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FIFTY-EIGHTH DAY


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MORNING SESSION


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Senate Chamber, Olympia, Tuesday, March 7, 1995

      The Senate was called to order at 9:00 a.m. by President Pro Tempore Wojahn. The Secretary called the roll and announced to the President Pro Tempore that all Senators were present except Senator Pelz. On motion of Senator Loveland, Senator Pelz was excused.

      The Sergeant at Arms Color Guard, consisting of Pages Joel Swecker and Brent Yamamoto, presented the Colors. Reverend Phil Rue, pastor of the Gloria Dei Lutheran Church of Olympia, offered the prayer.


MOTION


      On motion of Senator Spanel, the reading of the Journal of the previous day was dispensed with and it was approved.


MESSAGE FROM THE GOVERNOR


February 27, 1995


TO THE HONORABLE, THE SENATE OF THE STATE OF WASHINGTON

Ladies and Gentlemen:

      I have the honor to submit the following appointment, subject to you confirmation.

      Leslie D. Lanksbury, appointed February 27, 1995, for a term ending July 1, 1999, as a member of the Board of Trustees for the State School for the Blind.

Sincerely,

MIKE LOWRY, Governor

      Referred to Committee on Education.


MESSAGE FROM STATE OFFICES


STATE OF WASHINGTON

DEPARTMENT OF HEALTH

DEPARTMENT OF LABOR AND INDUSTRIES

INTERIM INTER-AGENCY REPORT ON CHEMICALLY RELATED ILLNESS (CRI)

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2696

DECEMBER, 1994


EXECUTIVE SUMMARY


Engrossed Substitute House Bill (ESHB) No. 2696 directs the Department of Labor and Industries (L & I) and the Department of Health (DOH) to work together to address the complex issue of chemically related illness.

Chemically Related Illness

The term "chemically related illness" (CRI) refers to illnesses that are known to be or reasonably suspected to be associated with exposures to chemicals in the workplace, in the home and in general environments, through contact with contaminated air, water and food.

A Joint Effort

L & I and DOH are devising strategies for reducing or preventing exposure to chemicals, and aiding care providers in finding solutions to the problems of care and treatment of illness caused by contaminants in the environment. L & I concentrates on the workplace and DOH concentrates on the general public health of Washington residents.

A CRI Claims Unit

L & I established a CRI claims management unit to more efficiently and consistently manage CRI claims. This unit is combined with the Asbestos Fund Section to maximize resources and provide the broadest range of specialized expertise in the handling of complex CRI claims. The CRI unit currently is managing all existing CRI claims filed on or after January 1, 1994, and all claims in which multiple chemical sensitivity (MCS) is contended, regardless of filing date. The unit reviews self-insured claims in which an adverse decision toward the worker is being considered. The unit is not managing chemical burn claims.

CRI Advisory Committee

It is very difficult for people with CRI to find information on resources available to them. Additionally, there are currently few coordinated efforts by agencies to respond to the needs of people with CRI. To assist in the identification of the needs of people with CRI, DOH and L & I are co-leading the CRI Advisory Committee, which was mandated in ESHB No. 2696. This committee has defined goals and objectives, and has an action plan to make recommendations to DOH, L & I and several other agencies regarding services for people with CRI.

Centers of Excellence

Some CRIs have fairly clear definitions, treatment modalities and recognition of illness or injury. Others are not so well-defined. The Centers of Excellence, defined in ESHB No. 2696, are to develop new means of evaluation of illness and exposure that go beyond the routine evaluation of occupational illness. The centers will include clinical evaluation and treatment, education for health-care providers and the general public about CRI, and will do data collection for research. Requests for proposals will be issued in February 1995 with contract and implementation of the centers targeted by June 1995.

CRI Research

In developing a plan to conduct research on CRI, L & I started with the premise that the research funding process must encourage innovative research, be based on sound scientific criteria, be relevant to the concerns of Washington residents, and provide an unbiased and expert review of the research proposals. Such a funding process takes from 9 months to one year to complete. For this reason, a short-term strategy of funding pilot research projects during this biennium was approved by the Workers' Compensation Advisory Committee.

Occupational Disease Reporting on Relevant Data Bases

DOH has the mission of assessing the extent of chemical exposures among state residents. Occupational illness has become an important component of public health concerns. As a large portion of the population is part of the workforce, workplace illness not only affects productivity but is also a significant portion of the total illness reported in the state. A set of criteria has been established to determine which relevant data bases should include occupational information. The criteria are usefulness, quality and feasibility. A more complete picture of the extent of occupational illness will be known when occupational disease is tracked by these data bases.

A Plan to Make Occupational Diseases Reportable Conditions

Surveillance is the eyes and ears of public health. It tells us what our problems are, how big they are, where the solutions should be directed and how well or poorly our solutions have worked. Surveillance occurs when health-care professions report diseases to public health authorities. The Board of Health determines which diseases are reportable. For this reason, a plan developed by representatives of DOH and L & I has been presented to the Board of Health to comply with the requirement of ESHB No. 2696. The Board of Health has made no formal recommendations, but supports the goals of the plan and favors a system that requires a minimum of regulatory requirements and burdens.

Recommendations

That the Legislature authorize:

1. Re-appropriation of unused $1.3 million for research for the next biennium to ensure that research can be done to the fullest extent.

2. One FTE within L & I to oversee the Centers of Excellence.

3. One FTE for DOH to set up, collect and analyze occupational information in the relevant data bases.


      The Interim Inter-Agency Report on Chemically Related Illness (CRI) is on file in the Office of the Secretary of the Senate.


MESSAGE FROM STATE OFFICES


STATE OF WASHINGTON

WASHINGTON STATE BOARD OF HEALTH

1102 SE Quince Street - PO Box 47990

Olympia, Washington 98504-7990


January 3, 1995



Gordon Golob


Dear Gordon:


      E. Coli outbreaks. Sexually transmitted diseases. Contaminated drinking water. Failing septic systems. Pesticide poisonings. Firearm accidents. Automobile crashes. These are public health problems found in communities throughout Washington that policymakers grapple with daily. These are all preventable problems. I am sending you the enclosed Report to show you steps being taken by the state to deal with these public health problems.

      Mandated by our Legislature, the Washington 1994 State Public Health Report is prepared for the 1995-97 biennium for use by state agency administrators to develop their budgets and executive request legislation. We trust this 1994 Report will be a useful reference tool and resource document for your upcoming analyses.

      Prepared by the Washington State Board of Health, this 1994 Report combines broad citizen input, professional knowledge, and the best available data to produce a common vision of a healthy Washington. As required by statute, the Report outlines Washington's Priority Health Goals for the next two years and recommends specific Action Strategies for making progress toward these Goals. The State Board strongly believes that when translated into specific legislative and programmatic initiatives, the Action Strategies will have significant impact on the health of Washington residents.

      In preparing the 1994 Report, the State Board of Health solicited, received, and incorporated input from thousands of Washington citizens through local public forums and focus groups, public testimony, and newspaper and telephone surveys reaching every corner of our State. The Board sought and utilized information, advice, and counsel from hundreds of state and federal agencies. professional and civic organizations, and local and voluntary agencies.

      We think you will be able to use the Report as the public health "book of record" for Washington. The 1994 Washington State Public Health Report is a vital tool and should be of interest to you in evaluating future directions for public health activities in our state. We will appreciate receiving comments from you and your colleagues on the Report in coming months. Your suggestions are welcome as we begin developing the 1996 Report. Do contact us at (360) 586-0399 if you would like additional copies of our Report or there is further information we can provide.

Sincerely,

Sylvia I. Beck, Executive Director



      The Washington 1994 State Public Health Report is on file in the Office of the Secretary of the Senate.



MESSAGE FROM THE HOUSE

March 3, 1995

MR. PRESIDENT:

      The House has passed ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1481, and the same is herewith transmitted.

TIMOTHY A. MARTIN, Chief Clerk


INTRODUCTION AND FIRST READING OF HOUSE BILL


 

E2SHB 1481      by House Committee on Appropriations (originally sponsored by Representatives Cooke, Lambert, Mielke, Van Luven, Elliot, Schoesler, D. Schmidt, Sherstad, Huff, Buck, Clements, McMorris, Johnson, Blanton, Hickel, Boldt, Backlund, Mulliken, Robertson, Goldsmith, L. Thomas, McMahan, Talcott, Cairnes, Thompson, Beeksma, Benton, Foreman, Sehlin, Sheahan and Mitchell)

 

Requiring AFDC contracts and making additional changes in public assistance laws.

 

Referred to Committee on Health and Long-Term Care.

 

SECOND READING

GUBERNATORIAL APPOINTMENTS


MOTION


      On motion of Senator Spanel, Gubernatorial Appointment No. 9083, Grace T. Yuan, as a member of the Board of Trustees for Western Washington University, was confirmed.


APPOINTMENT OF GRACE T. YUAN


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Pelz - 1.


MOTION


      On motion of Senator Sellar, Gubernatorial Appointment No. 9040, Grace L. Lynch, as a member of the Board of Trustees for Wenatchee Valley Community College District No. 15, was confirmed.


APPOINTMENT OF GRACE L. LYNCH


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.


      Vice President Pro Tempore Franklin assumed the Chair.

 

SECOND READING


      SENATE BILL NO. 5124, by Senators Wojahn, Sheldon, Prentice, C. Anderson, McAuliffe and Kohl

 

Revising provisions concerning marriage licenses.


      The bill was read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Senate Bill No. 5124 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5124.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5124 and the bill passed the Senate by the following vote: Yeas, 33; Nays, 16; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, C., Bauer, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Kohl, Long, Loveland, McAuliffe, McCaslin, Moyer, Oke, Owen, Prentice, Quigley, Rasmussen, Rinehart, Sellar, Sheldon, Smith, Snyder, Spanel, Sutherland, Winsley, Wojahn and Wood - 33.

      Voting nay: Senators Anderson, A., Cantu, Finkbeiner, Hochstatter, Johnson, McDonald, Morton, Newhouse, Palmer, Pelz, Prince, Roach, Schow, Strannigan, Swecker and West - 16.

      SENATE BILL NO. 5124, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5024, by Senators Hargrove, Long, Smith, Winsley, McCaslin, Rasmussen, Bauer, Schow and Oke (by request of Department of Corrections)

 

Requiring offenders to assist in paying for certain health care services.


MOTION


      Senator Hargrove moved that Substitute Senate Bill No. 5024 be substituted for Senate Bill No. 5024 and the substitute bill be placed on second reading and read the second time.


OBJECTION TO MOTION TO SUBSTITUTE


      Senator Ann Anderson objected to the motion to substitute Senate Bill No. 5024 since no explanation was given as to the difference in Senate Bill No. 5024 and the proposed Substitute Senate Bill No. 5024.


POINT OF ORDER


      Senator Heavey: "A point of order. Shouldn't the explanation of a substitute follow the motion, because we can't discuss anything without a motion in front of us? I've noticed that we always precede the motion with an explanation, but I think it should follow the motion. I think Senator Hargrove is perfectly in order."

      *EDITOR'S NOTE: See Ruling by Vice President Pro Tempore Franklin after the roll call on final passage of Substitute Senate Bill No. 5024.

      Senator Hargrove explained the proposals in Substitute Senate Bill No. 5024.

      The Vice President Pro Tempore declared the question before the Senate to be the motion by Senator Hargrove that Substitute Senate Bill No. 5024 be substituted for Senate Bill No. 5024.

      Debate ensued.

      The motion by Senator Hargrove carried and Substitute Senate Bill No. 5024 was substituted for Senate Bill No. 5024 and the substitute bill was read the second time.


MOTION


      On motion of Senator Hargrove, the rules were suspended, Substitute Senate Bill No. 5024 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5024.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5024 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5024, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


RULING BY THE VICE PRESIDENT PRO TEMPORE


      Vice President Pro Tempore Franklin: "In ruling upon the point of order raised by Senator Heavey, the President finds that the objection was in order. The motion to substitute was made and discussion was then requested."


      President Pro Tempore Wojahn assumed the Chair.


SECOND READING



      SENATE BILL NO. 5691, by Senators Rasmussen, Newhouse, Loveland, Sellar and Hochstatter

 

Authorizing certain commodity commissions to raise assessments in excess of the fiscal growth factor.


      The bill was read the second time.


MOTIONS


      On motion of Senator Rasmussen, the following Committee on Agriculture, Agriculture and Trade Development amendments were considered simultaneously and were adopted:

      On page 2, line 7, after "three dollars" insert "per two hundred pound bale"

      On page 2, line 11, after "five cents" insert "per pound"

      On motion of Senator Rasmussen, the rules were suspended, Engrossed Senate Bill No. 5691 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 5691.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 5691 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      ENGROSSED SENATE BILL NO. 5691, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5406, by Senators Prentice, Sellar and C. Anderson

 

Continuing market interest rates for consumer credit transactions.


MOTION


      On motion of Senator Prentice, Substitute Senate Bill No. 5406 was substituted for Senate Bill No. 5406 and the substitute bill was placed on second reading and read the second time.


POINT OF INQUIRY


      Senator Sellar: "Senator Prentice, the 1992 deregulation of interest rates on retail installment sales transactions will expire on June 30, 1995, if we do not take action on this bill. Is it the intent of this legislation to have any effect on the rights and obligations of existing retail installment transactions which were entered into prior to the enactment of this bill?"

      Senator Prentice: "No, this bill was drafted in order to permanently deregulate interest rates on retail installment transactions. This bill is not intended to repeal any other protections given to consumers or to retroactively affect any rights or obligations on existing retail installment transactions which were entered into previously. This bill is not intended to affect any litigation currently pending under the Retail Installment Sales Act."

      Senator Sellar: "Senator Prentice, is this bill intended to make deregulation expire for retail installment transactions entered into before the effective date of this legislation?"

      Senator Prentice: "No, the intent of the bill is not to change the substantive provisions of the 1992 law, but to make the 1992 deregulation apply permanently and continuously from 1992 and on indefinitely into the future."


MOTION


      On motion of Senator Prentice, the rules were suspended, Substitute Senate Bill No. 5406 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5406.


ROLL CALL


The Secretary called the roll on the final passage of Substitute Senate Bill No. 5406 the bill passed the Senate by the following vote: Yeas, 46; Nays, 3; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 46.

      Voting nay: Senators Cantu, Pelz and Wojahn - 3.

      SUBSTITUTE SENATE BILL NO. 5406, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5142, by Senators Quigley and Sellar

 

Extending authority to enter into payment agreements.


      The bill was read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Senate Bill No. 5142 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5142.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5142 the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Voting nay: Senator Hochstatter - 1.

      SENATE BILL NO. 5142, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5401, by Senators Quigley, Winsley, Moyer and C. Anderson (by request of Department of Labor and Industries)

 

Extending deadlines for studies of medical benefits for injured workers under a consolidated health care system.


      The bill was read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Senate Bill No. 5401 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5401.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5401 the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Voting nay: Senator Anderson, A. - 1.

      Absent: Senator Rinehart - 1.

      SENATE BILL NO. 5401, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5739, by Senators Strannigan, Rinehart, Johnson, Quigley, Long, Owen, Cantu, Hale, Finkbeiner, McCaslin, Palmer, Hochstatter, McDonald, Spanel, Schow, Prentice, Moyer, Loveland, Swecker, West, Rasmussen, Smith, Drew, Haugen, Franklin, Fairley, A. Anderson, Wojahn, Heavey, McAuliffe, Kohl, Hargrove, Oke and Bauer

 

Exempting certain sales by nonprofit organizations from taxation.


MOTIONS


      On motion of Senator Strannigan, Substitute Senate Bill No. 5739 was substituted for Senate Bill No. 5739 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Strannigan, the rules were suspended, Substitute Senate Bill No. 5739 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5739.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5739 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Absent: Senator Rinehart - 1.

      SUBSTITUTE SENATE BILL NO. 5739, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


PERSONAL PRIVILEGE


      Senator Strannigan: "Madam President, I would like to make a point of personal privilege. As a point of personal privilege, I would just like to thank the Senate for the support on that bill and, also, understand that you wouldn't give me a hard time if you didn't love me."



SECOND READING


      SENATE BILL NO. 5286, by Senators Bauer, Wood, Sheldon and Kohl (by request of Higher Education Coordinating Board)

 

Changing provisions relating to the state educational grant account.


      The bill was read the second time.


MOTION


      On motion of Senator Bauer, the rules were suspended, Senate Bill No. 5286 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5286.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5286 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5286, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5026, by Senator Smith

 

Separating the duties of coroner and prosecuting attorney.


MOTIONS


      On motion of Senator Sheldon, Substitute Senate Bill No. 5026 was substituted for Senate Bill No. 5026 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Sheldon, the rules were suspended, Substitute Senate Bill No. 5026 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5026.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5026 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5026, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5040, by Senators Haugen and Winsley

 

Prescribing the selection process for district court districting committees.


MOTIONS


      On motion of Senator Haugen, Substitute Senate Bill No. 5040 was substituted for Senate Bill No. 5040 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Haugen, the rules were suspended, Substitute Senate Bill No. 5040 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5040.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5040 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5040, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5078, by Senators Fraser, Prentice, Newhouse and Sellar

 

Concerning premium finance agreements.


      The bill was read the second time.


MOTION


      On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5078 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5078.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5078 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5078, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5098, by Senators Loveland and Winsley

 

Reenacting sections about county financial functions.


      The bill was read the second time.


MOTION


      On motion of Senator Sheldon, the rules were suspended, Senate Bill No. 5098 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5098.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5098 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5098, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5118, by Senators Winsley, Long, Bauer, Loveland and Fraser

 

Calculating excess compensation for retirement purposes.


MOTION


      Senator Rinehart moved that Substitute Senate Bill No. 5118 be substituted for Senate Bill No. 5118 and the substitute bill be placed on second reading and read the second time.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Rinehart that Substitute Senate Bill No. 5118 be substituted for Senate Bill No. 5118.

      The motion by Senator Rinehart carried and Substitute Senate Bill No. 5118 was substituted for Senate Bill No. 5118 and the substitute bill was placed on second reading and read the second time.


MOTION


      On motion of Senator Winsley, the rules were suspended, Substitute Senate Bill No. 5118 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5118.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5118 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Absent: Senator Snyder - 1.

      SUBSTITUTE SENATE BILL NO. 5118, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


INTRODUCTION OF SPECIAL GUEST


      The President Pro Tempore welcomed and introduced the Consul of Mexico, Vicente Montemayor, who was seated in the gallery. Consul Montemayor has been in the Seattle Consul Office since March, 1994.


SECOND READING


      SENATE BILL NO. 5163, by Senators Winsley, Haugen and Spanel

 

Revising election filing dates and procedures.


MOTIONS


      On motion of Senator Winsley, Substitute Senate Bill No. 5163 was substituted for Senate Bill No. 5163 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Winsley, the rules were suspended, Substitute Senate Bill No. 5163 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Snyder, and there being no objection, further consideration of Substitute Senate Bill No. 5163 was deferred.


SECOND READING


      SENATE BILL NO. 5165, by Senator Smith

 

Revising the statute of limitations for negotiable instruments.


      The bill was read the second time.


MOTION


      On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5165 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5165.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5165 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5165, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5367, by Senators Smith and Roach

 

Clarifying penalties for failure to obey an officer.


MOTIONS


      On motion of Senator Smith, Substitute Senate Bill No. 5367 was substituted for Senate Bill No. 5367 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Smith, the rules were suspended, Substitute Senate Bill No. 5367 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5367.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5367 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5367, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5369, by Senators Haugen and Winsley

 

Allowing a majority vote to authorize merger of fire protection districts.


      The bill was read the second time.


MOTION


      On motion of Senator Sheldon, the rules were suspended, Senate Bill No. 5369 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5369.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5369 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5369, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5374, by Senators Smith and Roach

 

Establishing registered limited liability partnerships.


MOTIONS


      On motion of Senator Smith, Substitute Senate Bill No. 5374 was substituted for Senate Bill No. 5374 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Smith, the rules were suspended, Substitute Senate Bill No. 5374 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5374.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5374 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5374, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5377, by Senators Quigley and Fairley (by request of Department of Social and Health Services)

 

Modifying physician self-referral provisions.


MOTION


      Senator Quigley moved that Substitute Senate Bill No. 5377 be substituted for Senate Bill No. 5377 and the substitute bill be placed on second reading and read the second time.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the motion by Senator Quigley that Substitute Senate Bill No. 5377 be substituted for Senate Bill No. 5377.

      The motion by Senator Quigley carried and Substitute Senate Bill No. 5377 was substituted for Senate Bill No. 5377 and the substitute bill was placed on second reading and read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Substitute Senate Bill No. 5377 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5377.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5377 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5377, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 11:04 a.m., on motion of Senator Spanel, the Senate was declared to be at ease.


      The Senate was called to order at 11:54 a.m. by Vice President Pro Tempore Franklin.


MOTION


      On motion of Senator West, Senator Prince was excused.


SECOND READING


      SENATE BILL NO. 5652, by Senators Gaspard, McDonald, Smith, Quigley, Wojahn, Hargrove, Heavey, Winsley, Sheldon, Fraser, Loveland, Fairley, Oke, McAuliffe, Spanel, Kohl, Franklin, Drew, Haugen, Owen, Bauer, Snyder, Deccio and Rasmussen

 

Temporarily prohibiting public assistance payments for willful violators of public assistance eligibility provisions.


      The bill was read the second time.


MOTION


      On motion of Senator Quigley, the rules were suspended, Senate Bill No. 5652 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5652.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5652 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Prince - 1.

      SENATE BILL NO. 5652, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 12:00 noon, on motion of Senator Spanel, the Senate recessed until 1:45 p.m.


      The Senate was called to order at 2:01 p.m. by President Pro Tempore Wojahn.


SECOND READING

GUBERNATORIAL APPOINTMENTS


MOTION


      On motion of Senator Hargrove, Gubernatorial Appointment No. 9032, Dr. Jess Jamieson, as a member of the State Hospital, Western Washington Advisory Board, was confirmed.


APPOINTMENT OF DR. JESS JAMIESON


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 45; Nays, 0; Absent, 4; Excused, 0.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Wojahn and Wood - 45.

      Absent: Senators Anderson, C., Pelz, Rinehart and Winsley - 4.


MOTION


      On motion of Senator Loveland, Senators Cal Anderson and Pelz were excused.


MOTION


      On motion of Senator Hargrove, Gubernatorial Appointment No. 9038, Fran Lewis, as a member of the State Hospital, Western Washington Advisory Board, was confirmed.


APPOINTMENT OF FRAN LEWIS


      The Secretary called the roll. The appointment was confirmed by the following vote: Yeas, 47; Nays, 0; Absent, 0 ; Excused, 2.

      Voting yea: Senators Anderson, A., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Anderson, C. and Pelz - 2.



SECOND READING


      SENATE BILL NO. 5017, by Senator Snyder

 

Establishing commercial fishery license fee and renewal provisions for years with no fishing season.


MOTIONS


      On motion of Senator Drew, Substitute Senate Bill No. 5017 was substituted for Senate Bill No. 5017 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Drew, the rules were suspended, Substitute Senate Bill No. 5017 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5017.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5017 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Swecker, West, Winsley, Wojahn and Wood - 48.

      Voting nay: Senator Sutherland - 1.

      SUBSTITUTE SENATE BILL NO. 5017, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 6034, by Senators Quigley, Winsley, Gaspard, Wood, Deccio, Snyder, Rinehart, Sheldon, Spanel, Loveland, Bauer, Owen, Haugen, Heavey, Franklin, Kohl, Prentice, Fraser, Drew, Wojahn, Rasmussen, McAuliffe, Hargrove, Oke and Sutherland

 

Repealing the health insurance coverage mandate for individuals and employers.


      The bill was read the second time.


MOTION


      Senator Moyer moved that the following amendment be adopted:

      On page 1, after line 4, insert the following:

      "Sec. 1. RCW 43.72.810 and 1993 c 492 s 474 are each amended to read as follows:

      (1) The commission shall determine the state and federal laws that would need to be repealed, amended, or waived to implement chapter 492, Laws of 1993, 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 492, Laws of 1993 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 492, Laws of 1993 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 492, Laws of 1993; and (ii) enrollee point of service, cost-sharing levels adopted pursuant to RCW 43.72.130 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. 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 492, Laws of 1993 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 492, Laws of 1993. 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 492, Laws of 1993 have not been obtained:

      (i) The extent to which chapter 492, Laws of 1993 can be implemented without receipt of all of such waivers; and

      (ii) Changes in chapter 492, Laws of 1993 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."

      Renumber the remaining sections consecutively and correct internal references accordingly.


POINT OF ORDER


      Senator Quigley: "Thank you, Madam President. I rise to a point of order. The amendment proposed by the distinguished Senator does not meet the scope and object of the bill. The bill itself deals with the repeal of the mandate that the employer pays fifty percent of the cost of the lowest cost health plan. The amendment at issue here today deals with the direction in the Health Services Act to the Health Services Commission and is not even mentioned in the underlying bill. Beyond that it seeks a waiver of a federal law, also not even mentioned in the underlying bill. This amendment expands the scope and object of this act and I would argue that it is out of order."

      Further debate ensued.


MOTION


      Senator Wood moved that the following amendment by Senators Wood and Moyer be adopted:

      On page 1, after line 4, insert the following:

      "Sec. 1. RCW 43.72.010 and 1994 c 4 s 1 are each amended to read as follows:

      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 RCW 48.43.020 through 48.43.120.

      (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))) (7) "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))) (8) "Enrollee premium sharing" means that portion of the premium that is paid by enrollees or their family members.

      (((10))) (9) "Federal poverty level" means the federal poverty guidelines determined annually by the United States department of health and human services or successor agency.

      (((11))) (10) "Health care facility" or "facility" means hospices licensed under chapter 70.127 RCW, hospitals licensed under chapter 70.41 RCW, rural health care 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))) (11) "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))) (12) "Health insurance purchasing cooperative" or "cooperative" means a member-owned and governed nonprofit organization certified in accordance with RCW 43.72.080 and 48.43.160.

      (((14))) (13) "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))) (14) "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))) (15) "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))) (16) "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))) (17) "Persons of color" means Asians/Pacific Islanders, African, Hispanic, and Native Americans.

      (((19))) (18) "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 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 RCW 43.72.120. Nothing contained in this subsection shall be deemed to preclude the plan from providing benefits to retirees of the employer.

      (22))) (19) "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 RCW 43.72.160 and 43.72.170.

      (((23))) (20) "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))) (21) "Uniform benefits package" or "package" means those appropriate and effective health services, defined by the commission under RCW 43.72.130, that must be offered to all Washington residents through certified health plans.

      (((25))) (22) "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 RCW 43.72.090 through 43.72.240, 43.72.300, 43.72.310, 43.72.800, and chapters 48.43 and 48.85 RCW. "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."

      Renumber the remaining sections consecutively and correct internal references accordingly.


POINT OF ORDER


      Senator Quigley: "A point of order. I rise to challenge the scope and object of the amendment presented. The scope of the bill before the body repeals the requirement that employers pay fifty percent of the lowest cost plan. The amendment offered by the distinguished Senators actually repeals the notion of a registered employer health plan. Registered employer health plans were devised specifically to address the concerns of the largest businesses in this state and while they are an issue worth debating, they are far outside the scope and object of this bill. The bill does not mention registered employer health plans nor does it deal directly with the issues raised with respect to the employer health plan. I argue then that this amendment falls outside the scope and object of the bill."

      Further debate ensued.


MOTION


      On motion of Senator Gaspard, further consideration of Senate Bill No. 6034 was deferred.


MOTION


      At 2:24 p.m., on motion of Senator Spanel, the Senate was declared to be at ease.


      The Senate was called to order at 4:06 p.m. by President Pro Tempore Wojahn.


SECOND READING


      SENATE BILL NO. 5588, by Senators C. Anderson, Smith, Long, Prince, Haugen and Schow.

 

Clarifying protection of private communications.


MOTIONS


      On motion of Senator Smith, Substitute Senate Bill No. 5588 was substituted for Senate Bill No. 5588 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Smith, the rules were suspended, Substitute Senate Bill No. 5588 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5588.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5588 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, West, Winsley, Wojahn and Wood - 47.

      Voting nay: Senator Swecker - 1.

      Absent: Senator McCaslin - 1.

      SUBSTITUTE SENATE BILL NO. 5588, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      There being no objection, the Senate resumed consideration of Senate Bill No. 6034 and the pending amendment by Senator Moyer on page 1, after line 4 and the pending amendment by Senators Wood and Moyer on page 1, after line 4, deferred earlier today.


RULINGS BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "In ruling upon the points of order raised by Senator Quigley, the President finds that Senate Bill No. 6034 is a measure which repeals the requirement that residents of Washington purchase a uniform benefits package from a certified health plan by a date certain and repeals mandatory employer participation in offering health care coverage.

      "The amendment by Senator Moyer on page 1, after line 4, would repeal the requirement that the Governor and the Health Care Commission seek a federal waiver so that the repealed sections could take effect.

      "The amendment by Senators Wood and Moyer on page 1, after line 4, would repeal definitions of terms which appear in other unrepealed sections of the Health Care Law.

      "The President, therefore, finds that the proposed amendment by Senator Moyer on page 1, after line 4, does not change the scope and object of the bill and the point of order is not well taken.

      "The President, therefore, finds that the proposed amendment by Senators Wood and Moyer on page 1, after line 4, does change the scope and object of the bill and the point of order is well taken."


      The amendment by Senator Moyer on page 1, after line 4, to Senate Bill No. 6034 was ruled in order.

      The amendment by Senators Wood and Moyer on page 1, after line 4, to Senate Bill No. 6034 was ruled out of order.


      The President Pro Tempore declared the question before the Senate to be the adoption of the amendment by Senator Moyer on page 1, after line 4, to Senate Bill No. 6034.

      Debate ensued.

      The amendment by Senator Moyer on page 1, after line 4, was adopted.


MOTION


      On motion of Senator Spanel, further consideration of Senate Bill No. 6034 was deferred.


SECOND READING


      SENATE BILL NO. 5568, by Senator Heavey

 

Limiting weight of tire studs.


MOTIONS


      On motion of Senator Owen, Substitute Senate Bill No. 5568 was substituted for Senate Bill No. 5568 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Owen, the rules were suspended, Substitute Senate Bill No. 5568 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5568.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5568 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 4; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Moyer, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, Winsley, Wojahn and Wood - 45.

      Voting nay: Senators Anderson, A., Loveland, Newhouse and West - 4.

      SUBSTITUTE SENATE BILL NO. 5568, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5824, by Senators Haugen and Winsley

 

Changing appointment provisions for the director of a combined city and county health department.


      The bill was read the second time


MOTION


      On motion of Senator Sheldon, the rules were suspended, Senate Bill No. 5824 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5824.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5824 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SENATE BILL NO. 5824, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5350, by Senators Wojahn, Winsley, Haugen, McCaslin, Drew and Kohl

 

Providing for counties' powers over family day-care providers.


MOTIONS


      On motion of Senator Sheldon, Substitute Senate Bill No. 5350 was substituted for Senate Bill No. 5350 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Sheldon, the rules were suspended, Substitute Senate Bill No. 5350 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5350.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5350 and the bill passed the Senate by the following vote: Yeas, 45; Nays, 4; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 45.

      Voting nay: Senators Cantu, Long, Roach and Schow - 4.

      SUBSTITUTE SENATE BILL NO. 5350, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5235, by Senators Bauer, Sutherland, Palmer and Smith

 

Adding a superior court judge in Clark county.


MOTIONS


      On motion of Senator Bauer, Second Substitute Senate Bill No. 5235 was substituted for Senate Bill No. 5235 and the second substitute bill was placed on second reading and read the second time.

      On motion of Senator Bauer, the rules were suspended, Second Substitute Senate Bill No. 5235 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Second Substitute Senate Bill No. 5235.


ROLL CALL


      The Secretary called the roll on the final passage of Second Substitute Senate Bill No. 5235 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SECOND SUBSTITUTE SENATE BILL NO. 5235, having received the constitutional majority, was declared passed. There being

 no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5819, by Senators Spanel, Rasmussen, Owen, Haugen and Oke

 

Providing for property tax deferrals for seniors and persons retired because of physical disability.


      The bill was read the second time.


MOTION


      On motion of Senator Spanel, the rules were suspended, Senate Bill No. 5819 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5819.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5819 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Voting nay: Senator Cantu - 1.

      SENATE BILL NO. 5819, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5957, by Senator Cantu

 

Amending plats.


MOTIONS


      On motion of Senator Winsley, Substitute Senate Bill No. 5957 was substituted for Senate Bill No. 5957 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Winsley, the rules were suspended, Substitute Senate Bill No. 5957 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5957.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5957 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5957, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      There being no objection, the Senate resumed consideration of Senate Bill No. 6034, deferred earlier today after an amendment by Senator Moyer on page 1, after line 4, was ruled to be in order and then adopted.


MOTION


      Senator McDonald moved that the following amendments be considered simultaneously and be adopted:

      On page 1, line 7, after "463;" strike "and"

      On page 1, line 8, after "464" insert "; and

      (3) RCW 43.72.050 and 1993 c 492 s 407"

      On page 1, after line 8, insert the following:

      "Sec. 2. RCW 43.72.010 and 1994 c 4 s 1 are each amended to read as follows:

      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 RCW 48.43.020 through 48.43.120.

      (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))) (5) "Employee" means a resident who is in the employment of an employer, as defined by chapter 50.04 RCW.

      (((7))) (6) "Enrollee" means any person who is a Washington resident enrolled in a certified health plan.

      (((8))) (7) "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))) (8) "Enrollee premium sharing" means that portion of the premium that is paid by enrollees or their family members.

      (((10))) (9) "Federal poverty level" means the federal poverty guidelines determined annually by the United States department of health and human services or successor agency.

      (((11))) (10) "Health care facility" or "facility" means hospices licensed under chapter 70.127 RCW, hospitals licensed under chapter 70.41 RCW, rural health care 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))) (11) "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))) (12) "Health insurance purchasing cooperative" or "cooperative" means a member-owned and governed nonprofit organization certified in accordance with RCW 43.72.080 and 48.43.160.

      (((14))) (13) "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))) (14) "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))) (15) "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)) (16) "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))) (17) "Persons of color" means Asians/Pacific Islanders, African, Hispanic, and Native Americans.

      (((19))) (18) "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))) (19) "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))) (20) "Registered employer health plan" means a 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 RCW 43.72.120. Nothing contained in this subsection shall be deemed to preclude the plan from providing benefits to retirees of the employer.

      (((22))) (21) "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 RCW 43.72.160 and 43.72.170.

      (((23))) (22) "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))) (23) "Uniform benefits package" or "package" means those appropriate and effective health services, defined by the commission under RCW 43.72.130, that must be offered to all Washington residents through certified health plans.

      (((25))) (24) "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 RCW 43.72.090 through 43.72.240, 43.72.300, 43.72.310, 43.72.800, and chapters 48.43 and 48.85 RCW. "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.

      Sec. 3. RCW 43.72.040 and 1994 c 4 s 3 are each amended to read as follows:

      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 492, Laws of 1993. 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 RCW 43.70.520 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 RCW 43.72.130, 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 review various methods for establishing the community-rated maximum premium and shall recommend such methods to the legislature by December 1, 1994.

      The commission may develop and recommend a 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.

      (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))) (6) 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 RCW 43.72.180.

      (((8))) (7) 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))) (8) Monitor the actual growth in total annual health services costs.

      (((10))) (9) Monitor the increased application of technology as required by chapter 492, Laws of 1993 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))) (10) 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))) (11) Establish ((maximum)) enrollee financial participation levels. The levels shall be related to enrollee household income.

      (((13))) (12) Establish rules requiring employee enrollee premium sharing, as defined in RCW 43.72.010(((9))) (8), be paid through deductions from wages or earnings.

      (((14))) (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.

      (((15))) (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 RCW 43.70.500 for these purposes.

      (((16))) (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.

      (((17))) (16) Adopt standards and oversee and develop policy for personal health data and information system as provided in chapter 70.170 RCW.

      (((18))) (17) Adopt standards that prevent conflict of interest by health care providers as provided in RCW 18.130.320.

      (((19))) (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 chapter 492, Laws of 1993.

      (((20))) (19) Evaluate and monitor the extent to which racial and ethnic minorities have access to and receive health services within the state, and develop strategies to address barriers to access.

      (((21))) (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 492, Laws of 1993.

      (((22) Develop rules for implementation of individual and employer participation under RCW 43.72.210 and 43.72.220 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.

      (23))) (21) 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.

      (((24))) (22) Establish a process for purchase of uniform benefits package services by enrollees when they are out-of-state.

      (((25))) (23) 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.

      (((26))) (24) 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.

      (((27))) (25) 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 492, Laws of 1993 when it is fully implemented, and if the commission recommends inclusion of the trusts, how to implement such inclusion.

      (((28))) (26) 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.

      (((29))) (27) 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.

      (((30))) (28) Evaluate the effect of reforms under chapter 492, Laws of 1993 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 policy-making authority and the department of health shall have primary responsibility for the maintenance and routine operation of personal health data systems.

      Sec. 4. RCW 43.72.100 and 1993 c 492 s 428 are each amended to read as follows:

      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 492, Laws of 1993 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 492, Laws of 1993; and

      (18) Disclose any financial interests held by officers and directors in any facilities associated with or operated by the certified health plan.

      Sec. 5. RCW 43.72.110 and 1993 c 492 s 429 are each amended to read as follows:

      (1) For the purposes of this section "limited certified dental plan" or "dental plan" means a limited health (([care])) care 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 RCW 43.72.100.

      (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.

      Sec. 6. RCW 43.72.120 and 1993 c 492 s 430 are each amended to read as follows:

      ((Consistent with the provisions of RCW 43.72.220,)) 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.

      (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. Benefits offered by such plan need not comply with the provisions of RCW 43.72.160 and 43.72.170.

      (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, or the provisions of RCW 49.60.174(2).

      (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 RCW 48.14.0201 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 RCW 48.43.170, 43.72.300, and 43.72.310.

      (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 RCW 48.43.010 for violations of this section.

      Sec. 7. RCW 43.72.170 and 1993 c 492 s 453 are each amended to read as follows:

      (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 RCW 43.72.100(3). ((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 RCW 43.72.040. 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.

      Sec. 8. RCW 48.43.040 and 1993 c 492 s 435 are each amended to read as follows:

      (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 as filed 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."


POINT OF ORDER


      Senator Quigley: "Madam President, I rise to a point of order. I rise to point out that the amendment before us changes and expands the scope and object of the bill. The amendment before us does three things: First of all, it repeals community ratings which had existed in the original law to prevent big business to cost-shift to small business. This prohibition would need to remain in separate and apart from whether employers have to provide insurance at all, and as the Chair has ruled, the original bill simply repeals the mandate that employers participate in offering health care insurance. Second, this bill repeals the maximum enrollee financial participation provision. This provision was designed to protect those poorest members of our society to give them a maximum out-of-pocket cost, so that they could have health care to afford, but this issue needs to exist and does exist separate and apart from whether or not employers participate in offering health care coverage. Finally, this amendment repeals the premium caps; the premium caps apply to the market, as a whole, and is something that can and should exist separate and apart from the repeal of the employer mandate, which the Chair has ruled is the scope of the bill before us. For those reasons, Madam Chair, I argue that these amendments exceed the scope and object of the bill."

      Further debate ensued.


MOTION


      Senator Deccio moved that the following amendment be adopted:

      On page 1, strike all of section 1 and insert the following:

      "Sec. 1. RCW 18.130.320 and 1993 c 492 s 408 are each amended to read as follows:

      The ((Washington health services commission established by RCW 43.72.020, 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.))

      Sec. 2. RCW 28B.125.010 and 1993 c 492 s 270 are each amended to read as follows:

      (1) The higher education coordinating board, the state board for community 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.

      (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.

      (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.

      (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.

      (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.

      (l) An analysis of the need for educational articulation within the various health care disciplines and a plan for addressing the need.

      (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.

      (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.

      (o) A description of needed changes in regulatory laws governing the credentialing of health professionals.

      (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.

      (q) A plan to implement the recommendations of the state-wide nursing plan authorized by RCW 74.39.040.

      (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.

      (s) A description of how the higher education coordinating board, state board for community 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.

      (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. 3. RCW 41.05.011 and 1994 c 153 s 2 are each amended to read as follows:

      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 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)) January 1, 1996, "insuring entity" means a ((certified health plan)) health carrier, as defined in RCW 43.72.010.

      (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 and educational service districts. Between October 1, 1994, and September 30, 1995, "employee" includes employees of those school districts and educational service 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 or educational service 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((; (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)), 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.

      (7) "Board" means the public employees' benefits board established under RCW 41.05.055.

      (8) "Retired or disabled school employee" means:

      (a) Persons who separated from employment with a school district or educational service district and are receiving a retirement allowance under chapter 41.32 or 41.40 RCW as of September 30, 1993;

      (b) Persons who separate from employment with a school district or educational service district on or after October 1, 1993, and immediately upon separation receive a retirement allowance under chapter 41.32 or 41.40 RCW;

      (c) Persons who separate from employment with a school district or educational service district due to a total and permanent disability, and are eligible to receive a deferred retirement allowance under chapter 41.32 or 41.40 RCW.

      Sec. 4. RCW 41.05.021 and 1994 c 309 s 1 are each amended to read as follows:

      (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 administrator may delegate any power or duty vested in him or her by this chapter, including authority to make final decisions and enter final orders in hearings conducted under chapter 34.05 RCW. The primary duties of the authority shall be to administer state employees' insurance benefits and retired or disabled school employees' insurance benefits, 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:

      (a) To administer health care benefit programs for employees and retired or disabled school 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;

      (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:

      (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;

      (ii) Utilization of provider arrangements that encourage cost containment, 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;

      (iii) Coordination of state agency efforts to purchase drugs effectively as provided in RCW 70.14.050;

      (iv) Development of recommendations and methods for purchasing medical equipment and supporting services on a volume discount basis; and

      (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;

      (c) To analyze areas of public and private health care interaction;

      (d) To provide information and technical and administrative assistance to the board;

      (e) To review and approve or deny applications from counties, municipalities, and other political subdivisions of the state to provide state-sponsored insurance or self-insurance programs to their employees in accordance with the provisions of RCW 41.04.205, setting the premium contribution for approved groups as outlined in RCW 41.05.050;

      (f) To appoint a health care policy technical advisory committee as required by RCW 41.05.150;

       (g) To establish billing procedures and collect funds from school districts and educational service districts under RCW 28A.400.400 in a way that minimizes the administrative burden on districts; and

      (h) To promulgate and adopt rules consistent with this chapter as described in RCW 41.05.160.

      (2) ((After July 1, 1995,)) The public employees' benefits board ((shall)) may implement strategies to promote ((managed)) competition among employee health benefit plans ((in accordance with the Washington health services commission schedule of employer requirements. Strategies may include)) including but ((are)) 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 qualified plan within a geographical area. If the state's contribution is less than one hundred percent of the lowest priced qualified 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.

      (3) The health care authority shall, no later than July 1, 1996, submit to the appropriate committees of the legislature, proposed methods whereby, through the use of a voucher-type process, state employees may enroll with any health carrier to receive employee benefits. Such methods shall include the employee option of participating in a health care savings account, as set forth in Title 48 RCW.

      (4) The joint committee on health systems oversight shall study the necessity and desirability of the health care authority continuing as a self-insuring entity and make recommendations to the appropriate committees of the legislature by December 1, 1996.

      Sec. 5. RCW 41.05.022 and 1994 c 153 s 3 are each amended to read as follows:

      (1) The health care authority is hereby designated as the single state agent for purchasing health services.

      (2) On and after January 1, 1995, at least the following state-purchased health services programs shall be merged into a single, community-rated risk pool: Health benefits for employees of school districts and educational service districts that voluntarily purchase health benefits as provided in RCW 41.05.011; health benefits for state employees; health benefits for eligible retired or disabled school employees not eligible for parts A and B of medicare; and health benefits for eligible state retirees not eligible for parts A and B of medicare. Beginning ((July 1, 1995)) January 1, 1996, the basic health plan shall be included in the risk pool. The administrator may develop mechanisms to ensure that the cost of comparable benefits packages does not vary widely across the risk pools before they are merged. 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)) standard benefits package ((as adopted by the Washington health services commission)) as provided in RCW 43.72.130, 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 492, Laws of 1993 as amended by chapter . . ., Laws of 1995 (this act), and that a health maintenance organization, health care service contractor, insurer, or ((certified health plan)) health carrier 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 492, Laws of 1993 as amended by chapter . . ., Laws of 1995 (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 492, Laws of 1993 as amended by chapter . . ., Laws of 1995 (this act);

      (e) Consult regularly with the governor, the legislature, and state agency directors whose operations are affected by the implementation of this section.

      Sec. 6. RCW 41.05.050 and 1994 c 309 s 2 and 1994 c 153 s 4 are each reenacted and amended to read as follows:

      (1) Every department, division, or separate agency of state government, and such county, municipal, school district, educational service district, 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, school district, educational service district, 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. Until October 1, 1995, contributions to be paid by school districts or educational service districts shall be adjusted by the authority to reflect the remittance provided under RCW 28A.400.400.

      (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. 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 492, Laws of 1993)).

      (3) 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. 7. RCW 41.05.065 and 1994 c 153 s 5 are each amended to read as follows:

      (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, however liability insurance shall not be made available to dependents.

      (2) The 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, injury and accident prevention, reduction of alcohol misuse, appropriate weight reduction, exercise, automobile and motorcycle safety, blood cholesterol reduction, and nutrition education;

      (d) Utilization review procedures including, but not limited to a cost-efficient method for 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;

      (e) Effective coordination of benefits;

      (f) Minimum standards for insuring entities; and

      (g) Minimum scope and content of ((standard)) public employee benefit plans to be offered to enrollees participating in the employee health benefit plans. On and after ((July 1, 1995)) January 1, 1996, the ((uniform)) standard 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.

      (5) Employees shall choose participation in 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. 8. RCW 41.05.190 and 1993 c 492 s 221 are each amended to read as follows:

      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.

      Sec. 9. RCW 41.05.200 and 1993 c 492 s 228 are each amended to read as follows:

      (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)) January 1, 1996, the ((uniform)) standard 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 492, Laws of 1993 shall be applicable to the association.

      (5) The administrator shall adopt preexisting condition coverage provisions for the association as provided in RCW 48.20.540, 48.21.340, 48.44.480, and 48.46.550.

      (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.

      Sec. 10. RCW 41.05.220 and 1993 c 492 s 232 are each amended to read as follows:

      (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 492, Laws of 1993, 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 492, Laws of 1993.

      (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.

      Sec. 11. RCW 43.70.500 and 1993 c 492 s 410 are each amended to read as follows:

      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.))

      Sec. 12. RCW 43.70.510 and 1993 c 492 s 417 are each amended to read as follows:

      (1)(a) Health care institutions and medical facilities, other than hospitals, that are licensed by the department, and professional societies or organizations((, and certified health plans approved pursuant to RCW 43.72.100)) 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.

      Sec. 13. RCW 43.70.520 and 1993 c 492 s 467 are each amended to read as follows:

      (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, chapter 492, Laws of 1993.

      (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.

      Sec. 14. RCW 48.14.0201 and 1993 sp.s. c 25 s 601 are each amended to read as follows:

      (1) As used in this section, "taxpayer" means a health maintenance organization, as defined in RCW 48.46.020, or a health care service contractor, as defined in RCW 48.44.010((, or a certified health plan certified under RCW 48.43.030)).

      (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((,)) or health care service contractor's((, or certified health plan's)) prepayment obligations for the current tax year.

      (5) Moneys collected under this section shall be deposited in the general fund through March 31, 1996, and in the health services account under RCW 43.72.900 after March 31, 1996.

      (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 RCW 48.43.030.))

      Sec. 15. RCW 70.47.020 and 1995 c 2 s 3 are each amended to read as follows:

      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 RCW 43.72.010.))

      (4) "Subsidized 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, 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 shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment, 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 shall not have, or shall not have voluntarily relinquished health insurance more comprehensive than that offered by the plan as of the effective date of enrollment, and 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 to a managed health care system on behalf of 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).

      (7) "Premium" means a periodic payment, based upon gross family income which an 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.

      (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. 16. RCW 70.129.150 and 1994 c 214 s 16 are each amended to read as follows:

      (1) Prior to admission, all long-term care facilities or nursing facilities licensed under chapter 18.51 RCW that require payment of an admissions fee, deposit, or a minimum stay fee, by or on behalf of a person seeking ((admissions [admission])) admission to the long-term care facility or nursing facility, shall provide the resident, or his or her representative, full disclosure in writing of the long-term care facility or nursing facility's schedule of charges for items and services provided by the facility and the amount of any admissions fees, deposits, or minimum stay fees. In addition, the long-term care facility or nursing facility shall also fully disclose in writing prior to admission what portion of the deposits, admissions fees, or minimum stay fees will be refunded to the resident or his or her representative if the resident leaves the long-term care facility or nursing facility. If a resident, during the first thirty days of residence, dies or is hospitalized and does not return to the facility, the facility shall refund any deposit already paid less the facility's per diem rate for the days the resident actually resided or reserved a bed in the facility notwithstanding any minimum stay policy. All long-term care facilities or nursing facilities covered under this section are required to refund any and all refunds due the resident or their representative within thirty days from the resident's date of discharge from the facility. Nothing in this section applies to provisions in contracts negotiated between a nursing facility or long-term care facility and a ((certified health plan,)) health or disability insurer, health maintenance organization, managed care organization, or similar entities.

      (2) Where a long-term care facility or nursing facility requires the execution of an admission contract by or on behalf of an individual seeking admission to the facility, the terms of the contract shall be consistent with the requirements of this section.

      Sec. 17. RCW 70.47.060 and 1995 c 2 s 4 are each amended to read as follows:

      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, 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 such services 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. 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 RCW 43.72.130 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 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 premium tax under RCW 48.14.0201.

      (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 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 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.

      (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 semiannually thereafter, or at the request of any enrollee, eligibility due to current gross family income for sliding scale premiums. 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.

      (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 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.

      (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 funding, assistance for rural residents, underserved populations, and persons of color.

      Sec. 18. RCW 70.170.100 and 1993 c 492 s 259 are each amended to read as follows:

      (1) To promote the public interest consistent with the purposes of chapter 492, Laws of 1993, the department is responsible for the development, implementation, and custody of a state-wide 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, health care data needed by consumers, purchasers, health care payers, providers, and state government as consistent with the intent of chapter 492, Laws of 1993. The department shall identify a set of health care data elements and report specifications which satisfy these needs((. The Washington health services commission, created by RCW 43.72.020, shall review the design of the data system)) and may 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 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 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 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.

      In designing the state-wide health care data system and any data plans, the department shall identify health care data elements relating to health care costs, the quality of health care services, the outcomes of health care services, and use of health care by consumers. Data elements shall be reported as the ((Washington health services commission)) department directs by reporters in conformance with a uniform reporting 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 492, Laws of 1993, 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. The commission and the department shall encourage and permit reporting by electronic transmission or hard copy as is practical and economical to reporters.

      (3) The state-wide health care data system shall be uniform in its identification of reporting requirements for reporters across the state to the extent that such uniformity is useful to fulfill the purposes of chapter 492, Laws of 1993. Data reporting requirements may reflect differences that involve pertinent distinguishing features as determined by the ((Washington health services commission)) department by rule. So far as 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, 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 reporters.

      (4) In identifying financial reporting requirements under the state-wide 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.

      (5) The health care data collected, 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 492, Laws of 1993 shall comply with departmental ((or commission)) requirements established by rule in the acquisition of data.

      Sec. 19. RCW 70.170.110 and 1993 c 492 s 260 are each amended to read as follows:

      The department shall provide, or may contract with a private entity to provide, analyses and reports or any studies it chooses to conduct consistent with the purposes of chapter 492, Laws of 1993, subject to the availability of funds ((and any policy direction that may be given by the Washington health services commission)). These studies, analyses, or reports shall include:

      (1) ((Consumer guides on purchasing or consuming health care and publications providing verifiable and useful aggregate comparative information to 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))) (2) Reports on relevant health care policy 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; provider efficiencies; and the effect of medicare, medicaid, and other public health care programs on rates paid by other purchasers of 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)).

      Sec. 20. RCW 70.170.120 and 1993 c 492 s 261 are each amended to read as follows:

      (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 limitation((s)): (((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 RCW 70.170.130 and 70.170.140 shall be used solely for the health care reform provisions of chapter 492, Laws of 1993. 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.

      Sec. 21. RCW 70.170.130 and 1993 c 492 s 262 are each amended to read as follows:

      ((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 492, Laws of 1993. The following data sources shall be developed or made available:

      (1) The ((commission shall coordinate with the)) secretary of health ((to)) shall 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)) department'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 492, Laws of 1993.

      (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)) department 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.

      Sec. 22. RCW 70.170.140 and 1993 c 492 s 263 are each amended to read as follows:

      (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)) department shall establish by rule, confidentiality standards to safeguard the information from inappropriate use or release. The department shall ((assist the commission in establishing)) establish reasonable time frames for the completion of the system development and system implementation.

      Sec. 23. RCW 70.180.040 and 1994 c 103 s 3 are each amended to read as follows:

      (1) Requests for a temporary substitute health care professional may be made to the department by the ((certified health plan,)) local rural hospital, public health department or district, community health clinic, local practicing physician, physician assistant, pharmacist, or advanced registered nurse practitioner, or local city or county government.

      (2) The department may provide directly or contract for services to:

      (a) Establish a manner and form for receiving requests;

      (b) Minimize paperwork and compliance requirements for participant health care professionals and entities requesting assistance; and

      (c) Respond promptly to all requests for assistance.

      (3) The department may apply for, receive, and accept gifts and other payments, including property and services, from any governmental or other public or private entity or person, and may make arrangements as to the use of these receipts to operate the pool. The department shall make available upon request to the appropriate legislative committees information concerning the source, amount, and use of such gifts or payments.

      Sec. 24. RCW 82.04.322 and 1993 c 492 s 303 are each amended to read as follows:

      This chapter does not apply to any health maintenance organization((,)) or health care service contractor((, or certified health plan)) in respect to premiums or prepayments that are taxable under RCW 48.14.0201.

      NEW SECTION. Sec. 25. The following acts or parts of acts are each repealed:

      (1) RCW 18.130.330 and 1994 c 102 s 1 & 1993 c 492 s 412;

      (2) RCW 43.72.005 and 1993 c 492 s 401;

      (3) RCW 43.72.010 and 1994 c 4 s 1, 1993 c 494 s 1, & 1993 c 492 s 402;

      (4) RCW 43.72.020 and 1994 c 154 s 311 & 1993 c 492 s 403;

      (5) RCW 43.72.030 and 1993 c 492 s 405;

      (6) RCW 43.72.040 and 1994 c 4 s 3, 1993 c 494 s 2, & 1993 c 492 s 406;

      (7) RCW 43.72.050 and 1993 c 492 s 407;

      (8) RCW 43.72.060 and 1994 c 4 s 2 & 1993 c 492 s 404;

      (9) RCW 43.72.070 and 1993 c 492 s 409;

      (10) RCW 43.72.080 and 1993 c 492 s 425;

      (11) RCW 43.72.090 and 1993 c 492 s 427;

      (12) RCW 43.72.100 and 1993 c 492 s 428;

      (13) RCW 43.72.110 and 1993 c 492 s 429;

      (14) RCW 43.72.120 and 1993 c 492 s 430;

      (15) RCW 43.72.130 and 1993 c 492 s 449;

      (16) RCW 43.72.140 and 1993 c 492 s 450;

      (17) RCW 43.72.150 and 1993 c 492 s 451;

      (18) RCW 43.72.160 and 1993 c 492 s 452;

      (19) RCW 43.72.170 and 1993 c 492 s 453;

      (20) RCW 43.72.180 and 1993 c 492 s 454;

      (21) RCW 43.72.190 and 1993 c 492 s 455;

      (22) RCW 43.72.200 and 1993 c 492 s 456;

      (23) RCW 43.72.210 and 1993 c 492 s 463;

      (24) RCW 43.72.220 and 1993 c 494 s 3 & 1993 c 492 s 464;

      (25) RCW 43.72.225 and 1994 c 4 s 4;

      (26) RCW 43.72.230 and 1993 c 492 s 465;

      (27) RCW 43.72.240 and 1993 c 494 s 4 & 1993 c 492 s 466;

      (28) RCW 43.72.300 and 1993 c 492 s 447;

      (29) RCW 43.72.310 and 1993 c 492 s 448;

      (30) RCW 43.72.800 and 1993 c 492 s 457;

      (31) RCW 43.72.810 and 1993 c 492 s 474;

      (32) RCW 43.72.820 and 1993 c 492 s 475;

      (33) RCW 43.72.840 and 1993 c 492 s 478;

      (34) RCW 43.72.850 and 1993 c 492 s 485;

      (35) RCW 43.72.860 and 1993 c 492 s 486;

      (36) RCW 48.20.540 and 1993 c 492 s 283;

      (37) RCW 48.21.340 and 1993 c 492 s 284;

      (38) RCW 48.22.080 and 1994 c 102 s 2 & 1993 c 492 s 413;

      (39) RCW 48.43.010 and 1993 c 492 s 432;

      (40) RCW 48.43.020 and 1993 c 492 s 433;

      (41) RCW 48.43.030 and 1993 c 492 s 434;

      (42) RCW 48.43.040 and 1993 c 492 s 435;

      (43) RCW 48.43.050 and 1993 c 492 s 436;

      (44) RCW 48.43.060 and 1993 c 492 s 437;

      (45) RCW 48.43.070 and 1993 c 492 s 438;

      (46) RCW 48.43.080 and 1993 c 492 s 439;

      (47) RCW 48.43.090 and 1993 c 492 s 440;

      (48) RCW 48.43.100 and 1993 c 492 s 441;

      (49) RCW 48.43.110 and 1993 c 492 s 442;

      (50) RCW 48.43.120 and 1993 c 492 s 443;

      (51) RCW 48.43.130 and 1993 c 492 s 444;

      (52) RCW 48.43.140 and 1993 c 492 s 445;

      (53) RCW 48.43.150 and 1993 c 492 s 446;

      (54) RCW 48.43.160 and 1993 c 492 s 426; and

      (55) RCW 48.43.170 and 1993 c 492 s 431."

      Renumber the remaining section consecutively.


POINT OF ORDER


      Senator Quigley: "Thank you, Madam President. I rise to a point of order. I rise to argue that the amendment before us expands the scope and object of the bill beyond its original intent. Among other things, it repeals community rating. Again, these were provisions which permit cost-shifting from big business to small business. They can and should exist, notwithstanding a repeal of the employer mandate. It repeals maximum enrollee financial participation provisions. Again, these are provisions designed to protect the poor that can and should exist regardless of whether the employer mandate goes forward. It repeals the premium caps which were designed to control rising health care costs--things that can and should exist without the employer mandate. It eliminates the Health Services Commission, a commission that has expansive duties under the existing law beyond its limited duties in the bill, even the bill as amended. This amendment before us weakens the insurance reforms, insurance reforms that can and should go on without regard to whether or not we repeal the employer mandate. It limits portability of insurance plans, portability being a concept than can and should go on. I could go on, in fact I could go on through fifty-five repealers, Madam Chair, that are included in this act, but I don't think it is necessary. Clearly, this expands the scope and object of this bill. Thank you, Madam President."

      Further debate ensued.


      There being no objection, the President Pro Tempore deferred further consideration of Senate Bill No. 6034.


      Vice President Pro Tempore Franklin assumed the Chair.


MOTIONS


      On motion of Senator Loveland, Senator Wojahn was excused.

      On motion of Senator Wood, Senator Roach was excused.


SECOND READING


      SENATE BILL NO. 5575, by Senators Sheldon, Gaspard, Moyer, Wood, Finkbeiner and Winsley (by request of Governor Lowry)

 

Allowing persons at least sixteen years of age to make anatomical gifts if a parent or guardian signs the document of gift.


      The bill was read the second time.


MOTION


      On motion of Senator Sheldon, the rules were suspended, Senate Bill No. 5575 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5575.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5575 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 47.

      Excused: Senators Roach and Wojahn - 2.

      SENATE BILL NO. 5575, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5121, by Senators Rasmussen, Morton, Snyder, Newhouse, Loveland, A. Anderson, Hochstatter, Haugen and Deccio

 

Reviewing agricultural safety standards.


MOTIONS


      On motion of Senator Rasmussen, Substitute Senate Bill No. 5121 was substituted for Senate Bill No. 5121 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Ann Anderson, the following amendments by Senators Ann Anderson, Morton, Rasmussen and Loveland were considered simultaneously and were adopted:

      On page 2, line 1, strike "December 15, 1995" and insert "January 15, 1996"

      On page 2, line 15, strike "December 15, 1995" and insert "January 15, 1996"


MOTION


      On motion of Senator Rasmussen, the rules were suspended, Engrossed Substitute Senate Bill No. 5121 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 5121.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 5121 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 5121, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      President Pro Tempore Wojahn assumed the Chair.


      There being no objection, the Senate resumed consideration of Senate Bill No. 6034 and the pending amendments by Senator McDonald on page 1, lines 7 and 8, and the pending striking amendment by Senator Deccio, deferred earlier today.


RULINGS BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "In ruling upon the points of order raised by Senator Quigley, the President finds that Senate Bill No. 6034, as amended, is a measure which repeals the requirement that residents of Washington purchase a uniform benefits package from a certified health plan by a date certain and repeals mandatory employer participation in offering health care coverage, and repeals the requirement to seek federal waivers for these activities.

      "The amendments by Senator McDonald on page 1, lines 7 and 8, among other changes to the health care laws, removes the provisions providing for community rated maximum premiums for the uniform benefits package.

      "The striking amendment by Senator Deccio abolishes the Washington Health Services Commission and makes various other changes to the health care laws.

      "The President, therefore, finds that the proposed amendments by Senator McDonald on page 1, lines 7 and 8, do change the scope and object of the bill and the point of order is well taken.

      "The President, therefore, finds that the proposed striking amendment by Senator Deccio does change the scope and object of the bill and the point of order is well taken."


      The amendments by Senator McDonald on page 1, lines 7 and 8, to Senate Bill No. 6034 were ruled out of order.

      The striking amendment by Senator Deccio to Senate Bill No. 6034 was ruled out of order.


MOTIONS


      On motion of Senator Quigley, the following title amendment was adopted:

      On page 1, line 2 of the title, after "employers;" insert "amending RCW 43.72.810;"

      On motion of Senator Quigley, the rules were suspended, Engrossed Senate Bill No. 6034 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.


POINT OF ORDER


      Senator Heavey: "A point of order. Madam President, I think that the gentleman from Spokane is impugning the sponsors of this bill and I would ask Madam President to rule on that. Thank you."


REPLY BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "Senator West, it would be good if you would keep your remarks a little bit lower key."

      Further debate ensued.


POINT OF ORDER


      Senator McCaslin: "A point of order, Madam President. Did you say we were under a two minute rule?"


REPLY BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "No, we are not."

      Senator McCaslin: "Did you say something to that effect?"

      President Pro Tempore Wojahn: "I said it was unfortunate that we were not."

      Senator McCaslin: "I'm sorry I didn't hear you."

      President Pro Tempore Wojahn: "I said we were not."

      Senator McCaslin: "You are going to have to speak up for us older folks. We can't hear you up front here. Thank you."

      Further debate ensued.


POINT OF INQUIRY


      Senator McDonald: "Senator Gaspard, if we pass this piece of legislation, will there be, in this session, a bill that will come on the floor that will expand the basic health care plan, protect the insurance reforms that we have passed, expand the consumer choices for doctors and health care plans beyond what is in the 1993 act and repeal a number of sections, a considerable amount of the 1993 Health Services Act?"

      Senator Gaspard: "Thank you, Senator McDonald. The purpose of putting this measure before us was really to realize that we have a lot more in common about how to approach health care than we have in differences at this point, so I am a little bit surprised about some of the tone of the debate, because we are trying to take the politics out of the employer mandate. Yes, Senator McDonald, I responded to a question by Senator Newhouse last week that it is our intention to bring forward to this body, the bill that was referred out of committee, Senator Quigley's committee, so that we can have a fuller debate on improvements to health care. As you have outlined it, it sounds as if we do have a good bipartisan support, because those are all the measures that we are trying to incorporate as we improve health care in the state of Washington."

      Further debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Senate Bill No. 6034.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Senate Bill No. 6034 and the bill passed the Senate by the following vote: Yeas, 37; Nays, 12; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, C., Bauer, Deccio, Drew, Fairley, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Kohl, Long, Loveland, McAuliffe, McCaslin, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Sellar, Sheldon, Smith, Snyder, Spanel, Sutherland, Swecker, Winsley, Wojahn and Wood - 37.

      Voting nay: Senators Anderson, A., Cantu, Finkbeiner, Hochstatter, Johnson, McDonald, Morton, Moyer, Prince, Schow, Strannigan and West - 12.

      ENGROSSED SENATE BILL NO. 6034, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      Vice President Pro Tempore Franklin assumed the Chair.


SECOND READING


      SENATE JOINT MEMORIAL NO. 8019, by Senators Oke, Owen, Snyder, A. Anderson, Haugen, Bauer, Gaspard, McDonald, Swecker, Roach, Strannigan, Palmer, Hochstatter, Morton, West, Rasmussen and Spanel

 

Requesting federal assistance to facilitate the implementation of judicial decisions concerning the harvest of fish and shellfish.


MOTIONS


      On motion of Senator Drew, Substitute Senate Joint Memorial No. 8019 was substituted for Senate Joint Memorial No. 8019 and the substitute joint memorial was placed on second reading and read the second time.

      On motion of Senator Drew, the rules were suspended, Substitute Senate Joint Memorial No. 8019 was advanced to third reading, the second reading considered the third and the substitute joint memorial was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Joint Memorial No. 8019.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Joint Memorial No. 8019 and the joint memorial passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 1; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 48.

      Absent: Senator Wojahn - 1.

      SUBSTITUTE SENATE JOINT MEMORIAL NO. 8019, having received the constitutional majority, was declared passed.


SECOND READING


      SENATE BILL NO. 5799, by Senators McDonald, Wojahn, Cantu and West

 

Modifying adult family homes licensure.


MOTIONS


      On motion of Senator Hargrove, Substitute Senate Bill No. 5799 was substituted for Senate Bill No. 5799 and the substitute bill was placed on second reading and read the second time.

      Debate ensued.

      On motion of Senator Hargrove, the rules were suspended, Substitute Senate Bill No. 5799 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5799.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5799 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 1; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Voting nay: Senator Cantu - 1.

      SUBSTITUTE SENATE BILL NO. 5799, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5551, by Senators Sellar and Snyder

 

Authorizing special taxation of lodging.


MOTIONS


      On motion of Senator Rinehart, Substitute Senate Bill No. 5551 was substituted for Senate Bill No. 5551 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Sellar, the rules were suspended, Substitute Senate Bill No. 5551 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5551.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5551 and the bill passed the Senate by the following vote: Yeas, 49; Nays, 0; Absent, 0; Excused, 0.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 49.

      SUBSTITUTE SENATE BILL NO. 5551, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Spanel, Senator Loveland was excused.


SECOND READING


      SENATE BILL NO. 5463, by Senators Newhouse, Prentice and Franklin

 

Requiring alcohol servers to have alcohol servers permits.


MOTIONS


      On motion of Senator Pelz, Substitute Senate Bill No. 5463 was substituted for Senate Bill No. 5463 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Pelz, the rules were suspended, Substitute Senate Bill No. 5463 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5463.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5463 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 1; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, McAuliffe, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Voting nay: Senator McCaslin - 1.

      Excused: Senator Loveland - 1.

      SUBSTITUTE SENATE BILL NO. 5463, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      President Pro Tempore Wojahn assumed the Chair.


SECOND READING



      SENATE BILL NO. 5281, by Senators Heavey, Pelz, Deccio, Kohl, West, Drew and Rasmussen

 

Promoting horse racing.

MOTIONS


      On motion of Senator Heavey, Substitute Senate Bill No. 5281 was substituted for Senate Bill No. 5281 and the substitute bill was placed on second reading and read the second time.

      Senator Prince moved that the following amendment by Senators Prince, McCaslin, Moyer, Hochstatter and Morton be adopted:

      On page 1, after line 9, insert the following:

      "Sec. 2. RCW 67.16.010 and 1991 c 270 s 1 are each amended to read as follows:

      Unless the context otherwise requires, words and phrases as used herein shall mean:

      "Commission" shall mean the Washington horse racing commission, hereinafter created.

      "Operating race tracks" shall mean racing associations conducting parimutuel horse racing at the same time of day, such as afternoon against afternoon or nighttime against nighttime, as the racing association conducting the horse racing that is the subject of the in-state and/or out-of-state satellite wagering.

      "Parimutuel machine" shall mean and include both machines at the track and machines at the satellite locations, that record parimutuel bets and compute the payoff.

      "Person" shall mean and include individuals, firms, corporations and associations.

      "Race meet" shall mean and include any exhibition of thoroughbred, quarter horse, paint horse, appaloosa horse racing, arabian horse racing, or standard bred harness horse racing, where the parimutuel system is used.

      "Racing day" shall mean a full program of races at a specified operating race track on a specified day.

      Singular shall include the plural, and the plural shall include the singular; and words importing one gender shall be regarded as including all other genders."

      Renumber the remaining sections consecutively and correct internal references accordingly.


POINT OF ORDER


      Senator Heavey: "Thank you, Madam President. Article 2, Section 19, of the State Constitution says, 'No bill shall embrace more than one subject, and that shall be expressed in the title.' Article 2, Section 38, says 'No amendment to any bill shall be allowed which shall change the scope and object of the bill.' I would ask for a ruling on the scope and object of the amendment. The amendment amends a different section; it deals with a different matter of duel car racing and the underlying bill merely, essentially, removes a sunset date."


MOTION


      On motion of Senator Spanel, further consideration of Substitute Senate Bill No. 5281 was deferred.


MOTION


      On motion of Senator Spanel, Senator Franklin was excused.


SECOND READING

 

SENATE BILL NO. 5355, by Senators Drew, Morton and Rasmussen

 

Providing for payment of claims for damages caused by deer or elk.


      The bill was read the second time.


MOTION


      On motion of Senator Drew, the rules were suspended, Senate Bill No. 5355 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5355.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5355 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Moyer, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Absent: Senator Bauer - 1.

      Excused: Senator Franklin - 1.

      SENATE BILL NO. 5355, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5351, by Senators Wojahn, Winsley, Haugen, McCaslin and Drew

 

Allowing cities to require family day-care provider's home facilities loading areas to be certified by the office of child care policy licensor.


      The bill was read the second time.

MOTION


      On motion of Senator Haugen, the rules were suspended, Senate Bill No. 5351 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Ann Anderson, Senator Moyer was excused.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5351.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5351 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Moyer - 1.

      SENATE BILL NO. 5351, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5343, by Senators Fairley, Swecker, Pelz, Fraser, Prentice, Kohl, Winsley and Franklin

 

Promoting the recycled content of products and buildings.


MOTIONS



      On motion of Senator Fairley, Substitute Senate Bill No. 5343 was substituted for Senate Bill No. 5343 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Fairley, the rules were suspended, Substitute Senate Bill No. 5343 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5343.

ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5343 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Moyer - 1.

      SUBSTITUTE SENATE BILL NO. 5343, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5335, by Senators Smith, Long and Johnson

 

Updating uniform commercial code provisions on investment securities.


MOTIONS


      On motion of Senator Prentice, Substitute Senate Bill No. 5335 was substituted for Senate Bill No. 5335 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Prentice, the rules were suspended, Substitute Senate Bill No. 5335 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5335.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5335 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Moyer - 1.

      SUBSTITUTE SENATE BILL NO. 5335, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5333, by Senators Smith, Long and Johnson

 

Revising regulations for the investment of trust funds.


MOTIONS


      On motion of Senator Smith, Substitute Senate Bill No. 5333 was substituted for Senate Bill No. 5333 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Smith, the rules were suspended, Substitute Senate Bill No. 5333 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5333.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5333 and the bill passed the Senate by the following vote: Yeas, 48; Nays, 0; Absent, 0; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 48.

      Excused: Senator Moyer - 1.

      SUBSTITUTE SENATE BILL NO. 5333, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      Vice President Pro Tempore Franklin assumed the Chair.


SECOND READING


      SENATE BILL NO. 5332, by Senators Prentice, Hale, Fraser and Winsley (by request of Department of Financial Institutions)

 

Regulating securities.


      The bill was read the second time.


MOTION


      On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5332 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.


MOTION


      On motion of Senator Loveland, Senator Wojahn was excused.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5332.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5332 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 47.

      Excused: Senators Moyer and Wojahn - 2.

      SENATE BILL NO. 5332, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5330, by Senators Smith and Franklin (by request of Washington State Patrol)

 

Regulating background checks.


      The bill was read the second time.


MOTION


      On motion of Senator Smith, the rules were suspended, Senate Bill No. 5330 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5330.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5330 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Prince, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley and Wood - 47.

      Excused: Senators Moyer and Wojahn - 2.

      SENATE BILL NO. 5330, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 6047, by Senators Gaspard, McCaslin, Wojahn, Prentice, C. Anderson, Rinehart, Heavey, Spanel, Smith, Sheldon, Drew, Fraser, Loveland, Fairley, Sutherland, McAuliffe, Snyder, Quigley, Hargrove, Franklin, Kohl, Bauer, Rasmussen, Haugen, Owen, Pelz and Winsley

 

Providing sales and use tax exemptions for medical care products.


MOTIONS


      On motion of Senator Rinehart, Substitute Senate Bill No. 6047 was substituted for Senate Bill No. 6047 and the substitute bill was placed on second reading and read the second time.

      Senator West moved that the following amendments be considered simultaneously and be adopted:

      On page 2, beginning on line 20, after "appliances," strike "and convalescent aids" and insert "convalescent aids, tissues, toilet paper, toothpaste, and toothbrushes"

      On page 4, line 4, after "appliances," strike "and convalescent aids" and insert "convalescent aids, tissues, toilet paper, toothpaste, and toothbrushes"


POINT OF ORDER


      Senator Rinehart: "I rise to raise a question that the amendments expand the scope and object of the bill. The bill before us is specifically directed to remove the sales tax from medical care products bought by consumers. The amendments before us would expand the bill to include hygienic products which do not come under the definition of medical care products and, therefore, would expand the scope and object of the bill."

      Further debate ensued.


MOTION


      On motion of Senator Gaspard, further consideration of the amendments by Senator West was deferred and the Senate will consider the next amendments by Senator Wood.


MOTION


      Senator Ann Anderson moved that the following amendments by Senator Wood be considered simultaneously and be adopted:

      On page 2, after line 21, insert the following:

      "(4) The tax levied by RCW 82.08.020 shall not apply to sales of products, substances, or devices used for feminine hygiene including, but not limited to, sanitary napkins.

      (5) The tax levied by RCW 82.08.020 shall not apply to sales of diapers. As used in this section, "diaper" includes adult diapers, children's diapers, disposable diapers, diapers obtained through a commercial diaper service, and reusable diapers."

      On page 4, after line 4, insert the following:

      (4) The provisions of this chapter shall not apply in respect to the use of products, substances, or devices for feminine hygiene including, but not limited to, sanitary napkins.

      (5) The provisions of this chapter shall not apply in respect to the use of diapers. As used in this section, "diaper" includes adult diapers, children's diapers, disposable diapers, diapers obtained through a commercial diaper service, and reusable diapers."


POINT OF ORDER


      Senator Rinehart: "I raise the question that the amendments expand the scope and object of the bill. Again, the bill is directed, with a very specific intent, to remove the sales tax from consumer purchased medical care products. The list incorporated in these amendments, once again, are directed toward hygiene and not toward medical care."

      Further debate ensued.


MOTION


      On motion of Senator Gaspard, further consideration of the amendments by Senator Wood was deferred and the Senate will consider the next amendments by Senators Ann Anderson and Winsley.


MOTION


      Senator Ann Anderson moved that the following amendments by Senators Ann Anderson and Winsley be considered simultaneously and be adopted:

      On page 2, line 28, after "18.35 RCW;" insert "medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW;"

      On page 4, line 11, after "18.35 RCW;" insert "medicines of mineral, animal, and botanical origin prescribed, administered, dispensed, or used in the treatment of an individual by a person licensed under chapter 18.36A RCW;"

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the adoption of the amendments by Senators Ann Anderson and Winsley on page 2, line 28, and page 4, line 11, to Substitute Senate Bill No. 6047.

      The motion by Senator Ann Anderson carried and the amendments were adopted.


MOTION


      Senator Wojahn moved that the following amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson be adopted:

      On page 4, after line 27, insert the following:

      "Sec. 5. RCW 82.08.0293 and 1988 c 103 s 1 are each amended to read as follows:

      (1) The tax levied by RCW 82.08.020 shall not apply to sales of food products for human consumption.

      "Food products" include cereals and cereal products, oleomargarine, meat and meat products including livestock sold for personal consumption, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products, coffee and coffee substitutes, tea, cocoa and cocoa products.

      "Food products" include milk and milk products, milk shakes, malted milks, and any other similar type beverages which are composed at least in part of milk or a milk product and which require the use of milk or a milk product in their preparation.

      "Food products" include all fruit juices, vegetable juices, bottled water, and other beverages except ((bottled water,)) spirituous, malt or vinous liquors or carbonated beverages, whether liquid or frozen. Bottled water means bottled water, as defined in RCW 69.07.170, sold in containers of at least one gallon, and includes artesian water, distilled water, drinking water, mineral water, natural water, and spring water.

      "Food products" do not include medicines and preparations in liquid, powdered, granular, tablet, capsule, lozenge, and pill form sold as dietary supplements or adjuncts.

      (2) The exemption of "food products" provided for in subsection (1) of this section shall not apply: (a) When the food products are ordinarily sold for immediate consumption on or near a location at which parking facilities are provided primarily for the use of patrons in consuming the products purchased at the location, even though such products are sold on a "takeout" or "to go" order and are actually packaged or wrapped and taken from the premises of the retailer, or (b) when the food products are sold for consumption within a place, the entrance to which is subject to an admission charge, except for national and state parks and monuments, or (c) to a food product, when sold by the retail vendor, which by law must be handled on the vendor's premises by a person with a food and beverage service worker's permit under RCW 69.06.010, including but not be limited to sandwiches prepared or chicken cooked on the premises, deli trays, home-delivered pizzas or meals, and salad bars but excluding:

      (i) Raw meat prepared by persons who slaughter animals, including fish and fowl, or dress or wrap slaughtered raw meat such as fish mongers, butchers, or meat wrappers;

      (ii) Meat and cheese sliced and/or wrapped, in any quantity determined by the buyer, sold by vendors such as meat markets, delicatessens, and grocery stores;

      (iii) Bakeries which only sell baked goods;

      (iv) Combination bakery businesses, as prescribed by rule of the department, to the extent that sales of baked goods are separately accounted for and the baked goods claimed for exemption are not sold as part of meals or with beverages in unsealed containers; or

      (v) Bulk food products sold from bins or barrels, including but not limited to flour, fruits, vegetables, sugar, salt, candy, chips, and cocoa.

      (3) Notwithstanding anything in this section to the contrary, the exemption of "food products" provided in this section shall apply to food products which are furnished, prepared, or served as meals:

      (a) Under a state administered nutrition program for the aged as provided for in the Older Americans Act (P.L. 95-478 Title III) and RCW 74.38.040(6); or

      (b) Which are provided to senior citizens, disabled persons, or low-income persons by a not-for-profit organization organized under chapter 24.03 or 24.12 RCW.

      (4) Subsection (1) of this section notwithstanding, the retail sale of food products is subject to sales tax under RCW 82.08.020 if the food products are sold through a vending machine, and in this case the selling price for purposes of RCW 82.08.020 is fifty-seven percent of the gross receipts.

      This subsection does not apply to hot prepared food products, other than food products which are heated after they have been dispensed from the vending machine.

      For tax collected under this subsection, the requirements that the tax be collected from the buyer and that the amount of tax be stated as a separate item are waived.

      Sec. 6. RCW 82.12.0293 and 1988 c 103 s 2 are each amended to read as follows:

      (1) The provisions of this chapter shall not apply in respect to the use of food products for human consumption.

      "Food products" include cereals and cereal products, oleomargarine, meat and meat products including livestock sold for personal consumption, fish and fish products, eggs and egg products, vegetables and vegetable products, fruit and fruit products, spices and salt, sugar and sugar products, coffee and coffee substitutes, tea, cocoa and cocoa products.

      "Food products" include milk and milk products, milk shakes, malted milks, and any other similar type beverages which are composed at least in part of milk or a milk product and which require the use of milk or a milk product in their preparation.

      "Food products" include all fruit juices, vegetable juices, bottled water, and other beverages except ((bottled water,)) spirituous, malt or vinous liquors or carbonated beverages, whether liquid or frozen. Bottled water means bottled water, as defined in RCW 69.07.170, sold in containers of at least one gallon, and includes artesian water, distilled water, drinking water, mineral water, natural water, and spring water.

      "Food products" do not include medicines and preparations in liquid, powdered, granular, tablet, capsule, lozenge, and pill form sold as dietary supplements or adjuncts.

      (2) The exemption of "food products" provided for in subsection (1) of this section shall not apply: (a) When the food products are ordinarily sold for immediate consumption on or near a location at which parking facilities are provided primarily for the use of patrons in consuming the products purchased at the location, even though such products are sold on a "takeout" or "to go" order and are actually packaged or wrapped and taken from the premises of the retailer, or (b) when the food products are sold for consumption within a place, the entrance to which is subject to an admission charge, except for national and state parks and monuments, or (c) to a food product, when sold by the retail vendor, which by law must be handled on the vendor's premises by a person with a food and beverage service worker's permit under RCW 69.06.010, including but not be limited to sandwiches prepared or chicken cooked on the premises, deli trays, home-delivered pizzas or meals, and salad bars but excluding:

      (i) Raw meat prepared by persons who slaughter animals, including fish and fowl, or dress or wrap slaughtered raw meat such as fish mongers, butchers, or meat wrappers;

      (ii) Meat and cheese sliced and/or wrapped, in any quantity determined by the buyer, sold by vendors such as meat markets, delicatessens, and grocery stores;

      (iii) Bakeries which only sell baked goods;

      (iv) Combination bakery businesses, as prescribed by rule of the department, to the extent that sales of baked goods are separately accounted for and the baked goods claimed for exemption are not sold as part of meals or with beverages in unsealed containers; or

      (v) Bulk food products sold from bins or barrels, including but not limited to flour, fruits, vegetables, sugar, salt, candy, chips, and cocoa.

      (3) Notwithstanding anything in this section to the contrary, the exemption of "food products" provided in this section shall apply to food products which are furnished, prepared, or served as meals:

      (a) Under a state administered nutrition program for the aged as provided for in the Older Americans Act (P.L. 95-478 Title III) and RCW 74.38.040(6); or

      (b) Which are provided to senior citizens, disabled persons, or low-income persons by a not-for-profit organization organized under chapter 24.03 or 24.12 RCW."

      Renumber the remaining section.


POINT OF ORDER


      Senator Rinehart: "Rising with some trepidation to suggest that this amendment also expands the scope and object of the bill, because water is designed as a food, not as a medical product."

      Further debate ensued.


MOTION


      On motion of Senator Gaspard, further consideration of the amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson was deferred.


MOTION


      Senator Deccio moved that the following amendment by Senators Deccio, Long, Palmer, Hale, Swecker, Finkbeiner, Wood, Johnson, Strannigan and Schow be adopted:

      On page 4, after line 27, insert the following:

      "Sec. 5. RCW 82.04.255 and 1993 sp.s. c 25 s 202 are each amended to read as follows:

      Upon every person engaging within the state as a real estate broker; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of ((2.0)) 1.5 percent.

      The measure of the tax on real estate commissions earned by the real estate broker shall be the gross commission earned by the particular real estate brokerage office including that portion of the commission paid to salesmen or associate brokers in the same office on a particular transaction: PROVIDED, HOWEVER, That where a real estate commission is divided between an originating brokerage office and a cooperating brokerage office on a particular transaction, each brokerage office shall pay the tax only upon their respective shares of said commission: AND PROVIDED FURTHER, That where the brokerage office has paid the tax as provided herein, salesmen or associate brokers within the same brokerage office shall not be required to pay a similar tax upon the same transaction.

      Sec. 6. RCW 82.04.290 and 1993 sp.s. c 25 s 203 are each amended to read as follows:

      (((1) Upon every person engaging within this state in the business of providing selected business services other than or in addition to those enumerated in RCW 82.04.250 or 82.04.270; as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of 2.5 percent.

      (2) Upon every person engaging within this state in banking, loan, security, investment management, investment advisory, or other financial businesses; as to such persons, the amount of the tax with respect to such business shall be equal to the gross income of the business, multiplied by the rate of 1.70 percent.

      (3))) Upon every person engaging within this state in any business activity other than or in addition to those enumerated in RCW 82.04.230, 82.04.240, 82.04.250, 82.04.255, 82.04.260, 82.04.270, and 82.04.280((, and subsections (1) and (2) of this section)); as to such persons the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of ((2.0)) 1.5 percent. This section includes, among others, and without limiting the scope hereof (whether or not title to materials used in the performance of such business passes to another by accession, confusion or other than by outright sale), persons engaged in the business of rendering any type of service which does not constitute a "sale at retail" or a "sale at wholesale." The value of advertising, demonstration, and promotional supplies and materials furnished to an agent by his principal or supplier to be used for informational, educational and promotional purposes shall not be considered a part of the agent's remuneration or commission and shall not be subject to taxation under this section.

      NEW SECTION. Sec. 7. The following acts or parts of acts are each repealed:

      (1) RCW 82.04.055 and 1993 sp.s. c 25 s 201; and

      (2) RCW 82.04.2201 and 1994 sp.s. c 10 s 1 & 1993 sp.s. c 25 s 204."

      Renumber the remaining section consecutively and correct any internal references accordingly.


POINT OF ORDER


      Senator Rinehart: "I rise to question the scope and object of the amendment. It is directed toward the Business and Occupation Tax. The tax before us is the sales tax on medical care products purchased by consumers. This is clearly expanding by four hundred and fifty million dollars the scope of the bill."


MOTION TO WITHDRAW AMENDMENT


      On motion of Senator Deccio, and there being no objection, the amendment by Senators Deccio, Long, Palmer, Hale, Swecker, Finkbeiner, Wood, Johnson, Strannigan and Schow on page 4, after line 27, to Substitute Senate Bill No. 6047 was withdrawn.


MOTION


      On motion of Senator Gaspard, further consideration of Substitute Senate Bill No. 6047 was deferred.


      President Pro Tempore Wojahn assumed the Chair.


      There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 5281 and the pending amendment by Senators Prince, McCaslin, Moyer, Johnson and Morton on page 1, after line 9, deferred earlier today.


RULING BY THE PRESIDENT PRO TEMPORE


      President Pro Tempore Wojahn: "In ruling upon the point of order raised by Senator Heavey, the President finds that Substitute Senate Bill No. 5281 is a measure which extends the retention and dedication of specified amounts from the daily gross receipts of parimutuel machines for certain purposes and directs the procedure for subsequent expenditure of these funds.

      "The amendment by Senators Prince, McCaslin, Moyer, Johnson and Morton on page 1, after line 9, would create new definitions establishing limits on the meaning of operating race tracks and racing days.

      "The President, therefore, finds that the proposed amendment by Senators Prince, McCaslin, Moyer, Johnson and Morton on page 1, after line 9, does change the scope and object of the bill and the point of order is well taken."


      The amendment by Senators Prince, McCaslin, Moyer, Johnson and Morton on page 1, after line 9, to Substitute Senate Bill No. 5281 was ruled out of order.


MOTION


      On motion of Senator Heavey, the rules were suspended, Substitute Senate Bill No. 5281 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5281.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5281 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 1; Excused, 1.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Absent: Senator Prince - 1.

      Excused: Senator Moyer - 1.

      SUBSTITUTE SENATE BILL NO. 5281, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Ann Anderson, Senator Prince was excused.


SECOND READING


      SENATE BILL NO. 5130, by Senators Fraser, Oke, Owen, Heavey, Prince, Morton, Rasmussen, Sellar, Franklin, Spanel, Snyder, Fairley, Kohl and Drew

 

Freeing the base for transfers of marine and nonhighway fuel taxes.


      The bill was read the second time.


MOTION


      On motion of Senator Owen, the rules were suspended, Senate Bill No. 5130 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5130.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5130 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Voting nay: Senator Loveland - 1.

      Excused: Senators Moyer and Prince - 2.

      SENATE BILL NO. 5130, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Spanel, Senate Bill No. 5365, Senate Bill No. 5524, Senate Bill No. 5525, Senate Bill No. 5698, Senate Bill No. 5837 and Senate Bill No. 5848, which were on the consent calendar, were referred to the regular calendar.


SECOND READING


      SENATE BILL NO. 5326, by Senators Long, Fairley, Roach, Hargrove, West, Oke and Winsley

 

Revising provision for registration of sex offenders.


MOTIONS


      On motion of Senator Hargrove, Substitute Senate Bill No. 5326 was substituted for Senate Bill No. 5326 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Hargrove, the rules were suspended, Substitute Senate Bill No. 5326 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5326.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5326 and the bill passed the Senate by the following vote: Yeas, 47; Nays, 0; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 47.

      Excused: Senators Moyer and Prince - 2.

      SUBSTITUTE SENATE BILL NO. 5326, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5433, by Senators Prentice, Hale and Fraser (by request of Insurance Commissioner Senn)

 

Regulating investments by insurers.


      The bill was read the second time.


MOTION


      On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5433 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5433.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5433 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Absent: Senator Franklin - 1.

      Excused: Senators Moyer and Prince - 2.

      SENATE BILL NO. 5433, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Loveland, Senator Franklin was excused.


SECOND READING


      SENATE BILL NO. 5432, by Senators Prentice and Hale (by request of Insurance Commissioner Senn)

 

Regulating unearned premium, loss, and loss expense reserves.


      The bill was read the second time.


MOTION


      On motion of Senator Prentice, the rules were suspended, Senate Bill No. 5432 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5432.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5432 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Franklin, Moyer and Prince - 3.

      SENATE BILL NO. 5432, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5431, by Senators Prentice and Hale (by request of Insurance Commissioner Senn)

 

Repealing rural health care statutes.


MOTIONS


      On motion of Senator Quigley, Substitute Senate Bill No. 5431 was substituted for Senate Bill No. 5431 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Quigley, the rules were suspended, Substitute Senate Bill No. 5431 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      Debate ensued.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5431.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5431 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Franklin, Moyer and Prince - 3.

      SUBSTITUTE SENATE BILL NO. 5431, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.



SECOND READING


      SENATE BILL NO. 5419, by Senators Fairley and Quigley (by request of Department of Social and Health Services)

 

Modifying federal financial participation related to health insurer's and children's health care.


MOTIONS


      On motion of Senator Fairley, Substitute Senate Bill No. 5419 was substituted for Senate Bill No. 5419 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Fairley, the rules were suspended, Substitute Senate Bill No. 5419 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5419.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5419 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Franklin, Moyer and Prince - 3.

      SUBSTITUTE SENATE BILL NO. 5419, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5308, by Senators Fairley, Moyer, Franklin and Deccio (by request of Department of Health)

 

Changing certain health professional examination procedures.


MOTIONS


      On motion of Senator Fairley, Substitute Senate Bill No. 5308 was substituted for Senate Bill No. 5308 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator Fairley, the rules were suspended, Substitute Senate Bill No. 5308 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5308.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5308 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Franklin, Moyer and Prince - 3.

      SUBSTITUTE SENATE BILL NO. 5308, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5292, by Senators Sutherland and Finkbeiner

 

Revising the level of civil penalties for violation of gas pipeline safety regulations.


      The bill was read the second time.


MOTION


      On motion of Senator Sutherland, the rules were suspended, Senate Bill No. 5292 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5292.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5292 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 1; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Absent: Senator Fairley - 1.

      Excused: Senators Moyer and Prince - 2.

      SENATE BILL NO. 5292, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      On motion of Senator Cal Anderson, Senator Fairley was excused.


SECOND READING


      SENATE BILL NO. 5274, by Senators Haugen, McCaslin, Winsley, Wood and Palmer

 

Clarifying the funding formula for the municipal research council.


      The bill was read the second time.


MOTION


      On motion of Senator Haugen, the rules were suspended, Senate Bill No. 5274 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5274.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5274 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Fairley, Moyer and Prince - 3.

      SENATE BILL NO. 5274, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


SECOND READING


      SENATE BILL NO. 5209, by Senators McCaslin, Haugen, Swecker, Drew, Schow, Heavey and Winsley

 

Authorizing the extension of water or sewer service within an approved coordinated water system plan service area.


MOTIONS


      On motion of Senator Haugen, Substitute Senate Bill No. 5209 was substituted for Senate Bill No. 5209 and the substitute bill was placed on second reading and read the second time.

      On motion of Senator McCaslin, the rules were suspended, Substitute Senate Bill No. 5209 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Substitute Senate Bill No. 5209.


ROLL CALL


      The Secretary called the roll on the final passage of Substitute Senate Bill No. 5209 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Fairley, Moyer and Prince - 3.

       SUBSTITUTE SENATE BILL NO. 5209 having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.



SECOND READING


      SENATE BILL NO. 5273, by Senators Hale, Haugen, Winsley and Franklin (by request of Secretary of State Munro)

 

Avoiding conflicts of interest on election canvassing boards.


      The bill was read the second time.


MOTION


      On motion of Senator Hale, the rules were suspended, Senate Bill No. 5273 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Senate Bill No. 5273.


ROLL CALL


      The Secretary called the roll on the final passage of Senate Bill No. 5273 and the bill passed the Senate by the following vote: Yeas, 46; Nays, 0; Absent, 0; Excused, 3.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Sutherland, Swecker, West, Winsley, Wojahn and Wood - 46.

      Excused: Senators Fairley, Moyer and Prince - 3.

      SENATE BILL NO. 5273, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


      Vice President Pro Tempore Franklin assumed the Chair.


      There being no objection, the Senate resumed consideration of Substitute Senate Bill No. 6047 and the pending amendments by Senator West on page 2, beginning on line 20, and page 4, line 4; the pending amendments by Senator Wood on page 2, after line 21, and page 4, after line 4; and the pending amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson on page 4, after line 27, deferred earlier today.


RULINGS BY THE VICE PRESIDENT PRO TEMPORE


      Vice President Pro Tempore Franklin: "In ruling upon the points of order raised by Senator Rinehart, the President finds that Substitute Senate Bill No. 6047 is a measure which creates sales and use tax exemptions for specified medial products and equipment, health-aid appliances and convalescent aids, and the repair of certain medical items.

      "The amendments by Senator West on page 2, beginning on line 20, and page 4, line 4, would add tissues, toilet paper, toothpaste, and toothbrushes to the list of exempted items.

      "The amendments by Senator Wood on page 2, after line 21, and page 4, after line 4, would, among other things, add diapers and diaper services to the list of exempted items.

      "The amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson on page 4, after line 27, would add bottled water to the list of food products exempted from sales tax.

      "The President, therefore, finds that the proposed amendments by Senator West on page 2, line 20, and page 4, line 4, do change the scope and object of the bill and the point of order is well taken.

      "The President, therefore, finds that the proposed amendments on by Senator Wood on page 2, after line 21, and page 4, after line 4, do change the scope and object of the bill and the point of order is well taken.

      "The President, therefore, finds that the amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson on page 4, after line 27, does change the scope and object of the bill and the point is order is well taken."


      The amendments by Senator West on page 2, line 20. and page 4, line 4, to Senate Bill No. 6034 were ruled out of order.

      The amendments by Senator Wood on page 2, after line 21, and page 4, after line 4, to Senate Bill No. 6034 were ruled out of order.

      The amendment by Senators Wojahn, McDonald, Hale, Wood, Prentice, Winsley, West and Cal Anderson on page 4, after line 27, to Senate Bill No. 6034 was ruled out of order.


MOTION


      Senator West moved that the following amendments be considered simultaneously and be adopted:

      On page 2, after line 21, insert the following:

      "(4) The tax levied by RCW 82.08.020 shall not apply to sales of adult incontinent pads and pants."

      On page 4, after line 4, insert the following:

      "(4) The provisions of this chapter shall not apply with respect to the use of adult incontinent pads and pants."

      Debate ensued.

      The Vice President Pro Tempore declared the question before the Senate to be the adoption of the amendments by Senator West on page 2, after line 21, and page 4, after line 4, to Substitute Senate Bill No. 6047.

      The motion by Senator West carried and the amendments were adopted.


MOTION


      On motion of Senator Rinehart, the rules were suspended, Engrossed Substitute Senate Bill No. 6047 was advanced to third reading, the second reading considered the third and the bill was placed on final passage.

      The Vice President Pro Tempore declared the question before the Senate to be the roll call on the final passage of Engrossed Substitute Senate Bill No. 6047.


ROLL CALL


      The Secretary called the roll on the final passage of Engrossed Substitute Senate Bill No. 6047 the bill passed the Senate by the following vote: Yeas, 46; Nays, 1; Absent, 0; Excused, 2.

      Voting yea: Senators Anderson, A., Anderson, C., Bauer, Cantu, Deccio, Drew, Fairley, Finkbeiner, Franklin, Fraser, Gaspard, Hale, Hargrove, Haugen, Heavey, Hochstatter, Johnson, Kohl, Long, Loveland, McAuliffe, McCaslin, McDonald, Morton, Newhouse, Oke, Owen, Palmer, Pelz, Prentice, Quigley, Rasmussen, Rinehart, Roach, Schow, Sellar, Sheldon, Smith, Snyder, Spanel, Strannigan, Swecker, West, Winsley, Wojahn and Wood - 46.

      Voting nay: Senator Sutherland - 1.

      Excused: Senators Moyer and Prince - 2.

      ENGROSSED SUBSTITUTE SENATE BILL NO. 6047, having received the constitutional majority, was declared passed. There being no objection, the title of the bill will stand as the title of the act.


MOTION


      At 8:12 p.m., on motion of Senator Spanel, the Senate adjourned until 9:00 a.m., Wednesday, March 8, 1995.


JOEL PRITCHARD, President of the Senate


MARTY BROWN, Secretary of the Senate