance of bail bonds.
(7) "Licensee" means a bail bond agency or a bail bond agent or both.
NEW SECTION. Sec. 3. An applicant must meet the following minimum requirements to obtain a bail bond agent license:
(1) Be at least eighteen years of age;
(2) Be a citizen or resident alien of the United States;
(3) Not have been convicted of a crime in any jurisdiction in the preceding ten years, if the director determines that the applicant's particular crime directly relates to a capacity to perform the duties of a bail bond agent and the director determines that the license should be withheld to protect the citizens of Washington state. If the director shall make a determination to withhold a license because of previous convictions, the determination shall be consistent with the restoration of employment rights act, chapter 9.96A RCW;
(4) Be employed by a bail bond agency or be licensed as a bail bond agency; and
(5) Pay the required fee.
NEW SECTION. Sec. 4. (1) In addition to meeting the minimum requirements to obtain a license as a bail bond agent, a qualified agent must meet the following additional requirements to obtain a bail bond agency license:
(a) Pass an examination determined by the director to measure the person's knowledge and competence in the bail bond agency business; or
(b) Have had at least three years' experience as a manager, supervisor, or administrator in the bail bond business or a related field as determined by the director. A year's experience means not less than two thousand hours of actual compensated work performed before the filing of an application. An applicant shall substantiate the experience by written certifications from previous employers. If the applicant is unable to supply written certifications from previous employers, applicants may offer written certifications from persons other than employers who, based on personal knowledge, can substantiate the employment; and
(c) Pay any additional fees as established by the director.
(2) An agency license issued under this section may not be assigned or transferred without prior written approval of the director.
NEW SECTION. Sec. 5. (1) Applications for licenses required under this chapter shall be filed with the director on a form provided by the director. The director may require any information and documentation that reasonably relates to the need to determine whether the applicant meets the criteria, which may include fingerprints.
(2) After receipt of an application for a license, the director may conduct an investigation to determine whether the facts set forth in the application are true.
NEW SECTION. Sec. 6. (1) The director shall issue a bail bond agent license card to each licensed bail bond agent. A bail bond agent shall carry the license card whenever he or she is performing the duties of a bail bond agent and shall exhibit the card upon request.
(2) The director shall issue a license certificate to each licensed bail bond agency.
(a) Within seventy-two hours after receipt of the license certificate, the licensee shall post and display the certificate in a conspicuous place in the principal office of the licensee within the state.
(b) It is unlawful for any person holding a license certificate to knowingly and willfully post the license certificate upon premises other than those described in the license certificate or to materially alter a license certificate.
(c) Every advertisement by a licensee that solicits or advertises business shall contain the name of the licensee, the address of record, and the license number as they appear in the records of the director.
(d) The licensee shall notify the director within thirty days of any change in the licensee's officers or directors or any material change in the information furnished or required to be furnished to the director.
NEW SECTION. Sec. 7. (1) The director shall adopt rules establishing prelicense training and testing requirements, which shall include a minimum of four hours of classes. The director may establish, by rule, continuing education requirements for bail bond agents.
(2) The director shall consult with the bail bond industry before adopting or amending the prelicensing training or continuing education requirements of this section.
(3) The director may appoint an advisory committee consisting of representatives from the bail bond industry and a consumer to assist in the development of rules to implement this chapter.
(4) A bail bond agent need not fulfill the prelicensing training requirements of this chapter if he or she, within sixty days prior to July 1, 1994, provides proof to the director that he or she previously has met the training requirements of this chapter or has been employed as a bail bond agent for at least eighteen consecutive months immediately prior to the date of application.
NEW SECTION. Sec. 8. (1) No bail bond agency license may be issued under the provisions of this chapter unless the qualified agent files with the director a bond, executed by a surety company authorized to do business in this state, in the sum of ten thousand dollars conditioned to recover against the agency and its servants, officers, agents, and employees by reason of its violation of the provisions of section 11 of this act. The bond shall be made payable to the state of Washington, and anyone so injured by the agency or its servants, officers, agents, or employees may bring suit upon the bond in any county in which jurisdiction over the licensee may be obtained. The suit must be brought not later than two years after the failure to return property in accordance with section 11 of this act. If valid claims against the bond exceed the amount of the bond or deposit, each claimant shall be entitled only to a pro rata amount, based on the amount of the claim as it is valid against the bond, without regard to the date of filing of any claim or action.
(2) Every licensed bail bond agency must at all times maintain on file with the director the bond required by this section in full force and effect. Upon failure by a licensee to do so, the director shall suspend the licensee's license and shall not reinstate the license until this requirement is met.
(3) In lieu of posting a bond, a qualified agent may deposit in an interest-bearing account, ten thousand dollars.
(4) The director may waive the bond requirements of this section, in his or her discretion, pursuant to adopted rules.
NEW SECTION. Sec. 9. (1) The provisions of this chapter relating to the licensing for regulatory purposes of bail bond agents and bail bond agencies are exclusive. No governmental subdivision of this state may enact any laws or rules licensing for regulatory purposes such persons, except as provided in subsections (2) and (3) of this section.
(2) This section shall not be construed to prevent a political subdivision of this state from levying a business fee, business and occupation tax, or other tax upon bail bond agencies if such fees or taxes are levied by the political subdivision on other types of businesses within its boundaries.
(3) This section shall not be construed to prevent this state or a political subdivision of this state from licensing for regulatory purposes bail bond agencies with respect to activities that are not regulated under this chapter.
NEW SECTION. Sec. 10. (1) A bail bond agency shall notify the director within thirty days after the death or termination of employment of any employee who is a licensed bail bond agent.
(2) A bail bond agency shall notify the director within seventy-two hours upon receipt of information affecting a licensed bail bond agent's continuing eligibility to hold a license under the provisions of this chapter.
NEW SECTION. Sec. 11. (1) Every qualified agent shall keep adequate records for three years of all collateral and security received, all trust accounts required by this section, and all bail bond transactions handled by the bail bond agency, as specified by rule. The records shall be open to inspection without notice by the director or authorized representatives of the director.
(2) Every qualified agent who receives collateral or security is a fiduciary of the property and shall keep adequate records for three years of the receipt, safekeeping, and disposition of the collateral or security. Every qualified agent shall maintain a trust account in a federally insured financial institution located in this state. All moneys, including cash, checks, money orders, wire transfers, and credit card sales drafts, received as collateral or security or otherwise held for a bail bond agency's client shall be deposited in the trust account not later than the third banking day following receipt of the funds or money. A qualified agent shall not in any way encumber the corpus of the trust account or commingle any other moneys with moneys properly maintained in the trust account. Each qualified agent required to maintain a trust account shall report annually under oath to the director the account number and balance of the trust account, and the name and address of the institution that holds the trust account, and shall report to the director within ten business days whenever the trust account is changed or relocated or a new trust account is opened.
(3) Whenever a bail bond is exonerated by the court, the bail bond agency shall, within five business days after written notification of exoneration and upon demand, return all collateral or security to the person entitled thereto.
NEW SECTION. Sec. 12. The following acts are prohibited and constitute grounds for disciplinary action or denial, suspension, or revocation of any license under this chapter, as deemed appropriate by the director:
(1) Knowingly violating any of the provisions of this chapter or the rules adopted under this chapter;
(2) Knowingly making a material misstatement or omission in the application for or renewal of a license;
(3) Failing to meet the qualifications set forth in sections 3 and 4 of this act;
(4) Conviction of a gross misdemeanor or felony or the commission of any act involving moral turpitude, dishonesty, or corruption whether the act constitutes a crime or not. If the act constitutes a crime, conviction in a criminal proceeding is not a condition precedent to disciplinary action. Upon such a conviction, however, the judgment and sentence is conclusive evidence at the ensuing disciplinary hearing of the guilt of the license holder or applicant of the crime described in the indictment or information, and of the person's violation of the statute on which it is based. For the purposes of this section, conviction includes all instances in which a plea of guilty or nolo contendere is the basis for the conviction and all proceedings in which the sentence has been deferred or suspended. Nothing in this section abrogates rights guaranteed under chapter 9.96A RCW;
(5) Advertising that is false, fraudulent, or misleading;
(6) Incompetence or negligence that results in injury to a person or that creates an unreasonable risk that a person may be harmed;
(7) Suspension, revocation, or restriction of the individual's license to practice the profession by competent authority in any state, federal, or foreign jurisdiction, a certified copy of the order, stipulation, or agreement being conclusive evidence of the revocation, suspension, or restriction;
(8) Failure to cooperate with the director by not:
(a) Furnishing any necessary papers or documents requested by the director for purposes of conducting an investigation for disciplinary action, denial, suspension, or revocation of a license under this chapter;
(b) Furnishing in writing a full and complete explanation covering the matter contained in a complaint filed with the department; or
(c) Responding to subpoenas issued by the director, whether or not the recipient of the subpoena is the accused in the proceeding;
(9) Failure to comply with an order issued by the director or an assurance of discontinuance entered into with the director;
(10) Aiding or abetting an unlicensed person to practice if a license is required;
(11) Knowingly committing, or being a party to, any material fraud, misrepresentation, concealment, conspiracy, collusion, trick, scheme, or device whereby any other person lawfully relies upon the word, representation, or conduct of the licensee;
(12) Failure to adequately supervise employees to the extent that the client funds are at risk;
(13) Interference with an investigation or disciplinary proceeding by willful misrepresentation of facts before the director or the director's authorized representative, or by the use of threats or harassment against any client or witness to prevent them from providing evidence in a disciplinary proceeding or any other legal action;
(14) Assigning or transferring any license issued pursuant to the provisions of this chapter, except as provided in section 4 of this act;
(15) Conversion of any money or contract, deed, note, mortgage, or other evidence of title, to his or her own use or to the use of his or her principal or of any other person, when delivered to him or her in trust or on condition, in violation of the trust or before the happening of the condition; and failure to return any money or contract, deed, note, mortgage, or other evidence of title within thirty days after the owner is entitled to possession, and makes demand for possession, shall be prima facie evidence of conversion;
(16) Failing to keep records, maintain a trust account, or return collateral or security, as required by section 11 of this act;
(17) Any conduct in a bail bond transaction which demonstrates bad faith, dishonesty, or untrustworthiness; or
(18) Violation of an order to cease and desist that is issued by the director under this chapter.
NEW SECTION. Sec. 13. The director has the following authority in administering this chapter:
(1) To adopt, amend, and rescind rules as deemed necessary to carry out this chapter;
(2) To issue an order providing for one or any combination of the following upon violation or violations of this chapter: Denying, suspending, or revoking a license; assessing monetary penalties; restricting or limiting practice; complying with conditions of probation for a designated period of time; making restitution to the person harmed by the licensee; or other corrective action;
(3) To issue subpoenas and administer oaths in connection with an investigation, hearing, or proceeding held under this chapter;
(4) To take or cause depositions to be taken and use other discovery procedures as needed in an investigation, hearing, or proceeding held under this chapter;
(5) To compel attendance of witnesses at hearings;
(6) To establish fees by rule under RCW 43.24.086 and chapter 34.05 RCW;
(7) To take emergency action ordering summary suspension of a license, or restriction or limitation of the licensee's practice pending proceedings by the director;
(8) To use the office of administrative hearings as authorized in chapter 34.12 RCW to conduct hearings. However, the director or the director's designee shall make the final decision in the hearing;
(9) To enter into contracts for professional services determined to be necessary for adequate enforcement of this chapter;
(10) To adopt standards of professional conduct or practice;
(11) In the event of a finding of unprofessional conduct by an applicant or license holder, to impose sanctions against an applicant or license holder as provided by this chapter;
(12) To enter into an assurance of discontinuance in lieu of issuing a statement of charges or conducting a hearing. The assurance shall consist of a statement of the law in question and an agreement to not violate the stated provision. The applicant or license holder shall not be required to admit to any violation of the law, and the assurance shall not be construed as such an admission. Violation of an assurance under this subsection is grounds for disciplinary action;
(13) To designate individuals authorized to sign subpoenas and statements of charges; and
(14) To employ such investigative, administrative, and clerical staff as necessary for the enforcement of this chapter.
NEW SECTION. Sec. 14. Any person may submit a written complaint to the department charging a license holder or applicant with unprofessional conduct and specifying the grounds for the charge. If the director determines that the complaint merits investigation, or if the director has reason to believe, without a formal complaint, that a license holder or applicant may have engaged in unprofessional conduct, the director shall investigate to determine if there has been unprofessional conduct. A person who files a complaint under this section in good faith is immune from suit in any civil action related to the filing or contents of the complaint.
NEW SECTION. Sec. 15. (1) If the director determines, upon investigation, that there is reason to believe a violation of this chapter has occurred, a statement of charges shall be prepared and served upon the license holder or applicant and notice of this action given to the owner or qualified agent of the employing bail bond agency. The statement of charges shall be accompanied by a notice that the license holder or applicant may request a hearing to contest the charges. The license holder or applicant must file a request for hearing with the department within twenty days after being served the statement of charges. The failure to request a hearing constitutes a default, whereupon the director may enter an order under RCW 34.05.440.
(2) If a hearing is requested, the time of the hearing shall be scheduled but the hearing shall not be held earlier than thirty days after service of the charges upon the license holder or applicant. A notice of hearing shall be issued at least twenty days prior to the hearing, specifying the time, date, and place of the hearing.
NEW SECTION. Sec. 16. The procedures governing adjudicative proceedings before agencies under chapter 34.05 RCW, the administrative procedure act, shall govern all hearings before the director.
NEW SECTION. Sec. 17. If an order for payment of a monetary penalty is made as a result of a hearing and timely payment is not made as directed in the final order, the director may enforce the order for payment in the superior court in the county in which the hearing was held. This right of enforcement shall be in addition to any other rights the director may have as to a licensee ordered to pay a monetary penalty but shall not be construed to limit a licensee's ability to seek judicial review.
In an action for enforcement of an order of payment of a monetary penalty, the director's order is conclusive proof of the validity of the order of payment of a penalty and the terms of payment.
NEW SECTION. Sec. 18. (1) The director shall investigate complaints concerning practice by unlicensed persons of a profession or business for which a license is required by this chapter. In the investigation of the complaints, the director has the same authority as provided the director under section 15 of this act. The director shall issue a cease and desist order to a person after notice and hearing and upon a determination that the person has violated this subsection. If the director makes a written finding of fact that the public interest will be irreparably harmed by delay in issuing an order, the director may issue a temporary cease and desist order. The cease and desist order shall not relieve the person practicing or operating a business without a license from criminal prosecution therefor, but the remedy of a cease and desist order shall be in addition to any criminal liability. The cease and desist order is conclusive proof of unlicensed practice and may be enforced under RCW 7.21.060. This method of enforcement of the cease and desist order may be used in addition to, or as an alternative to, any provisions for enforcement of agency orders.
(2) The attorney general, a county prosecuting attorney, the director, or any person may, in accordance with the law of this state governing injunctions, maintain an action in the name of this state to enjoin any person practicing a profession or business for which a license is required by this chapter without a license from engaging in such practice or operating such business until the required license is secured. However, the injunction shall not relieve the person practicing or operating a business without a license from criminal prosecution therefor, but the remedy by injunction shall be in addition to any criminal liability.
(3) After June 30, 1994, any person who performs the functions and duties of a bail bond agent in this state without being licensed in accordance with the provisions of this chapter, or any person presenting or attempting to use as his or her own the license of another, or any person who gives false or forged evidence of any kind to the director in obtaining a license, or any person who falsely impersonates any other licensee, or any person who attempts to use an expired or revoked license, or any person who violates any of the provisions of this chapter is guilty of a gross misdemeanor.
(4) After January 1, 1994, a person is guilty of a gross misdemeanor if he or she owns or operates a bail bond agency in this state without first obtaining a bail bond agency license.
(5) After June 30, 1994, the owner or qualified agent of a bail bond agency is guilty of a gross misdemeanor if he or she employs any person to perform the duties of a bail bond agent without the employee having in his or her possession a permanent bail bond agent license issued by the department.
(6) All fees, fines, forfeitures, and penalties collected or assessed by a court because of a violation of this section shall be remitted to the department.
NEW SECTION. Sec. 19. A person or business that violates an injunction issued under this chapter shall pay a civil penalty, as determined by the court, of not more than twenty-five thousand dollars, which shall be paid to the department. For the purpose of this section, the superior court issuing any injunction shall retain jurisdiction.
NEW SECTION. Sec. 20. The director or individuals acting on the director's behalf are immune from suit in any action, civil or criminal, based on disciplinary proceedings or other official acts performed in the course of their duties in the administration and enforcement of this chapter.
NEW SECTION. Sec. 21. The director, in implementing and administering the provisions of this chapter, shall act in accordance with the administrative procedure act, chapter 34.05 RCW.
NEW SECTION. Sec. 22. Failure to fulfill the fiduciary duties and other duties as prescribed in section 11 of this act is not reasonable in relation to the development and preservation of business. A violation of section 11 of this act is an unfair or deceptive act in trade or commerce for the purpose of applying the consumer protection act, chapter 19.86 RCW.
NEW SECTION. Sec. 23. 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. 24. The director of licensing may take such steps as are necessary to ensure that this act is implemented on its effective date.
NEW SECTION. Sec. 25. 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, 1993.
NEW SECTION. Sec. 26. Sections 1 through 23 of this act shall constitute a new chapter in Title 18 RCW."
On page 1, line 1 of the title, after "agents;" strike the remainder of the title and insert "adding a new chapter to Title 18 RCW; creating a new section; prescribing penalties; providing an effective date; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Zellinsky moved the House do concur in the Senate amendments to Substitute House Bill No. 1870 and pass the bill as amended by the Senate.
Representative Mielke spoke in favor of the motion and it was carried.
On motion of Representative J. Kohl, Representatives Cothern and Dorn were excused.
On motion of Representative Wood, Representative Casada were excused.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Substitute House Bill No. 1870 as amended by the Senate.
ROLL CALL
The Clerk called the roll on final passage of Substitute House Bill No. 1870 as amended by the Senate and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 0, Excused - 4.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brown, Brumsickle, Campbell, Carlson, Chandler, Chappell, Cole, G., Conway, Cooke, Dellwo, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Morton, Myers, H., Ogden, Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thibaudeau, Thomas, Valle, Vance, Van Luven, Veloria, Wang, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 94.
Excused: Representatives Brough, Casada, Cothern and Dorn - 4.
Substitute House Bill No. 1870, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 16, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1855, with the following amendments:
On page 17, line 25, after "to" strike "shareholder" and insert "shareholders or"
On page 114, after line 2, insert the following:
"NEW SECTION. Sec. 110. A new section is added to chapter 48.01 RCW to read as follows:
The activities and operations of mental health regional support networks, to the extent they pertain to the operation of a medical assistance managed care system in accordance with chapters 71.24 and 74.09 RCW, are exempt from the requirements of this title."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Zellinsky moved the House refuse to concur in the Senate amendments to Substitute House Bill No. 1855 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Zellinsky, Kessler and Mielke as conferees on Substitute House Bill No. 1855.
SENATE AMENDMENTS TO HOUSE BILL
April 16, 1993
Mr. Speaker:
The Senate has passed SUBSTITUTE HOUSE BILL NO. 1912 with the following amendments:
On page 2, line 28, after "order of the" strike "Walla Walla"
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Mastin moved the House do concur in the Senate amendments to Substitute House Bill No. 1912 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker (Representative R. Meyers presiding) stated the question before the House to be final passage of Substitute House Bill No. 1912 as amended by the Senate.
Representative Mastin spoke in favor of passage of the bill.
ROLL CALL
The Clerk called the roll on final passage of Substitute House Bill No. 1912 as amended by the Senate and the bill passed the House by the following vote: Yeas - 92, Nays - 2, Absent - 0, Excused - 4.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brown, Brumsickle, Campbell, Carlson, Chandler, Chappell, Cole, G., Conway, Cooke, Dellwo, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Fuhrman, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Morton, Myers, H., Ogden, Orr, Padden, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Stevens, Talcott, Tate, Thomas, Valle, Vance, Van Luven, Veloria, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 92.
Voting nay: Representatives Thibaudeau and Wang - 2.
Excused: Representatives Brough, Casada, Cothern and Dorn - 4.
Substitute House Bill No. 1912, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 15, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1966 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. Pursuant to the work of the juvenile justice task force created by the 1991 legislature to undertake a study of Washington state's juvenile justice system, the department of social and health services and the commission on African-American affairs commissioned an independent study of racial disproportionality in the state's juvenile justice system. The study team, which documented evidence of disparity in the treatment of juvenile offenders of color throughout the system, provided recommendations to the legislature on December 15, 1992. The study recommends cultural diversity training for juvenile court and law enforcement personnel, expanded data collection on juvenile offenders throughout the system, development of uniform prosecutorial standards for juvenile offenders, changes to the consolidated juvenile services program and funding formula, dissemination of information to families and communities regarding juvenile court procedures, and examination of juvenile disposition standards for racial and/or ethnic bias.
It is the intent of the legislature to implement the recommendations of this study in an effort to discourage differential treatment of youth of color and their families who come in contact with the juvenile courts in this state, and to promote racial and ethnic sensitivity and awareness throughout the juvenile court system.
NEW SECTION. Sec. 2. The administrator for the courts shall develop a plan to improve the collection and reporting of information on juvenile offenders by all juvenile courts in the state. The information related to juvenile offenders shall include, but is not limited to, social, demographic, education, and economic data on juvenile offenders and where possible, their families. Development and implementation of the plan shall be accomplished in consultation with the human rights commission, the governor's juvenile justice advisory committee, superior court judges, juvenile justice administrators, and interested juvenile justice practitioners and researchers. The plan shall include a schedule and budget for implementation and shall be provided to the office of financial management by September 15, 1993.
Sec. 3. RCW 2.56.030 and 1992 c 205 s 115 are each amended to read as follows:
The administrator for the courts shall, under the supervision and direction of the chief justice:
(1) Examine the administrative methods and systems employed in the offices of the judges, clerks, stenographers, and employees of the courts and make recommendations, through the chief justice, for the improvement of the same;
(2) Examine the state of the dockets of the courts and determine the need for assistance by any court;
(3) Make recommendations to the chief justice relating to the assignment of judges where courts are in need of assistance and carry out the direction of the chief justice as to the assignments of judges to counties and districts where the courts are in need of assistance;
(4) Collect and compile statistical and other data and make reports of the business transacted by the courts and transmit the same to the chief justice to the end that proper action may be taken in respect thereto;
(5) Prepare and submit budget estimates of state appropriations necessary for the maintenance and operation of the judicial system and make recommendations in respect thereto;
(6) Collect statistical and other data and make reports relating to the expenditure of public moneys, state and local, for the maintenance and operation of the judicial system and the offices connected therewith;
(7) Obtain reports from clerks of courts in accordance with law or rules adopted by the supreme court of this state on cases and other judicial business in which action has been delayed beyond periods of time specified by law or rules of court and make report thereof to supreme court of this state;
(8) Act as secretary of the judicial conference referred to in RCW 2.56.060;
(9) Formulate and submit to the judicial council of this state recommendations of policies for the improvement of the judicial system;
(10) Submit annually, as of February 1st, to the chief justice and the judicial council, a report of the activities of the administrator's office for the preceding calendar year;
(11) Administer programs and standards for the training and education of judicial personnel;
(12) Examine the need for new superior court and district judge positions under a weighted caseload analysis that takes into account the time required to hear all the cases in a particular court and the amount of time existing judges have available to hear cases in that court. The results of the weighted caseload analysis shall be reviewed by the board for judicial administration and the judicial council, both of which shall make recommendations to the legislature by January 1, 1989. It is the intent of the legislature that weighted caseload analysis become the basis for creating additional district court positions, and recommendations should address that objective;
(13) Provide staff to the judicial retirement account plan under chapter 2.14 RCW;
(14) Attend to such other matters as may be assigned by the supreme court of this state;
(15) Within available funds, develop a curriculum for a general understanding of child development, placement, and treatment resources, as well as specific legal skills and knowledge of relevant statutes including chapters 13.32A, 13.34, and 13.40 RCW, cases, court rules, interviewing skills, and special needs of the abused or neglected child. This curriculum shall be completed and made available to all juvenile court judges, court personnel, and service providers by July 1, 1988. The curriculum shall be updated yearly to reflect changes in statutes, court rules, or case law;
(16) Develop a curriculum for a general understanding of crimes of malicious harassment, as well as specific legal skills and knowledge of RCW 9A.36.080, relevant cases, court rules, and the special needs of malicious harassment victims. This curriculum shall be completed and made available to all superior court and court of appeals judges and to all justices of the supreme court by July 1, 1989;
(17) Develop, in consultation with the criminal justice training commission and the commissions established under chapters 43.113, 43.115, and 43.117 RCW, a curriculum for a general understanding of ethnic and cultural diversity and its implications for working with youth of color and their families. The curriculum shall be completed and made available to all superior court judges and court commissioners assigned to juvenile court, and other court personnel by October 1, 1993. Ethnic and cultural diversity training shall be provided annually so as to incorporate cultural sensitivity and awareness into the daily operation of juvenile courts state-wide.
NEW SECTION. Sec. 4. A new section is added to chapter 43.101 RCW to read as follows:
The criminal justice training commission shall develop, in consultation with the administrator for the courts and the commissions established under chapters 43.113, 43.115, and 43.117 RCW, a curriculum for a general understanding of ethnic and cultural diversity and its implications for working with youth of color and their families. The curriculum shall be developed by October 1, 1993. The commission shall ensure that ethnic and diversity training becomes an integral part of the training of law enforcement personnel so as to incorporate cultural sensitivity and awareness into the daily activities of law enforcement personnel.
NEW SECTION. Sec. 5. A new section is added to chapter 2.56 RCW to read as follows:
The administrator for the courts shall, in cooperation with juvenile courts, develop informational materials describing juvenile laws and juvenile court processes and procedures related to such laws, and make such information available to the public. Similar information shall also be made available for the non-English speaking youth and their families.
NEW SECTION. Sec. 6. A new section is added to chapter 13.04 RCW to read as follows:
The administrator of juvenile court shall obtain interpreters as needed consistent with the intent and practice of chapter 2.43 RCW, to enable non-English speaking youth and their families to participate in detention, probation, or court proceedings and programs.
Sec. 7. RCW 13.06.050 and 1983 c 191 s 5 are each amended to read as follows:
No county shall be entitled to receive any state funds provided by this chapter until its application and plan are approved, and unless and until the minimum standards prescribed by the department of social and health services are complied with and then only on such terms as are set forth in this section. In addition, any county making application for state funds under this chapter that also operates a juvenile detention facility must have standards of operations in place that include: Intake and admissions, medical and health care, communication, correspondence, visiting and telephone use, security and control, sanitation and hygiene, juvenile rights, rules and discipline, property, juvenile records, safety and emergency procedures, programming, release and transfer, training and staff development, and food service.
(1) The distribution of funds to a county or a group of counties shall be based on criteria including but not limited to the county's per capita income, regional or county at-risk populations, juvenile crime or arrest rates, rates of poverty, size of racial minority populations, existing programs, and the effectiveness and efficiency of consolidating local programs towards reducing commitments to state correctional facilities for offenders whose standard range disposition does not include commitment of the offender to the department and reducing reliance on other traditional departmental services.
(2) The secretary will reimburse a county upon presentation and approval of a valid claim pursuant to the provisions of this chapter based on actual performance in meeting the terms and conditions of the approved plan and contract. Funds received by participating counties under this chapter shall not be used to replace local funds for existing programs.
(3) The secretary, in conjunction with the human rights commission, shall evaluate the effectiveness of programs funded under this chapter in reducing racial disproportionality. The secretary shall investigate whether implementation of such programs has reduced disproportionality in counties with initially high levels of disproportionality. The analysis shall indicate which programs are cost-effective in reducing disproportionality in such areas as alternatives to detention, intake and risk assessment standards pursuant to RCW 13.40.038, alternatives to incarceration, and in the prosecution and adjudication of juveniles. The secretary shall report his or her findings to the legislature by December 1, 1994, and December 1 of each year thereafter.
NEW SECTION. Sec. 8. The administrator for the courts shall convene a working group to develop standards and guidelines for the prosecution of juvenile offenders under Title 13 RCW, review any racial disproportionality in diversion, and review the use of detention facilities in a way to reduce racial disproportionality. The administrator shall appoint:
(1) One defense attorney familiar with juvenile justice, and three prosecuting attorneys familiar with juvenile justice;
(2) One superior court judge;
(3) One court commissioner;
(4) One juvenile court administrator;
(5) One representative of the juvenile disposition standards board;
(6) One representative of the department of social and health services;
(7) One social researcher with expertise in juvenile or criminal justice;
(8) Two representatives of child advocacy groups recommended by the governor; and
(9) Two persons recommended jointly by the Washington state minority commissions.
The work group shall develop and submit its recommended standards and guidelines to the appropriate committees of the legislature by December 1, 1994.
Sec. 9. RCW 13.40.027 and 1992 c 205 s 103 are each amended to read as follows:
(1) It is the responsibility of the commission to: (a)(i) Evaluate the effectiveness of existing disposition standards and related statutes in implementing policies set forth in RCW 13.40.010 generally ((and)), (ii) specifically review the guidelines relating to the confinement of minor and first offenders as well as the use of diversion, and (iii) review the application of current and proposed juvenile sentencing standards and guidelines for potential adverse impacts on the sentencing outcomes of racial and ethnic minority youth; (b) solicit the comments and suggestions of the juvenile justice community concerning disposition standards; and (c) make recommendations to the legislature regarding revisions or modifications of the disposition standards in accordance with RCW 13.40.030. The evaluations shall be submitted to the legislature ((by December 1, 1992, and)) on December 1 of each even-numbered year thereafter.
(2) It is the responsibility of the department to: (a) Provide the commission with available data concerning the implementation of the disposition standards and related statutes and their effect on the performance of the department's responsibilities relating to juvenile offenders; (b) at the request of the commission, provide technical and administrative assistance to the commission in the performance of its responsibilities; and (c) provide the commission and legislature with recommendations for modification of the disposition standards.
NEW SECTION. Sec. 10. If specific funding for the purposes of this act, referencing this act by bill number, is not provided by June 30, 1993, in the omnibus appropriations act, this act shall be null and void."
On page 1, line 2 of the title, after "recommendations;" strike the remainder of the title and insert "amending RCW 2.56.030, 13.06.050, and 13.40.027; adding a new section to chapter 43.101 RCW; adding a new section to chapter 2.56 RCW; adding a new section to chapter 13.04 RCW; and creating new sections."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Leonard moved the House do concur in the Senate amendments to Engrossed Substitute House Bill No. 1966 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker stated the question before the House to be final passage of Engrossed Substitute House Bill No. 1966 as amended by the Senate.
Representatives Leonard and Cooke spoke in favor of passage of the bill.
On motion of Representative J. Kohl, Representative Jacobsen was excused.
ROLL CALL
The Clerk called the roll on final passage of Engrossed Substitute House Bill No. 1966 as amended by the Senate and the bill passed the House by the following vote: Yeas - 87, Nays - 6, Absent - 0, Excused - 5.
Voting yea: Representatives Anderson, Appelwick, Ballard, Ballasiotes, Basich, Bray, Brown, Brumsickle, Campbell, Carlson, Chandler, Chappell, Cole, G., Conway, Cooke, Dellwo, Dunshee, Dyer, Edmondson, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Foreman, Forner, Grant, Hansen, Heavey, Holm, Horn, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Mielke, Miller, Morris, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Reams, Riley, Roland, Romero, Rust, Schmidt, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Springer, Tate, Thibaudeau, Valle, Vance, Van Luven, Veloria, Wang, Wineberry, Wolfe, Wood, Zellinsky and Mr. Speaker - 87.
Voting nay: Representatives Fuhrman, Morton, Padden, Stevens, Talcott and Thomas - 6.
Excused: Representatives Brough, Casada, Cothern, Dorn and Jacobsen - 5.
Engrossed Substitute House Bill No. 1966, as amended by the Senate, having received the constitutional majority, was declared passed.
MESSAGE FROM THE SENATE
April 17, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to SENATE BILL NO. 5375 and asks the House to recede therefrom.
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Anderson moved the House insist on its position regarding the House amendments to Senate Bill No. 5375 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Ogden, Valle and Reams as conferees on Senate Bill No. 5375.
With the consent of the House, the House advanced to the sixth order of business.
SECOND READING
SUBSTITUTE SENATE CONCURRENT RESOLUTION NO. 8400, by Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Talmadge, Skratek, Haugen, Owen, A. Smith, Pelz, Bluechel, Winsley and Erwin)
Declaring a sister state relationship with Taiwan.
The resolution was read the second time.
Representative Wang moved adoption of the following amendment by Representative Wang and others:
On page 1, line 2, strike "Taiwan" and insert "the Province of Taiwan in the Republic of China"
Representatives Wang and Wineberry spoke in favor of adoption of the amendment and Representatives Forner and Reams spoke against it. The amendment was adopted.
On motion of Representative Sheldon, the rules were suspended, the second reading considered the third and the bill was placed on final passage.
Representatives Wang, Chandler and Edmondson spoke in favor of adoption of the resolution and Representative Forner spoke against it.
Substitute Senate Concurrent Resolution No. 8400 was adopted.
MESSAGE FROM THE SENATE
April 17, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to SENATE BILL NO. 5851 and asks the House to recede therefrom.
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Anderson moved the House insist on its position regarding the House Amendments to Senate Bill No. 5851 and ask the Senate for a Conference thereon.
APPOINTMENT OF CONFEREES
The Speaker (Representative R. Meyers presiding) appointed Representatives Anderson, Veloria and Dyer as conferees on Senate Bill No. 5851.
MESSAGES FROM THE SENATE
April 21, 1993
Mr. Speaker:
The President has signed:
ENGROSSED SUBSTITUTE HOUSE BILL NO. 1338,
and the same is herewith transmitted.
Marty Brown, Secretary
April 21, 1993
Mr. Speaker:
The President has signed:
SUBSTITUTE SENATE BILL NO. 5357,
ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5502,
and the same are herewith transmitted.
Marty Brown, Secretary
April 21, 1993
Mr. Speaker:
The President has signed:
SUBSTITUTE SENATE BILL NO. 5360,
SUBSTITUTE SENATE BILL NO. 5829,
SUBSTITUTE SENATE BILL NO. 5837,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5888,
SUBSTITUTE SENATE BILL NO. 5963,
and the same are herewith transmitted.
Marty Brown, Secretary
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on SUBSTITUTE HOUSE BILL NO. 2055. The President has appointed the following members as Conferees: Senators Owen, Oke and Hargrove and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 1708. The President has appointed the following members as Conferees: Senators Pelz, Hochstatter and McAuliffe and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The Senate grants the request of the House for a conference on ENGROSSED HOUSE BILL NO. 1748. The President has appointed the following members as Conferees: Senators Bauer, Prince and Drew and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
April 21, 1993
Mr. Speaker:
The President has signed:
SUBSTITUTE SENATE BILL NO. 5176,
ENGROSSED SENATE BILL NO. 5260,
SUBSTITUTE SENATE BILL NO. 5270,
ENGROSSED SENATE BILL NO. 5280,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5307,
SUBSTITUTE SENATE BILL NO. 5316,
ENGROSSED SENATE BILL NO. 5342,
SUBSTITUTE SENATE BILL NO. 5380,
SUBSTITUTE SENATE BILL NO. 5483,
SUBSTITUTE SENATE BILL NO. 5492,
SUBSTITUTE SENATE BILL NO. 5503,
ENGROSSED SENATE BILL NO. 5508,
SECOND SUBSTITUTE SENATE BILL NO. 5511,
SUBSTITUTE SENATE BILL NO. 5528,
ENGROSSED SENATE BILL NO. 5534,
ENGROSSED SENATE BILL NO. 5545,
ENGROSSED SUBSTITUTE SENATE BILL NO. 5574,
SUBSTITUTE SENATE BILL NO. 5686,
SUBSTITUTE SENATE BILL NO. 5688,
and the same are herewith transmitted.
Marty Brown, Secretary
SENATE AMENDMENTS TO HOUSE BILL
April 6, 1993
Mr. Speaker:
The Senate has passed HOUSE BILL NO. 1058, with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. A new section is added to chapter 70.44 RCW to read as follows:
Public hospital districts may employ chaplains for their hospitals, health care facilities, and hospice programs.
NEW SECTION. Sec. 2. This act shall take effect on January 1, 1994, if the proposed amendment to Article I, section 11 of the state Constitution authorizing the legislature to permit public hospital districts to employ chaplains is validly submitted to and is approved and ratified by the voters at the next general election held. If the proposed amendment is not so approved and ratified, this act is void in its entirety."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative H. Myers moved that the House do concur in the Senate amendments to House Bill No. 1058 and pass the bill as amended by the Senate. The motion was carried.
FINAL PASSAGE OF HOUSE BILL AS SENATE AMENDED
The Speaker assumed the chair.
The Speaker stated the question before the House to be final passage of House Bill No. 1058 as amended by the Senate.
Representatives H. Myers, Rust, Edmondson, Zellinsky, Forner, L. Johnson, Vance and Kremen spoke in favor of passage of the bill and Representatives Heavey and Dunshee spoke against it.
ROLL CALL
The Clerk called the roll on the final passage of House Bill No. 1058, as amended by the Senate, and the bill passed the House by the following vote: Yeas - 60, Nays - 34, Absent - 0, Excused - 4.
Voting yea: Representatives Appelwick, Ballard, Basich, Bray, Brumsickle, Campbell, Carlson, Chandler, Chappell, Conway, Cooke, Dellwo, Dyer, Edmondson, Flemming, Foreman, Forner, Fuhrman, Grant, Holm, Horn, Johnson, L., Kremen, Lemmon, Leonard, Lisk, Ludwig, Mastin, Mielke, Miller, Morton, Myers, H., Orr, Padden, Patterson, Peery, Quall, Rayburn, Reams, Roland, Schoesler, Scott, Sehlin, Sheahan, Sheldon, Shin, Silver, Sommers, Stevens, Talcott, Tate, Thomas, Valle, Vance, Van Luven, Veloria, Wineberry, Wood, Zellinsky and Mr. Speaker - 60.
Voting nay: Representatives Anderson, Ballasiotes, Brown, Cole, G., Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Hansen, Heavey, Jacobsen, Johanson, Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Linville, Locke, Long, Meyers, R., Morris, Ogden, Pruitt, Riley, Romero, Rust, Schmidt, Springer, Thibaudeau, Wang and Wolfe - 34.
Excused: Representatives Brough, Casada, Cothern and Dorn - 4.
House Bill No. 1058, as amended by the Senate, having received the constitutional majority, was declared passed.
SENATE AMENDMENTS TO HOUSE BILL
April 14, 1993
Mr. Speaker:
The Senate has passed ENGROSSED SUBSTITUTE HOUSE BILL NO. 1236 with the following amendments:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that a water right confers significant economic benefits to the water right holder. The fees associated with acquiring a water right have not changed significantly since 1917. Water rights applicants pay less than two percent of the costs of the administration of the water rights program. The legislature finds that, since water rights are of significant value, water rights applicants should contribute more to the cost of administration of the water rights program.
The legislature also finds that an abrupt increase in water rights fees could be disruptive to water rights holders and applicants. The legislature further finds that water rights applicants have a right to know that the water rights program is being administered efficiently and that the fees charged for various services relate directly to the cost of providing those services.
Therefore, the legislature creates a task force to review the water rights program, to make recommendations for streamlining the application process and increasing the overall efficiency and accountability of the administration of the program, and to return to the legislature with a proposal for a fee schedule where the fee levels relate clearly to the cost of services provided.
Sec. 2. RCW 90.03.470 and 1987 c 109 s 98 are each amended to read as follows:
Except as otherwise provided in subsection (15) of this section, the following fees shall be collected by the department in advance:
(1) For the examination of an application for permit to appropriate water or on application to change point of diversion, withdrawal, purpose or place of use, a minimum of ten dollars, to be paid with the application. For each second foot between one and five hundred second feet, two dollars per second foot; for each second foot between five hundred and two thousand second feet, fifty cents per second foot; and for each second foot in excess thereof, twenty cents per second foot. For each acre foot of storage up to and including one hundred thousand acre feet, one cent per acre foot, and for each acre foot in excess thereof, one-fifth cent per acre foot. The ten dollar fee payable with the application shall be a credit to that amount whenever the fee for direct diversion or storage totals more than ten dollars under the above schedule and in such case the further fee due shall be the total computed amount less ten dollars.
Within five days from receipt of an application the department shall notify the applicant by registered mail of any additional fees due under the above schedule and any additional fees shall be paid to and received by the department within thirty days from the date of filing the application, or the application shall be rejected.
(2) For filing and recording a permit to appropriate water for irrigation purposes, forty cents per acre for each acre to be irrigated up to and including one hundred acres, and twenty cents per acre for each acre in excess of one hundred acres up to and including one thousand acres, and ten cents for each acre in excess of one thousand acres; and also twenty cents for each theoretical horsepower up to and including one thousand horsepower, and four cents for each theoretical horsepower in excess of one thousand horsepower, but in no instance shall the minimum fee for filing and recording a permit to appropriate water be less than five dollars. For all other beneficial purposes the fee shall be twice the amount of the examination fee except that for individual household and domestic use, which may include water for irrigation of a family garden, the fee shall be five dollars.
(3) For filing and recording any other water right instrument, four dollars for the first hundred words and forty cents for each additional hundred words or fraction thereof.
(4) For making a copy of any document recorded or filed in his office, forty cents for each hundred words or fraction thereof, but when the amount exceeds twenty dollars, only the actual cost in excess of that amount shall be charged.
(5) For certifying to copies, documents, records or maps, two dollars for each certification.
(6) For blueprint copies of a map or drawing, or, for such other work of a similar nature as may be required of the department, at actual cost of the work.
(7) For granting each extension of time for beginning construction work under a permit to appropriate water, an amount equal to one-half of the filing and recording fee, except that the minimum fee shall be not less than five dollars for each year that an extension is granted, and for granting an extension of time for completion of construction work or for completing application of water to a beneficial use, five dollars for each year that an extension is granted.
(8) For the inspection of any hydraulic works to insure safety to life and property, the actual cost of the inspection, including the expense incident thereto.
(9) For the examination of plans and specifications as to safety of controlling works for storage of ten acre feet or more of water, a minimum fee of ten dollars, or the actual cost.
(10) For recording an assignment either of a permit to appropriate water or of an application for such a permit, a fee of five dollars.
(11) For preparing and issuing all water right certificates, five dollars.
(12) For filing and recording a protest against granting any application, two dollars.
(13) The department shall provide timely notification by certified mail with return receipt requested to applicants that fees are due. No action may be taken until the fee is paid in full. Failure to remit fees within sixty days of the department's notification shall be grounds for rejecting the application or canceling the permit. Cash shall not be accepted. Fees must be paid by check or money order and are nonrefundable.
(14) For purposes of calculating fees for ground water filings, one cubic foot per second shall be regarded as equivalent to four hundred fifty gallons per minute.
(15) For the period beginning July 1, 1993, and ending June 30, 1994, there is imposed and the department shall collect a fifty dollar surcharge on all water rights applications or changes filed under this section, and upon all water rights applications or changes pending as of July 1, 1993. This charge shall be in addition to any other fees imposed under this section.
NEW SECTION. Sec. 3. (1) There is created a water rights fees task force. The task force shall be comprised of fourteen members, who are appointed as follows:
(a) Two members of the Washington state house of representatives, one from each major caucus, to be appointed by the speaker of the house of representatives;
(b) Two members of the Washington state senate, one from each major caucus, to be appointed by the president of the senate;
(c) Ten members, to be appointed jointly by the speaker of the house of representatives and the president of the senate, to represent the following interests: Agriculture, aquaculture, business, cities, counties, the state department of ecology, environmentalists, water recreation interests, water utilities, and hydropower interests. The task force may establish technical advisory committees as necessary to complete its tasks.
(2) The task force shall conduct a comprehensive review of water rights fees. The task force's tasks shall include but not be limited to:
(a) Identification of the costs associated with the various activities and services provided by the water rights program and examination of how these costs compare with the fees charged for these activities and services;
(b) Identification of appropriate accountability measures for the department of ecology to employ in administration of the water rights program. Recommendations of accountability requirements and measurements shall take into account the distinctive characteristics of the water rights program, that is, that the department receives a large number of applications on a one-time basis and that the department of ecology must meet its legal obligations under the doctrine of prior appropriation;
(c) Identification of which program activities should be eligible for cost recovery from fees, as well as which direct and indirect costs of program administration;
(d) Review of the application, examination, and water rights permit requirements for marine water users to determine if these users should receive special fee consideration;
(e) Review of the definition and treatment of nonconsumptive water uses to determine if special fee consideration should be given to these users;
(f) Review of the fees and accounting methods for the dam safety program;
(g) Identification of the appropriate distribution of responsibility between the applicant and the department of ecology for provision of technical information and analysis; and
(h) Establishment of a reasonable time framework for completion of new and pending water rights applications, and an analysis of the staff and funding levels required to meet the established time framework.
(3) Before December 1, 1993, the task force shall:
(a) Provide recommendations to the department of ecology on ways to improve the efficiency and accountability of the water rights program;
(b) Provide recommendations to the legislature on statutory changes necessary to make these efficiency and accountability improvements; and
(c) Propose a new fee schedule for the water rights program which incorporates the results of the task force's work and which funds through fees fifty percent of the cost of the activities and services provided by the program.
(4) The department of ecology and the legislature shall jointly provide for the staff support of the task force.
(5) The task force shall convene as soon as possible upon the appointment of its members. Task force members shall elect a chair and adopt rules for conducting the business of the task force. The task force shall expire on June 30, 1994.
NEW SECTION. Sec. 4. The legislature finds that there is a significant number of high-value orchard and vineyard crops that can be grown utilizing highly water-efficient trickle irrigation systems. The legislature finds that over a period of several years, existing orchard plantings will be revitalized and replaced with new plantings, and that additional orchards will be planted which provide opportunities for improved water efficiency.
The legislature finds that significant water savings could be realized through the installation of trickle irrigation systems where climatically and economically suitable. The legislature also finds that positive economic incentives, establishment of necessary legal procedures, and removal of legal barriers are needed to stimulate the development of workable technologies and farming systems that rely on lesser quantities of water.
The purpose of this act is to stimulate the use of trickle irrigation systems by allowing the saved water to be voluntarily transferred by the water right holder to other uses. Additionally, the purpose is to establish incentives through enabling self-funded, private capital or public funds to provide improved market-based incentives for adopting water saving technologies and to allow the benefits of the conserved water to be fully realized. It is the intent of this act that sufficient protections be provided to assure that existing water users are not adversely affected by transfers approved under sections 5 through 12 of this act.
NEW SECTION. Sec. 5. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Contract" means a written legal instrument that provides for the transfer of a portion of a water right from an existing water right holder to another person for consideration.
(2) "Department" means the department of ecology.
(3) "Net water savings" has the same meaning as defined in RCW 90.42.020.
(4) "Person" means a person, corporation, quasi-municipal corporation, municipal corporation, state, or federal agency.
(5) "Reduction in evaporative loss" means the amount of water that was needed to grow an orchard or other crops using conventional irrigation systems minus the quantity of water needed to grow the crops with the use of a trickle irrigation system. "Reduction in evaporative loss" includes the reduction in the amount of water used through transpiration by nonproductive plants such as cover crops.
(6) "Trickle irrigation system" means those types of systems which qualify, as determined by the department, that apply water at the base of a plant producing food or fiber with minimal evaporation, or transpiration loss to nonproductive vegetation.
(7) "Trust water right" means a water right transferred to and managed by the department for the benefit of instream flows or for the allocation to new uses as provided in chapter 90.38 or 90.42 RCW.
NEW SECTION. Sec. 6. A person holding a valid water right may enter into a contract with another person for the transfer of water saved through installation of a qualifying trickle irrigation system. In determining the amount that is transferrable, the department shall allow the transfer of an amount equal to the reduction in the evaporative loss. The reduction in evaporative loss is a readily transferrable component of net water savings.
In addition, the department shall evaluate whether there are additional net water savings as defined in RCW 90.42.020 that could be transferred to the purchaser without detriment to other existing water users. The department may not delay because of decisions on the determination of additional net water savings the approval of the transfer of the water that constitutes the reduction in evaporative loss.
A person wishing to make application for a transfer of a water right under this chapter shall comply with RCW 90.03.380. A contract may allow for a permanent transfer of a portion of the original water right, or for lease agreements with set expiration dates. The applicant shall state that the contract is not permanent in the application if the contract is not permanent.
The transferred portion has the same date of priority as the water right from which it originated, but between them the transferred portion of the right is inferior in priority unless otherwise provided by the parties in the contract.
The department shall maintain a record of contracts with the certificate of water right for the transferred water.
NEW SECTION. Sec. 7. The department shall adopt rules, in accordance with chapter 34.05 RCW and by July 1, 1994, for procedures to be used to facilitate the processing of requests for water right transfers made under this chapter and to establish a streamlined procedure to quantify the reduction in the evaporative loss. In developing streamlined procedures, the department may use data from the United States soil conservation service or the Washington state cooperative extension service to base calculations of reduction in evaporative loss in various regions of the state.
The rules may establish procedures for the department to make preliminary findings that can be used as an initial basis for developing contracts by applicants.
NEW SECTION. Sec. 8. An applicant shall accompany an application for a water right transfer under this chapter with a fee of six hundred twenty-five dollars.
NEW SECTION. Sec. 9. In processing applications for transfers of portions of water rights under this chapter, if the department is unable to conclusively determine the validity of the original water right, the department may include a presumption of validity in the certificate of water rights. The presumption must provide to the contract purchaser the same right to the use of water as the holder of the original water right.
The presumption of validity may not be used as evidence as to the existence or nonexistence in a water right adjudication conducted under chapter 90.03 RCW.
NEW SECTION. Sec. 10. A holder of a water right may voluntarily enter into a contract with the department. The department may utilize funds available from chapter 43.99E RCW to purchase water savings made available under this chapter. The department shall utilize the same methods of calculating water that is transferrable to another party under this chapter in determining the amount of water that is transferrable to the state. If additional net water saved is available for the benefit of only a stream segment, the calculations may be made on a case-by-case basis while assuring no detriment to existing water users occurs.
NEW SECTION. Sec. 11. A holder of a valid water right who installs a trickle irrigation system may apply for a transfer of the reduction in evaporative loss, plus any additional net water savings, for the irrigation of an additional parcel of previously unirrigated land, to land with less senior water rights, or that lacks a full and sufficient supply. The application must be processed based upon the same criteria as if the transfer were to be made to another person.
NEW SECTION. Sec. 12. This chapter may be known and cited as the agricultural water conservation incentives act.
NEW SECTION. Sec. 13. Sections 5 through 12 of this act shall constitute a new chapter in Title 90 RCW.
NEW SECTION. Sec. 14. If specific funding for the purposes of sections 5 through 12 of this act, referencing this act by bill and section numbers, is not provided by June 30, 1993, in the omnibus appropriations act, sections 5 through 12 of this act shall be null and void.
NEW SECTION. Sec. 15. Sections 1 through 3 this act are 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 immediately.
NEW SECTION. Sec. 16. f 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.
On page 1, line 1 of the title, after "approvals;" strike the remainder of the title and insert "amending RCW 90.03.470; adding a new chapter to Title 90 RCW; creating new sections; and declaring an emergency."
and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Pruitt moved the House refuse to concur in the Senate amendments to Engrossed Substitute House Bill No. 1236 and ask the Senate for a Conference thereon.
MOTION
Representative Chandler moved that the House do concur in the Senate amendments to Engrossed Substitute House Bill No. 1236.
The Speaker stated the question before the House to be the motion by Representative Chandler to concur in the Senate amendments to Engrossed Substitute House Bill No. 1236.
Representatives Chandler and Schoesler spoke in favor of the motion and Representative Pruitt spoke against it.
Representative Vance demanded an electronic roll call and the demand was sustained.
ROLL CALL
The Clerk called the roll on the final passage of the motion by Representative Chandler to concur in the Senate amendments to Engrossed Substitute House Bill No. 1236, and the motion was not carried by the following vote: Yeas - 40, Nays - 54, Absent - 0, Excused - 4.
Voting yea: Representatives Ballard, Ballasiotes, Basich, Bray, Brumsickle, Carlson, Chandler, Chappell, Cooke, Dyer, Edmondson, Foreman, Forner, Fuhrman, Grant, Hansen, Horn, Kremen, Lisk, Long, Ludwig, Mastin, Mielke, Miller, Morton, Padden, Rayburn, Reams, Schmidt, Schoesler, Sehlin, Sheahan, Sheldon, Silver, Stevens, Talcott, Tate, Thomas, Vance and Wood - 40.
Voting nay: Representatives Anderson, Appelwick, Brown, Campbell, Cole, G., Conway, Dellwo, Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Heavey, Holm, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Lemmon, Leonard, Linville, Locke, Meyers, R., Morris, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Riley, Roland, Romero, Rust, Scott, Shin, Sommers, Springer, Thibaudeau, Valle, Van Luven, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 54.
Excused: Representatives Brough, Casada, Cothern and Dorn - 4.
The motion by Representative Chandler to concur in the Senate amendments to Engrossed Substitute House Bill No. 1236, having failed to receive the constitutional majority, was declared lost.
The motion not to concur with the Senate amendments was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives Pruitt, Rust and Chandler as conferees on Engrossed Substitute House Bill No. 1236.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate refuses to recede from the Senate amendments to SUBSTITUTE HOUSE BILL NO. 1122 and asks the House for a conference thereon. The President has appointed the following members as Conferees: Senators Fraser, Barr and Loveland and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative H. Myers moved the House grant the request of the Senate for a conference on Substitute House Bill No. 1122. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives Pruitt, Dunshee and Edmondson as conferees on Substitute House Bill No. 1122.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate insists on it position regarding the Senate amendments to ENGROSSED SUBSTITUTE HOUSE BILL NO. 1761 and asks the House for a conference thereon. The President has appointed the following members as Conferees: Senators Haugen, Erwin and Drew and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative H. Myers moved the House grant the request of the Senate for a Conference on Engrossed Substitute House Bill No. 1761. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives H. Myers, R. Fisher and Edmondson as conferees on Engrossed Substitute House Bill No. 1761.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate insists on its position regarding the Senate amendments to ENGROSSED SUBSTITUTE HOUSE BILL NO. 2067 and once again asks the House to concur therein and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Brown moved the House insist on its position on Substitute House Bill No. 2067 and ask the Senate for a Conference thereon. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives R. Fisher, Jones and Schmidt as conferees on Engrossed Substitute House Bill No. 2067.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 5044 and asks the House for a conference thereon. The President has appointed the following members as Conferees: Senators Haugen, Winsley and Loveland and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative H. Myers moved the House grant the request of the Senate for a Conference on Substitute Senate Bill No. 5044. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives H. Myers, Romero and Horn as conferees on Substitute Senate Bill No. 5044.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 5704 and asks the House for a conference thereon. The President has appointed the following members as Conferees: Senators Adam Smith, McCaslin and Quigley and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Ludwig moved the House grant the request of the Senate for a conference on Substitute Senate Bill No. 5704. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives Appelwick, Ludwig and Padden as conferees on Substitute Senate Bill No. 5704.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to SUBSTITUTE SENATE BILL NO. 5407 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Fraser, Barr and Loveland and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Rust moved the House grant the request of the Senate for a Conference on Substitute Senate Bill No. 5407. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives Rust, L. Johnson and Horn as conferees on Substitute Senate Bill No. 5407.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 5815 and asks the House for a conference thereon. The President has appointed the following members as conferees: Senators Adam Smith, West and Quigley and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Ludwig moved the House grant the request of the Senate for a Conference on Engrossed Substitute Senate Bill No. 5815. The motion was carried.
APPOINTMENT OF CONFEREES
The Speaker appointed Representatives Appelwick, Riley and Padden as conferees on Engrossed Substitute Senate Bill No. 5815.
MESSAGE FROM THE SENATE
April 17, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 5157 and asks the House to recede therefrom and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Appelwick moved the House insist on its position regarding the House amendments to Engrossed Substitute Senate Bill No. 5157 and ask the Senate to concur therein. The motion was carried.
Representative Dunshee assumed the chair.
MESSAGE FROM THE SENATE
April 17, 1993
Mr. Speaker:
The Senate refuses to concur in the House amendments to ENGROSSED SUBSTITUTE SENATE BILL NO. 5844 and asks the House to recede therefrom and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
MOTION
Representative Leonard moved the House insist on its position regarding the House amendments to Engrossed Substitute Senate Bill No. 5844 and again ask the Senate to concur therein. The motion was carried.
The Speaker assumed the chair.
With the consent of the House, the House resumed consideration of House Bill No. 1379.
Representative Mielke has raised a point of order to the scope and object of the Senate amendment to House Bill No. 1379.
In ruling on the point of order, the Speaker finds that House Bill No. 1379 is a measure which relates to motor vehicles. It makes various changes to the programs administered by the Department of Licensing Vehicle Services Division.
The Senate amendment includes provisions relating to vessel (watercraft) dealer laws.
The Speaker therefore finds that the Senate amendment does change the scope and object of the bill and the point of order is well taken.
MOTION
Representative R. Fisher moved the House refuse to concur in the Senate amendments to House Bill No. 1379 and ask the Senate to recede therefrom. The motion was carried.
MESSAGE FROM THE SENATE
April 20, 1993
Mr. Speaker:
The Senate insists on its position regarding the Senate amendments to SUBSTITUTE HOUSE BILL NO. 1021 and once again asks the House to concur therein and the same are herewith transmitted.
Brad Hendrickson, Deputy Secretary
Representative Rust: Mr. Speaker, I would request a ruling on the scope and object of the Senate amendments to Substitute House Bill No. 1021.
With the consent of the House, the House deferred further consideration of Substitute House Bill No. 1021.
With the consent of the House, the House reverted to the sixth order of business.
SECOND READING
ENGROSSED SUBSTITUTE SENATE BILL NO. 5868, by Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Skratek, Bluechel, Sheldon, Erwin, Deccio, M. Rasmussen, Snyder, Gaspard and Winsley)
Creating the department of economic and community development.
The bill was read the second time. Committee on State Government recommendation: Majority, do pass as amended. (For committee amendment see Journal, 82nd Day, April 2, 1993.)
Representative Anderson moved that the committee amendment not be adopted. The committee amendment was not adopted.
Representative Anderson moved adoption of the following amendment by Representatives Anderson, Wineberry and H. Myers:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. INTENT. The legislature finds that the long-term economic health of the state and its citizens depends upon the strength and vitality of its communities and businesses. It is the intent of this chapter to create a merged community and economic development department that fosters new partnerships for strong and sustainable communities. The consolidation of the department of trade and economic development and the department of community development into one department will: Streamline access to services by providing a simpler point of entry for state programs; provide focused and flexible responses to changing economic conditions; generate greater local capacity to respond to both economic growth and environmental challenges; and increase accountability to the public, the executive branch, and the legislature.
A new department can bring together a focused effort to: Manage growth and achieve sustainable development; diversify the state's economy and export goods and services; provide greater access to economic opportunity; stimulate private sector investment and entrepreneurship; provide stable family-wage jobs and meet the diverse needs of families; provide affordable housing and housing services; construct public infrastructure; protect our cultural heritage; and promote the health and safety of the state's citizens.
The legislature further finds that as a result of the rapid pace of global social and economic change, the state and local communities will require coordinated and creative responses by every segment of the community. The state can play a role in assisting such local efforts by reorganizing state assistance efforts to promote such partnerships. The department has a primary responsibility to provide financial and technical assistance to the communities of the state, to assist in improving the delivery of federal, state, and local programs, and to provide communities with opportunities for productive and coordinated development beneficial to the well-being of communities and their residents. It is the intent of the legislature in this consolidation to maximize the use of local expertise and resources in the delivery of community and economic development services.
NEW SECTION. Sec. 2. MANAGEMENT RESPONSIBILITY. The purpose of this chapter is to establish the broad outline of the structure of the community and economic development department, leaving specific details of its internal organization and management to those charged with its administration. This chapter identifies the broad functions and responsibilities of the new department and is intended to provide flexibility to the director to reorganize these functions and to make recommendations for changes through the implementation plan required in section 8 of this act.
NEW SECTION. Sec. 3. DEFINITIONS. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Associate development organization" means a local economic development nonprofit corporation that is broadly representative of community interests.
(2) "Department" means the community and economic development department.
(3) "Director" means the director of the community and economic development department.
NEW SECTION. Sec. 4. DEPARTMENT CREATED. A community and economic development department is created. The department shall be vested with all powers and duties established or transferred to it under this chapter and such other powers and duties as may be authorized by law. Unless otherwise specifically provided in chapter ..., Laws of 1993 (this act), the existing responsibilities and functions of the agency programs will continue to be administered in accordance with their implementing legislation.
NEW SECTION. Sec. 5. DIRECTOR'S APPOINTMENT. The executive head of the department shall be the director. The director shall be appointed by the governor with the consent of the senate, and shall serve at the pleasure of the governor. The director shall be paid a salary to be fixed by the governor in accordance with RCW 43.03.040.
NEW SECTION. Sec. 6. DIRECTOR'S RESPONSIBILITIES. (1) The director shall supervise and administer the activities of the department and shall advise the governor and the legislature with respect to community and economic development matters affecting the state.
(2) In addition to other powers and duties granted to the director, the director shall have the following powers and duties:
(a) Enter into contracts on behalf of the state to carry out the purposes of this chapter;
(b) Act for the state in the initiation of or participation in any multigovernmental program relative to the purpose of this chapter;
(c) Accept and expend gifts and grants, whether such grants be of federal or other funds;
(d) Appoint such deputy directors, assistant directors, and up to seven special assistants as may be needed to administer the department. These employees are exempt from the provisions of chapter 41.06 RCW;
(e) Prepare and submit budgets for the department for executive and legislative action;
(f) Submit recommendations for legislative actions as are deemed necessary to further the purposes of this chapter;
(g) Adopt rules in accordance with chapter 34.05 RCW and perform all other functions necessary and proper to carry out the purposes of this chapter;
(h) Delegate powers, duties, and functions as the director deems necessary for efficient administration, but the director shall be responsible for the official acts of the officers and employees of the department; and
(i) Perform other duties as are necessary and consistent with law.
(3) When federal or other funds are received by the department, they shall be promptly transferred to the state treasurer and thereafter expended only upon the approval of the director.
(4) The director may request information and assistance from all other agencies, departments, and officials of the state, and may reimburse such agencies, departments, or officials if such a request imposes any additional expenses upon any such agency, department, or official.
(5) The director shall, in carrying out the responsibilities of office, consult with governmental officials, private groups, and individuals and with officials of other states. All state agencies and their officials and the officials of any political subdivision of the state shall cooperate with and give such assistance to the department, including the submission of requested information, to allow the department to carry out its purposes under this chapter.
(6) The director may establish additional advisory or coordinating groups with the legislature, within state government, with state and other governmental units, with the private sector and nonprofit entities or in specialized subject areas as may be necessary to carry out the purposes of this chapter.
(7) The internal affairs of the department shall be under the control of the director in order that the director may manage the department in a flexible and intelligent manner as dictated by changing contemporary circumstances. Unless specifically limited by law, the director shall have complete charge and supervisory powers over the department. The director may create such administrative structures as the director deems appropriate, except as otherwise specified by law, and the director may employ such personnel as may be necessary in accordance with chapter 41.06 RCW, except as otherwise provided by law.
NEW SECTION. Sec. 7. DEPARTMENT RESPONSIBILITIES. The department shall be responsible for promoting community and economic development within the state by assisting the state's communities to increase the quality of life of their citizens and their economic vitality, and by assisting the state's businesses to maintain and increase their economic competitiveness, while maintaining a healthy environment. Community and economic development efforts shall include: Efforts to increase economic opportunity; local planning to manage growth; the promotion and provision of affordable housing and housing-related services; providing public infrastructure; business and trade development; assisting firms and industrial sectors to increase their competitiveness; fostering the development of minority and women-owned businesses; facilitating technology development, transfer, and diffusion; community services and advocacy for low-income persons; and public safety efforts. The department shall have the following general functions and responsibilities:
(1) Provide advisory assistance to the governor, other state agencies, and the legislature on community and economic development matters and issues;
(2) Assist the governor in coordinating the activities of state agencies that have an impact on local government and communities;
(3) Cooperate with the legislature and the governor in the development and implementation of strategic plans for the state's community and economic development efforts;
(4) Solicit private and federal grants for economic and community development programs and administer such programs in conjunction with other programs assigned to the department by the governor or the legislature;
(5) Cooperate with and provide technical and financial assistance to local governments, businesses, and community-based organizations serving the communities of the state for the purpose of aiding and encouraging orderly, productive, and coordinated development of the state, and, unless stipulated otherwise, give additional consideration to local communities and individuals with the greatest relative need and the fewest resources;
(6) Participate with other states or subdivisions thereof in interstate programs and assist cities, counties, municipal corporations, governmental conferences or councils, and regional planning commissions to participate with other states and provinces or their subdivisions;
(7) Hold public hearings and meetings to carry out the purposes of this chapter;
(8) Conduct research and analysis in furtherance of the state's economic and community development efforts including maintenance of current information on market, demographic, and economic trends as they affect different industrial sectors, geographic regions, and communities with special economic and social problems in the state; and
(9) Develop a schedule of fees for services where appropriate.
NEW SECTION. Sec. 8. IMPLEMENTATION PLAN. (1) The director of the department of trade and economic development and the director of the department of community development shall, by November 15, 1993, jointly submit a plan to the governor for the consolidation and smooth transition of the department of trade and economic development and the department of community development into the community and economic development department so that the department will operate as a single entity on July 1, 1994.
(2) The plan shall include, but is not limited to, the following elements:
(a) Strategies for combining the existing functions and responsibilities of both agencies into a coordinated and unified department including a strategic plan for each major program area that includes implementation steps, evaluation measures, and methods for collaboration among programs;
(b) Recommendations for any changes in existing programs and functions of both agencies, including new initiatives and possible transfer of programs and functions to and from other departments;
(c) Implementation steps necessary to bring about operation of the combined department as a single entity;
(d) Benchmarks by which to measure progress and to evaluate the performance and effectiveness of the department's efforts; and
(e) Strategies for coordinating and maximizing federal, state, local, international, and private sector support for community and economic development efforts within the state.
(3) In developing this plan, the directors shall establish an advisory committee of representatives of groups using services and programs of both departments. The advisory committee shall include representatives of cities, counties, port districts, businesses, labor unions, associate development organizations, low-income housing interests, housing industry, Indian tribes, community action programs, public safety groups, nonprofit community and development organizations, and any other organizations the directors determine should have input to the plan.
NEW SECTION. Sec. 9. TRADE AND BUSINESS ASSISTANCE. (1) The department shall assist in expanding the state's role as an international center of trade, culture, and finance. The department shall promote and market the state's products and services internationally in close cooperation with other private and public international trade efforts and act as a centralized location for the assimilation and distribution of trade information.
(2) The department shall identify and work with Washington businesses that can use local, state, and federal assistance to increase domestic and foreign exports of goods and services.
(3) The department shall work generally with small businesses and other employers to facilitate resolution of siting, regulatory, expansion, and retention problems. This assistance shall include but not be limited to assisting in work force training and infrastructure needs, identifying and locating suitable business sites, and resolving problems with government licensing and regulatory requirements. The department shall identify gaps in needed services and develop steps to address them including private sector support and purchase of these services.
(4) The department shall work to increase the availability of capital to small businesses by developing new and flexible investment tools and by assisting in targeting and improving the efficiency of existing investment mechanisms.
(5) The department shall assist women and minority-owned businesses in overcoming barriers to increased investment and employment and becoming full participants in Washington's traded sector economy.
NEW SECTION. Sec. 10. LOCAL DEVELOPMENT CAPACITY--BUILDING AND TECHNICAL ASSISTANCE. (1) The department shall work closely with local communities to increase their capacity to respond to economic, environmental, and social problems and challenges. The department shall coordinate the delivery of development services and technical assistance to local communities or regional areas. It shall promote partnerships between the public and private sectors and between state and local officials to encourage appropriate economic growth and opportunity in communities throughout the state. The department shall promote appropriate local development by: Supporting the ability of communities to develop and implement strategic development plans; assisting businesses to start up, maintain, or expand their operations; encouraging public infrastructure investment and private and public capital investment in local communities; supporting efforts to manage growth and provide affordable housing and housing services; providing for the identification and preservation of the state's historical and cultural resources; and expanding employment opportunities.
(2) The department shall define a set of services including training and technical assistance that it will make available to local communities, community-based nonprofit organizations, regional areas, or businesses. The department shall simplify access to these programs by providing more centralized and user-friendly information and referral. The department shall coordinate community and economic development efforts to minimize program redundancy and maximize accessibility. The department shall develop a set of criteria for targeting services to local communities.
(3) The department shall develop a coordinated and systematic approach to providing training to community-based nonprofit organizations, local communities, and businesses. The approach shall be designed to increase the economic and community development skills available in local communities by providing training and funding for training for local citizens, nonprofit organizations, and businesses. The department shall emphasize providing training in those communities most in need of state assistance.
NEW SECTION. Sec. 11. LOCAL AND REGIONAL DEVELOPMENT CONTRACTS. (1) The department may contract with associate development organizations or other local organizations to increase the support for and coordination of community and economic development services in communities or regional areas. The organizations contracted with in each community or regional area shall be broadly representative of community and economic interests. The organization shall be capable of identifying key economic and community development problems, developing appropriate solutions, and mobilizing broad support for recommended initiatives. The contracting organization shall work with and include local governments, local chambers of commerce, private industry councils, port districts, labor groups, institutions of higher education, community action programs, and other appropriate private, public, or nonprofit community and economic development groups. The department shall be responsible for determining the scope of services delivered under these contracts.
(2) Associate development organizations or other local development organizations contracted with shall promote and coordinate, through local service agreements with local governments, small business development centers, port districts, community and technical colleges, private industry councils, and other development organizations, for the efficient delivery of community and economic development services in their areas.
(3) The department shall consult with associate development organizations, port districts, local governments, and other local development organizations in the establishment of service delivery regions throughout the state. The legislature encourages local associate development organizations to form partnerships with other associate development organizations in their region to combine resources for better access to available services, to encourage regional delivery of state services, and to build the local capacity of communities in the region more effectively.
(4) The department shall contract on a regional basis for surveys of key sectors of the regional economy and the coordination of technical assistance to businesses and employees within the key sectors. The department's selection of contracting organizations or consortiums shall be based on the sufficiency of the organization's or consortium's proposal to examine key sectors of the local economy within its region adequately and its ability to coordinate the delivery of services required by businesses within the targeted sectors. Organizations contracting with the department shall work closely with the department to examine the local economy and to develop strategies to focus on developing key sectors that show potential for long-term sustainable growth. The contracting organization shall survey businesses and employees in targeted sectors on a periodic basis to gather information on the sector's business needs, expansion plans, relocation decisions, training needs, potential layoffs, financing needs, availability of financing, and other appropriate information about economic trends and specific employer and employee needs in the region.
(5) The contracting organization shall participate with the work force training and education coordinating board as created in chapter 28C.18 RCW, and any regional entities designated by that board, in providing for the coordination of job skills training within its region.
NEW SECTION. Sec. 12. ECONOMIC DIVERSIFICATION AND SECTORAL STRATEGIES. (1) The department shall work with private sector organizations, local governments, local economic development organizations, and higher education and training institutions to assist in the development of strategies to diversify the economy, facilitate technology transfer and diffusion, and increase value-added production by focusing on targeted sectors. The targeted sectors may include, but are not limited to, software, forest products, biotechnology, environmental industries, recycling markets and waste reduction, aerospace, food processing, tourism, film and video, microelectronics, new materials, robotics, and machine tools. The department shall, on a continuing basis, evaluate the potential return to the state from devoting additional resources to a targeted sector's approach to economic development and including additional sectors in its efforts. The department shall use information gathered in each service delivery region in formulating its sectoral strategies and in designating new targeted sectors.
(2) The department shall ensure that the state continues to pursue a coordinated program to expand the tourism industry throughout the state in cooperation with the public and private tourism development organizations. The department shall work to provide a balance of tourism activities throughout the state and during different seasons of the year. In addition, the department shall promote, market, and encourage growth in the production of films and videos, as well as television commercials within the state.
(3) In assisting in the development of a targeted sector, the department's activities may include, but are not limited to:
(a) Conducting focus group discussions, facilitating meetings, and conducting studies to identify members of the sector, appraise the current state of the sector, and identify issues of common concern within the sector;
(b) Supporting the formation of industry associations, publications of association directories, and related efforts to create or expand the activities or industry associations;
(c) Assisting in the formation of flexible networks by providing (i) agency employees or private sector consultants trained to act as flexible network brokers and (ii) funding for potential flexible network participants for the purpose of organizing or implementing a flexible network;
(d) Helping establish research consortia;
(e) Facilitating joint training and education programs;
(f) Promoting cooperative market development activities;
(g) Analyzing the need, feasibility, and cost of establishing product certification and testing facilities and services; and
(h) Providing for methods of electronic communication and information dissemination among firms and groups of firms to facilitate network activity.
By January 10th of each year, the department shall report in writing on its targeted sector programs to the appropriate legislative economic development committees. The department's report shall include an appraisal of the sector, activities the department has undertaken to assist in the development of each sector, and recommendations to the legislature regarding activities that the state should implement but are currently beyond the scope of the department's program or resources.
NEW SECTION. Sec. 13. LOCAL DEVELOPMENT FINANCE AND PUBLIC FACILITIES. (1) The department shall support the development and maintenance of local infrastructure and public facilities and provide local communities with flexible sources of funding. The department shall coordinate grant and loan programs that provide infrastructure and investment in local communities. This shall include coordinating funding for eligible projects with other federal, state, local, private, and nonprofit funding sources.
(2) At a minimum, the department shall provide coordinated procedures for applying for and tracking grants and loans among and between the community economic revitalization board, the public works trust fund, and community development block grants.
NEW SECTION. Sec. 14. HOUSING AFFORDABILITY. (1) The department shall maintain an active effort to help communities, families, and individuals build and maintain capacity to meet housing needs in Washington state. The department shall facilitate partnerships among the many entities related to housing issues and leverage a variety of resources and services to produce comprehensive, cost-effective, and innovative housing solutions.
(2) The department shall assist in the production, development, rehabilitation, and operation of owner-occupied or rental housing for very low, low, and moderate-income persons; operate programs to assist home ownership, offer housing services, and provide emergency, transitional, and special needs housing services; and qualify as a participating state agency for all programs of the federal department of housing and urban development or its successor. The department shall develop or assist local governments in developing housing plans required by the state or federal government.
(3) The department shall coordinate and administer energy assistance and residential energy conservation and rehabilitation programs of the federal and state government through nonprofit organizations, local governments, and housing authorities.
NEW SECTION. Sec. 15. GROWTH MANAGEMENT. (1) The department shall serve as the central coordinator for state government in the implementation of the growth management act, chapter 36.70A RCW. The department shall work closely with all Washington communities planning for future growth and responding to the pressures of urban sprawl. The department shall ensure coordinated implementation of the growth management act by state agencies.
(2) The department shall offer technical and financial assistance to cities and counties planning under the growth management act. The department shall help local officials interpret and implement the different requirements of the act through workshops, model ordinances, and information materials.
(3) The department shall provide alternative dispute resolution to jurisdictions and organizations to mediate disputes and to facilitate consistent implementation of the growth management act. The department shall review local governments compliance with the requirements of the growth management act and make recommendations to the governor.
NEW SECTION. Sec. 16. COMMUNITY SERVICES AND PROTECTION. (1) The department shall coordinate services to communities that are directed to the poor and disadvantaged through private and public nonprofit organizations and units of general purpose local governments. The department shall coordinate these programs using, to the extent possible, integrated case management methods, with other community and economic development efforts that promote self-sufficiency.
(2) These services may include, but not be limited to, comprehensive education services to preschool children from low-income families, providing for human service needs and advocacy, promoting volunteerism and citizen service as a means for accomplishing local community and economic development goals, coordinating and providing emergency food assistance to distribution centers and needy individuals, and providing for human service needs through community-based organizations.
(3) The department shall provide local communities and at-risk individuals with programs that provide community protection and assist in developing strategies to reduce substance abuse. The department shall administer programs that develop collaborative approaches to prevention, intervention, and interdiction programs. The department shall administer programs that support crime victims, address youth and domestic violence problems, provide indigent defense for low-income persons, border town disputes, and administer family services and programs to promote the state's policy as provided in RCW 74.14A.025.
(4) The department shall provide fire protection and emergency management services to support and strengthen local capacity for controlling risk to life, property, and community vitality that may result from fires, emergencies, and disasters.
Sec. 17. RCW 28C.18.060 and 1991 c 238 s 7 are each amended to read as follows:
The board, in cooperation with the operating agencies of the state training system shall:
(1) Concentrate its major efforts on planning, coordination evaluation, policy analysis, and recommending improvements to the state's training system.
(2) Advocate for the state training system and for meeting the needs of employers and the work force for work force education and training.
(3) Establish and maintain an inventory of the programs of the state training system, and related state programs, and perform a biennial assessment of the vocational education, training, and adult basic education and literacy needs of the state; identify ongoing and strategic education needs; and assess the extent to which employment, training, vocational and basic education, rehabilitation services, and public assistance services represent a consistent, integrated approach to meet such needs.
(4) Develop and maintain a state comprehensive plan for work force training and education, including but not limited to, goals, objectives, and priorities for the state training system, and review the state training system for consistency with the state comprehensive plan. In developing the state comprehensive plan for work force training and education, the board shall use, but shall not be limited to: Economic, labor market, and populations trends reports in office of financial management forecasts; joint office of financial management and employment security department labor force, industry employment, and occupational forecasts; the results of scientifically based outcome, net-impact and cost-benefit evaluations; the needs of employers as evidenced in formal employer surveys and other employer input; and the needs of program participants and workers as evidenced in formal surveys and other input from program participants and the labor community.
(5) In consultation with the higher education coordinating board, review and make recommendations to the office of financial management and the legislature on operating and capital facilities budget requests for operating agencies of the state training system for purposes of consistency with the state comprehensive plan for work force training and education.
(6) Provide for coordination among the different operating agencies of the state training system at the state level and at the regional level.
(7) Develop a consistent and reliable data base on vocational education enrollments, costs, program activities, and job placements from publicly funded vocational education programs in this state.
(8) Establish standards for data collection and maintenance for the operating agencies of the state training system in a format that is accessible to use by the board. The board shall require a minimum of common core data to be collected by each operating agency of the state training system.
The board shall develop requirements for minimum common core data in consultation with the office of financial management and the operating agencies of the training system.
(9) Establish minimum standards for program evaluation for the operating agencies of the state training system, including, but not limited to, the use of common survey instruments and procedures for measuring perceptions of program participants and employers of program participants, and monitor such program evaluation.
(10) Every two years administer scientifically based outcome evaluations of the state training system, including, but not limited to, surveys of program participants, surveys of employers of program participants, and matches with employment security department payroll and wage files. Every five years administer scientifically based net-impact and cost-benefit evaluations of the state training system.
(11) In cooperation with the employment security department, provide for the improvement and maintenance of quality and utility in occupational information and forecasts for use in training system planning and evaluation. Improvements shall include, but not be limited to, development of state-based occupational change factors involving input by employers and employees, and delineation of skill and training requirements by education level associated with current and forecasted occupations.
(12) Provide for the development of common course description formats, common reporting requirements, and common definitions for operating agencies of the training system.
(13) Provide for effectiveness and efficiency reviews of the state training system.
(14) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between institutions of the state training system, and encourage articulation agreements for programs encompassing two years of secondary work force education and two years of postsecondary work force education.
(15) In cooperation with the higher education coordinating board, facilitate transfer of credit policies and agreements between private training institutions and institutions of the state training system.
(16) Participate in the development of coordination criteria for activities under the job training partnership act with related programs and services provided by state and local education and training agencies.
(17) Make recommendations to the commission of student assessment, the state board of education, and the superintendent of public instruction, concerning basic skill competencies and essential core competencies for K-12 education. Basic skills for this purpose shall be reading, writing, computation, speaking, and critical thinking, essential core competencies for this purpose shall be English, math, science/technology, history, geography, and critical thinking. The board shall monitor the development of and provide advice concerning secondary curriculum which integrates vocational and academic education.
(18) Establish and administer programs for marketing and outreach to businesses and potential program participants.
(19) Facilitate the location of support services, including but not limited to, child care, financial aid, career counseling, and job placement services, for students and trainees at institutions in the state training system, and advocate for support services for trainees and students in the state training system.
(20) Facilitate private sector assistance for the state training system, including but not limited to: Financial assistance, rotation of private and public personnel, and vocational counseling.
(21) Facilitate programs for school-to-work transition that combine classroom education and on-the-job training in industries and occupations without a significant number of apprenticeship programs.
(22) Encourage and assess progress for the equitable representation of racial and ethnic minorities, women, and people with disabilities among the students, teachers, and administrators of the state training system. Equitable, for this purpose, shall mean substantially proportional to their percentage of the state population in the geographic area served. This function of the board shall in no way lessen more stringent state or federal requirements for representation of racial and ethnic minorities, women, and people with disabilities.
(23) Participate in the planning and policy development of governor set-aside grants under P.L. 97-300, as amended.
(24) Administer veterans' programs, licensure of private vocational schools, the job skills program, and the Washington award for vocational excellence.
(25) Allocate funding from the state job training trust fund.
(26) Work with the director of community and economic development to ensure coordination between work force training priorities and that department's economic development efforts.
(27) Adopt rules as necessary to implement this chapter.
The board may delegate to the director any of the functions of this section.
Sec. 18. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:
There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the ((department of trade)) community and economic development department, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, and (15) ((the department of community development, and (16))) the department of health, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.
Sec. 19. RCW 43.17.020 and 1989 1st ex.s. c 9 s 811 are each amended to read as follows:
There shall be a chief executive officer of each department to be known as: (1) The secretary of social and health services, (2) the director of ecology, (3) the director of labor and industries, (4) the director of agriculture, (5) the director of fisheries, (6) the director of wildlife, (7) the secretary of transportation, (8) the director of licensing, (9) the director of general administration, (10) the director of ((trade)) community and economic development, (11) the director of veterans affairs, (12) the director of revenue, (13) the director of retirement systems, (14) the secretary of corrections, and (15) ((the director of community development, and (16))) the secretary of health.
Such officers, except the secretary of transportation, shall be appointed by the governor, with the consent of the senate, and hold office at the pleasure of the governor. The director of wildlife, however, shall be appointed according to the provisions of RCW 77.04.080. If a vacancy occurs while the senate is not in session, the governor shall make a temporary appointment until the next meeting of the senate. A temporary director of wildlife shall not serve more than one year. The secretary of transportation shall be appointed by the transportation commission as prescribed by RCW 47.01.041.
NEW SECTION. Sec. 20. The department of community development is hereby abolished and its powers, duties, and functions are hereby transferred to the community and economic development department.
NEW SECTION. Sec. 21. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of community development shall be delivered to the custody of the community and economic development department. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of community development shall be made available to the community and economic development department. All funds, credits, or other assets held by the department of community development shall be assigned to the community and economic development department.
Any appropriations made to the department of community development shall, on the effective date of this section, be transferred and credited to the community and economic development department.
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. 22. All employees of the department of community development are transferred to the jurisdiction of the community and economic development department. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the community and economic development department to perform their usual duties upon the same terms as formerly, 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. 23. All rules and all pending business before the department of community development shall be continued and acted upon by the community and economic development department. All existing contracts and obligations shall remain in full force and shall be performed by the community and economic development department.
NEW SECTION. Sec. 24. The transfer of the powers, duties, functions, and personnel of the department of community development shall not affect the validity of any act performed prior to the effective date of this section.
NEW SECTION. Sec. 25. If apportionments of budgeted funds are required because of the transfers directed by sections 21 through 24 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. 26. Nothing contained in sections 20 through 25 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. 27. The department of trade and economic development is hereby abolished and its powers, duties, and functions are hereby transferred to the community and economic development department.
NEW SECTION. Sec. 28. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of trade and economic development shall be delivered to the custody of the community and economic development department. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of trade and economic development shall be made available to the community and economic development department. All funds, credits, or other assets held by the department of trade and economic development shall be assigned to the community and economic development department.
Any appropriations made to the department of trade and economic development shall, on the effective date of this section, be transferred and credited to the community and economic development department.
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. 29. All employees of the department of trade and economic development are transferred to the jurisdiction of the community and economic development department. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the community and economic development department to perform their usual duties upon the same terms as formerly, 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. 30. All rules and all pending business before the department of trade and economic development shall be continued and acted upon by the community and economic development department. All existing contracts and obligations shall remain in full force and shall be performed by the community and economic development department.
NEW SECTION. Sec. 31. The transfer of the powers, duties, functions, and personnel of the department of trade and economic development shall not affect the validity of any act performed prior to the effective date of this section.
NEW SECTION. Sec. 32. If apportionments of budgeted funds are required because of the transfers directed by sections 28 through 31 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. 33. Nothing contained in sections 27 through 32 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. 34. RCW 19.85.020 and 1989 c 374 s 1 are each amended to read as follows:
Unless the context clearly indicates otherwise, the definitions in this section apply through this chapter.
(1) "Small business" ((has the meaning given in RCW 43.31.025(4))) means any business entity, including a sole proprietorship, corporation, partnership, or other legal entity, that is owned and operated independently from all other businesses, that has the purpose of making a profit, and that has fifty or fewer employees.
(2) "Small business economic impact statement" means a statement meeting the requirements of RCW 19.85.040 prepared by a state agency pursuant to RCW 19.85.030.
(3) "Industry" means all of the businesses in this state in any one three-digit standard industrial classification as published by the United States department of commerce.
Sec. 35. RCW 42.17.310 and 1992 c 139 s 5 and 1992 c 71 s 12 are each reenacted and amended to read as follows:
(1) The following are exempt from public inspection and copying:
(a) Personal information in any files maintained for students in public schools, patients or clients of public institutions or public health agencies, or welfare recipients.
(b) Personal information in files maintained for employees, appointees, or elected officials of any public agency to the extent that disclosure would violate their right to privacy.
(c) Information required of any taxpayer in connection with the assessment or collection of any tax if the disclosure of the information to other persons would (i) be prohibited to such persons by RCW 82.32.330 or (ii) violate the taxpayer's right to privacy or result in unfair competitive disadvantage to the taxpayer.
(d) Specific intelligence information and specific investigative records compiled by investigative, law enforcement, and penology agencies, and state agencies vested with the responsibility to discipline members of any profession, the nondisclosure of which is essential to effective law enforcement or for the protection of any person's right to privacy.
(e) Information revealing the identity of persons who are witnesses to or victims of crime or who file complaints with investigative, law enforcement, or penology agencies, other than the public disclosure commission, if disclosure would endanger any person's life, physical safety, or property. If at the time a complaint is filed the complainant, victim or witness indicates a desire for disclosure or nondisclosure, such desire shall govern. However, all complaints filed with the public disclosure commission about any elected official or candidate for public office must be made in writing and signed by the complainant under oath.
(f) Test questions, scoring keys, and other examination data used to administer a license, employment, or academic examination.
(g) Except as provided by chapter 8.26 RCW, the contents of real estate appraisals, made for or by any agency relative to the acquisition or sale of property, until the project or prospective sale is abandoned or until such time as all of the property has been acquired or the property to which the sale appraisal relates is sold, but in no event shall disclosure be denied for more than three years after the appraisal.
(h) Valuable formulae, designs, drawings, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss.
(i) Preliminary drafts, notes, recommendations, and intra-agency memorandums in which opinions are expressed or policies formulated or recommended except that a specific record shall not be exempt when publicly cited by an agency in connection with any agency action.
(j) Records which are relevant to a controversy to which an agency is a party but which records would not be available to another party under the rules of pretrial discovery for causes pending in the superior courts.
(k) Records, maps, or other information identifying the location of archaeological sites in order to avoid the looting or depredation of such sites.
(l) Any library record, the primary purpose of which is to maintain control of library materials, or to gain access to information, which discloses or could be used to disclose the identity of a library user.
(m) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070.
(n) Railroad company contracts filed prior to July 28, 1991, with the utilities and transportation commission under RCW 81.34.070, except that the summaries of the contracts are open to public inspection and copying as otherwise provided by this chapter.
(o) Financial and commercial information and records supplied by private persons pertaining to export services provided pursuant to chapter 43.163 RCW and chapter 53.31 RCW.
(p) Financial disclosures filed by private vocational schools under chapter 28C.10 RCW.
(q) Records filed with the utilities and transportation commission or attorney general under RCW 80.04.095 that a court has determined are confidential under RCW 80.04.095.
(r) Financial and commercial information and records supplied by businesses during application for loans or program services provided by chapters 43.163 ((RCW and chapters 43.31, 43.63A)), 43.-- (sections 1 through 7, 9 through 16, 81, and 85 of this act), and 43.168 RCW.
(s) Membership lists or lists of members or owners of interests of units in timeshare projects, subdivisions, camping resorts, condominiums, land developments, or common-interest communities affiliated with such projects, regulated by the department of licensing, in the files or possession of the department.
(t) All applications for public employment, including the names of applicants, resumes, and other related materials submitted with respect to an applicant.
(u) The residential addresses and residential telephone numbers of employees or volunteers of a public agency which are held by the agency in personnel records, employment or volunteer rosters, or mailing lists of employees or volunteers.
(v) The residential addresses and residential telephone numbers of the customers of a public utility contained in the records or lists held by the public utility of which they are customers.
(w) Information obtained by the board of pharmacy as provided in RCW 69.45.090.
(x) Information obtained by the board of pharmacy or the department of health and its representatives as provided in RCW 69.41.044, 69.41.280, and 18.64.420.
(y) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW.
(z) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information.
(aa) Financial and valuable trade information under RCW 51.36.120.
(bb) Client records maintained by an agency that is a domestic violence program as defined in RCW 70.123.020 or a rape crisis center as defined in RCW 70.125.030.
(cc) Information that identifies a person who, while an agency employee: (i) Seeks advice, under an informal process established by the employing agency, in order to ascertain his or her rights in connection with a possible unfair practice under chapter 49.60 RCW against the person; and (ii) requests his or her identity or any identifying information not be disclosed.
(dd) Business related information protected from public inspection and copying under RCW 15.86.110.
(2) Except for information described in subsection (1)(c)(i) of this section and confidential income data exempted from public inspection pursuant to RCW 84.40.020, the exemptions of this section are inapplicable to the extent that information, the disclosure of which would violate personal privacy or vital governmental interests, can be deleted from the specific records sought. No exemption may be construed to permit the nondisclosure of statistical information not descriptive of any readily identifiable person or persons.
(3) Inspection or copying of any specific records exempt under the provisions of this section may be permitted if the superior court in the county in which the record is maintained finds, after a hearing with notice thereof to every person in interest and the agency, that the exemption of such records is clearly unnecessary to protect any individual's right of privacy or any vital governmental function.
(4) Agency responses refusing, in whole or in part, inspection of any public record shall include a statement of the specific exemption authorizing the withholding of the record (or part) and a brief explanation of how the exemption applies to the record withheld.
Sec. 36. RCW 42.17.319 and 1989 c 312 s 7 are each amended to read as follows:
Notwithstanding the provisions of RCW 42.17.260 through 42.17.340, no financial or proprietary information supplied by investors or entrepreneurs under chapter ((43.31)) 43.-- RCW (sections 1 through 7, 9 through 16, 81, and 85 of this act) shall be made available to the public.
Sec. 37. RCW 43.17.065 and 1991 c 314 s 28 are each amended to read as follows:
(1) Where power is vested in a department to issue permits, licenses, certifications, contracts, grants, or otherwise authorize action on the part of individuals, businesses, local governments, or public or private organizations, such power shall be exercised in an expeditious manner. All departments with such power shall cooperate with officials of the business assistance center of the ((department of trade)) community and economic development department, and any other state officials, when such officials request timely action on the part of the issuing department.
(2) After August 1, 1991, any agency to which subsection (1) of this section applies shall, with regard to any permits or other actions that are necessary for economic development in timber impact areas, as defined in RCW 43.31.601, respond to any completed application within forty-five days of its receipt; any response, at a minimum, shall include:
(a) The specific steps that the applicant needs to take in order to have the application approved; and
(b) The assistance that will be made available to the applicant by the agency to expedite the application process.
(3) The agency timber task force established in RCW 43.31.621 shall oversee implementation of this section.
(4) Each agency shall define what constitutes a completed application and make this definition available to applicants.
Sec. 38. RCW 43.20A.750 and 1992 c 21 s 4 are each amended to read as follows:
(1) The department of social and health services shall help families and workers in timber impact areas make the transition through economic difficulties and shall provide services to assist workers to gain marketable skills. The department, as a member of the agency timber task force and in consultation with the economic recovery coordination board, and, where appropriate, under an interagency agreement with the ((department of)) community and economic development department, shall provide grants through the office of the secretary for services to the unemployed in timber impact areas, including providing direct or referral services, establishing and operating service delivery programs, and coordinating delivery programs and delivery of services. These grants may be awarded for family support centers, reemployment centers, or other local service agencies.
(2) The services provided through the grants may include, but need not be limited to: Credit counseling; social services including marital counseling; psychotherapy or psychological counseling; mortgage foreclosures and utilities problems counseling; drug and alcohol abuse services; medical services; and residential heating and food acquisition.
(3) Funding for these services shall be coordinated through the economic recovery coordination board which will establish a fund to provide child care assistance, mortgage assistance, and counseling which cannot be met through current programs. No funds shall be used for additional full-time equivalents for administering this section.
(4)(a) Grants for family support centers are intended to provide support to families by responding to needs identified by the families and communities served by the centers. Services provided by family support centers may include parenting education, child development assessments, health and nutrition education, counseling, and information and referral services. Such services may be provided directly by the center or through referral to other agencies participating in the interagency team.
(b) The department shall consult with the council on child abuse or neglect regarding grants for family support centers.
(5) "Timber impact area" means:
(a) A county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average; or
(b) Additional communities as the economic recovery coordinating board, established in RCW 43.31.631, designates based on a finding by the board that each designated community is socially and economically integrated with areas that meet the definition of a timber impact area under (a) of this subsection.
Sec. 39. RCW 19.27.070 and 1989 c 246 s 2 are each amended to read as follows:
There is hereby established a state building code council to be appointed by the governor.
(1) The state building code council shall consist of fifteen members, two of whom shall be county elected legislative body members or elected executives and two of whom shall be city elected legislative body members or mayors. One of the members shall be a local government building code enforcement official and one of the members shall be a local government fire service official. Of the remaining nine members, one member shall represent general construction, specializing in commercial and industrial building construction; one member shall represent general construction, specializing in residential and multifamily building construction; one member shall represent the architectural design profession; one member shall represent the structural engineering profession; one member shall represent the mechanical engineering profession; one member shall represent the construction building trades; one member shall represent manufacturers, installers, or suppliers of building materials and components; one member shall be a person with a physical disability and shall represent the disability community; and one member shall represent the general public. At least six of these fifteen members shall reside east of the crest of the Cascade mountains. The council shall include: Two members of the house of representatives appointed by the speaker of the house, one from each caucus; two members of the senate appointed by the president of the senate, one from each caucus; and an employee of the electrical division of the department of labor and industries, as ex officio, nonvoting members with all other privileges and rights of membership. Terms of office shall be for three years. The council shall elect a member to serve as chair of the council for one-year terms of office. Any member who is appointed by virtue of being an elected official or holding public employment shall be removed from the council if he or she ceases being such an elected official or holding such public employment. Before making any appointments to the building code council, the governor shall seek nominations from recognized organizations which represent the entities or interests listed in this subsection. Members serving on the council on July 28, 1985, may complete their terms of office. Any vacancy shall be filled by alternating appointments from governmental and nongovernmental entities or interests until the council is constituted as required by this subsection.
(2) Members shall not be compensated but shall receive reimbursement for travel expenses in accordance with RCW 43.03.050 and 43.03.060.
(3) The ((department of)) community and economic development department shall provide ((administrative and clerical assistance)) staff to the building code council.
Sec. 40. RCW 19.27.074 and 1989 c 266 s 3 are each amended to read as follows:
(1) The state building code council shall:
(a) Adopt and maintain the codes to which reference is made in RCW 19.27.031 in a status which is consistent with the state's interest as set forth in RCW 19.27.020. In maintaining these codes, the council shall regularly review updated versions of the codes referred to in RCW 19.27.031 and other pertinent information and shall amend the codes as deemed appropriate by the council;
(b) Approve or deny all county or city amendments to any code referred to in RCW 19.27.031 to the degree the amendments apply to single family or multifamily residential buildings; and
(c) As required by the legislature, develop and adopt any codes relating to buildings((; and
(d) Propose a budget for the operation of the state building code council to be submitted to the office of financial management pursuant to RCW 43.88.090)).
(2) The state building code council may:
(a) Appoint technical advisory committees which may include members of the council; and
(b) ((Employ permanent and temporary staff and contract for services; and
(c))) Conduct research into matters relating to any code or codes referred to in RCW 19.27.031 or any related matter.
All meetings of the state building code council shall be open to the public under the open public meetings act, chapter 42.30 RCW. All actions of the state building code council which adopt or amend any code of state-wide applicability shall be pursuant to the administrative procedure act, chapter 34.05 RCW.
All council decisions relating to the codes enumerated in RCW 19.27.031 shall require approval by at least a majority of the members of the council.
All decisions to adopt or amend codes of state-wide application shall be made prior to December 1 of any year and shall not take effect before the end of the regular legislative session in the next year.
Sec. 41. RCW 43.31.057 and 1986 c 183 s 2 are each amended to read as follows:
The ((department of trade)) community and economic development department is directed to develop and promote means to stimulate the expansion of the market for Washington products and shall have the following powers and duties:
(1) To develop a pamphlet for state-wide circulation which will encourage the purchase of items produced in the state of Washington;
(2) To include in the pamphlet a listing of products of Washington companies which individuals can examine when making purchases so they may have the opportunity to select one of those products in support of this program;
(3) To distribute the pamphlets on the broadest possible basis through local offices of state agencies, business organizations, chambers of commerce, or any other means the department deems appropriate;
(4) In carrying out these powers and duties the department shall cooperate and coordinate with other agencies of government and the private sector.
Sec. 42. RCW 43.31.085 and 1989 c 430 s 2 are each amended to read as follows:
The business assistance center shall:
(1) Serve as the state's lead agency and advocate for the development and conservation of businesses.
(2) Coordinate the delivery of state programs to assist businesses.
(3) Provide comprehensive referral services to businesses requiring government assistance.
(4) Serve as the business ombudsman within state government and advise the governor and the legislature of the need for new legislation to improve the effectiveness of state programs to assist businesses.
(5) Aggressively promote business awareness of the state's business programs and distribute information on the services available to businesses.
(6) Develop, in concert with local economic development and business assistance organizations, coordinated processes that complement both state and local activities and services.
(7) The business assistance center shall work with other federal, state, and local agencies and organizations to ensure that business assistance services including small business, trade services, and distressed area programs are provided in a coordinated and cost-effective manner.
(8) In collaboration with the child care coordinating committee in the department of social and health services, prepare and disseminate information on child care options for employers and the existence of the program. As much as possible, and through interagency agreements where necessary, such information should be included in the routine communications to employers from (a) the department of revenue, (b) the department of labor and industries, (c) ((the department of community development, (d))) the employment security department, (((e))) (d) the ((department of trade)) community and economic development department, (((f))) (e) the small business development center, and (((g))) (f) the department of social and health services.
(9) In collaboration with the child care coordinating committee in the department of social and health services, compile information on and facilitate employer access to individuals, firms, organizations, and agencies that provide technical assistance to employers to enable them to develop and support child care services or facilities.
(10) Actively seek public and private money to support the child care facility fund described in RCW 43.31.502, staff and assist the child care facility fund committee as described in RCW 43.31.504, and work to promote applications to the committee for loan guarantees, loans, and grants.
Sec. 43. RCW 43.31.205 and 1992 c 228 s 2 are each amended to read as follows:
In an effort to enhance the economy of the Tri-Cities area, the ((department of trade)) community and economic development department is directed to promote the existence of the lease between the state of Washington and the federal government executed September 10, 1964, covering one thousand acres of land lying within the Hanford reservation near Richland, Washington, and the opportunity of subleasing the land to entities for nuclear-related industry, in agreement with the terms of the lease. When promoting the existence of the lease, the department shall work in cooperation with any associate development organization((s)) located in or near the Tri-Cities area.
Sec. 44. RCW 43.31.409 and 1989 c 312 s 3 are each amended to read as follows:
There is created in the business assistance center of the ((department of trade)) community and economic development department the Washington investment opportunities office.
Sec. 45. RCW 43.31.411 and 1989 c 312 s 4 are each amended to read as follows:
The Washington investment opportunities office shall:
(1) Maintain a list of all entrepreneurs engaged in manufacturing, wholesaling, transportation services, development of destination tourism resorts, or traded services throughout the state seeking capital resources and interested in the services of the investment opportunities office.
(2) Maintain a file on each entrepreneur which may include the entrepreneur's business plan and any other information which the entrepreneur offers for review by potential investors.
(3) Assist entrepreneurs in procuring the managerial and technical assistance necessary to attract potential investors. Such assistance shall include the automatic referral to the small business innovators opportunity program of any entrepreneur with a new product meriting the services of the program.
(4) Provide entrepreneurs with information about potential investors and provide investors with information about those entrepreneurs which meet the investment criteria of the investor.
(5) Promote small business securities financing.
(6) Remain informed about investment trends in capital markets and preferences of individual investors or investment firms throughout the nation through literature surveys, conferences, and private meetings.
(7) Publicize the services of the investment opportunities office through public meetings throughout the state, appropriately targeted media, and private meetings. Whenever practical, the office shall use the existing services of local associate development organizations in outreach and identification of entrepreneurs and investors.
(8) Report to the ways and means committees and ((commerce and labor)) appropriate economic development committees of the senate and the house of representatives by December 1, 1989, and each year thereafter, on the accomplishments of the office. Such reports shall include:
(a) The number of entrepreneurs on the list referred to in subsection (1) of this section, segregated by standard industrial classification codes;
(b) The number of investments made in entrepreneurs, segregated as required by (a) of this subsection, as a result of contact with the investment opportunities office, the dollar amount of each such investment, the source, by state or nation, of each investment, and the number of jobs created as a result of each investment;
(c) The number of entrepreneurs on the list referred to in subsection (1) of this section segregated by counties, the number of investments, the dollar amount of investments, and the number of jobs created through investments in each county as a result of contact with the investment opportunities office;
(d) A categorization of jobs created through investments made as a result of contact with the investment opportunities office, the number of jobs created in each such category, and the average pay scale for jobs created in each such category;
(e) The results of client satisfaction surveys distributed to entrepreneurs and investors using the services of the investment opportunities office; and
(f) Such other information as the managing director finds appropriate.
Sec. 46. RCW 43.31.422 and 1991 c 272 s 19 are each amended to read as follows:
The Hanford area economic investment fund is established in the custody of the state treasurer. Moneys in the fund shall only be used pursuant to the recommendations of the committee created in RCW 43.31.425 and the approval of the director of ((the department of trade)) community and economic development for Hanford area revolving loan funds, Hanford area infrastructure projects, or other Hanford area economic development and diversification projects, but may not be used for government or nonprofit organization operating expenses. Up to five percent of moneys in the fund may be used for program administration. For the purpose of this chapter "Hanford area" means Benton and Franklin counties. Disbursements from the fund shall be on the authorization of the director of ((trade)) community and economic development or the director's designee after an affirmative vote of at least six members of the committee created in RCW 43.31.425 on any recommendations by the committee created in RCW 43.31.425. The fund is subject to the allotment procedures under chapter 43.88 RCW, but no appropriation is required for disbursements. The legislature intends to establish similar economic investment funds for areas that develop low-level radioactive waste disposal facilities.
Sec. 47. RCW 43.31.504 and 1989 c 430 s 4 are each amended to read as follows:
The child care facility fund committee is established within the business assistance center of the ((department of trade)) community and economic development department. The committee shall administer the child care facility fund, with review by the director of ((the department of trade)) community and economic development.
(1) The committee shall have five members. The director of ((the department of trade)) community and economic development shall appoint the members, who shall include:
(a) Two persons experienced in investment finance and having skills in providing capital to new businesses, in starting and operating businesses, and providing professional services to small or expanding businesses;
(b) One person representing a philanthropic organization with experience in evaluating funding requests;
(c) One child care services expert; and
(d) One early childhood development expert.
In making these appointments, the director shall give careful consideration to ensure that the various geographic regions of the state are represented and that members will be available for meetings and are committed to working cooperatively to address child care needs in Washington state.
(2) The committee shall elect officers from among its membership and shall adopt policies and procedures specifying the lengths of terms, methods for filling vacancies, and other matters necessary to the ongoing functioning of the committee.
(3) Committee members shall serve without compensation, but may request reimbursement for travel expenses as provided in RCW 43.03.050 and 43.03.060.
(4) Committee members shall not be liable to the state, to the child care facility fund, or to any other person as a result of their activities, whether ministerial or discretionary, as members except for willful dishonesty or intentional violation of the law. The ((department of trade)) community and economic development department may purchase liability insurance for members and may indemnify these persons against the claims of others.
Sec. 48. RCW 43.31.522 and 1990 c 57 s 2 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.31.524 and 43.31.526:
(1) "Department" means the ((department of trade)) community and economic development department.
(2) "Center" means the business assistance center established under RCW 43.31.083.
(3) "Director" means the director of ((trade)) community and economic development.
(4) "Local nonprofit organization" means a local nonprofit organization organized to provide economic development or community development services, including but not limited to associate development organizations, economic development councils, and community development corporations.
Sec. 49. RCW 43.31.524 and 1990 c 57 s 3 are each amended to read as follows:
There is established a Washington marketplace program within the business assistance center established under RCW 43.31.083. The program shall assist businesses to competitively meet their needs for goods and services within Washington state by providing information relating to the replacement of imports or the fulfillment of new requirements with Washington products produced in Washington state. The program shall place special emphasis on strengthening rural economies in economically distressed areas of the state meeting the criteria of an "eligible area" as defined in RCW 82.60.020(3). ((The Washington marketplace program shall consult with the community revitalization team established pursuant to chapter 43.165 RCW.))
Sec. 50. RCW 43.31.526 and 1990 c 57 s 4 are each amended to read as follows:
(1) The department shall contract with local nonprofit organizations in ((at least three economically)) distressed areas of the state that meet the criteria of an "eligible area" as defined in RCW 82.60.020(3) to implement the Washington marketplace program in these areas. The department, in order to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas, may enter into joint contracts with multiple nonprofit organizations. Contracts with economic development organizations to foster cooperation and linkages between distressed and nondistressed areas and urban and rural areas shall be structured by the department and the distressed area marketplace programs. Contracts with economic development organizations shall:
(a) Award contracts based on a competitive bidding process, pursuant to chapter 43.19 RCW;
(b) Give preference to nonprofit organizations representing a broad spectrum of community support; and
(c) Ensure that each location contain sufficient business activity to permit effective program operation.
The department may require that contractors contribute at least twenty percent local funding.
(2) The contracts with local nonprofit organizations shall be for, but not limited to, the performance of the following services for the Washington marketplace program:
(a) Contacting Washington state businesses to identify goods and services they are currently buying or are planning in the future to buy out-of-state and determine which of these goods and services could be purchased on competitive terms within the state;
(b) Identifying locally sold goods and services which are currently provided by out-of-state businesses;
(c) Determining, in consultation with local business, goods and services for which the business is willing to make contract agreements;
(d) Advertising market opportunities described in (c) of this subsection; and
(e) Receiving bid responses from potential suppliers and sending them to that business for final selection.
(3) Contracts may include provisions for charging service fees of businesses that profit as a result of participation in the program.
(4) The center shall also perform the following activities in order to promote the goals of the program:
(a) Prepare promotional materials or conduct seminars to inform communities and organizations about the Washington marketplace program;
(b) Provide technical assistance to communities and organizations interested in developing an import replacement program;
(c) Develop standardized procedures for operating the local component of the Washington marketplace program;
(d) Provide continuing management and technical assistance to local contractors; and
(e) Report by December 31 of each year to the ((senate)) appropriate economic development ((and labor committee and to)) committees of the senate and the house of representatives ((trade and economic development committee)) describing the activities of the Washington marketplace program.
Sec. 51. RCW 43.31.621 and 1991 c 314 s 4 are each amended to read as follows:
(1) There is established the agency timber task force. The task force shall be chaired by the timber recovery coordinator. It shall be the responsibility of the coordinator that all directives of chapter 314, Laws of 1991 are carried out expeditiously by the agencies represented in the task force. The task force shall consist of the directors, or representatives of the directors, of the following agencies: The ((department of trade)) community and economic development((, department of community development)) department, employment security department, department of social and health services, state board for community college education, state board for vocational education, or its replacement entity, department of natural resources, department of transportation, state energy office, department of wildlife, University of Washington center for international trade in forest products, and department of ecology. The task force may consult and enlist the assistance of the following: The higher education coordinating board, University of Washington college of forest resources, Washington State University school of forestry, Northwest policy center, state superintendent of public instruction, the Evergreen partnership, Washington association of counties, and rural development council.
(2) This section shall expire June 30, ((1993)) 1995.
Sec. 52. RCW 43.31.641 and 1991 c 314 s 7 are each amended to read as follows:
The ((department of trade)) community and economic development department, as a member of the agency timber task force and in consultation with the board, shall:
(1) Implement an expanded value-added forest products development industrial extension program. The department shall provide technical assistance to small and medium-sized forest products companies to include:
(a) Secondary manufacturing product development;
(b) Plant and equipment maintenance;
(c) Identification and development of domestic market opportunities;
(d) Building products export development assistance;
(e) At-risk business development assistance;
(f) Business network development; and
(g) Timber impact area industrial diversification.
(2) Provide local contracts for small and medium-sized forest product companies, start-ups, and business organizations for business feasibility, market development, and business network contracts that will benefit value-added production efforts in the industry.
(3) Contract with local business organizations in timber impact areas for development of programs to promote industrial diversification. ((In addition,)) The department shall ((develop an interagency agreement with the department of community development for)) provide local capacity-building grants to local governments and community-based organizations in timber impact areas, which may include long-range planning and needs assessments.
For the 1991-93 biennium, the ((department of trade)) community and economic development department shall use funds appropriated for this section for contracts and for no more than two additional staff positions.
Sec. 53. RCW 43.31.651 and 1991 c 314 s 9 are each amended to read as follows:
The ((department of)) community and economic development department as a part of the agency timber task force and in consultation with the board, shall implement a community assistance program to enable communities to build local capacity for sustainable economic development efforts. The program shall provide resources and technical assistance to timber impact areas.
((In addition, the department shall develop an interagency agreement with the department of trade and economic development for local capacity-building grants to local governments and community-based organizations in timber impact areas.))
Sec. 54. RCW 43.31.800 and 1987 c 195 s 4 are each amended to read as follows:
"Director" as used in RCW 43.31.790 through 43.31.850 and 67.16.100 means the director of ((trade)) community and economic development.
Sec. 55. RCW 43.31.830 and 1987 c 195 s 7 are each amended to read as follows:
(1) It shall be the duty of the director of community and economic development to certify, from the applications received, the state international trade fair or fairs qualified and entitled to receive funds under RCW ((43.31.790 through 43.31.850 and)) 67.16.100, ((as now or hereafter amended)) and under rules established by the director.
(2) The director shall make annual allotments to state international trade fairs determined qualified to be entitled to participate in the state trade fair fund and shall fix times for the division of and payment from the state trade fair fund: PROVIDED, That total payment to any one state international trade fair shall not exceed sixty thousand dollars in any one year, where participation or presentation occurs within the United States, and eighty thousand dollars in any one year, where participation or presentation occurs outside the United States: PROVIDED FURTHER, That a state international trade fair may qualify for the full allotment of funds under either category. Upon certification of the allotment and division of fair funds by the director ((of trade and economic development)) the treasurer shall proceed to pay the same to carry out the purposes of RCW ((43.31.790 through 43.31.850 and)) 67.16.100((, as now or hereafter amended)).
Sec. 56. RCW 43.31.840 and 1975 1st ex.s. c 292 s 6 are each amended to read as follows:
The director of community and economic development shall at the end of each year for which an annual allotment has been made, ((cause to be conducted,)) conduct a post audit of all of the books and records of each state international trade fair participating in the state trade fair fund. The purpose of such post audit shall be to determine how and to what extent each participating state international trade fair has expended all of its funds.
The audit required by this section shall be a condition to future allotments of money from the state international trade fair fund, and the director shall make a report of the findings of each post audit and shall use such report as a consideration in an application for any future allocations.
Sec. 57. RCW 43.160.020 and 1992 c 21 s 3 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 community economic revitalization board.
(2) "Bond" means any bond, note, debenture, interim certificate, or other evidence of financial indebtedness issued by the board pursuant to this chapter.
(3) "Department" means the ((department of trade)) community and economic development ((or its successor with respect to the powers granted by this chapter)) department.
(4) "Financial institution" means any bank, savings and loan association, credit union, development credit corporation, insurance company, investment company, trust company, savings institution, or other financial institution approved by the board and maintaining an office in the state.
(5) "Industrial development facilities" means "industrial development facilities" as defined in RCW 39.84.020.
(6) "Industrial development revenue bonds" means tax-exempt revenue bonds used to fund industrial development facilities.
(7) "Local government" means any port district, county, city, or town.
(8) "Sponsor" means any of the following entities which customarily provide service or otherwise aid in industrial or other financing and are approved as a sponsor by the board: A bank, trust company, savings bank, investment bank, national banking association, savings and loan association, building and loan association, credit union, insurance company, or any other financial institution, governmental agency, or holding company of any entity specified in this subsection.
(9) "Umbrella bonds" means industrial development revenue bonds from which the proceeds are loaned, transferred, or otherwise made available to two or more users under this chapter.
(10) "User" means one or more persons acting as lessee, purchaser, mortgagor, or borrower under a financing document and receiving or applying to receive revenues from bonds issued under this chapter.
(11) "Timber impact area" means:
(a) A county having a population of less than five hundred thousand, or a city or town located within a county having a population of less than five hundred thousand, and meeting two of the following three criteria, as determined by the employment security department, for the most recent year such data is available: (i) A lumber and wood products employment location quotient at or above the state average; (ii) projected or actual direct lumber and wood products job losses of one hundred positions or more, except counties having a population greater than two hundred thousand but less than five hundred thousand must have direct lumber and wood products job losses of one thousand positions or more; or (iii) an annual unemployment rate twenty percent or more above the state average; or
(b) Additional communities as the economic recovery coordinating board, established in RCW 43.31.631, designates based on a finding by the board that each designated community is socially and economically integrated with areas that meet the definition of a timber impact area under (a) of this subsection.
Sec. 58. RCW 43.168.020 and 1991 c 314 s 19 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Committee" means the Washington state development loan fund committee.
(2) "Department" means the ((department of)) community and economic development department.
(3) "Director" means the director of ((the department of)) community and economic development.
(4) "Distressed area" means: (a) A county which has an unemployment rate which is twenty percent above the state average for the immediately previous three years; (b) a metropolitan statistical area, as defined by the office of federal statistical policy and standards, United States department of commerce, in which the average level of unemployment for the calendar year immediately preceding the year in which an application is filed under this chapter exceeds the average state unemployment for such calendar year by twenty percent. Applications under this subsection (4)(b) shall be filed by April 30, 1989; (c) an area within a county, which area: (i) Is composed of contiguous census tracts; (ii) has a minimum population of five thousand persons; (iii) has at least seventy percent of its families and unrelated individuals with incomes below eighty percent of the county's median income for families and unrelated individuals; and (iv) has an unemployment rate which is at least forty percent higher than the county's unemployment rate; or (d) a county designated as a timber impact area under RCW 43.31.601 if an application is filed by July 1, 1993. For purposes of this definition, "families and unrelated individuals" has the same meaning that is ascribed to that term by the federal department of housing and urban development in its regulations authorizing action grants for economic development and neighborhood revitalization projects.
(5) "Fund" means the Washington state development loan fund.
(6) "Local development organization" means a nonprofit organization which is organized to operate within an area, demonstrates a commitment to a long-standing effort for an economic development program, and makes a demonstrable effort to assist in the employment of unemployed or underemployed residents in an area.
(7) "Project" means the establishment of a new or expanded business in an area which when completed will provide employment opportunities. "Project" also means the retention of an existing business in an area which when completed will provide employment opportunities.
Sec. 59. RCW 43.210.110 and 1991 c 314 s 12 are each amended to read as follows:
(1) The small business export finance assistance center has the following powers and duties when exercising its authority under RCW 43.210.100(3):
(a) Solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other public or private sources to carry out its purposes;
(b) Offer comprehensive export assistance and counseling to manufacturers relatively new to exporting with gross annual revenues less than twenty-five million dollars. As close to ninety percent as possible of each year's new cadre of clients must have gross annual revenues of less than five million dollars at the time of their initial contract. At least fifty percent of each year's new cadre of clients shall be from timber impact areas as defined in RCW 43.31.601. Counseling may include, but not be limited to, helping clients obtain debt or equity financing, in constructing competent proposals, and assessing federal guarantee and/or insurance programs that underwrite exporting risk; assisting clients in evaluating their international marketplace by developing marketing materials, assessing and selecting targeted markets; assisting firms in finding foreign customers by conducting foreign market research, evaluating distribution systems, selecting and assisting in identification of and/or negotiations with foreign agents, distributors, retailers, and by promoting products through attending trade shows abroad; advising companies on their products, guarantees, and after sales service requirements necessary to compete effectively in a foreign market; designing a competitive strategy for a firm's products in targeted markets and methods of minimizing their commercial and political risks; securing for clients specific assistance as needed, outside the center's field of expertise, by referrals to other public or private organizations. The Pacific Northwest export assistance project shall focus its efforts on facilitating export transactions for its clients, and in doing so, provide such technical services as are appropriate to accomplish its mission either with staff or outside consultants;
(c) Sign three-year counseling agreements with its clients that provide for termination if adequate funding for the Pacific Northwest export assistance project is not provided in future appropriations. Counseling agreements shall not be renewed unless there are compelling reasons to do so, and under no circumstances shall they be renewed for more than two additional years. A counseling agreement may not be renewed more than once. The counseling agreements shall have mutual performance clauses, that if not met, will be grounds for releasing each party, without penalty, from the provisions of the agreement. Clients shall be immediately released from a counseling agreement with the Pacific Northwest export assistance project, without penalty, if a client wishes to switch to a private export management service and produces a valid contract signed with a private export management service, or if the president of the small business export finance assistance center determines there are compelling reasons to release a client from the provisions of the counseling agreement;
(d) May contract with private or public international trade education services to provide Pacific Northwest export assistance project clients with training in international business. The president and board of directors shall decide the amount of funding allocated for educational services based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;
(e) May contract with the Washington state international trade fair to provide services for Pacific Northwest export assistance project clients to participate in one trade show annually. The president and board of directors shall decide the amount of funding allocated for trade fair assistance based on the availability of resources in the operating budget of the Pacific Northwest export assistance project;
(f) Provide biennial assessments of its performance. Project personnel shall work with the department of revenue and employment security department to confidentially track the performance of the project's clients in increasing tax revenues to the state, increasing gross sales revenues and volume of products destined to foreign clients, and in creating new jobs for Washington citizens. A biennial report shall be prepared for the governor and legislature to assess the costs and benefits to the state from creating the project. The president of the small business export finance assistance center shall design an appropriate methodology for biennial assessments in consultation with the director of ((the department of trade)) community and economic development and the director of the Washington state department of agriculture. The department of revenue and the employment security department shall provide data necessary to complete this biennial evaluation, if the data being requested is available from existing data bases. Client-specific information generated from the files of the department of revenue and the employment security department for the purposes of this evaluation shall be kept strictly confidential by each department and the small business export finance assistance center;
(g) Take whatever action may be necessary to accomplish the purposes set forth in RCW 43.210.070 and 43.210.100 through 43.210.120; and
(h) Limit its assistance to promoting the exportation of value-added manufactured goods. The project shall not provide counseling or assistance, under any circumstances, for the importation of foreign made goods into the United States.
(2) The Pacific Northwest export assistance project shall not, under any circumstances, assume ownership or take title to the goods of its clients.
(3) The Pacific Northwest export assistance project may not use any Washington state funds which come from the public treasury of the state of Washington to make loans or to make any payment under a loan guarantee agreement. Under no circumstances may the center use any funds received under RCW 43.210.050 to make or assist in making any loan or to pay or assist in paying any amount under a loan guarantee agreement. Debts of the center shall be center debts only and may be satisfied only from the resources of the center. The state of Washington shall not in any way be liable for such debts.
(4) The Pacific Northwest export assistance project shall make every effort to seek nonstate funds to supplement its operations.
(5) The Pacific Northwest export assistance project shall take whatever steps are necessary to provide its services, if requested, to the states of Oregon, Idaho, Montana, Alaska, and the Canadian provinces of British Columbia and Alberta. Interstate services shall not be provided by the Pacific Northwest export assistance project during its first biennium of operation. The provision of services may be temporary and subject to the payment of fees, or each state may request permanent services contingent upon a level of permanent funding adequate for services provided. Temporary services and fees may be negotiated by the small business export finance assistance center's president subject to approval of the board of directors. The president of the small business export finance assistance center may enter into negotiations with neighboring states to contract for delivery of the project's services. Final contracts for providing the project's counseling and services outside of the state of Washington on a permanent basis shall be subject to approval of the governor, appropriate legislative oversight committees, and the small business export finance assistance center's board of directors.
(6) The small business export finance assistance center may receive such gifts, grants, and endowments from public or private sources as may be made from time to time, in trust or otherwise, for the use and benefit of the purposes of the Pacific Northwest export assistance project and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments.
(7) The president of the small business export finance assistance center, in consultation with the board of directors, may use the following formula in determining the number of clients that can be reasonably served by the Pacific Northwest export assistance project relative to its appropriation. Divide the amount appropriated for administration of the Pacific Northwest export assistance project by the marginal cost of adding each additional Pacific Northwest export assistance project client. For the purposes of this calculation, and only for the first biennium of operation, the biennial marginal cost of adding each additional Pacific Northwest export assistance project client shall be fifty-seven thousand ninety-five dollars. The biennial marginal cost of adding each additional client after the first biennium of operation shall be established from the actual operating experience of the Pacific Northwest export assistance project.
(8) All receipts from the Pacific Northwest export assistance project shall be deposited into the general fund.
Sec. 60. RCW 43.63A.066 and 1990 c 33 s 579 are each amended to read as follows:
The ((department of)) community and economic development department shall have primary responsibility for providing child abuse and neglect prevention training to preschool age children participating in the federal head start program or the early childhood education and assistance program established under RCW 28A.215.010 through 28A.215.200 and 28A.215.900 through 28A.215.908.
Sec. 61. RCW 43.63A.075 and 1985 c 466 s 53 are each amended to read as follows:
The department shall establish a community development finance program. Pursuant to this program, the department shall: (1) Develop expertise in federal, state, and local community and economic development programs; and (2) assist communities and businesses to secure available financing((; and (3) work closely with the department of trade and economic development on financial and technical assistance programs available to small and medium sized businesses)). To the extent permitted by federal law, the department is encouraged to use federal community block grant funds to make urban development action grants to communities which have not been eligible to receive such grants prior to June 30, 1984.
Sec. 62. RCW 43.63A.115 and 1990 c 156 s 1 are each amended to read as follows:
(1) The community action agency network, established initially under the federal economic opportunity act of 1964 and subsequently under the federal community services block grant program of 1981, as amended, shall be a delivery system for federal and state anti-poverty programs in this state, including but not limited to the community services block grant program, the low-income energy assistance program, and the federal department of energy weatherization program.
(2) Local community action agencies comprise the community action agency network. The community action agency network shall serve low-income persons in the counties. Each community action agency and its service area shall be designated in the state federal community service block grant plan as prepared by the ((department of)) community and economic development department.
(3) Funds for anti-poverty programs may be distributed to the community action agencies by the ((department of)) community and economic development department and other state agencies in consultation with the authorized representatives of community action agency networks.
Sec. 63. RCW 43.63A.155 and 1989 c 225 s 5 are each amended to read as follows:
The ((department of)) community and economic development department shall retain the bond information it receives under RCW 39.44.210 and 39.44.230 and shall publish summaries of local government bond issues at least once a year.
The ((department of)) community and economic development department shall adopt rules under chapter 34.05 RCW to implement RCW 39.44.210 and 39.44.230.
Sec. 64. RCW 43.63A.220 and 1987 c 505 s 34 are each amended to read as follows:
(1) The ((department of)) community and economic development department is directed to undertake a study as to the best means of providing encouragement and assistance to the formulation of employee stock ownership plans providing for the partial or total acquisition, through purchase, distribution in lieu of compensation, or a combination of these means or any other lawful means, of shares of stock or other instruments of equity in facilities by persons employed at these facilities in cases in which operations at these facilities would, absent employee equity ownership, be terminated, relocated outside of the state, or so reduced in volume as to entail the permanent layoff of a substantial number of the employees.
(2) In conducting its study, the department shall:
(a) Consider federal and state law relating directly or indirectly to plans proposed under subsection (1) of this section, and to the organization and operation of any trusts established pursuant to the plans, including but not limited to, the federal internal revenue code and any regulations promulgated under the internal revenue code, the federal securities act of 1933 as amended and other federal statutes providing for regulation of the issuance of securities, the federal employee retirement income and security act of 1974 as amended, the Chrysler loan guarantee legislation enacted by the United States congress in 1979, and other federal and state laws relating to employment, compensation, taxation, and retirement;
(b) Consult with relevant persons in the public sector, relevant persons in the private sector, including trustees of any existing employee stock ownership trust, and employees of any firm operating under an employee stock ownership trust, and with members of the academic community and of relevant branches of the legal profession;
(c) Examine the experience of trusts organized pursuant to an employee stock ownership plan in this state or in any other state; and
(d) Make other investigations as it may deem necessary in carrying out the purposes of this section.
(3) Pursuant to the findings and conclusions of the study conducted under subsection (2) of this section, the ((department of)) community and economic development department shall develop a plan to encourage and assist the formulation of employee stock ownership plans providing for the acquisition of stock by employees of facilities in this state which are subject to closure or drastically curtailed operation. The department shall determine the amount of any costs of implementing the plan.
(4) The director of community and economic development shall, within one year of July 28, 1985, report the findings and conclusion of the study, together with details of the plan developed pursuant to the study, to the legislature, and shall include in the report any recommendations for legislation which the director deems appropriate.
(5) The ((department of)) community and economic development department shall carry out its duties under this section using available resources.
Sec. 65. RCW 43.63A.230 and 1988 c 186 s 17 are each amended to read as follows:
(1) The ((department of)) community and economic development department shall integrate an employee ownership program within its existing technical assistance programs. The employee ownership program shall provide technical assistance to cooperatives authorized under chapter 23.78 RCW and conduct educational programs on employee ownership and self-management. The department shall include information on the option of employee ownership wherever appropriate in its various programs.
(2) The department shall maintain a list of firms and individuals with expertise in the field of employee ownership and utilize such firms and individuals, as appropriate, in delivering and coordinating the delivery of technical, managerial, and educational services. In addition, the department shall work with and rely on the services of ((the department of trade and economic development,)) the employment security department((,)) and state institutions of higher education to promote employee ownership.
(3) The department shall report to the governor, the ((trade and)) appropriate economic development ((committee of)) committees of the senate and the house of representatives, ((the commerce and labor committee of the senate,)) and the ways and means committees of each house by December 1 of 1988, and each year thereafter, on the accomplishments of the employee-ownership program. Such reports shall include the number and types of firms assisted, the number of jobs created by such firms, the types of services, the number of workshops presented, the number of employees trained, and the results of client satisfaction surveys distributed to those using the services of the program.
(4) For purposes of this section, an employee stock ownership plan qualifies as a cooperative if at least fifty percent, plus one share, of its voting shares of stock are voted on a one-person-one-vote basis.
Sec. 66. RCW 43.63A.245 and 1992 c 63 s 2 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout RCW 43.63A.240 through 43.63A.270.
"Agency" means one of the agencies or organizations participating in the activities of the senior environmental corps.
"Coordinator" means the person designated by the director of ((the department of)) community and economic development with the advice of the council to administer the activities of the senior environmental corps.
"Corps" means the senior environmental corps.
"Council" means the senior environmental corps coordinating council.
"Department" means the ((department of)) community and economic development department.
"Director" means the director of ((the department of)) community and economic development or the director's authorized representative.
"Representative" means the person who represents an agency on the council and is responsible for the activities of the senior environmental corps in his or her agency.
"Senior" means any person who is fifty-five years of age or over.
"Volunteer" means a person who is willing to work without expectation of salary or financial reward, and who chooses where he or she provides services and the type of services he or she provides.
Sec. 67. RCW 43.63A.247 and 1992 c 63 s 3 are each amended to read as follows:
The senior environmental corps is created within the ((department of)) community and economic development department. The departments of agriculture, community and economic development, employment security, ecology, fisheries, health, natural resources, and wildlife, the parks and recreation commission, and the Puget Sound water quality authority shall participate in the administration and implementation of the corps and shall appoint representatives to the council.
Sec. 68. RCW 43.63A.260 and 1992 c 63 s 5 are each amended to read as follows:
The department shall convene a senior environmental corps coordinating council to meet as needed to establish and assess policies, define standards for projects, evaluate and select projects, develop recruitment, training, and placement procedures, receive and review project status and completion reports, and provide for recognition of volunteer activity. The council shall include representatives appointed by the departments of agriculture, community and economic development, ecology, fisheries, health, natural resources, and wildlife, the parks and recreation commission, and the Puget Sound water quality authority. The council shall develop bylaws, policies and procedures to govern its activities.
The council shall advise the director on distribution of available funding for corps activities.
Sec. 69. RCW 43.63A.275 and 1992 c 65 s 2 are each amended to read as follows:
(1) Each biennium the ((department of)) community and economic development department shall distribute such funds as are appropriated for retired senior volunteer programs (RSVP) as follows:
(a) At least sixty-five percent of the moneys may be distributed according to formulae and criteria to be determined by the ((department of)) community and economic development department in consultation with the RSVP directors association.
(b) Up to twenty percent of the moneys may be distributed by competitive grant process to develop RSVP projects in counties not presently being served, or to expand existing RSVP services into counties not presently served.
(c) Ten percent of the moneys may be used by the ((department of)) community and economic development department for administration, monitoring of the grants, and providing technical assistance to the RSVP projects.
(d) Up to five percent of the moneys may be used to support projects that will benefit RSVPs state-wide.
(2) Grants under subsection (1) of this section shall give priority to programs in the areas of education, tutoring, English as a second language, combating of and education on drug abuse, housing and homeless, and respite care, and shall be distributed in accordance with the following:
(a) None of the grant moneys may be used to displace any paid employee in the area being served.
(b) Grants shall be made for programs that focus on:
(i) Developing new roles for senior volunteers in nonprofit and public organizations with special emphasis on areas targeted in section 1, chapter 65, Laws of 1992. The roles shall reflect the diversity of the local senior population and shall respect their life experiences;
(ii) Increasing the expertise of volunteer managers and RSVP managers in the areas of communication, recruitment, motivation, and retention of today's over-sixty population;
(iii) Increasing the number of senior citizens recruited, referred, and placed with nonprofit and public organizations; and
(iv) Providing volunteer support such as: Mileage to and from the volunteer assignment, recognition, and volunteer insurance.
Sec. 70. RCW 43.63A.300 and 1986 c 266 s 54 are each amended to read as follows:
The legislature finds that fire protection services at the state level are provided by different, independent state agencies. This has resulted in a lack of a comprehensive state-level focus for state fire protection services, funding, and policy. It is the intent of the legislature to consolidate fire protection services into a single state agency and to create a state board with the responsibility of (1) establishing a comprehensive state policy regarding fire protection services and (2) advising the director of community and economic development and the director of fire protection on matters relating to their duties under state law. It is also the intent of the legislature that the fire protection services program created herein will assist local fire protection agencies in program development without encroaching upon their historic autonomy.
Sec. 71. RCW 43.63A.320 and 1986 c 266 s 56 are each amended to read as follows:
Except for matters relating to the statutory duties of the director of community and economic development which are to be carried out through the director of fire protection, the board shall have the responsibility of developing a comprehensive state policy regarding fire protection services. In carrying out its duties, the board shall:
(1) Adopt a state fire protection master plan;
(2) Monitor fire protection in the state and develop objectives and priorities to improve fire protection for the state's citizens;
(3) Establish and promote state arson control programs and ensure development of local arson control programs;
(4) Provide representation for local fire protection services to the governor in state-level fire protection planning matters such as, but not limited to, hazardous materials;
(5) Seek and solicit grants, gifts, bequests, devices, and matching funds for use in furthering the objectives and duties of the board, and establish procedures for administering them;
(6) Promote mutual aid and disaster planning for fire services in this state;
(7) Assure the dissemination of information concerning the amount of fire damage including that damage caused by arson, and its causes and prevention;
(8) Submit annually a report to the governor containing a statement of its official acts pursuant to this chapter, and make such studies, reports, and recommendations to the governor and the legislature as are requested;
(9) Adopt a state fire training and education master plan;
(10) Develop and adopt a master plan for the construction, equipping, maintaining, and operation of necessary fire service training and education facilities, but the authority to construct, equip, and maintain such facilities is subject to chapter 43.19 RCW;
(11) Develop and adopt a master plan for the purchase, lease, or other acquisition of real estate necessary to establish and operate fire service training and education facilities in a manner provided by law;
(12) Adopt standards for state-wide fire service training and education courses including courses in arson detection and investigation for personnel of fire, police, and prosecutor's departments;
(13) Assure the administration of any legislation enacted by the legislature in pursuance of the aims and purposes of any acts of Congress insofar as the provisions thereof may apply;
(14) Cooperate with the common schools, community colleges, institutions of higher education, and any department or division of the state, or of any county or municipal corporation in establishing and maintaining instruction in fire service training and education in accordance with any act of Congress and legislation enacted by the legislature in pursuance thereof and in establishing, building, and operating training and education facilities.
This section does not apply to forest fire service personnel and programs. Industrial fire departments and private fire investigators may participate in training and education programs under this chapter for a reasonable fee established by rule.
Sec. 72. RCW 43.63A.330 and 1986 c 266 s 57 are each amended to read as follows:
In regards to the statutory duties of the director of community and economic development which are to be carried out through the director of fire protection, the board shall serve in an advisory capacity in order to enhance the continuity of state fire protection services. In this capacity, the board shall:
(1) Advise the director of community and economic development and the director of fire protection on matters pertaining to their duties under law; and
(2) Advise the director of community and economic development and the director of fire protection on all budgeting and fiscal matters pertaining to the duties of the director of fire protection and the board.
Sec. 73. RCW 43.63A.340 and 1986 c 266 s 58 are each amended to read as follows:
(1) Wherever the term state fire marshal appears in the Revised Code of Washington or the Washington Administrative Code it shall mean the director of fire protection.
(2) The director of community and economic development shall appoint an assistant director who shall be known as the director of fire protection. The board, after consulting with the director, shall prescribe qualifications for the position of director of fire protection. The board shall submit to the director a list containing the names of three persons whom the board believes meet its qualifications. If requested by the director, the board shall submit one additional list of three persons whom the board believes meet its qualifications. The appointment shall be from one of the lists of persons submitted by the board.
(3) The director of fire protection may designate one or more deputies and may delegate to those deputies his or her duties and authorities as deemed appropriate.
(4) The director of community and economic development, through the director of fire protection, shall, after consultation with the board, prepare a biennial budget pertaining to fire protection services. Such biennial budget shall be submitted as part of the department's budget request.
(5) The director of community and economic development, through the director of fire protection, shall implement and administer, within the constraints established by budgeted resources, the policies of the board and all duties of the director of community and economic development which are to be carried out through the director of fire protection.
(6) The director of community and economic development, through the director of fire protection, shall seek the advice of the board in carrying out his or her duties under law.
Sec. 74. RCW 43.63A.400 and 1987 c 308 s 2 are each amended to read as follows:
The ((department of)) community and economic development department shall distribute grants to eligible public radio and television broadcast stations under RCW 43.63A.410 and 43.63A.420 to assist with programming, operations, and capital needs.
Sec. 75. RCW 43.63A.410 and 1987 c 308 s 3 are each amended to read as follows:
(1) Eligibility for grants under this section shall be limited to broadcast stations which are:
(a) Licensed to Washington state organizations, nonprofit corporations, or other entities under section 73.621 of the regulations of the federal communications commission; and
(b) Qualified to receive community service grants from the federally chartered corporation for public broadcasting. Eligibility shall be established as of February 28th of each year.
(2) The formula in this subsection shall be used to compute the amount of each eligible station's grant under this section.
(a) Appropriations under this section shall be divided into a radio fund, which shall be twenty-five percent of the total appropriation under this section, and a television fund, which shall be seventy-five percent of the total appropriation under this section. Each of the two funds shall be divided into a base grant pool, which shall be fifty percent of the fund, and an incentive grant pool, which shall be the remaining fifty percent of the fund.
(b) Each eligible participating public radio station shall receive an equal share of the radio base grant pool, plus a share of the radio incentive grant pool equal to the proportion its nonfederal financial support bears to the sum of all participating radio stations' nonfederal financial support as most recently reported to the corporation for public broadcasting.
(c) Each eligible participating public television station shall receive an equal share of the television base grant pool, plus a share of the television incentive grant pool equal to the proportion its nonfederal financial support bears to the sum of all participating television stations' nonfederal financial support as most recently reported to the corporation for public broadcasting.
(3) Annual financial reports to the corporation for public broadcasting by eligible stations shall also be submitted by the stations to the ((department of)) community and economic development department.
Sec. 76. RCW 43.63A.440 and 1989 c 424 s 7 are each amended to read as follows:
(1) The ((department of)) community and economic development department shall provide technical and financial assistance to communities adversely impacted by reductions in timber harvested from federal lands. This assistance shall include the formation and implementation of community economic development plans. The ((department of)) community and economic development department shall utilize existing state technical and financial assistance programs, and shall aid communities in seeking private and federal financial assistance for the purposes of this section. The department may contract for services provided for under this section.
(2) The sum of four hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the ((department of)) community and economic development department for the biennium ending June 30, 1991, for the purposes of subsection (1) of this section.
Sec. 77. RCW 43.63A.450 and 1990 c 278 s 2 are each amended to read as follows:
The community diversification program is created in the ((department of)) community and economic development department. The program shall include:
(1) The monitoring and forecasting of shifts in the economic prospects of major defense employers in the state. This shall include but not be limited to the monitoring of defense contract expenditures, other federal contracts, defense employment shifts, the aircraft and aerospace industry, computer products, and electronics;
(2) The identification of cities, counties, or regions within the state that are primarily dependent on defense or other federal contracting and the identification of firms dependent on federal defense contracts;
(3) Assistance to communities in broadening the local economic base through the provision of management assistance, assistance in financing, entrepreneurial training, and assistance to businesses in using off-the-shelf technology to start new production processes or introduce new products;
(4) Formulating a state plan for diversification in defense dependent communities in collaboration with the employment security department((, the department of trade and economic development,)) and the office of financial management. The plan shall use the information made available through carrying out subsections (1) and (2) of this section; and
(5) The identification of diversification efforts conducted by other states, the federal government, and other nations, and the provision of information on these efforts, as well as information gained through carrying out subsections (1) and (2) of this section, to firms, communities, and ((workforces)) work forces that are defense dependent.
The department shall, beginning January 1, 1992, report annually to the governor and the legislature on the activities of the community diversification program.
Sec. 78. RCW 43.63A.460 and 1990 c 176 s 2 are each amended to read as follows:
Beginning on July 1, 1991, the ((department of)) community and economic development department shall be responsible for performing all the consumer complaint and related functions of the state administrative agency that are required for purposes of complying with the regulations established by the federal department of housing and urban development for manufactured housing, including the preparation and submission of the state administrative plan.
The ((department of)) community and economic development department may enter into state or local interagency agreements to coordinate site inspection activities with record monitoring and complaint handling. The interagency agreement may also provide for the reimbursement for cost of work that an agency performs. The department may include other related areas in any interagency agreements which are necessary for the efficient provision of services.
The department of labor and industries shall transfer all records, files, books, and documents necessary for the ((department of)) community and economic development department to assume these new functions.
The directors of ((the department of)) community and economic development and the department of labor and industries shall immediately take such steps as are necessary to ensure that this act is implemented on June 7, 1990.
Sec. 79. RCW 43.63A.600 and 1991 c 315 s 23 are each amended to read as follows:
(1) The ((department of)) community and economic development department, as a member of the agency timber task force and in consultation with the economic recovery coordination board, shall establish and administer the emergency mortgage and rental assistance program. The department shall identify the communities most adversely affected by reductions in timber harvest levels and shall prioritize assistance under this program to these communities. The department shall work with the department of social and health services and the timber recovery coordinator to develop the program in timber impact areas. Organizations eligible to receive funds for distribution under the program are those organizations that are eligible to receive assistance through the Washington housing trust fund.
(2) The goals of the program are to:
(a) Provide temporary emergency mortgage or rental assistance loans on behalf of dislocated forest products workers in timber impact areas who are unable to make current mortgage or rental payments on their permanent residences and are subject to immediate eviction for nonpayment of mortgage installments or nonpayment of rent;
(b) Prevent the dislocation of individuals and families from their permanent residences and their communities; and
(c) Maintain economic and social stability in timber impact areas.
Sec. 80. RCW 43.105.020 and 1990 c 208 s 3 are each amended to read as follows:
As used in this chapter, unless the context indicates otherwise, the following definitions shall apply:
(1) "Department" means the department of information services;
(2) "Board" means the information services board;
(3) "Local governments" includes all municipal and quasi municipal corporations and political subdivisions, and all agencies of such corporations and subdivisions authorized to contract separately;
(4) "Director" means the director of the department;
(5) "Purchased services" means services provided by a vendor to accomplish routine, continuing, and necessary functions. This term includes, but is not limited to, services acquired for equipment maintenance and repair, operation of a physical plant, security, computer hardware and software installation and maintenance, data entry, keypunch services, programming services, and computer time-sharing;
(6) "Backbone network" means the shared high-density portions of the state's telecommunications transmission facilities. It includes specially conditioned high-speed communications carrier lines, multiplexors, switches associated with such communications lines, and any equipment and software components necessary for management and control of the backbone network;
(7) "Telecommunications" means the transmission of information by wire, radio, optical cable, electromagnetic, or other means;
(8) "Information processing" means the electronic capture, collection, storage, manipulation, transmission, retrieval, and presentation of information in the form of data, text, voice, or image and includes telecommunications and office automation functions;
(9) "Information services" means data processing, telecommunications, and office automation;
(10) "Equipment" means the machines, devices, and transmission facilities used in information processing, such as computers, word processors, terminals, telephones, and cables;
(11) "Proprietary software" means that software offered for sale or license;
(12) "Video telecommunications" means the electronic interconnection of two or more sites for the purpose of transmitting and/or receiving visual and associated audio information. Video telecommunications shall not include existing public television broadcast stations as currently designated by the ((department of)) community and economic development department under chapter ((43.63A)) 43.-- RCW (sections 1 through 7, 9 through 16, 81, and 85 of this act).
NEW SECTION. Sec. 81. (1) All references to the director or department of community development in the Revised Code of Washington shall be construed to mean the director of community and economic development or community and economic development department.
(2) All references to the director or department of trade and economic development in the Revised Code of Washington shall be construed to mean the director of community and economic development or community and economic development department.
Sec. 82. RCW 43.31.091 and 1990 c 297 s 9 are each amended to read as follows:
The business assistance center and its powers and duties shall be terminated on June 30, ((1993)) 1995, as provided in RCW 43.31.092.
Sec. 83. RCW 43.31.092 and 1990 c 297 s 10 are each amended to read as follows:
The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((1994)) 1996:
(1) Section 2, chapter 348, Laws of 1987 and RCW 43.31.083;
(2) Section 11, chapter 466, Laws of 1985, section 3, chapter 348, Laws of 1987, section 2, chapter 430, Laws of 1989 and RCW 43.31.085;
(3) Section 4, chapter 348, Laws of 1987 and RCW 43.31.087; and
(4) Section 5, chapter 348, Laws of 1987 and RCW 43.31.089.
NEW SECTION. Sec. 84. The following acts or parts of acts are each repealed:
(1) RCW 43.31.005 and 1990 1st ex.s. c 17 s 68 & 1985 c 466 s 1;
(2) RCW 43.31.015 and 1985 c 466 s 2;
(3) RCW 43.31.025 and 1987 c 348 s 8 & 1985 c 466 s 3;
(4) RCW 43.31.035 and 1990 1st ex.s. c 17 s 69 & 1985 c 466 s 4;
(5) RCW 43.31.045 and 1985 c 466 s 5;
(6) RCW 43.31.055 and 1985 c 466 s 6;
(7) RCW 43.31.065 and 1985 c 466 s 9;
(8) RCW 43.31.075 and 1985 c 466 s 10;
(9) RCW 43.31.095 and 1985 c 466 s 12;
(10) RCW 43.31.097 and 1990 1st ex.s. c 17 s 71;
(11) RCW 43.31.105 and 1985 c 466 s 13;
(12) RCW 43.31.115 and 1985 c 466 s 14;
(13) RCW 43.31.130 and 1975-'76 2nd ex.s. c 34 s 110 & 1965 c 8 s 43.31.130;
(14) RCW 43.31.135 and 1987 c 505 s 30 & 1985 c 466 s 17;
(15) RCW 43.31.373 and 1988 c 35 s 1, 1985 c 466 s 24, & 1984 c 175 s 1;
(16) RCW 43.31.375 and 1985 c 466 s 25 & 1984 c 175 s 2;
(17) RCW 43.31.377 and 1988 c 35 s 2, 1985 c 466 s 26, & 1984 c 175 s 3;
(18) RCW 43.31.379 and 1988 c 35 s 3, 1985 c 466 s 27, & 1984 c 175 s 4;
(19) RCW 43.31.381 and 1988 c 35 s 4, 1985 c 466 s 28, & 1984 c 175 s 5;
(20) RCW 43.31.383 and 1985 c 466 s 29 & 1984 c 175 s 6;
(21) RCW 43.31.387 and 1985 c 466 s 31 & 1984 c 175 s 8;
(22) RCW 43.31.430 and 1989 c 423 s 2;
(23) RCW 43.31.432 and 1989 c 423 s 3;
(24) RCW 43.31.434 and 1989 c 423 s 6;
(25) RCW 43.31.436 and 1989 c 423 s 7;
(26) RCW 43.31.438 and 1989 c 423 s 8;
(27) RCW 43.31.440 and 1989 c 423 s 9;
(28) RCW 43.31.442 and 1989 c 423 s 10;
(29) RCW 43.31.790 and 1975 1st ex.s. c 292 s 2 & 1965 c 148 s 1;
(30) RCW 43.63A.020 and 1986 c 266 s 136, 1984 c 125 s 2, & 1967 c 74 s 2;
(31) RCW 43.63A.030 and 1984 c 125 s 1 & 1967 c 74 s 3;
(32) RCW 43.63A.040 and 1984 c 125 s 3, 1975 c 40 s 10, & 1967 c 74 s 4;
(33) RCW 43.63A.050 and 1967 c 74 s 5;
(34) RCW 43.63A.060 and 1987 c 505 s 32, 1984 c 125 s 4, & 1967 c 74 s 6;
(35) RCW 43.63A.065 and 1992 c 198 s 7, 1990 1st ex.s. c 17 s 70, 1986 c 266 s 137, & 1984 c 125 s 5;
(36) RCW 43.63A.078 and 1987 c 505 s 33 & 1984 c 125 s 7;
(37) RCW 43.63A.095 and 1984 c 125 s 8;
(38) RCW 43.63A.100 and 1984 c 125 s 9 & 1967 c 74 s 10;
(39) RCW 43.63A.130 and 1983 c 52 s 6, 1981 c 157 s 6, & 1967 c 74 s 13;
(40) RCW 43.63A.140 and 1967 c 74 s 14;
(41) RCW 43.63A.210 and 1985 c 85 s 1;
(42) RCW 43.63A.560 and 1990 1st ex.s. c 17 s 67;
(43) RCW 43.165.020 and 1985 c 229 s 2;
(44) RCW 43.165.030 and 1987 c 195 s 13 & 1985 c 229 s 3;
(45) RCW 43.165.040 and 1985 c 229 s 4;
(46) RCW 43.165.050 and 1985 c 229 s 5;
(47) RCW 43.165.060 and 1985 c 229 s 6;
(48) RCW 43.165.070 and 1985 c 229 s 7;
(49) RCW 43.165.080 and 1987 c 195 s 14 & 1985 c 229 s 8;
(50) RCW 43.165.090 and 1985 c 229 s 9;
(51) RCW 43.165.100 and 1985 c 229 s 10;
(52) RCW 43.165.900 and 1985 c 229 s 14; and
(53) RCW 43.165.901 and 1985 c 229 s 15.
NEW SECTION. Sec. 85. Captions used in this chapter do not constitute part of the law.
NEW SECTION. Sec. 86. Sections 1 through 7, 9 through 16, 81, and 85 of this act shall constitute a new chapter in Title 43 RCW.
NEW SECTION. Sec. 87. Sections 82 and 83 of this act are 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 immediately.
NEW SECTION. Sec. 88. Sections 1 through 7, 9 through 81, 84, and 85 of this act shall take effect July 1, 1994.
NEW SECTION. Sec. 89. 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."
Representative Sheldon moved adoption of the following amendment to the amendment:
On page 6, line 23 of the amendment, after "districts," insert "small and large"
Representatives Sheldon and Forner spoke in favor of adoption of the amendment to the amendment and it was adopted.
Representative Wineberry moved adoption of the following amendment to the amendment:
On page 6, line 27 of the amendment, after "organizations," insert "international trade organizations, minority and women business organizations,"
Representatives Wineberry and Forner spoke in favor of adoption of the amendment to the amendment and the amendment was adopted.
With the consent of the House, Representative Shin withdrew amendment No. 665.
Representative Wineberry moved adoption of the following amendment to the amendment:
On page 62, after line 14 of the amendment, insert the following:
"NEW SECTION. Sec. 90. (1) Wherever the name of the director or the department of community development or the director or the department of trade and economic development is changed to the director of community and economic development or the community and economic development department, rename the director and the department as the director of community, trade, and economic development or the department of community, trade, and economic development.
(2) The code revisor shall incorporate the new director and department names into the striking amendment (H-2574.2/93) before the striking amendment is delivered to the Senate."
Representatives Wineberry, H. Myers, Forner, Reams, Shin and Valle spoke in favor of adoption of the amendment to the amendment and the amendment was adopted.
With the consent of the House, Representative Sheldon withdrew amendment No. 682.
With the consent of the House, Representative Sheldon withdrew amendment No. 503.
Representative Anderson moved adoption of the following amendment to the amendment:
On page 27, beginning on line 6 of the amendment, strike all of sections 39 and 40.
Representatives Anderson, H. Myers and Horn spoke in favor of adoption of the amendment to the amendment and it was adopted.
Representative Forner moved adoption of the following amendment to the amendment:
Strike everything after the enacting clause and insert the following:
"NEW SECTION. Sec. 1. The legislature finds that the long-term health of the state and its citizens depends upon the strength and vitality of its communities. It is essential to the state's future that communities have the ability to: Manage growth and achieve sustainable development; provide equitable access to economic opportunity; stimulate innovation and entrepreneurship; construct public infrastructure; and promote the health and safety of their citizens.
The legislature further finds that as a result of the rapid pace of social and economic change, maintaining the quality of life and standard of living for the citizens of the state will require new and inventive responses by every segment of the community, including local governments, educational institutions, business firms and their employees, labor unions, nonprofit institutions, and individuals. The state can play a role in assisting such local efforts by reorganizing state assistance efforts to promote partnerships among these diverse segments.
The legislature further finds that it is in the interest of the state to restructure the Department of Community Development and the Department of Trade and Economic Development to better coordinate and assist economic self-sufficiency programs in the state's communities. The consolidation of trade, tourism,and economic development programs into the department of trade and economic development will: Improve the efficiency and effectiveness with which state services are delivered; give local communities the capacity to respond to economic change; and increase accountability to the public, the executive, and the legislature.
It is the intent of the legislature in this reorganization to maximize the use of local expertise and resources in the delivery of community and economic development services. It is the further intent of the legislature that the plan provided for in section 4 of this act include recommendations as to how those responsibilities and functions will be changed and integrated into a cohesive and coordinated community and economic development program.
NEW SECTION. Sec. 2. (1) The purpose of this act is to reorganize the department of community development and the department of trade and economic development, putting all economic development and infrastructure financing programs into the department of trade and economic development.
(2) It is also the purpose of this act to change the name of the department of trade and economic development to the department of trade, tourism and economic development.
NEW SECTION. Sec. 3. All references to the director or department of trade and economic development in the Revised Code of Washington shall be construed to mean the director or department of trade, tourism and economic development.
NEW SECTION. Sec. 4. (1) The director of the department of trade and economic development and the director of the department of community development shall, by November 15, 1993, jointly submit a plan to the governor and the legislature for the consolidation and smooth transition to the department of trade and economic development all economic development and infrastructure financing programs in the department of community development by July 1, 1994.
(2) The plan shall include, but is not limited to, the following elements:
(a) Strategies for combining the existing economic development and infrastructure financing functions and responsibilities into the department of trade, tourism and economic development;
(b) Recommendations for any changes in existing programs and functions of both agencies, including new initiatives and possible transfer of programs and functions from other departments;
(c) Implementation steps necessary to bring about operation of the reorganization, including suggested changes to the Revised Code of washington;
(d) Benchmarks by which to measure progress and to evaluate the performance and effectiveness of the department's efforts; and
(e) Strategies for coordinating and maximizing federal, state, and local community and economic development efforts and resources within the state.
(3) In developing this plan, the directors shall establish an advisory committee of representatives of groups using services and programs of both departments. The advisory committee shall include representatives of cities, counties, port districts, businesses, labor unions, associate development organizations, low-income housing interests, Indian tribes, community action programs, public safety groups, community-based nonprofit development organizations, and any other organizations the directors determine should have input to the plan.
NEW SECTION. Sec. 5. The department of trade, tourism and economic development shall be responsible for promoting community and economic development within the state by assisting the state's communities to increase their economic vitality and by assisting the state's businesses to maintain and increase their economic competitiveness. Community and economic development efforts shall include: Efforts to increase economic opportunity; providing public infrastructure; business and trade development; assisting firms and industrial sectors to increase their competitiveness; and technology development, transfer, and diffusion. The department shall have the following functions and responsibilities:
(1) Provide advisory assistance to the governor, other state agencies, and the legislature on community and economic development matters and issues;
(2) Cooperate with the legislature and the governor in the development and implementation of strategic plans for the state's community and economic development efforts;
(3) Solicit private and federal grants for economic development programs and administer such programs in conjunction with other programs assigned to the department by the governor or the legislature;
(4) Undertake business development and retention efforts in coordination with other state agencies, local governments, tribal governments, and public and private local development groups seeking new business investment and the expansion and retention of existing businesses, including providing assistance to local organizations to resolve environmental and natural resource issues related to economic development;
(5) Identify and work with Washington businesses that can use local, state, and federal assistance to increase domestic and foreign exports and that are capable of increasing production of goods and services;
(6) Market the state's products and services internationally in close cooperation with other private and public international trade efforts and act as a centralized location for the assimilation and distribution of trade information;
(7) Market and coordinate the attraction of visitors and conventions to the state and the expansion of the tourism industry throughout the state in cooperation with the visitor industry, as well as public and private tourism development organizations;
(8) Promote, market, and encourage growth in the production of films and videos, as well as television commercials, within the state; and
(9) Conduct research and analysis in furtherance of the state's economic and community development efforts including maintenance of current information on market and economic trends as they affect different industrial sectors, geographic regions, and communities with special economic problems in the state.
Sec. 6. RCW 43.17.010 and 1989 1st ex.s. c 9 s 810 are each amended to read as follows:
There shall be departments of the state government which shall be known as (1) the department of social and health services, (2) the department of ecology, (3) the department of labor and industries, (4) the department of agriculture, (5) the department of fisheries, (6) the department of wildlife, (7) the department of transportation, (8) the department of licensing, (9) the department of general administration, (10) the department of trade, tourism and economic development, (11) the department of veterans affairs, (12) the department of revenue, (13) the department of retirement systems, (14) the department of corrections, and (15) the department of community development, and (16) the department of health, which shall be charged with the execution, enforcement, and administration of such laws, and invested with such powers and required to perform such duties, as the legislature may provide.
NEW SECTION. Sec. 7. If apportionments of budgeted funds are required because of the transfers directed by the plan under section 4 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. 8. The transfer of the powers, duties, functions, and personnel of the department of community development shall not affect the validity of any act performed prior to the effective date of this section.
Sec. 9. RCW 43.31.091 and 1990 c 297 s 9 are each amended to read as follows:
The business assistance center and its powers and duties shall be terminated on June 30, ((1993)) 1995, as provided in RCW 43.31.092.
Sec. 10. RCW 43.31.092 and 1990 c 297 s 10 are each amended to read as follows:
The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, ((1994)) 1996:
(1) Section 2, chapter 348, Laws of 1987 and RCW 43.31.083;
(2) Section 11, chapter 466, Laws of 1985, section 3, chapter 348, Laws of 1987, section 2, chapter 430, Laws of 1989 and RCW 43.31.085;
(3) Section 4, chapter 348, Laws of 1987 and RCW 43.31.087; and
(4) Section 5, chapter 348, Laws of 1987 and RCW 43.31.089.
NEW SECTION. Sec. 11. Sections 4, 9 and 10 of this act are 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 immediately.
NEW SECTION. Sec. 12. Sections 1 through 3 and 5 through 8 of this act shall take effect July 1, 1994.
NEW SECTION. Sec. 13. 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."
Representatives Forner, Reams and Edmondson spoke in favor of adoption of the amendment to the amendment and Representatives Anderson, Sheldon and Wineberry spoke against it.
A division was called. The Speaker called upon the House to divide. The result of the division was 34-YEAS, 64-NAYS. The amendment was not adopted.
Representative Dunshee assumed the chair.
The amendment as amended was adopted.
With the consent of the House, the rules were suspended, the second reading considered the third, and the bill was placed on final passage.
The Speaker (Representative Dunshee presiding) stated the question before the House to be final passage of Engrossed Substitute Senate Bill No. 5868.
Representatives Anderson, Shin and Kremen spoke in favor of passage of the bill and Representatives Reams, Forner and Schoesler spoke against it.
ROLL CALL
The Clerk called the roll on the final passage of Engrossed Substitute Senate Bill No. 5868, as amended by the House, and the bill passed the House by the following vote: Yeas - 70, Nays - 24, Absent - 0, Excused - 4.
Voting yea: Representatives Anderson, Appelwick, Ballasiotes, Basich, Bray, Brown, Brumsickle, Campbell, Chappell, Cole, G., Conway, Dellwo, Dunshee, Eide, Finkbeiner, Fisher, G., Fisher, R., Flemming, Grant, Hansen, Heavey, Holm, Horn, Jacobsen, Johanson, Johnson, L., Johnson, R., Jones, Karahalios, Kessler, King, Kohl, J., Kremen, Lemmon, Leonard, Linville, Lisk, Locke, Long, Ludwig, Mastin, Meyers, R., Miller, Morris, Myers, H., Ogden, Orr, Patterson, Peery, Pruitt, Quall, Rayburn, Riley, Roland, Romero, Rust, Schmidt, Scott, Sheldon, Shin, Sommers, Springer, Thibaudeau, Valle, Veloria, Wang, Wineberry, Wolfe, Zellinsky and Mr. Speaker - 70.
Voting nay: Representatives Ballard, Carlson, Chandler, Cooke, Dyer, Edmondson, Foreman, Forner, Fuhrman, Mielke, Morton, Padden, Reams, Schoesler, Sehlin, Sheahan, Silver, Stevens, Talcott, Tate, Thomas, Vance, Van Luven and Wood - 24.
Excused: Representatives Brough, Casada, Cothern and Dorn - 4.
Engrossed Substitute Senate Bill No. 5868, as amended by the House, having received the constitutional majority, was declared passed.
With the consent of the House, the House advanced to the eleventh order of business.
MOTION
On motion of Representative Sheldon, the House adjourned until 9:00 a.m., Thursday April 22, 1993.
BRIAN EBERSOLE, Speaker
ALAN THOMPSON, Chief Clerk