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FIFTY EIGHTH LEGISLATURE - REGULAR SESSION

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THIRTY SEVENTH DAY

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House Chamber, Olympia, Tuesday, February 17, 2004

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

The flag was escorted to the rostrum by a Sergeant at Arms Color Guard, Pages John Gokcen and Rachael Blake. The Speaker (Representative Lovick presiding) led the Chamber in the Pledge of Allegiance. Prayer was offered by Pastor John Stroeh, the Lutheran Church of the Good Shepherd, Olympia.

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

MESSAGES FROM THE SENATE

February 16, 2004

Mr. Speaker:

The Senate has passed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5585,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5874,

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 6358,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6415,

ENGROSSED SENATE BILL NO. 6598,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6675,

ENGROSSED SENATE JOINT MEMORIAL NO. 8047,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

February 16, 2004

Mr. Speaker:

The Senate has passed:

SUBSTITUTE SENATE BILL NO. 6166,

SUBSTITUTE SENATE BILL NO. 6178,

SUBSTITUTE SENATE BILL NO. 6211,

SENATE BILL NO. 6247,

SUBSTITUTE SENATE BILL NO. 6285,

SENATE BILL NO. 6337,

SENATE BILL NO. 6339,

SUBSTITUTE SENATE BILL NO. 6560,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

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

SECOND READING SUSPENSION

HOUSE BILL NO. 2431, By Representatives Upthegrove, Cooper and Chase

Establishing a Dungeness crab endorsement.

The bill was read the second time.

There being no objection, the committee recommendation was adopted and SUBSTITUTE HOUSE BILL NO. 2431 was read the second time.

The bill was placed on final passage.

Representatives Cooper and Pearson spoke in favor of passage of the bill.

MOTIONS

On motion of Representative Santos, Representatives Conway, Edwards, Eickmeyer, Flannigan, Hudgins, Hunter, Kagi, Kirby, Morris, Murray, Pettigrew, Quall, Schual-Berke, Sullivan, Upthegrove and Wallace were excused. On motion of Representative Clements, Representatives Bush, Campbell, DeBolt, Ericksen, Mastin and Rodne were excused.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 2431.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2431 and the bill passed the House by the following vote: Yeas - 76, Nays - 0, Absent - 0, Excused - 22.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Cairnes, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Cooper, Cox, Crouse, Darneille, Delvin, Dickerson, Dunshee, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hunt, Jarrett, Kenney, Kessler, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Priest, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sump, Talcott, Tom, Veloria, Wood, Woods and Mr. Speaker - 76.

Excused: Representatives Bush, Campbell, Conway, DeBolt, Edwards, Eickmeyer, Ericksen, Flannigan, Hudgins, Hunter, Kagi, Kirby, Mastin, Morris, Murray, Pettigrew, Quall, Rodne, Schual-Berke, Sullivan, Upthegrove and Wallace - 22.

SUBSTITUTE HOUSE BILL NO. 2431, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2512, By Representatives Hunter and McIntire; by request of Department of Social and Health Services and Department of Revenue

Transferring responsibility for collecting certain telephone program excise taxes from the department of social and health services to the department of revenue.

The bill was read the second time.

There being no objection, the committee recommendation was adopted.

The bill was placed on final passage.

Representatives McIntire and Cairnes spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of House Bill No. 2512.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 2512 and the bill passed the House by the following vote: Yeas - 84, Nays - 0, Absent - 0, Excused - 14.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Cairnes, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Jarrett, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sump, Talcott, Tom, Veloria, Wood, Woods and Mr. Speaker - 84.

Excused: Representatives Bush, Campbell, Edwards, Eickmeyer, Ericksen, Flannigan, Hunter, Kagi, Mastin, Rodne, Schual-Berke, Sullivan, Upthegrove and Wallace - 14.

HOUSE BILL NO. 2512, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 3133, By Representatives Fromhold, Orcutt, Kessler, Hatfield, Grant and Newhouse

Modifying promoters requirements for vendor tax registration.

The bill was read the second time.

There being no objection, the committee recommendation was adopted.

The bill was placed on final passage.

Representative Fromhold spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of House Bill No. 3133.

ROLL CALL

The Clerk called the roll on the final passage of House Bill No. 3133 and the bill passed the House by the following vote: Yeas - 84, Nays - 0, Absent - 0, Excused - 14.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Cairnes, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Jarrett, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Romero, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, D. Simpson, G. Simpson, Skinner, Sommers, Sump, Talcott, Tom, Veloria, Wood, Woods and Mr. Speaker - 84.

Excused: Representatives Bush, Campbell, Edwards, Eickmeyer, Ericksen, Flannigan, Hunter, Kagi, Mastin, Rodne, Schual-Berke, Sullivan, Upthegrove and Wallace - 14.

HOUSE BILL NO. 3133, having received the necessary constitutional majority, was declared passed.

MESSAGE FROM THE SENATE

February 16, 2004

Mr. Speaker:

The Senate has passed the following bills:

SECOND SUBSTITUTE SENATE BILL NO. 6082,

SUBSTITUTE SENATE BILL NO. 6377,

SENATE BILL NO. 6403,

SENATE BILL NO. 6485,

SUBSTITUTE SENATE BILL NO. 6584,

SENATE BILL NO. 6614,

SUBSTITUTE SENATE BILL NO. 6649,

SENATE BILL NO. 6686,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

SECOND READING

HOUSE BILL NO. 2777, By Representatives McDermott, Haigh and Schual-Berke

Providing for a study of after-school programs.

The bill was read the second time. There being no objection, Substitute House Bill No. 2777 was substituted for House Bill No. 2777 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 2777 was read the second time.

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

Representatives McDermott, Talcott, Shabro, Hinkle, O'Brien, McDonald, Armstrong, Holmquist, Ahern, Schoesler, Ericksen, Alexander and Roach spoke in favor of passage of the bill.

Representatives Benson, Boldt and Nixon spoke against the passage of the bill.

Representative Hankins demanded the previous question and the demand was sustained.

MOTION

On motion of Representative Clements, Representative Skinner was excused.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 2777.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2777 and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 96.

Excused: Representatives Edwards and Skinner - 2.

SUBSTITUTE HOUSE BILL NO. 2777, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2460, By Representatives Cody, Campbell, Kessler, Morrell, Haigh, Kenney, Santos, Hatfield, Blake, Linville, Upthegrove, G. Simpson, Moeller and Lantz

Providing access to health insurance for small employers and their employees.

The bill was read the second time. There being no objection, Substitute House Bill No. 2460 was substituted for House Bill No. 2460 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 2460 was read the second time.

Representative Cody moved the adoption of amendment (999):

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 48.21.045 and 1995 c 265 s 14 are each amended to read as follows:

(1)(a) An insurer offering any health benefit plan to a small employer ((shall)) may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude an insurer from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. An insurer offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

(b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW ((48.21.130,)) 48.21.140, ((48.21.141,)) 48.21.142, 48.21.144, 48.21.146, 48.21.160 through 48.21.197, 48.21.200, 48.21.220, ((48.21.225, 48.21.230, 48.21.235,)) 48.21.240, 48.21.244, 48.21.250, 48.21.300, 48.21.310, or 48.21.320 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to)) for employers with not more than ((twenty-five)) fifty employees.

(2) Nothing in this section shall prohibit an insurer from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

(3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

(a) The insurer shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

(i) Geographic area;

(ii) Family size;

(iii) Age; and

(iv) Wellness activities.

(b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments, which shall begin with age twenty and end with age sixty-five. Employees under the age of twenty shall be treated as those age twenty.

(c) The insurer shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

(d) The permitted rates for any age group shall be no more than four hundred twenty-five percent of the lowest rate for all age groups on January 1, 1996, four hundred percent on January 1, 1997, and three hundred seventy-five percent on January 1, 2000, and thereafter.

(e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

(f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

(i) Changes to the enrollment of the small employer;

(ii) Changes to the family composition of the employee;

(iii) Changes to the health benefit plan requested by the small employer; or

(iv) Changes in government requirements affecting the health benefit plan.

(g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

(h) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. A carrier may develop its rates based on claims costs due to network provider reimbursement schedules or type of network. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

(i) Adjusted community rates established under this section shall pool the medical experience of all small groups purchasing coverage including the development of allowable factors under (a) and (h) of this subsection. The development of these factors or benefit relativities must be based on the carrier's company-wide credible study or a large study developed by an actuarial consultant or other method accepted by the commissioner.

(4) ((The health benefit plans authorized by this section that are lower than the required offering shall not supplant or supersede any existing policy for the benefit of employees in this state.)) Nothing in this section shall restrict the right of employees to collectively bargain for insurance providing benefits in excess of those provided herein.

(5)(a) Except as provided in this subsection, requirements used by an insurer in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

(b) An insurer shall not require a minimum participation level greater than:

(i) One hundred percent of eligible employees working for groups with three or less employees; and

(ii) Seventy-five percent of eligible employees working for groups with more than three employees.

(c) In applying minimum participation requirements with respect to a small employer, a small employer shall not consider employees or dependents who have similar existing coverage in determining whether the applicable percentage of participation is met.

(d) An insurer may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

(6) An insurer must offer coverage to all eligible employees of a small employer and their dependents. An insurer may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. An insurer may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.

(7) As used in this section, "health benefit plan," "small employer," (("basic health plan,")) "adjusted community rate," and "wellness activities" mean the same as defined in RCW 48.43.005.

Sec. 2. RCW 48.43.005 and 2001 c 196 s 5 and 2001 c 147 s 1 are each reenacted and amended to read as follows:

Unless otherwise specifically provided, the definitions in this section apply throughout this chapter.

(1) "Adjusted community rate" means the rating method used to establish the premium for health plans adjusted to reflect actuarially demonstrated differences in utilization or cost attributable to geographic region, age, family size, and use of wellness activities.

(2) "Basic health plan" means the plan described under chapter 70.47 RCW, as revised from time to time.

(3) "Basic health plan model plan" means a health plan as required in RCW 70.47.060(2)(d).

(4) "Basic health plan services" means that schedule of covered health services, including the description of how those benefits are to be administered, that are required to be delivered to an enrollee under the basic health plan, as revised from time to time.

(5) "Catastrophic health plan" means:

(a) In the case of a contract, agreement, or policy covering a single enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, one thousand five hundred dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least three thousand dollars; and

(b) In the case of a contract, agreement, or policy covering more than one enrollee, a health benefit plan requiring a calendar year deductible of, at a minimum, three thousand dollars and an annual out-of-pocket expense required to be paid under the plan (other than for premiums) for covered benefits of at least five thousand five hundred dollars; or

(c) Any health benefit plan that provides benefits for hospital inpatient and outpatient services, professional and prescription drugs provided in conjunction with such hospital inpatient and outpatient services, and excludes or substantially limits outpatient physician services and those services usually provided in an office setting.

(6) "Certification" means a determination by a review organization that an admission, extension of stay, or other health care service or procedure has been reviewed and, based on the information provided, meets the clinical requirements for medical necessity, appropriateness, level of care, or effectiveness under the auspices of the applicable health benefit plan.

(7) "Concurrent review" means utilization review conducted during a patient's hospital stay or course of treatment.

(8) "Covered person" or "enrollee" means a person covered by a health plan including an enrollee, subscriber, policyholder, beneficiary of a group plan, or individual covered by any other health plan.

(9) "Dependent" means, at a minimum, the enrollee's legal spouse and unmarried dependent children who qualify for coverage under the enrollee's health benefit plan.

(10) "Eligible employee" means an employee who works on a full-time basis with a normal work week of thirty or more hours. The term includes a self-employed individual, including a sole proprietor, a partner of a partnership, and may include an independent contractor, if the self-employed individual, sole proprietor, partner, or independent contractor is included as an employee under a health benefit plan of a small employer, but does not work less than thirty hours per week and derives at least seventy-five percent of his or her income from a trade or business through which he or she has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form. Persons covered under a health benefit plan pursuant to the consolidated omnibus budget reconciliation act of 1986 shall not be considered eligible employees for purposes of minimum participation requirements of chapter 265, Laws of 1995.

(11) "Emergency medical condition" means the emergent and acute onset of a symptom or symptoms, including severe pain, that would lead a prudent layperson acting reasonably to believe that a health condition exists that requires immediate medical attention, if failure to provide medical attention would result in serious impairment to bodily functions or serious dysfunction of a bodily organ or part, or would place the person's health in serious jeopardy.

(12) "Emergency services" means otherwise covered health care services medically necessary to evaluate and treat an emergency medical condition, provided in a hospital emergency department.

(13) "Enrollee point-of-service cost-sharing" means amounts paid to health carriers directly providing services, health care providers, or health care facilities by enrollees and may include copayments, coinsurance, or deductibles.

(14) "Grievance" means a written complaint submitted by or on behalf of a covered person regarding: (a) Denial of payment for medical services or nonprovision of medical services included in the covered person's health benefit plan, or (b) service delivery issues other than denial of payment for medical services or nonprovision of medical services, including dissatisfaction with medical care, waiting time for medical services, provider or staff attitude or demeanor, or dissatisfaction with service provided by the health carrier.

(15) "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.

(16) "Health care provider" or "provider" means:

(a) A person regulated under Title 18 or 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.

(17) "Health care service" means that service offered or provided by health care facilities and health care providers relating to the prevention, cure, or treatment of illness, injury, or disease.

(18) "Health carrier" or "carrier" 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, or a health maintenance organization as defined in RCW 48.46.020.

(19) "Health plan" or "health benefit plan" means any policy, contract, or agreement offered by a health carrier to provide, arrange, reimburse, or pay for health care services except the following:

(a) Long-term care insurance governed by chapter 48.84 RCW;

(b) Medicare supplemental health insurance governed by chapter 48.66 RCW;

(d) Disability income;

(e) Coverage incidental to a property/casualty liability insurance policy such as automobile personal injury protection coverage and homeowner guest medical;

(f) Workers' compensation coverage;

(g) Accident only coverage;

(h) Specified disease and hospital confinement indemnity when marketed solely as a supplement to a health plan;

(i) Employer-sponsored self-funded health plans;

(j) Dental only and vision only coverage; and

(k) Plans deemed by the insurance commissioner to have a short-term limited purpose or duration, or to be a student-only plan that is guaranteed renewable while the covered person is enrolled as a regular full-time undergraduate or graduate student at an accredited higher education institution, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

(20) "Material modification" means a change in the actuarial value of the health plan as modified of more than five percent but less than fifteen percent.

(21) "Preexisting condition" means any medical condition, illness, or injury that existed any time prior to the effective date of coverage.

(22) "Premium" means all sums charged, received, or deposited by a health carrier as consideration for a health plan or the continuance of a health plan. Any assessment or any "membership," "policy," "contract," "service," or similar fee or charge made by a health carrier in consideration for a health plan is deemed part of the premium. "Premium" shall not include amounts paid as enrollee point-of-service cost-sharing.

(23) "Review organization" means a disability insurer regulated under chapter 48.20 or 48.21 RCW, health care service contractor as defined in RCW 48.44.010, or health maintenance organization as defined in RCW 48.46.020, and entities affiliated with, under contract with, or acting on behalf of a health carrier to perform a utilization review.

(24) "Small employer" or "small group" means any person, firm, corporation, partnership, association, political subdivision, sole proprietor, or self-employed individual that is actively engaged in business that, on at least fifty percent of its working days during the preceding calendar quarter, employed at least two but no more than fifty eligible employees, with a normal work week of thirty or more hours, the majority of whom were employed within this state, and is not formed primarily for purposes of buying health insurance and in which a bona fide employer-employee relationship exists. In determining the number of eligible employees, companies that are affiliated companies, or that are eligible to file a combined tax return for purposes of taxation by this state, shall be considered an employer. Subsequent to the issuance of a health plan to a small employer and for the purpose of determining eligibility, the size of a small employer shall be determined annually. Except as otherwise specifically provided, a small employer shall continue to be considered a small employer until the plan anniversary following the date the small employer no longer meets the requirements of this definition. ((The term "small employer" includes a self-employed individual or sole proprietor. The term "small employer" also includes a self-employed individual or sole proprietor who derives at least seventy-five percent of his or her income from a trade or business through which the individual or sole proprietor has attempted to earn taxable income and for which he or she has filed the appropriate internal revenue service form 1040, schedule C or F, for the previous taxable year.)) A self-employed individual or sole proprietor who is covered as a group of one on the day prior to the effective date of this section shall also be considered a "small employer" to the extent that individual or group of one is entitled to have his or her coverage renewed as provided in RCW 48.43.035(6).

(25) "Utilization review" means the prospective, concurrent, or retrospective assessment of the necessity and appropriateness of the allocation of health care resources and services of a provider or facility, given or proposed to be given to an enrollee or group of enrollees.

(26) "Wellness activity" means an explicit program of an activity consistent with department of health guidelines, 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 for the purpose of improving enrollee health status and reducing health service costs.

Sec. 3. RCW 48.43.018 and 2001 c 196 s 8 are each amended to read as follows:

(1) Except as provided in (a) through (((c))) (d) of this subsection, a health carrier may require any person applying for an individual health benefit plan to complete the standard health questionnaire designated under chapter 48.41 RCW.

(a) If a person is seeking an individual health benefit plan due to his or her change of residence from one geographic area in Washington state to another geographic area in Washington state where his or her current health plan is not offered, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of relocation.

(b) If a person is seeking an individual health benefit plan:

(i) Because a health care provider with whom he or she has an established care relationship and from whom he or she has received treatment within the past twelve months is no longer part of the carrier's provider network under his or her existing Washington individual health benefit plan; and

(ii) His or her health care provider is part of another carrier's provider network; and

(iii) Application for a health benefit plan under that carrier's provider network individual coverage is made within ninety days of his or her provider leaving the previous carrier's provider network; then completion of the standard health questionnaire shall not be a condition of coverage.

(c) If a person is seeking an individual health benefit plan due to his or her having exhausted continuation coverage provided under 29 U.S.C. Sec. 1161 et seq., or is part of a small employer group of less than twenty employees, and meets the federal standards of eligibility for continuation coverage, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of exhaustion of continuation coverage. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such continuation coverage if application is made within ninety days prior to the date the continuation coverage would be exhausted and the effective date of the individual coverage applied for is the date the continuation coverage would be exhausted, or within ninety days thereafter.

(d) If a person is seeking an individual health benefit plan due to his or her receiving notice that his or her coverage under a conversion contract is discontinued, completion of the standard health questionnaire shall not be a condition of coverage if application for coverage is made within ninety days of discontinuation of eligibility under the conversion contract. A health carrier shall accept an application without a standard health questionnaire from a person currently covered by such conversion contract if application is made within ninety days prior to the date eligibility under the conversion contract would be discontinued and the effective date of the individual coverage applied for is the date eligibility under the conversion contract would be discontinued, or within ninety days thereafter.

(2) If, based upon the results of the standard health questionnaire, the person qualifies for coverage under the Washington state health insurance pool, the following shall apply:

(a) The carrier may decide not to accept the person's application for enrollment in its individual health benefit plan; and

(b) Within fifteen business days of receipt of a completed application, the carrier shall provide written notice of the decision not to accept the person's application for enrollment to both the person and the administrator of the Washington state health insurance pool. The notice to the person shall state that the person is eligible for health insurance provided by the Washington state health insurance pool, and shall include information about the Washington state health insurance pool and an application for such coverage. If the carrier does not provide or postmark such notice within fifteen business days, the application is deemed approved.

(3) If the person applying for an individual health benefit plan: (a) Does not qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire; (b) does qualify for coverage under the Washington state health insurance pool based upon the results of the standard health questionnaire and the carrier elects to accept the person for enrollment; or (c) is not required to complete the standard health questionnaire designated under this chapter under subsection (1)(a) or (b) of this section, the carrier shall accept the person for enrollment if he or she resides within the carrier's service area and provide or assure the provision of all covered services 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 commissioner may grant a temporary exemption from this subsection if, upon application by a health carrier, the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.

Sec. 4. RCW 48.43.035 and 2000 c 79 s 24 are each amended to read as follows:

For group health benefit plans, the following shall apply:

(1) All health carriers shall accept for enrollment any state resident within the group to whom the plan is offered and within the carrier's service area and provide or assure the provision of all covered services 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 health carrier the commissioner finds that the clinical, financial, or administrative capacity to serve existing enrollees will be impaired if a health carrier is required to continue enrollment of additional eligible individuals.

(2) Except as provided in subsection (5) of this section, all health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium. The carrier may consider the group's anniversary date as the renewal date for purposes of complying with the provisions of this section.

(3) The guarantee of continuity of coverage required in health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

(a) Nonpayment of premium;

(b) Violation of published policies of the carrier approved by the insurance commissioner;

(c) Covered persons entitled to become eligible for medicare benefits by reason of age who fail to apply for a medicare supplement plan or medicare cost, risk, or other plan offered by the carrier pursuant to federal laws and regulations;

(d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

(e) Covered persons committing fraudulent acts as to the carrier;

(f) Covered persons who materially breach the health plan; or

(g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

(4) The provisions of this section do not apply in the following cases:

(a) A carrier has zero enrollment on a product; ((or))

(b) A carrier replaces a product and the replacement product is provided to all covered persons within that class or line of business, includes all of the services covered under the replaced product, and does not significantly limit access to the kind of services covered under the replaced product. The health plan may also allow unrestricted conversion to a fully comparable product; ((or))

(c) No sooner than January 1, 2005, a carrier discontinues offering a particular type of health benefit plan offered for groups of up to two hundred if: (i) The carrier provides notice to each group of the discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each group provided coverage of this type the option to enroll, with regard to small employer groups, in any other small employer group plan, or with regard to groups of up to two hundred, in any other applicable group plan, currently being offered by the carrier in the applicable group market; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for this coverage;

(d) A carrier discontinues offering all health coverage in the small group market or for groups of up to two hundred, or both markets, in the state and discontinues coverage under all existing group health benefit plans in the applicable market involved if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all such coverage in the state and its intent to discontinue coverage under all such existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all such existing health benefit plans; and (ii) the carrier provides notice to each covered group of the intent to discontinue the existing health benefit plan at least one hundred eighty days prior to the date of discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any group health coverage in this state in the applicable group market involved for a five-year period beginning on the date of the discontinuation of the last health benefit plan not so renewed. This subsection (4) does not require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants when the carrier does not discontinue coverage of existing enrollees under that health benefit plan; or

(e) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the insurance commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded.

(5) The provisions of this section do not apply to health plans deemed by the insurance commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the insurance commissioner.

(6) Notwithstanding any other provision of this section, the guarantee of continuity of coverage applies to a group of one only if: (a) The carrier continues to offer any other small employer group plan in which the group of one was eligible to enroll on the day prior to the effective date of this section; and (b) the person continues to qualify as a group of one under the criteria in place on the day prior to the effective date of this section.

Sec. 5. RCW 48.43.038 and 2000 c 79 s 25 are each amended to read as follows:

(1) Except as provided in subsection (4) of this section, all individual health plans shall contain or incorporate by endorsement a guarantee of the continuity of coverage of the plan. For the purposes of this section, a plan is "renewed" when it is continued beyond the earliest date upon which, at the carrier's sole option, the plan could have been terminated for other than nonpayment of premium.

(2) The guarantee of continuity of coverage required in individual health plans shall not prevent a carrier from canceling or nonrenewing a health plan for:

(a) Nonpayment of premium;

(b) Violation of published policies of the carrier approved by the commissioner;

(d) Covered persons who fail to pay any deductible or copayment amount owed to the carrier and not the provider of health care services;

(e) Covered persons committing fraudulent acts as to the carrier;

(f) Covered persons who materially breach the health plan; or

(g) Change or implementation of federal or state laws that no longer permit the continued offering of such coverage.

(3) This section does not apply in the following cases:

(a) A carrier has zero enrollment on a product;

(b) A carrier is withdrawing from a service area or from a segment of its service area because the carrier has demonstrated to the commissioner that the carrier's clinical, financial, or administrative capacity to serve enrollees would be exceeded;

(c) No sooner than the first day of the month following the expiration of a one hundred eighty-day period beginning on March 23, 2000, a carrier discontinues offering a particular type of health benefit plan offered in the individual market, including conversion contracts, if: (i) The carrier provides notice to each covered individual provided coverage of this type of such discontinuation at least ninety days prior to the date of the discontinuation; (ii) the carrier offers to each individual provided coverage of this type the option, without being subject to the standard health questionnaire, to enroll in any other individual health benefit plan currently being offered by the carrier; and (iii) in exercising the option to discontinue coverage of this type and in offering the option of coverage under (c)(ii) of this subsection, the carrier acts uniformly without regard to any health status-related factor of enrolled individuals or individuals who may become eligible for such coverage; or

(d) A carrier discontinues offering all individual health coverage in the state and discontinues coverage under all existing individual health benefit plans if: (i) The carrier provides notice to the commissioner of its intent to discontinue offering all individual health coverage in the state and its intent to discontinue coverage under all existing health benefit plans at least one hundred eighty days prior to the date of the discontinuation of coverage under all existing health benefit plans; and (ii) the carrier provides notice to each covered individual of the intent to discontinue his or her existing health benefit plan at least one hundred eighty days prior to the date of such discontinuation. In the case of discontinuation under this subsection, the carrier may not issue any individual health coverage in this state for a five-year period beginning on the date of the discontinuation of the last health plan not so renewed. Nothing in this subsection (3) shall be construed to require a carrier to provide notice to the commissioner of its intent to discontinue offering a health benefit plan to new applicants where the carrier does not discontinue coverage of existing enrollees under that health benefit plan.

(4) The provisions of this section do not apply to health plans deemed by the commissioner to be unique or limited or have a short-term purpose, after a written request for such classification by the carrier and subsequent written approval by the commissioner.

Sec. 6. RCW 48.44.022 and 2000 c 79 s 30 are each amended to read as follows:

(1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

(a) The health care service contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

(i) Geographic area;

(ii) Family size;

(iii) Age;

(iv) Tenure discounts; and

(v) Wellness activities.

(b) The adjustment for age in (a)(iii) of this subsection may not use age brackets smaller than five-year increments which shall begin with age twenty and end with age sixty-five. Individuals under the age of twenty shall be treated as those age twenty.

(c) The health care service contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

(e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

(f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

(i) Changes to the family composition;

(ii) Changes to the health benefit plan requested by the individual; or

(iii) Changes in government requirements affecting the health benefit plan.

(g) For the purposes of this section, a health benefit plan that contains a restricted network provision shall not be considered similar coverage to a health benefit plan that does not contain such a provision, provided that the restrictions of benefits to network providers result in substantial differences in claims costs. This subsection does not restrict or enhance the portability of benefits as provided in RCW 48.43.015.

(h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

(2) Adjusted community rates established under this section shall pool the medical experience of all individuals purchasing coverage, and shall not be required to be pooled with the medical experience of health benefit plans offered to small employers under RCW 48.44.023.

(3) As used in this section ((and RCW 48.44.023)), "health benefit plan," "small employer," "adjusted community rates," and "wellness activities" mean the same as defined in RCW 48.43.005.

Sec. 7. RCW 48.44.023 and 1995 c 265 s 16 are each amended to read as follows:

(1)(a) A health care services contractor offering any health benefit plan to a small employer ((shall)) may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a contractor from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A contractor offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

(b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW 48.44.225, 48.44.240, 48.44.245, ((48.44.290, 48.44.300,)) 48.44.310, 48.44.320, ((48.44.325, 48.44.330, 48.44.335,)) 48.44.340, 48.44.344, 48.44.360, 48.44.400, 48.44.440, 48.44.450, and 48.44.460 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to)) for employers with not more than ((twenty-five)) fifty employees.

(2) Nothing in this section shall prohibit a health care service contractor from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

(3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

(a) The contractor shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

(i) Geographic area;

(ii) Family size;

(iii) Age; and

(iv) Wellness activities.

(c) The contractor shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection (3).

(e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

(f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

(i) Changes to the enrollment of the small employer;

(ii) Changes to the family composition of the employee;

(iii) Changes to the health benefit plan requested by the small employer; or

(iv) Changes in government requirements affecting the health benefit plan.

(g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

(i) Adjusted community rates established under this section shall pool the medical experience of all groups purchasing coverage including the development of allowable factors under (a) and (h) of this subsection. The development of these factors or benefit relativities must be based on the carrier's company-wide credible study or a large study developed by an actuarial consultant or other method accepted by the commissioner.

(5)(a) Except as provided in this subsection, requirements used by a contractor in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

(b) A contractor shall not require a minimum participation level greater than:

(i) One hundred percent of eligible employees working for groups with three or less employees; and

(ii) Seventy-five percent of eligible employees working for groups with more than three employees.

(d) A contractor may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

(6) A contractor must offer coverage to all eligible employees of a small employer and their dependents. A contractor may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A contractor may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.

(7) As used in this section, "health benefit plan," "small employer," and "wellness activities" mean the same as defined in RCW 48.43.005.

Sec. 8. RCW 48.46.064 and 2000 c 79 s 33 are each amended to read as follows:

(1) Premium rates for health benefit plans for individuals shall be subject to the following provisions:

(a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

(i) Geographic area;

(ii) Family size;

(iii) Age;

(iv) Tenure discounts; and

(v) Wellness activities.

(c) The health maintenance organization shall be permitted to develop separate rates for individuals age sixty-five or older for coverage for which medicare is the primary payer and coverage for which medicare is not the primary payer. Both rates shall be subject to the requirements of this subsection.

(e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs not to exceed twenty percent.

(f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

(i) Changes to the family composition;

(ii) Changes to the health benefit plan requested by the individual; or

(iii) Changes in government requirements affecting the health benefit plan.

(h) A tenure discount for continuous enrollment in the health plan of two years or more may be offered, not to exceed ten percent.

(3) As used in this section ((and RCW 48.46.066)), "health benefit plan," "adjusted community rate," "small employer," and "wellness activities" mean the same as defined in RCW 48.43.005.

Sec. 9. RCW 48.46.066 and 1995 c 265 s 18 are each amended to read as follows:

(1)(a) A health maintenance organization offering any health benefit plan to a small employer ((shall)) may offer and actively market to the small employer a health benefit plan ((providing benefits identical to the schedule of covered health services that are required to be delivered to an individual enrolled in the basic health plan)) featuring a limited schedule of covered health care services. Nothing in this subsection shall preclude a health maintenance organization from offering, or a small employer from purchasing, other health benefit plans that may have more ((or less)) comprehensive benefits than ((the basic health plan, provided such plans are in accordance with this chapter)) those included in the product offered under this subsection. A health maintenance organization offering a health benefit plan ((that does not include benefits in the basic health plan)) under this subsection shall clearly disclose ((these differences)) all the covered benefits to the small employer in a brochure ((approved by)) filed with the commissioner.

(b) A health benefit plan offered under this subsection shall provide coverage for hospital expenses and services rendered by a physician licensed under chapter 18.57 or 18.71 RCW but is not subject to the requirements of RCW ((48.46.275, 48.46.280, 48.46.285,)) 48.46.290, 48.46.350, 48.46.355, 48.46.375, 48.46.440, 48.46.480, 48.46.510, 48.46.520, and 48.46.530 ((if: (i) The health benefit plan is the mandatory offering under (a) of this subsection that provides benefits identical to the basic health plan, to the extent these requirements differ from the basic health plan; or (ii) the health benefit plan is offered to)) for employers with not more than ((twenty-five)) fifty employees.

(2) Nothing in this section shall prohibit a health maintenance organization from offering, or a purchaser from seeking, health benefit plans with benefits in excess of the ((basic health plan services)) health benefit plan offered under subsection (1) of this section. All forms, policies, and contracts shall be submitted for approval to the commissioner, and the rates of any plan offered under this section shall be reasonable in relation to the benefits thereto.

(3) Premium rates for health benefit plans for small employers as defined in this section shall be subject to the following provisions:

(a) The health maintenance organization shall develop its rates based on an adjusted community rate and may only vary the adjusted community rate for:

(i) Geographic area;

(ii) Family size;

(iii) Age; and

(iv) Wellness activities.

(e) A discount for wellness activities shall be permitted to reflect actuarially justified differences in utilization or cost attributed to such programs ((not to exceed twenty percent)).

(f) The rate charged for a health benefit plan offered under this section may not be adjusted more frequently than annually except that the premium may be changed to reflect:

(i) Changes to the enrollment of the small employer;

(ii) Changes to the family composition of the employee;

(iii) Changes to the health benefit plan requested by the small employer; or

(iv) Changes in government requirements affecting the health benefit plan.

(g) Rating factors shall produce premiums for identical groups that differ only by the amounts attributable to plan design, with the exception of discounts for health improvement programs.

(5)(a) Except as provided in this subsection, requirements used by a health maintenance organization in determining whether to provide coverage to a small employer shall be applied uniformly among all small employers applying for coverage or receiving coverage from the carrier.

(b) A health maintenance organization shall not require a minimum participation level greater than:

(i) One hundred percent of eligible employees working for groups with three or less employees; and

(ii) Seventy-five percent of eligible employees working for groups with more than three employees.

(d) A health maintenance organization may not increase any requirement for minimum employee participation or modify any requirement for minimum employer contribution applicable to a small employer at any time after the small employer has been accepted for coverage.

(6) A health maintenance organization must offer coverage to all eligible employees of a small employer and their dependents. A health maintenance organization may not offer coverage to only certain individuals or dependents in a small employer group or to only part of the group. A health maintenance organization may not modify a health plan with respect to a small employer or any eligible employee or dependent, through riders, endorsements or otherwise, to restrict or exclude coverage or benefits for specific diseases, medical conditions, or services otherwise covered by the plan.

(7) As used in this section, "health benefit plan," "small employer," and "wellness activities" mean the same as defined in RCW 48.43.005.

NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

(1) RCW 48.21.260 (Conversion policy to be offered--Exceptions, conditions) and 1984 c 190 s 3;

(2) RCW 48.21.270 (Conversion policy--Restrictions and requirements) and 1984 c 190 s 4;

(3) RCW 48.44.370 (Conversion contract to be offered--Exceptions, conditions) and 1984 c 190 s 6;

(4) RCW 48.44.380 (Conversion contract--Restrictions and requirements) and 1984 c 190 s 7;

(5) RCW 48.46.450 (Conversion agreement to be offered--Exceptions, conditions) and 1984 c 190 s 9; and

(6) RCW 48.46.460 (Conversion agreement--Restrictions and requirements) and 1984 c 190 s 10.

NEW SECTION. Sec. 11. Sections 1 through 9 of this act apply to all small group health benefit plans issued or renewed on or after the effective date of this section."

Correct the title.

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

The amendment was adopted. 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, Bailey, Kessler, Benson and Campbell spoke in favor of passage of the bill.

Representative Schual-Berke, Anderson and Alexander spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 2460.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2460 and the bill passed the House by the following vote: Yeas - 63, Nays - 33, Absent - 0, Excused - 2.

Voting yea: Representatives Armstrong, Bailey, Benson, Blake, Bush, Cairnes, Campbell, Carrell, Chase, Clibborn, Cody, Cooper, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hudgins, Hunt, Hunter, Kagi, Kenney, Kessler, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, Moeller, Morrell, Morris, Murray, Nixon, O'Brien, Ormsby, Pettigrew, Priest, Quall, Rockefeller, Rodne, Romero, Ruderman, Santos, Schoesler, Sehlin, D. Simpson, G. Simpson, Sommers, Sullivan, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 63.

Voting nay: Representatives Ahern, Alexander, Anderson, Boldt, Buck, Chandler, Clements, Condotta, Conway, Cox, Crouse, Darneille, DeBolt, Delvin, Ericksen, Hinkle, Holmquist, Jarrett, Kirby, Kristiansen, McMahan, McMorris, Mielke, Miloscia, Newhouse, Orcutt, Pearson, Roach, Schindler, Schual-Berke, Shabro, Sump and Woods - 33.

Excused: Representatives Edwards and Skinner - 2.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2460, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2660, By Representatives G. Simpson, Carrell, McMahan, Lovick, Kenney and Wallace; by request of Office of the Lieutenant Governor

Revising provisions involving alcohol-related offenses.

The bill was read the second time. There being no objection, Substitute House Bill No. 2660 was substituted for House Bill No. 2660 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 2660 was read the second time.

With the consent of the House, amendment (940) was withdrawn.

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

Representatives G. Simpson and Carrell spoke in favor of passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 2660.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2660 and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Excused: Representatives Edwards and Skinner - 2.

SUBSTITUTE HOUSE BILL NO. 2660, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2779, By Representatives Clibborn, Lantz, Pettigrew, Darneille and Rockefeller

Limiting liability for information provided by former or current employers to prospective employers.

The bill was read the second time. There being no objection, Substitute House Bill No. 2779 was substituted for House Bill No. 2779 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 2779 was read the second time.

With the consent of the House, amendment (936) was withdrawn.

Representative Clibborn moved the adoption of amendment (1031):

On page 2, line 6, after "of the" insert "substance of any"

On page 2, line 11, after "RCW." insert "Failure to maintain a written record of the disclosure waives the immunity provided under subsection (1) of this section, and civil liability for such disclosure shall be evaluated under common law standards without regard to this act."

On page 2, line 16, after "employer's" insert "lawful"

Representative Clibborn spoke in favor of the adoption of the amendment.

Representatives Carrell and Anderson spoke against the adoption of the amendment.

Division was demanded. The Speaker (Representative Lovick presiding) divided the House. The result was 51 - YEAS; 45 -NAYS.

The amendment was adopted. 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.

Representative Clibborn spoke in favor of passage of the bill.

Representative Carrell and Chandler spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Substitute House Bill No. 2779.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Substitute House Bill No. 2779 and the bill passed the House by the following vote: Yeas - 51, Nays - 45, Absent - 0, Excused - 2.

Voting yea: Representatives Blake, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Grant, Haigh, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Ormsby, Quall, Rockefeller, Romero, Ruderman, Santos, Schual-Berke, D. Simpson, G. Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood, and Mr. Speaker - 51.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hankins, Hinkle, Holmquist, Kristiansen, Mastin, McDonald, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Pettigrew, Priest, Roach, Rodne, Schindler, Schoesler, Sehlin, Shabro, Sump, Talcott, Tom and Woods - 45.

Excused: Representatives Edwards and Skinner - 2.

ENGROSSED SUBSTITUTE HOUSE BILL NO. 2779, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 1357, By Representatives Quall, Cairnes, Miloscia, Orcutt, Gombosky, Ahern, Grant, Roach, Hatfield, Kessler, O'Brien, Morris, Linville, Haigh, Lovick, Rockefeller, Lantz, Wood, Eickmeyer, G. Simpson, Boldt and Pflug

Modifying the taxation of physical fitness services.

The bill was read the second time. There being no objection, Substitute House Bill No. 1357 was substituted for House Bill No. 1357 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 1357 was read the second time.

Representative Dickerson moved the adoption of amendment (1028):

On page 1, strike all material after the enacting clause and insert the following:

"NEW SECTION. Sec. 2. The fiscal committees of the house of representatives and the senate, in consultation with the department of revenue, shall study the taxation of physical fitness services in Washington state. The study shall address the impact of state tax laws on the demand for physical fitness services and shall evaluate differences in demand for services between those offered by for-profit and those offered by nonprofit businesses. By December 1, 2005, the committees shall submit a report to the legislature and to the governor on the findings."

Correct the title

Representatives Dickerson, Kagi, Moeller, Darneille, Chase and Dickerson (again) spoke in favor of the adoption of the amendment.

Representative Cairnes, Sehlin, Pearson and Clements spoke against the adoption of the amendment.

The amendment was not adopted.

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

Representatives Quall and Cairnes spoke in favor of passage of the bill.

Representatives Sommers and Dunshee spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 1357.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 1357 and the bill passed the House by the following vote: Yeas - 61, Nays - 35, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Fromhold, Grant, Hankins, Hatfield, Hinkle, Holmquist, Jarrett, Kessler, Kristiansen, Linville, Lovick, Mastin, McCoy, McDonald, McMahan, McMorris, Mielke, Miloscia, Morris, Newhouse, Nixon, O'Brien, Orcutt, Pearson, Priest, Quall, Roach, Rockefeller, Rodne, Ruderman, Schindler, Schoesler, Sehlin, Shabro, Sump, Talcott, Tom, Wallace, Woods and Mr. Speaker - 61.

Voting nay: Representatives Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Haigh, Hudgins, Hunt, Hunter, Kagi, Kenney, Kirby, Lantz, McDermott, McIntire, Moeller, Morrell, Murray, Ormsby, Pettigrew, Romero, Santos, Schual-Berke, D. Simpson, G. Simpson, Sommers, Sullivan, Upthegrove, Veloria and Wood - 35.

Excused: Representatives Edwards and Skinner - 2.

SUBSTITUTE HOUSE BILL NO. 1357, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2308, By Representatives Schoesler and Cox

Requiring the department of ecology to develop specific criteria for the types of solid wastes that are allowed to be received by inert waste landfills.

The bill was read the second time. There being no objection, Substitute House Bill No. 2308 was substituted for House Bill No. 2308 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 2308 was read the second time.

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

Representative Schoesler spoke in favor of passage of the bill.

Representative Cooper spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 2308.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 2308 and the bill passed the House by the following vote: Yeas - 80, Nays - 16, Absent - 0, Excused - 2.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Clibborn, Condotta, Conway, Cox, Crouse, DeBolt, Delvin, Dickerson, Eickmeyer, Ericksen, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Jarrett, Kagi, Kenney, Kessler, Kirby, Kristiansen, Lantz, Linville, Lovick, Mastin, McCoy, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Sehlin, Shabro, D. Simpson, Sommers, Sullivan, Sump, Talcott, Tom, Veloria, Wallace, Wood, Woods and Mr. Speaker - 80.

Voting nay: Representatives Chase, Cody, Cooper, Darneille, Dunshee, Flannigan, Hudgins, Hunt, Hunter, McDermott, Morrell, Morris, Murray, Schual-Berke, G. Simpson and Upthegrove - 16.

Excused: Representatives Edwards and Skinner - 2.

SUBSTITUTE HOUSE BILL NO. 2308, having received the necessary constitutional majority, was declared passed.

The House resumed consideration of HOUSE BILL NO. 2968 on second reading.

Representatives McIntire and Cairnes spoke in favor of adoption of amendment (814).

The amendment was adopted. 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 Linville and Buck spoke in favor of passage of the bill.

COLLOQUY

Representative Linville: "Did the Legislature intend for the Department of Revenue to collect B&O tax on grants used to fund salmon recovery projects?"

Representative Buck: "The Legislature intended to maximize the expenditure of salmon recovery dollars by using volunteer labor to implement habitat projects and to forestall the endangered species listing of Washington. The words, and I quote, 'regional groups shall be operated on strictly non-profit basis and shall to seek to maximize the efforts of volunteer and private donations to improve the salmon resource for all the citizens of Washington State' clearly shows we intended the money to be spent on projects and not taxes."

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed House Bill No. 2968.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed House Bill No. 2968 and the bill passed the House by the following vote: Yeas - 96, Nays - 0, Absent - 0, Excused - 2.

Excused: Representatives Edwards and Skinner - 2.

ENGROSSED HOUSE BILL NO. 2968, having received the necessary constitutional majority, was declared passed.

The Speaker assumed the chair.

HOUSE BILL NO. 3141, By Representative Morris

Establishing a policy to mitigate carbon dioxide emissions.

The bill was read the second time. There being no objection, Substitute House Bill No. 3141 was substituted for House Bill No. 3141 and the substitute bill was placed on the second reading calendar.

SUBSTITUTE HOUSE BILL NO. 3141 was read the second time.

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

Representatives Morris, Crouse, Linville and Wallace spoke in favor of passage of the bill.

Representatives Delvin and McMahan spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Substitute House Bill No. 3141.

ROLL CALL

The Clerk called the roll on the final passage of Substitute House Bill No. 3141 and the bill passed the House by the following vote: Yeas - 69, Nays - 27, Absent - 0, Excused - 2.

Voting yea: Representatives Alexander, Anderson, Bailey, Benson, Blake, Bush, Campbell, Chase, Clibborn, Cody, Conway, Cooper, Crouse, Darneille, DeBolt, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hatfield, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, Mastin, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Ormsby, Pettigrew, Priest, Quall, Rockefeller, Rodne, Romero, Ruderman, Santos, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Sommers, Sullivan, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 69.

Voting nay: Representatives Ahern, Armstrong, Boldt, Buck, Cairnes, Carrell, Chandler, Clements, Condotta, Cox, Delvin, Hankins, Hinkle, Holmquist, Kristiansen, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Roach, Schindler, Schoesler, Sump and Talcott - 27.

Excused: Representatives Edwards and Skinner - 2.

SUBSTITUTE HOUSE BILL NO. 3141, having received the necessary constitutional majority, was declared passed.

HOUSE BILL NO. 2955, By Representatives Hunter, Jarrett, Haigh, Cox, Tom, Schual-Berke, Kagi, Quall, Ruderman, Hunt, Santos, Armstrong, Nixon, O'Brien, Rockefeller, Edwards, Linville, Wallace, Conway and Morrell

Creating a joint task force on K-12 finance.

The bill was read the second time. There being no objection, Second Substitute House Bill No. 2955 was substituted for House Bill No. 2955 and the second substitute bill was placed on the second reading calendar.

SECOND SUBSTITUTE HOUSE BILL NO. 2955 was read the second time.

With the consent of the House, amendments (1015), (1037) and (1037) were withdrawn.

Representative Haigh moved the adoption of amendment (928):

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The legislature finds that more than a quarter of a century has passed since the current school finance system was first created, and that the challenges facing our schools and students have grown and changed dramatically during that time. The legislature intends to examine the school finance system to determine whether it is appropriately linked to the demands of education reform and to the goal of providing all children in the state the opportunity to meet standards.

NEW SECTION. Sec. 2. (1) The joint task force on K-12 finance is created to study the common school finance system and to develop alternative funding models for that finance system. The alternatives shall include one or more models that can be fully funded within the existing total federal, state, and local capital and operating expenditures for public schools and may include alternatives that require new or additional funding.

(2) The task force shall, at a minimum:

(a) Consider the constitutional and legal requirements underlying the current finance system;

(b) Compare Washington's common school funding system with those in other states that are beginning to link finance systems with education reform and expected levels of student achievement;

(c) Design alternative common school finance systems for Washington that reflect principles that include but need not be limited to the following:

(i) The finance system should be aligned with the policy expectations and goals established under education reform;

(ii) Funds should be distributed equitably so that all children have the opportunity to meet the state's academic standards and become prepared for postsecondary education, including career and technical education;

(iii) Staffing should be recognized as a key component of school district costs, including the number of and compensation for certificated instructional staff, certificated administrative staff, and classified staff;

(iv) Stable and predictable basic education funding should be provided by the state to school districts;

(v) Local flexibility and choice in program delivery at the district and school levels should be enhanced; and

(vi) Accountability for taxpayers that focuses on levels of student achievement should be provided;

(d) Design one or more alternative compensation models that attract and retain high performing teachers in all Washington schools and in all academic subject areas and, in addition, may do one or more of the following:

(i) Reward teachers for improving their skills and knowledge in a manner that translates into improved student learning; and

(ii) Recognize regional cost-of-living differences as well as recruitment challenges facing rural schools and schools with large numbers of educationally disadvantaged students; and

(e) Review the role of noncertificated staff and the appropriate types of compensation for these staff.

(3) The task force shall consist of the following members:

(a) Four members from the house of representatives, two from each major caucus, appointed by the speaker of the house of representatives;

(b) Four members from the senate, two from each major caucus appointed by the president of the senate;

(d) The governor or the governor's designee.

(4) The task force shall create an advisory committee that includes but need not be limited to: Educators, principals, administrators, school directors, parents, educational service districts, organizations representing employers and employees, the Gates foundation, and the University of Washington center for reinventing education.

(5) The chair shall be appointed by the governor.

(6) The task force shall select the persons or entities to conduct various components of the study and shall approve the expenditure of funds.

(7) Appointments to the task force shall be completed within thirty days of the effective date of this section.

(8) The task force shall receive staff and logistical support from the office of financial management, the office of the superintendent of public instruction, the office of program research of the house of representatives, and senate committee services.

(9) Legislative members of the task force shall be reimbursed for travel expenses as provided in RCW 44.04.120. Other members of the task force and the members of the advisory committee may be reimbursed for travel expenses by the agencies or organizations that appointed or nominated them.

(10) The task force shall report findings and recommendations to the legislature by October 1, 2006.

NEW SECTION. Sec. 3. This act expires June 30, 2007."

Representatives Haigh, Fromhold and Haigh (again) spoke in favor of the adoption of the amendment.

Representatives Anderson, Cox and Anderson (again) 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 (928) to Second Substitute House Bill No. 2955.

ROLL CALL

The Clerk called the roll on the adoption of amendment (928) to Second Substitute House Bill No. 2955, and the amendment was adopted by the following vote: Yeas - 52, Nays - 43, Absent - 0, Excused - 3.

Voting yea: Representatives Blake, Chase, Clibborn, Cody, Conway, Cooper, Darneille, Dickerson, Dunshee, Eickmeyer, Flannigan, Fromhold, Grant, Haigh, Hatfield, Hudgins, Hunt, Kagi, Kenney, Kessler, Kirby, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, Miloscia, Moeller, Morrell, Morris, Murray, O'Brien, Ormsby, Pettigrew, Quall, Rockefeller, Romero, Ruderman, Santos, Schindler, Schual-Berke, D. Simpson, G. Simpson, Sommers, Sullivan, Upthegrove, Veloria, Wallace, Wood and Mr. Speaker - 52.

Voting nay: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Clements, Condotta, Cox, Crouse, DeBolt, Delvin, Ericksen, Hankins, Hinkle, Holmquist, Hunter, Jarrett, Kristiansen, McMahan, McMorris, Mielke, Newhouse, Nixon, Orcutt, Pearson, Priest, Roach, Rodne, Schoesler, Sehlin, Shabro, Sump, Talcott, Tom and Woods - 43.

Excused: Representatives Edwards, Mastin and Skinner - 3.

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 Hunter, Quall, Haigh, Armstrong, Nixon, Rockefeller and Jarrett spoke in favor of passage of the bill.

Representatives Anderson and Clements spoke against the passage of the bill.

The Speaker (Representative Lovick presiding) stated the question before the House to be the final passage of Engrossed Second Substitute House Bill No. 2955.

ROLL CALL

The Clerk called the roll on the final passage of Engrossed Second Substitute House Bill No. 2955 and the bill passed the House by the following vote: Yeas - 94, Nays - 0, Absent - 1, Excused - 3.

Voting yea: Representatives Ahern, Alexander, Anderson, Armstrong, Bailey, Benson, Blake, Boldt, Buck, Bush, Cairnes, Campbell, Carrell, Chandler, Chase, Clements, Clibborn, Cody, Condotta, Conway, Cooper, Cox, Crouse, Darneille, DeBolt, Delvin, Dickerson, Dunshee, Eickmeyer, Ericksen, Flannigan, Fromhold, Grant, Haigh, Hankins, Hatfield, Hinkle, Holmquist, Hudgins, Hunt, Hunter, Jarrett, Kagi, Kenney, Kessler, Kristiansen, Lantz, Linville, Lovick, McCoy, McDermott, McDonald, McIntire, McMahan, McMorris, Mielke, Miloscia, Moeller, Morrell, Morris, Murray, Newhouse, Nixon, O'Brien, Orcutt, Ormsby, Pearson, Pettigrew, Priest, Quall, Roach, Rockefeller, Rodne, Romero, Ruderman, Santos, Schindler, Schoesler, Schual-Berke, Sehlin, Shabro, D. Simpson, G. Simpson, Sommers, Sullivan, Sump, Talcott, Tom, Upthegrove, Veloria, Wallace, Wood, Woods and Mr. Speaker - 94.

Absent: Representative Kirby - 1.

Excused: Representatives Edwards, Mastin and Skinner - 3.

ENGROSSED SECOND SUBSTITUTE HOUSE BILL NO. 2955, having received the necessary constitutional majority, was declared passed.

February 17, 2004

Mr. Speaker:

The Senate has passed:

ENGROSSED SECOND SUBSTITUTE SENATE BILL NO. 5216,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5665,

SUBSTITUTE SENATE BILL NO. 6113,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6136,

SUBSTITUTE SENATE BILL NO. 6208,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6256,

SENATE BILL NO. 6357,

SUBSTITUTE SENATE BILL NO. 6437,

SUBSTITUTE SENATE BILL NO. 6527,

ENGROSSED SUBSTITUTE SENATE BILL NO. 6554,

ENGROSSED SENATE JOINT MEMORIAL NO. 8050,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

February 17, 2004

Mr. Speaker:

The Senate has passed:

SUBSTITUTE SENATE BILL NO. 5408,

ENGROSSED SUBSTITUTE SENATE BILL NO. 5428,

ENGROSSED SENATE BILL NO. 6158,

ENGROSSED SENATE BILL NO. 6317,

and the same are herewith transmitted.

Milt H. Doumit, Secretary

There being no objection, the House reverted to the fourth order of business.

INTRODUCTION & FIRST READING

HB 3202 by Representatives Linville and Sommers

AN ACT Relating to fees pertaining to water rights; and amending RCW 90.03.470.

Referred to Committee on Appropriations.

HB 3203 by Representatives McDermott and Hunt

AN ACT Relating to a semiclosed primary; amending RCW 29A.04.007, 29A.04.085, 29A.04.215, 29A.04.310, 29A.04.320, 29A.08.110, 29A.08.125, 29A.08.135, 29A.08.140, 29A.08.145, 29A.08.210, 29A.08.340, 29A.08.350, 29A.08.360, 29A.08.410, 29A.08.430, 29A.08.645, 29A.08.710, 29A.12.100, 29A.20.020, 29A.20.120, 29A.20.140, 29A.20.150, 29A.20.160, 29A.20.200, 29A.24.030, 29A.24.100, 29A.24.130, 29A.24.210, 29A.24.310, 29A.28.040, 29A.28.060, 29A.28.070, 29A.32.030, 29A.32.240, 29A.36.010, 29A.36.100, 29A.36.110, 29A.36.120, 29A.36.130, 29A.36.150, 29A.36.160, 29A.36.190, 29A.40.060, 29A.40.090, 29A.44.200, 29A.44.220, 29A.44.230, 29A.52.230, 29A.52.310, 29A.52.320, 29A.56.020, 29A.56.020, 29A.56.030, 29A.56.040, 29A.56.050, 29A.56.060, 29A.60.020, 29A.80.040, 29A.80.050, 29A.80.060, and 42.17.020; adding new sections to chapter 29A.04 RCW; adding a new section to chapter 29A.08 RCW; adding a new section to chapter 29A.32 RCW; adding a new section to chapter 29A.36 RCW; adding new sections to chapter 29A.52 RCW; repealing RCW 29A.04.903, 29A.36.140, 29A.52.110, 29A.52.120, 29A.52.130, and 29A.56.010; providing an effective date; providing an expiration date; and declaring an emergency.

Referred to Committee on State Government.

SSB 5436 by Senate Committee on Education (originally sponsored by Senators Kohl-Welles, Rasmussen, Jacobsen, Winsley, Thibaudeau, McAuliffe, Prentice and Kline)

AN ACT Relating to the sales of competitive foods and beverages sold and served on public school campuses; creating new sections; and declaring an emergency.

Referred to Committee on Education.

SSB 5732 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Deccio, Rasmussen, Brandland and Winsley)

AN ACT Relating to in-home long-term care services liability; and amending RCW 74.39A.095.

Referred to Committee on Judiciary.

SB 6143 by Senators Kastama, Winsley, Oke, Franklin, Rasmussen and Schmidt

AN ACT Relating to determining eligibility for veteran's regular or special license plates; and amending RCW 73.04.110.

Referred to Committee on Transportation.

SSB 6166 by Senate Committee on Financial Services, Insurance & Housing (originally sponsored by Senator Benton)

AN ACT Relating to funding group life insurance; and amending RCW 48.24.020 and 48.24.030.

Referred to Committee on Financial Institutions & Insurance.

SSB 6178 by Senate Committee on Highways & Transportation (originally sponsored by Senators Shin, Rasmussen, Franklin, Jacobsen, Keiser, Benton, Regala, Honeyford, Mulliken, Fairley, Swecker, Finkbeiner, McCaslin, Doumit, Stevens, Morton, Hargrove, Hewitt, Deccio, Fraser, Esser, Kastama, Prentice, B. Sheldon, Thibaudeau, T. Sheldon, Sheahan, Spanel, Roach, Oke, Berkey and Schmidt)

AN ACT Relating to traffic control signal preemption devices; amending RCW 46.37.190 and 46.63.020; reenacting and amending RCW 9.94A.515; adding a new section to chapter 46.04 RCW; adding a new section to chapter 46.61 RCW; prescribing penalties; and providing an effective date.

Referred to Committee on Transportation.

SSB 6196 by Senate Committee on Land Use & Planning (originally sponsored by Senators Benton, T. Sheldon and Mulliken)

AN ACT Relating to restoring the American dream by allowing single-family residential development outside urban growth areas in counties where the first-time home buyers housing affordability index shows that housing is not affordable; adding new sections to chapter 36.70A RCW; and creating a new section.

Referred to Committee on Local Government.

SSB 6211 by Senate Committee on Education (originally sponsored by Senators Carlson, Kohl-Welles, Esser, Swecker, Schmidt, Finkbeiner, Brandland, Pflug, Roach, Rasmussen and Murray)

AN ACT Relating to school district levy base calculations; and amending RCW 84.52.0531 and 28A.500.020.

Referred to Committee on Education.

SSB 6225 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Deccio, Keiser, Parlette, Winsley and Rasmussen)

AN ACT Relating to boarding homes; amending RCW 18.20.020, 18.20.160, 18.20.290, 74.39A.009, 74.39A.020, and 70.129.110; adding new sections to chapter 18.20 RCW; adding a new section to chapter 42.17 RCW; providing an effective date; and declaring an emergency.

Referred to Committee on Health Care.

SB 6247 by Senators Winsley, Fraser, Regala, Carlson, Keiser and McAuliffe; by request of Select Committee on Pension Policy

AN ACT Relating to vesting after five years of service in the defined benefit portion of the public employees' retirement system, the school employees' retirement system, and the teachers' retirement system plan 3; and amending RCW 41.32.875, 41.35.680, and 41.40.820.

Referred to Committee on Appropriations.

SSB 6285 by Senate Committee on Parks, Fish & Wildlife (originally sponsored by Senators Oke, Doumit, Roach, Swecker, Stevens, Morton, Winsley, T. Sheldon, Sheahan, Jacobsen, Rasmussen, Haugen, Hargrove, Berkey, Hale, Honeyford, Mulliken and Parlette)

AN ACT Relating to trapping; amending RCW 77.08.010, 77.15.194, 77.15.194, 77.65.450, 77.65.460, 77.32.545, 77.15.198, 77.15.198, 77.36.030, and 77.15.190; adding new sections to chapter 77.15 RCW; creating a new section; repealing RCW 77.15.192; prescribing penalties; providing an effective date; providing an expiration date; and declaring an emergency.

Referred to Committee on Fisheries, Ecology & Parks.

SB 6326 by Senators Esser, McCaslin, Oke, Roach, Eide, Kline and Rasmussen

AN ACT Relating to unlawful bus conduct; and amending RCW 9.91.025 and 46.04.355.

Referred to Committee on Transportation.

SSB 6329 by Senate Committee on Parks, Fish & Wildlife (originally sponsored by Senator Oke)

AN ACT Relating to extending the date for ballast water discharge implementation; amending RCW 77.120.030; amending 2002 c 282 s 1 (uncodified); and providing an expiration date.

Referred to Committee on Fisheries, Ecology & Parks.

SSB 6331 by Senate Committee on Health & Long-Term Care (originally sponsored by Senators Brandland, Parlette and Mulliken)

AN ACT Relating to mandated reporters in boarding homes and nursing homes; amending RCW 74.34.020, 74.34.035, and 9A.42.010; and declaring an emergency.

Referred to Committee on Health Care.

SB 6337 by Senators Regala, Parlette, Winsley, Stevens, Hargrove, Oke and Kohl-Welles; by request of Washington Council for Prevention of Child Abuse and Neglect

AN ACT Relating to the fee for birth certificates suitable for display; and amending RCW 70.58.085.

Referred to Committee on Appropriations.

SB 6338 by Senators Johnson and Kline

AN ACT Relating to stolen merchandise pallets; and amending RCW 9A.56.020 and 9A.56.140.

Referred to Committee on Criminal Justice & Corrections.

SB 6339 by Senators Swecker and Rasmussen

AN ACT Relating to seed-related business practices; and amending RCW 20.01.010, 20.01.210, and 20.01.465.

Referred to Committee on Agriculture & Natural Resources.

ESSB 6352 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Stevens, Hargrove, Esser, Schmidt, Poulsen, Berkey, McAuliffe and Kohl-Welles)

AN ACT Relating to selection of telephone calling systems for offenders in state correctional facilities; amending RCW 9.73.095; and creating a new section.

Referred to Committee on Criminal Justice & Corrections.

SB 6372 by Senators Oke, Doumit, Sheahan, B. Sheldon, McAuliffe, Regala, Spanel, Haugen, Roach, Fraser and Shin

AN ACT Relating to the Washington state parks centennial; adding a new chapter to Title 79A RCW; providing an expiration date; and declaring an emergency.

Referred to Committee on Fisheries, Ecology & Parks.

SSB 6389 by Senate Committee on Judiciary (originally sponsored by Senators Brandland, Haugen, Esser, Rasmussen, Kline, Murray and Kohl-Welles)

AN ACT Relating to weapons in commercial service airports; and amending RCW 9.41.300.

Referred to Committee on Judiciary.

SB 6465 by Senators Swecker and Rasmussen

AN ACT Relating to extending the expiration date of the dairy inspection program assessment; amending RCW 15.36.551; and providing an expiration date.

Referred to Committee on Agriculture & Natural Resources.

SB 6493 by Senators Horn, Kastama, Roach, Haugen and Esser

AN ACT Relating to costs of elections; amending RCW 29A.04.410; and providing an effective date.

Referred to Committee on State Government.

SB 6518 by Senator McCaslin

AN ACT Relating to the general election ballot for the office of judge of the district court; amending RCW 29A.36.170; and providing an effective date.

Referred to Committee on State Government.

SSB 6534 by Senate Committee on Land Use & Planning (originally sponsored by Senators Hargrove and Mulliken)

AN ACT Relating to the siting and designating processes of industrial land banks; and amending RCW 36.70A.367.

Referred to Committee on Local Government.

ESSB 6559 by Senate Committee on Children & Family Services & Corrections (originally sponsored by Senators Stevens and Hargrove)

AN ACT Relating to provision of cash grants, case staffing, and work requirements to families eligible for temporary assistance for needy families; amending RCW 74.08A.260; and creating a new section.

Referred to Committee on Children & Family Services.

SSB 6560 by Senate Committee on Parks, Fish & Wildlife (originally sponsored by Senators Oke, Fraser, Swecker, Kline, Kohl-Welles, Jacobsen, Thibaudeau, Fairley and Winsley)

AN ACT Relating to animal cruelty; amending RCW 16.52.205; prescribing penalties; and declaring an emergency.

Referred to Committee on Judiciary.

SB 6561 by Senators Carlson, McAuliffe and Kohl-Welles

AN ACT Relating to strengthening linkages between K-12 and higher education systems; creating a new section; and providing an expiration date.

Referred to Committee on Education.

SSB 6587 by Senate Committee on Land Use & Planning (originally sponsored by Senators Stevens and McCaslin)

AN ACT Relating to imposing fees to mitigate adverse environmental impacts; and adding new sections to chapter 43.21C RCW.

Referred to Committee on Local Government.

SSB 6592 by Senate Committee on Land Use & Planning (originally sponsored by Senators Morton, Hargrove, Mulliken, Rasmussen, Swecker, Horn, Haugen, T. Sheldon, McCaslin, Sheahan and Parlette)

AN ACT Relating to distinguishing growth management update responsibilities between slower and faster growing cities and counties; and amending RCW 36.70A.130.

Referred to Committee on Local Government.

SSB 6600 by Senate Committee on Judiciary (originally sponsored by Senators Brandland, T. Sheldon, Hale, Stevens and Murray)

AN ACT Relating to construction liability; and amending RCW 4.16.300.

Referred to Committee on Judiciary.

SB 6663 by Senators Hewitt, Rasmussen, Honeyford, Prentice, Kastama, Doumit and Sheahan

AN ACT Relating to promoters duties with respect to vendor tax registration; and amending RCW 82.32.033.

Referred to Committee on Finance.

SB 6679 by Senators Oke, B. Sheldon, T. Sheldon, Hargrove, Jacobsen and Shin

AN ACT Relating to use of bond proceeds in public-private initiative projects; and amending RCW 47.46.130.

Referred to Committee on Transportation.

SB 6700 by Senators Jacobsen, Horn, Haugen and Shin

AN ACT Relating to technical corrections to the requirements of regional transportation investment district ballot measures; and amending RCW 36.120.070.

Referred to Committee on Transportation.

ESB 6737 by Senators Hewitt and Honeyford

AN ACT Relating to distribution of liquor; and amending RCW 66.08.010, 66.08.050, and 66.28.180.

Referred to Committee on Commerce & Labor.

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

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

There being no objection, the House adjourned until 9:55 a.m., February 18, 2004, the 37th Day of the Regular Session.

FRANK CHOPP, Speaker RICHARD NAFZIGER, Chief Clerk