HJ 2003 026

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FIFTY EIGHTH LEGISLATURE - REGULAR SESSION

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TWENTY SIXTH DAY

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House Chamber, Olympia, Friday, February 7, 2003

The House was called to order at 10:00 a.m. by the Speaker. The Clerk called the roll and a quorum was present.

The flags were escorted to the rostrum by a Sergeant at Arms Color Guard, Pages Sarah Godlewski and Peter Lestelle. Prayer was offered by Reverend Paul Lundborg, The Lutheran Church of the Good Shephard.

Reading of the Journal of the previous day was dispensed with and it was ordered to stand approved.

MESSAGE FROM THE SENATE

February 6, 2003

Mr. Speaker:

The President has signed SENATE BILL NO. 5001, and the same is herewith transmitted.

Milt H. Doumit, Secretary

SIGNED BY THE SPEAKER

The Speaker signed:

SENATE BILL NO. 5001,

INTRODUCTION & FIRST READING

HB 1750 by Representatives Grant, Mastin, Haigh, Chandler, Holmquist, Crouse, Condotta, Hatfield, Schoesler, Talcott and Newhouse

AN ACT Relating to modifying the inflationary adjustment to the minimum wage; amending RCW 49.46.010, 49.46.010, and 49.46.020; providing effective dates; and providing an expiration date.

Referred to Committee on Commerce & Labor.

HB 1751 by Representatives Fromhold, Boldt, Veloria, Cairnes, Gombosky, Roach, Orcutt, Mielke, Grant, Sullivan, Wallace, Moeller, Rockefeller, Chase, Nixon and Skinner

AN ACT Relating to providing tax incentives to support the semiconductor cluster in Washington state; amending RCW 82.04.260, 82.04.240, and 82.04.280; adding new sections to chapter 82.08 RCW; adding new sections to chapter 82.12 RCW; adding a new section to chapter 82.04 RCW; adding a new section to chapter 84.36 RCW; adding a new section to chapter 82.32 RCW; creating new sections; providing an effective date; and providing expiration dates.

Referred to Committee on Trade & Economic Development.

HB 1752 by Representatives Schindler, Romero, Edwards, Mielke, Upthegrove, Jarrett and Rockefeller

AN ACT Relating to fire protection districts; amending RCW 35A.14.380; and repealing RCW 35.02.200, 35.02.202, 35.02.205, and 35A.14.400.

Referred to Committee on Local Government.

HB 1753 by Representatives Cody, Pflug, Skinner, Clibborn, Morrell, Benson and Edwards; by request of Department of Social and Health Services and Department of Health

AN ACT Relating to nursing practices in community-based and in-home care; amending RCW 18.79.040, 18.79.260, 18.88A.140, 18.88A.200, 18.88A.210, 18.88A.230, 70.127.010, 70.127.040, 70.127.120, 70.127.170, 69.41.010, and 69.41.085; and declaring an emergency.

Referred to Committee on Health Care.

HB 1754 by Representatives Eickmeyer, Schoesler, Sump, Hunt, Grant, Pettigrew, Haigh, McDermott, Blake, Quall, Rockefeller and Romero

AN ACT Relating to poultry; amending RCW 69.07.100; adding a new section to chapter 43.20 RCW; adding a new section to chapter 16.49 RCW; and adding a new section to chapter 69.04 RCW.

Referred to Committee on Agriculture & Natural Resources.

HB 1755 by Representatives Kirby, Romero, Conway, Jarrett, Rockefeller and Morrell

AN ACT Relating to creating alternative means for annexation of unincorporated island of territory; adding a new section to chapter 35.13 RCW; and adding a new section to chapter 35A.14 RCW.

Referred to Committee on Local Government.

HB 1756 by Representatives Conway, Kirby, Talcott, Flannigan, Darneille, Shabro, Edwards and Morrell

AN ACT Relating to authorizing additional funding for local governments; reenacting and amending RCW 84.52.010; adding a new section to chapter 82.14 RCW; adding new sections to chapter 84.52 RCW; and creating a new section.

Referred to Committee on Finance.

HB 1757 by Representatives Holmquist, Grant, Hinkle, Clements, Chandler, Sump, Schoesler, Kristiansen, Newhouse, Delvin, Quall, Condotta, Mastin, Buck, Orcutt, Armstrong and Benson

AN ACT Relating to the relinquishment of water rights; amending RCW 90.14.130, 90.14.160, 90.14.170, and 90.14.180; and adding a new section to chapter 90.14 RCW.

Referred to Committee on Agriculture & Natural Resources.

HB 1758 by Representatives Schoesler and Haigh

AN ACT Relating to chickens; amending RCW 69.07.100; adding a new section to chapter 43.20 RCW; adding a new section to chapter 16.49 RCW; and adding a new section to chapter 69.04 RCW.

Referred to Committee on Agriculture & Natural Resources.

HB 1759 by Representatives Schual-Berke and Benson

AN ACT Relating to financial institution law parity; amending RCW 32.08.142, 32.08.146, and 32.32.500; reenacting and amending RCW 30.04.215; adding new sections to chapter 30.04 RCW; and adding new sections to chapter 32.08 RCW.

Referred to Committee on Financial Institutions & Insurance.

HB 1760 by Representatives Boldt, Anderson, Mielke and McMahan

AN ACT Relating to ensuring discovery of sex offenses against children; amending RCW 9A.76.070 and 9A.08.030; and prescribing penalties.

Referred to Committee on Criminal Justice & Corrections.

HB 1761 by Representatives Lovick, Ahern, O'Brien, Hatfield, Haigh, Rockefeller and Bush

AN ACT Relating to providing for financial restitution to victims of sexual assault from inmate funds and wages; and amending RCW 72.09.111 and 7.68.070.

Referred to Committee on Criminal Justice & Corrections.

HB 1762 by Representatives Murray, Hankins, Cooper, McDermott, Rockefeller, Gombosky, Santos and Haigh

AN ACT Relating to a motor vehicle registration fee to fund air quality protection and improvement and motor vehicle related toxic cleanup; adding a new section to chapter 46.16 RCW; adding a new section to chapter 70.105D RCW; adding a new section to chapter 70.94 RCW; creating a new section; providing an effective date; and providing an expiration date.

Referred to Committee on Transportation.

HB 1763 by Representatives Berkey, Jarrett, Kenney, Priest, Fromhold, Chase, Santos, Lovick, Conway, O'Brien, Linville, Hudgins, Talcott and Edwards

AN ACT Relating to conditional scholarships for prospective teachers; and adding a new section to chapter 28B.80 RCW.

Referred to Committee on Higher Education.

HB 1764 by Representatives Lantz, Carrell, O'Brien, Flannigan and Moeller

AN ACT Relating to liability for performing pretrial supervision activities; amending RCW 36.01.070; adding a new section to chapter 35.21 RCW; and creating a new section.

Referred to Committee on Judiciary.

HB 1765 by Representatives O'Brien, Campbell, Veloria, Cooper and Bush

AN ACT Relating to inmate labor; amending RCW 72.01.150, 72.09.070, 72.09.100, 72.60.110, and 72.09.010; reenacting and amending RCW 72.09.100; adding a new section to chapter 72.09 RCW; repealing RCW 43.19.535; providing an effective date; and providing an expiration date.

Referred to Committee on Criminal Justice & Corrections.

HB 1766 by Representatives Anderson and Benson

AN ACT Relating to the public inspection and copying of state investment board information; and reenacting and amending RCW 42.17.310.

Referred to Committee on State Government.

HB 1767 by Representatives Lovick, Campbell, Mielke, Lantz and O'Brien; by request of Department of Social and Health Services

AN ACT Relating to forensic competency examinations; amending RCW 10.77.060; and creating a new section.

Referred to Committee on Judiciary.

HB 1768 by Representatives Haigh, Miloscia and Hunt

AN ACT Relating to the authority of public facilities districts; and amending RCW 36.100.030.

Referred to Committee on Trade & Economic Development.

HB 1769 by Representatives Romero, Cooper, Dunshee, Linville and Edwards; by request of Governor Locke

AN ACT Relating to timelines and funding for implementation of guidelines for shoreline master programs; and amending RCW 90.58.080 and 90.58.250.

Referred to Committee on Local Government.

HJM 4011 by Representatives Veloria, Skinner, Eickmeyer, Santos, Rockefeller, Chase, Linville, Upthegrove and Edwards

Requesting the state investment board to develop policies to invest more funds in Washington firms.

Referred to Committee on Trade & Economic Development.

HCR 4402 by Representatives Kessler, DeBolt and Hankins

Remembering former legislators.

There being no objection, the bills, memorial and resolution listed on the day's introduction sheet under the fourth order of business were referred to the committees so designated.

There being no objection, House Concurrent Resolution No. 4402 was read the first time in full, the rules were suspended and the resolution was placed on the Second Reading calendar.

REPORTS OF STANDING COMMITTEES

February 6, 2003

HB 1057 Prime Sponsor, Representative Hatfield: Creating the license suspension review committee. Reported by Committee on Fisheries, Ecology & Parks

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Cooper, Chairman; Berkey, Vice Chairman; Sump, Ranking Minority Member; Hinkle, Assistant Ranking Minority Member; Buck; Hatfield; O'Brien; Pearson and Upthegrove.

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1058 Prime Sponsor, Representative Kagi: Addressing educational attainment for foster children. Reported by Committee on Children & Family Services

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Kagi, Chairman; Darneille, Vice Chairman; Boldt, Ranking Minority Member; Roach, Assistant Ranking Minority Member; Bailey; Dickerson; Miloscia; Pettigrew and Shabro.

Passed to Committee on Rules for second reading.

February 6, 2003

HB 1109 Prime Sponsor, Representative Clibborn: Providing wildland fire fighting training. Reported by Committee on State Government

MAJORITY recommendation: Do pass. Signed by Representatives Haigh, Chairman; Miloscia, Vice Chairman; Armstrong, Ranking Minority Member; Shabro, Assistant Ranking Minority Member; Hunt; McDermott; Nixon; Tom and Wallace.

Referred to Committee on Appropriations.

February 4, 2003

HB 1137 Prime Sponsor, Representative Wallace: Creating the corps of discovery pass. Reported by Committee on Fisheries, Ecology & Parks

MAJORITY recommendation: Do pass. Signed by Representatives Cooper, Chairman; Berkey, Vice Chairman; Sump, Ranking Minority Member; Hinkle, Assistant Ranking Minority Member; Hatfield; O'Brien; Pearson and Upthegrove.

Referred to Committee on Appropriations.

February 4, 2003

HB 1138 Prime Sponsor, Representative McIntire: Reestablishing the state parks and outdoor recreation funding task force. Reported by Committee on Fisheries, Ecology & Parks

Passed to Committee on Rules for second reading.

February 4, 2003

HB 1144 Prime Sponsor, Representative Haigh: Allowing the department of fish and wildlife to use approved controlled substances for chemical capture programs. Reported by Committee on Fisheries, Ecology & Parks

Passed to Committee on Rules for second reading.

February 6, 2003

HB 1160 Prime Sponsor, Representative Miloscia: Harmonizing election crimes and penalties. Reported by Committee on State Government

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Haigh, Chairman; Miloscia, Vice Chairman; Armstrong, Ranking Minority Member; Shabro, Assistant Ranking Minority Member; Hunt; McDermott; Nixon; Tom and Wallace.

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1198 Prime Sponsor, Representative Pflug: Determining which fire fighters or law enforcement officers may elect or be elected to certain pension and disability boards. Reported by Committee on Appropriations

MAJORITY recommendation: Do pass. Signed by Representatives Sommers, Chairman; Fromhold, Vice Chairman; Sehlin, Ranking Minority Member; Pearson, Assistant Ranking Minority Member; Alexander; Boldt; Buck; Clements; Cody; Conway; Cox; DeBolt; Dunshee; Grant; Hunter; Kagi; Kenney; Kessler; Linville; McDonald; McIntire; Miloscia; Pflug; Ruderman; Schual-Berke; Sump and Talcott.

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1199 Prime Sponsor, Representative Fromhold: Allowing members of the teachers' retirement system plan 1 to use extended school years for calculation of their earnable compensation. Reported by Committee on Appropriations

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1203 Prime Sponsor, Representative Conway: Providing optional service credit for substitute service to members of the school employees' retirement system. Reported by Committee on Appropriations

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1206 Prime Sponsor, Representative Pflug: Making optional plan 3 member contributions. Reported by Committee on Appropriations

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1207 Prime Sponsor, Representative Alexander: Providing a death benefit for certain public employees. Reported by Committee on Appropriations

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1208 Prime Sponsor, Representative Cooper: Paying survivor benefits in accordance with Title 26 U.S.C. Sec. 101(h) as amended by the Fallen Hero Survivor Benefit Fairness Act of 2001. Reported by Committee on Appropriations

Passed to Committee on Rules for second reading.

February 5, 2003

HB 1233 Prime Sponsor, Representative Pettigrew: Improving services for kinship caregivers. Reported by Committee on Children & Family Services

Referred to Committee on Appropriations.

February 6, 2003

HB 1289 Prime Sponsor, Representative Hinkle: Concerning temporary fishing licenses. Reported by Committee on Fisheries, Ecology & Parks

Passed to Committee on Rules for second reading.

February 4, 2003

HB 1339 Prime Sponsor, Representative Simpson: Regulating escrow agents and officers. Reported by Committee on Financial Institutions & Insurance

MAJORITY recommendation: The substitute bill be substituted therefor and the substitute bill do pass. Signed by Representatives Schual-Berke, Chairman; Simpson, Vice Chairman; Benson, Ranking Minority Member; Cooper; Hatfield; Hunter and Santos.

MINORITY recommendation: Do not pass. Signed by Representatives Newhouse, Assistant Ranking Minority Member; Cairnes; Carrell and Roach.

Referred to Committee on Appropriations.

February 4, 2003

HB 1340 Prime Sponsor, Representative Cooper: Regulating check cashers and sellers. Reported by Committee on Financial Institutions & Insurance

Passed to Committee on Rules for second reading.

There being no objection, the bills listed on the day's committee reports sheet under the fifth order of business were referred to the committees so designated.

SECOND READING

HOUSE CONCURRENT RESOLUTION NO. 4402, By Representatives Kessler and DeBolt

Remembering former legislators.

The concurrent resolution was read the second time.

There being no objection, the rules were suspended, the second reading considered the third and the concurrent resolution was placed on final adoption.

Representative Kessler spoke in favor of passage of the concurrent resolution.

The House Joint Resolution No. 4402 was adopted.

The Speaker appointed Representatives Lovick and Clements to the special committee.

HOUSE BILL NO. 1214, By Representatives Cody, Pflug, Conway, Cooper, McCoy, Berkey, Veloria, Schual-Berke, Bush, Lovick, Hunt, Campbell, Kirby, Hudgins, Dickerson, Pettigrew, Pearson, Wood, Fromhold, Upthegrove, Schindler, McDermott, Wallace, Rockefeller, Morrell, Simpson, Anderson, McMahan, Darneille, Chase, Woods and Clements; by request of Governor Locke

Making prescription drugs more available.

The bill was read the second time. There being no objection, Second Substitute House Bill No. 1214 was substituted for House Bill No. 1214 and the second substitute bill was placed on the second reading calendar.

SECOND SUBSTITUTE HOUSE BILL NO. 1214 was read the second time.

There being no objection, amendment (009) was withdrawn.

Representative Conway moved the adoption of amendment (012):

On page 2, line 20, after "school districts" insert "for whom the authority is providing the school districts' health insurance programs as provided in RCW 28A.400.350"

Representatives Conway and Pflug spoke in favor of the adoption of the amendment.

The amendment was adopted.

Representative Cody moved the adoption of amendment (010):

On page 4, line 28, strike "twelve" and insert "thirteen"

On page 5, after line 14, insert the following:

"(d) The governor shall select one member who is versed in biologic medicine through research or academia from the University of Washington or Washington State University;"

Renumber the remaining subsections accordingly.

On page 8, line 35, after "specified in" strike all language through and including "of this act" on line 36 and insert, "section 3(2)(e),(f), and (g) of this act"

Representatives Cody and Pflug spoke in favor of the adoption of the amendment.

The amendment was adopted.

Representative Alexander moved the adoption of amendment (002):

On page 6, line 5, after "committee." insert "The preferred drug list shall exclude drugs used to treat mental illness, cancer, the acquired human immunodeficiency virus, and diabetes."

Representatives Alexander, Pflug and Delvin spoke in favor of the adoption of the amendment.

Representatives Cody and Quall spoke against the adoption of the amendment.

MOTION

On motion of Representative Clements, Representative Sehlin was excused.

An electronic roll call vote was demanded and the demand was sustained.

The Speaker stated the question before the House to be adoption of amendment (002) to Second Substitute House Bill No. 1214.

ROLL CALL

The Clerk called the roll on the adoption of amendment (002) to Second Substitute House Bill No. 1214, and the amendment was not adopted by the following vote: Yeas - 44, Nays - 53, Absent - 0, Excused - 1.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hankins, Hinkle, Holmquist, Jarrett, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pflug, Priest, Roach, Schindler, Schoesler, Shabro, Skinner, Sump, Talcott, Tom and Woods - 44.

Voting nay: Representatives Berkey, Blake, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 53.

Excused: Representative Sehlin - 1.

Representative Schual-Berke moved the adoption of amendment (011):

On page 2, line 20, after "school districts" insert "for whom the authority is providing the school districts' health insurance programs as provided in RCW 28A.400.350"

Representatives Schual-Berke and Pflug spoke in favor of the adoption of the amendment.

The amendment was adopted.

Representative Linville moved the adoption of amendment (013):

On page 13, line 22, after "purchased from or through" strike "managed care organizations" and insert "health carriers as defined in RCW 48.43.005"

Representatives Linville, Alexander, DeBolt and Linville (again) spoke in favor of the adoption of the amendment.

The amendment was adopted.

Representative Cody moved the adoption of amendment (014):

On page 8, line 12, after "section 13 of this act." insert:

"The administrator shall not require that any supplemental rebate offered by a pharmaceutical manufacturer for prescription drugs purchased for medical assistance program clients under chapter 74.09 RCW be extended to state purchased health care programs other than medical assistance, or to private individuals or entities participating in the consortium."

Representatives Cody and Pflug spoke in favor of the adoption of the amendment.

The amendment was adopted.

Representative Pflug moved the adoption of amendment (015):

On page 1, line 5, strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. (1) The legislature finds that prescription drugs are an effective and important part of efforts to maintain and improve the health of Washington state residents. Yet prescription drug expenditures in both the public and private sectors are growing at rates far in excess of consumer or medical inflation, placing a strain on the ability of public and private health care purchasers to continue to offer comprehensive health benefits coverage. In addition, inappropriate use of prescription drugs can have serious health consequences for Washington state residents.

(2) It is the intent of the legislature to:

(a) Develop a comprehensive prescription drug education and utilization system in Washington state that will ensure best prescribing practices and pharmaceutical use, reduce administrative burdens on providers, increase consumer understanding of and compliance with appropriate use of prescription drugs, help to control increases in consumer and state health care spending, and improve prescription drug purchasing through a sound evidence-based process that evaluates the therapeutic value and cost-effectiveness of prescription drugs; and

(b) Develop a program to promote access to affordable prescription drug coverage to low-income aged or disabled persons who do not otherwise have adequate coverage to purchase necessary and appropriate prescription drugs.

Sec. 2. RCW 41.05.011 and 2001 c 165 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.

(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) 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; (b) 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 (c) employees of a school district if the authority agrees to provide any of the school districts' 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, 41.35, 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, 41.35, or 41.40 RCW.

(9) "Benefits contribution plan" means a premium only contribution plan, a medical flexible spending arrangement, or a cafeteria plan whereby state and public employees may agree to a contribution to benefit costs which will allow the employee to participate in benefits offered pursuant to 26 U.S.C. Sec. 125 or other sections of the internal revenue code.

(10) "Salary" means a state employee's monthly salary or wages.

(11) "Participant" means an individual who fulfills the eligibility and enrollment requirements under the benefits contribution plan.

(12) "Plan year" means the time period established by the authority.

(13) "Separated employees" means persons who separate from employment with an employer as defined in:

(a) RCW 41.32.010(11) on or after July 1, 1996; or

(b) RCW 41.35.010 on or after September 1, 2000; or

and who are at least age fifty-five and have at least ten years of service under the teachers' retirement system plan 3 as defined in RCW 41.32.010(40), the Washington school employees' retirement system plan 3 as defined in RCW 41.35.010, or the public employees' retirement system plan 3 as defined in RCW 41.40.010.

(14) "Emergency service personnel killed in the line of duty" means law enforcement officers and fire fighters as defined in RCW 41.26.030, and reserve officers and fire fighters as defined in RCW 41.24.010 who die as a result of injuries sustained in the course of employment as determined consistent with Title 51 RCW by the department of labor and industries.

(15) "Prescription drug board" means the prescription drug advisory board created in section 3 of this act.

NEW SECTION. Sec. 3. A new section is added to chapter 41.05 RCW to read as follows:

(1) The prescription drug advisory board is created within the authority. The function of the prescription drug board is to provide advice and guidance on prescription drug policies and programs established under section 4 of this act.

(2) The prescription drug board shall be composed of eleven members selected as provided in this subsection.

(a) The governor shall select one member of the prescription drug board from lists of three nominees submitted by statewide organizations representing each of the following:

(i) One representative of state employees, who represents an employee union certified as exclusive representative of at least one bargaining unit of classified employees;

(ii) One member who is a licensed physician;

(iii) One member who is a licensed pharmacist;

(iv) One member representing a health carrier licensed under Title 48 RCW;

(v) One member representing a private union;

(vi) One member representing the biotechnology industry; and

(vii) One member representing nonprofit hospitals.

(b) The governor shall select two members of the prescription drug board from a list of nominees submitted by statewide organizations representing consumers, one of whom shall represent individuals under age sixty-five without insurance coverage for prescription drugs and one of whom shall represent individuals over age sixty-five without insurance coverage for prescription drugs; and

(c) The governor shall select two members of the prescription drug board from a list of nominees submitted by statewide organizations representing business, one of whom shall represent small businesses who employ fifty or fewer employees and one of whom shall represent large businesses.

(3) The governor shall appoint the initial members of the prescription drug board to staggered terms not to exceed four years. Members appointed thereafter shall serve two-year terms. Members of the prescription drug board shall be reimbursed for their travel expenses while on official business in accordance with RCW 43.03.050 and 43.03.060. The members of the board shall elect a member to serve as chair of the prescription drug board. Meetings of the prescription drug board shall be at the call of the chair.

(4) Members of the prescription drug board are immune from civil liability for any official acts performed in good faith as members of the board.

NEW SECTION. Sec. 4, A new section is added to chapter 41.05 RCW to read as follows:

The health care authority shall, directly or by contract:

(a) Adopt a preferred drug list for use as provided in this act through the establishment of a pharmacy and therapeutics committee. The preferred drug list shall exclude drugs used to treat mental illness, cancer, the acquired human immunodeficiency virus, and diabetes.

(i) The pharmacy and therapeutics committee shall be comprised of practicing licensed physicians, other practicing licensed health professionals with prescriptive authority, practicing licensed pharmacists, and pharmacoeconomists. At least one licensed health professional with prescriptive authority and one pharmacist must have demonstrated experience in serving women, children, and people of color. The membership composition must be consistent with applicable federal requirements under Title XIX of the federal social security act to allow full participation by the department of social and health services or other state agencies in activities under this act.

(ii) The pharmacy and therapeutics committee shall review nationally recognized therapeutic drug classes. The committee must use an evidence-based process that evaluates the efficacy of prescription drugs, considering safety, efficacy, likelihood of compliance, outcomes, and any unique impacts on specific populations based upon factors such as sex, age, ethnicity, race, or disability. For each therapeutic class reviewed, the committee must identify the prescription drugs determined to be most clinically effective, and if applicable, equally effective. If there is insufficient evidence or no evidence to establish whether a drug is equally effective, cost shall not be the determining factor in identifying a drug for the preferred drug list. Decisions of the pharmacy and therapeutics committee regarding the clinical effectiveness of drugs within a therapeutic class are binding on the authority.

If a substantial number of prescribers in a peer group are frequently prescribing nonpreferred drugs in one or more therapeutic classes, the administrator must provide the pharmacy and therapeutics committee with information on these prescribing patterns to enable the committee to review their decisions related to the affected therapeutic classes.

(iii) State purchased health care programs shall adopt the preferred drug list established by the authority for those components of their programs that purchase prescription drugs directly or through reimbursement of retail pharmacies consistent with the scope of benefits offered through those programs. In administering prescription drug benefits under state purchased health care programs, agencies shall honor an endorsing prescriber's direction to dispense a prescription drug as written on the prescription order or to continue therapy with the drug classes included in section 13 of this act.

(iv) Within one hundred twenty days following establishment of the pharmacy and therapeutics committee, the drug utilization and education council within the department of social and health services shall be disbanded and its functions transferred to the pharmacy and therapeutics committee.

(v) If a particular class of drugs is being used in a disease management program sponsored by a state purchased health care program, efforts shall be made to ensure that the preferred drugs in that class are consistent with protocols or algorithms used in the disease management program.

(vi) Members of the pharmacy and therapeutics committee are immune from civil liability for any official acts performed in good faith as members of the committee;

(b) Establish drug utilization management policies. State purchased health care programs shall adopt these drug utilization management policies consistent with the scope of benefits offered and populations served through programs administered by that program and may implement the policies directly or by contract or interagency agreement. To ensure full participation by the department of social and health services in drug utilization management activities under this act, the policies must be consistent with drug utilization review requirements of Title XIX of the federal social security act. The pharmacy and therapeutics committee shall conduct drug utilization management activities for state purchased health care programs as directed by the authority;

(c) Develop prescriber and consumer education policies. State purchased health care programs shall adopt these prescriber and consumer policies and implement them directly or by contract or interagency agreement. Effective prescriber education policies are intended to result in better compliance of prescribers with the preferred drug list and increased cost savings. Prescriber education policies should be adequately funded and designed to educate prescribers to prevent use of more expensive prescription drugs of no greater clinical benefit, to increase prescribers' awareness of the preferred drug list and the credible evidence-based process used to develop it, and the ability to direct that prescriptions be dispensed as written;

(d) Adopt policies necessary for establishment of cross-agency prescription drug purchasing activities. The administrator shall implement the prescription drug purchasing policies, and shall coordinate state purchased health care programs' participation. State purchased health care programs shall coordinate the purchase of prescription drugs for those prescription drugs that are purchased directly by the state and those that are purchased through reimbursement of retail pharmacies, unless exempted under section 14 of this act. The administrator shall explore joint purchasing opportunities with other states to achieve quality cost-effective prescription drug coverage for participating state agencies.

(e) Develop an operating plan for a public/private prescription drug purchasing consortium and present the plan to appropriate committees of the senate and house of representatives by January 1, 2005. The operating plan will go into effect on July 1, 2005 unless the legislature takes official action to modify or prohibit the operating plan. The authority shall provide reports to the legislature on January 1, 2006 and January 1, 2007 on the costs and benefits of the purchasing consortium to participating individuals and private entities.

NEW SECTION. Sec. 5. A new section is added to chapter 41.05 RCW to read as follows:

Members of the prescription drug board, the pharmacy and therapeutics committee, or any committee that may be established to carry out activities under this act are prohibited from being employed by a pharmaceutical manufacturer, a pharmacy benefits management company, or be employed by any agency administering state purchased health care programs, except as specified in section 3(2)(d), (e), and (f) of this act. As a condition of appointment to the prescription drug board or any committee, each member must disclose any potential conflict of interest, including receipt of any remuneration, grants, or other compensation from a pharmaceutical manufacturer or pharmaceutical benefits management company.

NEW SECTION. Sec. 6. A new section is added to chapter 41.05 RCW to read as follows:

The administrator shall:

(1) Directly or by interagency agreement or contract, distribute the initial preferred drug list and any subsequent revisions to every provider with prescriptive authority, including with it a description of how the list was developed, how it will be used, and requesting his or her endorsement;

(2) Obtain in writing from all prescribers either: (a) An affirmative statement endorsing the preferred drug list and acknowledging the therapeutic substitution authority granted to pharmacists when there is no direction to dispense the prescription as written, or (b) a statement declining to endorse the preferred drug list; and

(3) Provide each pharmacy with a listing of the prescribers who have not endorsed the preferred drug list.

NEW SECTION. Sec. 7. A new section is added to chapter 74.09 RCW to read as follows:

(1) There is established a program to be known as the senior prescription drug assistance program. To the extent funds are appropriated specifically for this purpose, and subject to any conditions placed on appropriations made for this purpose, the department shall design and administer the senior prescription drug assistance program. Neither the benefits of, nor eligibility for, the program is considered to be an entitlement.

(2) The department is directed to obtain necessary federal waivers to implement this program. Consistent with federal waiver conditions, the department is authorized to charge enrollment fees, premiums, or point-of-service cost-sharing to enrollees of the program. In addition to seeking a federal waiver, the department shall develop a state-only alternative that does not require federal approval or funding.

(3) Eligibility for this program is limited to persons: (a) Who are age sixty-five and older; (b) whose family income does not exceed two hundred percent of the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services; (c) who do not otherwise have insurance that provides prescription drug coverage; and (d) who are not otherwise eligible under Title XIX of the federal social security act.

(4) The department is authorized to use a cost-effective prescription drug benefit design. Consistent with federal waiver conditions, this benefit design can be different than the benefit design offered under the medical assistance program. The benefit design may include a deductible benefit that provides coverage when enrollees incur higher prescription drug costs as defined by the department. The department also may offer more than one benefit design.

(5) The department is authorized to limit enrollment of persons who qualify for the program so as to prevent an overexpenditure of appropriations for this program or to assure necessary compliance with federal waiver budget neutrality requirements. The department shall not reduce existing medical assistance program eligibility or benefits to assure compliance with federal waiver budget neutrality requirements.

(6) No funds from an approved federal waiver that allows for the collection of premiums from medicaid clients will be used to finance the medicaid prescription drug assistance program.

(7) This program will be terminated within twelve months after implementation of a prescription drug benefit under Title XVIII of the social security act.

(8) The department shall provide recommendations to the appropriate committees of the senate and house of representatives by November 15, 2003, on financing options available to support the prescription drug assistance program. In recommending financing options, the department shall explore every opportunity to maximize federal funding to support the program.

Sec. 8. RCW 43.72.900 and 2002 c 371 s 909 are each amended to read as follows:

(1) The health services account is created in the state treasury. Moneys in the account may be spent only after appropriation. Subject to the transfers described in subsection (3) of this section, moneys in the account may be expended only for maintaining and expanding health services access for low-income residents, maintaining and expanding the public health system, maintaining and improving the capacity of the health care system, containing health care costs, and the regulation, planning, and administering of the health care system.

(2) Funds deposited into the health services account under RCW 82.24.028 and 82.26.028 shall be used solely as follows:

(a) Five million dollars for the state fiscal year beginning July 1, 2002, and five million dollars for the state fiscal year beginning July 1, 2003, shall be appropriated by the legislature for programs that effectively improve the health of low-income persons, including efforts to reduce diseases and illnesses that harm low-income persons. The department of health shall submit a report to the legislature on March 1, 2002, evaluating the cost-effectiveness of programs that improve the health of low-income persons and address diseases and illnesses that disproportionately affect low-income persons, and making recommendations to the legislature on which of these programs could most effectively utilize the funds appropriated under this subsection.

(b) Ten percent of the funds deposited into the health services account under RCW 82.24.028 and 82.26.028 remaining after the appropriation under (a) of this subsection shall be transferred no less frequently than annually by the treasurer to the tobacco prevention and control account established by RCW 43.79.480. The funds transferred shall be used exclusively for implementation of the Washington state tobacco prevention and control plan and shall be used only to supplement, and not supplant, funds in the tobacco prevention and control account as of January 1, 2001, however, these funds may be used to replace funds appropriated by the legislature for further implementation of the Washington state tobacco prevention and control plan for the biennium beginning July 1, 2001. For each state fiscal year beginning on and after July 1, 2002, the legislature shall appropriate no less than twenty-six million two hundred forty thousand dollars from the tobacco prevention and control account for implementation of the Washington state tobacco prevention and control plan. senior prescription assistance program account established under RCW..... (section 9 of this act).

(c) Because of its demonstrated effectiveness in improving the health of low-income persons and addressing illnesses and diseases that harm low-income persons, the remainder of the funds deposited into the health services account under RCW 82.24.028 and 82.26.028 shall be appropriated solely for Washington basic health plan enrollment as provided in chapter 70.47 RCW. Funds appropriated pursuant to this subsection (2)(c) must supplement, and not supplant, the level of state funding needed to support enrollment of a minimum of one hundred twenty-five thousand persons for the fiscal year beginning July 1, 2002, and every fiscal year thereafter. The health care authority may enroll up to twenty thousand additional persons in the basic health plan during the biennium beginning July 1, 2001, above the base level of one hundred twenty-five thousand enrollees. The health care authority may enroll up to fifty thousand additional persons in the basic health plan during the biennium beginning July 1, 2003, above the base level of one hundred twenty-five thousand enrollees. For each biennium beginning on and after July 1, 2005, the health care authority may enroll up to at least one hundred seventy-five thousand enrollees. Funds appropriated under this subsection may be used to support outreach and enrollment activities only to the extent necessary to achieve the enrollment goals described in this section.

(3) Prior to expenditure for the purposes described in subsection (2) of this section, funds deposited into the health services account under RCW 82.24.028 and 82.26.028 shall first be transferred to the following accounts to ensure the continued availability of previously dedicated revenues for certain existing programs:

(a) To the violence reduction and drug enforcement account under RCW 69.50.520, two million two hundred forty-nine thousand five hundred dollars for the state fiscal year beginning July 1, 2001, four million two hundred forty-eight thousand dollars for the state fiscal year beginning July 1, 2002, seven million seven hundred eighty-nine thousand dollars for the biennium beginning July 1, 2003, six million nine hundred thirty-two thousand dollars for the biennium beginning July 1, 2005, and six million nine hundred thirty-two thousand dollars for each biennium thereafter, as required by RCW 82.24.020(2);

(b) To the health services account under this section, nine million seventy-seven thousand dollars for the state fiscal year beginning July 1, 2001, seventeen million one hundred eighty-eight thousand dollars for the state fiscal year beginning July 1, 2002, thirty-one million seven hundred fifty-five thousand dollars for the biennium beginning July 1, 2003, twenty-eight million six hundred twenty-two thousand dollars for the biennium beginning July 1, 2005, and twenty-eight million six hundred twenty-two thousand dollars for each biennium thereafter, as required by RCW 82.24.020(3); and

(c) To the water quality account under RCW 70.146.030, two million two hundred three thousand five hundred dollars for the state fiscal year beginning July 1, 2001, four million two hundred forty-four thousand dollars for the state fiscal year beginning July 1, 2002, eight million one hundred eighty-two thousand dollars for the biennium beginning July 1, 2003, seven million eight hundred eighty-five thousand dollars for the biennium beginning July 1, 2005, and seven million eight hundred eighty-five thousand dollars for each biennium thereafter, as required by RCW 82.24.027(2)(a).

During the 2001-2003 fiscal biennium, the legislature may transfer from the health services account such amounts as reflect the excess fund balance of the account.

NEW SECTION. Sec. 9. A new section is added to chapter 43.79 RCW to read as follows:

The senior prescription drug assistance program account is created in the state treasury. Funds deposited in the account shall be used to support the activities of RCW _____(section 7 of this act). Expenditures from the account are subject to appropriation.

NEW SECTION. Sec. 10. A new section is added to chapter 41.05 RCW to read as follows:

The administrator shall, directly or by interagency agreement or contract, establish and operate a statewide senior prescription drug information clearinghouse. The clearinghouse shall:

(1) Promote access to necessary prescription drugs for persons over age sixty-five who reside in Washington state;

(2) Make information available on a statewide basis regarding private and public programs that provide financial assistance to seniors for the purchase of prescription drugs;

(3) Provide educational information about the preferred drug list and methods to purchase prescription drugs most cost-effectively and efficiently, including information about generic drugs and the potential for dangerous drug interactions; and

(4) Provide individual education and assistance regarding prescription drug financial assistance programs.

Prior to July 1, 2005, the administrator shall provide for an evaluation of the effectiveness and potential continuation of the clearinghouse.

NEW SECTION. Sec. 11. A new section is added to chapter 41.05 RCW to read as follows:

The administrator may solicit and accept grants or other funds from public and private sources to support activities under this act, including but not limited to consumer and provider education. Any grants or funds received may be used to enhance these activities as long as program standards established by the administrator are maintained. Except for supplemental rebates, no money from the pharmaceutical industry shall be used to support the activities under this act. Private foundations shall be prohibited from passing through funding from a pharmaceutical manufacturer when it gives the appearance of a conflict of interest or an attempt to exert undue influence on the implementation of this act. The administrator shall report to the appropriate committees of the senate and house of representatives on any grants or funds received under this section within thirty days of their receipt.

NEW SECTION. Sec. 12. A new section is added to chapter 41.05 RCW to read as follows:

The administrator shall contract with an independent entity to evaluate the implementation and impacts of the prescription drug board's activities under this act.

(1) The evaluation shall assess:

(a) The degree to which the program has influenced prescription drug prescribing practices among health care providers in Washington, including a description of how prescribing practices may have changed;

(b) The impact of the program on quality of care and clinical outcomes for persons enrolled in state purchased health care programs;

(c) The extent to which the program has lessened administrative burdens on health care providers participating in state purchased health care programs;

(d) The impact of the program on prescription drug expenditures across state purchased health care programs; and

(e) The impact of the program on the utilization of, and expenditures for, other health care services funded by state purchased health care programs.

(2) The administrator shall make every effort to pursue and obtain federal or private foundation funding for the evaluation from entities such as the federal agency for health care research and quality or the Milbank memorial fund. To ensure that results of the evaluation are objective and unbiased, private foundation funds derived from the pharmaceutical industry may not be used to fund the evaluation.

(3) The results of the evaluation must be submitted to the governor and the legislature by January 1, 2007.

NEW SECTION. Sec. 13. A new section is added to chapter 69.41 RCW to read as follows:

Any pharmacist filling a prescription under the preferred drug list program established under section 4 of this act shall substitute the preferred drug for any nonpreferred drug in a given therapeutic category, unless:

(1) The endorsing prescriber has indicated on the prescription that the nonpreferred drug must be dispensed as written; or

(2) The prescription is for a refill of an antipsychotic, chemotherapy, antiretroviral, or immunosuppressive drug, in which case the pharmacist shall dispense the nonpreferred drug as written. When a substitution is made, on a new prescription or as a result of a change in the preferred drug within a therapeutic class, the prescriber must be notified in writing by the dispensing pharmacist of the specific drug and dose dispensed.

NEW SECTION. Sec. 14. A new section is added to chapter 41.05 RCW to read as follows:

Nothing in this act preempts state-owned or managed hospitals licensed under chapter 70.41 RCW from aggregate purchasing through other programs. These hospitals may choose to participate in the preferred drug list program under section 4 of this act if drugs can be obtained at lower cost.

NEW SECTION. Sec. 15. A new section is added to chapter 41.05 RCW to read as follows:

This act does not apply to state purchased health care services that are purchased from or through managed care organizations, or group model health maintenance organizations that are accredited by the national committee for quality assurance. The administrator shall exempt those prescribers that practice in a group model health maintenance organization that is accredited by the national committee for quality assurance from the endorsement provisions of section 6 of this act.

NEW SECTION. Sec. 16. The therapeutic consultation service operated by the department of social and health services, with the exception of the intensive benefits management and academic detailing components of the program, expires on July 1, 2005. However, the department shall terminate the therapeutic consultation service four brand limit program component earlier if, upon monitoring prescriber compliance with the preferred drug list and trends in the therapeutic consultation service four brand limit program component, the department determines the number of pharmacy claims that trigger the four brand edit exception under therapeutic consultation services is below the threshold set by the legislature in the biennial omnibus operating budget bill for three consecutive months. The threshold is the point where anticipated savings associated with the therapeutic consultation service four brand limit program component no longer justify its operation due to the implementation of this act.

NEW SECTION. Sec. 17. A new section is added to chapter 41.05 RCW to read as follows:

The health care authority and agencies that administer state purchased health care programs are authorized to adopt rules implementing this act.

NEW SECTION. Sec. 18. If specific funding for this act referencing this act by bill or chapter number, is not provided by June 30, 2003, in the omnibus appropriations act, this act is null and void.

NEW SECTION. Sec. 19. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 20. If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.

NEW SECTION. Sec. 21. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately."

Correct the title.

Representatives Pflug, Orcutt, DeBolt, Skinner, Clements, Pearson, Delvin, Mastin, Alexander and Pflug (again) spoke in favor of the adoption of the amendment.

Representatives Cody, Conway, Campbell, Hunt and Schual-Berke spoke against the adoption of the amendment.

An electronic roll call vote was demanded and the demand was sustained.

The Speaker stated the question before the House to be adoption of amendment (015) to Second Substitute House Bill No. 1214.

ROLL CALL

The Clerk called the roll on the adoption of amendment (015) to Second Substitute House Bill No. 1214, and the amendment was not adopted by the following vote: Yeas - 44, Nays - 53, Absent - 0, Excused - 1.

Excused: Representative Sehlin - 1.

The bill was ordered engrossed.

There being no objection, the rules were suspended, the second reading considered the third and the bill was placed on final passage.

Representatives Cody, Clibborn, Campbell, Schual-Berke, Morrell and Moeller spoke in favor of passage of the bill.

Representative Benson, DeBolt, Schindler and Pflug spoke against the passage of the bill.

COLLOQUY

Representative Pflug: "Is it the intent of Second Substitute House Bill No. 1214 that the meetings of the prescription drug board established in section 3 and of the pharmacy and therapeutics committee established in section 4 of the act be subject to the Open Public Meetings Act?"

Representative Cody: "Yes. The intent of Second Substitute House Bill No. 1214 is that the meetings of the prescription drug board established in section 3 of the act, and the pharmacy and therapeutics committee established in section 4 of the act be subject to the Open Public Meetings Act. However, House Bill No. 1444, currently before the State Government Committee, would clarify the ability of the prescriptions drug board or pharmacy and therapeutics committee to go into executive session to consider proprietary or confidential nonpublished information from a pharmaceutical manufacturer or other vendor."

The Speaker stated the question before the House to be the final passage of Engrossed Second Substitute House Bill No. 1214.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 1214 and the bill passed the House by the following vote: Yeas - 64, Nays - 33, Absent - 0, Excused - 1.

Voting yea: Representatives Berkey, Blake, Cairnes, Campbell, Carrell, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Edwards, Eickmeyer, Flannigan, Fromhold, Gombosky, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, Nixon, O'Brien, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, Simpson, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 64.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hinkle, Holmquist, Jarrett, Mastin, McMahan, McMorris, Mielke, Newhouse, Orcutt, Pflug, Schindler, Schoesler, Shabro, Skinner, Sump and Woods - 33.

Excused: Representative Sehlin - 1.

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 1214, having received the necessary constitutional majority, was declared passed.

There being no objection, the House advanced to the eleventh order of business.

There being no objection, the House adjourned until 10:00 a.m., February 10, 2003, the 29^th Day of the Regular Session.

FRANK CHOPP, Speaker CYNTHIA ZEHNDER, Chief Clerk